U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-KSB

(Mark One)

[X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2000

OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
                                                          ---------------------
      TO
        -------------------------------

                        COMMISSION FILE NUMBER: 000-31639

                               LMC CAPITAL CORP.
              (Exact name of registrant as specified in its charter)

            Nevada                                        88-0436364
(State or jurisdiction of incorporation               (I.R.S. Employer
           or organization)                           Identification No.)

#2602-1111 Beach Avenue, Vancouver, British Columbia       V6E 1T9
   (Address of principal executive offices)               (Zip Code)

Registrant's telephone number:   (604) 608-4226

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

Securities registered pursuant to Section 12(g) of the Act:   Common Stock,
                                                              $0.001 Par Value

Indicate by check mark whether the registrant (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 Registrant was
required to file such reports), and (2) been subject to such filing requirements
for the past 90 days. Yes [X ] No [ ].

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the 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 Registrant has no revenues for the fiscal year ended on December 31, 2000.
The aggregate market value of the voting stock held by non-affiliates of the
Registrant as of March 23, 2001: Common Stock, par value $0.001 per share --
$45. As of March 23, 2001, the Registrant had 4,500,000 shares of common stock
issued and outstanding.

<PAGE>
Page 2

TABLE OF CONTENTS

PART I                                                                    PAGE

ITEM 1.   BUSINESS                                                           3

ITEM 2.   PROPERTIES                                                         4

ITEM 3.   LEGAL PROCEEDINGS                                                  4

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

PART II

ITEM 5.   MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
          STOCKHOLDER MATTERS                                                4

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS                                5

ITEM 7.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                        6

ITEM 8.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
          ACCOUNTING AND FINANCIAL DISCLOSURE                                6

PART III

ITEM 9.   DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT                 6

ITEM 10.  EXECUTIVE COMPENSATION                                             7

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT     8

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                     8

PART IV.

ITEM 13.   EXHIBITS, FINANCIAL STATEMENTS SCHEDULES, AND
           REPORTS ON FORM 8-K                                               9

SIGNATURES

<PAGE>
Page 3

PART I.

ITEM 1.   BUSINESS.

                            HISTORY AND ORGANIZATION

   LMC Capital Corp. (the "Registrant"), was organized under the laws of the
State of Nevada on September 2, 1999 under the name LMC Capital Corp. On
September 2, 1999 the Registrant increased its authorized capital to 100,000
common shares at no par value per share from its original authorized capital of
25,000 common shares at no par value. On October 13, 2000 the Registrant
increased its authorized capital to 100,000,000 common shares with a par value
of $0.001 from its previous authorized capital of 100,000 common shares at no
par value.

   The Registrant was organized for the purposes of creating a corporate
vehicle to locate and acquire an operating business entity which management
believes is a suitable acquisition candidate (a "target company"). The
Registrant will not restrict its search to any specific business, industry or
geographical location.

   The Registrant does not currently engage in any business activities that
provide any cash flow. The costs of identifying, investigating, and analyzing
business combinations will be paid with money in the Registrant's treasury or
loaned to the Registrant by management.


                               PROPOSED BUSINESS

   The Registrant will seek to locate and acquire a target company which, in
the opinion of the Registrant's management (sometimes referred to as the
"Management"), offers long term growth potential. The Registrant will not
restrict its search to any specific business, industry or geographical location.
The Registrant may seek to acquire a target company which has just commenced
operations, or which works to avail itself of the benefits of being a "reporting
issuer" in order to facilitate capital formation to expand into new products or
markets.

   There are certain perceived benefits to being a reporting company with a
class of publicly-traded securities. These are commonly thought to include the
following:

*   the ability to use registered securities to make acquisitions of assets or
    businesses;
*   increased visibility in the financial community;
*   the facilitation of borrowing from financial institutions;
*   improved trading efficiency;
*   shareholder liquidity;
*   greater ease in subsequently raising capital;
*   compensation of key employees through stock options;
*   enhanced corporate image;
*   a presence in the United States capital market.


