U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                               AMENDMENT NO. 1 TO
                                   FORM 10-QSB

(Mark One)

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

     For the quarterly period ended September 30, 2001

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

     For the transition period from _____ to _______

                         Commission file number 0-32323

                                  TEN STIX INC.
                            -------------------------
        (Exact name of small business issuer as specified in its charter)

           COLORADO                                               84-1351184
           --------                                               ----------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation of organization)                               Identification No.)

                              3101 Riverside Drive
                          Idaho Springs, Colorado 80452
                         -------------------------------
                    (Address of Principal Executive Offices)

                                 (303) 567-0163
                                 --------------
                           (Issuer's telephone number)

                                       N/A
                                       ---
              (Former name, former address and former fiscal year,
                          if changed since last report)

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      X       No

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

Class                                       Outstanding as of November 12, 2001
-----                                       -----------------------------------
Common Stock, $0.001 par value                          17,659,488

Transitional Small Business Disclosure Format (check one)

         Yes              No      X

<PAGE>


PART I.  FINANCIAL INFORMATION

      ITEM 1. FINANCIAL STATEMENTS

            BALANCE SHEETS                                                  2

            INTERIM STATEMENTS OF OPERATIONS                                3

            INTERIM STATEMENTS OF CASH FLOWS                                4

            NOTES TO INTERIM FINANCIAL STATEMENTS                           5

      ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION     6

PART II. OTHER INFORMATION

      ITEM 1. LEGAL PROCEEDINGS                                            13

      ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS                    14

      ITEM 3. DEFAULTS UPON 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                                                                 14

<PAGE>


PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
----------------------------

                                 Ten Stix, Inc.
                          (A Development Stage Company)
                                 BALANCE SHEET
                               September 30, 2001
                                  (Unaudited)


     ASSETS

CURRENT ASSETS
     Cash and cash equivalents                                        $   3,793
     Inventory                                                           81,394
                                                                      ---------

         Total current assets                                            85,187
                                                                      ---------

PROPERTY AND EQUIPMENT
     Equipment                                                          228,338
         Less accumulated depreciation                                  (19,908)
                                                                      ---------
                                                                        208,430

OTHER ASSETS
     Note receivable - shareholder                                        8,500
     Patent/Copyright (net)                                             100,111
                                                                      ---------
                                                                        108,611
                                                                      ---------

         TOTAL ASSETS                                                 $ 402,228
                                                                      =========

     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable                                                   122,292
     Accounts payable - related party                                    30,000
     Current portion of long term debt                                   24,000
                                                                      ---------

         Total current liabilities                                      176,292

LONG-TERM LIABILITIES
     Notes payable - net of discount and current portion                219,286
                                                                      ---------

         Total long-term liabilities                                    219,286
                                                                      ---------

         TOTAL LIABILITIES                                              395,578
                                                                      ---------

STOCKHOLDERS' EQUITY
     Preferred A stock, $0.001 par value;
         100,000 shares authorized; no shares
         issued and outstanding                                            --
     Common stock, $0.001 par value; 500,000,000
         shares authorized; 17,659,488 shares
         issued and outstanding                                          17,659
     Additional paid-in capital                                         696,128
     Deficit accumulated during the development
         stage                                                         (707,137)
                                                                      ---------

                                                                          6,650
                                                                      ---------

         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $ 402,228
                                                                      =========

    The accompanying notes are an integral part of the financial statements.

                                        2
<PAGE>
<TABLE>
<CAPTION>


                                                           Ten Stix, Inc.
                                                    (A Development Stage Company)
                                            STATEMENTS OF LOSS AND ACCUMULATED DEFICIT
                                                            (Unaudited)



                                                  For the period       For the          For the          For the          For the
                                                  from inception    three months     three months      nine months      nine months
                                                (January 10, 1996)     ended            ended            ended            ended
                                                 to September 30,   September 30,    September 30,    September 30,    September 30,
                                                       2001             2001             2000             2001             2000
                                                   ------------     ------------     ------------     ------------     ------------
<S>                                                <C>              <C>              <C>              <C>              <C>
REVENUES
    Fees from games                                $     39,867     $      2,500     $       --       $      2,500     $       --
    Leases                                               28,500           17,300             --             28,500
    Other income                                            250             --               --                250             --
                                                   ------------     ------------     ------------     ------------     ------------

       Total revenue                                     68,617           19,800             --             31,250             --
                                                   ------------     ------------     ------------     ------------     ------------


