SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


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

        For the Quarterly period ended August 31, 2001

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

        For  the  transition  period  from  ___________  to  _____________

Commission  file  number  000-25335

                                 ELGRANDE.COM, INC.
            (Exact  name  of  registrant  as  specified  in  its  charter)

             Nevada                                       88-0409024
(State  or  other  jurisdiction  of            (IRS Employer Identification No.)
incorporation  or  organization)

                Suite 302, 1132 Hamilton Street, Vancouver, B.C.
                                  V6B2S2 Canada
                    (Address of principal executive offices)

                                 (604) 689-0808
                           (Issuer's telephone number)

The  number  of  shares  outstanding  of  each of the issuer's classes of common
equity  as  of  the  latest  practicable  date:

            Class                                      August  31,  2001
-------------------------------                     -----------------------
Common stock, $ 0.001 par value                           16,957,620






















<PAGE>  1



                               ELGRANDE.COM, INC.

                                TABLE OF CONTENTS


                                                                       Page No.
PART  I.     FINANCIAL  INFORMATION

     ITEM  I  -  Unaudited  Consolidated  Financial Statements

          Accountant's Review Report                                         4

          Consolidated  Balance  Sheets as of  August 31, 2001
         (Unaudited)  and  May  31,  2001                                    5

          Consolidated  Statements  of  Operations
          for  the  Three  Months  Ended  August  31,
          2001  and  2000  (Unaudited)                                       7

          Consolidated Statement of Stockholders' Equity (Deficit)           8

          Consolidated  Statements  of  Cash  Flows
          for  the  Three  Months  Ended  August  31,
          2001  and  2000  (Unaudited)                                       9

          Notes  to  Consolidated  Financial  Statements                     10

     ITEM  2     Management's  Discussion  and  Analysis  of
                 Financial  Condition  and  Results  of  Operations          18

PART  II.     OTHER  INFORMATION


          ITEM  6

          Exhibits  and  Reports  on  Form  8-K                              19

          Signatures                                                         20





















<PAGE>  2



                                ELGRANDE.COM INC.
                        CONSOLIDATED FINANCIAL STATEMENTS
                        =================================

                                 AUGUST 31, 2001






                              WILLIAMS & WEBSTER PS
                          CERTIFIED PUBLIC ACCOUNTANTS
                          ============================
                        BANK OF AMERICA FINANCIAL CENTER
                        ================================
                           W 601 RIVERSIDE, SUITE 1940
                                SPOKANE, WA 99201
                                 (509) 838-5111



                                ELGRANDE.COM INC.

                                TABLE OF CONTENTS



INDEPENDENT  ACCOUNTANT'S  REVIEW  REPORT                                      1

FINANCIAL  STATEMENTS

     Consolidated  Balance  Sheets                                             2

     Consolidated  Statements  of  Operations  and Comprehensive Loss          3

     Consolidated  Statement  of  Stockholders' Equity (Deficit)               4

     Consolidated  Statements  of  Cash  Flows                                 5

NOTES  TO  FINANCIAL  STATEMENTS                                               6


















<PAGE>  3




Board  of  Directors
Elgrande.com,  Inc.
Vancouver,  B.C.
Canada

                           ACCOUNTANT'S REVIEW REPORT
                           --------------------------

We  have  reviewed  the accompanying consolidated balance sheet of Elgrande.com,
Inc. as of August 31, 2001 and the related consolidated statements of operations
and  comprehensive  loss,  stockholders' equity (deficit) and cash flows for the
period  then  ended.  These  financial  statements are the responsibility of the
Company's  management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A  review  of  interim financial
information  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 in accordance with
auditing  standards  generally  accepted  in  the  United States of America, the
objective  of  which  is  the  expression  of an opinion regarding the financial
statements  taken  as  a whole.  Accordingly, we do not express such an opinion.

Based  on our review, we are not aware of any material modifications that should
be  made  to  the  accompanying  financial statements in order for them to be in
conformity with accounting principles generally accepted in the United States of
America.

The  financial statements for the year ended May 31, 2001 were audited by us and
we  expressed  an  unqualified opinion on them in our report dated July 6, 2001,
but  we  have  not  performed  any  auditing  procedures  since  that  date.

As  discussed  in  Note  2,  the Company's realization of a major portion of its
assets  is  dependent  upon  the  Company's ability to meet its future financing
requirements,  and  the  success  of  future  operations.  These  factors  raise
substantial  doubt  about  the Company's ability to continue as a going concern.
Management's  plans  regarding  this  issue  are  also addressed in Note 2.  The
financial  statements  do not include any adjustments that might result from the
outcome  of  this  uncertainty.

/s/ Williams & Webster, P.S.

