<PAGE>
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB

(Mark One)

[X] Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of
    1934

                   For the fiscal year ended December 31, 2001

                                       Or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934

          For the transition period from ____________ to _____________

                        COMMISSION FILE NUMBER 000-28661

                             AUGRID OF NEVADA, INC.
             (Exact name of registrant as specified in its charter)

            NEVADA                                       88-0219656
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)

                  2275 EAST 55TH STREET, CLEVELAND, OHIO 44103
               (Address of Principal Executive Offices; Zip Code)

                                  216.426.1589
                (Issuer's Telephone Number, including Area Code)

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

Securities registered under Section 12(g) of the Exchange Act: Common Stock,
par value $0.01 per share

Check whether the issuer: (1) 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 registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

Yes [X]            No [ ]

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

State issuer's revenues for its most recent fiscal year:

The approximate aggregate market value of the Common Stock held by
non-affiliates of the registrant, based upon the closing price of the Common
Stock reported on OTCBB was $0/013 on March 28, 2002.

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 64,364,720 shares of common stock at
March 28, 2002.

Transitional Small Business Disclosure Format (check one):

Yes [ ]           No [X]

                       DOCUMENTS INCORPORATED BY REFERENCE

The information called for by Part III is incorporated by reference from the
definitive proxy statement (the "Proxy Statement") for the Company's Annual
Meeting of Stockholders to be held later this year. It is anticipated that the
Proxy Statement will be filed with the Securities and Exchange Commission and
mailed to the Company's stockholders no later than April 30, 2002. If the Proxy
Statement is not filed by that date, the Company will amend this Annual Report
on Form 10-KSB, no later than April 30, 2002, to include the information
required by Part III.


<PAGE>



In addition to historical information, this Annual Report on Form 10-K contains
forward-looking statements. These statements may contain words such as
"expects," "anticipates," "intends," "plans," "believes," "estimates," or other
words indicating future results. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those reflected in the forward-looking statement. The Company
undertakes no obligation to revise or publicly release the results of any
revision to these forward-looking statements. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements.

                                     PART I

ITEM 1.  DESCRIPTION OF BUSINESS

GENERAL

The Company's predecessor was formed under the name Ironwood Ventures, Inc.
("Ironwood") by the filing of Articles of Incorporation with the Secretary of
State of the State of Nevada on August 4, 1995. On March 2, 1998, following a
change of control, the Company changed its name to AuGRID of Nevada, Inc. The
Company effectively commenced operations on March 15, 1998. Its executive
offices are located at 2275 East 55th Street, Cleveland, Ohio 44130, and its
telephone number is 216.426.1589.

The Company has an exclusive license to use a certain thin cathode ray tube
technology to manufacture and market flat panel display products for the
transportation industry. Although the Company has no current manufacturing or
sales operations utilizing its rights to such technology, it intends, within the
next twelve months, to begin the manufacture of thin cathode ray tubes for a
broad range of flat panel display product applications for the transportation
industry.

INDUSTRY BACKGROUND

During the last 25 years, flat-panel displays (small, lightweight, flat
instruments that display digital information, "FPD") have been undergoing
technological improvements to provide a better quality image. In addition, the
growth of FPD sales is being accelerated by the emerging portable electronic
products market, as evidenced by the vigorous emergence of small, portable video
cameras, portable video games, handheld television sets, video displays in the
rear seats of vans, and personal digital assistants. As FPD sales grow, however,
most customers seem to become dissatisfied with the cost, performance and
availability tradeoffs inherent in the current technology used in FPDs. This
dissatisfaction presents an opportunity for the products and technology the
Company offers.

PRODUCTS

By employing the use of vacuum microelectronics technology, the Company's
licensor in conjunction with a British Research Facility has developed a very
thin device called field emission display ("FED") that provides a technological
breakthrough in cathode ray tube ("CRT") monitors. These FEDs are high-
resolution, full-color displays with all of the operating characteristics of a
standard cathode ray tube. FEDs are solid-state vacuum displays that are based
on the emission of electrons from a multiple-thin-film, micron- size,
field-emission cathodes arrayed on a flat-glass substrate. Because the display
is matrix addressed - row and column-patterned electrodes - the advantages of a
line-at-a-time digital address is retained. As a result, the FED becomes a truly
flat, low-power display with high resolution and high brightness; in addition,
the patented spacer technology from the Company's licensor's British facility
allows for a glass thickness of 8 mm, resulting in a FPD that will be thin,
light, and scalable to larger sizes without increasing the glass thickness.


