U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                 FORM 10-QSB/A-1

(Mark One)

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

                  For the quarterly period ended June 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 33-43423

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

                 DELAWARE                               65-0159115
     ---------------------------------              -------------------
       (State or other jurisdiction                   (IRS Employer
     of incorporation or organization)              Identification No.)

                          19100 Von Karman Ave, Ste 450
                                Irvine, CA 92612
                    ----------------------------------------
                    (Address of principal executive offices)

                                 (949) 553-8002
                           ---------------------------
                           (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 [X]                  No [ ]


         Number of shares outstanding of each of the issuer's classes of common
equity, as of March 22, 2002: 5,133,883 shares of common stock, $0.00067 par
value per share.

<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                                    CONTENTS
                                    --------






Accountant's Review Report                                                1

Consolidated Balance Sheets as of June 30, 2001
  and December 31, 2000                                                   2

Consolidated Statements of Changes in Stockholders'
  Equity for the Six months ended June 30, 2001 and
   Year Ended December 31, 2000                                           3

Consolidated Statements of Operations for the Three months and Six
   Months Ended June 30, 2001 and 2000                                    4

Consolidated Statements of Cash Flows for the Six months
   Ended June 30, 2001 and 2000                                           5

Notes to Consolidated Financial Statements as of June 30, 2001
  and December 31, 2000                                                   6-17


<PAGE>

                           Accountants' Review Report
                           --------------------------



To the Board of Directors
  NuWay Energy, Inc. and Subsidiaries


We have reviewed the accompanying consolidated balance sheets of NuWay Energy,
Inc. and Subsidiaries as of June 30, 2001, and the related consolidated
statements of operations, changes in stockholders' equity and cash flows for the
three and six months ended June 30, 2001 and 2000 in accordance with the
Statements for Accounting and Review Services issued by the American Institute
of Certified Public Accountants. All information included in these financial
statements is the representation of the management of NuWay Energy, Inc.

A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements in order for them to be in
conformity with generally accepted accounting principles.

The balance sheet for the year ended December 31, 2000 was audited by us and we
expressed an unqualified opinion on it in our report dated March 15, 2001, and
restated on March 12, 2002 but we have not performed any auditing procedures
since that date.

Shubitz Rosenbloom & Co., P.A.




Miami, Florida
August 10, 2001
(Except as to Note 1 N
Whose date is March 22, 2002)

<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                           CONSOLIDATED BALANCE SHEETS
                       JUNE 30, 2001 AND DECEMBER 31, 2000


                                     ASSETS
                                     ------

<TABLE>
<CAPTION>

                                                        June 30,      December 31,
                                                          2001            2000
                                                      ------------    ------------
<S>                                                   <C>             <C>
CURRENT ASSETS
   Cash and Cash Equivalents                          $  4,055,992    $  4,422,715
   Accounts Receivable, Less $150,000 of Allowance
     for Doubtful Accounts in 2001 and 2000              1,287,299       1,382,382
   Inventory                                               538,097         539,560
   Prepaid Expenses and Other Current Assets                98,511         136,717
                                                      ------------    ------------

             Total Current Assets                        5,979,899       6,481,374
                                                      ------------    ------------

PROPERTY AND EQUIPMENT - NET                             3,187,128       3,708,795
                                                      ------------    ------------

OTHER ASSETS
   Deposits                                                 86,610          11,609
   Other Assets                                             13,450          46,208
                                                      ------------    ------------

             Total Other Assets                            100,060          57,817
                                                      ------------    ------------

   TOTAL ASSETS                                       $  9,267,087    $ 10,247,986
                                                      ============    ============


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

CURRENT LIABILITIES
   Accounts Payable and Accrued Expenses              $    523,598    $    190,703
   Debentures Payable net of deferred debt issuance
     costs of  $32,250 and $64,500 in 2001 and 2000      3,467,750       3,435,500
                                                      ------------    ------------

             Total Current Liabilities                   3,991,348       3,626,203
                                                      ------------    ------------

COMMITMENTS AND CONTINGENCIES                                   --              --

             Total Liabilities                           3,991,348       3,626,203
                                                      ------------    ------------

STOCKHOLDERS' EQUITY
   Common Stock, $.00067 Par Value 15,000,000
      Shares Authorized, 4,225,000 Shares Issued
      4,221,600 Shares Outstanding and 3,400 Shares
      held as Treasury Stock                                 2,831           2,831
   Additional Paid-In Capital                           13,796,612      13,796,612
   Accumulated Other Comprehensive Income (Loss)          (560,238)       (560,326)
   Retained Earnings (Deficit)                          (7,958,231)     (6,612,099)
   Treasury Stock, at cost                                  (5,235)         (5,235)
                                                      ------------    ------------

             Total Stockholders' Equity                  5,275,739       6,621,783
                                                      ------------    ------------

   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $  9,267,087    $ 10,247,986
                                                      ============    ============
</TABLE>

         Read accountants' review report and notes to financial statements.

                                      - 2 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                   FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND
                      FOR THE YEAR ENDED DECEMBER 31, 2000

<TABLE>
<CAPTION>

                                    Common Stock
                             -------------------------                 Accumulated
                               Number          Par        Additional      Other        Retained
                                 of           Value        Paid-In    Comprehensive    Earnings       Treasury     Comprehensive
                               Shares        $.00067       Capital    Income (Loss)    (Deficit)        Stock      Income (Loss)
                             -----------   -----------   -----------   -----------    -----------    -----------   -----------
<S>                            <C>         <C>           <C>           <C>            <C>            <C>           <C>
BALANCE JANUARY 1, 2000        3,300,000   $     2,211   $10,203,732   ($  415,193)   ($1,912,776)   $     5,235   $        --

ADJUSTMENT FOR
 FOREIGN CURRENCY
 TRANSLATIONS                         --            --            --      (145,133)            --             --      (145,133)

WARRANTS ISSUED IN
 EXCHANGE FOR SERVICE                 --            --     1,991,700            --             --             --            --

COMPENSATION EXPENSES
 OF VARIABLE OPTION PLANS             --            --       491,900            --             --             --            --