Williams  &  Webster,  P.S.
Certified  Public  Accountants
Spokane,  WA
October  8,  2001












<PAGE>  4
                               ELGRANDE.COM, INC.
                           CONSOLIDATED BALANCE SHEETS


                                               August  31,       May  31,
                                                   2001           2001
                                               (Unaudited)
                                              --------------  --------------
ASSETS

CURRENT  ASSETS
     Cash                                     $       8,783   $      47,643
     Payroll  tax  refund  receivable                   -             8,049
     GST  tax  refundable                             2,325           1,762
     Prepaid  expenses                                6,133           4,523
                                              --------------  --------------
          TOTAL  CURRENT  ASSETS                     17,241          61,977
                                              --------------  --------------

PROPERTY  AND  EQUIPMENT
     Computer  hardware                              97,972          97,972
     Furniture  and  fixtures                        63,257          62,591
     Database  and  software                        545,645         545,645
     Less accumulated depreciation
       and  amortization                           (370,694)        (333,912)
                                              --------------  --------------
          TOTAL  PROPERTY  AND  EQUIPMENT           336,180         372,296

OTHER  ASSETS
     Employee  expense  advances                     40,008          46,093
     Employee receivable, net of allowance           43,984          40,720
     Deposits                                        33,894          18,164
                                              --------------  --------------
          TOTAL  OTHER  ASSETS                      117,886         104,977
                                              --------------  --------------
          TOTAL  ASSETS                       $     471,307   $     539,250
                                              ==============  ==============























See accompanying notes and accountant's review report.

<PAGE>  5
                               ELGRANDE.COM, INC.
                           CONSOLIDATED BALANCE SHEETS


                                               August  31,       May  31,
                                                   2001           2001
                                               (Unaudited)
                                              --------------  --------------

LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT  LIABILITIES
     Accounts  payable                        $     628,887   $     598,716
     Accrued  liabilities                            57,713          53,684
     Accrued  interest                                2,311           3,745
     Notes  payable                                 186,230         177,575
     Current  portion of long-term debt                 -             9,852
                                              --------------  --------------
          TOTAL  CURRENT  LIABILITIES               875,141         843,572
                                              --------------  --------------

LONG-TERM  DEBT
     Note  payable  related  party                   78,128             -
                                              --------------  --------------
TOTAL  LONG-TERM  LIABILITIES                        78,128             -
                                              --------------  --------------
       TOTAL  LIABILITIES                           953,269         843,572

COMMITMENTS  AND  CONTINGENCIES                         -               -
                                              --------------  --------------

STOCKHOLDERS'  EQUITY  (DEFICIT)
     Common stock, 200,000,000 shares
       authorized, $.001 par value;
       16,957,620 and 15,927,148 shares
       issued and outstanding,
       respectively                                  16,957          15,927
     Stock  options  and  warrants                  781,944         781,944
     Additional  paid-in  capital                 5,048,883       4,990,412
     Accumulated  deficit                        (6,327,770)     (6,083,874)
     Accumulated other comprehensive income (loss)   (1,976)         (8,731)
                                              --------------  --------------
    TOTAL  STOCKHOLDERS' EQUITY (DEFICIT)          (481,962)       (304,322)
                                              --------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  (DEFICIT)                                   $     471,307   $     539,250
                                              ==============  ==============














See accompanying notes and accountant's review report.

<PAGE>  6
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS


                                                   For  the         For  the
                                                  Three Months    Three Months
                                                    Ended           Ended
                                                   August  31,     August  31,
                                                     2001            2000
                                                  (Unaudited)     (Unaudited)
                                                 --------------  --------------

REVENUES                                         $      21,717   $      62,863
COST  OF  REVENUES                                      21,464         119,173
                                                 --------------  --------------
GROSS  PROFIT  (LOSS)                                      253         (56,310)
                                                 --------------  --------------


EXPENSES
     Consulting  fees                                   78,828         136,301
     Marketing  and  public  relations                   1,094             -
     Legal  and  professional  fees                     40,682         236,016
     Salaries                                           33,689          38,730
     Office  and  administration                        50,433          12,068
     Rent                                               12,444          13,822
     Communication                                       2,601           4,322
     Software  and  internet  services                   3,051           1,221
     Depreciation  and  amortization                    19,227          42,156
     Database  construction  and  maintenance              -             6,461
                                                 --------------  --------------
          TOTAL  OPERATING EXPENSES                    242,049         491,097
                                                 --------------  --------------

LOSS  FROM  OPERATIONS                                (241,796)       (547,407)

OTHER  INCOME  AND  (EXPENSES)
     Interest  income                                       23             -
     Interest  expense                                  (2,123)         (1,146)
                                                 --------------  --------------
          TOTAL  OTHER  INCOME  (EXPENSE)               (2,100)         (1,146)
                                                 --------------  --------------

NET  LOSS                                             (243,896)       (548,553)

OTHER  COMPREHENSIVE  INCOME
     Foreign  currency  translation  gain                6,755          18,947
                                                 --------------  --------------

COMPREHENSIVE  LOSS                              $    (237,141)  $    (529,606)
                                                 ==============  ==============

BASIC AND DILUTED NET LOSS PER COMMON SHARE      $       (0.02)  $       (0.05)
                                                 ==============  ==============
WEIGHTED  AVERAGE  NUMBER  OF
  COMMON  STOCK  SHARES  OUTSTANDING,
  BASIC  AND  DILUTED                               16,193,814      11,645,330
                                                 ==============  ==============



See accompanying notes and accountant's review report.