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This new product will be able to provide a reliable, low-power,
video-addressable color FED at a low cost. It initially will be targeted to the
automotive industry, proven successful with target sales and marketing goals
met. The Company will seek and negotiate additional applications, including not
limited to computer monitor and on-the-wall- television applications.

Initially the Company will produce for the automobile industry, although the
thin cathode ray tube ("TCRT") technology is designed to also meet the demands
of other applications, including outdoor video advertising, television and
computer monitors, as well as commercial, medical and military screen
applications. Management recognizes that the technology will address three basic
market demands - lower cost, power efficiency and performance level. The
Company's goal is to become a broad-based provider of display screens and
monitors. However, the Company does not yet manufacture any products employing
this technology.

COMPETITION

Competition for the Company's products will come from active matrix
liquid-crystal displays, plasma displays and electro-luminescent panels.
However, these products are hindered by the limitations of their underlying
technologies. For example, the user usually has to experiment to find the
optimal angle to view one of these screens; if there is direct sunlight, the
screen becomes difficult to view. These technologies become expensive when
producing full-color and high-image refreshment rates-not a problem when most
FPDs did not require those features. With the demands now being made on mobile
communications, however, wireless and video industries are at decision points;
these industries' future will be determined by their ability to develop and
provide a product that is currently not available, and to do it economically.
Management believes the Company can efficiently manufacture FPDs with enhanced
color and video rates without the significant power, thickness and cost
penalties generally attributed to liquid crystal displays with comparable
features. Management is confident that the Company's licensed TCRT/FED
technology is better than the current alternatives and that the Company will be
able to provide the hardware to support the demand for such technology.

The Company's exclusive licensing agreement denotes what is believed to be the
first truly operational, scalable and replicable FPD technology. In addition,
management believes the uniqueness of the proprietary technology resides with
the incorporation of a proprietary ceramic backplane. This uniqueness will
permit the Company to hurdle pricing, power and size obstacles that currently
face all other manufacturers in the FPD industry.

RESEARCH AND DEVELOPMENT

The Company spent approximately $1,350,000 in 2000 and $100,000 in 2001 for
research and development costs, an aggregate of approximately $1,450,000 for the
last two fiscal years. Although the Company currently is producing no FPD
products and has no customers for such products, it expects that these costs
ultimately will be recovered in the prices it charges for its FPD products.

Of the amount spent in 2000, $1,000,000 was paid to CeraVision Limited as a part
of a $3,000,000 fee for its services in developing certain flat panel display
prototypes and building manufacturing lines for the purpose of producing such
displays. The second $1,000,000 installment of the fee is due on demand, but
CeraVision Limited is withholding demand while the Company is exploring a
strategic business combination. The final $1,000,000 installment of the fee will
not be due until the Company receives the last


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of ten (10) prototype production lines complying with certain specifications.
The remaining $350,000 amount in 2000 and the $100,000 amount in 2001 were paid
to CeraVision Limited for other FPD research and development services not
covered by the $3,000,000 fee.

PATENT LICENSE; ROYALTIES

The Company has obtained an exclusive patent license from CeraVision Limited to
use certain ceramic- based field emission flat panel display technologies to
manufacture and market products for the transportation industry. Pursuant to the
terms of the license, the Company will be required to pay royalties to its
licensor. These royalties are based upon production. On July 1, 2001, the
Company became subject to a minimum quarterly royalty payment in the amount of
$500,000, irrespective of production, for the fiscal quarter ended September 30,
2001. Although the first payment was due on October 7, 2001, the licensor has
deferred the Company's obligation to make any royalty payments, while the
Company pursues a strategic business combination.

MARKETING STRATEGIES

Advertising

The Company's goal over the next two years is to create enough visibility to
support its product line in the domestic automobile industries as well as
foreign markets. To accomplish this, the Company will advertise in various trade
publications and business magazines, keeping track of the results to maximize
the return of its advertising expenses and attend trade shows in America and
abroad.

Sales

Initially the Company plans to sell directly to 1st and 2nd tier original
equipment manufacturers. Management also has identified several large retail
buying associations, such as NATM Buying Corporation and MARTA Cooperative of
America. Each buying association represents a substantial number of large
electronic appliance retailers that may be interested in acquiring flat-panel
screens in large quantities for regional distribution among buying group
members.

