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


                                   FORM 10-KSB

              ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001

                        COMMISSION FILE NUMBER: 333-47090


                               VEQUITY CORPORATION
                 ----------------------------------------------
                 (Name of Small Business Issuer in its Charter)


             Colorado                                            84-1325018
 -------------------------------                             -------------------
 (State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                              Identification no.)


                                 Thomas H. Moore
                                    President
                       2305 East Arapahoe Road, Suite 220
                            Littleton, Colorado 80122
                                 (303) 798-4668
           ----------------------------------------------------------
          (Address of principal executive offices, including zip code)


                                      None
                    ----------------------------------------
                    (Former name, former address, and former
                   Fiscal Year, if changed since last report)


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

              None                                             None
     ---------------------                           ----------------------
     (Title of Each Class)                           (Name of Each Exchange
                                                      on which Registered)

<PAGE>


               Securities registered pursuant to 12(g) of the Act:

                     Common Stock, par value $.001 per share
                     ---------------------------------------
                                (Title of Class)

Check whether the Issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the Issuer was required to file such
reports) and (2) has been subject to such filing requirements for the past 90
days.

[X] Yes   [ ] No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-B is not contained herein, and will not be contained, to the
best of Issuer'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: $-0-

The aggregate market value of the Registrant's voting stock held by
non-affiliates, based upon the closing sales price for the common stock of $-0-
per share on December 31, 2001 was $-0-.

                          ----------------------------

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

Shares of common stock outstanding as of December 31, 2001: 41,055,000

                          ----------------------------

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

[ ] Yes   [ ] No







                                       2
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                            PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

                                  VEQUITY CORPORATION
                             (A Development Stage Company)

                                     BALANCE SHEET
                                      (Unaudited)
                                                                            December 31,
                                                                                2001
                                                                            -----------
                                        ASSETS
                                        ------
<S>                                                                         <C>

EQUIPMENT AND FURNITURE, net                                                $    13,248

OTHER ASSETS:
     Receivable from officers                                                   290,208
     Deferred offering costs                                                    128,366
                                                                            -----------

TOTAL ASSETS                                                                $   431,822
                                                                            ===========

                         LIABILITIES AND SHAREHOLDERS' DEFICIT
                         -------------------------------------

CURRENT LIABILITIES:
    Bank overdraft                                                          $     5,317
    Accounts payable                                                            238,000
    Accrued consulting expenses                                                 558,309
    Accrued interest and other expenses                                         108,130
    Notes payable, related parties                                              279,790
    Preferred stock dividends payable                                           262,000
                                                                            -----------
         Total current liabilities                                            1,481,546

Redeemable preferred stock, $.001 par value, 5,000,000 shares authorized,
    liquidation preference $1.00 per share:
         Series A, 200,000 shares issued and outstanding                        200,000
         Series B, 806,469 shares issued and outstanding                        584,474

COMMITMENTS (Note 4)

SHAREHOLDERS' DEFICIT:
    Common stock, $.001 par value; 100,000,000 shares authorized,
         41,055,000 shares issued and outstanding                                41,055
    Subscriptions receivable                                                    (64,800)
    Additional paid-in capital                                                5,408,790
    Deficit accumulated during the development stage                         (7,219,243)
                                                                            -----------
         Total shareholders' deficit                                         (1,834,198)
                                                                            -----------

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT                                 $   431,822
                                                                            ===========


                 See accompanying notes to these financial statements.

                                          3
<PAGE>


                                    VEQUITY CORPORATION
                               (A Development Stage Company)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                                                                           CUMULATIVE FROM
                                                                             NOVEMBER 14,
                                            FOR THE THREE   FOR THE TWELVE       1995
                                             MONTHS ENDED    MONTHS ENDED     (INCEPTION)
                                             DECEMBER 31,    DECEMBER 31,   TO DECEMBER 31,
                                                 2001            2001            2001
                                             ------------    ------------    ------------

OPERATING EXPENSES:
    General and administrative               $     31,686    $    350,122    $  3,544,077
                                             ------------    ------------    ------------

LOSS FROM OPERATIONS                              (31,686)       (350,122)     (3,944,077)

INTEREST EXPENSE, net                               8,673          33,667       1,318,517
                                             ------------    ------------    ------------

NET LOSS                                          (40,359)       (383,789)     (5,262,594)
                                             ------------    ------------    ------------

PREFERRED STOCK DIVIDENDS
    Accrued                                       (18,500)       (111,750)       (262,000)
    Paid in common stock                             --              --        (1,250,000)
    Imputed                                          --          (122,195)       (444,649)
                                             ------------    ------------    ------------
                                                  (18,500)       (233,945)     (1,956,649)
                                             ------------    ------------    ------------

NET LOSS APPLICABLE TO COMMON SHAREHOLDERS   $    (58,859)   $   (617,734)   $ (7,219,243)
                                             ============    ============    ============

NET LOSS PER COMMON SHARE:
    Basic and diluted                        $       (.01)   $       (.01)
                                             ============    ============

WEIGHTED AVERAGE COMMON SHARE OUTSTANDING:
    Basic and diluted                          40,974,000      40,974,000
                                             ============    ============


                   See accompanying notes to these financial statements.

