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

                           FORM 10-QSB

      [  X ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

     For the quarterly period ended June 30, 2001

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

     For the transition period from        to

                  Commission File No. 000-26017

                       GOURMET GIFTS, INC.
(Exact name of small business issuer as specified in its charter)

            Nevada                          880375818
(State or Other Jurisdiction of           (IRS Employer
Incorporation or Organization)         Identification No.)


              253 D'Emerald, Sparks, Nevada  89434
            (Address of principal executive offices)

                         (702) 254-5069
                   (Issuer's telephone number)

                         Not Applicable
  (Former name, address and fiscal year, if changed since last
                             report)

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

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

Check whether the registrant has filed all documents and reports
required  to  be  filed by Sections 12,  13,  or  15(d)  of  the
Exchange Act subsequent to the distribution of securities  under
a plan confirmed by a court.  Yes  [  ]  No  [  ]

APPLICABLE ONLY TO CORPORATE ISSUERS:
As  of  August  2, 2001, the Registrant had outstanding  896,000
shares of Common Stock, par value $0.001.

<PAGE>

                           FORM 10-QSB
                       GOURMET GIFTS, INC.

                              INDEX
                                                                    Page

PART I.    Financial Information                                      2

           Independent Accountants Report                             3

           Balance Sheets - June 30, 2001 and June 30, 2000           4

           Statements of Operations - Three and Nine Months           5
           Ended June 30, 2001 and 2000, and From Inception
          (September 24, 1997) to June 30, 2001

           Statement of Changes in Stockholders' Equity               6
           From Inception (September 24, 1997) to June 30, 2001

           Statements of Cash Flows -Three and Nine Months            7
           Ended June 30, 2001 and 2000, and From Inception
           (September 24, 1997) to June 30, 2001

           Notes to Consolidated Financial Statements                 8

           Management's Discussion and Analysis, and                 11
           Plan of Operation

PART II.   Other Information                                         12

SIGNATURES                                                           12

                                      2
<PAGE>

                             PART I.

FINANCIAL INFORMATION

     In the opinion of management, the accompanying unaudited
financial statements included in this Form 10-QSB reflect all
adjustments (consisting only of normal recurring accruals)
necessary for a fair presentation of the results of operations
for the periods presented.  The results of operations for the
periods presented are not necessarily indicative of the results
to be expected for the full year.


DAVID E.COFFEY       3651 LINDELL ROAD, SUITE A, LAS VEGAS, NEVADA 89103
CERTIFIED PUBLIC ACCOUNTANT                     (702) 871-3979




                 INDEPENDENT ACCOUNTANTS REPORT


To the Board of Directors and Stockholders
of Gourmet Gifts, Inc.
Reno, Nevada

     I have reviewed the accompanying financial statements of
Gourmet Gifts, Inc. for the three and nine-month periods ended
June 30, 2001 and June 30, 2000.  These financial statements are
the responsibility of Gourmet Gifts, Inc.'s management.

     I conducted my review in accordance with standards
established by the American Institute of Certified Public
Accountants.  A review of interim financial consists principally
of applying analytical procedures to financial data and making
inquiries of persons responsible for financial and accounting
matters.  It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.
Accordingly, no such opinion is expressed.

     Based on my review, I am not aware of any material
modifications that should be made to the accompanying financial
statements for them to be in conformity with generally accepted
accounting principles established by the American Institute of
Certified Public Accountants.


/s/ David E. Coffey C.P.A
David Coffey, C. P. A.
Las Vegas, Nevada
July 18, 2001

                                      3
<PAGE>

GOURMET GIFTS, INC,
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS

                                    June 30,     June 30,
                                      2001         2000
ASSETS
Cash                               $        0    $      616
Prepaid expenses                            0         1,000

     Total Assets                  $        0    $    1,616

LIABILITIES & STOCKHOLDERS' EQUITY

Accounts payable                       16,239             0
Notes payable to stockholders           7,750             0
Interest payable                          399             0

     Total Liabilities                 24,388             0

Stockholders' Equity
 Common stock, authorized 25,000,000
 shares  at $.001 par  value, issued
 and outstanding 896,000 shares           896           896
Deficit accumulated during the
 development stage                     29,311        29,311

      Total Stockholders' Equity     (24,388)         1,616

Total Liabilities and
 Stockholders' Equity             $        0      $   1,616