Goals

The worldwide display market is currently $40 billion per year, and it is
projected to be over $60 billion by 2005; the FPD market is approximately $9.5
billion and estimated to be $35 billion by 2005. Management believes its FPD
will have the potential to displace other display technologies because of its
cost effectiveness, efficiency and overall advanced product.

Management also anticipates developing strong ties with major computer
manufacturers, such as Dell, Gateway, Phillips in Europe and IBM in America.
Although these relationships are not currently solidified, the Company's goal
within the next three years is to become synonymous with leading-edge technology
in the laptop and desk-mounted computer monitor market and the evolving
television industry, such as wall- mounted digital televisions. The Company is
committed to the production of superior display technology products that are
exclusively designed to change the way people see things. Through world-class
practices and a persistent commitment to excellence, the Company hopes to be the
best in every market it elects to serves.



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REGULATION

Existing or probable governmental regulations have not had (and are not expected
to have) any material impact on the Company's operations, and the costs and
effects of compliance with federal, state and local environmental laws are
minimal.

EMPLOYEES

The Company has four full-time employees and no part-time employees. The
Company's management team currently is comprised of two persons, a Chief
Executive Officer and a Secretary/Treasurer. However, through consultation with
advisors and board members, management has identified key personnel who may be
available to fill management positions, as soon as the Company has the funds to
compensate them. These include a Chief Operations Officer, a Chief Financial
Officer, an Executive Vice President, a Controller and a Vice President of
Manufacturing and a Vice President of Sales and Marketing. The Company also
intends to hire experienced high-tech sales personnel

ITEM 2.  DESCRIPTION OF PROPERTY

The Company's corporate headquarters are located at 2275 East 55th Street,
Cleveland, Ohio 44103 in approximately 1,500 square feet of leased office space.

The Company has entered into a letter of understanding with the City of Akron,
Ohio for the purchase or lease (with an option to purchase) of an approximately
five-acre parcel of land in the city's Ascot Industrial Park. The Company
intends to build a manufacturing facility on that parcel.

The Company does not have any additional facilities, but management believes the
leased space is in good condition and adequate for the Company's current office
and administrative requirements and the proposed facility in Ascot Industrial
Park will be adequate for manufacturing operations for the foreseeable future.

ITEM 3.  LEGAL PROCEEDINGS

The Company is not a party to any pending material legal proceeding.

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

No matter was submitted to a vote of security holders during the fiscal quarter
ended December 31, 2001.

                                     PART II

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

Although shares of Common Stock sometimes trade on the OTCBB under the symbol
"AGNV," there is no active public trading market for such shares. Shares of
Common Stock have traded on the OTCBB since October 17, 2000, and during that
time the per share price has widely ranged from $0.01 to $0.18. The table


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below sets forth the high and low bid prices for each completed fiscal quarter
since October 17, 2000. In addition, some shares were sold in private
transactions at a purchase price of $0.50 per share prior to the date the
Company's shares traded on the OTCBB, and the Company's outstanding Convertible
Subordinated Debentures were converted to shares at a conversion price of $0.50
per share at immediately after trading on the OTCCB commenced, pursuant to a
mandatory conversion provision of the Company's agreement with debenture
holders.


   FISCAL QUARTER ENDED             HIGH BID PRICE      LOW BID PRICE
   --------------------------- ------------------- ------------------
   December 31, 2001                             $                  $
   --------------------------- ------------------- ------------------
   September 30, 2001                        $0.10             $0.008
   --------------------------- ------------------- ------------------
   June 30, 2001                             $0.18              $0.04
   --------------------------- ------------------- ------------------
   March 31, 2001                            $0.02              $0.02
   --------------------------- ------------------- ------------------
   December 31, 2000                         $0.04            $0.0375
   --------------------------- ------------------- ------------------

The quotations set forth in the table above reflect inter-dealer prices, without
retail mark-up, mark-down or commission, and such prices may not represent
actual transactions.

As of March 28, 2002, there were outstanding 64,364,720 shares of Common Stock
held of record by 676 persons. The Company has not paid any dividends on its
common stock during the last two fiscal years, and, although it has no plan to
pay dividends on such stock at any time in the foreseeable future, there are no
restrictions that limit its ability to pay dividends..

