U.S. Securities and Exchange Commission
                   Washington, D.C. 20549

                        Form 10-KSB

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

        For the Fiscal Year ended September 30, 2001
                             Or
  [   ] TRANSITION REPORT UNDER SECTION 13 0R 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

  For the transition period from __________ to ___________

             Commission file number:  000-13846

               STRATEGIC ALLIANCE GROUP, INC.
       (Name of Small Business Issuer in its charter)

            Florida                          75 14 33 000
  (State of Incorporation)      (I.R.S. Employer Identification No.)

         3551 S.W. Corporate Parkway
             Palm City, Florida                  34990
   (Address of principal executive offices)    (Zip Code)

                           (561) 283-4490
                      Issuer's telephone Number

  Securities registered under Section 12 (b) of the Exchange Act:

  Title of Each Class            Name of Each Exchange
                                  On Which registered

        None                             None

  Securities registered under Section 12 (g) of the Exchange Act:

               COMMON STOCK, PAR VALUE  $.10 PER SHARE
                          (Title of Class)

  Check whether the issuer (1) filed all reports required to be filed
   by Section 13 or 15(d) of the Exchange Act during the past 12
   months (or for such period that the registrant was required to
   file such reports), and (2) has been subject to such filing
   requirements for the past 90 days.

  [X]  YES       [  ]   NO

  Check if no disclosure of delinquent filers in response to Item
  405 of Regulation S-B is 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 ]

  The issuer's revenue for the most recent fiscal year was   $0.00

  The aggregate market value of the voting stock held by non-affiliates
  computed by reference to the price at which the stock was sold, or
  the average bid and asked price of such, as of a specified date
  within the prior 60 days was  $493,152 based on the average of the
  closing bid and asked obtained from the OTC Bulletin Board on
  September 30, 2001.

  The number of shares outstanding of each of the Issuer's classes
  of common equity as of September 30, 2001 was;

            Common Stock              406,249,977 shares
            Series A Preferred Stock      197,944 shares

  Transitional Small Business Disclosure Format  YES [    ]   NO  [X ]


  TABLE OF CONTENTS

  Item 1    - Description of Business
  Item 2    - Description of Property
  Item 3    - Legal Proceedings
  Item 4    - Submission of Matters to a Vote of Security Holders
  Item 5    - Market Price of and Dividends on the Registrant's Common
              Equity and Related Stockholder Matters
  Item 5.1  - Description of Securities
  Item 6    - Management's Discussion and Analysis or Plan of Operation
  Item 7    - Changes in and Disagreements with Accountants
  Item 8    - Financial Statements
  Item 9    - Directors and Executive Officers, Promoters and Control
              Persons
  Item 10   - Executive Compensation
  Item 11   - Security Ownership of Certain Beneficial Owners and
              Management
  Item 12   - Certain Relationships and Related Transactions


                          PART  I.
  Statements contained in this Form that are not historical facts are
  forward looking statements as the term is defined in the Private
  Securities Litigation Reform Act of 1995.   Such forward-looking
  statements are subject to risks and uncertainties, which could
  cause actual results to differ materially from original estimates.
  Such risks and uncertainties are detailed in filings with the
  Securities And Exchange Commission, including without limitation
  in Item 1  "DESCRIPTION OF BUSINESS" and
  Item 6   MANAGEMENT  DISCUSSION AND ANALYSIS OR PLAN OF OPERATION"
  below.


  ITEM  1  DESCRIPTION OF BUSINESS
  (a) Business Development
  The present Strategic Alliance Group, Inc. was originally
  incorporated under the laws of the State of Florida on October
  24, 1983, under the name Bio-Analytic Laboratories, Inc (Florida).
  On October 25, 1983, this company merged with Bio-Analytic
  Laboratories, Inc., a Texas corporation. The Texas corporation
  was the surviving company and the sole reason for the merger
  was to effect a change in its state of domicile from the State
  of Texas to the State of Florida. On October 25, 1983, the date of
  the merger, Bio-Analytic (Florida) had not issued any of its
  common stock and the shareholders of Bio-Analytic (Texas) became
  the shareholders of Bio-Analytic (Florida) on a share for share
  basis.

  Eutro Group Holding, Inc. was incorporated under the laws of the
  State of Florida in September, 1991. In that month, it completed
  a reverse acquisition of Bio-Analytic Laboratories, Inc. Eutro
  Group Holding, Inc. was the holding company and Bio-Analytic
  Laboratories, Inc. became its only wholly owned operating
  subsidiary.