<PAGE>
Page 4

   A target company, if any, which may be interested in a business combination
with the Registrant may include the following:

*   a company for which a primary purpose of becoming public is the use of its
    securities for the acquisition of assets or businesses;
*   a company which is unable to find an underwriter of its securities or is
    unable to find an underwriter of securities on terms acceptable to it;
*   a company which wishes to become public with less dilution of its common
    stock than would occur upon an underwriting;
*   a company which believes that it will be able obtain investment capital on
    more favorable terms after it has become public;
*   a foreign company which may wish an initial entry into the United States
    securities market;
*   a special situation company, such as a company seeking a public market to
    satisfy redemption requirements under a qualified Employee Stock Option
    Plan;
*   a company seeking one or more of the other perceived benefits of becoming
    a public company.

There is no assurance that the Registrant will be able to effect an acquisition
of a target company. In addition, at this time, no specifics as to an
acquisition or as to the nature of the target company can be provided.

ITEM 2.   PROPERTIES

The Registrant has no properties and at this time has no agreements to acquire
any properties. The Registrant is presently using as a mailing address, at no
cost, the office of it's Director, Christopher D. Farber, 2602-1111 Beach
Avenue, Vancouver, B.C., Canada. See "Item 4. Security Ownership of Certain
Beneficial Owners and Management."

ITEM 3.   LEGAL PROCEEDINGS.

The Registrant is not a party to any material pending legal proceedings and, to
the best of its knowledge, no such action by or against the Registrant has been
threatened.

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

Not Applicable.

PART II.

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

(a)   Market Information.

<PAGE>
Page 5

The Registrant's common stock is not currently traded on any stock market.

(b)   Holders of Common Equity.

As of March 23, 2001, there were 19 shareholders of record of the Registrant's
common stock.

(c)   Dividends.

The Registrant has not declared or paid cash dividends to stockholders. The
Board of Directors presently intends to retain any earnings to finance
Registrant operations and does not expect to authorize cash dividends in the
foreseeable future. Any payment of cash dividends in the future will depend on
the Registrant's earnings, capital requirements and other factors.

(d)   Equity Securities Sold Without Registration.

The Registrant has not sold any equity securities without registration.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL OPERATIONS AND
RESULTS OF OPERATIONS.

(a)   Results of Operations

Since incorporation on September 2, 1999, in the state of Nevada 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 entity

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

For the year ended December 31, 2000 the Company incurred general and
administrative expenses of $5,246 of which $4,148 represented professional fees.
For the period September 2, 1999 (inception) to December 31, 1999 the Company
incurred general and administrative expenses of $825.

During the year the shareholders of the Company approved a split of the 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 $0.001 per share.

For the year ended December 31, 2000 the Company had a net loss of $5,246 or
$0.0012 cents per share. For the period September 2, 1999 (inception) to
September 30, 1999 the Company had a net loss of $825 or $0.0002 cents per
share, after consideration of the stock split in 2000.

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(b)   Liquidity and Capital Resources

During the year ended December 31, 2000 the Company used $4,746 in cash from
operating activities and received $6,036 advances from related parties. As at
December 31, 2000 the Company had $1,618 cash in the bank.

The Company does not currently engage in any business activities that provide
any cash flow. The Company is dependant on raising capital or receiving
advances from related parties in order to meet the costs of identifying,
investigating and analyzing business opportunities and for general corporate
needs.


ITEM 7.   FINANCIAL STATEMENTS.

Financial statements as of and for the year ended December 31, 2000, and for the
year ended December 31, 1999 are presented in a separate section of this report
following Part IV.

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

Not Applicable.

PART III.

ITEM 9.   DIRECTORS, EXECUTIVE OFFICERS AND COMPLIANCE WITH SECTION 16(A) OF
THE EXCHANGE ACT.

(a)   Officers and Directors.

   Set forth below is the name of each of the directors and officers of the
Registrant, all positions and offices with the Registrant held, the period
during which such person has never served as such, and the business experience
during at least the last five years:

   Name                  Age           Positions and Offices Held
   ----                  ---           ----------------------------

  Philip Cassis          59        President and Director (since inception)

  Christopher D. Farber  34        Secretary and Director (since inception)

  William J. Little      59        Treasurer and Director (since inception)

<PAGE>
Page 7

   There are no agreements or understandings for the officers or directors to
resign at the request of another person and the above-named officers and
directors are not acting on behalf of nor will act at the direction of any other
person.

