**UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION**
  Washington, D.C. 20549

FORM 10-KSB

(Mark One)

 ̈ ANNUAL REPORT
    UNDER SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934 x TRANSITION REPORT UNDER SECTION
    13 OR 15(d) OF THE EXCHANGE
    ACT OF 1934 For the transition period from January 1, 2001 to September 30, 2001


COMMISSION FILE NUMBER: 000-31639

K-TRONIK INTERNATIONAL CORP.(Name of small business issuer in its charter)

|Nevada                                                               | 88-0436364                       
|-------------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation
      or organization) | (IRS Employer Identification No.)

|290 Vincent Avenue, 3rdfloor, Hackensack, New
      Jersey | 07601     
|---------------------------------------------------------- | ----------
|(Address of principal executive offices)                   | (Zip Code)

(201) 488-4600(Registrants telephone number)

LMC Capital Corp.
  Suite 2602  1111 Beach Ave Vancouver, BC Canada V6E 1T9Former Fiscal Year ending December 31(Former name, former address and former fiscal year, if changed
  since last report)

Securities registered pursuant to Section 12(b) of the Exchange
  Act: None

None(Title of class)

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

Common Stock, $0.00001 Par Value

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

---

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

The issuer had revenues of $0 for the transition period ended
  September 30, 2001.

Of the 4,500,000 shares of voting stock of the registrant issued
  and outstanding as of September 30, 2001, 1,500,000 shares were held by affiliates
  and 3,000,000 were held by non-affiliates. Because of the absence of an established
  trading market for the voting stock, the registrant is unable to calculate the
  aggregate market value of the voting stock held by non-affiliates as of a specified
  date within the past 60 days.

Transitional Small Business Disclosure Format (check one)    Yes
   ̈     
  No x

---

FORM 10-KSB ANNUAL REPORTFOR THE TRANSITIONAL NINE MONTH PERIOD ENDED SEPTEMBER 30, 2001
  K-TRONIK INTERNATIONAL CORPORATION(Formerly LMC CAPITAL CORP.)

TABLE OF CONTENTS

|Item     |                                                                                                                      
|-------- | ---------------------------------------------------------------------------------------------------------------------
|         |                                                                                                                      
|PART I   |                                                                                                                      
|         |                                                                                                                      
|Item 1   | Description of Business                                                                                              
|Item 2   | Description of Property                                                                                              
|Item 3   | Legal Proceedings                                                                                                    
|Item 4   | Submission of Matters to a Vote of Security Holders                                                                  
|         |                                                                                                                      
|PART II  |                                                                                                                      
|         |                                                                                                                      
|Item 5   | Market for Common Equity and Related Stockholder Matters                                                             
|Item 6   | Managements Discussion and Analysis or Plan of Operation                                                            
|Item 7   | Financial Statements                                                                                                 
|Item 8   | Changes in and Disagreements With Accountants on Accounting and Financial
      Disclosure                           
|         |                                                                                                                      
|PART III |                                                                                                                      
|         |                                                                                                                      
|Item 9   | Directors, Executive Officers, Promoters and Control Persons; Compliance
      with Section 16(a) of the Exchange Act
|Item 10  | Executive Compensation                                                                                               
|Item 11  | Security Ownership of Certain Beneficial Owners and Management                                                       
|Item 12  | Certain Relationships and Related Transactions                                                                       
|Item 13  | Exhibits and Reports on Form 8-K                                                                                     
|Item 14  | Controls and Procedures                                                                                              

Forward Looking Statements

This report contains forward-looking statements. The forward-looking
  statements include all statements that are not statements of historical fact.
  The forward-looking statements are often identifiable by their use of words
  such as may, expect, believe, anticipate
  intend, could, estimate, or continue,
  or the negative or other variations of these terms or comparable terms. Our
  actual results could differ materially from the anticipated results described
  in the forward-looking statements. Factors that could affect our results include,
  but are not limited to, those discussed in Item 6, Managements Discussion
  and Analysis or Plan of Operation and include elsewhere in this report.

---

PART I

Item 1.        Description of Business

Company History and Business

The Company was incorporated on September 2, 1999 in the State
  of Nevada as LMC Capital Corp. and was organized for the purpose of creating
  a corporate vehicle to locate and acquire an operating business. On December
  12, 2001 the Company changed its name to K-Tronik International Corp. (KTI
  or the Company). On September 28, 2000, KTI completed a Form 10-SB
  registration with the United States Securities and Exchange Commission and as
  a result is subject to the regulations governing reporting issuers in the United
  States.

As of September 30, 2001, the Company had no active business.

The Company had no active business until it closed its acquisition
  of K-Tronik International Corp. on December 12, 2001 the details and description
  of which were disclosed on Securities Exchange Act of 1934 filings subsequent
  to December 12, 2001.

Employees

At September 30, 2001, the Company had no employees.

Item 2.        Description
  of Property

The Company did not own any property or equipment or have
  any leased premises as of September 30, 2001. The Companys office for
  business purposes was located in the offices of one of its directors, Christopher
  D. Farber, at Suite 2602  1111 Beach Ave, Vancouver, British Columbia,
  Canada V6E 1T9.

Item 3.        Legal
  Proceedings

The Company was not, as of September 30, 2001, and is not,
  a party to any litigation and has no knowledge of any threatened or pending
  litigation against it.

Item 4.        Submission
  of Matters To A Vote of Security Holders

No matters were submitted to a vote of security holders during
  transitional period ended September 30, 2001.

PART II

Item 5.        Market
  for Common Equity and Related Stockholder Matters

Market for Common Stock

There is no public trading market for our common shares in
  the United States or elsewhere.