  On May 6,1998, Eutro Group Holding, Inc. sold its Bio-Analytic
  Laboratories, Inc. subsidiary to Cypro Environmental Group, Inc.,
  a privately held corporation incorporated under the laws of the
  State of Florida. As consideration for this sale, Eutro received
  500,000 shares of Cypro common stock that it valued at $1,000,000.
  Since May 6, 1998, Eutro Group Holding, Inc. has not had an
  operating subsidiary.

  On May 17, 1999, negotiations were concluded by which Eutro Group
  Holding, Inc. would be acquired by Ivy Entertainment.Com, Inc.
  in a reverse merger.  As consideration for this reverse merger,
  Eutro was issued and exchanged 8,575,000 shares of its common
  stock, after it has undergone a 250 for 1 reverse split. These
  shares were to be issued to the sole stockholder of Ivy, Mr. Richard
  Gladstone, in exchange for 1000 shares of common stock of Ivy
  Entertainment.Com, Inc. which is the total amount of common
  stock issued and outstanding.

  The shares of Eutro common stock to be received by Mr. Gladstone
  pursuant to the reverse acquisition agreement will be restricted
  stock as defined in Rule 144 of the Securities Act.

  A vital clause in the acquisition agreement between Eutro and IVY
  was that Mr. Richard   Gladstone, IVY's sole stockholder, guarantee
  that IVY will have a minimum of $5,000,000 in tangible assets when
  the merger is completed.

  On February 9, 2001, Mr. Floyd D. Wilkenson, Director of Mezzanine
  Finance Fund, LLC., and former Chairman of the Board of Directors
  of Eutro Group Holding, Inc. sent a letter to Mr. Richard Gladstone,
  CEO of Ivy Entertainment.Com, Inc. in which Wilkenson informed
  Gladstone and Ivy that he considered them to not have performed
  on three provisions specified in   the Agreement of Merger between
  the two companies signed May 17, 1999.

  The three provisions are;
        1.  Failure of Ivy Entertainment.Com, Inc. to have the
            $6,000,000 in assets required of it before its merger
            with Strategic Alliance Group, Inc. can be consummated
        2.  Failure to meet the time requirement for consummation
            of the merger while being fully aware that time is of
            the essence.
        3.  Failure to meet the requirement for the extension of
            time limits contained in the Agreement, since the initial
            date for closing was set for June 30, 1999.

  This action was instigated by the approach to Wilkenson of a
  Strategic shareholder group concerned at the unexplainable delays
  in the fulfillment of the terms of the Acquisition Agreement.
  After due consideration of the arguments presented, Wilkenson
  chose to invoke Articles 10.1(b) and 10.2 of the Agreement to
  effect its termination and to be written notice thereof.

  Gladstone was given 10 days to cure the matters giving rise to
  this situation. Since no cure was performed, the Agreement was
  terminated effective the 10th business day following its receipt by
  Gladstone.

  The Acquisition Agreement between Strategic Alliance Group, Inc,
  and Ivy Entertainment.Com, Inc. is now null and void.

  (b) Business Of Issuer
  Strategic Alliance Group, Inc. offered consulting services to a
  wide range of clients, from small private companies to medium
  size public companies. It assisted companies in bringing new
  products to market, provided sales and marketing advice and other
  general consulting services that are particularly aimed at small
  to medium sized companies that plan on raising capital in public
  and private securities offerings.

  Strategic worked with company management and assisted it in the
  development of the company business plan, in adopting a proper
  capital structure, develop a consistent corporate story and create
  and implement a stock option plan.

  Strategic specialized in financial public relations. It advised
  management in the proper way to disseminate the corporate story
  to the investing community thereby attracting the attention of
  stock-buyers to its shares. If the client is a private company,
  the focus is to get its story to the consumer so that the company
  is known, held in high esteem and its products preferred by the
  consumer.

  Strategic's fee was usually divided into two parts. The first was
  a cash payment to cover direct   expenses and the second was a block
  of the client's common stock. If the client was not, and had no
  intention of becoming a public company, then Strategic's entire
  fee was to be in cash. As a   result of receiving compensation in
  this manner, Strategic benefited from any appreciation in the
  price of its clients shares.

