UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED

June 30, 2001

Commission file number 000-26557

Stemcell Global Research, Inc.

a Nevada corporation

9978 Washington Street

Camp Dennison, Ohio 45111

(513) 831-8077

IRS Tax ID #: 88-0407473

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements:

Stemcell Global Research, Inc.

(A Development Stage Company)

Financial Statements

June 30, 2001

**TABLE OF CONTENTS**

|                                                         | **PAGE**
|-------------------------------------------------------- | --------
|**INDEPENDENT AUDITORS'
REPORT.**                        | **1**   
|**BALANCE SHEET -
ASSETS**                               | **2**   
|**BALANCE SHEET - LIABILITIES AND
SHAREHOLDER'S EQUITY** | **3**   
|**STATEMENT OF
OPERATIONS**                              | **4**   
|**STATEMENT OF CASH
FLOWS.**                             | **5**   
|**NOTES TO FINANCIAL
STATEMENTS**                        | **6**   

**JEROME J. DONNELLON**

**CERTIFIED PUBLIC ACCOUNTANT**

**85 TWIN LAKES DRIVE**

**FAIRFIELD, OHIO 45014**

(513) **874-3055**

**INDEPENDENT AUDITOR'S REPORT**

**August 5, 2001**

**Board of Trustees**

**Stemcell Global Research, Inc. (The Company)**

**Las Vegas, Nevada 89102**

**I have reviewed the Balance Sheet of Stemcell Global Research, Inc., as of June 30, 2001 and related statements of
income, retained earnings, and cash flows in accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public Accountants. All information included in these
financial statements is the representation of the management of Stemcell Global Research, Inc.**

**A review consists principally of inquiries of company personnel and analytical procedures applied to financial data.
It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective
of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I do not
express such an opinion.**

**Based upon my review, I am not aware of any material modifications that should be made to the accompanying
financial statements in order for them to be in conformity with generally accepted accounting principals. My
responsibility is to express an opinion on these financial statements based on my review.**

**Jerome J. Donnellon**

**Ohio License ID#4L-3-3114**

**-1-**

**Stemcell Global Research, Inc.**

**(A Development Stage Company)**

**Balance Sheet**

**as of**

**June 30, 2001**

**ASSETS**

|**ASSETS**                             | **June 30, 2001**  | **June 30, 2000**  
|-------------------------------------- | ------------------ | -------------------
|                                       |                    |                    
|**CURRENT ASSETS**                     |                    |                    
|**Cash**                               | **7,892.00**       | **25,187.00**      
|**Money Market Account**               | **3,009.00**       | **5,909.00**       
|                                       |                    |                    
|**Total Current Assets**               | **10,901.00**      | **31,096.00**      
|                                       |                    |                    
|                                       |                    |                    
|**PROPERTY AND EQUIPMENT**             |                    |                    
|**Property and Equipment**             | **-0-**            | **-0-**            
|                                       |                    |                    
|**Total Property and Equipment**       | **-0-**            | **-0-**            
|                                       |                    |                    
|                                       |                    |                    
|**OTHER ASSETS**                       |                    |                    
|**Patent Rights**                      |                    | **230,000.00**     
|**Sunspot Loan Receivable**            | **880,000.00**     |                    
|******Accrued Interest**               | **71,070.00**      |                    
|                                       |                    |                    
|******************Total Other Assets** | **951,070.00**     | **230,000.00**     
|                                       |                    |                    
|                                       | **--------------** | **---------------**
|**TOTAL ASSETS**                       | **961,971.00**     | **261,096.00**     

**See Accompanying Notes to Financial Statements**

**-2-**

Stemcell Global Research, Inc.

(A Development Stage Company)

Balance Sheet

As Of

June 30, 2001

Liabilities & Equity

|                                                                                                                         | **June 30, 2001**   | **June 30, 2000**   
|------------------------------------------------------------------------------------------------------------------------ | ------------------- | --------------------
|**CURRENT LIABILITIES**                                                                                                  |                     |                     
|**Accounts Payable**                                                                                                     | **-0-**             | **-0-**             
|                                                                                                                         | **---------------** | **----------------**
|**Total Current Liabilities**                                                                                            | **-0-**             | **-0-**             
|                                                                                                                         |                     |                     
|**OTHER LIABILITIES**                                                                                                    |                     |                     
|**Convertible Notes Payable**                                                                                            | **1,188,228.00**    | **389,445.00**      
|**Accrued Interest Payable**                                                                                             | **141,500.00**      | **17,515.00**       
|                                                                                                                         |                     |                     
|**Total Other Liabilities**                                                                                              | **1,329,728.00**    | **406,960.00**      
|                                                                                                                         |                     |                     
|**Total Liabilities**                                                                                                    | **1,329,728.00**    | **406,960.00**      
|                                                                                                                         |                     |                     
|**EQUITY**                                                                                                               |                     |                     
|**Common Stock, $0.001 par value,
authorized 20,000,000 shares; issued
and outstanding at June 30, 2000
common shares:** | 1,924.00            | 1,924.00            
|                                                                                                                         |                     |                     
|                                                                                                                         |                     |                     
|**Additional Paid in Capital**                                                                                           | **143,839.00**      | **143,839.00**      
|**Retained Earnings**                                                                                                    |                     |                     
|**(Deficit accumulated during
development stage)**                                                                       | **(513,520.00)**    | **(291,627.00)**    
|                                                                                                                         |                     |                     
|**Total Stockholder's Equity**                                                                                           | **(367,757.00)**    | **(145,864.00)**    
|                                                                                                                         |                     |                     
|**TOTAL LIABILITIES & OWNER'S
EQUITY**                                                                                   | **961,971.00**      | **261,096.00**      
|                                                                                                                         | **_________**       | **_________**       

