SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)
   [X]   Quarterly report under Section 13 or 15(d) of the Securities Exchange
         Act of 1934 for the quarterly period ended June 30, 2001.

   [  ]  Transition report under Section 13 or 15(d) of the Securities Exchange
         Act of 1934 for the transition period from              to            .
                                                  ------------    --------------


         Commission file number: 000-32253
                                 ---------


                                 ENTERNET, INC.
        (Exact name of small business issuer as specified in its charter)




              Nevada                                         87-0650264
              ------                                         ----------
 (State or other jurisdiction of                          (I.R.S. Employer
  incorporation or organization)                         Identification No.)





                 1403 East 900 South, Salt Lake City, Utah 84105
               (Address of principal executive office) (Zip Code)


                                 (801) 582-9609
                           (Issuer's telephone number)



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 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 XX No


The number of outstanding shares of the issuer's common stock, $0.001 par value
(the only class of voting stock), as of July 19, 2001 was 10,500,000.


<PAGE>



                                TABLE OF CONTENTS

                          PART I- FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.................................................3

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION............5

                                     PART II

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS. . . . . . . . . . . . ....7

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.....................................7

SIGNATURES....................................................................7

INDEX TO EXHIBITS.............................................................8








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                                        2

<PAGE>



                                     PART I

ITEM 1.           FINANCIAL STATEMENTS

As used herein, the term "Company" refers to Enternet, Inc., a Nevada
corporation, and its subsidiaries and predecessors unless otherwise indicated.
Consolidated, unaudited, condensed interim financial statements including a
balance sheet for the Company as of the quarter ended June 30, 2001, and
statements of operations, and statements of cash flows for the interim period up
to the date of such balance sheet and the comparable period of the preceding
year are attached hereto as Pages F-1 through F-6 and are incorporated herein by
this reference.













                 [THIS SPACE HAS BEEN LEFT BLANK INTENTIONALLY]

                                        3

<PAGE>



INDEX TO FINANCIAL STATEMENTS

Unaudited Balance Sheet as of June 30, 2001..................................F-2

Unaudited Statement of Operations for the
three and six months ended June 30, 2001 and 2000
and March 16, 2000 (Date of Inception) to June 30, 2001......................F-3

Unaudited Statement of Cash Flows for the
six months ended June 30, 2001 and 2000
and March 16, 2000 (Date of Inception) to June 30, 2001......................F-4

Notes to Condensed Financial Statements......................................F-5




                                       F-1

<PAGE>



                                 ENTERNET, INC.
                          (A Development Stage Company)
                                  Balance Sheet
                                  June 30, 2001
                                   (Unaudited)


                                                                   June 30, 2001
                                                                  -------------
                                     Assets

    Cash & cash equivalents                                          $    9,182
                                                                      ---------
         Total Current Assets                                             9,182
                                                                      ---------

                                  Total Assets                       $    9,182

                                                                      ---------


                      Liabilities and Stockholders' Equity
Current Liabilities
     Accounts Payable                                                $      691
     Related Party Payables                                                   0
                                                                      ---------
         Total Current Liabilities                                          691
                                                                      ---------

Stockholders' equity:
     Preferred stock, $.001 par value, 5,000,000 shares authorized,
           no shares issued and outstanding                                   -
     Common stock, $.001 par value, 45,000,000 shares
           authorized, 10,500,000 shares issued and outstanding          10,500
     Additional paid-in capital                                          83,171
     Deficit accumulated during development stage                       (85,180)
                                                                      ---------
         Total stockholders' equity                                       8,491
                                                                      ---------
                   Total liabilities and stockholders' equity        $    9,182

                                                                      ---------













                 See accompanying notes to Financial Statements

                                       F-2

<PAGE>



                                 ENTERNET, INC.
                          (A Development Stage Company)
                        Unaudited Statement of Operations
                 Three months ended June 30, 2001 and 2000, and
               March 16, 2000 (Date of Inception) to June 30, 2001


<TABLE>
<CAPTION>
                                                                     Three months ended            Inception to
                                                                          June 30,                 June 30, 2001
                                                           --------------------------------  -----------------
                                                               2001               2000
                                                           --------------    --------------  -----------------
<S>                                                      <C>                <C>              <C>
Revenues - interest income                                $             -    $           -    $             -

General and administrative costs                                   37,975             3,009             85,180
                                                           --------------    --------------  -----------------

                  Loss before income taxes                        (37,975)           (3,009)           (85,180)

Provision for income taxes                                              -                 -                 -
                                                           --------------    --------------  -----------------

                  Net Loss                                $       (37,975)   $       (3,009   $        (85,180)

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

Income / (Loss) per common share - basic and              $          0.00    $        (0.01)
diluted
                                                           --------------    --------------

Weighted average common shares - basic and                     10,500,000           500,000
diluted                                                    --------------    --------------

