U. S. Securities and Exchange Commission
                     Washington, D. C.  20549

                           FORM 10-KSB

[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 ____________

     Commission File No. 000-30239


                       UNICO, INCORPORATED
            ------------------------------------------
          (Name of Small Business Issuer in its Charter)

          ARIZONA                                86-0205130
-------------------------------            --------------------------
(State or Other Jurisdiction of            (I.R.S. Employer I.D. No.)
 Incorporation or Organization)

                      6475 Grandview Avenue
                           P.O. Box 777
                    Magalia, California 95954
             ----------------------------------------
             (Address of Principal Executive Offices)

            Issuer's Telephone Number:  (530) 873-4394

                               N/A
  (Former Name or Former Address, if changed since last Report)

Securities Registered under Section 12(b) of the Exchange Act:   None

Name of Each Exchange on Which Registered:                       None

Securities Registered under Section 12(g) of the Exchange Act:

                  Common Stock, $0.10 par value
                  -----------------------------
                         (Title of Class)

Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the Company 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.  [X]

State Issuer's revenues for its most recent fiscal year: February 28, 2002 -
$0.00.

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 prices of such stock, as of a specified date within the past 60
days.

As of May 28, 2002, the aggregate market value of the voting stock held by
non-affiliates was $9,637,725, based on approximately 59,309,074 shares of
voting common stock of the registrant held by non-affiliates and the average
bid and asked prices ($0.1625) of the stock.

     ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS

     Not Applicable.

     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: As of May 21, 2002 there
were 72,062,974 shares of the issuer's common stock issued and outstanding.

     DOCUMENTS INCORPORATED BY REFERENCE

     Not Applicable.

Transitional Small Business Disclosure Format   Yes [ ] No [ X ]

                              PART I

Item 1.  Description of Business.

General.
-------

     Unico, Incorporated was formed as an Arizona corporation on May 27, 1966.
It was incorporated under the name of Red Rock Mining Co., Incorporated.  It
was later known as Industries International, Incorporated and I.I.
Incorporated before the name was eventually changed to Unico, Incorporated in
1979.  Unico, Incorporated has engaged in various mining activities since its
inception.  The names "Unico", "we", "our" and "us" used in this report refer
to Unico, Incorporated.

Deer Trail Mine.
----------------

     On March 30, 1992, Unico entered into a Mining Lease and Option to
Purchase agreement with Deer Trail Development Corporation, with headquarters
in Dallas, Texas.  Deer Trail Development Corporation is now known as Crown
Mines, L.L.C.  The lease was to run for a period of 10 years, and cover 28
patented claims, 5 patented mill sites and 171 unpatented claims located
approximately 5 miles South of Marysvale, Utah.  It includes mine workings
known as the Deer Trail Mine, the PTH Tunnel and the Carisa and Lucky Boy
mines.  There are no known, proven or probable reserves on the property.

    Effective December 1, 2001, a new lease agreement was entered into between
the parties covering the same property for a period of thirty (30) months.  It
expires in May 2004.  The new lease agreement is referred to in this report as
the "Deer Trail Lease".  The Deer Trail Lease requires Unico to make monthly
lease payments and pay a 3% net smelter return on ore removed from the Deer
Trail Mine.

     Unico acquired the necessary permits to commence mining activities,
provided that the surface disturbance from the mining activities does not
exceed 10 acres for both mine and mill.  Unico plans to seek a permit for
large scale mining operations.

     Unico worked for more than two years to reopen the Deer Trail Mine.
Unico commenced mining activities in late March or early April 2001 on the
Deer Trail Mine.  Mining activities stopped in November 2001 due to weather.
They are scheduled to resume in late May 2002.  To date, the mining activities
have been fairly limited.  Unico presently has eight full time employees.
There have been between 2 and 5 miners at various times working full time in
the Deer Trail Mine both on mine development work and production work.  Their
efforts have been concentrated in the 3400 Area of the mine, from which they
have been removing approximately 2,000 tons of ore per month.  The ore is
being stock-piled and some of it has been crushed.  Some of the employees have
worked on mine maintenance.

     Unico has completed a mill on site at the Deer Trail Mine.  In November
2001 Unico began milling activities on certain ore removed from the Bromide
Basin Mines.  Eventually Unico intends to begin milling activities on the ore
removed from the Deer Trail Mine in order to process the Deer Trail Mine ore
into lead and zinc concentrates and ship the concentrates to various smelters.

     We believe that there are a variety of mining companies and other mineral
companies that are potential purchasers for the lead concentrates and zinc
concentrates which we intend to sell as the end product from our Deer Trail
Mine mining and milling operations.

     Unico is presently negotiating an agreement with H & H Metals of New York
pursuant to which Unico intends to sell the majority of its concentrates to H
& H Metals.  Unico may also sell concentrates to other parties.

     The lead and zinc concentrates can be transported by either rail or
truck, and there are a variety of trucking companies that are willing and able
to transport zinc and lead concentrates to smelters or other places designated
by purchasers.

The Deer Trail Mine Development Agreement.
------------------------------------------

     On October 5, 1998 Unico entered into the Deer Trail Mine Development
Agreement with Guilderbrook, Inc. and Aurora Resources & Mining Corp.
Guilderbrook, Inc. is owned by Gilbert A. Windheim, one of Unico's principal
stockholders.  Aurora Resources & Mining Corp. is owned by David F. Poisson
and his wife.  Mr. Poisson has been a director and assistant secretary of
Unico since November 1999.  The Deer Trail Mine Development Agreement was
entered into at a time when Unico was seriously delinquent in its obligations
under the Deer Trail Lease, and needed assistance with making both delinquent
lease payments and future lease payments.  The Deer Trail Mine Development
Agreement required Guilderbrook, Inc. to provide $60,000 to Unico in order to
pay past due lease payments and to provide $9,000 per month for future lease
payments.  In exchange for these payments, Guilderbrook, Inc. is to receive
25% of the net profits from the future mining operations ore sales, including
all ore mined at the Deer Trail Mine.

     The Deer Trail Mine Development Agreement obligates Aurora Resources &
Mining Corp. to provide the mine operations management along with the other
necessary additional equipment to begin mining operations at the Deer Trail
Mine.  This is to be done with Aurora Resources & Mining Corp.'s financial and
additional capital equipment resources.  In consideration for this
contribution, the Deer Trail Mine Development Agreement provided that Aurora
Resources & Mining Corp. was to receive 50% of the net profits from all mined
ore sales from the Deer Trail Mine.

     The Deer Trail Mine Development Agreement provided that at a future time
when exercising the existing option under the Deer Trail Lease is appropriate,
Guilderbrook, Inc. is to pay 25% of the option price, Aurora Resources &
Mining Corp. is to pay 50% of the option price and Unico is to pay 25% of the
option price.  The total option price is presently $4,000,000.  In the event
that the option is exercised under the Deer Trail Lease, the full ownership
interests of the parties and the property, rights and privileges, and any net
smelter returns to be shared between the parties would then be own/shared on
the following basis:

        o     Unico - 25%
        o     Guilderbrook, Inc. - 25%
        o     Aurora Resources & Mining Corp. - 50%.

In the event that the option is exercised, Unico is to continue to be a
leaseholder and operator of the Deer Trail Mine property.

     In February 1999, Unico issued 500,000 shares of its common stock to
Aurora Resources & Mining Co. in exchange for a 26% net profits interest under
the Deer Trail Mine Development Agreement.  In October 1999, Aurora Resources
& Mining Corp. agreed to return to Unico the remaining 24% right to net
profits under the Deer Trail Mine Development Agreement.  As a result, Unico
is now entitled to 75% of any net profits generated under the Deer Trail Mine
Development Agreement, and Guilderbrook, Inc. is entitled to the remaining 25%
of any net profits.

Silver Bell Mine.
-----------------

     In September and December 2000, Unico acquired all of the issued and
outstanding shares of stock of Silver Bell Mining Company, Incorporated, a
Utah corporation, in consideration for the issuance of 3,000,000 restricted
shares of Unico common stock.  Of the 3,000,000 shares of Unico common stock
issued in the acquisition, approximately 2,300,000 shares were issued to W.
Dan Proctor.  W. Dan Proctor is the President and a director of Silver Bell
Mining Company, Incorporated. Mr. Proctor also serves as a business consultant
to Unico and project manager.

     Silver Bell Mining Company, Incorporated was incorporated in the State of
Utah on April 26, 1993.  It has acquired 26 patented mining claims located in
American Fork Canyon, Utah County, Utah, which is organized into three
separate parcels.  The claims contain mining properties which have not been
mined for production since 1983.  The properties were mined primarily for
silver, lead and zinc.  There are no known, proven or probable reserves on the
property.

     Unico intends to commence some mining activities on the Silver Bell Mine
in late Summer, 2002.  Unico anticipates that it may mine approximately 60
tons of ore per day from the Silver Bell Mine initially.  Unico intends to
transport the ore to the Deer Trail Mine site where it will be crushed and
milled.

Bromide Basin Mine.
-------------------

     On July 20, 2001, Unico entered into a Mining Lease and Option to
Purchase ("Kaibab Mining Lease") with Kaibab Industries, Inc., an Arizona
corporation.  Under the Kaibab Mining Lease, Kaibab Industries, Inc. has
leased to Unico certain mining claims located in the Henry Mountain Mining
District in Garfield County, Utah containing approximately 400 acres, which
includes the Bromide Basin Mines.  The Kaibab Mining Lease also provides for
the leasing of certain mining equipment from Kaibab Industries, Inc. to Unico.
The Kaibab Mining Lease runs for a term of three years, and grants to Unico
the option to purchase all of the property being leased for $1,000,000.  The
option is exercisable during the three year term of the Kaibab Mining Lease.
There are no known, proven or probable reserves on the property.

     As consideration for the Kaibab Mining Lease, Unico has agreed to pay to
Kaibab Industries, Inc. a 5% net smelter return upon all ore taken from the
property during the term of the Kaibab Mining Lease.  The Kaibab Mining Lease
requires Unico to meet certain minimum monthly production requirements equal
to the lesser of the following: (a) the mining and removal of a minimum of
1,000 tons of ore per month from the leased premises; or (b) the refining of a
minimum of 1,000 ounces of gold per month mined from the leased premises.  The
monthly minimum production requirements apply only from June 10 through
November 20 of each year during the term of the Kaibab Mining Lease.  Minimum
production requirements for partial months are to be pro rated.  In the event
that Unico is unable to meet the minimum production requirements, then Kaibab
Industries, Inc. may terminate the Lease Agreement and require Unico to
purchase all or any portion of certain equipment and personal property leased
by Kaibab Industries, Inc. to Unico for an agreed upon value specified in the
Kaibab Mining Lease.  The total agreed upon value of all equipment and
personal property specified in the Kaibab Mining Lease is approximately
$164,755.

     Unico commenced mining efforts on the Bromide Basin Mines in September
2001 with five full time miners.  Mining efforts stopped in November 2001 due
to weather.  Mining activities resumed in late May 2002.  Unico will continue
to remove ore from the property, and transport the ore to the Deer Trail Mine
site where it will be crushed and milled.  Because of the Bromide Basin Mines'
high elevation, mining activities are seasonal and will likely occur only from
June through November.

Smelting and Refining.
---------------------

     All of the smelting and refining of ore will be handled by other
companies.  Smelters capable of handling the Deer Trail concentrates include
the Cominco Lead and Zinc smelters in Trail, British Columbia, Canada, and the
Grupo Mexico (formerly Asarco) smelter in Torreon, Mexico.  Occasionally, high
grade copper-silver concentrates may be sent to the Noranda smelter in
Belledune, New Brunswick, Canada.

Dependence on Metal Prices.
--------------------------

    Unico's mining activities will be largely dependent on metal prices.  The
prices may fluctuate on the world commodity markets and will be beyond the
influence of Unico.  A substantial reduction in the price of metals might
impede Unico's ability to economically mine or to raise additional capital.

Competition.
-----------

     Unico competes with many mining companies in the U.S. and throughout the
world.  The majority of Unico's competitors are much larger and better
financed than Unico.  Some of Unico's competitors have closed mining
operations in recent years due to low metal prices.

Employees.
----------

     Unico presently has 8 full time employees and 1 part time employee who
are leased from another company.  Five of these full time employees are
miners.   The other full time employees include a project manager, foreman and
3 other workers.  The part time employee is an electrician.  Unico believes
that it will increase its number of employees to approximately 20-25 full time
employees this summer.  In the event the mining operations are successful,
additional employees may be added in the future.

Governmental Regulation.
-----------------------

    Mining and/or processing activities are subject to numerous permitting and
environmental laws and regulations administered by active federal, state, and
local authorities, particularly the Utah Division of Oil, Gas and Mining.
Although the permits necessary for mining operations on the patented and
unpatented Deer Trail Mine claims and on the patented Silver Bell Mine claims
have already been obtained, Unico may be required to expand such permitting in
order to fully develop the properties.  In order to obtain expanded permits,
it may be necessary to gather and analyze baseline data, complete
environmental assessments or environmental impact statements with appropriate
steps to mitigate potential adverse impacts, and modify the proposed plans in
order to accommodate environmental impacts, all of which may take an
indeterminate amount of time to complete.