EXPENSES
    Advertising                                           1,093              210             --                905              188
    Amortization                                         12,240            2,731              520            6,693            1,508
    Consulting fees                                     530,007             --              1,676             --              4,176
    Contract labor                                        3,187             --               --               --               --
    Depreciation                                         19,908            5,806              174           17,419              524
    Insurance                                               959             --               --               --               --
    Interest expense                                     13,480            5,261             --              8,769             --
    Legal and accounting                                 49,114            3,266            3,474            9,932            6,050
    Office expense                                        4,610              268              511              976              631
    Rent                                                  1,660             --                250             --                250
    Repairs and maintenance                                 100              100             --                100             --
    Samples                                               5,038             --               --                705             --
    Salaries - product development                       64,687            2,813            2,812            8,437            8,437
    Salaries - marketing                                 21,562              937              937            2,812            2,812
    Show fees                                             8,698            2,500             --              2,500             --
    Supplies                                              1,346            1,346             --              1,346             --
    1996 and prior startup costs                         19,287             --               --               --               --
    Taxes and licenses                                      860             --               --                275               25
    Travel                                               16,643            2,877             --              8,936             --
    Utilities                                               275             --               --               --               --
                                                   ------------     ------------     ------------     ------------     ------------

       Total expenses                                   774,754           28,115           10,354           69,805           24,601
                                                   ------------     ------------     ------------     ------------     ------------

NET LOSS                                               (706,137)          (8,315)         (10,354)         (38,555)         (24,601)

Accumulated deficit
    Balance, beginning of period                           --           (698,822)        (624,942)        (668,582)        (610,695)
    Treasury stock acquired at a premium                 (1,000)            --               --               --               --
                                                   ------------     ------------     ------------     ------------     ------------

    Balance, end of period                         $   (707,137)    $   (707,137)    $   (635,296)    $   (707,137)    $   (635,296)
                                                   ============     ============     ============     ============     ============

NET LOSS PER SHARE - BASIC                         $      (0.04)    $       --       $       --       $       --       $       --
                                                   ============     ============     ============     ============     ============

WEIGHTED AVERAGE NUMBER OF
       SHARES OUTSTANDING                            16,321,383       17,659,488       17,469,203       17,654,718       17,461,025
                                                   ============     ============     ============     ============     ============


                              The accompanying notes are an integral part of the financial statements.

                                                                 3
<PAGE>


                                               Ten Stix, Inc.
                                       (A Development Stage Company)
                                         STATEMENTS OF CASH FLOWS
                                              (Unaudited)


                                                               For the period
                                                               from inception    For the nine     For the nine
                                                             (January 10, 1996)  months ended     months ended
                                                              to September 30,   September 30,    September 30,
                                                                    2001             2001             2000
                                                                 ---------        ---------        ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                         $(706,137)       $ (38,555)       $ (24,601)
Adjustments to reconcile net loss to net cash flows
     from operating activities:
         Amortization                                               12,240            6,693            1,508
         Depreciation                                               19,908           17,419              524
         Services provided at no charge                             86,250           11,250           11,250
         Increase (decrease) in accounts payable                    12,293            1,763            4,200
         (Increase) in note receivable - shareholder                (8,500)          (8,500)            --
         Increase (decrease) in overdraft                             --               --             (2,143)
         Issuance of common stock for services                     531,000             --              1,500
                                                                 ---------        ---------        ---------

            Net cash flows from operating activities               (52,946)          (9,930)          (7,762)

CASH FLOWS FROM INVESTING ACTIVITIES
     Equipment purchases                                            (3,912)            --               --
     Patent costs accumulated                                      (34,886)            --             (1,150)
                                                                 ---------        ---------        ---------

            Net cash flows from investing activities               (38,798)            --             (1,150)

CASH FLOWS FROM FINANCING ACTIVITIES
     Issuance of common stock                                       95,972            8,400           19,150
     Issuance of preferred stock                                     4,965             --               --
     Repurchase of common shares                                   (10,400)            --               --
     Loans from shareholders                                         5,000             --               --
                                                                 ---------        ---------        ---------

            Net cash flows from financing activities                95,537            8,400           19,150
                                                                 ---------        ---------        ---------

NET INCREASE (DECREASE) IN CASH
     AND CASH EQUIVALENTS                                            3,793           (1,530)          10,238

CASH AND CASH EQUIVALENTS,
     BEGINNING OF PERIOD                                              --              5,323             --
                                                                 ---------        ---------        ---------

CASH AND CASH EQUIVALENTS,
     END OF PERIOD                                               $   3,793        $   3,793        $  10,238
                                                                 =========        =========        =========


                 The accompanying notes are an integral part of the financial statements.