  Strategic's clients came to the company by personal referral.
  It did not engage in extensive advertising in either the financial
  or the popular media.

  The competitive situation is quite intense as there are a host of
  persons and companies who offer   similar services. These range
  from corporate giants with offices in most of the developed and
  developing countries of the world, to the individual who may be
  specialized in one particular   sector.

  Strategic did not hold itself out as being able to fulfill any
  request made of it. In the event that a   particular client needs
  expertise outside of that which Strategic could offer, then formed
  a syndicate with other consulting companies or freelance
  specialists.

  The personnel situation is as follows. Being a holding company,
  Strategic Alliance Group, Inc. since its founding in 1991, has
  not had, and to this day does not have, permanent employees. The
  company affairs are managed by an unsalaried Board of Directors.
  At present, Strategic has a   contractual agreement with Mezzanine
  Finance Fund, LLC. a Florida limited liability company, to provide
  the personnel to manage Strategic's affairs until merger candidate
  is found and completed.

  While it has been mentioned above, it is worth emphasizing that
  the current business of   Strategic Alliance Group, Inc. is to
  place itself in a proper posture to complete a reverse acquisition
  and continue its existence as a viable entity which is something
  that it cannot do by continuing under its present modus operandi.

  ITEM  2  DESCRIPTION OF PROPERTY

  (a) Neither Strategic Alliance Group, Inc. nor Bio-Analytic
  Laboratories, Inc., its former subsidiary, have owned the offices
  and the production facilities they have occupied.

  ITEM  3  LEGAL PROCEEDINGS

     (a)    Pending legal proceedings
  On September 30, 2001, Strategic Alliance Group, Inc. had no
  pending legal proceedings against it and its management was not
  aware of any that were awaiting filing.

     (b)    Pending governmental agency procedures
  On September 30, 2001, Strategic Alliance Group, Inc. had no
  pending governmental agency   procedures against it and its
  management was not aware of any that were awaiting submission by
  any governmental agency.

  ITEM 4  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  There were no matters submitted to a vote of security holders
  through the solicitation of proxies or otherwise during the
  fourth quarter of the fiscal year covered by this report.

                          PART II
  ITEM 5.   MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

  (a)Market Information

     (1)    The common stock of Strategic Alliance Group, Inc. is
  traded on the OTC Electronic Bulletin      Board "Pink Sheets",
  under the symbol "STGE".

     (2)    The range of the high and low bid for each quarter of
  the last two fiscal years follows.

  PERIOD              HIGH           LOW
                       BID           BID
  2001
  1st Qtr           0.006          0.003
  2nd Qtr           0.002          0.001
  3rd Qtr           0.002          0.001
  4th Qtr           0.016          0.009

  2000
  1st Qtr           0.017          0.006
  2nd Qtr           0.088          0.009
  3rd Qtr           0.054          0.014
  4th Qtr           0.013          0.004

     (3)    The source of the high and low bid information submitted
  above is the daily summary made available by the OTC Electronic
  Bulletin Board.
     (4)    No cash or stock dividends have been declared on the
  Strategic Alliance Group, Inc. common  stock because of a paucity
  of earnings and a lack of cash with which dividends could have
  been paid.
     (5)    The Strategic Alliance Group, Inc. Series A Preferred
  Stock is in arrears on its dividend payments in the amount of
  $126,684
     (6)    Strategic common stockholders did receive two
  distributions of assets as follows. On June 12, 1998, for each
  1000 shares of common stock held, they received 2 shares of the
  common stock of Cypro Environmental Group, Inc.  On January 30,
  1998, for each 10,000 shares of common stock held, they received
  17 shares of Freedom Medical Group, Inc.

  ITEM 5 - 1  DESCRIPTION OF SECURITIES

  Strategic Alliance Group, Inc. has two classes of capital stock
  outstanding

     (A)     Class A Preferred Stock
  On April 16, 1997, the Articles of Incorporation of Strategic
  Alliance Group, Inc. were amended to authorize the issuance of
  5,000,000 shares of $.10 par value preferred stock (Class A).

  Strategic stockholders on June 30,1997, were offered the
  opportunity to exchange not more than 80% of their common stock
  holdings for Class A preferred stock. This offer was made to
  stockholders of record on June 30, 1997. The Class A Preferred
  Stock will not be sold or made   available for purchase by the
  general public.Under the terms of the exchange offer, a common
  stockholder who tendered 50 shares of Strategic common stock
  received one share of Series A Preferred stock and 10 stock
  purchase warrants. Fractional shares were compensated to the
  stockholder at the rate of $.04 per common share.

