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

As of December 31, 2001 the Company had 1,000,000 shares of Common Stock issued and
outstanding.

`March 31,        December 31,
                                                                                           2001               2001
                                                                                ---------  -----   ---------  ----
                                                                                                       (Unaudited)

CURRENT ASSETS
   Cash                                                                               $   3,465          $   1,182
   Accounts Receivable                                                                    1,883              3,265
   Inventories, at lower of cost
     (principally specific identification) or market                                     22,550             26,956
                                                                                      ---------          ---------

              TOTAL CURRENT ASSETS                                                    $  27,898          $  31,403
                                                                                      =========          =========


                                       LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accrued Liabilities                                                                $       -          $   3,727
   Stockholder Payable                                                                   18,157             24,703
                                                                                      ---------          ---------

              TOTAL CURRENT LIABILITIES                                                  18,157             28,430
                                                                                      ---------          ---------

STOCKHOLDERS' EQUITY
   Common Stock $0.001 par value; Authorized 20,000,000 shares;
     Issued and Outstanding 1,000,000 shares                                              1,000              1,000
   Paid-In-Capital                                                                       10,600             15,550
   Deficit Accumulated during the Development Stage                                      (1,859)           (13,577)
                                                                                      ---------             ------

              TOTAL STOCKHOLDERS' EQUITY                                                  9,741              2,973
                                                                                      ---------          ---------

              TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                              $  27,898          $  31,403
                                                                                      =========          =========`

`December 12, 2000                    December 12,
                                                      Three Months Ended   (Inception) To      Nine Months         2000
                                                                                                  Ended       (Inception) To
                                                         December 31,       December 31,      December 31,     December 31,
                                                             2001               2000              2001            2000
                                                         --------------     --------------    --------------  --------
                                                          (Unaudited)        (Unaudited)       (Unaudited)      (Unaudited)
REVENUES
   Antiques and Furnishings                                $       -          $         -       $     17,949     $        -

COST OF REVENUES                                              2,377                     -             17,166              -
                                                           --------           -----------       ------------     ----------

              GROSS PROFIT (LOSS)                            (2,377)                    -                783              -
                                                           --------           -----------       ------------     ----------

GENERAL AND ADMINISTRATIVE EXPENSES
                                                             (1,693)                    -             11,428              -
                                                           --------           -----------       ------------     ----------

              (LOSS) BEFORE OTHER
                  EXPENSE AND INCOME
                  TAX                                        (4,070)                    -            (10,645)             -
                                                           --------           -----------       ------------     ----------

OTHER EXPENSE
   Interest Expense                                             380                     -              1,073              -
                                                           --------           -----------       ------------     ----------

              (LOSS) BEFORE INCOME TAX                       (4,450)                    -            (11,718)             -

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

              NET LOSS                                     $ (4,450)          $         -       $    (11,718)    $        -
                                                           ========           ===========       ============     ==========

WEIGHTED AVERAGE NUMBER OF          COMMON SHARES
                                                            955,800                     -            955,800              -
                                                           ========           ===========       ============     ==========

(LOSS) PER COMMON SHARE                                    $    (.00)         $     (.00)       $       (.01)    $     (.00)
                                                           =========          ==========        ============     ==========`

`December 12,
                                                                                 Nine Months              2000
                                                                                    Ended            (Inception) To
                                                                                 December 31,         December 31,
                                                                                    2001                  2000
                                                                              -----------------       --------
                                                                                 (Unaudited)           (Unaudited)

CASH FLOW FROM OPERATING ACTIVITIES
   Net (Loss)                                                                    $(11,717)               $        -
     Changes in Current Assets and Liabilities                                                                    -
       Accounts Receivable                                                           (1,382)                      -
       Inventory                                                                     (4,407)                      -
       Accrued Liabilities                                                            3,727                       -
                                                                                 ----------              ----------

              NET CASH FLOW USED BY
                OPERATING ACTIVITIES                                                (13,779)                      -
                                                                                 ----------              ----------

CASH FLOW FROM FINANCING ACTIVITIES
   Increase in Stockholder Payable                                                    6,546                       -
   Proceeds from Sale of Common Stock                                                     -                       -
   Contribution of Services and Rent                                                  4,950                       -
                                                                                 ----------              ----------

              NET CASH FLOW PROVIDED BY
                FINANCING ACTIVITES                                                  11,496                       -
                                                                                 ----------              ----------

NET DECREASE IN CASH                                                                 (2,283)                      -

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

CASH AT END OF PERIOD                                                            $    1,182              $        -
                                                                                 ==========              ==========`

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, 2001. 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
nine-month period ended December 31, 2001, are not necessarily indicative of the
results that may be expected for the year ending March 31, 2002.

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 December 31, 2001, we generated $0 in
revenue from sales as compared to $0 for the nineteen days ending December 31, 2000.  There
were no revenues from sales due to the fact that we conducted no auctions or other sales during
either period.

Expenses: During the three months ending December 31, 2001, we incurred $4,450 in
expenses compared to $0 for the nineteen days ending December 31, 2000.  The $4,450 increase
was primarily due to the fact that we conducted no auctions and had no expenses associated
therewith and there were only nineteen days of operation during the December 31, 2000 period.

Net Loss:   During the three months ending December 31, 2001, we generated $4,450 in
losses as compared to $0 for the nineteen days ending December 31, 2001.  The $4,450 increase
in losses was primarily due to the fact that we conducted no auctions or other sales during the
three month period ending December 31, 2001 and, there were only nineteen days of operation
in the December 31, 2000 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
                  December 31, 2001.

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 12th
day of September, 2002.

KARRISON COMPAGNIE, INC.

/s/ Karrison Nichols
                                                               Karrison Nichols, President,
                                                              Chief Executive Officer and
Principal Financial Officer

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.

Dallas, Texas
September 12, 2002

/s/    KILLMAN, MURRELL & COMPANY,

KILLMAN, MURRELL & COMPANY, P.C.   
CERTIFIED PUBLIC ACCOUNTANTS