SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB

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

                      For Quarter Ending December 31, 2001

                       Commission File Number 000-26375


                             NetSalon Corporation
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         Delaware                                       84-1472120
------------------------                        ---------------------------
(State of incorporation)                        (I.R.S. Employer ID Number)


              11800 Metro Parkway, Fort Meyers, Florida  33912
         ---------------------------------------------------------
         (Address of principal executive offices)        (zip code)


                                (941) 791-2000
              ----------------------------------------------------
              (Registrant's telephone number, including area code)






Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of Securities Exchange Act of 1934
during the preceding 12 months (or for such a 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 [ ]




As of February 10, 2002, 19,630,900 common shares, $.001 par value per share,
were outstanding.










                             NETSALON CORPORATION

                                     INDEX

                                                                 Page
Part I FINANCIAL INFORMATION

   Item 1.

      Balance Sheet as of December 31, 2001 (Unaudited)           3

      Consolidated Statements of Operations for the
       three months ended December 31, 2001 and
       December 31, 2000 (unaudited)                              4

      Consolidated Statements of Operations for the
       six months ended December 31, 2001 and
       December 31, 2000 (unaudited)                              5

      Statement of Cash Flows for the three months ended
       December 31, 2001 and December 31, 2000 (Unaudited)        6

      Notes to Unaudited Consolidated Financial Statements        7

   Item 2.  Management's Discussion and Analysis of Financial
      Condition and Results of Operations                         13

PART II - OTHER INFORMATION

   Item 1. Legal Proceedings                                      14

   Item 2. Changes in Securities                                  14

   Item 3. Default on Senior Securities                           14

   Item 4. Submission of Matters to a Vote of Security Holders    14

   Item 5. Other Information                                      14

   Item 6. Exhibits and Reports on Form 8-K                       14

SIGNATURES                                                        15
















                                       2


                             NETSALON CORPORATION
                     Consolidated Balance Sheet (Unaudited)
                              December 31, 2001
ASSETS

Current assets:
   Cash                                                        $       324
   Accounts receivable                                             240,000
   Prepaid expenses                                                  3,900
                                                               -----------
                                                                   244,224

Capitalized software costs, net of accumulated
amortization of $7,840                                              24,051

Property and equipment, net of accumulated depreciation
of $16,044                                                          35,041
                                                               -----------

     Total Assets                                              $   303,316
                                                               ===========

LIABILITIES AND SHAREHOLDERS' (DEFICIT)
Current liabilities:
   Accounts payable and accrued expenses                       $   441,996
   Checks in excess of bank balance                                  8,272
   Deferred revenue                                                531,048
   Notes payable                                                   512,510
   Loans payable to shareholders                                   435,019
                                                               -----------
                                                                 1,928,845
                                                               -----------
Non current liabilities:
   Deferred revenue                                                  7,690
                                                               -----------
     Total Liabilities                                           1,936,535
                                                               -----------
Commitments and contingencies (Note 9)                                   -

Stockholders' (Deficit)
   Preferred stock - 20,000,000 shares authorized;
     $.001 Par; no shares issued                                         -
   Common stock - 100,000,000 shares authorized; $.001
     Par; 19,630,900 shares issued                                  19,630
   Additional paid-in capital                                      933,921
   Accumulated deficit                                          (2,586,770)
                                                               -----------
     Total Stockholders' (Deficit)                              (1,633,219)
                                                               -----------
Total Liabilities and Stockholders' (Deficit)                  $   303,316
                                                               ===========



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

                                       3



                              NETSALON CORPORATION
                  Consolidated Statements of Operations (Unaudited)

                                            For the            For the
                                          Three Months       Three Months
                                             Ended              Ended
                                        December 31, 2001  December 31, 2000
                                        -----------------  -----------------

Revenue:
   Enterprise implementation               $   110,363       $   210,000
   Consulting and custom programming            16,350                 -
   Licenses                                    101,051                 -
   Other                                         3,421                 -
                                           -----------       -----------
                                               231,185           210,000

Cost of revenue                                114,498            97,392
                                           -----------       -----------
Gross margin                                   116,687           112,608

