FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549


             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


For the quarter ended:   December 31, 2001

Commission file number:  333-42640

                               ENDO NETWORKS, INC.
              ----------------------------------------------------
             (exact name of registrant as specified in its charter)

       Nevada                                                       75-2882833
-----------------------                                             ----------
(State of Incorporation)                                           (IRS ID No.)


        2624 Dunwin Drive, Unite #3, Mississauga, Ontario, Canada L5L 3T5
           --------------------------------------------------------------
           (Address of principal executive offices)          (Zip code)

Registrant's telephone number, including area code: 905-820-8800

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act during the past twelve months (or for
such shorter period that the registrant was required to file such reports),  and
(2) has been subject to such filing  requirements  for the past 90 days. Yes [x]
No [ ].


Shares of common stock outstanding at December 31, 2001:

                                                    12,197,966






<PAGE>



                                TABLE OF CONTENTS



PART I - FINANCIAL INFORMATION                                       Page Number


Item  1.  Financial Statements - Such statements have been
          reviewed by an independent public accountant                F-1 - F-5


Item  2.  Managements's Discussion and Analysis
          of Financial Condition and Results of Operations            6 - 8


PART II - OTHER INFORMATION                                           9












<PAGE>

<TABLE>

<CAPTION>

                               ENDO NETWORKS, INC.


                                 BALANCE SHEETS
                                December 31, 2001

                                     ASSETS
                                     ------
                                                                           Dec 31, 2001
                                                                        -------------------
<S>                                                                     <C>

CURRENT ASSETS:
    Cash                                                                           $48,292
    Accounts receivable                                                             38,405
    Deposits with customers                                                         29,606
    Prepaid expenses                                                                   461
                                                                        -------------------
    Total current assets                                                           116,764

PROPERTY AND EQUIPMENT:
    Furniture and fixtures (net of $4,198 depreciation)                             24,050
    Equipment (net of $34,021 depreciation)                                        220,913
    Computer equipment (net of $6,957 depreciation)                                 12,105
    Automotive equipment (net of $368 depreiciation)                                 2,069
                                                                        -------------------
    Total property and equipment                                                   259,137

OTHER ASSETS:
    Intellectual property (net of $19,894 amortization)                              6,571
    Application development (net of $9,766 amortization)                            55,886
                                                                        -------------------
    Total other assets                                                              62,457

                                                                        -------------------

TOTAL ASSETS                                                                      $438,358
                                                                        ===================

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

LIABILITIES
    Accounts payable                                                               $26,298
    Accrued expenses                                                                40,076
    Capitalized leases - current                                                    63,969
                                                                        -------------------
    Total current liabilities                                                      130,343

    Capitalized leases - non current                                               162,391
                                                                        -------------------

TOTAL LIABILITIES                                                                  292,734

STOCKHOLDERS' EQUITY
    Common stock, $0.001 par value, 50,000,000 authorized,
         12,229,966 shares issued and outstanding                                   12,230
    Additional paid-in-capital                                                     209,687
    Accumulated deficit                                                            (76,293)
                                                                        -------------------
        Total Stockholders' Equity                                                 145,624
                                                                        -------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                        $438,358
                                                                        ===================

</TABLE>





See accompanying notes to interim condensed financial statements             F-1

<PAGE>


                               ENDO NETWORKS, INC.


                             STATEMENT OF OPERATIONS
                      Three Months Ended December 31, 2001




                                                               Three Months
                                                                  Ended
                                                               Dec 31, 2001
                                                            -------------------

REVENUE                                                                $57,924

OPERATING EXPENSE:
    Depreciation and amortization                                       36,733
    General and administrative                                          93,749
                                                            -------------------
        Total Operating Expense                                        130,482

                                                            -------------------

NET INCOME                                                            ($72,558)
                                                            ===================



Weighted average shares outstanding                                 12,091,401
                                                            ===================

Loss per share - basic and diluted                                      ($0.00)
                                                            ===================




















See accompanying notes to interim condensed financial statements             F-2

<PAGE>

<TABLE>

<CAPTION>

                               ENDO NETWORKS, INC.