                                             4
<PAGE>


                               VEQUITY CORPORATION
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                                       CUMULATIVE
                                                                    FROM NOVEMBER 14,
                                                      FOR THE TWELVE      1995
                                                       MONTHS ENDED   (INCEPTION)
                                                       DECEMBER 31,  TO DECEMBER 31,
                                                           2001           2001
                                                       -----------    -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                           $  (383,789)   $(5,262,594)
    Adjustments to reconcile net loss to net cash
        from operating activities:
         Depreciation and amortization                       3,271         18,565
         Interest expense paid by stock                       --        1,460,569
         Stock for services                                   --        1,659,256
         Stock issued as donation                             --           75,000
         Stock issued for payment of expenses               25,000         25,000
         Changes in assets and liabilities:
             (Increase) decrease in:
                  Other assets                                --             --
             Increase (decrease) in:
                  Bank overdraft                             5,317          5,317
                  Accounts payable                         107,821        238,000
                  Accrued expenses                         187,797        717,353
                                                       -----------    -----------
        Net cash used in operating activities              (54,583)    (1,063,534)
                                                       -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Increase in note receivables                           (85,708)      (290,208)
    Purchase of equipment and furniture                       (194)       (31,813)
                                                       -----------    -----------
        Net cash used in investing activities              (85,902)      (322,021)
                                                       -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from common stock                              15,750        820,628
    Proceeds from preferred stock                           15,750        269,766
    Costs of public offering                                  --         (128,366)
    Advances under related party notes                      88,071        720,680
    Payments of related party notes                           --         (297,153)
                                                       -----------    -----------
        Net cash provided by financing activities          119,571      1,385,555
                                                       -----------    -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS       (20,914)          --
CASH AND CASH EQUIVALENTS, beginning of period              20,914           --
                                                       -----------    -----------
CASH AND CASH EQUIVALENTS, end of period               $      --      $      --
                                                       ===========    ===========


              See accompanying notes to these financial statements.

                                       5
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<PAGE>

                               VEQUITY CORPORATION
                          (A Development Stage Company)

                    NOTES TO FINANCIAL STATEMENTS (Unaudited)

1.   BASIS OF PRESENTATION:
     ----------------------

     The accompanying unaudited financial statements of Vequity Corporation have
     been prepared in accordance with generally accepted accounting principles
     for interim financial information and with the instructions to Form 10-KSB
     and Regulation S-B. Accordingly, they do not include all of the information
     and footnotes required by generally accepted accounting principles for
     complete financial statements. Management believes that the financial
     statements include all adjustments (consisting of normal recurring
     accruals) necessary in order to make the financial statements not
     misleading. Operating results for the three and twelve month periods ended
     December 31, 2001 are not necessarily indicative of the results that may be
     expected in the future. These statements should be read in conjunction with
     the financial statements and related notes contained in the Company's
     latest Form SB-2/A which includes audited financial statements for the
     years ended December 31, 2000 and 1999.


2.   NOTES PAYABLE, RELATED PARTIES:
     -------------------------------

     During the twelve months ended December 31, 2001 the Company borrowed
     $75,000 under a non-interest bearing note agreement and $1,685 from a
     stockholder. Additionally, as of December 31, 2001, the Company had several
     notes payable to various stockholders with outstanding balances of
     $170,805. The majority of these notes were in default at December 31, 2001.
     Interest was paid in stock at the time the notes were signed, with
     additional stock paid as default interest. The weighted average interest
     rate of the notes is 13.73%. Interest expense was based on the value of the
     stock at the time of the transaction.


3.   COMMITMENTS AND CONTINGENCIES:
     ------------------------------

     Accrued Consulting Expense - Due to limited working capital of the Company,
     all of the Company's employees agreed with the Company's Board of Directors
     to defer their salary until the Company obtains funding through public or
     private offering. As of December 31, 2001, a total of $558,309 was accrued
     and unpaid.