Operating expenses:
   Research and development                          -             5,807
   General and administrative expenses         259,124           254,395
   Selling and marketing                        46,942            20,890
                                           -----------       -----------
                                               306,066           281,092
                                           -----------       -----------
Operating loss                                (189,379)         (168,484)
                                           -----------       -----------

Other income and (expenses):
   Interest income                                   -             3,704
   Disposition of fixed assets                       -           (12,635)
   Interest expense                            (16,782)          (24,891)
   Meadow Run Farms settlement                       -           (93,492)
                                           -----------       -----------
                                               (16,782)         (127,314)
                                           -----------       -----------
Net loss                                   $  (206,161)      $  (295,798)
                                           ===========       ===========

Basic and diluted loss per share:
   Basic loss per common share             $    (0.011)      $    (0.015)
                                           ===========       ===========
   Weighted average common shares
   outstanding                              19,630,900        19,630,900
                                           ===========       ===========
   Diluted earnings per common share       $    (0.011)      $    (0.015)
                                           ===========       ===========
   Weighted average diluted common
   shares outstanding                       19,630,900        19,630,900
                                           ===========       ===========

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


                                       4


                               NETSALON CORPORATION
                   Consolidated Statements of Operations (Unaudited)

                                            For the            For the
                                           Six Months         Six Months
                                             Ended              Ended
                                        December 31, 2001  December 31, 2000
                                        -----------------  -----------------
Revenue:
   Enterprise implementation               $   132,485       $   210,000
   Consulting and custom programming            88,900                 -
   Licenses                                    157,937                 -
   Other                                         3,421                 -
                                           -----------       -----------
                                               382,743           210,000

Cost of revenue                                133,379           103,580
                                           -----------       -----------
Gross margin                                   249,364           106,420

Operating expenses:
   Research and development                     44,618            61,652
   General and administrative expenses         416,869           410,753
   Selling and marketing                       124,069            53,249
                                           -----------       -----------
                                               585,556           525,654
                                           -----------       -----------
Operating loss                                (336,192)         (419,234)
                                           -----------       -----------
Other income and (expenses):
   Interest income                                   -             3,704
   Disposition of fixed assets                  (2,933)          (12,635)
   Interest expense                            (34,384)          (36,391)
   Meadow Run Farms settlement                       -           (93,492)
                                           -----------       -----------
                                               (37,317)         (138,814)
                                           -----------       -----------
Net loss                                   $  (373,509)      $  (558,048)
                                           ===========       ===========
Basic and diluted loss per share:
   Basic loss per common share             $    (0.019)      $    (0.028)
                                           ===========       ===========
   Weighted average common shares
   outstanding                              19,630,900        19,630,900
                                           ===========       ===========
   Diluted earnings per common share       $    (0.019)      $    (0.028)
                                           ===========       ===========
   Weighted average diluted common
   shares outstanding                       19,630,900        19,630,900
                                           ===========       ===========




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


                                     5

                             NETSALON CORPORATION
               Consolidated Statements of Cash Flows (Unaudited)
              For the Six Months Ended December 31, 2001 and 2000

                                                 2001              2000
                                              -----------       -----------
Net loss                                      $  (373,509)      $  (558,048)