            STATEMENT OF STOCKHOLDERS' EQUITY AND ACCUMULATED DEFICIT
         Period from inception (January 30, 2001) to December 31, 2001



                                            Common  Stock           Subscriptions       Paid In           Accumulated
                                       Shares          Amount         Receivable        Capital             Deficit
                                 -----------------------------------------------------------------   -------------------
<S>                              <C>                   <C>          <C>                 <C>          <C>

Balance,
        January 30, 2001
        (date of inception)                  -0-             -0-              -0-             -0-                   -0-

Shares issued for
           Assets                      7,060,000           7,060                           21,920
           Cash                          359,000             359          (19,980)         83,958
           Services                    1,472,666           1,473                            8,556
           Rent and expenses             500,000             500                            2,447

Reverse acquisition with
    Discount Mortgage Source,
    Inc. - effective 9/30/2001         2,679,300           2,679                           (2,679)

Net income                                                                                                       (3,735)
                                 -----------------------------------------------------------------   -------------------
Balance
        September 30, 2001            12,070,966         $12,071         ($19,980)       $114,202               ($3,735)
                                 =================================================================   ===================


Stock issued for cash                    159,000             159           19,980          95,485

Net income                                                                                                      (72,558)
                                 -----------------------------------------------------------------   -------------------
Balance
        December 31, 2001             12,229,966          12,230                0         209,687               (76,293)
                                 =================================================================   ===================


</TABLE>


















See accompanying notes to interim condensed financial statements             F-3

<PAGE>

<TABLE>

<CAPTION>

                               ENDO NETWORKS, INC.
                    (formerly Discount Mortgage Source, Inc.)

                             STATEMENT OF CASH FLOWS
                      Three Months Ended December 31, 2001




                                                                                  Three Months
                                                                                     Ended
                                                                                  Dec 31, 2001
                                                                               -------------------
<S>                                                                            <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                                             ($72,558)
    Adjustments to reconcile net loss to net
            cash (used) by operating activities:
                Items not requiring cash - depreciation and amortization                   36,733
                Increase in accounts receivable                                           (27,072)
                Decrease in deposits                                                       10,376
                Increase in prepaid expenses                                                 (320)
                Increase in accounts payable                                               25,299

                                                                               -------------------
NET CASH (USED) BY OPERATING ACTIVITIES:                                                  (27,542)


CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of assets                                                                    (85,992)

CASH FLOWS FROM FINANCING ACTIVITIES:
    Sale of common stock                                                                   95,644
    Subscriptions receivable                                                               19,800
    Proceeds from lease financing                                                          44,898
    Gain / loss from currency fluctuations                                                  1,132
                                                                               -------------------
    Total cash flows from financing activities                                            161,474

                                                                               -------------------

NET INCREASE IN CASH                                                                      $47,940

CASH, BEGINNING OF PERIOD                                                                     352
                                                                               -------------------

CASH, END OF PERIOD                                                                       $48,292
                                                                               ===================

</TABLE>













See accompanying notes to interim condensed financial statements             F-4

<PAGE>

                               ENDO NETWORKS, INC.

                 NOTES TO INTERIM CONDENSED FINANCIAL STATEMENTS
                                December 31, 2001

Note A - Presentation
---------------------

The condensed  balance sheet of the Company as of December 31, 2001, the related
condensed statements of operations for the three months ended December 31, 2001,
and the statement of stockholders' equity and accumulated deficit for the period
from  inception  (January 20, 2001) to December 31, 2001,  and the  statement of
cash  flows for the  three  months  ended  December  31,  2001  included  in the
condensed  financial  statements include all adjustments  (consisting of normal,
recurring  adjustments)  necessary to summarize  fairly the Company's  financial
position  and results of  operations.  The results of  operations  for the three
months ended December 31, 2001 are not necessarily  indicative of the results of
operations  for the full  year or any  other  interim  period.  The  information
included in this Form 10-QSB  should be read in  conjunction  with  Management's
Discussion and Analysis and Financial  Statements and notes thereto  included in
the Company's September 30, 2001 Form 10-KSB.




