**See Accompanying Notes to Financial Statements**

**-3-**

Stemcell Global Research, Inc.

(A Development Company)

STATEMENT OF OPERATIONS

FOR PERIOD

June 30,2001 (unaudited) and

June 30, 2000 (unaudited)



|                                                             | **June 30, 2001** 

**(unaudited)** | **June 30, 2000**

**(unaudited)**
|------------------------------------------------------------ | ----------------------------------- | ----------------------------------
|**REVENUE**                                                  |                                     |                                   
|**Revenues**                                                 | **-0-**                             | **-0-**                           
|**Interest Income**                                          | **52,835.00**                       | **539.00**                        
|                                                             |                                     |                                   
|**Total Revenue**                                            | **52,835.00**                       | **539.00**                        
|                                                             |                                     |                                   
|**COSTS AND EXPENSES**                                       |                                     |                                   
|**Selling, General and Administrative**                      | **106,262.00**                      | **82,094.00**                     
|                                                             |                                     |                                   
|**Total Costs and Expenses**                                 | **106,262.00**                      | **82,094.00**                     
|                                                             |                                     |                                   
|**Net income or Loss before taxes**                          | **(53,427.00)**                     | **(81,555.00)**                   
|**Income Tax Expense**                                       | **-0-**                             | **-0-**                           
|                                                             | **________**                        | **________**                      
|                                                             |                                     |                                   
|                                                             |                                     |                                   
|**Net Ordinary Income or Loss**                              | **(53,427.00)**                     | **(81,555.00)**                   
|                                                             |                                     |                                   
|**Weighted Average number of
common shares** **outstanding** | 1,890,361                           | 1,890,361                         
|                                                             |                                     |                                   
|**Basic Net Loss Per Share**                                 | **(0.003)**                         | **(0.04)**                        

****

**See Accompanying Notes to Financial Statements**

**-4-**

Stemcell Global Research, Inc.

(A Development Stage Company)

STATEMENT OF CASH FLOWS

FOR PERIOD ENDING

June 30, 2001

|**CASH FLOWS FROM OPERATING ACTIVITIES** | 
|---------------------------------------- | 

|                                                             | **********June 30, 2001** | **June 30, 2000** 
|------------------------------------------------------------ | ------------------------- | ------------------
|                                                             |                           |                   
|**Net (Loss) from Operations**                               | **(53,427.00)**           | **(81,555.00)**   
|**Adjustments to reconcile net income
to net cash provided** |                           |                   
|**Increase in interest payable**                             | **71,293.00**             | **15,057.00**     
|**Increase interest receivable**                             | **(52,800.00)**           | **_________**     
|                                                             |                           |                   
|**Net Cash provided by**                                     |                           |                   
|**Operating Activities**                                     | **(34,934.00)**           | **(66,498.00)**   
|                                                             |                           |                   
|**CASH FLOWS FROM INVESTING
ACTIVITIES**                     |                           |                   
|**Patent Rights Purchased**                                  | **-0-**                   | **230,000.00**    
|                                                             | **--------------**        | **--------------**
|**Net cash used by investing activities**                    | **-0-**                   | **(230,000.00)**  
|                                                             |                           |                   
|**CASH FLOWS FROM FINANCING
ACTIVITIES**                     |                           |                   
|                                                             |                           |                   
|**Increase Notes Payable**                                   | **5,000.00**              | **-0-**           
|**Cash Received from convertible note
payable**              | **-0-**                   | **334,445.00**    
|**Repayment on notes payable**                               | **-0-**                   | **(30,000.00)**   
|                                                             |                           | **_____**         
|**Net cash provided by financing
activities**                | **5,000.00**              | **304,445.00**    
|**Balance at beginning of period**                           | **40,835.00**             | **23,149.00**     
|**Net increase (decrease) in cash**                          | **(29,934.00)**           | **7,947.00**      
|**Balance at the end of period**                             | **10,901.00**             | **31,096.00**     

**See Accompanying Notes to Financial Statements**

**-5-**

Stemcell Global Research, Inc.
(A Development Stage Company)
Notes to Financial Statements
NOTE 1 - HISTORY AND ORGANIZATION OF THE COMPANY
The Company was organized January 20, 1999 (Date of Inception) under the laws of the State of Nevada, as Stemcell
Global Research, Inc. (The company) has no operations and in accordance with SFAS #7, the Company is considered a
development stage company. The Company has 20,000,000 shares of $0.001 par value stock authorized.