ITEM 6. PLAN OF OPERATION

GENERAL

The Company is a research and development company in the development stage. Its
business objective is to exploit technologies that assist in the development of
proprietary flat panel display technology. The Company has secured licensee
rights to what is believed by management to be the first truly flat panel, FED
(Field Emission Device), display technology. This technology incorporates a
proprietary ceramic backplane that management believes will allow manufacturers
to overcome pricing, power and size obstacles currently facing many other
manufacturers in the flat panel display industry.

To date the Company has been engaged in securing funding, obtaining rights as a
licensee to the flat panel display technology critical to the Company's
business, finding and securing a management team and board of directors,
developing a business plan and conducting preliminary market research.
Management believes that there is a significant market for the flat panel
displays that the Company will manufacture and market to the automotive
industry.

Pursuant to its business plan, the Company has contracted for the manufacture of
a pilot production line at a cost to the Company of $1,200,000. It is
anticipated that the line will be completed and that production of flat panel
displays will commence in the fourth quarter of 2003.

CASH REQUIREMENTS

The Company will have cash requirements of approximately $5,000,000 during the
next twelve months. During that period, the Company will be obligated to pay an
installment payment in the amount of $1,000,000 for the manufacture of its pilot
production line; approximately $1,000,000 for general


<PAGE>



administrative and operating costs, including legal and accounting fees and the
hiring of several additional key employees; approximately $676,800 to repay debt
(plus interest in the amount of 10% on $250,000 of that amount from June 18,
2001); and the remainder to establish a manufacturing facility and fund further
research and development activities. In addition, if the requisite ten
production lines prototypes are delivered during the next twelve months, the
Company will be obligated to pay the final $1,000,000 installment for the
manufacture of the production lines, and the Company also may be obligated for
the payment of minimum royalty payments under its patent license, even if the
Company is not then producing products for sale.

To date, the Company's cash requirements have been met from the proceeds of
private offerings of its common stock and the issuance of its debt securities.
The Company has generated no revenues from operations to date. The Company
expects that revenues over the next twelve months will be inadequate to meet
working capital requirements, and the Company is considering a strategic
combination that will provide the necessary working capital to conduct
operations as planned. If the Company is unable to complete the contemplated
combination, it is unlikely that it will be able to continue operations unless
it can raise substantial proceeds from one or more private or public offerings
of its securities. The Company has no significant cash or other material assets
nor revenues to cover its operating costs to allow it to continue as a going
concern during such period. The Company expects to generate sufficient revenues
from operations to cover its costs beginning in 2003.




<PAGE>



ITEM 7 FINANCIAL STATEMENTS

                          INDEPENDENT AUDITOR'S REPORT

To Board of Directors and Stockholders
AuGRID of Nevada, Inc.

I have audited the accompanying balance sheet of AuGRID OF NEVADA, INC. (A
Development Stage Company) as of December 31, 2001, and the related statements
of income, retained earnings and cash flows for the year then ended. These
financial statements are the responsibility of management. My responsibility is
to express an opinion on these financial statements based on my audit.

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

In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of AuGRID OF NEVADA, INC. (A
Development Stage Company) as of December 31, 2001, and the results of its
operations and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.

The accompanying financial statement have been prepared assuming that the
company will continue as a going concern. The company is a development stage
company engaged in the development and marketing of Flat Panel Display. As
discussed in Note 1 of the financial statements, the company's operating losses
since inception and the deficit accumulated during the development stage raise
substantial doubt about its ability to continue as a going concern. Management's
plan concerning these matters are also described in note 1. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainly.

/s/ Henry L. Creel Co., Inc.

March 26, 2002









<PAGE>



                             AUGRID OF NEVADA, INC.
                          (A Development Stage Company)

                                  Balance Sheet
                                  -------------
                             As of December 31, 2001
                             -----------------------


                                     ASSETS
                                     ------

CURRENT ASSETS
--------------

    Cash                                                            $     7,493
                                                                    -----------

         Total Current Assets                                             7,493

PROPERTY AND EQUIPMENT (NOTE 1)


    Machinery And Equipment                                              68,080
    Furniture And Fixtures                                                7,686
    Office Equipment                                                     14,176
                                                                    -----------

         Total Property At Cost                                          89,942

    Less:  Accumulated Depreciation                                     (18,412)
                                                                    -----------

    Net Property and Equipment                                           71,530
                                                                    -----------


OTHER ASSETS

    Licensing Agreement ( Note 2)                                     1,822,907
         Less Amortization                                             (920,828)
                                                                    -----------

    Net Licensing Agreement                                             902,079
                                                                    -----------

    Deposits Building Construction                                       21,341
                                                                    -----------

         Total Other Assets                                             923,420
                                                                    -----------

TOTAL ASSETS                                                        $ 1,002,443
                                                                    ===========



         The accompanying notes are an integral part of this statement.