  The dividends to be paid on the Series A Preferred Stock are
  $.16 per annum payable semi-annually in arrears on the last
  business day of January and July of each year.

  During July of 2001, an offer was made for Preferred Stockholders
  to exchange their preferred   for common stock at a ratio of
  100 common to one preferred, eliminating their dividend debt.

  On August 13, 2001, 230,984 Preferred Shares were exchanged.
  The preferences, restrictions and rights of the Class A Preferred
  Stock are as follows.

     (1)    The par value is $.10 per share
     (2)    The ascribed nominal value is $2.00 per share
     (3)    Series A Preferred shareholders are entitled to receive
            dividends at the rate provided, as and when declared by
            the Board of Directors, at the rate of $.16 per share per
            year and these dividends are cumulative.
     (4)    The Series A Preferred stock shall also participate
            parri-passu in any and all future cash dividends paid
            to common shareholders.
     (5)    No dividends may be paid on the common stock while
            arrears exist on the preferred stock.
     (6)    In the event of a dissolution or liquidation of
            Strategic Alliance Group, Inc., the holders of the
            Series A preferred stock are entitled to receive a
            liquidating dividend in the Amount of $.10 per
            preferred share together with all accrued and unpaid
            dividends, if any exist, up to such payment date,
            whether or not declared or paid, in preference to any
            payment to the common stockholders.
     (7)    Series A Preferred Stock shall have no voting rights
            and no sinking fund provision.
     (8)    After one year from date of issuance of Series A
            Preferred stock, and upon 30 days written notice,
            Startegic may at any time call the shares of preferred
            stock for redemption at the ascribed nominal value of
            $2.00 per preferred share.
     (9)    Each of the warrants attached to the Series A Preferred
            stock is detachable at any time and give their holder
            the right to purchase one share of Strategic Alliance
            Group, Inc. common stock at a price of $1.00 per share.
            The warrant exercise period begins upon receipt of the
            warrant and ends at 5:00PM on December 31, 2002, or at the
            same time on the first business day thereafter.
     (10)   The Company has contacted all holders of record of its
            Series A Preferred shares to exchange them for common
            stock.
            Owners of 230,984 Preferred shares have responded and
            exchanged their shares.  The number of preferred shares
            still outstanding is 197,944.  Management believes these
            shares have been discarded by their owners who may have
            changed residences, have no further interest in the
            Company or their holdings in it.

     The Company has reserved 26,901,600 common shares for the
     unlikely event these Preferred shares may be presented for
     exchange in the future.  This eliminates any liability for a
     future share exchange and the ultimate elimination of all
     outstanding Series A Preferred Stock.

     (D)    Common Stock
  On November 4, 1998, documents were filed with the Secretary of
  State of Florida increasing the authorized common stock of
  Strategic Alliance Group, Inc. from 100,000,000 to its present
  amount of 500,000,000 shares.

  The common stock has the right to receive the amount of dividends
  declared from time to time by the Board of Directors in accordance
  with, and resulting from, the operating performance of the company.

  Each common share is entitled to cast one vote in any matter legally
  presented to it.

  No preemptive rights are inherent in the common stock.

  No other material rights are contained other than the normal
  rights to a proportionate distribution   of liquidating dividends
  after satisfaction of any and all prior claimants.

  There is no provision in the charter or by-laws that would delay,
  defer or prevent a change in   control of Strategic Alliance Group,
  Inc.

   C - Debt securities
  Strategic Alliance Group, Inc. has no debt securities outstanding
  and has no plan or intention to issue any such securities.

  D - Other securities to be offered
  At this time, and in this document, Strategic Alliance Group,
  Inc. is registering no other securities.

  ITEM 6  MANAGEMENT'S PLAN OF OPERATION
  The following description of the financial condition and results
  of our operations should be read in conjunction with our financial
  statements and related notes appearing in Item 8 of this Form
  10-KSB. Except for the historical information contained herein,
  the discussion in this Form 10-KSB contains forward looking
  statements that involve risks, uncertainties and assumptions such
  as statements of our plans, objectives, expectations and intentions.
  The cautionary statements made in this Form 10-KSB should be read
  as being applicable to all forward-looking statements wherever
  they appear in this document. The actual results, levels of
  activity, performance, achievements and prospects could differ
  materially from those discussed below. Factors that could cause
  or contribute to such differences include those discussed elsewhere
  in this Form 10-KSB.