     The mining operations are regulated under the jurisdiction of the Mine
Safety and Health Administration or "MSHA" to some degree to insure safe
operations.  Without proper training of personnel and compliance to all MSHA
rules, the mine could be subject to heavy fines and closure.  Presently Unico
has no outstanding citations and has complied with MSHA regulations and
maintains a good working relationship with MSHA.  The mining operations are
subject to periodic inspections by MSHA which, depending on the outcome of an
inspection, could curtail production until any violations have been cured.

Cost and Effect of Compliance with Environmental Laws.
-----------------------------------------------------

     Environmental regulations and guidelines have been established by state
and federal agencies to insure that the environment is not permanently
adversely impacted.  Unico presently has $38,000 in reclamation bonds with the
U.S. Forest Service and the Utah Division of Oil, Gas and Mining.  As Unico
expands its operations it will become necessary to comply with further
regulations for larger operations and more bonding will be required from time
to time.  Permitting will be an ongoing function of Unico's operations.

Item 2.  Description of Property.

Deer Trail Lease.
----------------

     On March 30, 1992, Unico entered into a Mining Lease and Option to
Purchase agreement with Deer Trail Development Corporation, with headquarters
in Dallas, Texas.  Deer Trail Development Corporation is now known as Crown
Mines, L.L.C.  The lease was to run for a period of 10 years, and cover 28
patented claims, 5 patented mill sites and 171 unpatented claims located
approximately 5 miles South of Marysvale, Utah.  It includes mine workings
known as the Deer Trail Mine, the PTH Tunnel and the Carisa and Lucky Boy
mines.

     A new Mining Lease and Option to Purchase was entered into between the
same parties on December 1, 2001 which replaced the earlier lease.  The new
Lease expires June 1, 2004.  Under the new Lease Unico is required to pay as
rental for the leased claims, a five percent (5%) royalty upon all ore taken
and sold from the premises, with a minimum royalty of $10,000 per month,
regardless of the amount of actual production from the Lease during any given
month.  Unico is also required to pay all utility costs and taxes on the
claims estimated to be approximately $25,000 per year.  The Mining Lease and
Option to Purchase grants to Unico an option to purchase all the claims and
mill sites, including all dumps, equipment and personal property contained
therein at a price of $4,000,000 plus the lessor would retain a carried
interest of three percent (3%) of net smelter returns from the claims in
perpetuity.  The option may be exercised at any time prior to the termination
date of the Lease.

The Deer Trail Mine.
-------------------

     The Deer Trail claims are located in the Tushar Mountains of East
Central, Utah in the Mount Baldy and Ohio Mining districts.  They are located
on Deer Trail Mountain, approximately 5 miles South of Marysvale, Utah and are
accessible by a gravel county road which is in good condition.  There are no
known, proven or probable reserves on the property.

     The Deer Trail ore body was first discovered by deer hunters in 1878.
The ore body originally cropped out at the surface.  It is estimated that
between 1878 and 1917, about 10,000 tons of ore were mined.  A small mill was
installed in 1918, and between 1918 and 1923 the mine produced about 138,000
tons of predominately oxidized ore averaging 1.38 opt gold, 11.49 opt silver
and 3.26% lead.  Zinc and copper were not recovered.  In 1923, mining was
suspended when the workings encountered a fault that cut off the ore, and for
more than 20 years production was limited to drawing stopes and removing
pillars.  In 1945, the PTH tunnel was started to explore for the faulted
extension of the Deer Trail ore body.  The 3,400 ore body was encountered
unexpectedly by this tunnel and a total of 5,000 tons of ore averaging 2.84%
lead, 0.76% copper, 6.26% zinc, 15.17 opt silver and 0.19 opt gold were
shipped.  By 1964, the PTH tunnel had intersected the offset part of the Deer
Trail ore body.  From 1964 until 1981 this segment of the ore body produced
over 100,000 tons of unoxidized sulfide ore averaging 5% lead, 0.6% copper,
12% zinc, 15 opt silver, and 0.10 opt gold.  The present working face is still
in ore.

     The PTH Tunnel penetrates more than 10,000 feet with a developed network
of tunnels, shafts and raises at the 3,400 foot area and at the 8,000 foot
area and was mined extensively for gold and silver for about 20 years.  The
timbered and ventilated tunnel includes more than two miles of track for ore
cars accessed through a covered entrance structure.

     The mine facilities also include ore cars, battery operated engines, an
engine storage and charging house, a electric power substation, a miner's
locker room, a compressor building, a 1000 gallon underground gasoline storage
tank with gas pump, two front end loaders, three dump trucks and a general
office, lab and core sampling facility.  Unico believes water is accessible to
the site.

     The Deer Trail mining property was developed by the Deer Trail
Development Corporation, now known as Crown Mines, LLC, and is presently owned
by the same company, located in Dallas, Texas.  The property has been leased
out several times since production ceased in 1981.  There has been little
production since then.  Several major mining companies have explored the
property.  These include Noranda, Phelps Dodge and Goldfields.  One smaller
company drilled and analyzed the mill tailings from the upper Deer Trail Mine
area in 1990.  The results of the drilling and other tests were not
conclusive, and at present there are no known proven or probable reserves on
the claims.

     Unico leased the property effective June 1, 1992 and has been actively
working to re-open the mine since then.  Unico has produced a few small lots
of ore from the stopes in the 8600 area of the PTH tunnel for testing and
evaluation purposes, and has developed several excellent targets within those
workings.  In April 2001, Unico began limited mining operations which have
been concentrated in the 3400 area of the mine.

Deer Trail Mine Geological Information.
--------------------------------------

     The Deer Trail mine workings expose westerly dipping sedimentary rocks of
three units: the Toroweap and Queantoweap Formations and the Callville
Limestone.  The Deer Trail ore body is in the lower part of the Toroweap
Formation and consists of a nearly continuous group of semiconcordant
replacement bodies flanking a central vein.  About half of this ore body is
exposed in the Old Deer Trail mine workings and is oxidized; the other half is
located in the 8600 area workings and consists of unoxidized sulphide ore.
The Queantoweap Formation, which underlies the Toroweap, is a quartzite and
hosts no known mantos.  The underlying Callville Limestone contained the 3400
ore body.

     The Toroweap Formation exposed in the 8600 area consists of a wide range
of interbedded lithologies, including quartzite, limestone, dolomite, shale,
and chert, which form 50 or more recognizable units ranging in thickness from
a inch to several feet.  In contrast, the underlying Queantoweap Sandstone
consists of a fairly uniform medium-grained, well-sorted massive quartzite.

     The Calville Limestone in the Deer Trail mine lacks marker beds, and
lithologic facies change rapidly.  The rocks are cut by several faults of
unknown displacement.  The marked lateral variations in lithology have made it
possible to identify only seven correatable stratigraphic assemblages.  The
upper 240 feet of the Callville Limestone in the 3400 area consists dominantly
of mudstones containing quartz silt, evaporite nodules, and sponge spicules.
Below 240 feet, dolomite containing microfossils and peloids is abundant and
evaporites are absent.  In the 8600 area, the Callville has been observed in
drill core and there it contains thick beds of course-grained anhydrite.

     The Toroweap Formation in the mine area strikes generally north-south and
dips 201 W.  The Deer Trail ore body rakes across this inclination with a
bearing of N 701 W, so the average plunge of the ore zone into Deer Trail
Mountain is about 181.

     The mantos in the Old Deer Trail mine workings closely followed the axis
of the Deer Trail anticline, a relationship that was used to guide
development.  In the 8600 area, however, the mantos and the anticline axis
diverge and the deepest workings are about 1500 feet apart.

     The Deer Trail ore body consists of a semicontinuous group of narrow,
elongate strata-bound replacement bodies developed adjacent to a central vein.
The ore body has a sinuous ribbon like shape in plain view and has been mined
for a length of approximately 5,525 feet over a width averaging 32 to 38 feet
and a height averaging about 15 to 30 feet.

     A set of cross faults that trends east-northeast and dip steeply to the
north are exposed in the mine workings in the 8600 area.  These have an
aggregate stratigraphic throw of about 150 feet, down to the north.  One of
these faults is the 18 Drift fault or 18 North fault.  These faults are now
occupied by quartz veins as much as 15 feet thick that contain substantial
quantities of lead, zinc, arsenic, silver, gold, copper and molybdennum.  The
18 north fault consists of quartz with good values in gold, silver and copper
with very little other metals which could possibly be marketed to smelters as
a flux.

Deer Trail Mine Workings.
--------------------------

     The mine workings at the Deer Trail consist of the upper Old Deer Trail
mine workings and the PTH tunnel mine workings.  The Old Deer Trail mine
consists of three levels, approximately 100 vertical feet apart.  The first
level was first accessed from the surface through the discovery shaft of 1878,
with several adits interconnecting from the surface.  The second level or the
No. 2 Tunnel level is accessed through one known tunnel and consists of
several large stopes interconnected with a series of drifts, winzes, and
raises.  The third level or the No. 3 Tunnel level was used as a haulage
tunnel and was the main level of the Old Deer Trail mine.  It consists of
drifts and raises all accessed by 18" narrow gauge track.  The present
workings are only partially accessible.  Many drifts have caved.  All three
levels are interconnected allowing for good ventilation.

     The PTH Tunnel workings underlie the Old Deer Trail workings by
approximately 450 feet and accessed 4,000 feet to the south.  The PTH Tunnel
was started in 1945 to intersect the faulted Deer Trail ore body.  It is a
5'x7' tunnel that extends over 10,000 feet into Deer Trail Mountain.  Almost
all areas of these workings are accessed by 18" narrow gauge track.  The
tunnel trends to the north-northwest paralleling the base of Deer Trail
Mountain.  At approximately 3,400 feet the tunnel intersected unexpectedly
mineralization in the Callville Limestone.  This mineralization was developed
on the PTH Tunnel level as well as two levels below 100 vertical feet apart.
Bedded mineralization associated with the Wet Fault was produced via a series
of drifts, winzes, stopes and raises.  A ventilation/escape shaft was driven
to the surface in this area.  The tunnel next encountered mineralization at
approximately 8,600 feet, where the tunnel encountered the continuation of the
Deer Trail ore body.  Several thousand feet of drifts was driven to explore
and exploit the deposit.  An internal shaft was driven 250 feet to gain access
to the shallowing dipping ore where three more levels were established.  Again
several hundred feet of drifts, stopes, raises and winzes were driven to mine
the ore body.

     Water was encountered in the 280 winze and pumps were installed in order
to continue mining.  Mining was stopped in 1981 due to lack of processing and
smelting facilities.  The present face in the 280 area is still in ore.   The
width of the face was increasing as well as the value of the ore.  A raise to
connect the PTH workings with the Old Deer Trail Mine was started located
approximately where the PTH Tunnel crossed the 18 North fault.  It is
presently up 140 feet.

Deer Trail Mine Mineral Resources.
---------------------------------

     The resources have been outlined above.  However, further efforts to
increase the mineable resources of the mine are being explored.  Further
drilling to prove up known resources are contemplated as well as ways to mine
more efficiently in order to mine lower grade ores at a profit.  One such
method is now under review.  The use of a heavy media separator could
significantly increases mineable reserves.  The heavy media separator is a
method whereby low grade material can be upgraded underground for less than
$2.50 per ton.  Areas left undeveloped in the mine due to the amount of waste
rock between narrow mineralized beddings might effectively be produced by
using heavy media separator technology.

     The Deer Trail deposit is similar to many deposits in Utah, such as
Tintic and Park City, where mine reserves were drilled approximately two years
ahead of production due to the nature of the deposits and the costs involved
in drilling out entire reserves before mining began.  It is planned that
reserves in the Deer Trail will be established two to three years ahead of
production.  Exploration drilling will be conducted in conjunction with mine
production.  Several prospective targets will be drilled from underground as
the workings advance.

     To date only two known mineralized horizons have been exploited.  Unico
believes the underlying formations contain very favorable horizons for
mineralization.  But they have yet to be tested.  Unico believes the potential
is excellent that more mineralization will be discovered.

Unico's Purchase of 680 Acres Near the Deer Trail Mine.
------------------------------------------------------

     On August 28, 2000, Unico entered into a Sales Agreement to purchase
approximately 680 acres of raw ground located in Piute County, State of Utah,
adjacent to the existing Deer Trail Mine property leased by Unico.  The
property was purchased from Tech-Sym Corporation of Houston, Texas.

     The property was purchased for $200,000 of which $50,000 was paid as down
payment, and the balance of $150,000 was paid in April 2001.

     Unico purchased the property for the purpose of establishing a mill site
on the property and to use as a place to store waste rock from mining
operations, and for other general mining and business purposes.