Adjustments to reconcile net loss to
cash provided by (used in) operating
activities:
  Depreciation of property and equipment            8,266             4,094
  Loss on asset disposition                         2,933            12,635
  Amortization of capitalized software costs        6,362                 -
Changes in operating assets and liabilities:
  (Increase) in accounts receivable              (239,336)          (33,333)
  Decrease in prepaid expenses                        918            (6,828)
  Decrease in software licenses                    91,200                 -
  Increase in accounts payable and accrued
   expenses                                       231,053           173,358
  Increase in deferred revenue                    225,110                 -
  Increase in accrued compensation to
   officer (shareholder)                           90,000                 -
  Other                                            (3,922)            1,405
                                              -----------       -----------
     Net cash provided by (used in)
     operating activities                          39,075          (406,717)
                                              -----------       -----------
Cash flows from investing activities:
  Capitalized software costs                      (14,796)                -
  Cash receipts from sale of assets                     -             3,900
  Disposition of furniture                        (12,172)                -
  Purchase of equipment                              (490)          (33,344)
                                              -----------       -----------
     Net cash provided by (used in)
     investing activities                         (27,458)          (29,444)
                                              -----------       -----------
Cash flows from financing activities:
  Proceeds from sale of common stock                    -           480,000
  Advances from bank loan                               -           100,000
  Repayment of settlement note payable                  -           (61,500)
  Repayments of shareholder loan                  (11,293)          (50,000)
  Repayments of officer (shareholder)
   advances                                             -           (30,955)
                                              -----------       -----------
     Net cash provided by (used in)
     financing activities                         (11,293)          437,545
                                              -----------       -----------
Increase in cash                                      324             1,384
Cash, beginning of period                               -            19,473
                                              -----------       -----------
Cash, end of period                           $       324       $    20,857
                                              ===========       ===========
Additional cash flow disclosures
  Interest paid                               $    20,000       $         -
Noncash Transactions
  Purchase of office furniture and
  fixtures through direct loan installment    $    11,293       $         -

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

                                     6


                             NETSALON CORPORATION
             Notes to Consolidated Financial Statements (Unaudited)
                              December 31, 2001

NOTE 1 - ORGANIZATION

OPERATIONS AND BUSINESS DESCRIPTION

NetSalon Corporation ("NetSalon" or the "Company") is an application service
provider and has been actively involved in high-tech product development since
its formation in late 1998.   The Company's products consist of the NetSalon
enterprise including the affiliate portal (portal site replicator),
ezsitebuilders, AeonCards, and University courses.  The Company's products are
described as follows:

NetSalon Enterprise is a suite of pre-built applications, which can be fully
branded to any company.  Customers of NetSalon select applications that
benefit them best including affiliate portals (Portal / Site Replicator);
AeonCards; ezSiteBuilders for individuals and B2C SiteBuilders for businesses;
and NetSalon Universities (Distance Learning).

The Enterprise is privately branded for each customer with their business's
name, logo, site design, and color scheme utilizing any domain name of choice.
NetSalon stores all data on customer servers. NetSalon Corporation provides
all technical support, second level customer service, upgrades and
maintenance.

Affiliate portals (Portal / Site Replicator) is an enterprise wide,
replicating web site. The portal is designed to provide community, content,
and commerce, branded with a customer's information, name, logo, site design
and color scheme and their company's affiliate information.

EzSiteBuilders and B2C Builders are online wizards that provide users the
ability to go online and develop personal and business web sites,
respectively.

AeonCards are CD-based business cards comprised of a "flash" movie whereby
advertisements and information can be viewed.  The AeonCard is designed and
built over the Internet using interactive processes.

Universities (Distance Learning) are on-line interactive courses that provide
educational material on over 400 courses ranging from basic computer
technology to highly technical areas of programming.

The customers of the Company are primarily direct-selling companies.  NetSalon
also provides custom web development, database design, multi-media application
development and other consulting services.

BASIS OF CONSOLIDATION

These consolidated financial statements include the accounts of NetSalon
Corporation and NetSalon I, Inc.  All significant intercompany transactions
have been eliminated.  These financial statements should be read in
conjunction with the NetSalon June 30, 2001 10-K.


                                     7


OTHER

The Company is subject to risks and uncertainties common to technology-based
companies, including rapid technological change, growth of the internet and
electronic commerce, new product development, actions of competitors, and
availability of sufficient capital and a limited operating history.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONDENSED FINANCIAL STATEMENTS

The financial statements included herein have been prepared by NetSalon
Corporation without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission.  Certain information and footnote
disclosures normally included in the financial statements prepared in
accordance with generally accepted accounting principles have been condensed
or omitted as allowed by such rules and regulations, and NetSalon Corporation
believes that the disclosures are adequate to make the information presented
not misleading.  It is suggested that these financial statements be read in
conjunction with the June 30, 2001 audited financial statements and the
accompanying notes thereto.