<PAGE>  7
ELGRANDE.COM, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

<table>
                                                                                      Accum-
                                                                                        ulated       Total
                              Common Stock                     Stock                  Other          Stock-
                         -----------------------  Additional   Options     Accum-     Compre-          holders
                         Number                   Paid-in      &           ulated       hensive       Equity
                         Of Shares    Amount      Capital      Warrants    Deficit     Income(Loss)  (Deficit)
                         -----------  ----------  -----------  ----------  ----------  ------------  ----------

                      <c>          <c>         <c>          <c>         <c>         <c>           <c>
Balance, May 31, 2000     12,295,479      12,295    3,857,300     354,950  (4,347,483)      (19,822)  (142,760)
Issuance of common stock
  for cash at an average
  of  $0.50  per  share    1,687,000       1,687      211,813         -           -             -      213,500

Common stock options
  exercised for cash and
  services at $0.39
  per  share                 550,000         550      214,450         -           -             -      215,000

Options issued for
  consulting  fees               -           -            -       542,769         -             -      542,769

Stock issued for debt at
  $1.00 per share             67,000          67       66,933         -           -             -       67,000

Issuance of common stock
  for cash at an average
  of  $0.50  per  share      240,000         240      117,760         -           -             -      118,000

Options exercised at an
  average of $0.62
  per share                  227,000         227      140,200     (74,680)        -             -       65,747

Stock issued for services
  at  $0.45  per  share      600,000         600      167,400         -           -             -      168,000

Stock issued for debt at
  an average of $0.54
  per  share                 260,669         261      139,601         -           -             -      139,862

Options expired                  -           -         74,955     (74,955)        -             -          -

Options issued as
  compensation                   -           -            -        33,860         -             -       33,860

Loss for the year ending
  May  31,  2001                 -           -            -           -    (1,736,391)          -   (1,736,391)

Foreign currency translation
  gain  (loss)                   -           -            -           -           -          11,091     11,091
                         -----------  ----------  -----------  ----------  ----------  ------------  ----------
Balance, May 31, 2001     15,927,148  $   15,927  $ 4,990,412  $  781,944 $(6,083,874) $     (8,731) $(304,322)

Issuance of common
  stock for services
  at an average of
  $0.06 per share            630,472         630       38,871         -           -             -      39,501

Issuance of common
  stock for cash at
  $0.05 per share            400,000         400       19,600         -           -             -      20,000

Loss for the three
  months ending
  August 31, 2001                -            -           -           -      (243,896)          -     (243,896)

Foreign currency
  translation gain               -            -           -           -           -          6,755       6,755
                         -----------  ----------  -----------  ----------  ----------  ------------  ----------
Balance, August 31,
  2001 (Unaudited)        16,957,620  $   16,957  $ 5,048,883  $  781,944 $(6,327,770) $    (1,976)  $(481,962)
                         ===========  ==========  ===========  ==========  ==========  ============  ==========
</table>
See accompanying notes and accountant's review report.
<PAGE>  8
                               ELGRANDE.COM, INC.
                    CONSOLIDATED  STATEMENT  OF  CASH  FLOWS

                                                  For the three   For the three
                                                  Months ended    Months Ended
                                                   August  31,     August  31,
                                                     2001            2000
                                                  (Unaudited)     (Unaudited)
                                                 --------------  --------------
CASH  FLOWS  FROM  OPERATING  ACTIVITIES:
     Net  loss                                   $    (243,896)  $    (548,553)
     Adjustments  to  reconcile  net  loss
       to net cash used by operating
       activities:
         Non-cash  expenses                                -             4,308
         Depreciation  and  amortization                19,227          42,156
         Services paid by issuance of
           common  stock  and  options                  39,501         214,450
         Options issued for professional
          Services                                         -            60,280
       Decrease (increase) in:
          Employee  advance  receivable                  2,821             -
          Other  assets                                  5,876           1,284
          Deposits                                     (15,730)           (108)
          Increase  (decrease)  in:
          Accounts payable                              30,171          43,357
          Accrued  liabilities                           4,029           3,058
          Accrued  interest                             (1,434)            -
                                                 --------------  --------------
 Net  cash  used  in  operating  activities           (159,435)       (179,768)
                                                 --------------  --------------
CASH  FLOWS  FROM  INVESTING  ACTIVITIES:
     Payments  on  leased  equipment                       -            (3,834)
     Purchase  of  property  and  equipment               (666)            -
                                                 --------------  --------------
Net  cash  used  in  investing  activities                (666)         (3,834)
                                                 --------------  --------------
CASH  FLOWS  FROM  FINANCING  ACTIVITIES:
     Proceeds  from  loans                               9,700             -
     Proceeds  from  loans,  related  party             78,128          68,284
     Issuance  of  stock                                20,000          94,050
                                                 --------------  --------------
Net  cash  provided  by  financing  activities         107,828         162,334
                                                 --------------  --------------
Net  increase  (decrease)  in  cash                    (52,273)        (21,268)
Foreign  currency  translation  gain                    13,413          18,956
Cash,  beginning  of  period                            47,643          32,385
                                                 --------------  --------------
Cash,  end  of  period                           $       8,783   $      30,073
                                                 ==============  ==============
SUPPLEMENTAL  DISCLOSURES:
  Cash paid for interest and income taxes:
          Interest                               $       3,745   $         577
                                                 ==============  ==============
          Income  taxes                          $         -     $         -
                                                 ==============  ==============
NON-CASH INVESTING AND FINANCING ACTIVITIES:
     Options  issued  for  professional  fees    $         -     $      60,280
     Non-cash  expenses                          $         -     $       4,308
     Services paid by issuance of stock
       and  options                              $      39,501   $     214,450
See accompanying notes and accountant's review report.
<PAGE>  9
                                ELGRANDE.COM INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 AUGUST 31, 2001