Holders of Common Stock

On September 30, 2001, there were approximately 30 holders
  of record of our common stock and 4,500,000 common shares outstanding. There
  were no indirect holdings of registered shares to outside institutions or stock
  brokerage firms.

---

There were no outstanding options or warrants to purchase,
  or securities convertible into our common stock although the shareholders
  at a meeting held on November 12, 2001, subsequent to the period end date for
  this report, shareholders approved an Incentive Stock Option Plan (under which
  no options have yet been granted) which would allow us to grant up to 1,000,000
  incentive stock options to directors and employees at the board of directors
  discretion.

Dividends

We have not declared or paid a cash dividend to stockholders
  since our incorporation. The Board of Directors presently intends to retain
  any earnings to finance company operations and does not expect to authorize
  cash dividends in the foreseeable future. Any payment of cash dividends in the
  future will depend upon our earnings, capital requirements and other factors.

Recent Sales of Unregistered Securities

There were no sales of unregistered securities during the
  nine months ending September 30, 2001.

From inception to September 30, 2001, the Company had issued
  a total of 4,500,000 shares of common stock, 3,000,000 of which were issued
  under the exemption from registration provided by Regulation S to a total of
  27 persons, all of whom are and were Canadian residents.

Of these 4,500,000 shares of common stock, 1,500,000 were
  issued to the three directors of the Company, William J. Little, Christopher
  D. Farber and Philip Cassis in a transaction which was not subject to the registration
  requirements of the Securities Act of 1933. The Company relies upon the fact
  that these persons were directors of the Company, and therefore not members
  of the public, in stating that these shares issuances were exempt from registration
  under Section 4(2) of the Securities Act of 1933.

The 3,000,000 shares remaining from the total 4,500,000 issued
  and outstanding were issued to 27 persons other than the directors of the Company.
  Each person who purchased some of these shares was asked to confirm in writing
  their Canadian residential address and each of these persons was a close personal
  friend, business associate or family member of one or more of the directors
  and officers of the Company at the time of the shares' issuance. These issuances
  were exempt from registration pursuant to Regulation S.

Where the offerings described above were undertaken under
  Regulation S they were made under Rule 903 (Category 3, equity securities) and:




No commission or professional fees were paid in connection
  with the Company's sales of unregistered securities under either Regulation
  S.

---

Neither we nor any person acting on our behalf offered or
  sold the foregoing securities by means of any form of general solicitation or
  general advertising. All purchasers represented in writing that they acquired
  the securities for their own accounts. A resale legend has been provided for
  the stock certificates stating that the securities have not been registered
  under the Securities Act of 1933 and cannot be resold or otherwise transferred
  without registration or an exemption (such as that provided by Regulation S
  or Rule 144).

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

The following discussion should be read in conjunction with
  the Companys consolidated financial statements and the notes thereto.
  The discussion of results, causes and trends should not be construed to imply
  any conclusion that such results or trends will necessarily continue in the
  future.

Critical Accounting Policies

We believe that the estimates, assumptions and judgments involved
  in the accounting policies described below have the greatest potential impact
  on our financial statements, so we consider these to be our critical accounting
  policies. Because of the uncertainty inherent in these matters, actual results
  could differ from the estimates we used in applying the critical accounting
  policies. Within the context of these critical accounting policies, we are not
  currently aware of any reasonably likely event that would result in materially
  different amounts being reported.

Results of Operation:

As of September 30, 2001 the Company had no active business
  operations and planned for the succeeding two years to focus on identifying
  and merging with an appropriate business of finding an appropriate business
  opportunity which its management could develop.

The following discusses comparison of the transitional nine
  month period ending September 30, 2001 (the 2001 period) compared
  to the year ended December 31, 2000 (the 2000 period).

Assets and Liabilities - Liquidity

The Company had current assets (cash) of $1,956 at the end
  of the 2001 period as compared to $1,618 in cash at the end of the 2000 period.

The Company had shareholders loans of $10,043 due to
  related parties, being the directors who had loaned the Company funds, at the
  end of the 2001 period. This compared to $7,144 due to related parties at the
  end of the 2000 period. The increase was due to the need for the Company to
  fund its ongoing expenses.

The Company had accounts payable to its auditors of $1,400
  at the end of the 2001 period as compared to accounts payable, also due to its
  auditors, of $500 at the end of the 2000 period.

Net Sales

The Company had no sales in either the 2000 period or the
  2001 period.

Gross Profit

As the Company had no sales or sales revenues, no gross profit
  was reported or could be calculated for either the 2001 period or the 2000 period.

---

Selling, General and Administrative

The Company had office and general expenses of $822 for the
  2001 period as compared to $1,098 for the 2000 period. The slight decrease was
  due to payment of costs associated with incorporation and organization in the
  2001 period being less than in the 2000 period.

Professional fees were $2,639 for the 2001 period as compared
  to $4,148 for the 2000 period. Professional fees decreased in part due to the
  costs of initial incorporation and organization being paid during the 2000 period
  and not being incurred during the 2001 period.

Interest and Other Expenses

There were no interest or other expenses in either the 2000
  period or the 2001 period. The only expenses were Selling, General and Administrative
  as disclosed above.

Net Loss

The net loss for the 2001 period was $3,461 while for the
  2000 period it was $5,246. These net losses translated to $0.00 per share basic
  net loss for both the 2000 period and the 2001 period.

Stockholders Equity (Capital Deficiency)

The deficit accumulated during the development stage of the
  Company was $(9,532) at the end of the 2001 period and $(6,071) at the end of
  the 2000 period. There were 4,500,000 shares of common stock outstanding at
  the end of both the 2001 period and the 2000 period.

