<PAGE>   1
                     U.S. SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)
[x]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934

         For the quarterly period ended March 31, 2001

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from         to

                          Commission file no. 0-15303

                                   UNICO, INC.
                 (Name Of Small Business Issuer In Its Charter)



            Delaware                                  73-1215433
(State or Other Jurisdiction of                    (I.R.S. Employer
 Incorporation)                                    Identification No.)


  24 Lakeside Avenue, Pompton Lakes, NJ                  07442
  (Address of Principal Executive Offices)             (Zip Code)

                                 (973) 839-7200
                (Issuer's Telephone Number, Including Area Code)

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

                                    Yes [X]    No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practical date: As of April 9, the company had
16,879,163 shares of common stock outstanding, $0.01 par value.

                                   UNICO, INC.
                                   Form 10-QSB
                                Quarterly Report
                       For The Period Ended March 31, 2001
<PAGE>   2
<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
Part     I  -  FINANCIAL INFORMATION

Item     1.     Financial Statements

Unaudited Consolidated Statement of Financial Condition
At March 31, 2001 and December 31, 2000 For Unico, Inc.
and Subsidiaries                                                             3

Unaudited Consolidated Statement of Operations for the Three
Months Ended March 31, 2001 and March 31, 2000 for Unico, Inc.
and Subsidiaries                                                             4

Unaudited Statement of Cash Flows for the Three months ended
March 31, 2001 and March,31 2000 for Unico, Inc. and Subsidiaries            5

Unaudited Statement of Stockholders' Equity (Deficiency) at
March 31 , 2001 for Unico, Inc. and Subsidiaries                             6

Notes to Interim Consolidated Financial Statements                           7

Item 2.  Managements Discussion and Analysis of Financial
         Condition and Results of Operations                                12

Part     II  -  OTHER INFORMATION

Item     1.     Legal Proceedings                                           13

Item     2.     Changes in Securities                                       13

Item     3.     Defaults Upon Senior Securities                             13

Item     4.     Submission of Matters to a Vote of Security Holders         13

Item     5.     Other Information                                           13

Item     6.     Exhibits and Reports on Form 8-K                            13

Signatures                                                                  13
</TABLE>


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

BASIS OF PRESENTATION

The accompanying unaudited financial statements are presented in accordance with
generally accepted accounting principles in America for interim financial
information and the instructions for Form 10-QSB and Item 310 under subpart A of
Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles in America for
complete financial statements. The accompanying statements should be read in
conjunction with the audited financial statements for the years ended December
31, 2000 and December 31, 1999. In the opinion of management, all adjustments
(consisting only of normal occurring accruals) considered necessary in order to
make the financial statements not misleading have been included. Operating
results for the quarter ended March 31, 2001 are not necessarily indicative of
results that may be expected for the year ended December 31, 2001. The financial
statements are presented on the accrual basis.
<PAGE>   3
                          UNICO, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                          AS OF March 31, 2001 and 2000


<TABLE>
<CAPTION>
                                                            March 31,            December 31,
                                                              2001                  2000
                                                           ----------            ----------
<S>                                                        <C>                   <C>
                   ASSETS

  CURRENT ASSETS
    Cash and cash equivalents                              $    3,545            $      128

    Accounts and notes receivable, net                        152,177               181,946
                                                           ----------            ----------
      Total current assets                                    155,722               182,074

  FIXED ASSETS

    Computer equipment, net                                   111,858               126,389
                                                           ----------            ----------
      Total fixed assets, net                                 111,858               126,389

  OTHER ASSETS

   Goodwill, net                                              937,448               953,781
   Gas, oil and mineral lease rights                           40,000                40,000
   Misc.                                                       24,010                11,779
                                                           ----------            ----------

      Total other assets                                    1,001,458             1,005,560

  TOTAL ASSETS                                             $1,269,038            $1,314,023
                                                           ==========            ==========

           LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES

   Bank overdraft                                          $        0            $   21,331
   Accounts payable                                           328,353               294,623
   Other short term debt                                      376,280               359,149
   Due on Independent News Acquisition                        156,000               156,000
                                                           ----------            ----------

      Total current liabilities                               860,633               831,103
                                                           ----------            ----------

  LONG-TERM LIABILITIES

    Due to shareholder                                        240,311               240,311
    Accrual for litigation                                    960,000               960,000
                                                                                 ----------