While management believes the procedures followed in preparing these financial
statements are reasonable, the accuracy of the amounts are in some respect's
dependent upon the facts that will exist, and procedures that will be
accomplished by NetSalon Corporation later in the year.

The management of NetSalon Corporation believes that the accompanying
unaudited condensed financial statements contain all adjustments (including
normal recurring adjustments) necessary to present fairly the operations and
cash flows for the periods presented.

BASIS OF PRESENTATION

These financial statements have been prepared using the accrual basis of
accounting consistent with generally accepted accounting principles.

USE OF ESTIMATES

The preparation of these financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
revenues and expenses, and disclosure of contingent assets and liabilities at
the date of the financial statements.  Actual results could differ from these
estimates.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid instruments purchased with original
maturities of three months or less to be cash equivalents.  For this report,
cash and cash equivalents is solely comprised of the amount available in
checking accounts.





                                     8


ACCOUNTS RECEIVABLE

The Company provides an allowance for doubtful accounts equal to the estimated
uncollectible amounts. The Company's estimate is based on historical
collection experience and a review of the current status of trade accounts
receivable. No allowance was necessary as of December 31, 2001.  The entire
accounts receivable balance of $240,000 as of December 31, 2001 has been
included in deferred revenue.  A contingency exists with respect to collection
of this accounts receivable, the ultimate resolution of which cannot presently
be determined.

SOFTWARE LICENSES

Software licenses represent rights to use self-study content purchased from a
third party that is used to support NetSalon University courses.  These
licenses are recorded at cost and are charged to earnings when sold.

CAPITALIZED SOFTWARE COSTS

The Company capitalized $14,796 and $0 during the six months ended December
31, 2001 and 2000, respectively, of programming and related expenses as
required by Statement of Financial Accounting Standards No. 86, "Accounting
for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed".
Capitalized software costs are amortized over a period of 24 months.
Amortization expense for the quarter ended December 31, 2001 amounted $3,181.

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost and depreciated over estimated
useful lives of three to seven years using the straight-line method.
Maintenance and repairs are charged to expense as incurred; major renewals and
betterments are capitalized and depreciated over the estimated remaining
useful life of the asset.  The cost of items sold or otherwise disposed of,
and the related accumulated depreciation or amortization is removed from the
accounts and gains or losses are reflected in current operations.

In addition, the Company periodically reviews all long-lived assets for
impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable.  If the sum of the
estimated future undiscounted cash flows expected to result from the use and
eventual disposition of an asset is less than the carrying value, the asset is
reduced to its fair value. There was no impairment recognized in the periods
presented herein.

INCOME TAXES

Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases. Deferred tax assets, including tax loss and credit carryforwards, and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be
recovered or settled. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period that includes the
enactment date. Deferred income tax expense represents the change during the
period in the deferred tax assets and liabilities.


                                     9


The components of the deferred tax assets and liabilities are individually
classified as current and non-current based on their characteristics. Deferred
tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion or all of the
deferred tax assets will not be realized.

Legacy NetSalon converted from a limited liability company to a subchapter C
Corporation in July 2000.  Prior to the conversion, all federal income taxes
were reported on the individual income tax returns of the members.

REVENUE RECOGNITION AND DEFERRED REVENUE

Fees for enterprise implementation and software licenses are generally paid in
advance. The fees are deferred and recognized on a straight-line basis over
the period of the applicable agreement or contract, which are generally 12 to
24 months.  Revenues for consulting and custom programming is recorded as
earned or using the percent-complete method as appropriate.

Deferred revenue consists of $511,088 in deferred enterprise implementation
fees, $27,649 in deferred license fees at December 31, 2001.

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment was composed of the following at December 31, 2001:

             Computer equipment                   $48,965
             Furniture and fixtures                 2,120
                                                  -------
             Property and equipment, gross         51,085

             Less accumulated depreciation         16,044
                                                  -------
             Property and equipment, net          $35,041
                                                  =======

Depreciation expense amounted to $8,266 and $4,751 for the six months ended
December 31, 2001 and 2000, respectively.  The Company disposed assets with a
combined net book value of $2,933 during the six months ended December 31,
2001.