New Accounting Pronouncements

In July 2001, SFAS No. 141, Business Combinations and SFAS
  No. 142, Goodwill and Other Intangible Assets were issued. SFAS 141 requires
  the use of he purchase method of accounting and prohibits the use of the pooling-of-interests
  method of accounting for business combinations initiated after June 30, 2001.
  SFAS 142 addresses financial accounting and reporting for acquired goodwill
  and other intangible assets. SFAS 142 requires, among other things, that companies
  no longer amortize goodwill, but instead test goodwill for impairment at least
  annually. SFAS 142 is required to be applied for fiscal years beginning after
  December 15, 2001. Currently, we have not recorded any goodwill and will assess
  how the adoption of SFAS 141 and SFAS 142 will impact its financial positions
  and results of operations in any future acquisitions.

In August 2001, SFAS No. 144, Accounting for the Impairment
  or Disposal of Long-Lived Assets was issued. The new guidance resolves significant
  implementation issues related to SFAS No. 121, but it retains its fundamental
  provisions. It also amends Accounting Research Bulletin No. 51, Consolidated
  Financial Statements, to eliminate the exception to consolidate a subsidiary
  for which control is likely to be temporary. SFAS 144 retains the requirement
  of SFAS 121 to recognize an impairment loss only if the carrying amount of a
  long-lived asset within the scope of SFAS 144 is not recoverable from its undiscounted
  cash flows an exceeds its fair value.

At this time the adoption of SFAS No. 141, 142 and 144 have
  had no effect on the Companys financial statements.

---

Inflation

Management does not believe that inflation had a material adverse
  affect on the financial statements for the periods presented.

Qualitative and Quantitative Disclosure About Market Risk

The Company is exposed to certain market risks in the areas
  of commodity prices, interest rates, and economic changes. To mitigate the effects
  of such risks, the Company selectively utilizes specific financial and insurance
  instruments, including, but not limited to, Accounts Receivable Credit Insurance
  to insure some specific customer accounts receivable balances. In the event
  that the customer cannot make payments against such balances the Company can
  recoup a substantial amount of the open balance depending upon the terms of
  the policy and the customer account.

The Company maintains borrowings under working capital credit
  facilities with asset-based lenders that are not subject to material market
  risk exposure except for such risks relating to fluctuations in market interest
  rates. The carrying value of these borrowings approximates fair value since
  they bear interest at a floating rate based on the prime rate. There are
  no other material qualitative or quantitative market risks particular to the
  Company.

Item 7.        Financial
  Statements

Index to Financial Statements:

|Table of Contents                                           | F-1      
|----------------------------------------------------------- | ---------
|Auditors Report                                            | F-2      
|Balance Sheet for September 30, 2001 and                    |          
|December 31, 2000                                           | F-3      
|Statements of Operations for Nine Months Ended              |          
|September 30, 2001 and Year Ended December   31,
      2000 | F-4      
|Statement of Stockholders Equity                           | F-5      
|Statement of Cash Flows                                     | F-6      
|Notes to Financial Statements                               | F-7  F-8

---

LMC CAPITAL CORP.
  (A Development Stage Company)

FINANCIAL STATEMENTS

SEPTEMBER 30, 2001 AND DECEMBER 31, 2000



**BALANCE SHEETS**

**STATEMENTS OF OPERATIONS**

**STATEMENT OF STOCKHOLDERS’ EQUITY**

**STATEMENTS OF CASH FLOWS**

**NOTES TO FINANCIAL STATEMENTS**



F-1

---

|LABONTE
      & CO.C H A R T E R
      E D     A C C O U N T A N T S | #610 - 938 Howe Street
|-------------------------------------------------------------------- | ----------------------
|Vancouver, BC Canada                                                
|V6Z 1N0                                                              |                       
|Telephone                                                            | (604) 682-2778        
|Facsimile                                                            | (604) 689-2778        
|Email:                                                               | **info@labonteco.com**



AUDITORS REPORT

To the Stockholders and Board of Directors of LMC Capital Corp.

We have audited the balance sheets of LMC Capital Corp. (a
  development stage company) as at September 30, 2001 and December 31, 2000 and
  the statements of operations, changes in stockholders equity and cash
  flows for the nine months ended September 30, 2001, the year ended December
  31, 2000 and the period from September 2, 1999 (inception) to September 30,
  2001. These financial statements are the responsibility of the Company's management.
  Our responsibility is to express an opinion on these financial statements based
  on our audits.

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

In our opinion, these financial statements present fairly,
  in all material respects, the financial position of the Company as at September
  30, 2001 and December 31, 2000 and the results of its operations and the changes
  in stockholders equity and cash flows for the nine months ended September
  30, 2001, the year ended December 31, 2000 and the period from September 2,
  1999 (inception) to September 30, 2001 in accordance with generally accepted
  accounting principles in the United States.

|                                                             | LaBonte & Co.      
|------------------------------------------------------------ | ---------------------
|                                                             |                      
|                                                             | CHARTERED ACCOUNTANTS
|                                                             |                      
|Vancouver, B.C.                                              |                      
|October 16, 2001, except Note 5 which is as of March 7, 2002 |                      

COMMENTS BY AUDITORS FOR U.S. READERS ON CANADA-UNITED STATES REPORTING DIFFERENCES

In the United States, reporting standards for auditors
  would require the addition of an explanatory paragraph following the opinion
  paragraph when the financial statements are affected by conditions and events
  that cast substantial doubt on the Companys ability to continue as a going
  concern, such as those described in Note 1. Our report to the Stockholders and
  Board of Directors dated October 16, 2001, except Note 5 which is as of March
  7, 2002, is expressed in accordance with Canadian reporting standards which
  do not permit a reference to such conditions and events in the auditors
  report when these are adequately disclosed in the financial statements.