                                                                             F-5


<PAGE>



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


Plan of Operation & Managements  Discussion and Analysis of Financial  Condition
and Results of Operations

INTRODUCTION

The following  discussion is the first  quarterly  management's  discussion  and
analysis  for the three month  period  ended  December  31,  2001.  There are no
comparable  prior  period  results  since  Endo  Networks,  Inc.("Endo  Nevada")
acquired  100% of the  shares of Endo  Networks  Inc.("Endo  Canada")  effective
September 30, 2002, and the prior period results filed with the 10K were for the
eight month period  ended  September  30, 2001.  Endo Nevada and Endo Canada are
collectively  referred  to as  "Endo  Networks"  or the  "Corporation".  In this
discussion, all amounts are expressed in US funds.

We wish to caution  readers that this report  includes  certain  forward-looking
information  and statements  within the meaning of US federal  securities  laws.
These forward-looking statements contain information that is generally stated to
be anticipated,  expected or projected by Endo Networks,  and involves known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results and  performance  of Endo Networks to be materially  different  from any
future  results and  performance  expressed  or implied by such  forward-looking
information.

OVERVIEW

Endo  Networks  effectively  commenced  operations  as an  aggregator  of public
network applications September 30, 2001. The Corporation is currently focused on
fine-tuning  its  application   offering  and   strengthening   its  operational
foundation  in   preparation   for   expansion  of  current   revenue-generating
initiatives  in the retail and event market  sectors,  and for the launch of new
initiatives into food service and government markets.

RECENT EVENT

The  Corporation  is engaged in a private  subscription  offering to raise up to
$500,000 additional growth capital, at a price of $0.50 per common share.

DEPLOYMENTS

Endo Networks  targets  deployments of its networks  towards high traffic public
locations.  Generally,  the Christmas selling season caused a temporary shift in
the Corporation's  focus away from new deployments,  toward leveraging  existing
deployments to increase sales revenue.


                                                                               6

<PAGE>



Accordingly,  there were no new  deployments  in the retail  sector  during this
period.

The  Corporation  secured four new  deployments on University  campuses with one
client targeting students.  These deployments will continue until the spring, at
which point they will be utilized for ongoing field marketing.

The Corporation is actively  involved in negotiating new deployments for retail,
events, government and food service for the current and third fiscal quarters.

SPONSORSHIPS

The  Corporation  completed a trial  sponsorship  program with a large  regional
cable  company.  The ten day program  yielded  400 sales leads and 20  confirmed
subscriptions  to  digital  cable.  Benchmark  for  success  of  five  confirmed
subscriptions was substantially exceeded.

New  sponsor  negotiations  and  trial  programs  are  currently  underway  with
promising progress.

PARTNERSHIPS

The Corporation is currently  interviewing  application and business partners to
round out its  application  offering.  Partners  targeted are generally  leading
brands,  or  emerging  brands with  demonstrably  superior  applications.  These
partnerships  will be a key  component of Endo  Network's  success,  providing a
superior  aggregated  service  offering.  Announcements  are  anticipated in the
second and third fiscal quarters.

REVENUES

Revenue in the first  quarter  was  generated  from  professional  services  and
hardware rental.  Professional  services includes content creation,  interactive
design (on-premise touchscreens and websites), marketing consulting and hardware
support  service  contracts.  Hardware  rental  includes both hardware rented to
clients  short-term for use in events and field marketing,  and long-term rental
equipment  permanently  deployed in client  retail  locations.  The  majority of
revenues is derived from recurring contracts and established relationships.