COMPENSATION ON RE-PRICING
 OF STOCK OPTIONS                     --            --        34,900            --             --             --            --

EXERCISE OF
 STOCK OPTIONS                   725,000           486       724,514            --             --             --            --

STOCK ISSUED AS
 COMPENSATION                    200,000           134       349,866            --             --             --            --

NET (LOSS) FOR THE YEAR
 ENDED DECEMBER 31, 2000              --            --            --            --     (4,699,323)            --    (4,699,323)
                             -----------   -----------   -----------   -----------    -----------    -----------   -----------

BALANCE DECEMBER 31, 2000      4,225,000         2,831    13,796,612      (560,326)    (6,612,099)         5,235

Comprehensive Income
 (Loss) For The
  Year Ended
  December 31, 2001                                                                                                ($4,844,456)
                                                                                                                   ===========

ADJUSTMENT FOR
 FOREIGN CURRENCY
 TRANSLATIONS                         --            --            --            89             --             --            89

NET (LOSS) FOR THE
 SIX MONTHS ENDED
 JUNE 30, 2001                        --            --            --            --     (1,346,132)            --    (1,346,132)
                             -----------   -----------   -----------   -----------    -----------    -----------   -----------

BALANCE JUNE 30, 2001          4,225,000   $     2,831   $13,796,612   ($  560,237)   ($7,958,231    $     5,235
                             ===========   ===========   ===========   ===========    ===========    ===========

Comprehensive
 Income (Loss) For
  The Six Months
  Ended June 30, 2001                                                                                              ($1,346,043)
                                                                                                                   ===========
</TABLE>

        Read accountants review report and notes to financial statements.

                                      - 3 -

<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                           Three Months Ended              Six Months Ended
                                       --------------------------    --------------------------
                                         June 30,       June 30,       June 30,       June 30,
                                           2001           2000           2001           2000
                                       -----------    -----------    -----------    -----------
<S>                                    <C>            <C>            <C>            <C>
Revenues:
   Rental Income                       $   117,383    $   164,344    $   265,718    $   404,486
   Sales of Cigars                          37,859         50,931         71,775         75,232
                                       -----------    -----------    -----------    -----------

        Total Revenues                     155,242        215,275        337,493        479,718
                                       -----------    -----------    -----------    -----------

Costs and Expenses:
   Impairment Charges                      152,652             --        347,071             --
   Selling, General & Administration       825,095        534,639      1,344,146      1,062,484
   Depreciation                             34,239         29,007         50,869         61,854
   Costs of Cigar Sales                     21,932         44,668         43,316         64,451
                                       -----------    -----------    -----------    -----------

        Total Cost and Expenses          1,033,918        608,314      1,785,402      1,188,789
                                       -----------    -----------    -----------    -----------


Operating Income (Loss)                   (878,676)      (393,039)    (1,447,909)      (709,071)

   Interest Income                          45,266         15,368        101,777         25,757
                                       -----------    -----------    -----------    -----------

         Net Other Income (Expenses)        45,266         15,368        101,774         25,757
                                       -----------    -----------    -----------    -----------



Income (Loss) Before Income Taxes         (833,410)      (377,671)    (1,346,132)      (683,314)

Income Taxes (Provision) Benefit                --             --             --             --
                                       -----------    -----------    -----------    -----------


Net Income (Loss)                      ($  833,410)   ($  377,671)   ($1,346,132)   ($  683,314)
                                       ===========    ===========    ===========    ===========

Earnings (Loss) Per Common Share and
   Common Share Equivalent - Basic
    and Fully Diluted

   Common Share Equivalent
    Outstanding                          4,221,600      3,296,600      4,221,600      3,296,600
                                       ===========    ===========    ===========    ===========


                 Net Income (Loss)     ($      .20)   ($      .11)   ($      .32)   ($      .21)
                                       ===========    ===========    ===========    ===========
</TABLE>

       Read accountants' review report and notes to financial statements.

                                      - 4 -

<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000


                                                         2001           2000
                                                     -----------    -----------

CASH FLOWS FROM OPERATING ACTIVITIES

  Net Income (Loss)                                  ($1,346,132)   ($  683,314)
  Adjustments to Reconcile Net Income
   to Net Cash Provided by Operating Activities:
      Depreciation                                        50,869         61,854
      Asset Impairment Charges                           247,071             --
      Amortization of Deferred Debt Issuance Costs        32,250             --
      Loss on Sale of Fixed Assets                        23,571          4,867

  Changes in Assets - (Increase) Decrease:
      Accounts Receivable                                 95,083        105,512
      Prepaid Expenses and Other Current Assets           38,206        107,771
      Inventory of Cigars                                  1,463         57,646
  Changes in Liabilities - Increase (Decrease):
      Accounts Payable and Accrued Expenses              332,896        (16,507)
                                                     -----------    -----------

      Net Cash Provided by (Used In) Operating
        Activities                                      (524,723)      (362,171)
                                                     -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

  Proceeds on Sale of Fixed Assets                       188,351        225,423
  Fixed Assets, Other                                     11,803        (11,247)
  Other Assets                                           (42,243)        14,894
                                                     -----------    -----------

     Net Cash Provided By (Used by)Investing
        Activities                                       157,911        229,120
                                                     -----------    -----------

Effect of Exchange Rate Changes on Cash and
  Cash Equivalents                                            89       (133,643)
                                                     -----------    -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS    (366,723)      (266,694)

CASH AND CASH EQUIVALENTS - BEGINNING                  4,422,715        800,223
                                                     -----------    -----------

CASH AND CASH EQUIVALENTS - ENDING                   $ 4,055,992    $   533,529
                                                     ===========    ===========


SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:

Cash Paid During the Period for:
  Interest                                           $     4,696    $    14,592
                                                     ===========    ===========
  Income Taxes, Foreign                              $        --    $        --
                                                     ===========    ===========

       Read accountants' review report and notes to financial statements.

                                      - 5 -

<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 1.  Summary of Significant Accounting Policies
         ------------------------------------------

         A  Business and Organization
            -------------------------

            NuWay Energy, Inc. (formerly Latin American Casinos, Inc.) is a
            Delaware corporation incorporated on September 19, 1991 (See Note
            11). In 1994, the company entered in the gaming and casino business,
            primarily in Peru and other Latin American countries renting casino
            type slot machines and other gaming equipment.