     (a)    Plan of operation
  It is highly unlikely that Strategic Alliance Group, Inc. can
  satisfy its cash requirements for the next 12 months without
  resorting to raising additional funds.

  Strategic plans no product research and development for the term
  of the Plan.
  During the period covered by the financial statements and the
  next 12 months of this Plan, Strategic significantly changed the
  focus of its business activities from business and financial
  consulting to the sale of the company to a more financially
  secure organization that could make better use of its OTC
  Electronic Bulletin Board listing.

  ITEM 7  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
          AND FINANCIAL DISCLOSURE

  Prior to 1995, Strategic Alliance Group, Inc. was a reporting
  company. In the second fiscal quarter of  1995, it elected to
  become a non-reporting company in order to issue shares of
  common capital stock under Regulation D-504. The accounting firm
  of Alliota & Fritsch, LLC, of 140 Intracoastal Pointe Drive,
  Suite 305, Jupiter, Florida 33477, telephone (561) 747 1040,
  was retained as company auditors.

  In 1996, on advice of counsel, Strategic's Board of Directors
  accepted the resignations of Mr. J.   O'Keefe, CFO, and Ms.
  V. Lavache, Secretary/Treasurer of the Corporation. The Board of
  Directors also terminated the relationship with the accounting
  firm named above. It was agreed   that corporate accounting
  would be performed by Ms. Donna Grooms who performed the duties
  of accountant and comptroller.

  The present auditor of Strategic Alliance Group, Inc. is
  Mr. Aaron Stein, CPA, of 534 Willow   Avenue, PO Box 315,
  Cedarhurst, New York 11516, telephone, (516) 569 0520.
  Strategic Alliance Group, Inc. has not changed accountants
  during the last two fiscal years, nor has it had any
  disagreements with the accountants on any matter of accounting
  principles or practices, financial statement disclosures, or
  auditing scope or procedures.

  ITEM  8  FINANCIAL STATEMENTS

  STRATEGIC ALLIANCE GROUP, INC.
  AUDITED FINANCIAL STATEMENTS
  Years ended September 30, 2001 and 2000



  STRATEGIC ALLIANCE GROUP, INC.

  Table of Contents
  Report of Independent Accountant
  Financial Statements
       Balance Sheet
       Statement of Operations
       Statement of Changes in Stockholders' Deficit
       Statement of Cash Flow
       Notes to Financial Statements



  Aaron Stein
  CERTIFIED PUBLIC ACCOUNT
  981 ALLEN LANE
  P.O. BOX 406
  WOODMERE, NY 11598


  To the Board of Directors and Shareholders'
       Strategic Alliance Group, Inc.
  I have audited the accompanying balance sheet of Strategic Alliance
  Group, Inc. as of September 30, 2001, and the related statement of
  operations, changes in stockholders' deficit and cash flows for
  each year September 30, 2001 and 2000. These financial statements
  are the responsibility of the Company's   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 also
  includes assessing the accounting principles used and significant
  estimates made by management, as well as evaluating the overall
  financial statement presentation. 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 Eutro
  Strategic Alliance Group, Inc. as of September 30, 2001 and the
  results of its operations and its cash flows for the two years
  ended September 30, 2001 and 2000 in conformity with generally
  accepted accounting principles.

  The accompanying financial statements have been prepared assuming
  that the Company will continue as a   going concern. As discussed
  in Note 2 to the financial statements, the Company, has a very
  limited operating history, has a shareholder and working capital
  deficiency and has suffered recurring losses since inception.
  The Company's lack of financial resources and liquidity as of
  September 30, 2001 raises substantial doubt about its ability
  to continue as a going concern. Management's plans in regard
  to these matters are described in Note 2. The financial
  statements do not include any adjustments that might result
  from the outcome of this uncertainty.