|                                                             | LaBonte & Co.      
|------------------------------------------------------------ | ---------------------
|                                                             |                      
|                                                             | CHARTERED ACCOUNTANTS
|                                                             |                      
|Vancouver, B.C.                                              |                      
|October 16, 2001, except Note 5 which is as of March 7, 2002 |                      

F-2

---

LMC CAPITAL CORP.
  (A Development Stage Company)

BALANCE SHEETS

|                                                           | September 30, |        | December 31, |  
|---------------------------------------------------------- | ------------- | ------ | ------------ | -
|                                                           | 2001          |        | 2000         |  
|                                                           |               |        |              |  
|                                                           |               |        |              |  
|ASSETS                                                     |               |        |              |  
|                                                           |               |        |              |  
|CURRENT ASSETS                                             |               |        |              |  
|Cash                                                       | $             | 1,956  |              | $
|                                                           |               |        |              |  
|                                                           |               |        |              |  
|LIABILITIES AND STOCKHOLDERS EQUITY                       |               |        |              |  
|                                                           |               |        |              |  
|CURRENT LIABILITIES                                        |               |        |              |  
|Accounts payable                                           | $             | 1,400  |              | $
|Due to related parties (Note 4)                            |               | 10,043 |              |  
|                                                           |               |        |              |  
|                                                           |               |        |              |  
|                                                           |               | 11,443 |              |  
|                                                           |               |        |              |  
|                                                           |               |        |              |  
|CONTINGENCIES(Note 1)                                      |               |        |              |  
|                                                           |               |        |              |  
|STOCKHOLDERS EQUITY (CAPITAL DEFICIENCY)                  |               |        |              |  
|Capital stock (Note 3)                                     |               |        |              |  
|Authorized                                                 |               |        |              |  
|Common stock, $0.00001
      par value, 100,000,000 shares |               |        |              |  
|Issued and outstanding                                     |               |        |              |  
|4,500,000 (2000 
      4,500,000) shares of common stock  |               | 45     |              |  
|Deficit accumulated during development
      stage         |               | (9,532 | )            |  
|                                                           |               |        |              |  
|                                                           |               |        |              |  
|                                                           |               | (9,487 | )            |  
|                                                           |               |        |              |  
|                                                           |               |        |              |  
|                                                           | $             | 1,956  |              | $
|                                                           |               |        |              |  
|                                                           |               |        |              |  
|SUBSEQUENT EVENTS(Note 5)                                  |               |        |              |  

The accompanying notes are an integral part
  of these financial statements

F-3

---

LMC CAPITAL CORP.
  (A Development Stage Company)

STATEMENTS OF OPERATIONS

|                           |               |           |              |   | September 2,   | 
|-------------------------- | ------------- | --------- | ------------ | - | -------------- | 
|                           | Nine Months   |           |              |   | 1999           | 
|                           | Ended         |           | Year Ended   |   | (inception) to | 
|                           | September 30, |           | December 31, |   | September 30,  | 
|                           | 2001          |           | 2000         |   | 2001           | 
|                           |               |           |              |   |                | 
|                           |               |           |              |   |                | 
|                           |               |           |              |   |                | 
|EXPENSES                   |               |           |              |   |                | 
|                           |               |           |              |   |                | 
|Office and general         | $             | 822       |              | $ | 1,098          | 
|Professional fees          |               | 2,639     |              |   | 4,148          | 
|                           |               |           |              |   |                | 
|                           |               |           |              |   |                | 
|NET LOSS FOR THE PERIOD    | $             | 3,461     |              | $ | 5,246          | 
|                           |               |           |              |   |                | 
|                           |               |           |              |   |                | 
|                           |               |           |              |   |                | 
|                           |               |           |              |   |                | 
|BASIC NET LOSS PER SHARE   | $             | 0.00      |              | $ | 0.00           | 
|                           |               |           |              |   |                | 
|                           |               |           |              |   |                | 
|WEIGHTED AVERAGE NUMBER OF |               |           |              |   |                | 
|COMMON STOCK OUTSTANDING   |               | 4,500,000 |              |   | 4,500,000      | 
|                           |               |           |              |   |                | 

The accompanying notes are an integral part
  of these financial statements

F-4

---

LMC CAPITAL CORP.
  (A Development Stage Company)

STATEMENT OF STOCKHOLDERS EQUITY

FOR THE PERIOD FROM SEPTEMBER 2, 1999 (INCEPTION) TO SEPTEMBER
  30, 2001

|                                                            |              |  |   |             |  |   | Deficit     |   |   |             |  
|----------------------------------------------------------- | ------------ |  | - | ----------- |  | - | ----------- | - | - | ----------- | -
|                                                            | Common Stock |  |   | Accumulated |  |   | Stockholder |  
|                                                            |              |  |   |             |  |   | During      |   |   | s Equity   |  
|                                                            | Number       |  |   |             |  |   | Development |   |   | (Capital    |  
|                                                            | of shares    |  |   | Amount      |  |   | Stage       |   |   | Deficiency) |  
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|Common stock issued for cash                                |              |  |   |             |  |   |             |   |   |             |  
|September 2, 1999                                           | 45,000       |  | $ | 45          |  | $ | -           |   | $ | 45          |  
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|Net loss for the period September 2, 1999                   |              |  |   |             |  |   |             |   |   |             |  
|(inception)
      to December 31, 1999                      | -            |  |   | -           |  |   | (825        | ) |   | (825        | )
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|Balance, December 31, 1999                                  | 45,000       |  |   | 45          |  |   | (825        | ) |   | (780        | )
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|Stock split on a 100 for 1 basis                            | 4,455,000    |  |   | -           |  |   | -           |   |   | -           |  
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|Net loss for the year ended December
      31, 2000         | -            |  |   | -           |  |   | (5,246      | ) |   | (5,246      | )
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|Balance, December 31, 2000                                  | 4,500,000    |  |   | 45          |  |   | (6,071      | ) |   | (6,026      | )
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|Net loss for the nine months ended September
      30, 2001 | -            |  |   | -           |  |   | (3,461      | ) |   | (3,461      | )
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|                                                            |              |  |   |             |  |   |             |   |   |             |  
|Balance, September 30, 2001                                 | 4,500,000    |  | $ | 45          |  | $ | (9,532      | ) | $ | (9,487      | )
|                                                            |              |  |   |             |  |   |             |   |   |             |  