Silver Bell Mine.
-----------------

     On December 6, 2000, Unico acquired all of the issued and outstanding
shares of stock of Silver Bell Mining Company, Incorporated, a Utah
corporation, in consideration for the issuance of 3,000,000 restricted shares
of Unico common stock.  This represents approximately five percent (5.0%) of
the total issued and outstanding shares of common stock of Unico.

     Silver Bell Mining Company, Incorporated was incorporated in the State of
Utah on April 26, 1993.  It has acquired 26 patented mining claims located in
American Fork Canyon, Utah County, Utah, which is organized into three
separate parcels.  The claims contain mining properties which have not been
mined for production since 1983.  The properties were mined primarily for
silver, lead and zinc.  There are no known, proven or probable reserves on the
property.

     The Silver Bell deposit was first discovered in 1871 by soldiers
stationed at Fort Douglas in Salt Lake City.  Mining was confined to select
high grade ores averaging 100 ounces per ton in silver.  The workings
consisted of an adit and a winze and ore was lowered down the mountain by
means of a cable and rail system.  The mine was enlarged to accommodate larger
equipment in 1980 and some ore was produced which averaged 22 ounces in silver
per ton of ore.  The deposit consists of a single fissure or vein known as the
Silver Bell fissure which averages six feet in width and dips to the NW at 62
degrees.  It has been exposed for over 300 feet in depth and over 1,200 feet
of strike length.  Associated with the fissure several mineralized horizons
(mantos) have been encountered.  Recent independent sampling done by Watts,
Grifiths, and McQuat and others demonstrate that the mantos are far richer
than the vein mineralization with values as high as 120 ounces per ton silver.
The deposit contains both oxide and sulphide ore rich in silver, lead, zinc
and copper.  The sulphide mineralization contains more values than the oxides.
The mineralized system is located within the Maxfield cambrian limestone unit
and extends down through the Ophir units into the Tintic Quartzite.  There is
presently an estimated resources of over 100,000 tons.

     Unico intends to commence some mining activities on the Silver Bell Mine
in Summer 2002.  Unico anticipates that it may mine approximately 60 tons of
ore per day from the Silver Bell Mine initially.  The ore will be transported
to the Deer Trail Mine site where it will be crushed and milled.

Bromide Basin Mines.
--------------------

     On August 20, 2001, Unico entered into a Mining Lease and Option to
Purchase ("Kaibab Mining Lease") with Kaibab Industries, Inc., an Arizona
corporation.  Under the Kaibab Mining Lease, Kaibab Industries, Inc. has
leased to Unico certain mining claims located in the Henry Mountain Mining
District in Garfield County, Utah containing approximately 400 acres, which
includes the Bromide Basin Mines.  The Kaibab Mining Lease also provides for
the leasing of certain mining equipment from Kaibab Industries, Inc. to Unico.
The Kaibab Mining Lease runs for a term of three years, and grants to Unico
the option to purchase all of the property being leased for $1,000,000.  The
option is exercisable during the three year term of the Kaibab Mining Lease.
There are no known, proven or probable reserves on the property.

     As consideration for the Kaibab Mining Lease, Unico has agreed to pay to
Kaibab Industries, Inc. a 5% net smelter return upon all ore taken from the
property during the term of the Kaibab Mining Lease.  The Kaibab Mining Lease
requires Unico to meet certain minimum monthly production requirements equal
to the lesser of the following: (a) the mining and removal of a minimum of
1,000 tons of ore per month from the leased premises; or (b) the refining of a
minimum of 1,000 ounces of gold per month mined from the leased premises.  The
monthly minimum production requirements apply only from June 10 through
November 20 of each year during the term of the Kaibab Mining Lease.  Minimum
production requirements for partial months are to be pro rated.  In the event
that Unico is unable to meet the minimum production requirements, then Kaibab
Industries, Inc. may terminate the Lease Agreement and require Unico to
purchase any or all of certain equipment and personal property leased by
Kaibab Industries, Inc. to Unico for the agreed upon value specified in the
lease.  The total agreed upon value of all equipment and personal property
specified in the lease is approximately $164,755.

Item 3.  Legal Proceedings.

     Except as described below, Unico is not:

     o    a party to any material pending legal proceedings;

     o    its property is not subject to any material pending legal
          proceedings; and

     o    to the best of Unico's knowledge, no governmental authority or other
          party has threatened or is contemplating the filing of any material
          legal proceedings against Unico:

     On August 8, 1996, The Allen Ball and Connie Ball Living Trust filed a
     lawsuit against Unico in the Third Judicial District Court in and for
     Salt Lake County, State of Utah (Case No. 960905503) in which the trust
     sought to collect approximately $286,000 plus accrued interest on a
     promissory note from Unico.  In September 1996 Unico filed its answer to
     the complaint alleging that the promissory note had been paid in full
     through the issuance of 151,512 shares of Unico common stock.  Unico
     denies any liability. This case has been inactive for approximately five
     years.

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

     No matter was submitted to a vote of security holders, through the
solicitation of proxies or otherwise, during the fourth quarter of the fiscal
year covered by this report.

                             PART II

Item 5.  Market for Common Equity and Related Stockholder Matters.

Market information.
-------------------

     Our common stock is traded in the over-the-counter market and quoted on
the NASD's OTC bulletin board under the ticker symbol "UNCN".  The shares are
thinly traded and a limited market presently exists for the shares.  The
following table describes, for the respective periods indicated, the prices of
Unico common stock in the over-the-counter market, based on inter-dealer bid
prices, without retail mark-up, mark-down or commissions and may not
necessarily represent actual transactions.  The quotations have been provided
by market makers in common stock and/or Pink Sheets, LLC.

Quarter ended                 High bid          Low bid
-------------                 ---------         -------

May 31, 2000                   $.23              $.125
August 31, 2000                $.181             $.09
November 30, 2000              $.205             $.105
February 28, 2001              $.21              $.13
May 31, 2001                   $.215             $.10
August 31, 2001                $.13              $.081
November 30, 2001              $.11              $.07
February 28, 2002              $.09              $.06

Number of Stockholders.
-----------------------

      As of May 21, 2002 there were approximately 532 stockholders of record.
Because many of the shares are held in broker or street name, Unico believes
that it has significantly more than 532 beneficial stockholders.

Dividend Information.
---------------------

     We have not paid any dividends during the last two fiscal years or since
then.  We currently intend to retain any earnings to finance the development
and expansion of our operations and do not anticipate paying cash dividends or
making any other distributions on our shares of common stock in the
foreseeable future.  Our future dividend policy will be determined by our
board of directors on the basis of various factors, including our results of
operations, financial condition, business opportunities and capital
requirements.

Under Arizona state corporate law, no dividends may be paid if, after giving
effect to the dividends, either:  (a) Unico would not be able to pay its debts
as they become due in the usual course of business; or (b) Unico's total
assets would be less than the sum of its total liabilities plus, unless
Unico's articles of incorporation provide otherwise, the amount that would be
needed, if Unico were to be dissolved at the time of the distribution, to
satisfy the preferential rights on dissolution of shareholders whose
preferential rights are superior to those receiving the dividend.

Recent Sales of Unregistered Securities.
----------------------------------------

     During the fiscal year ended February 28, 2002, Unico made the following
sales of securities which were not registered under the Securities Act of
1933:

                                    No. of
Date        Recipient               Shares   Consideration    Valuation
--------    ----------------------  -------- -------------    ---------
04/30/01    Carolyn M. Gabriel      153,847   Cash             $ 20,000
04/30/01    J. Bruce Hirschberg     416,667   Cash             $ 50,000
05/24/01    Carolyn M. Gabriel      181,819   Cash             $ 20,000
06/25/01    Steven Gabriel          151,515   Cash             $ 16,667
06/25/01    Mark Gabriel            151,515   Cash             $ 16,667
06/25/01    Paul Gabriel            151,515   Cash             $ 16,667
06/25/01    Joseph C. Gabriel       151,515   Cash             $ 16,667
06/25/01    Lawrence Gabriel        151,515   Cash             $ 16,667
06/25/01    Cynthia Whitney         151,515   Cash             $ 16,667
08/03/01    J. Bruce Hirschberg     272,728   Cash             $ 30,000
08/03/01    C. Wayne Hartle         908,900   Debt conversion  $144,068
                                              to equity
08/17/01    J. Bruce Hirschberg     200,000   Cash             $ 20,000
09/15/01    Anthony G. Nuzzo        138,889   $12,500 Cash &   $ 13,889
            and Julie Nuzzo                    $1,389 Services
09/15/01    J. Bruce Hirschberg     194,445   $17,500 Cash &   $ 19,445
                                               $1,945 Services
09/15/01    Joseph C. Gabriel        55,556   $5,000 Cash &    $  5,556
                                               $556 Services
10/05/01    Frederick A. Johnson    200,000   Cash             $ 20,000
10/05/01    Richard C. Wood          50,000   Cash             $  5,000
10/05/01    Lorraine H. Wood         50,000   Cash             $  5,000
11/01/01    J. Bruce Hirschberg     100,000   Cash             $ 10,000
11/01/01    James Joseph Maclellan  200,000   Cash             $ 20,000
11/01/01    Joseph F. Gabriel       100,000   Cash             $ 10,000
11/14/01    Darwin L. Peterson      100,000   Cash             $ 10,000
11/14/01    C. Bradley Johnson      100,000   Cash             $ 10,000
11/14/01    Donna Sorenson           24,000   Equipment        $  2,400
12/26/01    Joseph F. Gabriel       250,000   Cash             $ 25,000
12/26/01    Michael A. Nuzzo        100,000   Cash             $ 10,000
12/26/01    The Nuzzo Group, Inc.    55,000   Services         $  5,500
01/17/02    Kelvin Kasai            314,487   $3,000 Cash &    $ 31,449
                                              $28,449 Services
01/17/02    Joshua Proctor          100,000   $6,540 Services  $ 10,000
                                               & $3,460 prepaid
                                               Services
01/17/02    W. Dan Proctor          100,000   Services         $ 10,000
01/17/02    Eben Loewenthal         500,000   Services         $ 50,000
01/17/02    Eben Loewenthal         200,000   Cash             $ 20,000
01/17/02    John Lamaetra            10,000   Services         $  1,000
02/07/02    Randy McAtee            150,000   Services         $ 15,000
02/07/02    Margaret E. Peterson    250,000   Cash             $ 25,000


Each of the persons who purchased shares during the fiscal year ended February
28, 2002 (other than C. Wayne Hartle, Donna Sorenson, Kelvin Kasai, Joshua
Proctor, W. Dan Proctor, Eben Loewenthal, John Lamaetra and Randy McAtee)
received options to purchase an equal number of shares at the same cash price
per share during the two years following their stock purchases.  Eben
Loewenthal received a similar option on only 200,000 shares.

    All of the shares described above in the table and the options described
above were sold or granted directly by Unico, and no underwriters were
involved in the transactions.  Unico relied on section 4(2) of the Securities
Act of 1933 in making all sales of securities to the purchasers.  No
advertising or general solicitation was employed in offering the shares.  Each
purchaser received disclosure information concerning Unico.  Each purchaser
also had the opportunity to investigate Unico and ask questions of its
president and board of directors.  The securities sold were offered for
investment purposes only and not for the purpose of resale or distribution.
The transfer of the shares sold was appropriately restricted by Unico.

    For information concerning sales of shares of Unico's common stock by
Unico which were not registered under the Securities Act of 1933 during the
fiscal year ended February 28, 2001 and 2000 please refer to Unico's annual
reports on Form 10-KSB for the fiscal years ended February 28, 2001 and 2000,
respectively.

Item 6.  Management's Discussion and Analysis or Plan of Operation.

Plan of Operation.
------------------

    During the next 12 months, our plan of operation consists of the
following:

    -     increase mining activities at the Deer Trail Mine and the Bromide
          Basin Mine;

    -     increase milling activities at the Deer Trail Mine in June 2002;

    -     begin making sales and shipping concentrates to smelters for
          smelting and refining in June 2002;

    -     begin mining activities at the Silver Bell Mine in Summer 2002;

    -     increase the number of full-time employees from 8 to approximately
          35; and

    -     raise a minimum of $250,000 in additional equity capital, loans
          and/or other financing transactions.

    Accomplishing our 12 month plan of operations is dependent on Unico
raising approximately $250,000 in equity or debt financing during the next 2
to 3 months.  Unico's current cash will sustain operations for approximately
60 days.

Management's discussion and analysis of financial condition and results of
--------------------------------------------------------------------------
operations.
----------

    Liquidity and capital resources.  Presently our liquid resources are
sufficient to support operations for approximately 60 days.  We are dependent
on raising approximately $250,000 to successfully implement our 12 month
business plan described above.

    Our auditors have issued a "going concern" opinion in [note 8] of our
audited financial statements, indicating we do not have established revenues
sufficient to cover our operating costs and to allow us to continue as a going
concern. If we are successful in raising an additional $250,000 in equity or
debt capital or through other financing transactions in the next 2 to 3
months, we believe that Unico will have sufficient funds to meet operating
expenses until income from mining operations should be sufficient to cover
operating expenses.

