`Nevada                                                                         75-2912201
--------------------------------------------------------                        -------------------------------------
(State or other jurisdiction of                                                         (IRS Employer
 incorporation or organization)                                                          Identification No.)`

As of June 30, 2002 the Company had 2,000,000 shares of Common Stock issued and
outstanding.

`June 30,         March 31,
                                                                                       2002               2002
                                                                                ----------------       -------
                                                                                    (Unaudited)
CURRENT ASSETS
   Cash                                                                               $  26,191          $   2,630
   Accounts Receivable                                                                      100                100
   Inventories, at lower of cost
     (principally specific identification) or market                                     26,354             26,354
                                                                                      ---------          ---------

              TOTAL CURRENT ASSETS                                                    $  52,645          $  29,084
                                                                                      =========          =========


                                  LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY

CURRENT LIABILITIES
   Accrued Liabilities                                                                $   3,178          $   4,258
   Stockholder Payable                                                                    2,252             25,153
                                                                                      ---------          ---------

              TOTAL CURRENT LIABILITIES                                                   5,430             29,411
                                                                                      ---------          ---------

STOCKHOLDERS' (DEFICIT) EQUITY
   Common Stock $0.001 Par Value; Authorized 20,000,000 Shares;
     Issued and Outstanding 1,010,000 and 2,000,000
     Shares, Respectively                                                                 2,000              1,010
   Paid-In-Capital                                                                       67,850             17,690
   Deficit Accumulated during the Development Stage                                     (22,635)           (19,027)
                                                                                      ---------          ---------

              TOTAL STOCKHOLDERS' (DEFICIT) EQUITY                                       47,215               (327)
                                                                                      ---------          ---------

              TOTAL LIABILITIES AND STOCKHOLDERS'
                  (DEFICIT) EQUITY                                                    $  52,645          $  29,084
                                                                                      =========          =========`

`For the Three Months Ended
                                                                                              June 30,
                                                                                  --------------------
                                                                                       2002                    2001
                                                                                  ------------              -------
REVENUES
   Antiques and Furnishings                                                        $         -              $    14,929

COST OF REVENUES                                                                             -                   12,166
                                                                                   -----------              -----------

              GROSS PROFIT                                                                   -                    2,763
                                                                                   -----------              -----------

GENERAL AND ADMINISTRATIVE EXPENSES                                                      3,524                    5,523
                                                                                   -----------              -----------

              (LOSS) BEFORE OTHER EXPENSE AND
                  INCOME TAX                                                            (3,524)                  (2,760)
                                                                                   -----------              -----------

OTHER EXPENSE
   Interest Expense                                                                         84                      380
                                                                                   -----------              -----------

              (LOSS) BEFORE INCOME TAX                                                  (3,608)                  (3,140)

INCOME TAX                                                                                   -                        -
                                                                                   -----------              -----------

              NET LOSS                                                             $    (3,608)             $    (3,140)
                                                                                   ===========              ===========

WEIGHTED AVERAGE NUMBER OF COMMON SHARES                                             1,531,250                1,000,000
                                                                                   ===========              ===========

(LOSS) PER COMMON SHARE                                                            $      (.00)             $      (.00)
                                                                                   ===========              ===========`

`For the Three Months Ended
                                                                                               June 30,
                                                                                  ---------------------
                                                                                      2002                   2001
                                                                                  -----------             -------

CASH FLOW FROM OPERATING ACTIVITIES
   Net (Loss)                                                                     $   (3,608)             $   (3,140)
   Adjustments to Reconcile Net Loss to Net Cash
     From Operating Activities
       Contribution of Services and Rent                                               1,650                   1,650
     Changes in Current Assets and Liabilities
       Accounts Receivable                                                                 -                   1,014
       Inventory                                                                           -                  (3,743)
       Accrued Liabilities                                                            (1,080)                  1,408
                                                                                  ----------              ----------

              NET CASH FLOW USED BY
                OPERATING ACTIVITIES                                                  (3,038)                 (2,811)
                                                                                  ----------              ----------

CASH FLOW FROM FINANCING ACTIVITIES
   Change in Stockholder Payable                                                     (22,901)                  6,346
   Proceeds from Sale of Common Stock                                                 49,500                       -
                                                                                  ----------              ----------