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                             AUGRID OF NEVADA, INC.
                          (A Development Stage Company)

                               Statement of Income
                               -------------------
                      For the Year Ended December 31, 2001
                      ------------------------------------


    Net Sales (Note 1)                           $        -0-
                                                 ------------

Expenses

    Consultants                                       218,765
    Secretarial Services                                1,100
    Public Relations                                  115,000
    Auto Expense                                       28,061
    Insurance                                             916
    Rent                                                3,012
    Repairs & Maintenance                               5,041
    Lease Equipment                                     1,108
    Miscellaneous Expense                               1,830
    Travel and Lodging                                 17,871
    Legal Fees                                          4,349
    Accounting Fees                                     7,250
    Professional Fees                                  70,000
    Interest Expenses                                 124,902
    Computer Expense                                      621
    Office Expense                                     13,485
    Postage and Delivery                                1,701
    Telephone                                          12,531
                                                 ------------
       Total Expenses                                 627,543
                                                 ------------

Income (Loss) Before Depreciation                    (627,543)
Depreciation                                           (8,994)
Amortization                                         (337,582)
                                                 ------------

Income (Loss) Before Income Taxes                    (974,119)

Provision for Income Taxes (Note 2)                       -0-
                                                 ------------

       Net Income (Loss)                         $   (974,119)
                                                 ============

    Basic and Diluted Loss Per Share                     .015

    Weighted Average Shares Outstanding            64,364,720


         The accompanying notes are an integral part of this statement.



<PAGE>



                             AUGRID OF NEVADA, INC.
                          (A Development Stage Company)

                         Statement of Retained Earnings
                         ------------------------------
                             As of December 31, 2001
                             -----------------------




Deficit accumulated  March 8, 1998 at Merger                     ($429,352)

Net (Loss) for the Year 1998                   (590,366)

Deficit accumulated, at End of Year 1998                      ($ 1,019,718)

Net (Loss) for the Year 1999                   (675,719)

Deficit accumulated, at End of Year 1999                        (1,695,437)

Net (Loss) for the Year 2000                 (1,171,377)

Deficit accumulated, at End of Year 2000                        (2,866,814)

Net (Loss) for the year 2001                   (974,119)

Deficit accumulated, at End of Year 2001                        (3,840,933)
                                                          ================


















         The accompanying notes are an integral part of this statement.



<PAGE>



                             AUGRID OF NEVADA, INC.
                          (A Development Stage Company)

                             Statement of Cash Flows
                             -----------------------
                             As of December 31, 2001
                             -----------------------


CASH FLOWS FROM OPERATING ACTIVITIES

      Net Income (Loss)                                               $(974,119)

  Adjustments to reconcile Net Income to
  Net Cash provided by Operating Activities:

      Depreciation and Amortization                                     346,576

Changes in Operating Assets and Liabilities Net:

        Increase in Accounts Payables                                     1,659
                                                                      ---------

             Net Cash (Used) by Operating Activities                   (625,884)

CASH FLOWS FROM INVESTING ACTIVITIES

        Increase in Licensing Agreement                                (135,000)
                                                                      ---------

             Net Cash Used in Investing Activities                     (135,000)

CASH FLOWS FROM FINANCING ACTIVITIES

      Proceeds from Common Stock Issuance                               213,755
      Proceeds from Notes Payable- to Stockholders                      553,700
                                                                      ---------

             Net Cash Provided by Financing Activities                  767,455
                                                                      ---------

Increase in Cash and Cash Equivalents                                     6,571

Cash and Cash Equivalents at Beginning of Year                              922
                                                                      ---------

Cash and Cash Equivalents at End of Year                              $   7,493
                                                                      =========






         The accompanying notes are an integral part of this statement.



<PAGE>



                             AUGRID OF NEVADA, INC.
                          (A Development Stage Company)

                          Notes to Financial Statements
                             As of December 31, 2001

NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                  A. ORGANIZATION

                  AUGRID OF NEVADA, INC., (a Development Stage Company) formed
                  under the laws of the State of Nevada. It is a development
                  stage company whose primary business is a technology
                  development firm specializing in Thin Cathode Ray Tube (TCRT)
                  technology. The company currently has no operating income and,
                  in accordance with SFAS #7, is considered a development
                  company.