    We intend to seek additional capital from private sales of Unico's common
stock and, if necessary, from loans from our management and/or others.  In the
event income from mining operations is delayed or is insufficient to cover
operating expenses, then Unico will need to seek additional funds from equity
or debt financing, for which we have no commitments.

    Revenue.  We have had no revenues from operations during the past two
fiscal years.  We anticipate generating revenues from operations beginning in
the summer 2002.

    Lease termination; option to purchase.  Unico's new lease agreement for
the Deer Trail Mine expires June 1, 2004.  We presently have an option to
purchase the Deer Trail Mine for $4,000,000 plus a carried interest or royalty
of a three percent (3%) net smelter return.  In the event mining operations
from the mine are profitable, Unico will either need to obtain an extension of
the lease agreement or exercise the option to purchase the Deer Trail Mine
before June 1, 2004.  No assurance can be given that the owner of the Deer
Trail Mine will extend the lease.  Unico presently does not have sufficient
funds to exercise the option to purchase the Deer Trail Mine, and no assurance
can be given that Unico will have sufficient funds to purchase the Deer Trail
Mine when the lease expires.

Item 7.  Financial Statements.





                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)

                CONSOLIDATED FINANCIAL STATEMENTS

                        February 28, 2002



<PAGE>

                         C O N T E N T S


Independent Auditors' Report............................................... 3

Consolidated Balance Sheet................................................. 4

Consolidated Statements of Operators....................................... 6

Consolidated Statements of Stockholders' Equity (Deficit).................. 7

Consolidated Statements of Cash Flows......................................12

Notes to Consolidated Financial Statements.................................14


<PAGE>

                                H
                                J
                 -------------------------------
                     HJ & ASSOCIATES, L.L.C.
                 -------------------------------
           CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS



                  INDEPENDENT AUDITORS'  REPORT




Unico, Inc. and Subsidiaries
(A Development Stage Company)
Board of Directors
Magalia, California

We have audited  the accompanying consolidated balance sheet of  Unico, Inc.
and Subsidiaries (a development stage company) as of February 28, 2002 and the
related statements of operations, stockholders' equity (deficit) and cash
flows for the years ended February 28, 2002 and February 28, 2001 and from
inception of the development stage on March 1, 1997 though February 28, 2002.
These consolidated financial statements are the responsibility of the
Company's management.  Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.

We conducted our audits 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
consolidated financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall consolidated financial statement
presentation.  We believe that our audits provide 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 Unico, Inc. and Subsidiaries as of February 28, 2002 and the results of
their operations and their cash flows for the years ended February 28, 2002
and  February 28, 2001 and from inception of the development stage on March 1,
1997 through February 28, 2002 in conformity with accounting principles
generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern.  As discussed in Note 8 to
the consolidated financial statements, the Company is a development stage
company with no operating revenues to date, which raises substantial doubt
about its ability to continue as a going concern.  Management's plans in
regard to these matters are also described in Note 8.  The consolidated
financial statements do not include any adjustments that might result from the
outcome of these uncertainties.

/s/ HJ & Associates

HJ Associates & Consultants, LLP
Salt Lake City, Utah
May 22, 2002



-----------------------------------------------------------------------------
 50 South Main Street, Suite 1450 * Salt Lake City, Utah 84144 *
       Telephone (801) 328-4408 * Facsimile (801) 328-4461
------------------------------------------------------------------------------



                                3
<PAGE>

                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
                    Consolidated Balance Sheet


                              ASSETS

                                                                  February 28
                                                                     2002
                                                                 -------------

CURRENT ASSETS

  Cash and cash equivalents                                      $     33,009
  Certificate of deposit                                                5,006
                                                                 -------------

    Total Current Assets                                               38,015
                                                                 -------------

PROPERTY AND EQUIPMENT

  Property and equipment, net (Note 4)                                765,443
                                                                 -------------

    Total Property and Equipment                                      765,443
                                                                 -------------
OTHER ASSETS

  Refundable deposit                                                      500
  Reclamation bond                                                     38,402
                                                                 -------------

    Total Other Assets                                                 38,902
                                                                 -------------

      TOTAL ASSETS                                               $    842,360
                                                                 =============


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

                                4
<PAGE>

                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
              Consolidated Balance Sheet (Continued)


          LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                                  February 28,
                                                                     2002
                                                                 -------------

CURRENT LIABILITIES

  Bank overdraft                                                 $      4,055
  Accounts payable                                                     37,437
  Accrued expenses                                                        800
  Notes payable - related party (Note 7)                              544,589
  Notes payable (Notes 6 and 9)                                       301,500
  Accrued interest payable                                            746,930
  Commitments and contingencies (Note 9)                              572,797
                                                                 -------------

    Total Current Liabilities                                       2,208,108
                                                                 -------------

STOCKHOLDERS' EQUITY (DEFICIT)

  Common stock, 100,000,000 shares authorized at $0.10 par
    value; 71,707,974 shares issued and outstanding                 7,170,799
  Additional paid-in capital                                          644,381
  Services prepaid with common stock                                   (3,460)
  Stock subscription receivable                                      (379,260)
  Deficit accumulated prior to development stage                   (3,788,522)
  Deficit accumulated during the development stage                 (5,009,686)
                                                                 -------------

    Total Stockholders' Equity (Deficit)                           (1,365,748)
                                                                 -------------

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)            $    842,360
                                                                 =============



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


                                5

<PAGE>
                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
              Consolidated Statements of Operations



                                                                 From
                                                                 Inception
                                                                 of the
                                                                 Development
                                                                 Stage on
                                                                 March 1,
                                        For the Years Ended      1997 Through
                                             February 28,        February 28,
                                          2002          2001     2002
                                      ------------ ------------- -------------

REVENUES                              $         -  $          -  $          -

EXPENSES

  General and administrative              583,034       487,238     3,006,728
  Depreciation                             67,510        34,388       224,079
                                      ------------ ------------- -------------

    Total Expenses                        650,544       521,626     3,230,807
                                      ------------ ------------- -------------

      Loss from Operations               (650,544)     (521,626)   (3,230,807)
                                      ------------ ------------- -------------

OTHER INCOME (EXPENSES)

  Interest income                           3,678         2,444        12,420
  Interest expense                       (127,573)     (139,404)     (762,744)
  Decline in value assets                       -             -      (651,810)
  Settlement of debt                            -      (110,000)      (91,000)
  Loss on valuation of asset                    -      (309,150)     (309,817)
  Gain on gold contract                         -             -        24,072
                                      ------------ ------------- -------------

     Total Other Income (Expenses)       (123,895)     (556,110)   (1,778,879)
                                      ------------ ------------- -------------

NET LOSS                              $  (774,439) $ (1,077,736) $ (5,009,686)
                                      ============ ============= =============

NET LOSS PER SHARE                    $     (0.01) $      (0.02)
                                      ============ =============

WEIGHTED NUMBER OF SHARES OUTSTANDING  68,083,444    57,948,929
                                      ============ =============

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


                                6
<PAGE>
<TABLE>
<CAPTION>



                           UNICO, INC. AND SUBSIDIARIES
                           (A Development Stage Company)
             Consolidated Statements of Stockholders' Equity (Deficit)


                                                           Additional    Stock
                                         Common Stock      Paid-in       Subscription Prepaid   Accumulated
                                     Shares      Amount    Capital       Receivable   Services  Deficit
                                    ----------- ---------- ------------- ------------ --------- ------------
<S>                                 <C>         <C>        <C>           <C>          <C>       <C>
Balance, February 28, 1997          36,887,712  $3,688,771 $    170,052  $         -  $      -  $(5,254,277)

Common stock issued for services
 rendered                            1,760,000     176,000            -            -         -            -

Common stock issued for cash         1,740,000     174,000            -            -         -            -

Common stock issued in payment
 of debt                               400,000      40,000            -            -         -            -

Common stock issued for
 acquisition of fixed assets            60,000       6,000            -            -         -            -

Stock subscription receivable        1,000,000     100,000            -     (100,000)        -            -

Net loss for the year ended
 February 28, 1998                           -           -            -            -         -     (670,808)
                                    ----------- ---------- ------------- ------------ --------- ------------

Balance, February 28, 1998          41,847,712   4,184,771      170,052     (100,000)        -   (5,925,085)

Common stock issued for payment
 of debt at $0.10 per share          5,000,000     500,000            -            -         -            -

Common stock issued for
 investment in mining properties
 at $0.10 per share                    500,000      50,000            -            -         -            -

Common stock issued for services
 rendered at $0.10 per share           250,000      25,000            -            -         -            -

Net loss for the year ended
 February 28, 1999                           -           -            -            -         -     (527,681)
                                    ----------- ---------- ------------- ------------ --------- ------------

Balance, February 28, 1999          47,597,712   4,759,771      170,052     (100,000)        -   (6,452,766)

Common stock issued for services
 rendered at $0.10 per share             39,000      3,900            -            -         -            -

Common stock issued for cash and
 services at $0.10 per share            580,000     58,000            -            -         -            -

Common stock issued for cash at
 $0.10 per share                        500,000     50,000            -            -         -            -

Common stock issued for cash at
 $0.10 per share                      1,550,000    155,000            -            -         -            -

Warrants granted below market
 price                                        -          -      155,000            -         -            -

Net loss for the year ended
 February 29, 2000                            -          -            -            -         -     (493,267)
                                    ----------- ---------- ------------- ------------ --------- ------------
Balance, February 29, 2000           50,266,712 $5,026,671 $    325,052  $  (100,000) $      -  $(6,946,033)
                                    ----------- ---------- ------------- ------------ --------- ------------

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


                                         7
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                           UNICO, INC. AND SUBSIDIARIES
                           (A Development Stage Company)
       Consolidated Statements of Stockholders' Equity (Deficit) (Continued)



                                                           Additional    Stock
                                         Common Stock      Paid-in       Subscription Prepaid   Accumulated
                                     Shares      Amount    Capital       Receivable   Services  Deficit
                                    ----------- ---------- ------------- ------------ --------- ------------
<S>                                 <C>         <C>        <C>           <C>          <C>       <C>
Balance, February 29, 2000           50,266,712 $5,026,671 $    325,052  $  (100,000) $      -  $(6,946,033)

April 25, 2000, common stock
 issued for cash and subscription
 receivable at $0.10 per share        4,000,000    400,000            -     (321,250)        -            -

May 3, 2000, common stock issued
 for cash at $0.10 per share            500,000     50,000            -            -         -            -

May 30, 2000, Common stock issued
 for services at $0.10 per share        500,000     50,000            -            -         -            -

June 2, 2000, partial receipt of
 stock subscription                           -          -            -       11,990         -            -

August 3, 2000, common stock issued
 for services at $0.10 per share        460,000     46,000            -            -         -            -

August 24, 2000, partial receipt
 of stock subscription                        -          -            -       25,000         -            -

September 5, 2000, common stock
 issued for cash at $0.12 per share     208,334     20,833        4,166            -         -            -

September 5, 2000, common stock
 issued for deposit on subsidiary
 acquisition at $0.12 per share         457,500     45,750        9,150            -         -            -

September 25, 2000, partial receipt
 of stock subscription                        -          -            -        5,000         -            -

October 30, 2000, common stock
 issued for cash and services at
 $0.10 per share                        500,000     50,000            -            -         -            -

October 30, 2000, common stock
 issued for related party debt
 and services at $0.14 per share      5,000,000    500,000      200,000            -         -            -

December 6, 2000, common stock
 issued for cash at $0.10 per share     350,000     35,000            -            -         -            -

December 6, 2000, common stock
 issued for subsidiary acquisition
 at $0.10 per share                   2,542,500    254,250            -            -         -            -

February 9, 2001, common stock
 issued for cash at $0.10 per share     100,000     10,000            -            -         -            -

February 9, 2001, common stock
 issued for cash at $0.16 per share     125,000     12,500        7,500            -         -            -

February 9, 2001, common stock
 issued for cash at $0.16 per share     312,500     31,250       18,750            -         -            -

Net loss for the year ended
 February 28, 2001                            -          -            -            -         -   (1,077,736)
                                    ----------- ---------- ------------- ------------ --------- ------------

Balance, February 28, 2001           65,322,546 $6,532,254 $    564,618  $  (379,260) $      -  $(8,023,769)
                                    ----------- ---------- ------------- ------------ --------- ------------



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

                                         8
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                           UNICO, INC. AND SUBSIDIARIES
                           (A Development Stage Company)
       Consolidated Statements of Stockholders' Equity (Deficit) (Continued)

                                                           Additional    Stock
                                         Common Stock      Paid-in       Subscription Prepaid   Accumulated
                                     Shares      Amount    Capital       Receivable   Services  Deficit
                                    ----------- ---------- ------------- ------------ --------- ------------
<S>                                 <C>         <C>        <C>           <C>          <C>       <C>

Balance, February 28, 2001           65,322,546 $6,532,254 $    564,618  $  (379,260) $      -  $(8,023,769)