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

                                      4
<PAGE>

GOURMET GIFTS, INC,
(A DEVELOPMFNT STAGE COMPANY)
STATEMENTS OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
(With Cumulative Figures From inception)
<TABLE>
<CAPTION>

                         Three months ended     Nine months ended          From
                              June 30,               June 30,           Inception,
                                                                         Sept.24,
                                                                         1997 to
                         2001        2000       2001        2000         June 30,
                                                                          2001
<S>                    <C>         <C>        <C>         <C>          <C>
Net sales              $       0   $      0   $       0   $        0   $     6,015
Costs of goods sold            0          0           0            0         2,543

   Gross profit                0          0           0            0         3,472

Expenses
  Outside services             0          0           0            0           200
  Consulting                   0          0           0            0        16,715
  Office expenses              0          0           0            0           147
  Professional services    5,366          0      20,939            0        31,331
  Bank Charges                 0         45          30          135           566
  Taxes and licenses           0         50           0          100           930
  Fees                        50          0         150          226           392
  Advertising                  0          0           0            0         1,799
  Spoilage                     0          0           0            0         3,293
  Loss of disposal of
   packaging supplies          0          0           0            0         1,942
  Rent                         0         85           0           85       170,582
  Interest                   228          0         531            0        58,067

Total expenses             5,634        180      21,650          546   $   (54,595)

Net loss                  (5,634)      (180)    (21,650)        (546)  $   (54,595)

Retained earnings,
  beginning of period    (48,961)   (28,411)    (32,945)     (28,045)

Deficit accumulated
during the development
stage                   $(54,595)  $(28,591)  $ (54,595)   $ (28,591)

Earnings (loss) per
 share  assuming
 dilution               $  (0.01)  $   0.00   $   (0.02)   $    0.00    $   (0.07)
Net loss

Weighted average shares
  outstanding            896,000    896,000     896,000      896,000      738,089
</TABLE>
The accompanying notes are an integral part of these financial statements.

                                      5
<PAGE>

GOURMET GIFTS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS'EQUITY
FROM SEPTEMBER 24,1997, (Date of Inception) TO JUNE 30,2001

<TABLE>
<CAPTION>
                                    Common Stock     Additional  Deficit accumul-
                                Shares      Amount     Paid-in   ated during the
                                                       Capital     development
                                                                      stage      Total
<S>                             <C>        <C>       <C>          <C>          <C>
Balance, September 24,1997            --   $    --   $     --     $      --    $     --

Issuance of common stock
for cash September, 1997        250,000        250      4,750              0      5,000

Balance, September 30, 1997     250,000        250      4,750              0      5,000

Issuance of common stock
for cash, September, 1998       646,000        646     31,654              0     32,300

Less offering costs                   0          0     (6,215)             0     (6,215)

Less net loss                         0          0          0         (1,320)    (1,320)

Balance, September 30, 1998     896,000        896     30,189         (1,320)     29,765

Less offering costs                   0          0       (878)             0        (878)

Less net loss                         0          0          0        (26,725)    (26,725)

Balance, September 30,1999      896,000        896     29,311        (28,045)      2,162

Less net loss                         0          0          0         (4,900)     (4,900)

Balance, September 30, 2000     896,000        896     29,311        (32,945)     (2,738)

Less net loss                         0          0          0        (21,650)    (21,650)

Balance June 31, 2001           896,000   $    896   $ 29,311     $  (54,595)   $(24,388)
</TABLE>

The accompanying notes are an integral parl of these financial statements

                                      6
<PAGE>


GOURMET GIFTS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(With Cumulative Figures From Inception)

<TABLE>
<CAPTION>

                             Three month ended      Nine months ended       From Inception
                                 June 30,               June 30,          Sept. 24, 1997 to
                              2001        2000       2001        2000      June 30, 2001
<S>                         <C>         <C>        <C>         <C>         <C>
CASH FLOWS PROVIDED BY
 OPERATING ACTIVITIES
Net Loss                    $  (5,834)  $   (180)  $ (21,650)  $    (546)  $  (54,595)

Non-cash  items included
 in net loss                        0          0                                    0
Adjustments to  reconcile
net loss to
 Cash used by operating
  activity
    Prepaid expenses                0          0           0      (1,000)           0
    Receivable from
     stockholder                    0         50           0          50            0
    Note payable to
     stockholder                  800          0       4,750           0        7,750
    Interest payable to
     stockholder                   45          0         348           0          399
    Accounts payable            4,606          0      16,239           0       16,239