                  B.  BASIS OF PRESENTATION

                  Th financial records of the company are maintained on the
                  accrual basis of accounting. The accompanying financial
                  statements have been prepared on the going concern basis which
                  contemplates the realization of assets and the satisfaction of
                  liabilities in the normal course of business in accordance
                  with generally accepted accounting principles.

                  C. PROPERTY AND EQUIPMENT

                  All property and equipment is stated at cost. The Company
                  provides for depreciation, using the straight line method,
                  over the estimated useful lives of the respective assets, as
                  follows:
                                                                      Years
                  Machinery and Equipment             $   68,080        10
                  Furniture and Fixtures                   2,731        10
                  Office Equipment                        14,176        10
                                                      ----------
                  Total Property & Equipment          $   84,987
                                                      ==========

                  Major renewals and improvements of property and equipment are
                  capitalized, while replacements, maintenance and repairs which
                  do not improve or extend the lives of the assets are charged
                  against current operations. When property and equipment is
                  disposed of, any gain or loss is included in current
                  operations.

                  D. USE OF ESTIMATES

                  The preparation of financial statements in conformity with
                  general accepted accounting principles require management to
                  make estimate and assumptions that affect the reported amounts
                  of assets and liabilities at the date of the financial
                  statement and the reported amounts of revenue and expenses
                  during the reported period. Actual results could differ from
                  those estimates.




<PAGE>



                             AUGRID OF NEVADA, INC.
                          (A Development Stage Company)

                          Notes to Financial Statements
                          -----------------------------
                             As of December 31, 2001
                             -----------------------

NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( Continued )

                  E. GOING CONCERN

                  The company's financial statements are prepared using the
                  generally accepted accounting principles applicable to a going
                  concern, which contemplates the realization of assets and
                  liquidation of liabilities in the normal course of business.
                  However, the Company has no current source of revenue. Without
                  realization of additional capital, it would be unlikely for
                  the Company to continue as a going concern. The financial
                  statements do not include any adjustments relating to the
                  recoverability and classification of recorded assets or the
                  amount and classification of liabilities which might be
                  necessary should the company continue as a concern. The
                  Company's continuation as a going concern is dependent upon
                  its ability to generate sufficient cash flows to meet its
                  obligations on a timely basis, to obtain additional financing
                  as may be required, and ultimately to attain successful
                  operations. It is management's plan to begin producing sales
                  in mid 2002.

                  F. RESEARCH AND DEVELOPMENT EXPENSE

                  The company's policy relating to research and development and
                  patent development cost are expensed when incurred except R&D
                  machinery, equipment, and facilities which have alternative
                  future uses either in R&D activities or otherwise. Machinery,
                  equipment and facilities, which have alternate future uses
                  should be capitalized. All expenditures in conjunction with an
                  R&D project, including personnel cost, materials, equipment,
                  facilities, and intangibles, for which the company has no
                  alternative future use beyond the specific project for which
                  the items were purchased, are expensed.

                  G. REVENUE RECOGNITION

                  The company has no current source of Revenue.

NOTE 2 LICENSING AGREEMENT

                  The company has an agreement with CeraVision Limited.
                  CeraVision has developed and is developing certain technology
                  relating to ceramic-based field emission flat screen displays
                  and hold certain patent applications and other intellectual
                  property rights in relation to such technology and in relation
                  to manufacturing processes and equipment to produce and sell
                  such displays and components for incorporation into such
                  displays. The cost incurred in relation to this licensing
                  agreement is capitalized. The cost is amortized over a period
                  of 5 years.






<PAGE>



                             AUGRID OF NEVADA, INC.
                          (A Development Stage Company)

                          Notes to Financial Statements
                          -----------------------------
                             As of December 31, 2001
                             -----------------------

NOTE 3 RELATED PARTY TRANSACTION

                  The company enter into consulting agreements with Stockholder,
                  the company has violated its agreements by being delinquent in
                  its payment to these Stockholders. At December 31, 2001 the
                  company owed these related parties these amounts are $86,850,
                  $84,400, $65,600 and $62,900 in delinquent consultant fees and
                  cash advances. All amounts due on demand with no interest.