April 12, 2001, common stock
 and options issued for cash at
 $0.13 per share                        153,847     15,385        4,615            -                      -

April 21, 2001 common stock and
 options issued for cash at
 $0.12 per share                        416,667     41,667        8,333            -         -            -

May 24, 2001, common stock and
 options issued for cash at
 $0.11 per share                        181,819     18,182        1,819            -         -            -

June 25, 2001, common stock and
 options issued for cash at
 $0.11 per share                        909,090     90,909        9,091            -         -            -

August 3, 2001, common stock and
 options issued for cash at $0.11
 per share                              272,728     27,273        2,727            -         -            -

August 3, 2001, common stock and
 options issued for cash at $0.10
 per share                              200,000     20,000            -            -         -            -

August 17, 2001, common stock
 issued for related party debt
 at $0.15 per share                     908,900     90,890       53,178            -         -            -

September 15, 2001, common stock
 and options issued for cash and
 services at $0.10 per share            388,890     38,890            -            -         -            -

October 5, 2001, common stock and
 options issued for cash at $0.10
 per share                              100,000     10,000            -            -         -            -

October 5, 2001, common stock and
 options issued for cash at $0.10
 per share                              200,000     20,000            -            -         -            -

November 1, 2001, common stock
 and options issued for cash at
 $0.10 per share                        100,000     10,000            -            -         -            -

November 1, 2001,common stock
 and options issued for cash at
 $0.10 per share                        200,000     20,000            -            -         -            -

November 1, 2001, common stock
 and options issued for cash
 at $0.10 per share                     100,000     10,000            -            -         -            -
                                    ----------- ---------- ------------- ------------ --------- ------------

Balance forward                      69,454,487 $6,945,450 $    644,381  $  (379,260) $      -  $(8,023,769)
                                    ----------- ---------- ------------- ------------ --------- ------------


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


                                         9
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                           UNICO, INC. AND SUBSIDIARIES
                           (A Development Stage Company)
       Consolidated Statements of Stockholders' Equity (Deficit) (Continued)

                                                           Additional    Stock
                                         Common Stock      Paid-in       Subscription Prepaid   Accumulated
                                     Shares      Amount    Capital       Receivable   Services  Deficit
                                    ----------- ---------- ------------- ------------ --------- ------------
<S>                                 <C>         <C>        <C>           <C>          <C>       <C>
Balance                             69,454,487  $6,945,450 $    644,381  $  (379,260) $      -  $(8,023,769)

November 14, 2001, common stock
 and options issued for cash at
 $0.10 per share                       100,000      10,000            -            -         -            -

November 14, 2001, common stock
 and options issued for cash at
 $0.10 per share                       100,000      10,000            -            -         -            -

November 14, 2001, common stock
 issued for equipment at $0.10
 per share                              24,000       2,400            -            -         -            -

December 26, 2001, common stock
 issued for cash at $0.10 per share    250,000      25,000            -            -         -            -

December 26, 2001, common stock
 issued for cash at $0.10 per share    100,000      10,000            -            -         -            -

December 26, 2001, common stock
 issued for services at $0.10 per
 share                                  55,000       5,500            -            -         -            -

January 17, 2002, common stock
 issued for cash and services at
 $0.10 per share                       314,487      31,449            -            -         -            -

January 17, 2002, common stock
 issued for services and prepaid
 services at $0.10 per share           100,000      10,000            -            -    (3,460)           -

January 17, 2002, common stock
 issued for services at $0.10
 per share                             100,000      10,000            -            -         -            -

January 17, 2002, common stock
 issued for services at $0.10
 per share                             500,000      50,000            -            -         -            -

January 17, 2002, common stock
 issued for services at $0.10
 per share                              10,000       1,000            -            -         -            -
                                    ----------- ---------- ------------- ------------ --------- ------------

Balance forward                     71,107,974  $7,110,799 $    644,381  $  (379,260) $ (3,460) $(8,023,769)
                                    ----------- ---------- ------------- ------------ --------- ------------


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


                                        10

</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                           UNICO, INC. AND SUBSIDIARIES
                           (A Development Stage Company)
       Consolidated Statements of Stockholders' Equity (Deficit) (Continued)

                                                           Additional    Stock
                                         Common Stock      Paid-in       Subscription Prepaid   Accumulated
                                     Shares      Amount    Capital       Receivable   Services  Deficit
                                    ----------- ---------- ------------- ------------ --------- ------------
<S>                                 <C>         <C>        <C>           <C>          <C>       <C>

Balance forward                      71,107,974 $7,110,799 $    644,381  $  (379,260) $ (3,460) $(8,023,769)

January 17, 2002, common stock
 issued for cash at $0.10 per share     200,000     20,000            -            -         -            -

February 7, 2002, common stock
 issued for services at $0.10 per
 share                                  150,000     15,000            -            -         -            -

February 7, 2002, common stock
 issued for cash at $0.10 per share     250,000     25,000            -            -         -            -

Net loss for the year ended
 February 28, 2002                            -          -            -            -         -     (774,439)
                                    ----------- ---------- ------------- ------------ --------- ------------

Balance, February 28, 2002           71,707,974 $7,170,799 $    644,381  $  (379,260) $ (3,460) $(8,798,208)
                                    =========== ========== ============= ============ ========= ============

Accumulated deficit prior to the development stage                                              $(3,788,522)
Accumulated deficit during the development stage                                                 (5,009,686)
                                                                                                ------------
                                                                                                $(8,798,208)
                                                                                                ============


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


                                        11
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                       UNICO, INC. AND SUBSIDIARIES
                      (A Development Stage Company)
                  Consolidated Statements of Cash Flows



                                                                                   From
                                                                                   Inception
                                                                                   of the
                                                                                   Development
                                                                                   Stage on
                                                                                   March 1,
                                                          For the Years Ended      1997 Through
                                                               February 28,        February 28,
                                                            2002          2001     2002
                                                        ------------ ------------- -------------
<S>                                                     <C>          <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES

Net loss                                                $  (774,439) $ (1,077,736) $ (5,009,686)
Adjustments to reconcile net loss to net cash
 (used) by operating activities:
   Stock issued for services                                120,379       121,000     1,217,599
   Warrants issued below market value                             -             -       155,000
   Depreciation expense                                      67,510        34,388       224,079
   Loss on disposition of asset                                   -       (21,722)      (21,055)
   Settlement of debt                                             -             -        19,000
   Gain on gold contract                                          -             -       (24,072)
   Decline in value of assets                                     -       309,150       960,960
Changes in operating assets and liabilities:
   Decrease in accounts receivable and related receivables      433             -           585
   (Increase) decrease in prepaid expenses                        -         9,719             -
   (Increase) in other assets                               (24,408)      (19,000)       (5,906)
   Increase in accounts payable and other liabilities        46,391       221,818       938,426
                                                        ------------ ------------- -------------

     Net Cash (Used) by Operating Activities               (564,134)     (422,383)   (1,545,070)
                                                        ------------ ------------- -------------

CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of land                                                -       (50,000)      (50,000)
  Decrease in investment                                          -             -        95,068
  Purchase of fixed assets                                  (85,860)     (370,131)     (482,591)
                                                        ------------ ------------- -------------

     Net Cash (Used) by Investing Activities                (85,860)     (420,131)     (437,523)
                                                        ------------ ------------- -------------

CASH FLOWS FROM FINANCING ACTIVITIES

  Increase in back overdraft                                  4,055             -         4,055
  Proceeds from notes payable - related party               147,436       522,500       949,785
  Proceeds from notes payable                                 5,000             -         5,000
  Payments on notes payable                                (150,000)            -      (150,000)
  Issuance of stock for cash                                448,000       293,750     1,160,750
  Receipt of stock subscription receivable                        -        41,990        41,990
                                                        ------------ ------------- -------------

     Net Cash Provided by Financing Activities          $   454,491  $    858,240  $  2,011,580
                                                        ------------ ------------- -------------



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

                                    12

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                       UNICO, INC. AND SUBSIDIARIES
                      (A Development Stage Company)
                  Consolidated Statements of Cash Flows



                                                                                   From
                                                                                   Inception
                                                                                   of the
                                                                                   Development
                                                                                   Stage on
                                                                                   March 1,
                                                          For the Years Ended      1997 Through
                                                               February 28,        February 28,
                                                            2002          2001     2002
                                                        ------------ ------------- -------------
<S>                                                     <C>          <C>           <C>
NET INCREASE (DECREASE) IN CASH                         $  (195,503) $     15,726  $     28,987

CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD              228,512       212,786         4,022
                                                        ------------ ------------- -------------

CASH & CASH EQUIVALENTS AT END OF PERIOD                $    33,009  $    228,512  $     33,009
                                                        ============ ============= =============
CASH PAID DURING THE PERIOD FOR:

  Interest                                              $     3,680  $     15,000  $     20,812
  Income taxes                                          $         -  $          -  $          -

NON-CASH FINANCING ACTIVITIES:

  Issuance of stock for services                        $   120,379  $    121,000  $  1,217,599
  Issuance of stock for prepaid services                $     3,460  $          -  $      3,460
  Issuance of stock for related party debt              $   144,069  $    700,000  $  1,384,069
  Issuance of stock for subsidiary acquisition          $         -  $    309,150  $    309,150
  Issuance of stock for fixed assets                    $     2,400  $          -  $     58,400



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


                                    13
</TABLE>
<PAGE>

                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Unico, Inc. (the Company) was organized under the laws of the State of Arizona
on May 27, 1966 under the name of I.I. Incorporated.  The name was later
changed to Industries International, Incorporated, then Red Rock Mining Co.,
Inc. and finally Unico, Inc.  The Company was incorporated for the purpose of
exploring and, if warranted, developing unpatented lode mining claims.  The
Company is presently maintaining and drilling the claims through sampling,
tunnel cleaning, timbering, drill site preparation and other evaluation
activities while seeking financing for further exploration and development. To
date, there has been no material production from the claims and there are no
known, proven or probable reserves.  The Company is considered a development
stage company per Statement of Financial Accounting Standard No. 7 because it
has not substantially began operations.

HydroClear, Ltd., the Company's wholly-owned subsidiary, was organized for the
purpose of marketing water purification units used for purifying swimming pool
or cooling tower water by eliminating bacteria and algae without the use of
chlorine or bromine.  HydroClear, Ltd. is currently inactive.

Between September and December 2000, the Company acquired all of the
outstanding shares of Silver Bell Mining, Inc.  The Company acquired 29 mining
claims through this acquisition.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.  Accounting Method

The Company's financial statements are prepared using the accrual method of
accounting.  The Company has elected a February 28, or 29, year end.

b.  Basic Loss Per Share

The following is an illustration of the reconciliation of the numerators and
denominators of the basic loss per share calculation:

                                                     For the Years Ended
                                                        February 28,
                                                       2002        2001
                                                  ------------- --------------

    Net loss (numerator)                          $   (774,439) $  (1,077,736)
    Weighted average shares outstanding
    (denominator)                                   68,083,444     57,948,929
                                                  ------------- --------------
    Basic loss per share                          $      (0.01) $       (0.02)
                                                  ============= ==============

Dilutive loss per share is not presented due to potentially dilutive items
being antidilutive in nature.


                                14
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

c.  Provision for Taxes

At February 28, 2002, the Company has a net operating loss carryforward
available to offset future taxable income of approximately $1,660,000, which
will expire in 2022.  If substantial changes in the Company's ownership should
occur, there would also be an annual limitation of the amount of NOL
carryforwards which could be utilized.  No tax benefit had been reported in
the financial statements, because the Company believes there is a 50% or
greater chance the carryforwards will expire unused.  The tax benefits of the
loss carryforwards are offset by a valuation allowance of the same amount.

The income tax benefit differs from the amount computed at federal statutory
rates of approximately 38% as follows:

                                                     For the Years Ended
                                                          February 28,
                                                      2002          2001
                                                  ------------- ------------
    Income tax benefit at statutory rate          $    244,121  $   229,614
    Change in valuation allowance                     (244,121)    (229,614)
                                                  ------------- ------------

                                                  $          -  $         -
                                                  ============= ============

    Deferred tax assets (liabilities) are comprised of the following:

                                                     For the Years Ended
                                                         February 28,
                                                       2002        2001
                                                 ------------- -------------

    Income tax benefit at statutory rate         $    630,800  $    386,679
    Change in valuation allowance                    (630,800)     (386,679)
                                                 ------------- -------------

                                                 $          -  $          -
                                                 ============= =============

Due to the change in ownership provisions of the Tax Reform Act of 1986, net
operating loss carryforwards for the Federal income tax reporting purposes are
subject to annual limitations.  Should a change in ownership occur, net
operating loss carryforwards may be limited as to use in future years.

d.  Cash Equivalents

The Company considers all highly liquid investments with a maturity of three
months or less when purchased to be cash equivalents.