The accompanying notes are an integral part
  of these financial statements

F-5

---

LMC CAPITAL CORP.
  (A Development Stage Company)

STATEMENTS OF CASH FLOWS

|                                       |   |               |   |   |            |   |   | September 2,   |  
|-------------------------------------- | - | ------------- | - | - | ---------- | - | - | -------------- | -
|                                       |   | Nine Months   |   |   | Year Ended |   |   | 1999           |  
|                                       |   | Ended         |   |   | December   |   |   | (inception) to |  
|                                       |   | September 30, |   |   | 31, 2000   |   |   | September 30,  |  
|                                       |   | 2001          |   |   |            |   |   | 2001           |  
|                                       |   |               |   |   |            |   |   |                |  
|                                       |   |               |   |   |            |   |   |                |  
|                                       |   |               |   |   |            |   |   |                |  
|CASH FLOWS FROM OPERATING              |   |               |   |   |            |   |   |                |  
|ACTIVITIES                             |   |               |   |   |            |   |   |                |  
|Net loss for the period                | $ | (3,461        | ) | $ | (5,246     | ) | $ | (9,532         | )
|Adjustments to reconcile net loss      |   |               |   |   |            |   |   |                |  
|to net cash from operating activities: |   |               |   |   |            |   |   |                |  
|- accounts payable                     |   | 900           |   |   | 500        |   |   | 1,400          |  
|                                       |   |               |   |   |            |   |   |                |  
|                                       |   |               |   |   |            |   |   |                |  
|NET CASH USED IN ACTIVITIES OPERATING  |   | (2,561        | ) |   | (4,746     | ) |   | (8,132         | )
|                                       |   |               |   |   |            |   |   |                |  
|                                       |   |               |   |   |            |   |   |                |  
|CASH FLOWS FROM FINANCING              |   |               |   |   |            |   |   |                |  
|ACTIVITIES                             |   |               |   |   |            |   |   |                |  
|Proceeds on sale of common stock       |   | -             |   |   | -          |   |   | 45             |  
|Advances from related parties          |   | 2,899         |   |   | 6,036      |   |   | 10,043         |  
|                                       |   |               |   |   |            |   |   |                |  
|                                       |   |               |   |   |            |   |   |                |  
|NET CASH FLOWS FROM FINANCING          |   | 2,899         |   |   | 6,036      |   |   | 10,088         |  
|ACTIVITIES                             |   |               |   |   |            |   |   |                |  
|                                       |   |               |   |   |            |   |   |                |  
|                                       |   |               |   |   |            |   |   |                |  
|INCREASE IN CASH                       |   | 338           |   |   | 1,290      |   |   | 1,956          |  
|                                       |   |               |   |   |            |   |   |                |  
|CASH, BEGINNING OF PERIOD              |   | 1,618         |   |   | 328        |   |   | -              |  
|                                       |   |               |   |   |            |   |   |                |  
|                                       |   |               |   |   |            |   |   |                |  
|CASH, END OF PERIOD                    | $ | 1,956         |   | $ | 1,618      |   | $ | 1,956          |  
|                                       |   |               |   |   |            |   |   |                |  

The accompanying notes are an integral part
  of these financial statements

F-6

---

LMC CAPITAL CORP.
  (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2001 AND DECEMBER 31, 2000



NOTE 1  NATURE OF OPERATIONS AND BASIS OF PRESENTATION

The Company was incorporated on September 2, 1999 in the State
  of Nevada. To date the Company has had no business operations and was organized
  for the purpose of creating a corporate vehicle to locate and acquire an operating
  business. These financial statements have been prepared on the basis of a going
  concern which contemplates the realization of assets and the satisfaction of
  liabilities in the normal course of business. At September 30, 2001 the Company
  has a working capital deficiency of $9,487 and has incurred losses since inception
  raising substantial doubt as to the Companys ability to continue as a
  going concern. The ability of the Company to continue as a going concern is
  dependent on raising additional capital for working capital and to acquire a
  business venture.

On September 28, 2000, the Company completed a Form 10SB registration
  with the United States Securities and Exchange Commission and as a result is
  subject to the regulations governing reporting issuers in the United States.

By agreement dated November 29, 2001 and approved by the board
  of directors effective December 12, 2001, the Company issued 14,285,714 shares
  of restricted common stock to the shareholders of K-Tronik Intl Corporation,
  a private Nevada corporation, in exchange for 100% of the issued and outstanding
  shares of K-Tronik Intl Corporation resulting in a change in control of
  the Company. Also effective December 12, 2001 the Company changed its name to
  K-Tronik International Corp.

Refer to Note 5.

NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates and Assumptions

Preparation of the Companys financial statements in
  conformity with generally accepted accounting principles requires management
  to make estimates and assumptions that affect certain reported amounts and disclosures.
  Accordingly, actual results could differ from those estimates.