NOTE  1  -  ORGANIZATION  AND  DESCRIPTION  OF  BUSINESS

Elgrande.com  Inc.,  formerly   Intellicom  Internet  Corp   (hereinafter,  "the
Company"),  was incorporated in April 1998 under the laws of the State of Nevada
primarily  for  the  purpose  of developing and marketing internet applications,
specifically  for  books,  software,  audio and video media, and computer games.
The  Elgrande.com  site  is a stand-alone e-commerce site and its future purpose
will  be as a prototype demonstration site for the ShopEngine  suite of software
applications.  The  Elgrande.com  site  will  be  used to demonstrate ShopEngine
software  updates  and  as  a  marketing  tool  to  showcase the capabilities of
ShopEngine  to  prospective  shop  suppliers  and operators.  The name change to
Elgrande.com Inc. was effective on September 19, 1998.  The Company maintains an
office  in  Vancouver,  British  Columbia,  Canada.

Elgrande.com  Inc. formed a wholly owned subsidiary, Yaletown Marketing Corp, to
provide  management  and  administrative  services  for  the  Company.  Yaletown
Marketing  was  incorporated  February  23,  1999 in Victoria, British Columbia,
Canada.

The  Company  announced the launch of www.shopengine.net on July 24, 2001, which
carried  handcrafted  articles  and  artifacts.

The  Company's  year-end  is  May  31.

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

This  summary  of  significant  accounting  policies  of  Elgrande.com  Inc.  is
presented  to  assist  in understanding the Company's financial statements.  The
financial  statements and notes are representations of the Company's management,
which  is  responsible  for  their  integrity and objectivity.  These accounting
policies  conform  to  accounting  principles  generally  accepted in the United
States  of  America and have been consistently applied in the preparation of the
financial  statements.

Principles  of  Consolidation
-----------------------------
The  consolidated  financial  statements include the accounts of the Company and
its  subsidiaries.  All  significant intercompany transactions and balances have
been  eliminated in consolidation.  References herein to the Company include the
Company  and  its  subsidiary,  unless  the  context  otherwise  requires.

Going  Concern
--------------
The  accompanying  financial  statements  have  been  prepared assuming that the
Company  will  continue  as  a  going  concern.

As  shown  in  the  accompanying  financial  statements,  the   Company  has  an
accumulated  deficit  of  $6,327,770 at August 31, 2001.  As of August 31, 2001,
the  Company's  liabilities  exceeded  its  current  assets  by $936,028.  These
circumstances raise substantial doubt about the Company's ability to continue as
a  going concern.  The Company is currently putting a new business plan in place
which  will, if successful, mitigate these factors.  The financial statements do
not include any adjustments relating to the recoverability and classification of
recorded  assets, or the amounts and classification of liabilities that might be
necessary  in  the  event  the  Company  cannot  continue  in  existence.



<PAGE>  10
                                ELGRANDE.COM INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 AUGUST 31, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES (CONTINUED)

Going  Concern (continued)
--------------------------
An  estimated  $1  million  is  believed  necessary  to  continue operations and
increase  development through the fiscal year.  The timing and amount of capital
requirements  will  depend on a number of factors, including demand for products
and  services  and the availability of opportunities for international expansion
through  affiliations  and  other business relationships.  Management intends to
seek new capital from new equity securities issuances to provide funds needed to
increase liquidity, fund internal growth, and fully implement its business plan.

Accounting  Method
------------------
The  Company's  financial  statements  are  prepared using the accrual method of
accounting.

Earnings  per  Share
--------------------
The  Company  has  adopted Statement of Financial Accounting Standards Statement
(SFAS)  No. 128, Earnings Per Share.  Basic loss per share is computed using the
weighted  average  number  of  common  shares outstanding.  Diluted net loss per
share  is the same as basic net loss per share, as the inclusion of common stock
equivalents  would  be  antidilutive.  As  of  August  31, 2001, the Company had
convertible  debt  of  $250,431,  which  is  included in notes payable and notes
payable,  related  party, that would be equivalent to 5,565,133 shares of common
stock,  which  are  considered  to  be  antidilutive.