NOTE 4 INCOME TAXES

                  There was no provision for Federal Income tax during 2001 or
                  2000 because of an unexpired net operating loss carry forward.

                                                                   Carryforward
                  Year Ended                 Amount           Available to Year
                  ----------                 ------           -----------------

                  December 31, 1998       1,019,718               2013
                  December 31, 1999         675,719               2014
                  December 31, 2000       1,171,377               2015
                  December 31, 2001         974,119               2016

                  The Company has a net operating loss carryforward of
                  $3,840,933 which expires, if unused, in the years 2013 to
                  2016. The following is a reconciliation of the income tax
                  benefit computed at the federal statutory rate with the
                  provision for income taxes for the period ended 2000 and 2001.

<TABLE>
<CAPTION>
                                                                      2000         2001
                                                                      ----         ----
<S>                                                                 <C>         <C>
                  Income tax benefit at the statutory rate (34%)    1,171,377   974,119
                  Change in valuation allowance
                  State tax, net of federal benefit
                  Non included items
                                                                    ---------   --------

                  Provision for income taxes                                0          0
                                                                    =========   ========
</TABLE>


<PAGE>



                             AUGRID OF NEVADA, INC.
                          (A Development Stage Company)


                          Notes to Financial Statements
                          -----------------------------
u
                            As of December 31, 2001


NOTE 5 CAPITALIZATION

                  On March 1, 1998, AuGRID Corporation's current controlling
                  stockholders purchased controlling interest in Ironwood
                  Ventures via the purchase of approximately 4,616,111 shares of
                  Common Stock of Ironwood Ventures' in private transactions;
                  this represented approximately 62.2 percent (62.2%) of
                  Ironwood Ventures' issued and outstanding Common Stock.

                  On March 2, 1998, Ironwood Ventures' executed a forward stock
                  split of its stock, 6.06571228 to 1. In addition, Ironwood
                  Ventures' increased its authorized shares to 90,000,000 common
                  shares, par value $0.001, 10,000,000 preferred shares, par
                  value $0.001, and changed its name to AuGRID of Nevada, Inc.

                  On March 12, 1998, Ironwood Ventures' - now called AuGRID of
                  Nevada, Inc. - executed an asset purchase agreement purchasing
                  substantially all of the assets of AuGRID Corporation, a
                  Delaware corporation hereinafter referred to as "AuGRID of
                  Delaware", a company under common control by the control
                  stockholders of the Ironwood Ventures', for 1,000,000 newly
                  issued shares of the Ironwood Ventures'. This was not a third
                  party, arms length transaction, and due to the development
                  stage and specialized nature of the assets\technology that
                  Ironwood Ventures' purchased, the Company's management is
                  unable to determine how this transaction would compare to a
                  similar arms length transaction. The shares of common stock
                  were spun off to AuGRID of Delaware shareholders on a pro-rate
                  basis on March 13, 1998.

NOTE 6 NET LOSS PER SHARE

                  The Company follows the provisions of Statement of Financial
                  Accounting Standards No. 128, earnings per share (SFAS 128)
                  The following table presents the calculation.

                       Net Loss                                    $  3,840,933
                                                                   ------------
                   Basic:
                       Weighted average share of
                       Common stock outstanding                      64,364,720
                                                                   ------------

                       Basic net loss per share                           (.055)

                   Pro forma :
                       Shares used above                             64,364,720
                       Pro forma adjusted to reflect
                       Weighted affect of assumed
                       Conversion of preferred stock                    317,500
                                                                   ------------
                       Shares used in computing pro forma
                          Basic net loss per share                   64,682,220
                                                                   ------------

                       Pro forma basic net loss per share                 (.055)


<PAGE>



                             AUGRID OF NEVADA, INC.
                      (A Nevada Development Stage Company)

                          Notes to Financial Statements
                          -----------------------------
                             As of December 31, 2001
                             -----------------------

NOTE 7 NOTES PAYABLE TO STOCKHOLDERS

                  Notes payable to stockholders, interest
                  rates at 12% payable monthly Notes
                  Matured on 01/28/01                             297,700
                                                               ----------

                  Total Long Term Notes                           297,700

                  Notes Matured and converted into
                  18 Month Demand notes at 10% interest           553,700
                                                               ----------

                  Notes Payable to Stockholders-                  553,700
                  Long-Term




<PAGE>



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

         Not Applicable

                                    PART III

ITEM 9   DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
         COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