            In 1994, the company formed a Peruvian subsidiary; in 1995, the
            company formed a Colombian subsidiary and in 1997, the company
            formed a subsidiary in Nicaragua (which has subsequently been
            liquidated) that are in the gaming and casino business in Latin
            America (See Note 9C). The operations include the renting of casino
            slot machines and other gaming equipment to casino operators. As of
            June 30, 2001, the company had acquired approximately 8,000 slot
            machines, approximately 3,000 of which have been acquired for parts
            and other related equipment, at a total cost of $3,809,542 including
            applicable costs for transportation, duty and refurbishing (See Note
            10).

         B  Principles of Consolidation
            ---------------------------

            The accompanying consolidated financial statements include the
            accounts of the company and its wholly-owned subsidiaries, Latin
            American Casinos Del Peru S.A. (formerly known as Latin America
            Casinos, Inc. S.A.) a Peruvian Corporation and Latin American
            Casinos of Colombia LTDA, a Colombian Corporation effective
            September 23, 1997. The company incorporated World's Best Rated
            Cigar Company (World) as a wholly-owned subsidiary of NuWay Energy,
            Inc. to distribute quality cigars. It was originally intended that
            the company would market premium cigars at "off price", and will
            acquire quality cigars from six South American producers and market
            them through large retail chains, initially on a consignment basis.
            The cigar operations have been slower than originally anticipated
            and as of June 30, 2001, the company had expended approximately
            $1,190,000 in regard to the cigar operations. Such expenditures have
            been included in the accompanying consolidated financial statements
            as follows:

                  Cash                                               $    7,000
                  Accounts Receivable                                    60,000
                  Prepaid and Other Current Assets                       10,000
                  Inventory                                             538,000
                  Fixed Assets, Net of Accumulated Depreciation          70,000
                  Other Assets                                            3,000
                  Aggregate Accumulated Deficit                         502,000
                                                                     ----------

                       Total Investment                              $1,190,000
                                                                     ==========

            In year 2001 the company incorporated NuWay Resource, Inc., a Nevada
            Corporation and NuWay Resources of Canada, Ltd., a Canadian Company.
            These corporations are presently inactive and were formed to pursue
            opportunities in the oil and gas exploration industry (See Note 11).

            All material intercompany transactions, balance and profits have
            been eliminated.


                        Read accountants' review report.

                                      - 6 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   AS OF JUNE 30, 2001, AND DECEMBER 31, 2000


Note 1.  Summary of Significant Accounting Policies (Continued)
         ------------------------------------------

         C  Property and Equipment
            ----------------------

            Property and Equipment are stated at cost. Depreciation is provided
            on accelerated and straight-line methods over the estimated useful
            lives of the respective assets. Maintenance and repairs are charged
            to expense as incurred; major renewals and betterments are
            capitalized. When items of property or equipment are sold or
            retired, the related cost and accumulated depreciation are removed
            from the accounts and any gain or loss is included in the results of
            operations. Whenever there is a change in events or circumstances,
            the Company performances an impairment analysis by comparing the
            future undiscounted cash flows and if they are less than the
            carrying amount, and impairment charge is recorded to reduce the
            assets to its estimated fair value.

         D  Revenue Recognition
            -------------------

            Revenue is recognized monthly on the rental of slot machines as the
            slot machines are placed in service. Typical rental arrangements for
            slot machines are for one year or less in duration with consistent
            rent income earned over the life of the lease. As a general rule the
            company does not incur any significant direct costs with the
            inception of a lease. All leasing expense, payroll and maintenance
            of equipment are charged to operations as incurred. Revenue on the
            sale of cigars are recorded when customer orders are shipped. The
            cost of cigar sales represents the direct cost of the product sold.

         E  Statement of Cash Flows
            -----------------------

            For purposes of this statement, the company considers all liquid
            investments purchased with an original maturity of three months or
            less to be cash equivalents.

         F  Income (Loss) Per Common Share
            ------------------------------

            Basic earnings per common share and common share equivalent were
            computed by dividing net (loss) by the weighted average number of
            shares of common stock outstanding during the period. Fully diluted
            earnings per share was calculated based on the assumption that the
            increase in the number of common shares assumed outstanding on
            conversion are reduced by the number of common shares that are
            assumed to be purchased with the proceeds from the exercise of the
            incentive stock options. During 2001 and 2000 all warrants, stock
            options and underwriters options (Notes 4, 5, 6, 7) were
            anti-dilutive, and excluded from the computation of basic and
            diluted earnings (loss) per share. In the future, these warrants,
            stock options, and underwriter options could be dilutive and as such
            future earnings per share could be diluted by 7,607,496 additional
            shares.

         G  Significant Concentration of Credit Risk
            ----------------------------------------

            The company has concentrated its credit risk for cash by maintaining
            deposits in banks located within the same geographic region. The
            maximum loss that would have resulted from risk totaled $4,052,000
            and $4,320,000 as of June 30, 2001 and December 31, 2000 for the
            excess of the deposit liabilities reported by the bank over the
            amounts that would have been covered by federal deposit insurance.


                        Read accountants' review report.

                                      - 7 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                    NOTES TO CONSOLIDATED FINANCIAL STATEMENT
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 1.  Summary of Significant Accounting Policies (Continued)
         ------------------------------------------

         H  Use of Estimates
            ----------------

            The preparation of financial statements in conformity with generally
            accepted accounting principles requires management to make estimates
            and assumptions that affect the reported amounts of assets and
            liabilities, the disclosure of contingent assets and liabilities at
            the date of the financial statements, and revenues and expenses
            during the period reported. Actual results could differ from those
            estimates. Estimates are used when accounting for uncollectable
            accounts receivable, obsolescence, equipment depreciation and
            amortization, taxes, among others.

         I  Foreign Currency Translation
            ----------------------------

            For most international operations, assets and liabilities are
            translated into U.S. dollars at year-end exchange rates, and
            revenues and expenses are translated at average exchange rates
            prevailing during the year. Translation adjustments, resulting from
            fluctuations in exchange rates are recorded as a separate component
            of shareholders' equity, as other comprehensive income (loss).