       Total long term liabilities                          1,200,311             1,200,311
                                                           ----------            ----------

TOTAL LIABILITIES                                           2,060,944             2,031,414
STOCKHOLDERS' EQUITY (DEFICIENCY)

    Common stock
     $.01 par value, 20,000,000 shares authorized,
     12,505,496 and 12,505,496 outstanding at
     March 31, 2001 and December 31, 2000,
     respectively                                             125,055               125,055
     Additional paid-in capital                             7,896,509             7,896,509
     Retained earnings                                     (8,813,470)           (6,979,758)
                                                           ----------            ----------

Total stockholders' equity (deficiency)                      (791,907)             (717,391)

  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY
   (DEFICIENCY)                                            $1,269,038            $1,314,023
                                                           ==========            ==========
</TABLE>
<PAGE>   4
                          UNICO, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS
                    FOR THE THREE MONTHS ENDED MARCH 31, 2001
                               AND MARCH 31, 2000


<TABLE>
<CAPTION>
                                                          2001                    2000
                                                      ------------             -----------
<S>                                                   <C>                      <C>
REVENUE
Advertising revenue                                   $    442,547                       0
Other                                                       25,955             $         0
                                                      ------------             -----------
Total revenue                                              468,503                       0
                                                      ------------             -----------

EXPENSES
Cost of sales                                              143,547                       0
Printing                                                   129,740
General and administrative                                 238,865                  33,953
Depreciation                                                14,532
Amortization of goodwill                                    16,333
                                                      ------------             -----------
Total expenses                                             543,017                  33,953
                                                      ------------             -----------
INCOME (LOSS) BEFORE INCOME TAXES                          (74,514)                (33,953)
INCOME TAX PROVISION                                            --                      --
                                                      ------------             -----------

NET INCOME (LOSS)                                     $    (74,514)            $   (33,953)

BASIC NET INCOME (LOSS) PER COMMON SHARE
Weighted average common shares outstanding
 Basic common shares                                    12,505,496               5,929,185
 Assuming dilution for unexercised options              12,505,496               6,029,185
 NET EARNINGS (LOSS) PER SHARE                        $      (0.01)            $     (0.01)
</TABLE>
<PAGE>   5
                           UNICO, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                           FOR THE THREE MONTHS ENDED
                        MARCH 31, 2001 AND MARCH 31, 2000

<TABLE>
<CAPTION>
                                                              2000                 1999
                                                            --------             --------
<S>                                                         <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                           $(74,514)            $(33,953)

Adjustments to reconcile net income to net cash
provided by operating activities:

 Accounts receivable                                          37,566                    0
 Receivable from shareholder                                       0               32,000
 Accounts payable                                             33,730               21,327
 Depreciation and amortization                                30,865                   --
 Accrued expense                                              (8,938)              (3,800)
 Other assets                                                (15,198)                   0
 Other liabilities                                           (21,331)                   0
                                                            --------             --------
Net cash provided by (used) by operating
 activities                                                  (17,820)              15,574
                                                            --------             --------

CASH FLOWS PROVIDED BY (USED) BY
 INVESTING ACTIVITIES
 Purchase of computer equipment                                    0              (16,274)
                                                            --------             --------

   Net cash provided (used) by Investing
    Activities                                                     0              (16,274)
                                                            --------             --------
CASH FLOW FROM FINANCING ACTIVITIES

 Loan from shareholder                                             0               18,000
 Equipment lease refinance                                    21,236                    0
                                                            --------             --------
     Net cash provided (used) by
      financing activities                                    21,236               18,000
                                                            --------             --------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               3,416               17,300

CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR                                                          128                4,910
                                                            --------             --------

CASH AND CASH EQUIVALENTS, END OF PERIOD                    $  3,544             $ 22,209
                                                            ========             ========
</TABLE>
<PAGE>   6
                           UNICO, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIENCY)
                                AT March 31, 2001


<TABLE>
<CAPTION>
                                                                    Excess           Stock                              Shares of
                                  Retained         Capital           Over           Dividend           Total             Common
                                  Earnings         At Par            Par            Declared          Equity              Stock
                                -----------       ---------       -----------       ---------       -----------         ---------
<S>                             <C>               <C>             <C>               <C>             <C>                 <C>
As of
December 31, 1998               ($6,768,187)      $  18,773       $ 7,921,443       $ 172,665       $ 1,344,694         1,877,272