                                                     4
</TABLE>
<PAGE>


                                 Ten Stix, Inc.
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 2001
                                  (Unaudited)



1.   Management's Representation of Interim Financial Information
     ------------------------------------------------------------
     The accompanying financial statements have been prepared by Ten Stix, Inc.
     without audit pursuant to the rules and regulations of the Securities and
     Exchange Commission. Certain information and footnote disclosures normally
     included in financial statements prepared in accordance with generally
     accepted accounting principles have been condensed or omitted as allowed by
     such rules and regulations, and management believes that the disclosures
     are adequate to make the information presented not misleading. These
     financial statements include all of the adjustments which, in the opinion
     of management, are necessary to a fair presentation of financial position
     and results of operations. All such adjustments are of a normal and
     recurring nature. These financial statements should be read in conjunction
     with the audited financial statements at December 31, 2000.

2.   Notes Receivable
     ----------------
     Note receivable - shareholder of $8,500 is not a receivable for stock. The
     note is non-interest bearing. The amount of interest is not material.

3.   Inventory
     ---------
     Inventory of $81,394 consists of ProShuffle devices and parts. This
     inventory was acquired in the Xpectra transaction on May 9, 2001. The
     inventory is valued at cost.

                                        5



<PAGE>


     Statements made in this Form 10-QSB that are not historical or current
facts are "forward-looking statements" made pursuant to the safe harbor
provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section
21E of the Securities Exchange Act of 1934. These statements often can be
identified by the use of terms such as "may," "will," "expect," "believe,"
"anticipate," "estimate," "approximate" or "continue," or the negative thereof.
The Company intends that such forward-looking statements be subject to the safe
harbors for such statements. The Company wishes to caution readers not to place
undue reliance on any such forward-looking statements, which speak only as of
the date made. Any forward-looking statements represent management's best
judgment as to what may occur in the future. However, forward-looking statements
are subject to risks, uncertainties and important factors beyond the control of
the Company that could cause actual results and events to differ materially from
historical results of operations and events and those presently anticipated or
projected. The Company disclaims any obligation subsequently to revise any
forward-looking statements to reflect events or circumstances after the date of
such statement or to reflect the occurrence of anticipated or unanticipated
events.

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

GENERAL

     Since inception, Ten Stix Inc. (the "Company") has focused primarily on the
research, development and design of its products, and generated minimal
revenues. Since inception, the Company has incurred approximately $64,687
relating to research and development expenses. During prior fiscal years, the
principals of the Company invested personal funds and arranged for loans and/or
lines of credit from private lenders to support the business operations of the
Company.

     Management of the Company believes that future sales of Ten to Win and
related products to the casinos in the State of Colorado will be an important
line of business for the Company for the next several years, however, management
intends to pursue the marketplaces of several other primary states. It is
anticipated that the Company will derive its revenues principally from the
marketing and sale of Ten to Win and other related products to casinos generally
located in the States of California, Colorado, Kansas, New Mexico, Nevada, South
Dakota and Wisconsin. Management anticipates that Ten to Win will be leased for
approximately $600.00 per month or sold for approximately $5,000.00 plus a
royalty fee to casinos. Management anticipates that Shotgun 21 will be leased
for approximately $800.00 per month or sold for approximately $10,000 plus a
royalty fee to casinos. Management further anticipates that the marketing and
sale of the products pursuant to the distributorship agreements will result in
revenues during fiscal year 2001.

     During fiscal year ended December 31, 2000, the Company did not generate
any revenues; during fiscal year ended December 31, 1999, the Company generated
$1,176 in gross revenues. During fiscal year 1999, the Company received revenues
from the lease of one of its products, Hold'em 88, to casinos located in
Colorado. However, changes in Colorado's rules and regulations during 1999
pertaining to the gaming industry resulted in the legalization of many other
different types of games. Thus, since Hold'em 88 had originally been designed in
accordance with Colorado's prior rules and regulations, it had a distinct market
disadvantage when the other gaming products were legalized. Hold'em 88 was
replaced by other gaming products in casinos in Colorado. Therefore, the Company
did not generate any revenues from the lease or sale of its products during
fiscal year 2000, but focused on the design and development of its other gaming
products.