   Mr. Philip Cassis - Mr. Cassis has served as an Officer and Director of
publicly traded Canadian companies, as well as assisting several companies to
gain listing status on the Canadian Venture Exchange, as well as assisting
companies in securing financing capital. His sales and marketing experience has
not only been on an independent level, but also with national Canadian companies
such as The Bay, Zellers, Eatons, Home Hardware and Canadian Tire. Mr. Cassis
has accumulated broad experience in managing public companies.

   Mr. Chris Farber - For the previous five years, Chris Farber has been
employed as a lawyer. He is presently an associate counsel at Heenan Blaikie, a
firm with offices in all major Canadian cities, Los Angeles and New York. He
restricts his practice to securities law and provides legal services to a number
of publicly traded companies in the US and Canada. 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 - Since taking early retirement in 1996 as a partner
from BDO Dunwoody, an international firm of Chartered Accountants, Bill Little
has provided financial, administrative and management consulting services to
public companies. He has held various positions, including Treasurer and
Director. 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. During his 22 years with the chartered
accounting firm he was primarily involved in the firm's corporate restructuring,
recovery and insolvency division. Prior to joining BDO Dunwoody, for 7 years
Mr. Little was controller and treasurer of public and private companies engaged
in a variety of businesses.

(b)   Compliance with Section 16(a) of the Exchange Act.

Section 16(a) of the Securities Exchange Act of 1934 requires the Registrant's
directors, certain officers and persons holding 10% or more of the Registrant's
common stock to file reports regarding their ownership and regarding their
acquisitions and dispositions of the Registrant's common stock with the
Securities and Exchange Commission. The Registrant is unaware that any required
reports were not timely filed.

ITEM 10.   EXECUTIVE COMPENSATION

None of the directors or officers of the Registrant receive any form of
compensation. There are no annuity, pension or retirement benefits proposed to
be paid to officers, director or employees of the Registrant in the event of
retirement at normal retirement date pursuant to any presently existing plan

<PAGE>
Page 8

provided or contributed to by the Registration. No remuneration is proposed to
be paid in the future directly or indirectly by the Registrant to any officer of
director under any plan which is presently existing.

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

The following table sets forth information regarding the beneficial ownership of
shares of the Registrant's common stock as of March 23, 2001 (4,500,000 issued
and outstanding) by (i) all stockholders known to the Registration to be
beneficial owners of more than 5% of the outstanding common stock; and (ii) all
directors and executive officers of the Registrant as a group:


================================================================================
  NAME AND ADDRESS OF            SHARES OF        ATTRIBUTED       APPROXIMATE
   BENEFICIAL OWNER             COMMON STOCK      BENEFICIAL        PERCENTAGE
                                BENEFICIALLY      OWNERSHIP           OWNED
                                    OWNED
--------------------------------------------------------------------------------
Philip Cassis                      500,000           N/A              0.005%
#2-59 Walnut Street
St. Thomas, Ontario N5R 2Y7
--------------------------------------------------------------------------------
William J. Little                  500,000           N/A              0.005%
5588 Willow Street
Vancouver, BC V5Z 3S4
--------------------------------------------------------------------------------
Christopher D. Farber              500,000           N/A              0.005%
2602-1111 Beach Avenue
Vancouver, BC V6E 1T9
--------------------------------------------------------------------------------
Stonewall Capital Corp.            200,000           N/A              0.002%
2602-1111 Beach Avenue
Vancouver, BC V6E 1T9
Beneficial Owner: Chris Farber
--------------------------------------------------------------------------------
Officers and Directors as a
Group (3 people)                 1,700,000           N/A              0.017%
================================================================================

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Other than as set forth below, there are no relationships, transactions, or
proposed transactions to which the registrant was or is to be a party, in which
any of the named persons set forth previously had or is to have a direct or
indirect material interest.

Certain of the officers and directors of the Registrant are engaged in other
businesses, either individually or through partnerships and corporations in
which they have an interest may arise between the Registrant and its officers
and directors. The Registrant will attempt to resolve such conflicts of

<PAGE>
Page 9

interest in favour of the Registrant. The officers and directors of the
Registrant are accountable to it and its shareholders as fiduciaries, which
requires that such officers and directors exercise good faith and integrity in
handling the Registrant's affairs. A shareholder may be able to institute legal
action on behalf of the Registrant 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 Registrant.