   NET CASH PROVIDED BY
    OPERATING ACTIVITIES         (183)      (130)       (313)     (1,496)     (30,207)

CASH FLOWS USED BY
 INVESTING ACTIVITIES               0          0           0           0            0

    NET CASH USED BY
     INVESTING ACTIVITIES           0          0           0           0            0

CASH FLOWS FROM FINANCING
  ACTIVITIES
    Sale of common stock            0          0           0           0          896
    Paid-in capital                 0          0           0           0       36,404
    Less offering costs             0          0           0           0       (7,093)

     NET CASH PROVIDED BY
      FINANCING ACTIVITIES          0          0           0           0       30,207

     NET INCREASE IN CASH        (183)      (130)       (313)     (1,496)  $        0

CASH AT BEGINNING OF PERIOD       183        746         313       2,112

CASH AT END OF PERIOD        $      0   $    616   $       0   $     616
</TABLE>
The accompanying notes are an integral part of these financial statements.

                                      7
<PAGE>

GOURMET GIFTS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001 AND JUNE 30, 2000

NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The  Company  was incorporated on September 24, 1997,  under  the
laws  of the State of Nevada. The business purpose of the Company
is  the  production and sale of gourmet gift items. In August  of
1999,  the  Company  had  ceased operations  and  liquidated  its
inventories.  The  Company will resume operations  if  additional
financing is obtained.

The  Company will adopt accounting policies and procedures  based
upon the nature of future transactions.

NOTE B FISCAL YEAR

In  October  of  1998, the Company adopted the period  October  1
through September 30 as its fiscal year.

NOTE C CHANGE OF INDEPENDENT ACCOUNTANTS

Financial  statements for the period ended  September  30,  1998,
were  audited by Albright, Persing, & Associates, Ltd., of  Reno,
Nevada.  The  Company named as its independent auditor  David  E.
Coffey,  CPA  for  the  audit of September  30,  1999,  financial
statements.

NOTE D OFFERING COSTS

Offering costs are reported as a reduction in the amount of paid-
in capital received for sale of the shares,

NOTE E EARNINGS (LOSS) PER SHARE

Basic  EPS is determined using net income divided by the weighted
average  shares  outstanding during the period.  Diluted  EPS  is
computed  by  dividing net income by the weighted average  shares
outstanding, assuming all dilutive potential common  shares  were
issued.  Since  the  Company  has  no  common  shares  that   are
potentially   issuable,  such  as  stock   options,   convertible
securities or warrants, basic and diluted EPS are the same,

                                      8
<PAGE>
GOURMET GIFTS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001 AND JUNE 30, 2000
(continued)

NOTE F STOCK OFFERINGS

In  September of 1997, the Company completed the sale of  250,000
shares of its common stock at $.02 per share for $5,000. Then, in
September  of 1998, the Company issued another 646,000 shares  of
its  common  stock at $.05 per share for a total of $32,300.  The
proceeds  were to be used for the production and sale of  gourmet
gift items,

NOTE G RELATED PARTY TRANSACTIONS

In  September of 1997, the Company issued 260,000 shares  of  its
common stock to officers at $.02 per share for a total of $5,000.

In  May  of 1999, the Company paid one of its shareholders $4,500
for  services  performed to complete filing requirements  of  the
Securities & Exchange Commission.

Prior  to ceasing operations, in August of 1999, the Company  had
paid  two  of its officers $10,000 and $2,214, respectively,  for
consulting services performed during start-up of operations.

In  June of 1999, the Company sold the remainder of its packaging
inventory to a shareholder for $500, which resulted in a loss  of
$1,942,

Stockholders of the Company have advanced moneys for the  payment
of  continuing expenses, totaling $7,750 as of June 30, 2001,  on
promissory notes at 12% interest, compounded annually, due on the
second anniversary.

NOTE H LIQUIDATION OF INVENTORY

In  June  of 1999, the Company liquidated its inventory.  Spoiled
perishable  items at a cost of $3,293 were discarded at  a  total
loss.  Packaging  supplies at a cost of $2,442  were  sold  to  a
shareholder  for $500, which resulted in a loss  of  $1,942.  The
Company  will  resume  operations  if  additional  financing   is
obtained.