     Enhancements and Co-Branding Agreement - The Company entered into an
     agreement with InfoSpace.com, Inc., (InfoSpace), an existing internet
     directory system and search engine. The term of the agreement was from
     August 1999 through August 2001, renewable automatically for successive
     one-year terms unless terminated by either party. As of October 2001,
     InfoSpace terminated the agreement. Additionally, we owe $81,000 for past
     services.

     Software Agreement - The Company settled a lawsuit in 1999 with a software
     service provider whereby the Company was obligated to pay the provider
     $20,000 over two years. During 2000, $8,000 of this obligation was paid,
     and the remaining $12,000 was to be paid prior to September 30, 2001. The
     Company defaulted on the final payment of $12,000, and per the terms of the
     settlement agreement, has accrued an additional $17,375 as payable to the
     software provider.

                                        6
<PAGE>


                               VEQUITY CORPORATION
                          (A Development Stage Company)

                    NOTES TO FINANCIAL STATEMENTS (Unaudited)

4.   PREFERRED STOCK:
     ----------------

     The Board of Directors has the authority to designate and issue preferred
     stock and to designate the rights, privileges and preferences of each class
     of preferred stock.

     o    In 1997 and 1998, the Company issued a total of 200,000 shares of
          Series A Senior Redeemable and Convertible Preferred Stock (Series A
          Preferred) and 1,338,000 shares of common stock for proceeds of
          $200,000. The cash proceeds were allocated to preferred and common
          shares based upon their relative fair values. The Series A Preferred
          is redeemable at $1.00 per share and was originally scheduled to be
          redeemed by the Company on or before January 1, 1999. Because the
          redemption did not occur as scheduled, in April and May 2000, the
          Company entered into a settlement agreement with the holders whereby
          the Company issued a total of 2,500,000 shares of common stock and
          agreed to make cash payments totaling $225,000 on or before June 15,
          2001. The $225,000 cash payment was fully accrued at September 30,
          2001 but has not yet been paid as of December 31, 2001.

     During the twelve months ended December 31, 2001, the Company issued the
     following Series B Redeemable and Convertible Stock (Series B Preferred):

     o    31,500 shares for cash of $31,500. The Company also issued 63,000
          shares of common stock in conjunction with this offering. The cash
          proceeds were allocated to the preferred and common shares based on
          their relative fair values.

     o    25,000 shares in exchange for $25,000 of expenses paid on behalf of
          the Company. The Company also issued 100,000 shares of common stock in
          conjunction with the preferred shares. The total value of the
          transaction was allocated to the preferred and common shares based on
          their relative fair values.

                                       7
<PAGE>


                               VEQUITY CORPORATION
                          (A Development Stage Company)

                    NOTES TO FINANCIAL STATEMENTS (Unaudited)

     The Series B Preferred is redeemable and convertible at the sole discretion
     of the Company, under one of the following options:

     o    Option One - The Company will redeem the Series B Preferred for a cash
          payment of $1.00 per share, within two years of the date of purchase.
          If the cash payment is not made when due, a penalty of $0.05 per share
          per month will accrue, up to a maximum penalty of $1.00 per share. In
          addition, the Company will issue to the holder two to five shares of
          common stock for each share of Series B Preferred purchased. The
          number of shares of common stock to be issued is dependent upon the
          amount of the shareholder's investment. These shares were issued along
          with the preferred stock as the Company intends to exercise this
          option.

     o    Option Two - The Company may redeem and convert the Series B Preferred
          shares for no cash and seven common shares (including the shares
          already issued) for each preferred share.

     The Company intends to exercise Option One, therefore the Series B
     Preferred shares have been classified outside of the stockholders' equity
     section of the accompanying balance sheet. The carrying value of the
     Preferred Stock is being accreted to its cash redemption price of $1.00 per
     share.


5.   RECEIVABLE FROM OFFICERS:
     -------------------------

     The Company advanced an additional $85,708 to several officers of the
     Company during the twelve months ended December 31, 2001. The total amount
     recorded as receivable from stockholders was $290,208 December 31, 2001.
     The loans are expected to be repaid once operations of the Company have
     commenced.


6.   LIQUIDITY:
     ----------

     The Company has incurred losses of approximately $7,200,000 through
     December 31, 2001, has current liabilities in excess of current assets of
     approximately $1,400,000 and a shareholders' deficit of approximately
     $1,800,000 at December 31, 2001. These factors raise substantial doubt
     about the Company's ability to continue as a going concern. Management's
     plans include the simultaneous generation of advertising and Website
     development revenues and equity financing through its business model.