         J  Inventories
            -----------

            Inventory of cigars and related material are stated at the lower of
            average cost or market.

         K  Valuation of Company's Stock Options and Warrants
            -------------------------------------------------

            As permitted under the Statement of Financial Accounting Standards
            No. 123 (SFAS No.123), Accounting for Stock-Based Compensation, the
            Company accounts for it stock-based compensation to employees in
            accordance with the provisions of Accounting Principles Board (APB)
            Opinion No. 25, Accounting for Stock Issued to Employees. As such,
            compensation expense is recorded on the date of grant only if the
            current market price of the underlying stock exceeded the exercise
            price. Certain pro forma net income and EPS disclosures for employee
            stock options grants are also included in the notes to the financial
            statements as if the fair value method as defined in SFAS No. 123
            had been applied. Transactions in equity instruments with
            non-employees for goods or services are accounted for by the fair
            value method.

         L  Advertising
            -----------

            The company expenses all advertising costs as incurred. Included in
            the statement of operations is approximately $49,000 and $34,000
            advertising expense charged to operations for the six months ended
            June 30, 2001 and 2000, respectively. Substantially all advertising
            expenses incurred were paid with a barter transaction.

         M  Reclassifications
            -----------------

            Certain amounts reported in prior financial statements have been
            reclassified to conform to current classification.


                        Read accountants' review report.

                                      - 8 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 1.  Summary of Significant Accounting Policies (Continued)
         ------------------------------------------

         N  Restatements
            ------------

            The Company had restated its previously issued financial statements
            for the years ended December 31, 2000 and 1999 for the following
            adjustments:

               1.   Recognition of impairment loss on the sale of Miami Property
                    of $64,000 was recorded in year 2000 instead of year 2001.

               2.   Adjustment of beginning additional paid in Capital and
                    retained earnings deficit for expense recorded with option
                    and warrants issued in 1998, $284,175.

               3.   Adjustment of retained earnings (deficit) and additional
                    paid in capital for the cost of warrants issued,
                    compensation expenses on variable option plan and
                    compensation recorded on repricing of stock options,
                    $2,518,500 in year 2000.

Note 2.  Property and Equipment
         ----------------------

         Property and Equipment are summarized as follows:

                                                       June 30,    December 31,
                                                         2001         2000
                                                      ----------   ----------

             Land & Building (See Note 10)            $   75,000   $  335,363
             Rental Equipment(See Note 10)             3,809,542    4,197,282
             Leasehold Improvements                       19,894       26,027
             Furniture, Fixtures & Office Equipment      182,495      141,914
             Transportation Equipment                      2,830       48,510
                                                      ----------   ----------

                        Total                          4,089,761    4,749,096

            Less:  Accumulated Depreciation              902,633      976,301
                                                      ----------   ----------

             Property and Equipment - Net             $3,187,120   $3,772,795
                                                      ==========   ==========

            The estimated useful lives of property and equipment, is as follows:

              Rental Equipment                                   5-7 years
              Special Used Buildings                              10 years
              Commercial Buildings                                30 years
              Leasehold Improvements                               7 years
              Furniture, Fixtures and Office Equipment           5-7 years
              Transportation Equipment                             5 years

            Included in Rental Equipment is approximately $3,000,000 of parts
            and supplies purchased or obtained from other machines previously
            disassembled for parts.

            Rent expense for the three and six months ended June 30, 2001 were
            $112,000 and $92,000, respectively. Included as rental expense for
            the three and six months ended June 30, 2001 is approximately
            $74,000 of rental expenditures incurred at the corporate offices of
            the Chief Executive officer in California.

            The company had leased the land and building it owned in Miami for
            $1,200 per month, on a month to month basis. The property was sold
            in 2001 (See Note 10).


                        Read accountants' review report.

                                      - 9 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 3.  Warrants and Options
         --------------------

         At June 30, 2001 the company has outstanding 1,725,000 five year
         publicly traded warrants that were issued as part of the company's
         initial public offering to purchase one share of the company's common
         stock at an exercise price of $3.00 by December 11, 2001. In December
         2000 the Board of directors authorized the issuance of an additional
         3,300,000 private five year stock warrants to acquire common stock at
         $1.75 per share (See note 7). The issuance of the private warrants were
         part of the arrangement with the executive officers of the corporation
         who also received restricted stock aggregating 200,000 shares.
         Compensation was recorded on the arrangement equal to the market value
         of the restricted stock, $350,000. The remaining warrants were issued
         for servcie and were valued at $1,800,000 using the Black-Scholes
         option pricing model. This amount has been recorded in the statement of
         operations for year 2000.

Note 4.  Investment Banker Warrants
         --------------------------

         Effective June 5, 1998, the company contracted with an investment
         banker to provide on a non-exclusive basis to the company assistance in
         possible mergers, acquisitions and internal capital structuring. The
         duration of the contract is for five years. In consideration for these
         services, the company granted warrants to purchase an aggregate of
         225,000 shares of common stock at the closing bid price of $1.875 as of
         June 5, 1998, which can be exercised through June 5, 2003. Effective
         February 8, 2000, the Board of Directors reduced the exercise price to
         $1.06, which was the closing price of the stock at that date (See Note
         7). At the date of issuance and subsequent re-pricing date the warrant
         price equaled or exceeded the market value of the corporate stock. At
         the date issuance and subsequent re-pricing date the warrant price
         equaled or exceeded the market value of the corporate stock. The
         incremental value of the re-priced warrants over the current value of
         the warrants calculated with the with the Black-Scholes option pricing
         model was recorded in the restated financial statement of year 2000.


                        Read accountants' review report.