PART IV.

ITEM 13.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

(a)   Index to Financial Statements and Schedules                          Page

Report of Independent Accountants                                            13

Balance Sheets of the Registrant as of December 31, 2000 and
the year ended December 31, 1999                                             15

Statements of Operations for the year ended December 31, 2000 and
the year ended December 31, 1999                                             16

Statements of Shareholders' Equity for the year ended December 31, 2000
and the year ended December 31, 2000                                         17

Statements of Cash Flows for the year ended December 31, 2000 and the
year ended December 31, 1999                                                 18

Notes to Financial Statements                                                19

(b)   Reports of Form 8-K. There were no reports on Form 8-K filed during
the last quarter of the fiscal year covered by this report.

(c)   Exhibits included or incorporated by reference herein: See Exhibit
Index

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.

                                           LMC CAPITAL CORP.

Dated March 26, 2001                       By: /s/ Philip Cassis
                                           Philip Cassis, President

<PAGE>
Page 10

Pursuant to the requirements of the Securities Act of 1933, this annual report
has been signed by the persons in the capacities and on the date indicated:

Signature                     Title                  Date

/s/ Philip Cassis             President/Director     March 26, 2001
Philip Cassis

/s/ Christopher D. Farber     Secretary/Director     March 26, 2001
Christopher D. Farber

/s/ William J. Little         Treasurer/Director     March 26, 2001
William J. Little

<PAGE>
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                                LMC CAPITAL CORP.
                         (A Development Stage Company)

                             FINANCIAL STATEMENTS

                          DECEMBER 31, 2000 AND 1999


<PAGE>
Page 12




AUDITORS' REPORT

BALANCE SHEETS

STATEMENTS OF OPERATIONS

STATEMENT OF STOCKHOLDERS' EQUITY

STATEMENTS OF CASH FLOWS

NOTES TO FINANCIAL STATEMENTS


<PAGE>
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             LABONTE & CO.                        1205 - 1095 West Pender Street
-----------------------------------------         Vancouver, BC Canada
C H A R T E R E D  A C C O U N T A N T S          V6E 2M6
-----------------------------------------         Telephone   (604) 682-2778
                                                  Facsimile   (604) 689-2778
                                                  Email    rjl@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 December 31, 2000 and 1999 and the statements of operations,
changes in stockholders' equity and cash flows for the periods then ended.
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 December 31, 2000 and 1999
and the results of its operations and the changes in stockholders' equity and
cash flows for the periods then ended in accordance with generally accepted
accounting principles in the United States.

                                                               /s/ LaBonte & Co.

                                                           CHARTERED ACCOUNTANTS

Vancouver, B.C.
March 23, 2001

<PAGE>
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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
March 23, 2001 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.

                                                               /s/ LaBonte & Co.

                                                           CHARTERED ACCOUNTANTS

Vancouver, B.C.
March 23, 2001



<PAGE>
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                                   LMC CAPITAL CORP.
                             (A Development Stage Company)

                                   BALANCE SHEETS

                                                  December 31,      December 31,
                                                    2000              1999
================================================================================


                          ASSETS

CURRENT ASSETS
    Cash                                           $      1,618     $       328
================================================================================

             LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Accounts payable                               $        500     $      -
    Due to related parties (Note 4)                       7,144           1,108
--------------------------------------------------------------------------------
                                                          7,644           1,108
--------------------------------------------------------------------------------

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 (1999 - 4,500,000) shares
         of common stock                                     45              45
    Additional paid-in capital                             -               -
   Deficit accumulated during development stage          (6,071)           (825)
--------------------------------------------------------------------------------
                                                         (6,026)           (780)
--------------------------------------------------------------------------------
                                                   $      1,618     $       328
================================================================================


  The accompanying notes are an integral part of these financial statements

<PAGE>
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                                   LMC CAPITAL CORP.
                             (A Development Stage Company)