Cash  and  Cash  Equivalents
For  purposes  of  the  Statement  of  Cash  Flows,  the  Company  considers all
short-term  debt securities purchased with a maturity of three months or less to
be  cash  equivalents.

Provision  for  Taxes
---------------------
Income taxes are provided based upon the liability method of accounting pursuant
to  SFAS  No.  109 "Accounting for Income Taxes."  Under this approach, deferred
income  taxes  are  recorded  to reflect the tax consequences on future years of
differences  between the tax basis of assets and liabilities and their financial
reporting  amounts  at each year-end.  A valuation allowance is recorded against
deferred tax assets if management does not believe the Company has met the "more
likely  than  not" standard imposed by SFAS No. 109 to allow recognition of such
an  asset.

At  May  31,  2001,  the  Company  had  net  deferred  tax assets of $1,300,000,
principally  arising  from  net  operating  loss  carryforwards  for  income tax
purposes.  As  management of the Company cannot determine that it is more likely
than  not  that  the  Company  will  realize the benefit of the net deferred tax
asset,  a  valuation  allowance  equal  to  the  net deferred tax asset has been
established  at  May  31,  2001.

At  May  31,  2001,  the   Company  has  net  operating  loss  carryforwards  of
approximately  $5,200,000,  which  expire  in  the years 2019 through 2021.  The
Company  recognized  approximately $777,285 of losses for the issuance of common
stock  for  services  in  2001,  which  were  not  deductible  for tax purposes.



<PAGE>  11
                                ELGRANDE.COM INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 AUGUST 31, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES (CONTINUED)

Fair  Value  of  Financial  Instruments
---------------------------------------
The carrying amounts for cash, deposits, prepaid expenses, receivables, accounts
payable,  loans  and  notes  payable,  accrued liabilities, and convertible debt
approximate  their  fair  value.

Use  of  Estimates
------------------
The  process  of  preparing  financial  statements in conformity with accounting
principles  generally  accepted in the United States of America requires the use
of  estimates  and  assumptions  regarding certain types of assets, liabilities,
revenues,  and   expenses.   Such   estimates  primarily  relate   to  unsettled
transactions  and   events  as  of  the   date  of  the   financial  statements.
Accordingly,  upon settlement, actual results may differ from estimated amounts.

Compensated  Absences
---------------------
Employees  of  the  Company  are  entitled  to paid vacation, paid sick days and
personal days off, depending on job classification, length of service, and other
factors.  It  is impracticable to estimate the amount of compensation for future
absences,  and,  accordingly, no liability has been recorded in the accompanying
financial  statements.  The  Company's  policy  is  to  recognize  the  costs of
compensated  absences  when  actually  paid  to  employees.

Foreign  Currency  Translation  Gains/Losses
--------------------------------------------
The  Company  has adopted Financial Accounting Standard No. 52.  Monetary assets
and  liabilities  denominated  in  foreign currencies are translated into United
States  dollars at rates of exchange in effect at the balance sheet date.  Gains
or  losses  are included in income for the year, except gains or losses relating
to  long-term  debt  which are deferred and amortized over the remaining term of
the debt.  Non-monetary assets, liabilities and items recorded in income arising
from  transactions  denominated in foreign currencies are translated at rates of
exchange  in  effect  at  the  date  of  the  transaction.

Advertising  Costs
------------------
Advertising  costs  are  charged  to  operations  when  they  occur.

Revenue  and  Cost  Recognition
-------------------------------
Revenues  and  costs  are  recognized  at  the  time  of  sale  of  products.














<PAGE>  12
                                ELGRANDE.COM INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 AUGUST 31, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES (CONTINUED)

Recent  Accounting  Pronouncements
----------------------------------
In  September  2000,  the FASB issued SFAS No. 140 "Accounting for Transfers and
Servicing  of  Financial  Assets  and   Extinguishment  of   Liabilities."  This
statement  provides   accounting  and  reporting  standards  for  transfers  and
servicing  of  financial  assets  and  extinguishment  of  liabilities  and also
provides  consistent  standards for distinguishing transfers of financial assets
that  are  sales  from  transfers  that are secured borrowings.  SFAS No. 140 is
effective for recognition and reclassification of collateral and for disclosures
relating  to  securitization transactions and collateral for fiscal years ending
after  December  15,  2000,  and  is  effective  for  transfers and servicing of
financial  assets  and  extinguishments of liabilities occurring after March 31,
2001.  The  Company  believes that the adoption of this standard will not have a
material  effect  on  the Company's results of operations or financial position.