                                     - 10 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 5.  Incentive Stock Option Plan
         ---------------------------

         On June 13, 1994, the Board of Directors adopted the 1994 Stock Option
         Plan in which the aggregate number of shares for which options may be
         granted under the Plan shall not exceed 1,000,000 shares. The term of
         each option shall not exceed ten years from the date of granting (five
         years for options granted to employees owning more than 10% of the
         outstanding shares of the voting stock of the company). The 1991 plan
         became effective on September 30, 1991 and was terminated in March,
         1999. The 1994 plan became effective on June 13, 1994 and will
         terminate in June, 2004, unless terminated earlier by action of the
         Board of Directors. In December, 1995, the company authorized the
         issuance under the 1994 Stock Option Plan of 492,500 options at an
         exercise price of $2.50 per share to various officers and employees. On
         March 6, 1997 the company authorized the issuance of an additional
         415,000 options at an exercise price of $2.50 to various officers and
         employees. In June, 1999, the company increased the shares allocated to
         the plan to 1,500,000. Effective December 31, 1998, the company
         ratified the repricing of the employee stock options to $1.00 per share
         and simultaneously authorized the issuance of 85,000 options at an
         exercise price of $1.00 per share and canceled 10,000 options issued in
         1995 at $2.50 per share. Effective February, 2000 the company issued
         35,000 options at an exercise price of $1.06 and in December, 2000 the
         company issued 80,000 options at a $1.75 exercise price.(See Note 7)

         Incentive Stock Options Outstanding
         -----------------------------------

                                                      Amount     Price Per Share
                                                    ----------   ---------------
         Options Outstanding at January 1, 2000     $  932,500        $1.00
         Additional Options Issued                      35,000        $1.06
         Additional Options Issued                      80,000        $1.75
         Options Lapsed                                (85,000)       $1.00
         Options Exercised                            (725,000)       $1.00
                                                    ----------
         Options Outstanding at December 31, 2000
           and June 30, 2001
                                                    $  237,500
                                                    ==========


                        Read accountants' review report.

                                     - 11 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 5.  Incentive Stock Option Plan (Continued)
         ---------------------------

         All outstanding warrants and non-qualified options are incentive stock
         options were exercisable at March 31, 2001.

         The following table shows the years in which all the company's options
         and warrants (as discussed in Notes 4, 5, and 6) will expire:

                                                                     Weighted
                                        Range                        Average
                                   ---------------     Number of     Exercise
         Year Ending December 31     Low     High       Shares        Price
                                   ------   ------     ---------     -------

         2001                      $ 3.00   $ 3.00     1,725,000     $  3.00
         2002                        1.00     1.00       172,500        1.00
         2003                        1.00     1.00       310,000        1.00
         2004                          --       --            --          --
         Thereafter                  1.06     1.75     3,415,000        1.74
                                                       ---------

         Total                                         5,622,500
                                                       =========

         The weighted average fair value of options granted during fiscal 2000
         was $1.07 per share. All options were granted at an exercise price that
         equaled the market price.

         The Company adopted the provision so SFAS No. 123, Accounting for Stock
         Based Compensation, effective for fiscal year 1997 for all issuances of
         stock options to non-employees of the Company. The Company will
         continue to apply APB Opinion On 25 (Opinion 25), Accounting for Stock
         Issued to Employees for all issuances stock options to its employees.
         In June 1999, the Company adopted the Financial Accounting Standards
         Board Interpretation Number 44, which requires re-priced options be
         re-measured for expenses each quarter based on the quarter end stock
         price. Expenses are also re-measured upon exercise for the options. The
         Company recorded $491,900 and no expenses as a result of the
         aforementioned accounting in 2000 and 2001, respectively.

         Had compensation cost for the Plan been determined based upon the fair
         value at the grant date for options granted consistent with the
         provision of SFAS 123, the Company's net loss and net loss per share
         would have been reduced to the pro forma amounts indicated below:

                                                2001             2000
                                            ------------     ------------

         Net income - as reported           $ (1,346,132)    $ (4,699,323)
         Net income -pro forma              $ (1,346,132)    $ (6,429,924)
         Loss per share - as reported:
                  Basic and Diluted         $       (.32)    $      (1.40)
         Loss per share - pro forma:
                  Basic and Diluted         $       (.32)    $      (1.90)

         The fair value of each option grant under the Plan is estimated on the
         date of grant using the Black-Scholes option-pricing model with the
         following assumptions:

                                                    2000
                                                 ----------
            Risk - free interest                 $    5.80%
            Expected life                           5 years
            Expected volatility                      68.19%
            Expected dividend                           --


                        Read accountants' review report.

                                     - 12 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 6.  Debentures
         ----------

         In December 2000 the company, through a private placement issued
         $3,500,000 principle amount of 6% convertible debentures. These
         debentures were due June 13, 2001 and were extended to December 13,
         2001 and are convertible into common stock at an exercise price of
         $1.75 per share. Included in accounts payable and accrued expenses in
         the accompanying financial statements is approximately $122,000 of
         accrued interest on these disbursements. The interest on these
         debentures are payable either in cash or in additional shares of common
         stock, at the discretion of the company (see Note 7). The company
         incurred approximately $64,500 of costs in regard to this private
         placement. The debt issuance costs are being amortized over the life of
         the debentures. Included as part of selling general & administration
         expenses in the statement of operations for the three and six months
         ended June 30, 2001 is $32,250 and $16,125 amortization of deferred
         debt issuance costs.

Note 7.  SEC Registration Statement
         --------------------------

         In July 2001 the company filed a registration statement with the
         Securities and Exchange Commission to register 7,229,608 shares of
         common shares of the corporation. These shares represent substantially
         all the convertible shares outstanding from options, warrants and
         debentures. In addition, certain shareholders have included in the
         registration legend stock they currently own. The estimated cost
         incurred with the registration statement, $25,000, has been included as
         part of selling, general and administration expenses in the
         accompanying statements.

Note 8.  Provision of Income Taxes
         -------------------------

         As of June 30, 2001 the company had available for income tax purposes
         unused net operating loss carryforwards which may provide future tax
         benefits of $5,136,000 expiring in the year 2016. No valuation
         allowance has been provided for unremitted foreign profits. No
         provision had been provided for deferred taxes in the accompanying
         financial statements. The current provision for taxes, if any, are
         based on tax provisions of foreign operations.

Note 9.  Commitments and Contingencies
         -----------------------------

         A  Litigation
            ----------

            The company is a defendant from time to time on claims and lawsuits
            arising out of the normal course of its business, none of which are
            expected to have a material adverse effect on its business,
            operations, financial position, or corporate liquidity.