                                       6
<PAGE>


THE PRO SHUFFLE

     On approximately May 1, 2001, the Company and Summit International Group,
Inc., a Colorado corporation ("Summit") entered into an asset purchase agreement
(the "Asset Purchase Agreement"). Under the terms of the Asset Purchase
Agreement, the Company acquired from Summit (i) all of Summit's right, title and
interest to U.S. Patent No. 5,718,427 regarding a card shuffling device marketed
by Summit under the name "Pro Shuffle"; (ii) all Pro Shuffle devices, parts,
inventory and equipment related to the manufacturing and assembly of the Pro
Shuffle; (iii) all contracts related to the Pro Shuffle; (iv) all accounts
receivable arising out of the sale or lease of the Pro Shuffle; (v) two
promissory notes made by Mr. Tony Cranford, one payable to Summit in the
approximate amount of $2,500.00 and one payable to Phil Lacerte in the
approximate amount of $6,000.00; (vi) two Blackjack tables located in Las Vegas,
Nevada; and (vii) all other business assets located in Colorado.

     Under the terms of the Asset Purchase Agreement, the Company assumed (i) on
the part of Summit a liability to Xpectra in the approximate amount of
$110,000.00 related to fifty updated Pro Shuffle devices and parts; and (ii) two
liabilities owed by Summit to Jerry Delferro and Dick Stewart in the approximate
amount of $3,000.00, respectively. Pursuant to further terms of the Asset
Purchase Agreement, the Company agreed to (i) pay the amount of $300,000.00 to
Summit as evidenced by the execution of two promissory notes, one payable to
Summit in the amount of $220,000.00 and the other payable to Michael Humecki in
the amount of $80,000.00; and (ii) surrender to Summit all of the shares of
common stock of Summit held of record by Mr. Sawyer and Mr. Cranford,
respectively (an approximate 10% equity interest each). See " - Material
Commitments/Funding".

     In order to facilitate consummation of the Asset Purchase Agreement, an
agreement was entered into dated May 1, 2001 among the Company, Thomas Sawyer,
Tony Cranford, Michael Humecki, P. Chad Lacerte, Roger Adams, and Summit (the
"Agreement"). The purpose of the Agreement was to resolve any and all claims,
counterclaims and defenses that Messrs. Humecki, Lacerte and Adams may have
against Summit pursuant to ongoing litigation. According to the terms of the
Agreement, the parties agreed that (i) the Company would purchase from Mr.
Humecki his 10.04% equity interest in Summit; (ii) the Company would pay Mr.
Humecki $100,000, with $20,000 paid upon execution of the Agreement and $80,000
evidenced by a promissory note; (iii) the Company would sign a security
agreement for the benefit of Mr. Humecki as security for the payments under the
promissory note; and (iv) Messrs. Humecki, Lacerte, Adams and Summit would waive
and release all claims, counterclaims, causes of action and demands, known or
unknown, that they have or may claim to have against each other.

     As of May 2001, the marketing and sale of the Pro Shuffle generates
approximately $5,600 in monthly revenue; however, the Company pays debt service
of $2,800 monthly in accordance with the terms of the above-described notes.

                                       7
<PAGE>


RESULTS OF OPERATION

Nine-Month Period Ended September 30, 2001 Compared to Nine-Month Period Ended
September 30, 2000

     The Company's net losses for the nine-month period ended September 30, 2001
were approximately $38,555 compared to a net loss of approximately $24,601 for
the nine-month period ended September 30, 2000 (an increase of $13,954 or 57%).

     During the nine-month period ended September 30, 2001, the Company
generated approximately $31,250 in revenue compared to $-0- revenue generated
during the nine-month period ended September 30, 2000. The generation of revenue
during the nine-month period ended September 30, 2001 was comprised primarily of
$28,500 received pursuant to lease payments from third-parties to the Company
for gaming products and $2,500 received as fees from sale of gaming products.
The lack of generated revenue during the nine-month period ended September 30,
2000 resulted primarily from insufficient capital necessary to fund operational
expenses, thus adversely affecting the marketing and distribution of the
Company's gaming product.

     During the nine-month period ended September 30, 2001, the Company recorded
operating expenses of $69,805 compared to $24,601 of operating expenses recorded
in the same period for 2000 (an increase of $45,204 or 184%). Operating expenses
for the nine-month period ended September 30, 2001 primarily include (i) $17,419
as depreciation expense; (ii) $9,932 in legal and accounting expense; (iii)
$8,936 as travel expense; and (iv) $8,769 in interest expense. The increase in
operational expenses during the nine-month period ended September 30, 2001
compared to the nine-month period ended September 30, 2000 was primarily due to
(i) an increase in depreciation expenses to $17,419 from $524; (ii) an increase
in travel expenses to $8,936 from $-0- relating to the increased marketing of
the Company's gaming products; and (iii) an increase in interest expense to
$8,769 from $-0-.