         The information required by with respect to the Company's executive
         officers is incorporated herein by reference from the information
         provided under the heading "Executive Officers" of the definitive proxy
         statement to be filed with the Securities and Exchange Commission no
         later than April 30, 2002 (the "Proxy Statement"). The information
         required with respect to the Company's directors is incorporated herein
         by reference from the information provided under the heading "Proposal
         No. One: Election of Directors" of the Proxy Statement. The information
         required by Item 405 of Regulation S-K is incorporated herein by
         reference from the information provided under the heading "Securities
         Ownership of Certain Beneficial Owners and Management - Section 16(a)
         Beneficial Ownership Reporting Compliance" of the Proxy Statement.

ITEM 10  EXECUTIVE COMPENSATION

         Information regarding the compensation of executive officers and
         directors of the Company is incorporated by reference from the
         information provided under the heading "Executive Compensation" of the
         Proxy Statement.

ITEM 11  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         Information regarding security ownership of certain beneficial owners
         and management is incorporated by reference from the information
         provided under the heading "Security Ownership of Certain Beneficial
         Owners and Management" of the Proxy Statement.

ITEM 12  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Information regarding certain relationships and related transactions is
         incorporated by reference from the information provided under the
         heading "Certain Relationships and Related Transactions" of the Proxy
         Statement.

ITEM 13  EXHIBITS, LIST AND REPORTS ON FORM 8-K

     (a) Exhibits (Reference Numbers are to Item 601 of Regulation S-B)

         2      Asset Purchase Agreement between the Company and AuGRID
                Corporation, a Delaware corporation, dated March 12, 1998 (the
                "Asset Purchase Agreement") and incorporated by reference to
                Exhibit 2 to the Company's Form 10-SB, filed with the Commission
                on December 27, 1999.

         3.1    Articles of Incorporation of the Company filed with the Nevada
                Secretary of State on August 4, 1995 and incorporated by
                reference to Exhibit 3(i) to the Company's Form 10-QSB, filed
                with the Commission on June 13, 2001.



<PAGE>



         3.2    Certificate of Amendment of Articles of Incorporation of the
                Company filed with the Nevada Secretary of State on March 18,
                1998 and incorporated by reference to Exhibit 3(ii) to the
                Company's Form 10-QSB, filed with the Commission on June 13,
                2001.

         3.3    By-Laws of the Company adopted August 4, 1995 and incorporated
                by reference to Exhibit 3 to the Company's Form 10-SB, filed
                with the Commission on December 27, 1999.

         10.1   Patent License between the Company and CeraVision (Ireland)
                Limited dated 7 July 2000

         10.2   Exclusive Project Agreement relating to Displays for Use in
                Automobiles between the Company and CeraVision Limited dated 7
                July 2000

         10.3   Letter of understanding between the Company and the City of
                Akron, Ohio regarding the purchase or lease (with purchase
                option) of an approximately five-acre parcel of land located in
                the city's Ascot Industrial Park, dated December 17, 1999.

         23     Consent of Independent Auditors

     (b) Reports on Form 8-K

                None






<PAGE>



                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                              AuGRID of Nevada, Inc.

                              By:/s/ Muhammad J. Shaheed
                                 ----------------------------------------------
                                     Muhammad J. Shaheed, President, Chief
                                     Executive Officer and Chairman
                                     Date: March 28, 2002

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

                      /s/ Muhammad J. Shaheed
                      ---------------------------------------------------------
                      Muhammad J. Shaheed, President,  Chief
                      Executive Officer and Chairman (principal executive
                      officer)
                      Date:  March 28, 2002

                      /s/ Mary F. Sloat-Horoszko
                      ---------------------------------------------------------
                      Mary F. Sloat-Horoszko, Secretary, Treasurer and
                      Director (principal financial officer and principal
                      accounting officer)
                      Date:  March 28, 2002

                      /s/ Myron Finkelstein
                      ---------------------------------------------------------
                      Myron Finkelstein, Director
                      Date:  March 28, 2002

                      /s/ Earle Higgins
                      ---------------------------------------------------------
                      Earle Higgins, Director
                      Date:  March 28, 2002

                      /s/Michael Makki
                      ---------------------------------------------------------
                      Michael Makki, Director
                      Date:  March 28, 2002

                      /s/ Essa Mashni
                      ---------------------------------------------------------
                      Essa Mashni, Director
                      Date:  March 28, 2002