                         Read accountants' review report

                                     - 13 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 9.  Commitments and Contingencies (Continued)
         -----------------------------

         B  Employment Agreements
            ---------------------

            In January 1997, the company entered into a five year employment
            agreement with the Chief Executive Officer, Lloyd Lyons, which
            provided for an annual salary commencing January, 1997 of $275,000.
            The agreement provided that in the event of either a merger,
            consolidation, sale or conveyance of substantially all the assets of
            the company which results in his discharge, he would be entitled to
            200% of the balance of payments remaining under the contract. The
            contract provided for the salary continuation for a period of two
            years after the death of Mr. Lyons. In January 2000, Mr. Lyons
            passed away and effective August 2, 2000 the company amended its
            employment contract with his surviving widow and primary beneficiary
            of his Estate where-in the salary continuation clause included in
            his contract was replaced with a severance arrangement which
            requires the company to pay the spouse $100,000 over a one year
            period commencing on the first month following her termination from
            her employment with the company and upon her termination she is to
            receive 100,000 shares of common stock pursuant to an amendment to
            her employment agreement. The amended employment agreement will
            obligate the company to register these shares and reimburse her for
            the difference in the gross proceeds upon the sale of such shares
            and $300,000, regardless of the time she holds such shares. Upon
            termination of the employee contract the company will record
            additional compensation at the greater of the then market price of
            the company stock or the guaranteed price stipulated in the
            contract. The agreement further provides that the spouse remain in
            the employment of the company for at least 4 months following the
            amendment of the contract. The contract revisions further provided
            that Mr. Lyons loan of $115,000 be recorded as additional
            compensation, as required by the officer compensation agreement. The
            employment agreement with the spouse remains intact in all other
            regards and obligates the company to provide an annual compensation
            at the rate of $46,800 per annum in the year 2000 and $51,480 in the
            subsequent year.

            In January 2000 the company entered into two additional employment
            contracts, with the company president and the officer in charge of
            Latin American Operations, both for the duration of two years and
            provides that company be obligated for an aggregate compensation of
            $115,000 in year 2000 and $126,500 in year 2001. Effective August 2,
            2000 both of these employment contracts were amended to reflect upon
            termination from employment these individuals would also be entitled
            to nine months of compensation and will receive in the aggregate
            35,000 shares of common stock which the company has agreed to
            reimburse the respective employees the difference between the gross
            proceeds they receive upon sale and $105,000, regardless of the term
            the employees hold such shares. Upon termination of the employees
            contract the company will record additional compensation at the
            greater of the market price of the company stock or the guaranteed
            price stipulated in the contract.

            The company entered into two additional one-year employment
            agreements with the Chief Operating Officer and the Chief Executive
            Officer, requiring the company issue 100,000 shares of stock and
            750,000 warrants to purchase additional common stock at $1.75 per
            share, individually. Compensation was recorded on the arrangement
            equal to the then market value of the restricted stock, $350,000, in
            year 2000.


                         Read accountants' review report

                                     - 14 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 9.  Commitments and Contingencies (Continued)
         -----------------------------

         C  Foreign Assets
            --------------

            The accompanying consolidated balance sheets includes assets
            relating to the company's slot machine rental operations in Peru and
            Colombia of $3,246,000 and $979,000 respectively. Although these
            countries are considered politically and economically stable, it is
            possible that unanticipated events in foreign countries could
            disrupt the company's operations. In that regard, the company was
            informed that in Peru an excise tax has been instituted effective
            October 1, 1996, on the leases of gaming equipment. The company with
            others in the industry negotiated with the appropriate governmental
            agencies and have had the excise tax significantly curtailed. In
            addition, a significant portion of the company's inventory in cigars
            is being stored in South America awaiting instructions to deliver
            them to the Miami location. Revenue from rental operations is
            entirely earned in Colombia and Peru.

         D  Lease Commitment
            ----------------

            The company is obligated for a three year lease for its Miami office
            premises, which expires in September, 2001 and requires monthly rent
            of $2,500. In addition, the company is obligated for a two year
            lease for its warehouse space, at a monthly rent of $1,400. The
            company is also obligated for an office lease at its California
            facility. This lease requires monthly rentals of $7,670 through
            March, 2002. All other leases are of short duration or are on a
            month to month arrangement. Future minimum payments required as of
            June 30, 2001 on all non-cancelable leases in effect that are one
            year in duration or longer, are as follows:

                                            Miami                     California
                              Total        Faculty      Warehouse       Office
                            ---------     ---------     ---------     ---------
               Year 2001    $  61,920     $   7,500     $   8,400     $  46,020
               Year 2002       39,810            --        16,800        23,010
                            ---------     ---------     ---------     ---------
               Total        $ 101,730     $   7,500     $  25,200     $  69,030
                            =========     =========     =========     =========

Note 10. Asset Impairment Charges
         ------------------------

         In March 2001, the company sold its Miami property for an aggregate
         consideration of $139,000 and recorded an additional loss on
         disposition of $64,000. The $64,000 loss had been recorded as an
         impairment charges in the restated fiscal year 2000 financial
         statement. In addition, the company recorded a reduction in value for
         certain slot machine parts of $194,000 and recorded gaming equipment
         impairment costs of $100,000. The impairment costs associated with
         gaming equipment parts was the result of non usable parts previously
         recorded as part of slot machine fixed asset costs on the accompanying
         balance sheet. The impairment costs on the gaming equipment of $100,000
         was the result of management's on-going valuation as to the utility of
         gaming equipment in conjunction with decreased volume of operations.

         In February, 2001 the company announced that it had entered into a non
         binding letter of intent to merge with Digital Convergence Corporation,
         a privately held California company. The merger agreement had been
         rescinded in May, 2001 and the company recorded $52,000 as part of
         asset impairment costs.