                                15
<PAGE>

                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

e.  Principles of Consolidation

The consolidated financial statements include those of Unico, Inc. (the
Company) and its wholly-owned subsidiaries, HydroClear, Ltd., and Silver Bell
Mining, Inc.

f.  Use of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

g.  Recoverability of Asset Costs

The Company assesses on an annual basis the recoverability of its investment
in mining rights.  Any decline in value is recorded when recognized.  Any sale
of assets is charged to asset costs until the cost has been recovered in full.

h.  Recent Accounting Pronouncements

The Company has adopted the provisions of FASB Statement No. 140 "Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities (a replacement of FASB Statement No. 125.)"  This statement
provides accounting and reporting standards for transfers and servicing of
financial assets and extinguishments of liabilities.

Those standards are based on consistent application of a financial-components
approach that focuses on control.  Under that approach, the transfer of
financial assets, the Company recognized the financial and servicing assets it
controls and the liabilities it has incurred, derecognizes financial assets
when control has been surrendered, and derecognizes liabilities when
extinguished.  This statement provides consistent standards for distinguishing
transfers of financial assets that are sales from transfers that are secured
borrowings.

This statement is effective for transfers and servicing of financial assets
and extinguishments of liabilities occurring after March 31, 2001.  This
statement is effective for recognition and reclassification of collateral and
for disclosures relating to securitization transactions and collateral for
fiscal years ending after December 15, 2000.  The adoption of this principle
had no material effect on the Company's consolidated financial statements.


                                16
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

h.  Recent Accounting Pronouncements (Continued)

The Company had adopted the provisions of FIN 44 "Accounting for Certain
Transactions Involving Stock Compensation (an interpretation of APB Opinion
No. 25.)" This interpretation is effective July 1, 2000.  FIN 44 clarifies the
application of Opinion No. 25 for only certain issues.  It does not address
any issues related to the application of the fair value method in Statement
No. 123.

Among other issues, FIN 44 clarifies the definition of employee for purposes
of applying Opinion 25, the criteria for determining whether a plan qualifies
as a noncompensatory plan, the accounting consequence of various modifications
to the terms of a previously fixed stock option or award, and accounting for
an exchange of stock compensation awards in a business combination.  The
adoption of this principle had no material effect on the Company's
consolidated financial statements.

SFAS No.'s 141 and 142 -- In June 2001, the Financial Accounting Standards
Board (FASB) adopted Statement of Financial Accounting Standards SFAS No. 141,
"Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets."  SFAS No. 141 is effective as to any business combination occurring
after June 30, 2001 and certain transition provisions that affect accounting
for business combinations prior to June 30, 2001 are effective as of the date
that SFAS No. 142 is applied in its entirety, which will be March 1, 2002 for
the Company.  SFAS No. 142 is effective, generally, in fiscal years beginning
after December 15, 2001, which will be the fiscal year ending February 28,
2003 for the Company.

SFAS No. 141 provides standards for accounting for business combinations.
Among other things, it requires that only the purchase method of accounting be
used and that certain intangible assets acquired in a business combination
(i.e. those that result from contractual or other legal rights or are
separable) be recorded as an asset apart from goodwill.  The transition
provisions require that an assessment be made of previous business
combinations and, if appropriate, reclassifications be made to or from
goodwill to adjust the recording of intangible assets such that the criteria
for recording intangible assets apart from goodwill is applied to the previous
business combinations.

SFAS No. 142 provides, among other things, that goodwill and intangible assets
with indeterminate lives shall not be amortized.  Goodwill shall be assigned
to a reporting unit and annually assessed for impairment.  Intangible assets
with determinate lives shall be amortized over their estimated useful lives,
with the useful lives reassessed continuously, and shall be assessed for
impairment under the provisions of SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of."
Goodwill is also assessed for impairment on an interim basis when events and
circumstances warrant.  Upon adoption of SFAS No. 142, the Company will assess
whether an impairment loss should be recognized and measured by comparing the
fair value of the "reporting unit" to the carrying value, including goodwill.

                                17
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

h.  Recent Accounting Pronouncements (Continued)

If the carrying value exceeds fair value, then the Company will compare the
implied fair value of the goodwill" (as defined in SFAS No. 142) to the
carrying amount of the goodwill.  If the carrying amount of the goodwill
exceeds the implied fair value, then the goodwill will be adjusted to the
implied fair value.

While the Company has not completed the process of determining the effect of
these new accounting pronouncements on its consolidated financial statements,
the Company currently expects that  there will be no reclassification in
connection with the transition provisions of SFAS No. 141 based on
clarifications of the transition provisions issued by the FASB in October
2001.  Accordingly, the Company expects that, after implementation of SFAS No.
142, all intangible assets will be amortizable and the goodwill will not be
amortizable.

SFAS No. 143 -- On August 16, 2001, the FASB issued SFAS No. 143, "Accounting
for Asset Retirement Obligations," which is effective for fiscal years
beginning after June 15, 2002.  It requires that obligations associated with
the retirement of a tangible long-lived asset be recorded as a liability when
those obligations are incurred, with the amount of the liability initially
measured at fair value.  Upon initially recognizing a liability for an accrued
retirement obligation, an entity must capitalize the cost by recognizing an
increase in the carrying amount of the related long-lived asset.  Over time,
the liability is accreted to its present value each period, and the
capitalized cost is depreciated over the useful life of the related asset.

Upon settlement of the liability, an entity either settles the obligation for
its recorded amount or incurs a gain or loss upon settlement.  While the
Company has not completed the process of determining the effect of this new
accounting pronouncement on its consolidated financial statements, the Company
currently expects that the effect of SFAS No. 143 on the Company's
consolidated financial statements, when it becomes effective, will not be
significant.

SFAS No. 144 " On October 3, 2001, the Financial Accounting Standards Board
issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets" which is effective for financial statements issued for fiscal years
beginning after December 15, 2001 and, generally, its provisions are to be
applied prospectively.  SFAS 144 supercedes SFAS Statement No. 121 (FAS 121),
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets
to Be Disposed Of."  SFAS 144 applies to all long-lived assets (including
discontinued operations) and consequently amends Accounting Principles Board
Opinion No. 30 (APB 30), "Reporting Results of Operations Reporting the
Effects of Disposal of a Segment of a Business."


                                18
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

h.  Recent Accounting Pronouncements (Continued)

SFAS 144 develops one accounting model (based on the model in SFAS 121) for
long-lived assets that are to be disposed of by sale, as well as addresses the
principal implementation issues.  SFAS 144 requires that long-lived assets
that are to be disposed of by sale be measured at the lower of book value or
fair value less cost to sell. That requirement eliminates the requirement of
APB 30 that discontinued operations be measured at net realizable value or
that entities include under 'discontinued operations' in the financial
statements amounts for operating losses that have not yet occurred.

NOTE 3 - MINING CLAIMS AND LEASES

On March 30, 1992, the Company entered into a 10 year Mining Lease and Option
to Purchase Agreement, which became effective June 1, 1992, covering
twenty-eight (28) patented claims, five (5) patented mill sites and one
hundred seventy one (171) unpatented claims located approximately 5 miles
south of Marysvale, Utah (the Deer Trail Mine).  A new Mining Lease and Option
to Purchase was entered into between the same parties on December 1, 2001
which replaced the earlier lease.  The new Lease expires June 1, 2004.  Under
the new Lease the Company is required to pay as rental for the leased claims,
a five percent (5%) royalty upon all ore taken and sold from the premises,
with a minimum royalty of $10,000 per month, regardless of the amount of
actual production from the Lease during any given month.  The Company is also
required to pay all utility costs and taxes on the claims estimated to be
approximately $25,000 per year.  The Mining Lease and Option to Purchase
grants to the Company an option to purchase all the claims and mill sites,
including all dumps, equipment and personal property contained therein at a
price of $4,000,000 plus the lessor would retain a carried interest of three
percent (3%) of net smelter returns from the claims in perpetuity.  The option
may be exercised at any time prior to the termination date of the Lease.


                                19
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 3 - MINING CLAIMS AND LEASES (Continued)

On July 20, 2001, the Company entered into a Mining Lease and Option to
Purchase with Kaibab Industries, Inc. covering certain mining claims located
in the Henry Mountain mining district in Garfield County, State of Utah
containing approximately 400 acres (the Bromide Basin Mine) and certain
equipment and other personal property.  The Lease Agreement continues for a
term of 3 years, and requires that the Company pay a five percent (5%) net
smelter return upon all ore taken from the leased premises during the term of
the Lease Agreement.  The Lease Agreement also contains certain minimum
production requirements that require during the time period of June 10 through
November 20 of each year during the lease term, that the Company must produce
not less than the lesser of the following:  (a) the mining and removal of a
minimum of 1,000 tons of ore per month from the leased premises; or (b) the
refining of a minimum of 1,000 ounces of gold per month mined from the leased
premises.  In the event that the Company fails to meet the minimum production
requirements, the Lessor may terminate the Lease and require the Company to
purchase all or any portion of the equipment and personal property described
in the Lease Agreement.  The total agreed upon value of all of the personal
property described in exhibits to the Lease Agreement is approximately
$164,755.  The Company is also required to pay all taxes and assessments
levied against the leased premises on account of production of ore under the
Lease Agreement.  The lease grants to the Company an option to purchase the
claims and all personal property covered under the Lease for the exercise
price of $1,000,000 less any amounts paid by the Company for the separate
purchase of any of the equipment or other personal property described in the
Lease Agreement.

NOTE 4 - PROPERTY AND EQUIPMENT

Fixed assets are recorded at cost, major additions and improvements are
capitalized and minor repairs are expensed when incurred.

Depreciation of property and equipment is determined using the straight-line
method over the expected useful lives of the assets as follows:

    Description                   Useful Lives
    -----------                   ------------
    Automobiles                   4 years
    Mining equipment              5 and 12 years



                                20
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 4 - PROPERTY AND EQUIPMENT (Continued)

Property and Equipment consist of the following:
                                                          February 28,
                                                             2002
                                                         ----------------
    Automobiles                                          $        28,694
    Mining equipment                                             785,927
    Land                                                         200,000
                                                         ----------------
       Total Property & Equipment                            1,014,621

    Less: accumulated depreciation                              (249,178)
                                                         ----------------

    Net Property & Equipment                             $       765,443
                                                         ================

Depreciation expense for the years ended February 28, 2002 and 2001 amounted
to $67,510 and $34,388, respectively.

NOTE 5 - ACQUISITION

During September and December 2000, the Company acquired 100% of the
outstanding shares of Silver Bell Mining, Inc. in a stock for stock
transaction.  The Company issued 457,500 shares of stock valued at $54,900, or
$0.12 per share to acquire a portion of the outstanding Silver Bell Mining,
Inc. shares in September 2000. During December 2000, the Company acquired the
remaining outstanding shares of Silver Bell by issuing 2,542,500 shares of the
Company's common stock valued at $254,250, or $0.10 per share.  This
acquisition was completed December 6, 2000.  Silver Bell had 29 mining claims
at the date of acquisition.  The investment was written down to its estimated
net realizable value of $-0- at February 28, 2000.  The acquisition was
accounted for as a purchase proforma per APB No. 16.  No value was attributed
to the mining claims.  Financial statements have not been provided as Silver
Bell had no assets other than the 29 mining claims or operations prior to the
purchase.


                                21
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 6 - NOTES PAYABLE

Joint Venture
-------------

The Company entered into a joint venture agreement with a limited partnership
to finance, own and operate a mining operation and processing facility to be
built near Marysvale, Utah.  The claims described in Note 3, above, were the
properties to be exploited.  In exchange for a $25,000 capital contribution
and the claims mentioned,  the Company received a twenty-five percent (25%)
interest in the ownership, profits, gains, losses, deductions and credits
derived from the Joint Venture.

However, in response to litigation initiated by the Company, a proposed
settlement terminating the Joint Venture was signed on June 30, 1994.
Provisions included the return of all mine interests, all improvements
thereto, the benefit of all payments, engineering, etc. and a fluorite
contract to the Company.  The Company is obligated to pay $250,000 plus
$36,000 along with interest at an annual rate of nine percent (9%) in
thirty-six (36) equal payments beginning in October 1994.  The $250,000 could
potentially be convertible to the Company's stock.  Additionally, the Company
will be obligated to pay approximately $580,000 from one-fourth of the net
profit from future mine operations.  The note is currently in default, making
the entire balance due as of the balance sheet date. The balance due at
February 28, 2002 was $286,000, plus accrued interest of 190,057.

NOTE 7 - NOTES PAYABLE - RELATED PARTY

Advances from related parties amounted to $544,589 at February 28, 2002, are
due on demand, and accrue interest at 10% per annum. Accrued interest due to
related parties is $323,943 at February 28,2002.  Interest expense amounted to
$54,934 and $83,384 for the years ended February 28, 2002 and 2001,
respectively.  The Company issued 908,900 shares of its common stock on August
17, 2001 to pay for $144,068 in related party advances.  The shares of common
stock were valued at $0.158 per share.