Correction # shares
outstanding                              --           1,686            (1,686)             --                --           168,600

Stock issued for services                --           1,333            11,167              --            12,500           133,313

Dividend paid                            --              --                --        (172,665)         (172,665)               --

Off-set of amount due to
subsidiary sale                          --              --        (1,106,399)             --        (1,106,399)               --

Stock issued in connection
with Silver Valley                       --           2,500             2,500              --             5,000           250,000

Contributions to capital                 --          35,000             7,500              --            42,500         3,500,000

Net Income-                        (211,571)             --                --              --          (211,571)               --

As of
December 31, 1999               ($6,979,758)      $  59,292       $ 6,834,525       $       0       ($   85,941)        5,929,185
                                -----------       ---------       -----------       ---------       -----------         ---------
Acquisition of
BidInvite                                --           1,000            (1,000)             --                --           100,000
Capital contribution                     --              --            80,000              --            80,000           300,000
Stock issued for
Services                                 --          33,713           286,980              --           320,693         3,071,311
Indy News Acquisition                    --          32,000           367,264              --           399,264         3,200,000
Cancellation of shares                   --            (950)          (15,376)             --           (16,326)          (95,000)
Net income for
The period                       (1,415,081)             --                --              --        (1,415,081)               --
                                -----------       ---------       -----------       ---------       -----------         ---------
As of
December 31, 2000                (8,394,839)        125,055         7,552,393               0          (717,391)       12,505,496
Net income
For the period                      (74,514)             --                --              --           (74,514)               --
                                -----------       ---------       -----------       ---------       -----------         ---------
As of March 31, 2001             (8,469,353)        125,055         7,552,393              --          (791,905)       12,505,496
</TABLE>


<PAGE>   7
Unico, Inc. and Subsidiaries
Notes To the Financial Statements
December 31, 2000 and
March 31, 2001


Note 1 - Organization and summary of significant accounting policies.

A - Nature of operation

In May, 1998 the Company entered into an agreement with NexGen to sell its only
active subsidiary UMSI to NexGen. The Transaction was consummated in July, 1999.

This left the Company as a publicly traded "shell" company. In July, 2000, the
Company acquired all of the issued and outstanding stock of The Independent
News, a freely distributed newspaper in Northern New Jersey, having a
circulation of 110,000. The newspaper employs approximately 25 individuals
actively engaged in the publication of the newspaper, selling advertising, and
distribution activities. This was accounted for as a purchase transaction.

B - Basis of consolidation.


The Consolidated financial statements include the subsidiaries of the Company,
The Independent News, BidInvite, Silver Valley Energy, and Pompton Valley
Publishing. Intercompany transactions have been eliminated in consolidation.

C - Acquisitions - see also Notes 5, 6, and 8

During May, 1999, the Company acquired all the issued and outstanding common
stock of Silver Valley Energy (SVE) for $35,000 and 250,000 shares of common
stock (see Note 3). SVE owns the oil, gas, and mineral lease rights on
approximately 1,200 acres of land located in Texas. The company is inactive and
is not presently developing these rights. In March, 2000, the Company acquired
all the issued and outstanding stock of BidInvite for 100,000 shares of stock.
This company's business plan envisioned an Internet based bid solicitation
system for the construction industry, a process that is now entirely manual.
However, because of the recent decline in the value of Internet stocks, the
project was abandoned in the third quarter of 2000. This company was sold in
September, 2000 for $1,000,000 that is payable only in the event the purchaser
is successful in obtaining the necessary financing to fund the business plan.
Because of this contingent aspect, no recognition in given to the sale in the
Company's financial statements. This transaction was accounted for as a pooling
of interests. In July, 2000, the Company acquired from NexGen all the issued and
outstanding stock of The Independent News for 3,200,000 shares of common stock
(see Note 3), issuing $200,000 of its own debt, secured by the Stock in The
Independent News and assuming a $60,000 note payable to a commercial bank owed
by NexGen. On September 7, 2000, the Company entered into a definitive contract
to acquire all of the issued and outstanding common stock of Merrimack
Publishing. This acquisition has not been consummated yet as it is contingent
upon Merrimack's obtaining audited financial statements for the past two years.
Merrimack is the designer of software specifically tailored for independent
newspapers.