                         Read accountants' review report

                                     - 15 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 11. Subsequent Event
         ----------------

         In August 2001 Latin American Casinos, Inc., changed it's name to NuWay
         Energy, Inc. The stock symbol will be changed to NWAY and will commence
         trading with the new symbol on August 15, 2001. The name change
         reflects a new direction that the company will be exploring. The
         company anticipates it will enter the oil and gas industries in Canada
         via the formation of subsidiaries in Alberta Canada and Nevada U.S. and
         other potential acquisitions in the energy field without disturbing its
         current business operations.

         In August 2001 the company entered into a consulting arrangement for
         financial advisory services. As part of the consideration for the
         agreement the company advanced $90,000. The consulting arrangement has
         subsequently been rescinded.


Note 12. Operating Segments Six Months Ended June 30, 2001
         -------------------------------------------------
<TABLE>
<CAPTION>

                                                 Cigars         Gaming
                                   Total       Operations      Equipment     Unallocated
                                -----------    -----------    -----------    -----------
<S>                             <C>            <C>            <C>            <C>
         Revenues               $   337,493    $    71,775    $   265,718    $         0
                                -----------    -----------    -----------    -----------

         Costs & Expenses

         Cost of Product Sold        43,316         43,316              0              0
         Direct Overhead Cost       557,374         81,085        496,289
         Allocated Overhead
           Costs                    766,772        163,070        603,702              0
         Depreciation                50,869          5,202         42,167          3,500
         Assets Impairment
           Costs                    347,071              0        347,071             --
                                -----------    -----------    -----------    -----------
         Total Costs
           and Expenses           1,785,402        292,673      1,489,229          3,500
                                -----------    -----------    -----------    -----------

         Operating Income
          (Loss)                ($1,447,909)   ($  220,898)   ($1,223,511)   ($    3,500)
                                ===========    ===========    ===========    ===========

             Total Assets       $ 9,267,000    $   687,000    $ 4,467,000    $ 4,114,000
                                ===========    ===========    ===========    ===========
</TABLE>


                         Read accountants' review report

                                     - 16 -
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    AS OF JUNE 30, 2001 AND DECEMBER 31, 2000


Note 12. Operating Segments Six Months Ended June 30, 2000 (Continued)
         -------------------------------------------------

<TABLE>
<CAPTION>

                                                 Cigars         Gaming
                                   Total       Operations      Equipment     Unallocated
                                -----------    -----------    -----------    -----------
<S>                             <C>            <C>            <C>            <C>
         Revenues               $   479,718    $    75,232    $   404,486    $        --
                                -----------    -----------    -----------    -----------

         Cost & Expenses

         Cost of Product Sold        64,451         64,451             --             --
         Direct Overhead Cost       624,354         60,403        563,951
         Allocated Overhead
           Cost                     438,130         68,709        369,421             --
         Depreciation                61,854          5,682         52,172          4,000
         Assets Impairment
           Cost                          --             --             --             --
                                -----------    -----------    -----------    -----------
         Total Costs
           And Expenses         $ 1,188,789    $   199,245    $   985,544    $     4,000)
                                ===========    ===========    ===========    ===========

         Operating Income
           (Loss)               $  (709,071)   $  (124,013)   $  (581,058)   $    (4,000)
                                ===========    ===========    ===========    ===========

         Total Assets           $ 7,245,000    $   758,000    $ 5,476,000    $ 1,011,000
                                ===========    ===========    ===========    ===========
</TABLE>

         The company allocates indirect overhead expenses to specific segments
         in proportion to the revenues earned by the segment. All revenue from
         gaming equipment and the related assets are in South America where as
         all revenue and a majority of the assets of the cigar operations are in
         the United States.


                        Read accountants' review report.

                                     - 17 -

<PAGE>


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATION

General
-------

         In August 2001 Latin American Casinos, Inc., changed its name to NuWay
Energy, Inc. The name change reflects a new direction that the company will be
exploring. The Company anticipates it will enter the oil and gas industries in
Canada via the formation of subsidiaries in Alberta Canada and Nevada U.S. and
other potential acquisitions in the energy field without disturbing its current
business operations.

         Since January 1995, the Company has been engaged in the renting of slot
machines and other gaming equipment to licensed gaming establishments in various
cities through its wholly owned subsidiaries in South and Central America. In
1994, the Company formed its Peruvian subsidiary in late 1995 the Company formed
its Colombian subsidiary.

         As of June 30, 2001, the Company had approximately 900 machines under
rental contracts in Peru and Colombia.

         The Company currently concentrates its efforts on the rental of used
slot machines. These machines were purchased at a fraction of the cost of new
machines and are refurbished for use in South and Central America. Whereas a new
slot machine would cost approximately $10,000 plus additional charges for duty,
the used slot machines cost approximately $700 each including freight, duty, and
refurbishing expenditures.

         In September 1997, the Company incorporated World's Best Rated Cigar
Company, as a wholly owned subsidiary, to distribute premium cigars. It was
originally intended that the company would acquire quality cigars from six
manufacturers and market them at "off price" through large retail chains. In
February 2000, the marketing strategy was modified to include selling directly
to consumers through our web site, www.worldsbestrated.com, and our toll free
number. Substantially all advertising expense incurred is paid with barter
transactions.

         In 2001 the Company formed two subsidiaries, NuWay Resources, Inc., a
Nevada Corporation and NuWay Resources of Canada, Ltd., a Canadian company.
These corporations are presently inactive and were formed to pursue
opportunities in the oil and gas exploration industry.


         In March 2001, the company sold its Miami property for an aggregate
consideration of $139,000 and recorded an additional loss on disposition of
$64,000. The $64,000 loss had been recorded as an impairment charges in the
restated fiscal year 2000 financial statement. In addition, the company recorded
a reduction in value for certain slot machine parts of $194,000 and recorded
gaming equipment impairment costs of $100,000. The impairment costs associated
with gaming equipment parts was the result of non usable parts previously
recorded as part of slot machine fixed asset costs on the accompanying balance
sheet. The impairment costs on the gaming equipment of $100,000 was the result
of management's on-going valuation as to the utility of gaming equipment in
conjunction with decreased volume of operations.

         In February, 2001 the company announced that it had entered into a non
binding letter of intent to merge with Digital Convergence Corporation, a
privately held California company. The merger agreement had been rescinded in
May, 2001 and the company recorded $52,000 as part of asset impairment costs.