  Aaron Stein
  Woodmere, New York
  October 30, 2001

             STRATEGIC ALLIANCE GROUP, INC.
                    BALANCE SHEET
                 SEPTEMBER 30, 2001



  ASSETS

  CURRENT TOTAL ASSETS
      Cash and cash equivalents            $         174




                                           $         174

  LIABILITIES AND STOCKHOLDERS' DEFICIT

  CURRENT LIABILITIES
      Preferred dividends                  $     126,684


  STOCKHOLDERS' DEFICIT
      Common stock, $.10 par value,
      authorized 500,000,000 shares,
      379,348,377 issued and outstanding      37,934,837
      Plus, 26,901,600 Issued but reserved     2,690,160
      for balance of remaining preferred
      shares and cumulated interest,
      Equals 406,249,977

      Preferred stock, $.10 par value,
      authorized 5,000,000 shares
      197,944 issued and outstanding              19,794

  Additional paid-in capital                 (26,594,562)

  Total Liabilities and Stockholders Equity  (14,176,739)

601:
                                           $         174




  See accompanying notes to financial statements



           STRATEGIC ALLIANCE GROUP, INC.
               STATEMENT OF OPERATIONS




                                      Years ended September 30,
                                      2001                2000

  REVENUE                             $   0              $   0


  GENERAL AND ADMINISTRATIVE EXPENSES     0                  0


  OPERATING LOSS                          0                  0


  OTHER INCOME (EXPENSES)
   Gain on sale of fixed assets           0                  0
   Interest expense                       0                  0

             Total                        0                  0


             LOSS BEFORE PROVISION
             FOR INCOME TAXES             0                  0


  INCOME TAXES                            0                  0

  NET LOSS                            $   0              $   0




  LOSS PER SHARE
   Basic                                  nil              nil

  AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING
   Basic                         406,249,977       356,249,977




  See accompanying notes to financial statements


  STRATEGIC ALLIANCE GROUP, INC.
  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
662:
663:
                   Preferred Stock      Common Stock       Additional
                                                             Paid In
                   Shares   Amount     Shares      Amount    Capital
  Balance 9/30/98 428,928  $ 42,893 100,793,040 $10,079,304 $(872,551)
668:
  Issuance of
  common stock       -        -     49,900,000   4,990,000 (4,729,009)
671:
  Issuance of
  common stock
  for services
  rendered and
  settlement of
  other long-term
  liabilities        -         -   205,556,937  20,555,694 (17,590,539)

680:
681:
  Cash dividend
  Declared           -         -         -           -            -
684:
685:
  Net loss           -         -         -           -            -
687:
688:
  Balance 9/30/99   428,928 42,893 356,249,977  35,624,998 (23,192,099)
690:
691:
  Net loss                  -          -                    -
693:
694:
  Balance 9/30/00 428,928 42,893  356,249,977 $35,624,998 $(23,192,099)

  Exchange of     230,984 23,098   23,098,400   2,309,840
  Preferred Common
  8/2001

  Balance 9/30/01 197,944 19,794  406,249,977  40,624,977
702:

704:
                           Accumulated
                           Deficit            Total
  Balance 9/30/98          $(11,781,706)  $(2,532,114)
708:
  Issuance of
  common stock                   -            260,991
711:
  Issuance of
  common stock
  for services
  rendered and
  settlement of
  other long-term
  liabilities                    -           2,965,155

720:
721:
  Cash dividend
  Declared                 (34,314)            (34,314)
724:
725:
  Net loss                (762,441)           (762,441)
727:
728:
  Balance 9/30/99      (12,578,515)           (102,723)
730:
731:
  Net loss                  -                      -
733:
734:
  Balance 9/30/00    $(12,578,515)           $(102,723)

  Exchange of                                  (31,671)
  Preferred Common
  8/2001

  Balance 9/30/01                             (134,394)
742:
743:
744:
  See accompanying notes to financial statements


     STRATEGIC ALLIANCE GROUP, INC.
      STATEMENT OF CASH FLOWS

                                            Years ended September 30,
                                            2001                2000

  CASH FLOWS FROM OPERATING ACTIVITIES

       Net loss                          $        0       $  (762,441)

       Adjustments to reconcile net
         loss to net cash used by
             operating activities:
             Gain on sale of fixed
             assets                             (45)           (2,544)
                 Issuance of common stock
                    for services rendered
                    and other long-term
                    liabilities                   0         2,954,530


            Changes in operating assets
                 and liabilities:
                 Accounts payable and
                 accrued expenses                 0          (129,581)
                 Preferred dividends See Note     0           126,684
                 Other long term-liabilities      0        (2,342,131)

                      Net cash used in
                      operating activities        0          (247,853)