</TABLE>





                 See accompanying notes to Financial Statements

                                       F-3

<PAGE>



                                 ENTERNET, INC.
                          (A Development Stage Company)
                        Unaudited Statement of Operations
                     Six months ended June 30, 2001 and 2000



                                                               Six months ended
                                                                   June 30,
                                                       -------------------------
                                                          2001         2000
                                                       ----------    ----------


Revenues - interest income                            $         -   $         -

General and administrative costs                           45,998         3,009
                                                       ----------    ----------

                  Loss before income taxes                (45,998)       (3,009)

Provision for income taxes                                      -             -
                                                       ----------    ----------

                  Net Loss                            $   (45,998)  $    (3,009)

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

Income/(Loss) per common share - basic and diluted    $     (0.01)  $    (0.01)
                                                       ==========    ===========

Weighted average common shares - basic and diluted      9,616,000       500,000
                                                       ==========    ===========








                                       F-4

<PAGE>



                                 ENTERNET, INC.
                          (A Development Stage Company)
                        Unaudited Statement of Cash Flows
                  Six months ended June 30, 2001 and 2000, and
               March 16, 2000 (Date of Inception) to June 30, 2001
<TABLE>
<CAPTION>
                                                                          Six months ended      Inception to
                                                                              June 30,          June 30, 2001
                                                               ------------------------------   -------------
                                                                     2001          2000
                                                               --------------- --------------   -------------
<S>                                                            <C>             <C>              <C>

Cash flows from operating activities:
     Net loss                                                   $     (45,998)  $      38,009    $   (85,180)
          Adjustments to reconcile net loss to net cash
         (used) in operating activities:
             Decrease (increase) in deferred offering costs            11,329               -              -
             Increase (decrease) in accounts payable                  (10,638)              -            691
                                                               --------------  --------------   ------------

             Net cash (used) in operating activities                  (45,307)        (38,009)       (84,489)
                                                               --------------  --------------   ------------

Cash flows from investing activities                                        -                              -
                                                               --------------  --------------   ------------

Cash flows from financing activities
           Proceeds of issuance of common stock for cash               88,671           5,000         93,671
           Proceeds from related party payable                              -          35,000         35,000
           Payments on related party payables                         (35,000)              -        (35,000)
                                                               --------------  --------------   ------------

             Net cash provided by financing activities                 53,671          40,000         93,671
                                                               --------------  --------------   ------------

Net increase in cash                                                    8,364           1,991          9,182

Cash, beginning of period                                                 818               0              -
                                                               --------------  --------------   ------------

Cash, end of period                                             $       9,182   $       1,991    $     9,182

                                                               --------------  --------------   ------------
</TABLE>



                 See accompanying notes to Financial Statements




                                       F-5

<PAGE>




                                 ENTERNET, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                  June 30, 2001
1.       Organization

The Company was organized under the laws of the State of Nevada on March 16,
2000 for the purpose of marketing wholesale vitamin products through the
Internet. The Company has only recently commenced planned operations and is
considered a development stage company as defined in SFAS No. 7.

2.       Unaudited Financial Statements

The unaudited financial statements include the accounts of the Company and
include all adjustments (consisting of normal recurring items), which are, in
the opinion of management, necessary to present fairly the financial position as
of June 30, 2001 and the results of operations and cash flows for the three and
six months ended June 30, 2001. The results of operations for the three and six
months ended June 30, 2001, are not necessarily indicative of the results to be
expected for the entire year.

3.        Basis of Presentation

The accompanying consolidated unaudited condensed financial statements have been
prepared by management in accordance with the instructions in Form 10-QSB and,
therefore, do not include all information and footnotes required by generally
accepted accounting principles and should, therefore, be read in conjunction
with the Company's Form 10-KSB, filed with the Securities and Exchange
Commission. These statements do include all normal recurring adjustments which
the Company believes necessary for a fair presentation of the statements. The
interim operations results are not necessarily indicative of the results for the
full year ended December 31, 2001.

4.       Additional footnotes included by reference

Except as indicated in Notes above, there have been no other material changes in
the information disclosed in the notes to the financial statements included in
the Company's Form 10-KSB, filed with the Securities and Exchange Commission.
Therefore, those footnotes are included herein by reference.



                                       F-6

<PAGE>



ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Plan of Operations

General

Our business plan for the next six months involves 6 milestones. We plan to
achieve these milestones during the following quarters of the year 2001: (1)
conducting market surveys to determine the most receptive market segments in
which to sell health-related products under the VitaMineralHerb.com license we
have purchased (1st quarter of 2001); (2) establishing an office (2nd quarter of
2001); (3) developing a marketing campaign (2nd quarter of 2001); (4) hiring a
salesperson (3rd quarter of 2001); (5) initiating marketing campaign (3rd
quarter of 2001); and (6) achieving revenues (4th quarter of 2001).
During the period from December 31, 2000 to June 30, 2001, we have engaged in no
significant operations other than the closing of our public registration and
preliminary marketing surveys.