D - Property and equipment

Property, equipment, and leasehold improvements are valued at cost. Depreciation
is provided by use of the straight-line method over the shorter of estimated
useful lives or lease terms of the assets. Fully depreciated assets are written
off the year after they are fully depreciated or amortized. Upon the sale or
retirement of property and equipment, the related cost and accumulated
depreciation are eliminated from the accounts, and the resulting gain or loss is
recorded. Repairs and maintenance expenditures that do not extend the useful
lives are included in expense during the period they are incurred.

Property and equipment consisted of the following at March 31, 2001 and December
31, 2000.


<TABLE>
<CAPTION>
                                                                                     Estimated
                                    March 31, 2001      December 31, 2000          Useful Lives
<S>                                 <C>                 <C>                        <C>
Computer and other equipment               290,210                249,890               5 years
Leasehold improvements                      58,458                 58,458               5 years
(Less) Accumulated Depreciation           (196,491)              (181,959)
                                          --------               --------
Net Property and Equipment                 152,177                126,389
</TABLE>

E - Cash and cash equivalents

For purposes of reporting cash flows, the Company classifies all cash and
short-term investments with maturities of three months or less to be cash
equivalents.

F - Income taxes

The Company has adopted the provisions of Statement of Financial Accounting
Standards No. 109 "Accounting For Income Taxes," which incorporates the use of
the asset and liability approach of accounting for income taxes.
The asset and liability approach requires the recognition of deferred tax assets
and liabilities for the future expected results of differences between the
financial reporting basis and tax basis of certain assets and liabilities. In
1999 the Company went through an ownership change and, as a result, management
believes that any net operating loss carryforwards
<PAGE>   8
were lost. In addition, operations through 1999 and 2000 have produced net
operating loss carryforwards of approximately $800,000. No benefit has been
recognized in the Company's financial statements since realization is not "more
likely than not" to happen. The Company files a consolidated tax return.

G - Impairment of long lived assets

The Company accounts for the impairment and disposition of long-lived assets in
accordance with Statement of Financial Accounting Standards No. 121 (SFAS No.
121), Accounting for the Impairment of Long-Lived Assets to Be Disposed Of.
In accordance with SFAS No. 121, long-lived assets to be held are reviewed for
events or changes in circumstances, which indicate that their carrying value may
not be recovered. The Company periodically reviews the carrying value of
long-lived assets to determine whether or not impairment to such value has
occurred.

H - Earnings (loss) per share

Basic earnings (loss) per share are computed by dividing the net income for the
year by the weighted average number of shares outstanding for the year. Diluted
earnings (loss) per share is computed by taking into consideration the
unexercised stock options as if the stock were issued.

I - Leases

The Company sub-leases property at 24 Lakeside Avenue, Pompton Lakes, New Jersey
from one of its wholly owned subsidiaries for $1,000 on a month to month basis.
The subsidiary leases the overall property from a non-affiliated party for
$3,800 per month. The lease is for a five year period expiring in March of 2003,
and the rent expense for the period ended March 31, 2001 was approximately
$11,400. Rent expense for the year 2001 and 2002 will be $45,600 per year and
$5,700 for the first three months in 2003 For a total of 62,700. It is
anticipated that the lease will be renewed.


J - Revenue recognition

Advertising revenues are recognized when customer ads appear in the newspaper.

K - Financial statement estimates

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

L - Fair value of financial instruments

Oil and gas lease rights, valued at cost, approximate fair value in the judgment
of management.

Goodwill is valued at the net residual cost in the acquisition of its subsidiary
The Independent News. The Company amortizes this goodwill on a straight-line
basis over a 15 year period.

M - Comprehensive income

The Company has adopted SFAS No. 130 Reporting Comprehensive Income. The Company
has no reportable differences between net income and comprehensive income,
therefore a statement of comprehensive income has not been presented.








<PAGE>   9
Note 3 - Common stock

On May 29, 1999, the Company acquired 100% of Silver Valley Energy for 1,080,000
shares of its common stock. Subsequently, the purchase price was re-negotiated
for $35,000 and 190,000 shares of free trading stock. The amended agreement is
reflected in the financial statements.

On July 1, 2000, the Company acquired all the issued and outstanding stock of
The Independent News for 3,200,000 shares of its common stock, among other
consideration.

On March 1, 2000, the Company acquired all of the issued and outstanding stock
of BidInvite, Inc. (see Notes 1C and 6.)