NOTE 4 - NOTES PAYABLE

Notes payable consisted of the following at December 31, 2001:


     Note payable to former investor.  Bears interest
     at a rate of 9% per annum.  Pursuant to a renego-
     tiated agreement effective May 2001, monthly
     payments of $5,000 were required through October
     2001 with monthly payments of $25,000 beginning
     in November 2001.  This note payable has been
     classified as a current liability due to payment
     default.  Accrued interest amounted to $26,682 at
     December 31, 2001.                                         512,510
                                                                =======



                                     10


NOTE 5 - RELATED PARTY TRANSACTIONS

Related party loans and payables were comprised of the following as of
December 31, 2001:

     Note payable to shareholder requiring monthly
     payments of $5,000 per month including interest at
     a rate of 12% per annum.  Accrued interest amounted
     to $25,849 at December 31, 2001.  This note payable
     has been classified as current due to payment default.
     $50,000 and $10,000 were paid toward this note during
     the six months ended December 31, 2001 and 2000,
     respectively.                                             $197,692

     Officer (Shareholder) compensation accrued, but not
     paid at December 31, 2001.  No payments were made
     against this liability for the six months ended
     December 31, 2001.                                         152,827

     Due to an officer/shareholder for working capital
     advances.  Approximately $65,000 and $0 were paid
     against this indebtedness for the six months ended
     December 31, 2001 and 2000, respectively.                   21,500

     Due to shareholder and ex-officer for unpaid
     compensation.   No payments were made against this
     indebtedness during the quarter ended December 31, 2001.    63,000
                                                               --------
                                                               $435,019
                                                               ========

The Company paid or accrued legal fees of $87,873 to a law firm that is also a
shareholder of the Company during the six months ended December 31, 2001.

NOTE 6 - STOCK AND WARRANTS

As of December 31, 2001, no preferred shares are issued.  All shares have
similar voting rights.  Approximately 756,000 class A warrants are outstanding
as of June 30, 2001 that enable the holders to purchase common shares at $5.00
per share. These warrants expire on February 8, 2003.  No new warrants were
issued and no warrants were exercised during the quarter ended December 31,
2001.  The warrants were considered to have no value at December 31, 2001.

As part of an employee agreement, an officer of the Company will receive
1,000,000 stock options with an additional 500,000 and 500,000 options being
granted on January 1, 2002 and 2003, respectively.

NOTE 7 - BASIS OF PRESENTATION - GOING CONCERN

The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles, which contemplates continuation of
the Company as a going concern.  However, the Company has sustained operating
losses since its inception and has a net capital deficiency.  This fact raises
substantial doubt about the Company's ability to continue as a going concern.
Management is attempting to raise additional capital.


                                     11


In view of these matters, realization of certain of the assets in the
accompanying balance sheet is dependent upon continued operations of the
Company, which in turn is dependent upon the Company's ability to meet its
financial requirements, raise additional capital, and the success of its
future operations.

Management is in the process of attempting to reduce operating expenses and
broaden its marketing efforts.  Management believes that its ability to reduce
operating expenses and broaden its marketing efforts provide an opportunity
for the Company to continue as a going concern.  The accompanying financial
statements do not include any adjustments that might be necessary if the
Company is unable to continue as a going concern.

NOTE 8 - CONCENTRATIONS

As of December 31, 2001, one customer accounted for 50.4 percent of revenue
and another customer accounted for 26 percent.

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Certain disagreements exist between the Company and 4N International (4N), an
unrelated document production organization, concerning certain marketing and
other products created by 4N.  4N stipulates that the Company owes them
approximately $40,000.  The Company's management believes that 4N owes them an
unspecified amount.  Management believes that the Company will be successful
in this dispute.