  CASH FLOWS FROM INVESTING ACTIVITIES

       Proceeds from sale of furniture
       and equipment                              0            10,770


  CASH FLOWS FROM FINANCING ACTIVITIES

       Proceeds from sale of common stock         0           237,302


            NET INCREASE/DECREASE IN CASH AND
               CASH EQUIVALENTS                 (45)              219
793:
  CASH AND CASH EQUIVALENTS, Beginning          174                 0

  CASH AND CASH EQUIVALENTS, Ending          $  174            $  219



  See accompanying notes to financial statements

  STRATEGIC ALLIANCE GROUP, INC.
  NOTES TO FINANCIAL STATEMENTS
  SEPTEMBER 30, 2001

  Note 1: Organization, Business and Significant Accounting Policies
       Organization

       Strategic Alliance Group, Inc. (the Company) was originally
       incorporated in Florida as Eutro Group Holding, Inc. in
       September 1991. On October 18, 1999 the Company filed its
       Articles of Amendment to its Articles of Incorporation
       thereby changing its name to Strategic Alliance Group, Inc.
       In September 1991 the Company completed a reverse acquisition
       of Bio-Analytic Laboratories, Inc., which then became a
       wholly owned operating subsidiary of the Company. On
       May 6, 1998, the Company sold its Bio-Analytic Laboratories,
       Inc. subsidiary. Since May 6, 1998, the Company has not had
       an operating subsidiary.

       Business
       Strategic Alliance Group, Inc. is a holding corporation.
       Its principal business is to own operating subsidiaries and
       assist these companies as well as other small and medium size
       companies with research, development, marketing and sales.
       Additionally, the Company will assist in the development of
       business plans and specializes in financial public relations.

       Significant accounting policies

       Use of Estimates in Financial Statements   Management uses
       estimates and assumptions in preparing these financial
       statements in accordance with generally accepted accounting
       principles.  Those estimates and assumptions affect the
       reported amounts of assets and liabilities, the disclosure
       of contingent assets and liabilities, and the reported
       revenue and expenses. Actual results could vary from the
       estimates that were used.

       Cash and Cash Equivalents   For purposes of reporting cash
       flows, the Company considers all cash accounts, which are
       not subject to withdrawal restrictions or penalties, as cash
       and equivalents in the accompanying balance sheet.

       Income Taxes - Statement of Financial Accounting Standards
       No. 109 (FAS 109), "Accounting for Income Taxes" is
       effective for financial statements issued for fiscal
       years beginning on or after December 15, 1992. Under FAS 109,
       deferred income taxes generally represent the future tax
       effect of existing differences between the book and tax bases
       of assets and liabilities, using the tax  rates and laws
       existing as of the latest balance sheet date.

       The Company has not elected early adoption of this statement.
       The adoption of FAS 109 is not expected to have a material
       effect on the Company's financial position or results of
       operations due to the Company's NOL position and recent
       losses. The Company expects to record a deferred tax asset
       that will be fully reserved through the recording of a 100%
       valuation allowance.

       Earnings per Common Share - Basic loss per common share is
       computed using the weighted  average number of common shares
       outstanding during the year.

  Note 2: Going Concern Consideration
       The accompanying financial statements have been prepared
       assuming that the Company will continue as a going concern.
       The Company has a very limited operating history, has a
       shareholder and working capital deficiency and has had
       losses since inception. The Company's lack of financial
       resources and liquidity at September 30, 2001 raises
       substantial doubt about its ability to  continue as a going
       concern. The financial statements do not include any
       adjustments that might result from the outcome of this
       uncertainty. The Company has been dependent upon raising
       debt and equity funding to remain in existence as a going
       concern. Its continued existence is also dependent on
       equity funding.

       The Company will continue to actively search for other
       suitable operating companies to effectuate a merger with.

  Note 3: Shareholders' Deficit
       None

  Note 4: Series A Preferred Shares
       The Company has contacted all holders of record of its
       Series A Preferred shares to exchange them for common stock.
       Owners of 230,984 Preferred shares have responded and exchanged
       their shares.  The number of preferred shares still outstanding
       is 197,944.  Management believes these  shares have been
       discarded by their owners who may have changed residences,
       have no further interest in the Company or their holdings
       in it.
       The Company has reserved 26,901,600 common shares for the
       unlikely event these Preferred shares may be presented for
       exchange in the future.  This eliminates any liability for
       a future share exchange and the ultimate elimination of all
       outstanding Series A Preferred Stock.