              NET CASH FLOW PROVIDED BY
                FINANCING ACTIVITES                                                   26,599                   6,346
                                                                                  ----------              ----------

NET INCREASE IN CASH                                                                  23,561                   3,535

CASH AT BEGINNING OF PERIOD                                                            2,630                   3,465
                                                                                  ----------              ----------

CASH AT END OF PERIOD                                                             $   26,191              $   7,000
                                                                                  ==========              =========

SUPPLEMENTAL SCHEDULE OF CASH FLOW  INFORMATION
   Cash Flow Information
     Cash Paid During the Period For:
       Interest                                                                   $    1,602              $         -
                                                                                  ==========              ===========
       Income Taxes                                                               $        -              $         -
                                                                                  ==========              ===========`

NOTE 1: BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance with generally
accepted accounting principals for interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulations S-X. They do not include all information and notes required
by generally accepted accounting principals for complete financial statements.
However, except as disclosed, there has been no material change in the
information disclosed in the notes to financial statements included in the
Annual Report on Form 10-K of Karrison Compagnie, Inc. for the year ended March
31, 2002. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the three-month period ended June 30, 2002, are
not necessarily indicative of the results that may be expected for the year
ending March 31, 2003.

NOTE 2: PUBLIC OFFERING

On May 10, 2002, the
Company completed its public offering and sold 1,000,000 shares of its common
stock. Net proceeds to the Company were $49,500.

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

Revenue: During the three months ended June 30, 2002, we generated $0 in revenue from
sales as compared to $14,929 for the three months ended June 30, 2001. The
$14,919 decrease was due to the fact that we conducted no auctions or other
sales during the three month period ending June 30, 2002.

Expenses:
During the three months ending June 30, 2002, we incurred $3,524 in expenses
compared to $17,689 for the three months ending June 30, 2001. The $14,165
decrease was primarily due to the fact that we conducted no auctions and had no
expenses associated therewith.

Net Loss: During the three months ending June 30, 2002, we generated $3,608 in
losses as compared to $3,140 for the three months ending June 30, 2001. The $468
increase in losses was primarily due to the fact that we conducted no auctions
or other sales during the three month period ending June 30, 2002 and,
therefore, did not generate any revenues during this period.

Liquidity and Capital Resources:
 Over the next twelve months we expect our primary
expenses to be acquisition of properties for sale, advertising costs associated
with conducting our sales, paying for the development and maintenance of our web
page and perhaps paying a salary to Ms. Nichols. Our business plan is such that
if we are successful in generating net profits from our activities, we will
acquire more properties, perhaps conduct more sales, hire additional staff and
attempt to grow our company in an orderly way. On May 10, 2002, we successfully
completed our initial public offering raising $50,000 from fifty five (55)
shareholders. These funds will be used to pay down the loan from Karrison
Nichols and to fund our working capital needs.

We
have signed a note with Ms. Nichols where she may loan up to $50,000 to our
company, although Ms. Nichols can choose whether or not she wants to make
additional advances under this note. Other than this potential right to borrow
from Ms. Nichols, we have no other external sources of financing available.
However, the nature of our business is that with only a small amount of money,
we can continue in business and even potentially grow. This is because, due to
the previous loan from our shareholder, we have some inventory that we can sell.
If we are able to sell this inventory at a profit, we will generate more money
that can be invested in inventory, potentially exponentially increasing our
asset base. Although financing derived from the sale of our shares can
accelerate our growth, because we have only minimal expenses, we can survive
with little or no additional financing.

ITEM 1.  LEGAL PROCEEDINGS.

Not applicable.

ITEM 2.  CHANGES IN SECURITIES

Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.

ITEM 5.  OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(A)      Exhibits

See attached.

(B)      Reports on Form 8-K

The Company did not file any reports on Form 8-K during the quarter ended June 30,
2002.

SIGNATURES

In
accordance with Section 13 or 15(a) of the Exchange Act, the Registrant has
caused this Report to be signed on its behalf by the undersigned, thereunto duly
authorized on the 9th day of October, 2002.

KARRISON COMPAGNIE, INC.

/s/ Karrison Nichols

We
hereby consent to the use in the Quarterly Report on Form 10-QSB of our report
relating to the financial statements of Karrison Compagnie, Inc., which appear
in such Quarterly Report.

/s/    KILLMAN, MURRELL & COMPANY,