Derivative  Instruments
-----------------------
The  Financial  Accounting  Standards  Board   issued  Statement   of  Financial
Accounting  Standards  ("SFAS")  No. 133, "Accounting for Derivative Instruments
and  Hedging Activities," as amended by SFAS No. 137, "Accounting for Derivative
Instruments  and Hedging Activities - Deferral of the Effective Date of FASB No.
133",  and  SFAS  No.  138,  "Accounting  for Certain Derivative Instruments and
Certain Hedging Activities", which is effective for the Company as of January 1,
2001.  This  standard  establishes   accounting  and  reporting   standards  for
derivative  instruments,  including  certain  derivative instruments embedded in
other  contracts,  and  for  hedging  activities.  It  requires  that  an entity
recognize  all  derivatives  as either assets or liabilities in the consolidated
balance  sheet  and  measure  those  instruments  at  fair  value.

If  certain conditions are met, a derivative may be specifically designated as a
hedge, the objective of which is to match the timing of gain or loss recognition
on  the  hedging  derivative with the recognition of (i) the changes in the fair
value  of the hedged asset or liability that are attributable to the hedged risk
or  (ii)  the  earnings  effect  of  the  hedged  forecasted  transaction. For a
derivative  not  designated  as  a  hedging  instrument,  the  gain  or  loss is
recognized  in  income  in  the  period  of  change.

Historically,  the  Company  has not entered into derivatives contracts to hedge
existing  risks  or  for  speculative  purposes.

At  August  31, 2001, the Company has not engaged in any transactions that would
be  considered  derivative  instruments  or  hedging  activities.

NOTE  3  -  PROPERTY  AND  EQUIPMENT

Property  and  equipment  are stated at cost.  Depreciation and amortization are
provided  using  the straight-line method over the estimated useful lives of the
assets.  The  useful  lives  of  property,  plant  and equipment for purposes of
computing  depreciation  and  amortization  are  three  and  five  years.
Depreciation and amortization expense for the three months ended August 31, 2001
and  2000  were  $19,227  and  $42,156,  respectively.





<PAGE>  13
                                ELGRANDE.COM INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 AUGUST 31, 2001

NOTE  4  -  INTANGIBLE  ASSETS

The Company has capitalized $545,645, which is the contractual cost of data base
software  purchased  from  an independent software supplier.  No portion of this
software  was internally developed and, accordingly, there are no internal costs
associated  with  this  software which were charged to research and development.
Consistent  with SOP 98-1, the costs of this software-which was purchased solely
for  internal  use  and  will  not be marketed externally-have been capitalized.


NOTE  5  -  COMMON  STOCK  AND  WARRANTS

During  the three months ended August 31, 2001 the Company issued 400,000 shares
of  common  stock at $0.05 per share and 630,472 for services valued at $39,501.

During the year ended May 31, 2001, the Company issued for cash 1,687,000 shares
of  common  stock  for  $331,500 and 600,000 shares of common stock for services
valued  at  $168,000.  In  the  same  twelve  month period, 327,669 common stock
shares  were  issued  in exchange for debt in the amount of $206,862 and 777,000
common  stock  options were exercised for cash of $66,297 and services valued at
$289,130.

NOTE  6-STOCK  OPTIONS

During  the  year  ended  May 31, 2001, the board of directors granted 2,472,556
options  in exchange for consulting services and also granted 110,000 options as
employee  compensation.  The  Company  valued  these  services at $542,769.  The
options  issued have an average exercise price of $0.45.  The fair value of each
option  granted  is  estimated  on the grant date using the Black-Scholes Option
Price  Calculation.  The  following  assumptions  were  made  in estimating fair
value:  risk  free  interest rate is 6% and 7%, volatility is 3.19, and expected
life  is  0  to  5  years.

During  the year ended May 31, 2000, the Company's board of directors authorized
the  exercise  of  options  to acquire 135,000 common stock shares for $1.00 per
share.

The  Company has adopted the Elgrande.com Inc. 1998 Directors and Officers stock
option plan and the Elgrande.com Inc. 1999 stock option plan.  These plans allow
the  Company  to  distribute  up  to  6,000,000 shares of common stock.  Options
issued under the 1999 plan went to 220,000 shares exercisable at $3.00 per share
before  June  2000.  Options issued under the 1998 plan amount to 850,000 valued
at  $50,000  for  services.

The  fair  value of each option granted is estimated on the grant date using the
Black-Scholes  Option Price Calculation.  The following assumptions were made in
estimating  fair  value:  risk-free  interest rate is 5%, volatility is 0.5, and
expected  life  is  5  years.  During  the year ending May 31, 1999, the Company
issued  1,000,000  common stock options that may be exercised at any time before
March  15,  2004  at $1.00 per share.  The strike price of these options exceeds
the  options' minimum value calculated using the Black-Scholes model, therefore,
no  compensation  costs  have  been  recognized pursuant to Financial Accounting
Standard  No.  123.