Throughout 200 and the first quarter of 2001, the Company issued stock for
consultant and advisory services in varying amounts and at various times.

The Company made a 1 for 3 reverse stock split just before the SVE acquisition
in 1999. This reverse stock split has been recognized in the Company's financial
statements retroactive to 1988.

The stock transfer agent was changed in May of 1999 at which time, an additional
168,587 additional shares of stock were found. Management has not been able to
determine for what purpose these shares were issued. These shares have been
recorded as a reduction of paid in capital and an increase in capital stock at
par.

Note 4 - Precision Communication Consultants acquisition

On December 28, 1999, the Company entered into a share exchange agreement with
Precision Communication Consultants LLC (Precision). In that agreement, the
Company was to acquire all of the interests in Precision for warrants to acquire
500,000 shares of the Company's common stock at varying prices and 416,470
shares of the Company's common stock. The Company believes that it was induced
to enter into the transaction based on incorrect financial representations and
will not honor the warrants when presented and will cancel the common stock at
some future point in time. The Company has not received any interests in
Precision. The matter is not in litigation.

<PAGE>   10
Note 5 - BidInvite Sale

On September 15, 2000, the Company sold a 95% interest in BidInvite to foreign
investors for a $1,000,000 non-interest bearing note. Under the terms of this
note, payment of $500,000 is to be made if and when the purchasers are able to
secure $3,000,000 in financing for BidInvite's business plan. Additionally,
another $500,000 will be due if and when the purchasers are able to obtain
another $3,000,000 of financing. Because of the contingent nature of this
transaction, no recognition of the sale has been reflected in the Company's
financial statements.

Note 6 - Stock options

Effective September 30, 1999, the Company adopted an omnibus stock option plan.
The plan provides for 2,000,000 shares as Incentive Stock Options and 2,000,000
as Employee Stock Options. As of December 31, 1999, 359,450 options had been
granted to Directors and key employees. The exercise price is $0.01 per share.
These options were exercised on April, 2 2000. In addition, in June of 2000,
272,011 of additional options were given to employees and directors of the
Company along with 1,085,000 given to various consultants for services rendered.
Also, in April, 2000 845,000 shares were given to Nateko, the Company's software
development partner in South America.

Note 7 - Litigation and contingencies

The Company has been sued in connection with its acquisition of Silver Valley
Energy.  In addition, In October 2000, the Company received a default judgment
in the amount of $960,000 and is in the process of negotiating a non-monetary
settlement. However, since the Company has received a default judgment,
management has accrued the entire dollar amount in the Company's financial
statements.

NexGen has alleged that the Company is in default with respect to its $200,000
note payable issued in connection with its acquisition of The Independent News.
At December 31, 2000 $156,000 remains unpaid. NexGen has not filed a suit in
this transaction and the Company believes that certain financial
misrepresentations were made in connection with its acquisition of the
Independent News. The matter is currently under negotiation. No amount has been
recognized in the financial statements for this contingency.

The Company has been sued by the former Chief Executive Officer of BidInvite
asserting that he is entitled to 100,000 shares of free trading stock that
relates to his employment. No such agreement was entered into by an Officer of
the Company, and management believes that the suit is without any substance.
No amount has been recognized in the financial statements for this contingency.

Note 8 - Going concern

Despite all of the acquisitions and related efforts, the only funds raised to
date are those either loaned to or contributed to the capital of the Company by
its shareholders. Unless funds are obtained from other sources, or the company
has positive cash flow from operations, the Company's ability to continue as a
going concern could be jeopardized. Management is aggressively expanding the
Company's business using existing resources and is currently in contact with
several sources that are potential investors.

Note 9 - Cancellation of debt

Prior to the Company's acquisition of The Independent News, NexGen had loaned
The Independent News approximately $270,000. As part of the purchase
transaction, NexGen converted their debt into the right to receive "trade
credits" or free advertising. Accordingly, the Company has only recognized as a
liability those amounts that it will ultimately incur as costs to provide free
advertising, or $25,000

Note 10 - Subsequent event

On April 8, 2001, the Company filed with the Securities and Exchange Commission
Form S-8 that registered approximately 3,500,000 shares of the Company, which
were given to various employees, Directors, and consultants in lieu of cash
payments for a total dollar amount of $70,000.
<PAGE>   11
                     Managements Discussion and Analysis of
                 Financial Conditions and Results of Operations.