The President of the Company has issued a lawsuit against a terminated
employee (Defendant) originally hired to market certain aspects of the
Company.  The Defendant has filed a counterclaim against the President and
NetSalon.  The Defendant, in the counterclaim, seeks to recover actual damages
of $70,000 and other unspecified damages for alleged misrepresentation
concerning compensation arrangements and opportunities with the Company.  The
ultimate outcome of this litigation cannot presently be determined.  However,
in management's opinion, the likelihood of a material adverse outcome is
remote.  Accordingly, adjustments, if any, that might result from the
resolution of this matter have not been reflected in the consolidated
financial statements.




















                                    12

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

OVERVIEW

     NetSalon is an application service provider and has been actively
involved in high-tech product development since its formation in late 1998.
NetSalon has developed various Internet-related products which it originally
intended to sell through a multi-level marketing distribution system.  As of
August 17, 2000, product development essentially was complete, but the Company
had not built a successful multi-level marketing distribution system.  On that
date, the Company publicly announced its abandonment of the multi-level
marketing distribution model, and announced its intention to sell products
through affiliates who maintain Internet sites where products can be sold,
through distributors, and through multi-level marketing companies on a
private-label basis.

     During the fiscal year ended June 30, 2001, the Company was involved in
developing marketing plans and seeking distributors and other resellers for
the products, and the Company entered into several contracts with distributors
and multi-level marketing companies.  These contracts generate fees to
NetSalon for implementation of the web sites and technology required for
distribution of the products, as well as revenues from product sales made by
the distributors and multi-level marketing companies themselves.

RESULTS OF OPERATIONS

     THREE MONTHS ENDED DECEMBER 31, 2001 COMPARED TO THREE MONTHS ENDED
DECEMBER 31, 2000

     During the three months ended December 31, 2001 the Company reported
revenue of $231,185 compared to $210,000 during the three months ended
December 31, 2000.

     During the three months ended December 31, 2001, the cost of revenue was
$114,498 or 49.5% of sales as compared to cost of revenues of $97,342 or 46.4%
of sales for the three months ended December 31, 2000.

     Operating expenses for the three months ended December 31, 2001 were
$306,066 compared to $281,092 for the three months ended December 31, 2000.

     Interest expense decreased from $24,891 in the three months ended
December 31, 2000 to $16,782 in the three months ended December 31, 2001.

     The net loss was $206,161 in the three months ended December 31, 2001
compared to a net loss of $295,798 in the three months ended December 31,
2000.

     SIX MONTHS ENDED DECEMBER 31, 2001 COMPARED TO SIX MONTHS ENDED DECEMBER
31, 2000

     During the six months ended December 31, 2001 the Company reported
revenue of $382,743 compared to $210,000 during the six months ended December
31, 2000.



                                     13


     During the six months ended December 31, 2001, the cost of revenue was
$133,379 or 34.8% of sales as compared to cost of revenues of $103,580 or
49.3% of sales for the six months ended December 31, 2000.

     Operating expenses for the six months ended December 31, 2001 were
$585,556 compared to $525,654 for the six months ended December 31, 2000.

     Interest expense decreased from $36,391 in the six months ended December
31, 2000 to $34,384 in the six months ended December 31, 2001.

     The net loss was $373,509 in the six months ended December 31, 2001
compared to a net loss of $558,048 in the six months ended December 31, 2000.

LIQUIDITY AND CAPITAL RESOURCES

     As of December 31, 2001, the Company had a working capital deficit of
$1,692,311.  The Company's future existence is dependent upon closing those
contracts now in negotiation, or alternatively to seek additional capital.  It
would be difficult for the Company to raise additional capital, particularly
in view of the Company's poor financial condition and the reluctance of the
participants in the equity markets to invest in speculative ventures.

                         PART II - 0THER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

     None.

ITEM 2.  CHANGES IN SECURITIES.

     None.

ITEM 3.  DEFAULTS OF SENIOR SECURITIES.

     None.

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

     None.

ITEM 5.  OTHER INFORMATION.

     None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

     None.











                                       14


                                  SIGNATURES

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

                                   NETSALON CORPORATION



                                   By:/s/ Mark Manuel
Date:  February 14, 2002              Mark Manuel, President














































                                      15