The  following  is  a  summary  of  stock  option  activity:



<PAGE>  14
                                ELGRANDE.COM INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 AUGUST 31, 2001

NOTE  6-STOCK  OPTIONS (CONTINUED)

                                                          Weighted Average
                                     Number of Shares     Exercise Price
                                     ----------------     ----------------
Outstanding at 5-31-00                    1,595,000       $        0.82
     Granted                              2,582,556                0.45
     Exercised                             (777,000)               0.45
    Forfeited                              (465,556)               0.45
                                     ----------------     ----------------
Outstanding at 5-31-01                    2,935,000       $        0.63
                                     ================     ================
Options exercisable at 5-31-01            2,935,000       $        0.63
                                     ================     ================
Weighted average fair value of
  options granted during 2001                             $        0.22
                                                          ================

During  the  three  months ended August 31, 2001, there were no options granted,
exercised  or  expired.

NOTE  7  -  RELATED  PARTIES

Certain  consultants   which   received  common   stock  under   the   Company's
non-qualified  stock  option  plan  are  related  to the Company's directors and
stockholders.  Of  the  850,000  shares  issued  to consultants in 1999, 187,500
shares  were  issued to family members of directors who provided services to the
Company.  See  Note  6.

During the year ending May 31, 2000, the Company paid its officers and directors
$284,790  in  consulting  fees.  During the year ended May 31, 2001, the Company
paid  its  officers  and  director  $90,117  in  consulting  fees.

At  August  31,  2001,  the  Company was owed $86,204 from former employees.  An
allowance  of  $42,220  has  been  recorded  against  this  receivable.

NOTE  8  -  COMMITMENTS  AND  CONTINGENCIES

Lease  Commitments
------------------
The  Company  leases  office  space in Vancouver, B.C., Canada from Royal LePage
Commercial,  Inc. for $4,000 per month.   The lease is effective from October 1,
2001  to  October 31, 2005.  The terms of the lease required the Company to give
the  lessor  $16,000 refundable security deposit.  During the year ended May 31,
2000,  this  deposit  was  applied  to  rent.













<PAGE>  15
                                ELGRANDE.COM INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 AUGUST 31, 2001

NOTE  8  -  COMMITMENTS  AND  CONTINGENCIES (CONTINUED)

Lease  Commitments (Continued)
------------------------------
Future  minimum  rental  commitments under the operating lease are as follows at
August  31,  2001:

Year  Ending:
     May 31, 2002          $     13,464
     May 31, 2003          $     48,000
     May 31, 2004          $     48,000
     May 31, 2005          $     48,000

The  Company  leases telephone equipment under a capital lease expiring June 23,
2002.  The asset and liability under the capital lease are recorded at the lower
of  the  present  value  of  the minimum lease payments or the fair value of the
asset.  Depreciation  of  the  asset  under  capital  lease  is  included in the
Company's  recorded  depreciation  expense.

Future  minimum  lease  commitments  under  the  capital  lease  are as follows:

Year  Ending  May  31,  2002                                   $  9,852


Disputed  Accounts
------------------
The  Company  is  currently  in  dispute with MacDonald Harris & Associates Ltd.
("MHA")  regarding  consulting and computer services for the Company's database.
Management  believes  that  there  are  no outstanding amounts due to MHA as all
accounts  payable  from the Company to MHA were paid in full and the Company has
transferred  138,000  shares of common stock which was due to MHA.  However, MHA
claims  that  additional  amounts  may  be  due,  including  common stock in the
Company,  which the Company disputes.  Management believes that MHA's claims are
without  merit and has made no provisions in the financial statements concerning
any  of  these  matters.  Further, management is taking steps to recover capital
equipment  purchased  on  behalf  of  the  Company  by  MHA.

NOTE  9  -  CONCENTRATION  OF  CREDIT  RISK  FOR  CASH  HELD  AT  BANKS

Cash
----
The  Company maintains cash balances at two banks.  Accounts at each institution
are  insured  by  the  Canadian  Depository  Insurance up to $60,000 in Canadian
funds.  At  August  31,  2001,  no  accounts  exceeded  this  limit.

Economic  Dependency
--------------------
During the three months ended August 31, 2001, the Company purchased 100% of its
product  line  from  one  supplier.









<PAGE>  16
                                ELGRANDE.COM INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 AUGUST 31, 2001

NOTE  10  -  NOTES  AND  DEBENTURES  PAYABLE

Short-term  Notes
-----------------
During  the  three  months  ended  August 31, 2001, private investors loaned the
Company  $239,903,  which is convertible to common stock at $0.50 per share.  In
lieu  of  cash  repayment  of  the  loan, the investors were entitled to receive
common  stock  at  a discounted rate of 20% of the closing price of the stock on
July  31,  2000.  During  the  year  ended May 31, 2001, 67,000 shares of common
stock  were issued at $1.00 per share and another 215,727 shares of common stock
were  issued  for  $94,920  to  satisfy  a  portion  of  this  loan.

A  related party, the father of the co-founder of Elgrande.com, Inc., has loaned
the  Company  $30,000  which  was  satisfied  with 44,942 shares of common stock
during  the  year  ended  May  31,  2001.