                              Financial Statements
                            For the Three Months and
                        12 Months Ended December 31, 2001


                                       8
<PAGE>


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

     We are a development stage company with no operating history. We have had
very limited revenues from operations since our beginning as a company. From
inception to date, our efforts have been directed to fund raising, the
development of our concept of centralizing business websites into a single
Internet yellow page type directory and to establishing strategic alliances. Our
business concept is intended to provide an Internet presence for our advertisers
that will effectively promote their businesses.

     We do not have relevant financial operating data that will provide a basis
for evaluating our proposed business or prospects. Our plan of operation for the
next twelve months is designed to build a platform of advertisers and investors
through public presentations and through the offering of shares through our
Registration Statement and Prospectus that became effective on July 9, 2001. As
of the date of this report no shares offered by the Prospectus have been sold.

     This discussion of our financial condition and plan for future operations
should be read in conjunction with the financial statements and related notes to
the financial statements included herein. This discussion is based upon
forward-looking statements and plans that involve risks and uncertainties. Our
actual experience may differ materially from those anticipated in our
forward-looking plans and concepts as a result of numerous factors, including
those set forth set forth under "RISK FACTORS" in our Prospectus effective July
9, 2001.

Plan of Operations for the Next Twelve Months

     A critical aspect of our prior plans was to move forward with an
Enhancements and Co-branding Agreement with InfoSpace.com, Inc., an information
resource and search engine already established on the Internet. However,
InfoSpace established a new business strategy for its yellow page business and
as a result, terminated all past agreements with companies, including ours. Our
current strategy is to utilize similar yellow page services that are provided by
Verizon, whereby we will sell listings in the Verizon network of yellow page
directories.

     We do not have current cash adequate to carry out any operations. We are
dependent upon our ability to obtain loans and/or to sell shares pursuant to our
stock offering if we are to be able to implement our plan and establish business
operations. Without additional capital in the form of loans or stock sales, we
will not have funds to carry on a marketing effort and to establish operations
in the future.

     If we are able to attract capital through loans or stock sales we intend to
implement the first phase of our plan by advertising via direct mail, radio and
newspapers to invite prospective website advertisers and Investortisers(R) to
attend public presentations where they may learn of our concepts and plans. We
intend to conduct the first of these presentations in Denver, Colorado and then
to expand to other major U.S. cities if funds are available. The number of
presentations and the pace at which we are able to proceed will depend entirely
upon our ability to attract additional capital. At the present time we do not
have sufficient resources to carry out our plan for public presentations.

     If we are unsuccessful in attracting additional capital, it is likely we
would not be able to proceed or establish our business.

     Obviously, the plan we intend to pursue presents major challenges for the
next twelve months and beyond. We will need to simultaneously proceed down the
paths of attracting advertisers and investors through sales and marketing
efforts while developing the ability to create links from numerous online yellow
page directories to the websites of our advertisers. Additional challenges
include: achieving name recognition and branding; hiring and establishing a
management team in the next twelve months to proceed with our plan; and bringing
in the right employees at the right pace. Our management believes that the
rewards of successful implementation of our plan can be substantial, but also
realizes the high risks inherent in attempting to establish this enterprise. We
do not currently have the funds necessary to proceed with our plans and are
dependent upon obtaining additional capital.

                                       9
<PAGE>


Item 3. Quantitative and Qualitative Disclosures About Market Risk.

     The company has not entered into any market risk sensitive instruments for
trading purposes or for purposes other than for trading.

                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

     On June 20, 2000 the company entered into a stipulation to settle a lawsuit
with Excalibur Technologies Corporation. The suit, filed in the District Court
for the County of Arapahoe, State of Colorado, Case number 99CV3768, claimed
that Vequity Corporation owed Excalibur the sum of $37,375.00 for computer
technology. On June 30, 2001, the company defaulted on a $12,000.00 payment due
to Excalibur and Excalibur has taken a judgment against the company for an
amount of $29,375.00.

Item 2. Changes in Securities and Use of Proceeds.

     There have been no changes in the instruments defining the rights of the
holders of any class of stock of the company. No rights evidenced by any class
of securities of the company have been limited or qualified by the issuance or
modification of any other class of securities. No securities have been issued in
the quarter ended December 31, 2001.

Item 3. Defaults Upon Senior Securities.

     None.

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

     None

Item 5. Other Information.

     None.

Item 6. Exhibits and Reports on Form 8-K.

     None.

                                   Signatures

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

                                             VEQUITY CORPORATION


Date: March 27, 2002                         By:  /s/ Thomas H. Moore
                                             -----------------------------------
                                             Thomas H. Moore, President


                                       10