     As discussed above, although the Company generated revenues in the amount
of $31,250 during the nine-month period ended September 30, 2001, the increase
in net loss during such period as compared to the nine-month period ended
September 30, 2000 is attributable primarily to a substantial increase in
operating expenses. The Company's net losses during the nine-month period ended
September 30, 2001 were approximately ($38,555) or ($nil) per common share
compared to a net loss of approximately ($24,601) or ($nil) per common share (an
increase of $13,954 or 57%) during the nine-month period ended September 30,
2001. The weighted average of common shares outstanding were 17,654,718 for the
nine-month period ended September 30, 2001 compared to 17,461,025 for the
nine-month period ended September 30, 2000.

                                       8
<PAGE>


Three-Month Period Ended September 30, 2001 Compared to Three-Month Period Ended
September 30, 2000

     The Company's net losses for the three-month period ended September 30,
2001 were approximately $8,315 compared to a net loss of approximately $10,354
for the three-month period ended September 30, 2000 (a decrease of $2,039 or 20%
By the way, this percentage was never correct). During the three-month period
ended September 30, 2001, the Company generated approximately $19,800 in revenue
compared to $-0- revenue generated during the three-month period ended September
30, 2000.

     During the three-month period ended September 30, 2001, the Company
recorded operating expenses of $28,115 compared to $10,354 of operating expenses
recorded in the same period for 2000 (an increase of $17,761 or 173%). Operating
expenses for the three-month period ended September 30, 2001 primarily include
(i) $5,806 as depreciation expense; (ii) $3,266 in legal and accounting expense;
(iii) $2,877 as travel expense; and (iv) $5,261 in interest expense. The
increase in operational expenses during the three-month period ended September
30, 2001 compared to the three-month period ended September 30, 2000 was
primarily due to (i) an increase in depreciation expense to $5,806 from $174;
(ii) an increase in interest expense to $5,261 from $-0-; and (iii) an increase
in travel expense to $2,877 from $-0- relating to the increased marketing of the
Company's gaming products.

     As discussed above, the Company generated revenue in the amount of $19,800
during the three-month period ended September 30, 2001, which primarily resulted
in the decrease in net loss during such period as compared to the three-month
period ended September 30, 2000. The Company's net losses during the three-month
period ended September 30, 2001 were approximately ($8,315) or ($nil) per common
share compared to a net loss of approximately ($10,354) or ($nil) per common
share (a decrease of $2,039 or 20%) during the three-month period ended
September 30, 2000. The weighted average of common shares outstanding were
17,659,488 for the three-month period ended September 30, 2001 compared to
17,469,203 for the three-month period ended September 30, 2000.

LIQUIDITY AND CAPITAL RESOURCES

     The Company is currently experiencing a severe liquidity crisis and must
raise additional capital. Further, the Company has not generated sufficient cash
flow to fund its operations and activities. Historically, the Company has relied
upon internally generated funds, funds from the sale of shares of stock and
loans from its shareholders and private investors to finance its operations and
growth. Management intends to raise additional capital through further public or
private offerings of its stock and through bank loans or loans from private
investors, although there can be no assurance that the Company will be able to
obtain such financing. The Company's future success and viability are entirely
dependent upon the Company's ability to raise additional capital. Management is
optimistic that the Company will be successful in its capital raising efforts;
however, there can be no assurance that the Company will be successful in
raising additional capital. The failure to raise additional capital will have a
material and adverse affect upon the Company and its shareholders. The Company's
financial statements have been prepared assuming that it will continue as a
going concern and, accordingly, do not include adjustments relating to the
recoverability and realization of assets and classification of liabilities that
might be necessary should the Company be unable to continue in operations.

Nine-Month Period Ended September 30, 2001

     As of September 30, 2001, the Company's current assets were $85,187 and its
current liabilities were $176,292, which resulted in a working capital deficit
of $91,105. As of September 30, 2001, the Company's total assets were $402,228
consisting primarily of $208,430 in cost of property and equipment and $108,611
in cost of its patents/copyright of the Company's products. As of September 30,
2001, the Company's total liabilities were $395,578 consisting primarily of
$243,286 in notes payable. As of September 30, 2001, the Company's total assets
exceeded its total liabilities by $6,650.

                                       9
<PAGE>


     Stockholders' equity decreased from $25,555 as of December 31, 2000 to
$6,650 at September 30, 2001.