Foreign Currency Translation

The financial statements are presented in United States dollars.
  In accordance with Statement of Financial Accounting Standards No. 52, Foreign
  Currency Translation, foreign denominated monetary assets and liabilities
  are translated to their United States dollar equivalents using foreign exchange
  rates which prevailed at the balance sheet date. Revenue and expenses are translated
  at average rates of exchange during the year. Related translation adjustments
  are reported as a separate component of stockholders equity, whereas gains
  or losses resulting from foreign currency transactions are included in results
  of operations.

Fair Value of Financial Instruments

In accordance with the requirements of SFAS No. 107, the Company
  has determined of the estimated fair value of financial instruments using available
  market information and appropriate valuation methodologies. The fair value of
  financial instruments classified as current assets or liabilities including
  cash and cash equivalents and accounts payable approximate carrying value due
  to the short-term maturity of the instruments.

Net Loss per Common Share

Basic earnings per share includes no dilution and is computed
  by dividing income available to common stockholders by the weighted average
  number of common shares outstanding for the period. Dilutive earnings per share
  reflects the potential dilution of securities that could share in the earnings
  of the Company. Because the Company does not have any potentially dilutive securities,
  the accompanying presentation is only of basic loss per share. Previous Net
  Loss per Common Share calculations have been restated to reflect the Companys
  100 for 1 stock split as described in Note 3.

F-7

---

NOTE 3  CAPITAL STOCK

Effective September 2, 1999 the Company issued 45,000 pre-split
  shares of common stock for cash proceeds of $45.

Effective October 13, 2000 the stockholders of the Company
  approved a split of the outstanding no par value Common stock on a 100 for 1
  basis resulting in 4,500,000 shares of common stock issued and outstanding.
  In addition, the authorized Common stock was increased to 100,000,000 shares
  and assigned a par value of $0.00001 per share.

To September 30, 2001 the Company has not granted any stock
  options and has not recorded any stock-based compensation.

NOTE 4  RELATED PARTY TRANSACTIONS

Certain directors have provided cash loans totalling $10,043
  as at September 30, 2001 (December 31, 2000 - $7,144). Amounts due from related
  parties are non-interest bearing and have no specific terms of repayment.

NOTE 5  SUBSEQUENT EVENTS

By agreement dated November 29, 2001 and approved by the board
  of directors effective December 12, 2001, the Company issued 14,285,714 shares
  of restricted common stock to the shareholders of K-Tronik Intl Corporation
  (KTI), a private Nevada corporation, in exchange for 100% of the
  issued and outstanding shares of KTI which, at the time of the transaction,
  owned a 100% interest in K-Tronik Asia Corporation (KTA), a private
  Korean corporation. KTI is an energy efficiency lighting company in the business
  of designing, manufacturing and selling electronic ballasts. In connection with
  this transaction, KTI changed its name effective December 12, 2001 to K-Tronik
  N.A. Inc. (KTNA). As a condition of this acquisition, the Company
  also issued 3,788,172 shares of restricted common stock to ETIFF Holdings Inc.
  (ETIFF) in settlement of $3,788,172 owed to ETIFF by KTNA. ETIFF,
  a wholly owned subsidiary of Eiger Technologies, Inc. (Eiger), a
  Toronto Stock Exchange listed company, owned 53% of the issued and outstanding
  shares of KTNA. Also in connection with this transaction, Eiger was granted
  an option, which has been exercised, to acquire an additional 3,000,000 shares
  of the Company from the original shareholders of the Company. As a result of
  these transactions, the former shareholders of KTNA own 93.4% of the Company
  representing 21,073,886 of the 22,573,886 total issued and outstanding shares.

This acquisition has been accounted for as a reverse acquisition
  with KTNA being treated as the accounting parent and the Company, the legal
  parent, being treated as the accounting subsidiary.

Effective February 19, 2002 the Company changed its year end
  to September 30 and accordingly, these financial statements have been prepared
  for the nine month period ended September 30, 2001, being the new year end of
  the Company.

These financial statements should be read in conjunction with
  the Companys filings on Forms 8-K and 8-K/A dated December 4, 2001 and
  January 11, February 7 and March 7, 2002 filed with the Securities and Exchange
  Commission which contain the consolidated financial statements of KTI as at
  September 30, 2001 and 2000 and the pro forma consolidated statement of stockholders
  equity of the Company as at September 30, 2001.

F-8

---

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

During the Companys two most recent fiscal years (being
  this transitional period and the period ending December 31, 2000) and any subsequent
  interim period, there were no disagreements with the Companys accountants
  on any matter of accounting principle or practices, financial statement disclosure
  or auditing scope or procedure. In addition, there were no reportable events
  as described in Item 304(a)(1)(iv)(B)1 through 3 of Regulation S-B that occurred
  within the Companys two most recent fiscal years and the subsequent interim
  periods.

With the completion of the acquisition of K-Tronik N.A. Inc.
  on December 12, 2001, the Companys year end was changed to September 30.
  As a result, the December 31, 2001 financial statements filed on EDGAR were
  not audited or presented on form 10-KSB (but rather were presented on form 10-QSB
  as they represented the first quarter of the new fiscal year).

Effective on May 15, 2002, the independent accountants who
  were previously engaged as the principal accountants to audit the Registrant's
  financial statements, LaBonte & Company, resigned. The accountant's reports
  on the financial statements for the fiscal year ended December 31, 2000 neither
  contained an adverse opinion or a disclaimer of opinion, nor was it qualified
  or modified as to uncertainty, audit scope or accounting principles.

Effective on May 15, 2002, BDO Seidman, LLP was engaged to
  serve as the new principal accountant to audit the Companys financial
  statements.