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

  DIRECTORS AND EXECUTIVE OFFICERS

  The Board of Directors of Eutro Group Holding, Inc., their names
  listed immediately below, filed   Officer/Director resignation
  papers with the Florida Secretary of State on November 12, 1999.

                                          Date of    Term
  Name             Age     Position       Election  Expires

  Mark Colacurcio  34     President      Nov. 1999  Nov. 2002

  On February 26, 2001, Strategic Alliance Group, Inc. responded to
  Mark Colacurcio's notice of   resignation by setting a later date
  of acceptance of his resignation so that the former Board could
  arrange for a temporary replacement.

  Mr. Colacurcio filled in as Sole Director and President until
  September of 2001, when Mr. F.D. Wilkenson could replace Mark
  Colacurcio.

  SIGNIFICANT EMPLOYEES
  Strategic Alliance Group Inc.'s sole person responsible for
  executive management is Mark Colarcurcio

  FAMILY RELATIONSHIPS
  No family relationships between any directors or executive
  officers of the company exist, either by blood or by marriage.

  DIRECTORSHIPS OF OTHER REPORTING COMPANIES
  None of the officers and directors of Strategic Alliance Group,
  Inc. hold directorships in other reporting companies.

  PROMOTERS AND CONTROL PERSONS
  There are no promoters actively involved with Strategic Alliance
  Group, Inc. at this time.

  INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS
  Except as set forth below, during the past five years, no director,
  person nominated to become a   director, executive officer,
  promoter or control person of Strategic Alliance Group, Inc.:

     (1)    was a general partner or executive officer of any
            business against which any bankruptcy petition was
            filed, either at the time of the bankruptcy or two
            years prior to that time;
     (2)    was convicted in a criminal proceeding or named
            subject to a pending criminal proceeding (excluding
            traffic violations and other minor offenses);
     (3)    was subject to any order, judgement or decree, not
            subsequently reversed, suspended or vacated, of any
            court of competent jurisdiction, permanently or
            temporarily enjoining,  barring, suspending or otherwise
            limiting his involvement in any type of business,
            securities  or banking activities; or
     (4)    was found by a court of competent jurisdiction
            (in a civil action) the SEC or the Commodity
            Futures Trading Commission, to have violated a federal
            or state securities or commodities law, and the
            judgement has not been reversed, suspended or vacated.

  ITEM 10  EXECUTIVE COMPENSATION

  Executive compensation
  The only executive was the President and Chief Executive Officer,
  Mark Colarcurcio. He received no compensation for the services he
  rendered either in cash or in stock or in any other form of
  direct compensation or perquisites of any kind.

  Director Compensation
  The directors of Strategic Alliance Group, Inc. receive no direct
  monetary compensation. Upon   election to the Board of Directors,
  they do however receive 100,000 shares of Strategic common
  stock. This stock is investment stock under Rule 144. The
  directors receive no other compensation either in stock or
  in cash or in options or in stock appreciation rights or
  perquisites of any kind.

  ITEM 11  SECURITY OWNNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
           MANAGEMENT

     (a)    Security ownership of certain beneficial owners.
     As of the date of submission of this Form 10-KSB there is no
     person (including any "group")   known to Strategic Alliance
     Group, Inc. to be the beneficial owner of more than
     five percent of Strategic's voting securities.
     (b)    Security ownership of management

  Title of class  Name and address     Amount and nature       Percent
                  Of beneficial owner  of beneficial ownership of class

  Common Stock   Mark Colacurcio         2,000,000 shares       .49%
                 2505 NW Boca Raton Blvd.
                 Boca Raton, FL 33431

     (c)    Changes in control
  There are no internal arrangements either by agreement or in the
  by-laws of Strategic Alliance   Group, Inc. that would inhibit
  or prohibit a change in control of the Company.

  ITEM  12  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
  None

  ITEM 13  EXHIBITS, LIST AND REPORTS ON FORM 8-K
  None

  SIGNATURES
  In accordance with Section 13 or 15(d) of the securities Exchange
  Act of 1934, the registrant has caused this report to be signed
  on its behalf by the undersigned, thereunto duly authorized.

  Startegic Alliance Group, Inc.
  By / s /  Floyd D. Wilkenson

  ________________________________
  Floyd D. Wilkenson
  Sole Director and Officer
  Date September 30, 2001