NOTE I SUSPENSION OF OPERATIONS

On  August  8, 1999, the Board of Directors resolved  to  suspend
operations  in  the  gift  box  business  and  to  pursue   other
opportunities which may become available.

                                      9
<PAGE>

GOURMET GIFTS, INC,
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2001 AND JUNE 30, 2000
(continued)

NOTE J NOTES PAYABLE

The  Company has given unsecured promissory notes in exchange for
payment  of  continuing expenses by two of its stockholders.  The
notes  carry  interest at the rate of 12 % per annum,  compounded
annually,  due on the second anniversary of the note.  The  dates
and amounts of each note are;
               8/10/00             3,000
               12/11/00            2,950
               2/23/01             1,000
               4/21101               800
                               ...........
               Total               7,760


                                      10
<PAGE>

             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION OR PLAN OF OPERATION

Forward-Looking Statement Notice

     When used in this report, the words "may," "will," "expect,"
"anticipate," "continue," "estimate," "project," "intend," and
similar expressions are intended to identify forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934 regarding events, conditions, and financial trends that may
affect the Company's future plans of operations, business
strategy, operating results, and financial position.  Persons
reviewing this report are cautioned that any forward-looking
statements are not guarantees of future performance and are
subject to risks and uncertainties and that actual results may
differ materially from those included within the forward-looking
statements as a result of various factors.

Three and Nine Months Ended June 30, 2001, and 2000

     The Company had no operations and generated no revenue for
the three and nine-month periods ended June 30, 2001 and 2000.

     The Company had expenses of $5,634 for the three months
ended June 30, 2001, as compared to $180 for the same period in
2000.  The Company had expenses of $21,650 for the nine months
ended June 30, 2001, as compared to $546 for the nine months
ended June 30, 2000.  This increase in expenses is primarily
attributable to the administrative, legal, professional, and
accounting costs associated with the duties of a publicly
reporting company.

     As a result of the foregoing, the Company realized a net
loss of $21,650 for the nine months ended June 30, 2001, as
compared to a net loss of $546 for the nine months ended June 30,
2000.  Again, this increase in the Company's net loss is due to
the costs associated with being a reporting public company.

Liquidity and Capital Resources

     At June 30, 2001, the Company had cash on hand in the amount
of $0, accounts payable in the amount of $16,239, notes with
interest payable to stockholders in the amount of $7,750 and
interest payable of $399.  As a result, the Company had a working
capital deficit of $24,388, as compared to a working capital of
$1,616 at June 30, 2000.  This decrease in working capital is
primarily attributable to the accounting and legal fees
associated with bringing the Company current in its reporting
requirements with the SEC.

     The Company has been able to meet its operational needs
through advances from major shareholders.  However, the Company
does not have sufficient cash to meet its operational needs for
the next twelve months.  Management, like in the past, will
attempt to raise capital for its current operational needs
through additional loans from its officers and shareholders, debt
financing, equity financing or a combination of financing
options.  However, there are no existing understandings,
commitments or agreements for such an infusion of capital, and
there are no assurances to that effect.  Moreover, the Company's
need for capital may change dramatically if and during that
period, it acquires an interest in a business opportunity.
Unless the Company can obtain additional financing, its ability
to continue as a going concern is doubtful.

                                     11
<PAGE>

     The Company's current operating plan is to (i) handle the
administrative and reporting requirements of a public company,
and (ii) search for potential businesses, products, technologies
and companies for acquisition.  At present, the Company has no
understandings, commitments or agreements with respect to the
acquisition of any business venture, and there can be no
assurance that the Company will identify a business venture
suitable for acquisition in the future.  Further, there can be no
assurance that the Company would be successful in consummating
any acquisition on favorable terms or that it will be able to
profitably manage any business venture it acquires.

                   PART II.  OTHER INFORMATION

EXHIBITS AND REPORTS ON FORM 8-K

Exhibits

     None

Reports on Form 8-K

     None
                           SIGNATURES

     In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                              GOURMET GIFTS, INC


Date:  August 6, 2001         By:/s/ Johne Phelps
                                     Johne Phelps, President


Date:  August 6, 2001         By:/s/ Lorrie A. Miller
                                     Lorrie A. Miller,
                                     Secretary/Chief Financial Officer

                                      12
<PAGE>