On January 21, 1999, the Company issued 1,651,125 shares of its $0.001 par value Common Stock for cash of $1,651.13
and cancellation of a $7,500.00 loan from a founding shareholder for corporate consulting costs.

On March 9, 1999, the Company completed a public offering that was exempt from federal registration pursuant to
Regulation D, Rule 504 of the Securities Act of 1933 as amended, and exempt from state registration pursuant to various
state securities transaction exemptions. The Company sold 273,225 shares of Common Stock at a price of $0.50 per share
for a total amount raised of $136,612.50. The Company received cash in the amount of $93,535.00, a note receivable in
the amount of $5,000.00 and exchange for services rendered in the amount of $38,062.50.
On March 29, 2000, a convertible promissory note was signed with Atlantique Capital Group, Inc. in the amount of
$163,000.00 at a per annum rate of 12%.
There have been no other issuances of equity or Common Stock.

NOTE 2 - ACCOUNTING POLICIES AND PROCEDURES
Accounting policies and procedures have not been determined except as follows:
1. The Company uses the accrual method of accounting.

2. The cost of organization was expensed when incurred.
3. Basic earnings per share is computed using the weighted average number of shares of common stock outstanding.
Diluted earnings per share were not included as the inclusion of convertible notes would be anti-dilutive and all
contingencies for conversion have not occurred.
4. The company has not yet adopted any policy regarding payment of dividends. No dividends have been paid since
inception.

5. The cost of equipment is depreciated over the estimated useful life of the equipment utilizing the straight line method of
depreciation. There was no depreciation during this operating period. There was no equipment purchased through March
31, 2001.
6. The company experienced losses for its operating period.

7. The Company will review its need for a provision for federal income tax after each operating period for which a
statement of operations is issued. The net operating losses will begin to expire in the year 2006.
8. The Company has adopted December 31st as its fiscal year end.
9. The Company records its inventory at cost. There was no inventory through March 31, 2001.
10. The preparation of financial statements in conformity with generally accepted accounting principals requires that
management make estimates and assumptions which affect the reported amounts of assets and liabilities as at the date of
the financial statements and revenues and expenses for the period reported. Actual results may differ from these estimates.
11. The Company will review its long-lived assets and certain identifiable
intangible assets for impairment at the end of each operating period reported. The Company will report these assets at
recoverable costs.

12. Patent rights are amortized over 60 months in accordance with Generally Accepted Accounting Principals and the
Internal Revenue Code.
NOTE 3 - GOING CONCERN
The Company's financial statements are prepared using the generally accepted accounting principals applicable to the
going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.
However, the Company has not generated any revenues from its planned principal operation though March 31, 2001.
Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. It is
management's plan to secure additional capital through loans and or private placements.
NOTE 4- RELATED PARTY TRANSACTION
Office services are provided without charge by a director. Such costs are immaterial to the financial statement and,
accordingly, have not been reflected therein. The officer and directors of the Company are involved in other business
activities and may, in the future, become involved in other business opportunities. If a specific business opportunity
becomes available, such persons may face a conflict in selecting between the company and their other business interests.
The Company has not formulated a policy for the resolution of such conflicts.

NOTE 5 - WARRANTS AND OPTIONS
There are no warrants or options outstanding to acquire any additional shares of common stock.
NOTE 6 - LONG TERM COMMITMENTS
The Company neither owns nor leases any real personal property.
NOTE 7 - CONVERTIBLE NOTES PAYABLE
The Company has issued 5000 in convertible notes payable at 12% per annum. The notes have a ninety day term which
may be automatically renewed by the Company. The Company does not have an interest rate and they are convertible at
the holder's option at the price of $.50 per share, the fair market value of the Company's 504 offering, with demand
registration rights and first right of refusal to sell these shares into the Company's first secondary public offering. The notes
are not with a related party.

NOTE 8 - NOTES RECEIVABLE
The company has advanced $880,000 to Sunspot Technology as a note receivable at 12% per annum with no due date.

Item 2. Management's Discussion and Analysis:

The information required by this Item is included in Item 1 above.

SIGNATURES

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

STEMCELL GLOBAL RESEARCH, INC.

(Registrant)

Date: August 13, 2001

By: David A. Leytze

David Leytze

Director, Vice President and duly authorized officer.