OPERATING EXPENSE

Operating expenses comprise depreciation and amortization ("d&a") on both rental
equipment and fixed assets,  and current operating  expenses  comprising chiefly
salary, facility rental, interest on leases and professional fees.

 The d&a of rental  equipment  will increase in future  quarters as  deployments
increase,  while the d&a on fixed  equipment  is  expected  to  increase  as the
requirement for additional network monitoring equipment increases.

                                                                               7

<PAGE>



Significant  investments  in growth  are being  made by the  Corporation  in the
following  areas:  preparation  of  sales  and  marketing  plan  and  materials,
application   development,   business   partnership   negotiation   and  network
management.  In addition,  the Corporation is gradually  augmenting its staff to
support operations.  Operational  expenses in this category are expected to grow
as additional human resources are added to support growth.

RESEARCH AND DEVELOPMENT

The Corporation has received substantial positive response from existing clients
with the potential to consume more of the  Corporation's  products and services,
and potential new clients in similar and new market categories. In order to meet
the demand for Endo Networks' offering,  it is necessary to invest substantially
in research and development. Clients and potential clients have been involved in
meetings and discourse to determine  software  requirements,  and identify areas
for further  development.  Skilled software developers are involved in utilizing
the results of this research to for the improvement of existing  applications as
well as the development of select new applications.  New application development
is tied to a set timeline based on expected development resources.

LIQUIDITY & CAPITAL RESOURCES

Based on cash on hand,  proceeds from share  subscriptions  and working  capital
available through an equipment  leasing facility,  Endo Networks expects current
capital  resources  and  that  of the  for  mentioned  capital  injection  to be
sufficient to fund existing operations for the second and third fiscal quarters.
The  current  lease  line of  credit is  anticipated  to be  sufficient  to fund
deployments  through the third quarter,  and will require expansion early in the
third quarter. Negotiations to extend this lease line are underway.

OUTLOOK

Endo Networks  expects to continue at an  operational  loss at least through the
second quarter,  with revenues expected to increase in third and fourth quarters
due to expanded network  deployments,  primarily in event and retail categories.
Expenses  are not  anticipated  to expand at the same  rate as  revenues  as new
network deployments can be managed from existing operational resources; however,
there can be no assurance that  unforseen  revenue  shortfalls or  unanticipated
expenses will not occur.





                                                                               8

<PAGE>



PART II.     OTHER INFORMATION


Item  1.     Legal Proceedings.

                  The Company is not involved in any legal proceedings.

Item  2.     Changes in Securities.

                  Registrant has made no changes in its securities.

Item  3.     Defaults Upon Senior Securities.

                  Registrant  has  no  senior   securities  and  accordingly  no
defaults.

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

                  Registrant submitted no matters to a vote of security holders.

Item  5.     Other Information.

                  None.

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

         On October 26, 2001 the company filed an 8-K to disclose the signing of
a Stock Exchange Agreement with Endo Networks,  Inc., to be effective  September
30, 2001, the company's fiscal year end.

         On November 7, 2001, the Company filed an 8-K to disclose the result of
the  stockholder  approved  Stock Exchange  Agreement with Endo Networks,  Inc.,
which  disclosed the Change in Control of the  Registrant,  the  acquisition  of
Assets under the Stock  Exchange  Agreement,  the  resignation  of the Company's
Certifying Accountant,  and the resignation of the sole officer and director and
announcement of new directors elected at the shareholder  meeting on November 2,
2001.

         On December 18, 2001,  the Company  filed an 8-K to disclose that as of
December  5, 2001,  Malone & Bailey,  PLLC had been  retained  as the  Company's
Certifying Accountant.




                                                                               9

<PAGE>


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned there unto duly authorized.

                                          Endo Networks, Inc.
                                          --------------------------------
                                           (Registrant)


                                          BY:  /s/ Peter B. Day
                                               ----------------------------
                                                Peter B. Day
                                          Its:  President

DATE:  February 12, 2002
       Mississauga, Ontario
       Canada





                                                                              10