     For the nine-month period ended September 30, 2001, the net cash used for
operating activities was $9,930 compared to net cash used for operating
activities of $7,762 for the nine-month period ended September 30, 2000 (an
increase of $2,168). As discussed above, the increase was primarily comprised of
(i) a net loss of $38,555 for the nine-month period ended September 30, 2001
compared to a net loss of $24,601 for the nine-month period ended September 30,
2000 (an increase of $13,954); and (ii) $17,419 incurred as depreciation expense
for the nine-month period ended September 30, 2001 compared to $524 as
depreciation expense for the nine-month period ended September 30, 2000.

     The Company decreased its cash outlay for capital expenditures to zero
during the nine-month period ended September 30, 2001 from $1,150 for the
nine-month period ended September 30, 2000, which related primarily to the
purchase of equipment and accumulated patent costs.

     The Company decreased its net cash from financing activities for the
nine-month period ended September 30, 2001 to $8,400 compared to $19,150 for the
nine-month period ended September 30, 2000. The decrease was attributable to the
receipt of notes payable/loans from shareholders and sale of stock.

MATERIAL COMMITMENTS/FUNDING

Material Commitments

     Cranford Assignment Agreement

     A significant and estimated material commitment for the Company for fiscal
year 2001 is the amounts due and owing under an assignment agreement with Mr.
Tony Cranford dated January 19, 2001 (the "Cranford Assignment Agreement").
Pursuant to the Cranford Assignment Agreement, Mr. Cranford assigned all of his
right, title and interest in Bet the House, including his rights to the
provisional patent application no. 60/240.091, to the Company. In accordance
with the terms and provisions of the Cranford Assignment Agreement, the Company
agreed to pay Mr. Cranford (i) for a period of six months a monthly royalty fee
of $175.00 for each Bet the House game that the Company leases to a third party
during the six month period; and (ii) an aggregate purchase price of either (a)
an amount to be calculated by multiplying the average monthly gross revenues
generated by the Company for each Bet the House game leased during the six month
period by three, or (b) $30,000, whichever is greater. The terms of Cranford
Assignment Agreement further provide that such aggregate purchase price may be
paid by the Company to Mr. Cranford on a monthly basis or in one aggregate
payment, with such aggregate purchase price to be paid in full no later than
March 31, 2002.

     Asset Purchase Agreement

     A significant and estimated material commitment for the Company for fiscal
year 2001 is the amount of $300,000.00 due and owing under the terms of the
Asset Purchase Agreement. Pursuant to the terms of the Asset Purchase Agreement,
the Company agreed to pay the amount of $300,000.00, as evidenced by the
execution of two promissory notes.

                                       10
<PAGE>


     The first promissory note dated May 1, 2001 is in the amount of $80,000.00
and is payable to Michael Humecki (the "Humecki Promissory Note"). The terms of
the Humecki Promissory Note requires the Company to make payments as follows:
(i) on the 15th of each month commencing June 15, 2001, the greater of either
(a) 50% of gross revenues collected during the prior month from the lease or
sale by the Company of any of the assets acquired by the Company pursuant to the
Asset Purchase Agreement (including the Pro Shuffle) or (b) $2,000.00; (ii) on
the 15th of the month after the receipt of 25% of aggregate gross funds raised
by the Company at any time on or after May 1, 2001 pursuant to any private or
public offering of its securities (but such 25% shall not be paid on the first
$100,000 of funds so raised by the Company); and (iii) interest at the rate of
8% per annum commencing May 1, 2002 on any portion of the $80,000 outstanding on
the first of each month payable monthly.

     The Company and Michael Humecki entered into a security agreement dated May
1, 2001 (the "Security Agreement") pursuant to which the Company agreed to grant
to Mr. Humecki a security interest in certain property which includes, but not
limited to, the following: (i) all items of personal property which were
acquired by the Company from Summit; (ii) all deposit accounts; (iii) all
receivables; (iv) all inventory; and (v) all equipment.

     The second promissory note dated May 1, 2001 is in the amount of
$220,000.00 and is payable to Summit International Group, Inc. (the "Summit
Promissory Note"). The terms of the Summit Promissory Note require the Company
to make payments to Summit after payment in full is made by the Company of the
Humecki Promissory Note as follows: (i) on the 15th of each month commencing
after the Humecki Promissory Note, the greater of either (a) 50% of gross
revenues collected during the prior month from the lease or sale by the Company
of any of the assets acquired by the Company pursuant to the Asset Purchase
Agreement (including the Pro Shuffle) or (b) $2,000.00; (ii) on the 15th of the
month after the receipt of 25% of aggregate gross funds raised by the Company at
any time on or after May 1, 2001 pursuant to any private or public offering of
its securities (but such 25% shall not be paid on the first $100,000 of funds so
raised by the Company and not until after payment in full of the Humecki
Promissory Note); and (iii) interest at the rate of 8% per annum commencing May
1, 2004 on any portion of the $220,000.00 outstanding on the first of each month
payable monthly.