Debentures
----------
In January 2001, the Company issued 12%, subordinated convertible debentures for
a  total  of $128,216.  The debentures mature on various dates beginning January
1,  2002  through  May 2002 and pay simple interest quarterly beginning April 1,
2001.  The  debentures  are  convertible  to  common stock at a conversion price
equal  to  the  average  closing bid price for the five trading days immediately
prior  to  the  conversion  date.

NOTE  11  -  INVESTMENT  IN  INDIGO  CITY  PARTNERSHIP

In  June  1999,  the  Company  entered  into  an electronic media agreement with
Hydrogen Media, Inc. ("HMI"), whereby both parties agreed to build an e-commerce
web  site.  Under  the  partnership,  which  is  referred  to as the Indigo City
Partnership,  the  Company  was  to provide all content for the web site and HMI
will  provide  all  programming.

The  Company  was  obligated  to  pay a total of $60,000 to HMI for its services
under  the  contract.  At  the  financial  statement  date, the Company had paid
$30,000  in  cash  and  recorded  the  remaining  $30,000 as an account payable.
During  the  year ended May 31, 2001, it was determined that contracted services
had  not  been  provided,  and  the  Company withdrew from the partnership.  The
Company  recorded a loss of $30,000 which is included in impairment of assets in
the  accompanying  financial  statements


















<PAGE>  17
                               ELGRANDE.COM, INC.

Item  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF  OPERATION

Results  of  Operations
-----------------------

There  are  revenues  of  $21,717  for  the  quarter  ended  August  31,  2001,
representing  sale  of  merchandise, versus  $62,863 as at August 31, 2000.  The
Company activated its web site for test purposes in June 1999 and has been fully
operational  since  January  1,  2000.

Comparison  of  the  quarter  ended  August  31,  2001  and  2000
-----------------------------------------------------------------

A  summary  of  expenses  for the quarter ended August 2001 compared to the same
period  in  2000  is  as  follows:

                                                  2001          2000
                                              ------------  ------------

          Consulting                               78,828       136,301
          Marketing  and  public  relations         1,094           -
          Software  and  internet  fees             3,051         1,221
          Administration,  legal  and  other      139,849       311,419
          Depreciation  and  amortization          19,227        42,156
                                              ------------  ------------
                                                  242,049       491,097
                                              ============  ============

Software  costs  include  database  development  costs incurred of $3,051 in the
quarter ended August 31, 2001.  Elgrande began operating under its own developed
database  in  January 2000; while the company continues to develop this database
site,  it is currently identifying and sourcing technology partners to assist in
the  growth  of  its  database  technology.

Administration  costs  include  payroll  costs  of  $33,689 and office expenses,
including professional fees, of  $106,160 for the quarter ended August 31, 2001,
compared  to  $38,730 and $272,689 respectively for the same period ended August
31,  2000.

The  Company  budgeted  its  cash requirements in order to develop the web based
contact  management system, and the central database that holds product data. To
date,  costs have been within the established budget.  The site was activated on
June  2,  1999  for  test  purposes.

Liquidity  and  Capital  Resources
----------------------------------

Since  our  inception, we have financed our operations through the proceeds from
the  issuance  of  equity  and  debt  securities and loans from shareholders and
others.  To  date,  we  have  raised  approximately  $5 million from the sale of
common  stock  and  have  borrowed  approximately  $267,000  from  investors and
shareholders.  Funds  from  these  sources  have been used as working capital to
fund  the  on-going  development  of  the  Elgrande  and  Shopengine  websites.

We  generated  negative  cash flow from operating activities for the period from
inception (April 8, 1998) through August 31, 2001.  Investing activities for the
period  from  inception  through  August  31,  2001  consisted  primarily of the
purchase  of  property  and  equipment.

<PAGE>  18
                               ELGRANDE.COM, INC.

The  timing  and  amount  of our capital requirements will depend on a number of
factors,  including demand for our products and services and the availability of
opportunities  for  international     through  affiliations  and  other
business  relationships.

                                    PART II.
                                OTHER INFORMATION


Item  6.  Exhibits  and  Reports  on  Form  8-K

(a)     EXHIBITS

The  following  Exhibits  are  filed  by  attachment:

EXHIBIT

NUMBER        DESCRIPTION
-----------   -----------

Ex  10.12     Sublease  Agreement  of  Company's  Offices  dated  August 7, 2001
Ex  10.13     Addendum  to  the  Sublease  dated  August  22,  2001
Ex  10.14     Consulting  Agreement  between  Company  and  Paul  Morford

In  addition  to  those  Exhibits  shown  above,  the  Company  incorporates the
following  Exhibits  by  reference  to  the  filings  set  forth  below:

(b)     Reports  on  Form  8-K  relating  to  the quarter ended August 31, 2001.

The Company did not file any reports on Form 8-K during the quarter ended August
31,  2001.





























<PAGE>  19
                               ELGRANDE.COM, INC.

SIGNATURES


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



                                   ELGRANDE.COM,  INC.



By:     /s/  Michael  F.  Holloran
-------------------------------------
Michael  F.  Holloran
President  and  Chief  Executive  Officer


Dated:     October  15,  2001








































<PAGE>