PART III

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

The following discussion contains disclosure concerning the
  directors, officers and control persons of the Company. There are no persons
  which have acted as a promoter, controlling person, or significant employee
  of the Company other than as disclosed below.

---

|Name                  | Position                                                                                      | Ages as of 
      September 30, 2001 | Date Elected*1*2
|--------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------ | ----------------
|Philip N. Cassis      | President and Director                                                                        | 58                                   | Inception       
|Christopher D. Farber | Director                                                                                      | 34                                   | Inception       
|William J. Little     | Director, Treasurer
      Principal Financial Officer and 
      Principal Accounting Officer | 58                                   | Inception       

|1. | Directors, whether appointed at a meeting
        of stockholders or by the remaining directors, are appointed until the
        next annual meeting of stockholders.                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                           
|2. | The President, Secretary and Treasurer
        do not have a set term of office. They serve at the pleasure of the Directors
        and can be removed at any time by the Directors under the Articles and
        Bylaws of the Company.

Mr. Philip Cassis - Mr. Cassis was the President and a Director
  of the Company since its inception to the end of the period in this Report on
  Form 10KSB. He has been self-employed for the previous 5 years and provides
  consulting, sales and marketing management services to other companies.

Mr. Chris Farber  Mr. Farber was the Secretary and Director
  of the Company since its inception to the end of the period in this Report on
  Form 10KSB. For the previous five years, Chris Farber has been employed as a
  lawyer and was, at September 30, 2000 employed with Heenan Blaikie, a national
  firm in Canada. He is presently a sole practitioner as of the date of filing
  of this report. Mr. Farber has a bachelor's degree in economics from University
  of Victoria. He also has a bachelor's of law degree (LLB) from the University
  of Toronto and a Master's degree in Business Administration from the University
  of Toronto.

Mr. William J. Little  Mr. Little was Secretary and
  Director of the Company from its inception to the end of the period in this
  Report on Form 10KSB. Since taking early retirement in 1996 as a partner from
  BDO Dunwoody, an international firm of Chartered Accountants, Bill Little has
  been self-employed providing financial, administrative and management consulting
  services to public companies. Mr. Little has a Bachelor of Commerce and Business
  Administration from the University of British Columbia in Vancouver, British
  Columbia. He has been a Chartered Accountant since 1967.

---

Item 10.        Executive Compensation

Summary Compensation Table

|Name and
      principal
      position(a)         | Year(b)                                                            | Annual Compensation                                | Long-term compensation | All other
      Compen-
      sation
      ($)(i)
|-------------------------------------------------- | ------------------------------------------------------------------ | -------------------------------------------------- | ---------------------- | -------------------------------------------------
|Salary
      ($)(c)                                | Bonus
      ($)(d)                                                 | Other
      Annual
      Compensation
      ($)(e) | Awards                 | Payouts                                          
|Restricted
      Stock
      Award(s)
      ($)(f) | Securities
      Underlying
      options/
      SARs
      (#)(g) | LTIP
      payouts
      ($)(h)                   
|Philip N. Cassis                                   | 2000
      2001                                                    | 0
      0                                          | 0
      0              | 0
      0                                        
|Christopher D. Farber                              | 2000
      2001                                                    | 0
      0                                          | 0
      0              | 0
      0                                        
|William J. Little                                  | 2000
      2001                                                    | 0
      0                                          | 0
      0              | 0
      0                                        

1.   The term Year here
  refers to the fiscal year ending December 31, 2000 and the nine month transitional
  period ending September 30, 2001.

Item 11.        Security Ownership of
  Certain Beneficial Owners and Management

The following table sets forth information regarding the beneficial
  ownership of shares of the Companys common stock as of September 30, 2001
  (4,500,000 issued and outstanding) by (i) all stockholders known to the Company
  to be beneficial owners of more than 5% of the outstanding common stock; and
  (ii) all directors and executive officers of the Company, and as a group (each
  person has sole voting power and sole dispositive power as to all of the shares
  shown as beneficially owned by them):

|Name and Address                                                         | Position                                                                                    | Amount of Stock
      Beneficially Owned | Percentage of Class
|------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------
|Philip N. Cassis                                                         | President and Director                                                                      | 500,000 common                           | 11.11%             
|William J. Little                                                        | Treasurer and Director
      Chief Accounting
      Officer / Chief
      Financial Officer | 500,000 common                           | 11.11%             
|Christopher D. Farber                                                    | Secretary and Director                                                                      | 500,000 common                           | 11.11%             
|Directors, Officers and
      5% stockholders in
      total (3 Persons) |                                                                                             | 1,500,000                                | 33.33%             

|1. | Figures given represent shareholdings and percentage of class
      as of September 30, 2001.                                                                                                                                                                                                                                                                      
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                    
|2. | Figures given for William J. Little
        exclude 200,000 common shares owned by his spouse, Tania Little. If these
        shares are included, he holds a total of 700,000 common shares which represents
        approximately 15.50% of the issued and outstanding common shares.                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                    
|3. | Figures given for Christopher D. Farber
        exclude 200,000 common shares registered in the name of a company, Stonewall
        Capital Corp., of which he is the sole shareholder. If these shares are
        included, he holds a total of 700,000 common shares which represents approximately
        15.50% of the issued and outstanding common shares.

---

|   |                                                                                                                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4. | Figures given for Philip N. Cassis exclude
        200,000 common shares owned by his wife, Lorna Seaton. If these shares
        are included, he holds a total of 700,000 common shares which represents
        approximately 15.50% of the issued and outstanding common shares.