For the current fiscal quarter, we have incurred a loss as a result of
organizational expenses, costs associated with setting up an office, management
fees, the repayment of a loan and expenses associated with our marketing
surveys. We anticipate that we will complete our market survey, organizational
and implementation phases by the 3rd quarter of 2001, and that we will not
generate revenues during this time. We anticipate hiring a salesperson in the
3rd quarter of 2001, and expect to begin generating revenues during the 4th
quarter of 2001. However, we may continue to operate at a loss even after
generating some revenue, depending on how our business performs.

Losses

For the six month period from January 1, 2001 to June 30, 2001, we recorded an
operating loss of $45,998. This lack of profitability is attributable to
expenses associated with our public registration, repaying funds loaned to the
Company and organizational associated with starting up our business. We did not
generate any revenues during this period. We expect to continue to operate at a
loss through fiscal 2001.

Capital Expenditures

We expended no amounts on capital expenditures for the quarterly period ending
June 30, 2001.

Capital Resources and Liquidity

We had current assets of $9,182 and total assets of $9,182 as of the quarterly
period ending June 30, 2001. These assets consist of cash on hand of $9,182. Net
stockholders' equity in the Company was $8,491 at June 30, 2001.

Cash flow used in operating activities was $45,307 for the six months ending
June 30, 2001. Cash was used during the first six months to set up an office,
repay a loan and to fund marketing surveys.

The first step in our business plan is to perform market research to determine
the most receptive market segments in which to sell VitaMineralHerb.com
products. After we complete our market survey, we intend to employ a salesperson
to call on medical professionals, alternative health professionals, martial arts
studios and instructors, sports and fitness trainers, other health and fitness


                                        4

<PAGE>



professionals, school and other fund raising programs and other similar types of
customers to interest these professionals in selling to their clients high-
quality, low-cost vitamins, minerals, nutritional supplements, and other health
and fitness products. These professionals would sell the products to their
clients via the Internet.

We have already begun market research relating to our target markets. We have
established an office and are in the process of developing marketing materials.
We intend to advertise and hire a salesperson to market the products. We believe
that during the calendar year 2001, we will spend approximately $100,000 to
before achieving a sustainable sales level where ongoing operations can be
funded out of revenues.

We could be required to seek additional financing from sources not currently
anticipated. We have no current commitments or arrangements with respect to, or
immediate sources of, additional financing and it is not anticipated that any
existing stockholders or lenders will provide any portion of future financing.
Additionally, no assurances can be given that any additional financing, when
needed, will be available or available on acceptable terms. Any inability to
obtain additional financing when required could have a material adverse effect
on our operations, including requiring us to curtail our marketing efforts.

                           PART II - OTHER INFORMATION

                ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

On December 14, 2000 the SEC declared effective the offering of 10,000,000
shares of the Company's common stock at an offering price of one cent ($0.01)
per share pursuant to a Securities Act SB-2 registration statement identified as
SEC file number 33-42436. The offering was fully subscribed and closed on
January 16, 2001 on the receipt of gross proceeds to EnterNet of one hundred
thousand dollars ($100,000).

The Company has used the proceeds of this offering through the period ended June
30, 2001 as follows:

Repayment of loan                                    $35,000
Establishing office                                  $5,500
Marketing surveys                                    $25,800

The use of proceeds detailed above were made to entities unaffiliated with the
Company and were in accord with the use of proceeds described in the Company's
prospectus.

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits Exhibits required to be attached by Item 601 of Regulation S-B
         are listed in the Index to Exhibits on page 6 of this Form 10-QSB, and
         are incorporated herein by this reference.

(b)      Reports on Form 8-K.  No reports on Form 8-K were filed during the
         period covered by this Form 10-QSB.



                                        5

<PAGE>



                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, hereunto duly
authorized, this 20th day of July, 2001.




ENTERNET, INC.


/s/ Ruairidh Campbell
------------------------------
Ruairidh Campbell
President and Director




                                        6

<PAGE>



                                INDEX TO EXHIBITS

EXHIBIT      PAGE
NO.          NO.      DESCRIPTION

3(i)         *        Articles of Incorporation of the Company (incorporated
                      herein by reference from Exhibit No. 3(i) of the Company's
                      Form SB-2 as filed with the Securities and Exchange
                      Commission on July 28, 2000).

3(ii)        *        Bylaws of the Company (incorporated herein by reference
                      from Exhibit 3(ii) of the Company's Form 10-SB as filed
                      with the Securities and Exchange Commission on July
                      28, 2000).


* Incorporated herein by reference from the referenced filings previously made
by the Company.




                                        7