     A significant and estimated material commitment for the Company for the
year 2001 is a liability to Xpectra of up to an aggregate amount of
approximately $110,000.00 (the "Xpectra Liability"). According to the terms of a
letter dated May 9, 2001 from the Company to Xpectra, the Company acknowledged
the valuation of $110,174.98 relating to Pro Shuffle units, parts, tools and
drawings held by Xpectra (the "Xpectra Inventory"). The Xpectra Liability
represents an opportunity for the Company to purchase from Xpectra some or all
of the Xpectra Inventory, up to an aggregate $110,174.98. The Xpectra Liability
represents an agreement of the parties to determine quantity to be acquired and
price. The Company may purchase the entire Xpectra Inventory for a substantial
discount from full price, or the Company may select only certain items to be
purchased from the Xpectra Inventory at a lesser or no discount. The Xpectra
Inventory is currently being stored in Xpectra's warehouse on pallets.

     As of the date of this Quarterly Report, Xpectra has informed the Company
that it will sell the entire Xpectra Inventory for a purchase price of
approximately $35,000.00.

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<PAGE>


Funding

     During September 2000, the Company completed an offering in which it raised
$61,172 pursuant to which it sold 244,688 shares of Common Stock at $0.25 per
share. During December 2000, the Company completed an offering in which it
raised $7,000 pursuant to which it sold 14,000 shares of Common Stock at $0.50
per share. The securities were not registered under the Securities Act and were
therefore being offered pursuant to an exemption from registration provided by
Section 4(2) and Regulation D, Rule 504, of the Securities Act. During fiscal
years ended December 31, 1999 and 2000, management used approximately all of the
proceeds received for the Company's capital requirements of $69,000, which
consisted primarily of advertising and travel expenses and legal and accounting
fees.

     Based upon a twelve-month plan proposed by management, it is anticipated
that such a work plan would require approximately $230,000 of additional
financing designed to fund the general business operations. As of the date of
this Quarterly Report, the Company does not have any material commitments other
than those described above nor does management anticipate any further material
commitments within the next twelve months. It is anticipated that any
expenditures to be incurred by the Company will be operational. Management
anticipates that a substantial portion of the initial budget of $230,000 for the
twelve-month work plan, which includes such expenditures, will be funded
pursuant to generation of revenue, public or private offerings, including
private placement offerings under Regulation S and/or Regulation D, Rule 506, of
its debt or equity securities and future advancements. The Company may not be
able to raise such funds and, therefore, the successful marketing of its
products may not be accomplished.

     From the date of this Quarterly Report, management believes that the
Company can satisfy its cash requirements for approximately the next six months
based on its ability to obtain advances from certain investors and related
parties. In the event the Company is unable to obtain advances from certain
investors and related parties, management believes that the Company can satisfy
its cash requirements for approximately the next three months from its liquid
assets.

     As of the date of this Quarterly Report, the Company has generated little
revenue from operations, has a working capital deficit and a retained earnings
deficit. Therefore, the Company has been deemed a "going concern" by its
independent auditors, Comiskey & Company, P.C., as noted in the financial
statements attached hereto. There is substantial doubt that the Company will be
able to retain its status as a "going concern", that is assumption of the
continuity of operations of the Company in the absence of evidence to the
contrary. Management believes that it can maintain its status as a "going
concern" based on its ability to raise funds pursuant to future public and
private offerings and to obtain advances and minimize operating expenses by not
duplicating expenses or incurring needless expenses.

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<PAGE>


PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     During 1997, Progressive Games, Inc. ("Progressive") believed that the
Company was infringing upon certain of its products by virtue of the design,
manufacture and marketing of the Company's Ten Stix 21 and Shotgun 21 gaming
products. Therefore, on approximately November 20, 1997, Civil Action
97-WI-2689-CB, Progressive Games, Inc. v. Amusements Extra, Ten Stix, et. al.,
was filed in the Federal District Court in Denver, Colorado. This was a patent
infringement against the Company and others alleging certain of the Company's
products/games infringed upon Progressive's patents (the "Lawsuit"). Mikohn
Corporation ("Mikohn") purchased Progressive and became a party to the lawsuit.