Item 12.        Certain Relationships
  and Related Transactions

To September 30, 2001, there were not any transactions that
  occurred between the Company and its officers, directors, and five percent or
  greater shareholders, except as follows:

The directors of the Company loaned a total of $10,043 to
  the Company to fund its ongoing expenses. These loans are non-interest bearing
  and had no set date for repayment. They are still outstanding as of the date
  of filing this Report on Form 10KSB, being May 30, 2003.

Certain of the officers and directors of the Company are engaged
  in other businesses, either individually or through partnerships and corporations
  in which they have an interest, hold an office, or serve on a board of directors.
  As a result, certain conflicts of interest may arise between the Company and
  its officers and directors. The Company will attempt to resolve such conflicts
  of interest in favor of the Company. The officers and directors of the Company
  are accountable to it and its shareholders as fiduciaries, which requires that
  such officers and directors exercise good faith and integrity in handling the
  companys affairs. A shareholder may be able to institute legal action
  on behalf of the Company or on behalf of itself and other similarly situated
  shareholders to recover damages or for other relief in cases of the resolution
  of conflicts is in any manner prejudicial to the Company.

Item 13.        Exhibits
  and Reports on Form 8-K

The exhibits to be filed with this Form 10-KSB are listed
  below in the Exhibit Index

There were no Reports on Form 8-K filed during the transitional
  period ended September 30, 2001.

Item 14.        Controls
  and Procedures

The Company had, as of September 30, 2001, established and
  currently maintained disclosure controls and other procedures designed to ensure
  that material information required to be disclosed in its reports filed under
  the Securities Exchange Act of 1934 was recorded, processed, summarized and
  reported, within the time periods specified by the Securities and Exchange Commission.
  In conjunction with the close of each fiscal quarter, the Company conducted
  a review and evaluation of the effectiveness of the Companys disclosure
  controls and procedures. It is the opinion of the Companys President as
  of September 30, 2001 that, based upon an evaluation completed within 90

---

days prior to the period ending date of this Report, the Companys
  disclosure controls and procedures were effective and ensured that any material
  information relating to the Company was recorded, processed, summarized and
  reported to its principal officers to allow timely decisions regarding required
  disclosures.

EXHIBIT INDEX

|Number | Exhibit Description                                                                                                                                                                   
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                       
|3.1    | Articles of Incorporation (incorporated by reference
        to Exhibit 3 of the Registration Statement on Form 10-SB filed on September
        28, 2000).                           
|       |                                                                                                                                                                                       
|3.2    | Certificate of Amendment to Articles of Incorporation
        (incorporated by reference to Exhibit 2 of the Form 10-SB filed on September
        28, 2000).                         
|       |                                                                                                                                                                                       
|3.3    | Certificate of Amendment to Articles of Incorporation
        dated October 13, 2000. (incorporated by reference to Exhibit 3.3 of the
        Form 10-QSB filed on November 7, 2000).
|       |                                                                                                                                                                                       
|3.4    | ByLaws (incorporated by reference to Exhibit 3.3
        of the Form 10-QSB filed on November 7, 2001).                                                                               

---

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

|                    | K-TRONIK INTERNATIONAL CORP.            
|------------------- | ----------------------------------------
|                    |                                         
|Dated: May 30, 2003 | By: /s/ Phillip Cassis                  
|                    | Philip Cassis, President and Director as
|                    | of September 30, 2001                   

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

|Dated: May 30, 2003 |                                           
|------------------- | ------------------------------------------
|                    | By: /s/ William J. Little                 
|                    | William J. Little, Treasurer and          
|                    | Principal Accounting Officer / Principal  
|                    | Financial Officer as of September 30, 2001
|                    |                                           
|                    |                                           
|                    | By: /s/ Christopher D. Farber             
|                    | Christopher D. Farber, Director and       
|                    | Secretary as of September 30, 2001        

---

CERTIFICATION PURSUANT TO
  18 U.S.C. SECTION 1350
  AS ADOPTED PURSUANT TO
  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual
  Report of K-Tronik International Corp. (the "Company") on Form 10-KSB for the
  year ended September 30, 2001 as filed with the Securities and Exchange Commission
  on the date hereof (the "Report"), each of the undersigned, in the capacities
  and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section
  1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
  that to his knowledge:

1.    The
  Report fully complies with the requirements of Section 13(a) or 15(d) of the
  Securities Exchange Act of 1934; and

2.   
  The information contained in the Report fairly presents, in all material respects,
  the financial condition and results of operation of the Company at September
  30, 2001.

By:/s/ Phillip Cassis
  Philip Cassis, President and Director as of September 30, 2001

By:/s/ William J. Little
  William J. Little, Treasurer and Principal Accounting Officer 
  / Principal Financial Officer as of September 30, 2001

By:/s/ Christopher D. Farber
  Christopher D. Farber, Secretary and Director as of 
  September 30, 2001

---

FORM OF OFFICER'S CERTIFICATE
  PURSUANT TO SECTION 302

|The undersigned person, who was the President
      of K-Tronik International, Corp. as of September 30, 2001, hereby certifies
      that:
|-------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                           
|1.                                                                                                                                         
|                                                                                                                                           
|2.                                                                                                                                         
|                                                                                                                                           
|3.                                                                                                                                         
|                                                                                                                                           
|4.                                                                                                                                         
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           
|5.                                                                                                                                         
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           
|                                                                                                                                           

|6. | he and the other certifying officers have
        indicated in the report whether or not there were significant changes
        in internal controls or in other factors that could significantly affect
        internal controls subsequent to the date of their evaluation, including
        any corrective actions with regard to significant deficiencies and material
        weaknesses.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | /s/ Philip Cassis                    
| | -------------------------------------
| | Philip Cassis, President and Director
| | As of September 30, 2001             

---