                               STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION
                                                                    September 2,            September 2,
                                              Year ended         1999 (inception)         1999 (inception)
                                              December 31,       to December 31,          to December 31,
                                                 2000                 1999                      2000
=============================================================================================================
<S>                                           <C>                 <C>                     <C>
GENERAL AND ADMINISTRATIVE
EXPENSES

    Office and general                        $       1,098       $           55          $       1,153
    Professional fees                                 4,148                  770                  4,918
-------------------------------------------------------------------------------------------------------------
NET LOSS FOR THE PERIOD                       $       5,246       $          825          $       6,071
=============================================================================================================

BASIC NET LOSS PER SHARE                      $      0.0012       $       0.0002
================================================================================

WEIGHTED AVERAGE COMMON
   SHARES OUTSTANDING                             4,500,000            4,500,000
================================================================================
</TABLE>


  The accompanying notes are an integral part of these financial statements

<PAGE>
Page 17

                                   LMC CAPITAL CORP.
                             (A Development Stage Company)

                          STATEMENT OF STOCKHOLDERS' EQUITY

       FOR THE PERIOD FROM SEPTEMBER 2, 1999 (INCEPTION) TO DECEMBER 31, 2000
<TABLE>
<CAPTION>

                                                                                              Deficit
                                                         Common Stock                       Accumulated    Stockholders'
                                                                           Additional          During           Equity
                                             Number                          Paid In         Development       (Capital
                                            of shares        Amount         Capital             Stage         Deficiency)
==============================================================================================================================
<S>                                        <C>              <C>            <C>              <C>             <C>
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)
==============================================================================================================================
</TABLE>

  The accompanying notes are an integral part of these financial statements

<PAGE>
Page 18

                                   LMC CAPITAL CORP.
                             (A Development Stage Company)

                              STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                    September 2,            September 2,
                                              Year ended         1999 (inception)         1999 (inception)
                                              December 31,       to December 31,          to December 31,
                                                 2000                 1999                      2000
=============================================================================================================
<S>                                           <C>                 <C>                     <C>
CASH FLOWS FROM OPERATING
  ACTIVITIES
    Net loss for the period                   $      (5,246)      $         (825)         $      (6,071)
    Adjustments to reconcile net loss
      to net cash from operating activities:
      - accounts payable                                500                 -                       500
-------------------------------------------------------------------------------------------------------------

NET CASH USED IN OPERATING
  ACTIVITIES                                         (4,746)                (825)                (5,571)
-------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING
  ACTIVITIES
    Proceeds on sale of common stock                   -                      45                     45
    Advances from related parties                     6,036                1,108                  7,144
-------------------------------------------------------------------------------------------------------------

NET CASH FLOWS FROM
  FINANCING ACTIVITIES                                6,036                1,153                  7,189
-------------------------------------------------------------------------------------------------------------

INCREASE IN CASH                                      1,290                  328                  1,618

CASH, BEGINNING OF PERIOD                               328                 -                      -
-------------------------------------------------------------------------------------------------------------

CASH, END OF PERIOD                           $       1,618       $          328          $       1,618
=============================================================================================================
</TABLE>


  The accompanying notes are an integral part of these financial statements

<PAGE>
Page 19

                                   LMC CAPITAL CORP.
                             (A Development Stage Company)

                            NOTES TO FINANCIAL STATEMENTS

                            DECEMBER 31, 2000 AND 1999
================================================================================

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. The ability of the Company to continue as a going concern is
dependent on raising capital to acquire a business venture.

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

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 ("SFAS") 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
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. The prior years Net Loss per
Common Share calculation has been restated to reflect the Company's 100 for 1
stock split as described in Note 3.

<PAGE>
Page 20

NOTE 3 - CAPITAL STOCK
--------------------------------------------------------------------------------

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.

NOTE 4 - RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------

During the year certain directors paid expenses on behalf of the company of $330
(1999 - $770) and made net advances to the Company of $5,706 (1999 - 338).
Amounts due to related parties are unsecured, non-interest bearing and have no
specific terms of repayment.


EXHIBIT INDEX

Exhibit No.                  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 10QSB filed on November 9, 2000)

3.4             By-Laws (incorporate by reference to Exhibit 3.4 of the Form
                10QSB filed on November 9, 2000)

27              Financial Data Schedule (see below).

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