     Subsequently, the Company was dismissed as a party defendant to the
Lawsuit. Thus, the Company and Mikohn, BCD Mecanique Ltd. ("BCD"), DEQ Casinos,
Ltd. ("DEQ") and Amusements "Extra" Inc. ("AEI") entered into an amended
memorandum of agreement dated September 23, 1998 (the "Memorandum Agreement").
The Memorandum Agreement provided that (i) during litigation of the Lawsuit,
Mikohn would grant to the Company a license allowing the Company to continue to
manufacture, use, operate, sell and/or lease the Company's products, which
allegedly infringed upon Progressive's patents, in exchange for payment by the
Company of a royalty fee; and (ii) in the event the remaining defendants to the
Lawsuit were successful, the Company would be released from such contractual
obligations and any further liability.

     Subsequently, the remaining parties to the Lawsuit settled and made the
Company a party to the settlement. Therefore, the Company was released from all
of its duties and obligations under the license agreement and the underlying
license contained in the Memorandum Agreement was null and void.

     Therefore, based upon settlement of the lawsuit, on September 23, 1998, the
Company and BCD entered into a letter of understanding which modified the
Memorandum Agreement whereby (i) the Company assigned to BCD ownership of its
rights in the "continuation-in-part" under the Patent Application relating to
its lighting invention in all countries except for the United States of America,
(ii) the Company would remain the owner of all other patent rights with respect
to all aspects of the invention as claimed in the continuation-in-part to the
Patent Application; (iii) BCD granted to the Company the right to use in Ten
Stix 21 any such features contained in the Patent Application, (iv) in the event
Ten Stix 21 is not in the format described in the Memorandum Agreement, the
Company agreed to pay BCD a royalty fee of $175.00 per table for use of such
features, and (v) the Company agreed that BCD, DEQ and AEI shall have the right
to use the Company's inventions as described in the Memorandum Agreement along
with any improvements and/or additions to those reserved patent rights.

     The Company had filed a patent application with the United States
Department of Commerce, Patent and Trademark Office for patent protection of its
"lighting" invention (the "Patent Application"). If granted, the Company
thereafter would need to file numerous international patent applications in
countries around the world in which the Company wanted protection of its
inventions. Therefore, because of the associated expenses, the Company agreed to
assign its ownership rights in the "continuation-in-part" under the Patent
Application relating to the "lighting invention" to allow BCD to allow BCD to
file for such international patents, excluding the United States, that relate to
the "lighting" protection. The parties agreed that if the Company does not first
receive the U.S. lighting patent and BCD does receive such patent protection
from the U.S., BCD would allow the Company to have exclusive rights to such
lighting patent in the United States.

     Management is not aware of any other legal proceedings contemplated by any
governmental authority or other party involving the Company or its properties.
No director, officer or affiliate of the Company is (i) a party adverse to the
Company in any legal proceedings, or (ii) has an adverse interest to the Company
in any legal proceedings. Management is not aware of any other legal proceedings
pending or that have been threatened against the Company or its properties.

                                       13
<PAGE>


ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

     On January 23, 2001, Messrs. Sawyer and Cranford elected to convert their
respective shares of Preferred Stock into shares of Common Stock. The Company
issued 7,600,000 shares of Common Stock to Mr. Sawyer and Mr. Cranford,
respectively. The securities were issued in reliance upon an exemption from
registration provided by Section 4(2) and Regulation D, Rule 506, of the
Securities Act. No underwriter was involved in the transaction, and no
commissions or other remuneration were paid in connection with the conversion of
the securities.

     During the first quarter of fiscal year 2001 (prior to April 6, 2001), the
Company issued 16,800 shares of its Common Stock at $0.50 per share for an
aggregate consideration of $8,400. The Company issued shares of Common Stock to
seven investors, none of which were accredited investors as that term is defined
under Regulation D. The Company issued the shares in reliance upon the exemption
from registration provided by Section 4(2) and Regulation D, Rule 504, of the
Securities Act. The investors each executed a subscription agreement and
acknowledged that the securities to be issued have not been registered under the
Securities Act, that they understood the economic risk of an investment in the
securities, and that they had the opportunity to ask questions of and receive
answers from the Company's management concerning any and all matters related to
the acquisition of securities. No underwriter was involved in the transactions,
and no commissions or other remuneration were paid in connection with the offers
and sales of the securities.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     No report required.

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

     No report required.

ITEM 5. OTHER INFORMATION

     No report required.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     No report required.


SIGNATURES

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


                                                TEN STIX INC.

Dated: January 8, 2002                          By: /s/ Thomas E. Sawyer
                                                ------------------------
                                                Thomas E. Sawyer, President



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