Results of Operations
---------------------

         Revenues from the rental of slot machines in Peru and Colombia for the
three months ended June 30, 2001 decreased by $47,000 or 29%, to $117,400 from
$164,300 for the same period in 2000. The Company's revenues from cigar sales
were $37,900 in the second quarter of 2001 as compared to sales of $51,000 for
the same period in 2000.

         Revenues from the rental of slot machines in Peru and Colombia for the
six months ended June 30, 2001 decreased by $138,800 or 34%, to $265,700 from
$404,500 for the comparable period in 2000. The Company's revenues from cigar
sales were $71,800 for the six months ended June 30, 2001 as compared to sales
of $75,200 for the same period in 2000.

         The decrease in revenues was the overall weakness of the economy in
South America. Additionally, the decrease was due in part to continued concerns
over government-mandated obsolescence, political changes, increased competition
as well as the devaluation of foreign currency.

                                     - 18 -
<PAGE>

         Selling, general, and administrative expenses incurred in the quarter
ended June 30, 2001 increased $280,400 or 54%, to $825,000 from $534,600 for the
same period in 2000. Selling, general, and administrative expenses incurred for
the six months ended June 30, 2001 increased $281,700 or 26%, to $1,384,000 from
$1,062,500 for the same period in 2000.

         These increases are due in part to the increased cost of servicing the
older machines, as well as fees and costs associated with exploring new ventures
and acquisitions and costs associated with pending registration statement and
the amortization of deferred debt issuance costs.

         Net (loss) for the three months ended June 30, 2001 was ($833,400) or
($0.20) per share compared to ($377,700) loss or ($0.11) per share for the same
period in 2000. Net (loss) for the six months ended June 30, 2001 was
(1,410,100) or ($0.32) per share compared to ($683,300) or $0.21 per share for
the same period in 2000.

         The increase in net loss was attributable to the significant decline in
revenues from slot machine operations and an increase in overhead expenditures,
costs associated with exploring new ventures and acquisitions, as well as
certain non-recurring expenses for the rescinded merger and asset impairment
costs.

         Through June 30, 2001 the Company expended approximately $1,190,000 on
the establishment of a premium cigar business; minor additional expenditures for
marketing and personnel are expected throughout the year 2001. No additional
costs associated with acquisitions of new cigars and related inventory occurred
in year 2001. In 2001 an insignificant amount was spent to acquire additional
inventory.


Liquidity and Capital Resources
-------------------------------

         Cash and cash equivalents decreased approximately $366,700 or 8%, to
$4,056,000 at June 30, 2001 from $4,422,700 at December 31, 2000. The decrease
is attributable primarily to the poor results of operations and the increase in
overhead expenditures.

         The Company anticipates that its cash position and interest earned on
cash equivalents will be sufficient to meet its cash needs for the next twelve
months. The Company does not have any commitments for material capital
expenditures.


Item 6.  Exhibits and Reports on Form 8-K

         (a) Exhibits: 99.1 Amendment to 6% Convertible Debenture

                                     - 19 -
<PAGE>

Forward Looking Statements
--------------------------

         From time to time, the Company may publish forward looking statements
relating to such matters as anticipated financial performance, business
prospects, new products and certain other matters. The words "may", "will",
"expect", "anticipate", "continue", "estimate", "project", "intend" and similar
expressions are intended to identify such forward looking statements. The
Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. In order to comply with the terms of the safeharbor,
the Company notes that a variety of factors could cause its actual results and
experience to differ materially from anticipated results and other expectations
that may effect the operations, performance, development and results of the
Company's business, including the following:

         1.   Changes in government regulations of gaming, tobacco, and oil and
              gas exploration could have an effect on the Company's operations
              and business.

         2.   Political factors affecting Canada, and South and Central America,
              particularly as they pertain to currency valuation, could affect
              the Company's business in ways, which are difficult to predict.

         3.   The Company's proposed venture into oil and gas exploration is
              subject to all the risks and uncertainties associated with the
              commencement of a new enterprise. There can be no assurances that
              the Company will be able to successfully penetrate the market, or
              that this operation will become profitable.

         4.   The Company may be required to raise additional funds to expand
              its business operations, particularly the Company's proposed
              venture into oil and gas exploration, if it proves successful.
              There can be no assurances that the Company will be able to raise
              such funds, either through the sale of equity or debt securities
              or through commercial sources. The inability to acquire needed
              capital could have a material adverse effect on the Company's
              ability to expand.

         Pursuant to the requirements of the Securities and Exchange Act of
1934, as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                               NuWay Energy, Inc.


              Date:  March 25, 2002            /s/ TODD SANDERS
                   ------------------          -------------------------------
                                               Todd Sanders
                                               President


              Date:  March 25, 2002            /s/ JOE TAWIL
                   ------------------          -------------------------------
                                               Joe Tawil
                                               Acting Chief Financial and
                                               Accounting Officer


                                     - 20 -
<PAGE>

EXHIBIT 99.1


                    AMENDMENT TO LATIN AMERICAN CASINOS, INC.
                   6% Convertible Debenture due June 13, 2001


         Latin American Casinos, Inc. and the undersigned holder (the "Holder")
of that principal amount of Latin American Casinos, Inc. 6% Convertible
Debentures due June 13, 2001 (the "Debentures") set forth below hereby agree, as
of the date below, as follows:

         1.       Within thirty (30) days of the date below, Latin American
                  Casinos, Inc. agrees to file a registration statement with the
                  Securities and Exchange Commission including the shares of
                  Latin American Casinos, Inc. common stock underlying that
                  principal amount of Debentures owned by the Holder as set
                  forth below.

         2.       The Maturity Date as defined in the Debentures is hereby
                  amended to be December 13, 2001.

         3.       The Holder has good and marketable title to the principal
                  amount of Debentures set forth below free and clear of any
                  security interests, pledges, mortgages or other encumbrances
                  of any kind, and the Holder is authorized to enter into this
                  amendment.


Holder:
------


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


Debenture No.:
Principal Amount of Debenture: $


Latin American Casinos, Inc.


By:                                   Dated:
    --------------------------------        ----------------
    Jeffrey Felder, President