                       MANAGEMENT DISCUSSION AND ANALYSIS



On July 1, 2000, the Company acquired all of the issued and outstanding stock of
The Independent News, Inc. for its common stock and other consideration. The
Independent News is a freely distributed, independent newspaper servicing
various communities in Northern New Jersey.

The newspaper publishes several weekly editions in its region and two monthly
editions. The weekly editions have a circulation of approximately 70,000 while
the monthly circulation is approximately 40,000. The newspaper contains news
content and advertisements for local business establishments along with
classified advertisements. Revenues primarily come from Advertising display
advertisements (82%), classified advertisements (12%), and inserts sales and
other commissions (5%).

Gross revenues for the first quarter totaled $468,503, which are in line with
revenues reported for the first three months of 2000. (The Independent News was
not owned by Unico, Inc. during the first quarter and, accordingly, these
results are not included in this report.

Production and printing costs totaled $143,547 and $129,740 or 30% and 28% of
gross revenue respectively. These costs are in line with the first quarter of
2000, although the Independent News was not owned by the Company at that time.

Prior to the acquisition of The Independent News, its shareholder, NexGen,
advanced approximately $270,000 to the newspaper. In connection with the
acquisition, NexGen agreed to convert its receivable from The Independent News
into "trade credits," which essentially entitles NexGen to receive $270,000 of
free advertising. The Independent News adjusted this liability to an amount
which it believes is the cost of providing the free advertising, resulting in
cancellation of debt in the amount of $245,000. This debt cancellation is
accounted for as a non-recurring item.

As previously outlined in the "The Company's Business," The Independent News and
the Company have developed a web-site that places advertisers' advertisements on
the Internet permitting The Independent News to charge higher than normal
advertising rates. This "platform" can be migrated to other non-competing
newspapers allowing them to place their advertisers' advertisements on the
Internet, permitting them to charge higher rates as well. The Company is
marketing this web product to other newspapers without charging any up-front
fees and shares in additional revenue by charging 50% of the additional revenue
collected.

The company plans to vigorously market this product, as it believes that
approximately 90% of the 15,000 freely distributed newspapers in the US do not
have web-sites.

Mr. Joe Nicastro is the Publisher of the Independent News and has 15 years in
the Newspaper business. He is also a Past President of the Independent Free
Papers of America, the largest trade association, of free papers in the US and,
as such, has numerous contacts in the industry.

The marketing efforts are largely conducted through personal contacts, attending
trade shows at various locations throughout the US, distribution of marketing
materials, and other personal approaches. The Company plans to hire a National
Sales Manager and General Manager in the next several months to augment its
expansion activities in this area.

The Company has signed a definitive agreement to acquire the Merrimack
Publisher, a software company that produces and maintains software that is
specific to the publishing industry. It is the Company's plan to integrate this
software with its web-based advertising platform, the Local Times and to convert
the current operating environment from its existing DOS based environment to a
Windows environment.
<PAGE>   12
The Company is actively negotiating a settlement with the prior owners of Silver
Valley Energy due to its acquisition of same and believes that it can reach an
amicable non-monetary settlement.

The Company's officers and directors have waived all current payment of cash
compensation, and uses its stock as payment for services provided by outside
consultants and advisors.

It addition, the Company is seeking financing from outside sources.



Item 2. Change of Securities

The following information sets forth certain information as of March 31, 2001
for changes in securities since December 31, 2000. On April 8, 2001, the Company
filed With the SEC Form S-8 registering 3,503,667 shares of its Common stock.
The stock was given to various employees, consultants, and advisors in lieu of
monetary payments.

Item 3. Defaults Upon Senior Securities.

NexGen, the seller of the Independent News, is claiming that the Company is in
default on its $200,000 obligation to NexGen because of the Company's failure to
pay interest and principle on the appropriate date. The Company believes it is
not in default, because it has advanced monies to outside third parties on
NexGen's behalf, and that certain misrepresentations were made concerning
financial aspects of the Independent News.

Item 4. Submission of Matters to a Vote of Security Holders. None


Item 5. Other information. None.

Item 6. Exhibits and reports on Form 8-K. None.


                                   Signatures

Pursuant to the requirements of section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed in its
behalf by the undersigned , thereunto duly authorized, on May 14, 2001.


Unico, Inc.
Registrant

/s/ Ron Stoeppelwerth
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    Ron Stoeppelwerth
    Director and CFO