                                22
<PAGE>

                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001

NOTE 8 - GOING CONCERN

The Company's consolidated financial statements are prepared using generally
accepted accounting principles applicable to a going concern which
contemplates the realization of assets and liquidation of liabilities in the
normal course of business.  The Company has incurred losses from its inception
through February 28, 2002.   It has not established any revenues with which to
cover its operating costs and to allow it to continue as a going concern.
During the next twelve months, the Company's plan of operation consists of the
following:

o     Increase mining activities at the Deer Trail Mine and the Bromide Basin
      Mine;
o     Increase milling activities at the Deer Trail Mine in June 2002;
o     Begin making sales and shipping concentrates to smelters for smelting
      and refining in June 2002;
o     Begin mining activities at the Silver Bell Mine in Summer 2002;
o     Increase the number of full-time employees from 8 to approximately 35;
      and
o     Raise a minimum of $250,000 in additional equity capital, loans and/or
      other financing transactions.

Accomplishing the Company's 12 month plan of operations is dependent on the
Company raising approximately $250,000 in equity or debt financing during the
next 2 to 3 months.  The Company's current cash will sustain operations for
approximately 60 days.

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Litigation
----------

On August 8, 1996, the Allen Ball and Connie Ball Living Trust filed suit
against the Company.  The suit is for the $286,000 plus accrued interest as
summarized in Note 6. The Company has engaged counsel to defend itself in the
action.

In an action filed by the Mine Safety and Health Administration (MSHA) the
Company was assessed certain penalties as a result of citations issued by
MSHA.  During January 2000, the Company settled with MSHA and is required to
pay penalties totaling $22,000.  The penalties are to be paid in eight
installments of $2,750 beginning May 1, 2000 and continuing every six months
until paid. The Company still owes $11,000  at February 28, 2002 which has
been accrued for in the accompanying consolidated financial statements.

                                23
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001

NOTE 9 - COMMITMENTS AND CONTINGENCIES (Continued)

Gold Delivery Contracts
-----------------------

The Company entered into four contracts for the advance payment of gold in
1995.  The contracts, which total $166,000, allowed the Company to collect
$141,000, net of commissions.  The contracts called for the Company to deliver
gold, in increments of not less than one troy ounce, beginning six months from
the various purchase dates.  Three of these contracts are all currently due
and outstanding, one is currently being settled as described below.  The
amount accrued as a liability associated with these contracts at February 28,
2002 was $167,927 and was calculated by the ounces due under these contracts
at the February 28, 1997 spot rate as published in the Wall Street Journal.

On February 9, 2000, a case was filed in Superior Court, Maricopa County,
Arizona against the Company.  The Plaintiffs sought $150,000 plus interest as
a result of an alleged breach of contract by the Company.  The litigation was
subsequently settled for $141,500, which has been accrued and is payable as
follows:

1.  $12,000, comprised of $10,000 of principal plus $2,000 for attorney fees
    to be paid upon execution of the release and discharge agreement.
2.  $12,000, comprised of $10,000 of principal plus $2,000 for attorney fees
    to be paid on December 30, 2000.
3.  $10,000 to be paid on June 30, 2001; and
4.  $2,000 per month beginning July 31, 2001 until the total principal amount
    of $137,500 has been paid.

The agreement also required the Company to sign a confession of judgment in
the amount of $150,000 plus 6% interest per year dating back to May 22, 1995.
The judgment will accrue interest at the statutory rate of 10% per year until
paid in full.  Plaintiffs agree that they shall not record the judgment or
attempt to execute on it so long as the Company makes payment pursuant to the
schedule set forth above.

As further security, the amount owed has been secured by a stock pledge in the
amount of 1,000,000 shares of the Company stock held in escrow account.

                                24
<PAGE>

                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 9 - COMMITMENTS AND CONTINGENCIES (Continued)

Former Employee Lawsuit
-----------------------

A former employee filed suit against the Company during 1998 in the United
States District Court for the District of Utah.  The former employee was
injured during his unauthorized use of the Company's equipment.  This matter
was settled for  $110,000 payable as follows:

      1. $35,000 paid in May 2001
      2. $25,000 due each April 15 starting in 2002 through 2004

If the Company defaults, the plaintiff may take a judgment against the Company
in the amount of $250,000, less any payments already made.  As of February 28,
2002,the Company was current in making scheduled payments.  The Company still
owes $75,000 related to this obligation.

Operating/Management Agreement
------------------------------

The Company had contracted with SLC Environmental, LLC (SLC) to manage and
operate all of its mines, mining property and mining claims.  In return for
SLC's services, the Company was to pay all costs incurred by SLC in operating
and managing the mines.  Additionally, the Company was to pay SLC 15% of the
net profit, after taxes, from the operation and management of all projects
managed or operated by SLC for the Company.  The Company terminated the
services of SLC during August 1996.  SLC has claimed the Company owes it
$318,870 as a result of this agreement.  The Company does not agree and plans
to respond vigorously to any legal proceedings, but has accrued this amount as
a contingent liability at February 28, 2002.

Commitments
------------

On October 5, 1998, the company entered into a development agreement with
Guilderbrook, Inc. whereby Guilderbrook, Inc. will jointly provide necessary
financial and management resources to retain the Deer Trail Mine lease
discussed in Note 3 and to provide necessary equipment to put the mine into
productive operation.  For this, Guilderbrook, Inc. will receive 25% of the
net profits from the mine operations subsequent ore sales.

                                25
<PAGE>


                   UNICO, INC. AND SUBSIDIARIES
                  (A Development Stage Company)
          Notes to the Consolidated Financial Statements
                    February 28, 2002 and 2001


NOTE 9 - COMMITMENTS AND CONTINGENCIES (Continued)

Commitments (Continued)
-----------------------

During December 1999, the Company entered into an agreement with Pellett
Investments (Pellett) whereby Pellett agreed to buy a $1,000,000 convertible
note bearing interest at 5% per annum, convertible into ten million
(10,000,000) shares of the Company's common stock at $0.10 per share.

The ten million shares are to be delivered as follows:

1.    The Company shall deliver 2,000,000 shares of common stock to Pellett as
      soon as practical;
2.    Pellett will then forward $200,000 to the Company as soon as practical;
3.    Four subsequent conversions will be done in a duplicate manner as
      described in 1. and 2. above to equal a total conversion of $1,000,000;
      and
4.    An additional 600,000 shares of common stock will be registered in the
      name of Penny Pellett and Forest Minerals, Inc. upon payment of each
      successful round of conversion as follows:
      .   360,000 shares of common stock to Forest Minerals, Inc. and
      .   240,000 shares of common stock to Penny Pellett.


NOTE 10 - DEVELOPMENT STAGE COMPANY

The Company reverted to the status of a startup company during the year ended
February 28, 1998 due to a lack of revenue generation and will be a
development stage company as it commences its planned principal operations of
exploring and developing unpatented lode mining claims.

NOTE 11 - SUBSEQUENT EVENTS

Stock Issuances
---------------

On March 20, 2002, the Company issued 80,000 shares of common stock for $8,000
at $0.10 per share.

On March 20, 2002, the Company issued 25,000 shares of common stock for
services valued at $2,500 at $0.10 per share.

Notes Payable - Related Party
-----------------------------

Subsequent to February 28, 2002, related parties made additional advances to
the Company in the amount of $48,675.


                                26
<PAGE>

Item 8.  Changes in and Disagreements with Accountants on Accounting and
         Financial Disclosure.

     During our two most recent fiscal years ended February 28, 2002, or any
later interim period, Unico has not had a principal independent accountant or
an independent accountant on whom the principal independent accountant
expressed reliance in its report, resign, decline to stand for re-election, or
be dismissed.


                             PART III

Item 9.  Directors, Executive Officers, Promoters and Control Persons;
         Compliance with Section 16(a) of the Exchange Act.

Identification of Directors and Executive Officers
---------------------------------------------------

     The names and ages of all directors and executive officers of Unico and
all persons nominated or chosen to become directors and officers appear in the
table below:

Name                    Age   Position with Unico
--------------------   -----  --------------------
Ray C. Brown            79    Chief executive officer and chairman
                              of board of directors

Kenneth R. Brown        44    President, chief operating officer
                              and director

Kiyoshi Kasai           84    Vice president and director

David F. Poisson        51    Assistant secretary and director

Walter W. Harpst        85    Treasurer and director

C. Wayne Hartle         64    Secretary and director

     Ray C. Brown has been the chief executive officer and director of Unico
since 1983.  He also served as the president of Unico from 1983 until February
2002.  He is presently semi-retired.  Mr. Brown served as the chairman of the
board of directors of Energy and Corrosion Research Corporation from 1979 to
1982.  He also served as president and as a director of Ecotech Corporation
from 1971 to 1983.  Mr. Brown served as president and as a director of Wasatch
Mineral and Construction Company from 1963 to 1971.  He served as president
and as a director of Courtesy Finance Corporation from 1958 to 1963.  Prior to
1958, Mr. Brown served in various capacities with other financial
institutions.  Mr. Brown attended the University of Utah majoring in banking
and finance.  Ray C. Brown is the father of Kenneth R. Brown.
Kenneth R. Brown has served as Unico's chief operating officer and as a
director of Unico since November, 1999.  He has served as president of Unico
since February 2002.  He served as a vice president of Unico from November
1999 until February 2002.  Kenneth R. Brown is currently working as a
broadcast engineer for USA Broadcasting/Univision, a position he has held
since July, 2000.  Prior to working for USA Broadcasting, Mr. Brown worked as
a maintenance engineer for E! Entertainment Television, where he was
responsible for technical management of digital/analog broadcast equipment.
He held that position from December, 1997 to July, 2000.  From 1994 until
December 1997, Mr. Brown worked as a customer services engineer for Utah
Scientific.  He was formally trained in electronic technology at Utah
Technical College.  Kenneth R. Brown is the son of Ray C. Brown.

     Kiyoshi Kasai has served as vice president and as a director of Unico
since 1987.  Mr. Kasai is presently semi-retired.  For over 35 years prior to
1987, Mr. Kasai worked as an engineer for various companies including Hughes
Helicopter, Litton Systems, Inc., Hoffman Electronics Corporation, RCA Service
Company, Convair Astronautics and other companies.  Mr. Kasai attended U.C.
Berkeley and the Illinois Institute of Technology.

     David F. Poisson has been an assistant secretary and director of Unico
since November, 1999.  He is currently a vice President of Axxent Corp., a
position he has held since March, 2000, where he is responsible for sales and
new product installation construction activity surrounding fuel conditioning
systems for diesel-electric and diesel motive power equipment.  He was a
project manager for Gibson Construction of Nevada, a position he held from
June, 1998 until March, 2000.  At Gibson Construction, Mr. Poisson is
responsible for the construction progress and profitability of managing
multiple projects contracted for that company.  From approximately February
1996 until June 1998, Mr. Poisson was a partner and general manager of Aurora
Iron Creations Company, an architectural iron work company.  From 1992 until
late 1995, Mr. Poisson was vice president of North Star Trading Company.  He
has had previous experience in various construction related companies.  He was
previously involved with a family owned coal mine in the Anthracite Region of
Pennsylvania.  He is familiar with the start up associated with the Deer Trail
Mine as it becomes an operational revenue producing mine.

     Walter W. Harpst has been treasurer of Unico since November 1999.  Prior
to that he served as an assistant secretary of Unico since 1983.  Mr. Harpst
has served as a director of Unico from 1983.  Mr. Harpst is presently
semi-retired.  He previously owned and operated a night club and golf course
in Palm Springs, California, and worked for over 40 years in the entertainment
industry as a musician, master of ceremonies and booking agent.

     C. Wayne Hartle has served as the secretary and as a director of Unico
since 1990.  Mr. Hartle owns and operates Wayne's Service Center, an
automobile repair and service business in Salt Lake City, Utah.  Mr. Hartle is
the former chief financial officer of Energy and Corrosion Research Company
from 1979 to 1981.  Mr. Hartle received a degree from Henagers Business
College in Salt Lake City, Utah.

Significant Employees.
----------------------

     Unico has no employees (other than its executive officers) who are
expected to make a significant contribution to Unico's business other than W.
Dan Proctor who presently serves as Unico's project manager.

     W. Dan Proctor, age 49, has served as project manager for Unico since
September 1999.  Mr. Proctor has served as a director and as president of
-Silver Bell Mining Company, Incorporated since 1993.  Silver Bell Mining
Company, Incorporated has been a wholly-owned subsidiary of Unico since
December 2001.  From 1994 until August 1999, Mr. Proctor was Chief Geologist
for Clifton Mining Company and American Consolidated Mining Company of Alpine,
Utah.  He also worked as an independent geological and mining consultant for
the same period.  From 1985 to 1994 he was a geologist with Centurion Mines of
Salt Lake City, Utah.  He is a Certified MSHA safety instructor.  He has
worked in the mining industry for over 20 years.

Family Relationships.
---------------------

     Ray C. Brown is the father of Kenneth R. Brown.  There are no other
family relationships between any directors or executive officers of Unico,
either by blood or by marriage.

Involvement in Certain Legal Proceedings.
-----------------------------------------

     During the past five years, no present or former director, executive
officer or person nominated to become a director or an executive officer of
Unico:

     (1) was a general partner or executive officer of any business against
     which any bankruptcy petition was filed, either at the time of the
     bankruptcy or two years prior to that time;

     (2) was convicted in a criminal proceeding or named subject to a pending
     criminal proceeding (excluding traffic violations and other minor
     offenses);

     (3) was subject to any order, judgment or decree, not subsequently
     reversed, suspended or vacated, of any court of competent jurisdiction,
     permanently or temporarily enjoining, barring, suspending or otherwise
     limiting his involvement in any type of business, securities or banking
     activities; or

     (4) was found by a court of competent jurisdiction (in a civil action),
     the Securities and Exchange Commission or the Commodity Futures Trading
     Commission to have violated a federal or state securities or commodities
     law, and the judgment has not been reversed, suspended or vacated.


Section 16(a) Beneficial Ownership Reporting Compliance
-------------------------------------------------------

     Section 16(a) of the Securities Exchange Act of 1934 requires Unico's
executive officers and directors, and persons who own more than ten percent
(10%) of a registered class of Unico's equity securities, to file an initial
report of ownership on Form 3 and changes in ownership on Form 4 or 5 with the
Securities and Exchange Commission (the "SEC").  Such officers, directors and
ten percent (10%) shareholders are also required by the SEC rules to furnish
Unico with copies of all Section 16(a) forms they file.

     Based solely on its review of the copies of such forms received by it, or
written representations from certain reporting persons that no Forms 5 were
required for such persons, Unico believes that its executive officers,
directors and ten percent (10%) shareholders complied with all Section 16(a)
filing requirements applicable to them through the fiscal year ended February
28, 2002.

Item 10. Executive Compensation.

Cash Compensation
-----------------

     The following table describes compensation paid to Ray C. Brown as
Unico's chief executive officer as well as annual compensation of $100,000 or
more paid to any executive officer or director of Unico for services rendered
to Unico for the years ended February 29, 2000, February 28, 2001 and February
28, 2002:

                              Year ended
                              February
Name and principal position   28 or 29     Salary      Bonus
---------------------------   --------     ------      ------
Ray C. Brown
  President and director         2002       $-0-       $-0-
                                 2001       $-0-       $-0-
                                 2000       $-0-       $-0-

     Ray C. Brown was not paid any cash compensation during the years ended
February 29, 2000, February 28, 2001 and February 28, 2002.  Mr. Brown has
received the use of an automobile owned by Unico during the last three fiscal
years.

     No officer or director of Unico has received total compensation of
$100,000 or more during any of the last three fiscal years of Unico.  None of
our officers or directors has received any stock awards, options or warrants
to purchase any shares of Unico common stock during any of the past three
fiscal years.

     Except as stated below, no cash compensation, deferred compensation or
long-term incentive plan awards were issued or granted to Unico's management
during the fiscal years ended February 28, 2002 and February 28, 2001.
Further, no member of Unico's management has been granted any option or stock
appreciation rights.  Accordingly, no tables relating to such items have been
included within this Item.

     There are no plans whereby Unico would issue any of its securities to
management, promoters, their affiliates or associates in consideration of
services rendered or otherwise.

Compensation of Directors.
-------------------------

     Unico has no arrangement for compensating its directors.

Employment Contracts and Termination of Employment and Change-in-Control
------------------------------------------------------------------------
Arrangements.
-------------

     There are no employment contracts, compensatory plans or arrangements,
including payments to be received from Unico, with respect to any director or
executive officer of Unico which would in any way result in payments to any
such person because of his or her resignation, retirement or other termination
of employment with Unico or its subsidiaries, any change in control of Unico,
or a change in the person's responsibilities following a change in control of
Unico.

     Nor are there any agreements or understandings for any director or
executive officer to resign at the request of another person; none of Unico's
directors or executive officers is acting on behalf of or will act at the
direction of any other person.

Stock option plan.
-----------------

     Unico has not adopted any stock option plan at this time.  We reserve the
right to adopt a broad stock plan for officers, directors, employees and
consultants in the future.

Retirement plan.
---------------

     Unico has not adopted any retirement plan at this time.  However, we may
establish a retirement plan for officers, directors and employees in the
future.

Health insurance plan.
---------------------

     Unico presently offers no health insurance benefit plans to its officers,
directors or employees.  We reserve the right to offer health insurance
coverage in the future.



Item 11. Security Ownership of Certain Beneficial Owners and Management.


     The following table describes, as of May 21, 2002, certain information
with respect to the beneficial ownership of our common stock by:

    o     each person known by us to beneficially own more than 5% of our
          common stock,

    o     each of our executive officers or directors, and

    o     all of our executive officers and directors as a group.


                           Amount and nature       Percentage of
                        of beneficial ownership    common stock
                        ------------------------   -------------
Ray C. Brown                   9,000,000              12.49%
Gilbert A. Windheim            5,136,000               7.03%
C. Wayne Hartle                2,280,900               3.17%
Kiyoshi Kasai                    693,000               0.96%
Kenneth R. Brown                     -0-               0.00%
David F. Poisson                 280,000               0.39%
Walter W. Harpst                 500,000               0.69%

     Each of the executive officers and directors has sole voting and
investment power over the shares listed in the table as being beneficially
owned by him except:

    o     The amount listed as being beneficially owned by Ray C. Brown
          includes 5,000,000 shares which he owns jointly with his wife,
          Carryl W. Brown, and excludes an additional 45,000 shares as to
          which Mr. Brown disclaims ownership.

    o     Of the shares listed as being beneficially owned by Gilbert A.
          Windheim, 1,900,000 shares are held of record by Mr. Windheim,
          2,236,000 shares are reportedly held by Mr. Windheim through stock
          brokerage accounts in his name, and the remaining 1,000,000 shares
          are subject to an option granted by Unico on August 28, 1997.  The
          option is exercisable by Mr. Windheim in whole or in part at any
          time prior to August 28, 2002 at the exercise price of $0.10 per
          share.

    o     40,000 of the shares listed as being beneficially owned by Kiyoshi
          Kasai are owned of record by his wife, Fumiko Kasai

    o     150,000 of the shares listed as being beneficially owned by Kiyoshi
          Kasai are owned of record by the Kasai Family Trust. Kiyoshi Kasai
          is the trustee of the Kasai Family Trust, and has sole voting and
          investment power over the shares held by the Trust.  The
          beneficiaries of the Kasai Family Trust are Kiyoshi Kasai, his wife
          and their children.

    o     All 280,000 shares listed as being beneficially owned by David F.
          Poisson are owned of record by Aurora Resources and Mining Co., a
          privately held company owned by Mr. Poisson and his wife.  Mr.
          Poisson is president of Aurora Resources and Mining Co., and he has
          sole voting and investment power over these shares.

There are no warrants or options outstanding which are exercisable by any of
our officers and directors.

Changes in Control.
-------------------

     There are no present arrangements or pledges of Unico's securities which
may result in a change in control of Unico.

Item 12. Certain Relationships and Related Transactions.

Transactions with Management and Others.
----------------------------------------

     Since March 1, 2000, Unico has entered into the following significant
related party transactions:

     1.  Unico has received advances from three related parties; C. Wayne
Hartle, Ray C. Brown and Mr. Brown's mother-in-law, Maxine Worthen.  Most of
these were entered into prior to March 1, 2000, but are still outstanding.
However, the amounts owing to C. Wayne Hartle and Ray C. Brown have been
increased and reduced from time to time as additional advances are made or as
the balances are paid down.  As of February 28, 2002, Unico owed the following
principal amounts described below to the following related parties:

    o     $522,076 to Ray C. Brown.

    o     $17,513 to C. Wayne Hartle.

    o     $ 5,000 to Maxine Worthen.

Unico has accrued interest on the advances at 10% per annum.  The advances are
due upon demand.  During the fiscal year ended February 28, 2002, Ray C. Brown
increased the principal balance of his loans to Unico by $139,123 and C. Wayne
Hartle loaned an additional $17,513.  During the fiscal years ended February
28, 2001 and 2002, Unico paid $15,000 and $3,680, respectively, of accrued
interest to Ray C. Brown.

    2. On October 10, 2000, Unico issued a total of 5,000,000 shares jointly
to Ray C. Brown and his wife, Carryl W. Brown, in exchange for which Mr. Brown
reduced the amount Unico owes him by $700,000.  The shares were valued at
$0.14 per share which was the trading price of the stock on the date of issue.

    3.  On August 3, 2001, Unico issued 908,900 shares of its common stock to
C. Wayne Hartle, in exchange for which Mr. Hartle reduced the amount Unico
owes him by $144,068.  The shares were valued at approximately $0.159 per
share.

Transactions with Promoters.
---------------------------

     There have been no material transactions, series of similar transactions,
currently proposed transactions, or series of similar transactions, to which
Unico or any of its subsidiaries was or is to be a party, in which the amount
involved exceeded $60,000 and in which any promoter or founder, or any member
of the immediate family of any of the foregoing persons, had a material
interest.

Item 13. Exhibits and Reports on Form 8-K.

Exhibits
---------

     Exhibit
     Number       Description
     --------     ------------

      3.1         Articles of incorporation
      3.2         Amendment to articles of incorporation, dated
                  November 8, 1967
      3.3         Amendment to articles of incorporation, dated
                  December 6, 1972
      3.4         Amendment to articles of incorporation, dated
                  May 29, 1973
      3.5         Amendment to articles of incorporation, dated
                  December 1, 1979
      3.6         Amendment to articles of incorporation, dated
                  May 12, 1992
      3.7         Amendment to articles of incorporation, dated
                  November, 1999
      3.8         By-laws
      3.9         Board of directors' resolution amending Unico's
                  by-laws, dated April 1, 1992
     10.1         Mining Lease and Option to Purchase dated March
                  20, 1992
     10.2         Deer Trail Mine Development Agreement dated
                  October 5, 1998
     10.3         Sales Agreement (for purchase of real estate)
     10.4         Mining Lease and Option to Purchase (Deer Trail
                  Mine) dated December 1, 2001  - TO BE FILED BY AMENDMENT
     10.5         Mining Lease and Option to Purchase (Bromide
                  Basin Mine) dated July 20, 2001 -TO BE FILED BY AMENDMENT


          *    Summaries of all exhibits contained within this
               report are modified in their entirety by reference
               to these Exhibits.

Reports on Form 8-K
-------------------

Unico filed no reports on Form 8-K during the last quarter of the period
covered by this report.

                            SIGNATURES

     In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                 UNICO, INCORPORATED


                                     /s/ Ray C. Brown
Date: May 29, 2002                By ______________________________________
                                     Ray C. Brown, Director & Chief Executive
                                     Officer


     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.



                                   /s/ Ray C. Brown
Date: May 29, 2002              By _______________________________________
                                   Ray C. Brown, Director, Chief Executive
                                   Officer, Chief Financial Officer and Chief
                                   Accounting Officer


Date: May __, 2002              By _____________________________________
                                   Kiyoshi Kasai, Director


                                   /s/ Kenneth R. Brown
Date: May 29, 2002              By _____________________________________
                                   Kenneth R. Brown, Director


                                   /s/ David F. Poisson
Date: May 29, 2002              By _____________________________________
                                   David F. Poisson, Director



Date: May __, 2002              By _____________________________________
                                   Walter W. Harpst, Director



                                   /s/ C. Wayne Hartle
Date: May 28, 2002              By _____________________________________
                                   C. Wayne Hartle, Director


                          EXHIBIT INDEX


Exhibit               Exhibit
Number            Description                                 Location
--------       -----------------------                        ---------
   3.1         Articles of incorporation                         *
   3.2         Amendment to articles of incorporation,           *
               dated November 8, 1967
   3.3         Amendment to articles of incorporation,           *
               dated December 6, 1972
   3.4         Amendment to articles of incorporation,           *
               dated May 29, 1973
   3.5         Amendment to articles of incorporation,           *
               dated December 1, 1979
   3.6         Amendment to articles of incorporation,           *
               dated May 12, 1992
   3.7         Amendment to articles of incorporation,           *
               dated November, 1999
   3.8         By-laws                                           *
   3.9         Board of directors' resolution amending           *
               Unico's by-laws, dated April 1, 1992
  10.1         Mining Lease and Option to Purchase               *
               dated March 20, 1992
  10.2         Deer Trail Mine Development Agreement             *
               dated October 5, 1998
  10.3         Sales Agreement (for purchase of real       Incorporated by
               estate)                                     Reference from
                                                           Form 8-K filed
                                                           September 1, 2000

  10.4         Mining Lease and Option to Purchase         To be filed by
               (Deer Trail Mine) dated December 1, 2001    Amendment

  10.5         Mining Lease and Option to Purchase         To be filed
               (Bromide Basin Mine) dated July 20, 2001    By amendment

         *    Summaries of all exhibits contained within this
              Report are modified in their entirety by reference
              to these Exhibits which are incorporated by
              reference from Unico's Registration Statement on
              Form 10-SB filed on April 6, 2000.