FORM 10-KSB.-- ANNUAL REPORT UNDER SECTION 13
                 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
                     (Last amended by 34-32231, eff. 6-3-93)

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

[X]      Annual Report Under Section 13 or 15(d) of the Securities  Exchange Act
         of 1934

         For the fiscal year ended   December 31, 2000
                                     -----------------
                                       or

[ ]      Transition Report Under Section 13 or 15(d) of the Securities  Exchange
         Act of 1934

For the transition period from                      to
                              --------------------      ------------------------

Commission file number        2-54020
                              -------

                      American Geological Enterprises, Inc.
                      -------------------------------------
             (Exact name of registrant as specified in its charter)

             Utah                                                87-0273300
             ----                                                ----------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                 1730 South 1100 East, Salt Lake City, UT 84105
                 ----------------------------------------------
                    (Address of principal executive officers)

Registrant's telephone number, including area code          (801) 983-7002
                                                            --------------

Securities registered pursuant to Section 12(b) of the Act:

Securities registered under Section 12(g) of the Exchange Act:

                          Common Stock, $.01 Par Value
                          ----------------------------
                                (Title of class)

Check  whether  the  registrant  (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.

                                                          [X]   Yes     [   ] No

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation  S-B is met  contained  in  this  form,  and no  disclosures  will be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB.

                                                                             [X]

State issuer's revenues for its most recent fiscal year.                $172,030

The  market  in which  the  common  stock of the  Registrant  is  traded  is the
"over-the-counter"  market.  During the last year  trading  was limited and done
primarily on a negotiated basis.

<PAGE>

<TABLE>
<CAPTION>

                                Table of Contents


   Heading                                                                         Page
-------------                                                                   -----------
                                     Part I
<S>          <C>                                                                   <C>
Item 1       Description of Business                                                 I-1
Item 2       Description of Property                                                 I-1
Item 3       Legal Proceedings                                                       I-2
Item 4       Submission of Matters to a Vote of Securities Holders                   I-2


                                     Part II
Item 5       Market for Common Equity and Related Stockholder Matters               II-1
Item 6       Management's Discussion and Analysis                                   II-1
Item 7       Consolidated Financial Statements                                      II-2
Item 8       Changes in and Disagreements with Accountants on Accounting
              and Financial Disclosure
                                                                                    II-2


                                    Part III
Item 9       Directors, Executive Officers, Promoters, and Control Persons;
              Compliance with Section 16(a) of the Exchange Act                    III-1
Item 10      Executive Compensation                                                III-2
Item 11      Security Ownership of Certain Beneficial Owners and Management        III-2
Item 12      Certain Relationships and Related Transactions                        III-3
Item 13      Exhibits and Reports on Form 8-K                                      III-3
</TABLE>


<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Form 10-KSB Annual Report

                          Year ended December 31, 2000


                                     Part I

Item 1.  Description of Business

         General:  American  Geological  Enterprises,  Inc.  (AGE) is engaged in
         activities  designed to identify and acquire geothermal and oil and gas
         leases.

         Activities  undertaken  to  identify  such  leases  have  consisted  of
         searches  of   pertinent   geological   literature,   maps  and  aerial
         photographs,  construction  of maps,  and  confirmatory  fieldwork.  In
         connection with leasehold acquisitions,  AGE's activities have included
         examination  of  title   documents,   location  and  negotiation   with
         landowners, and preparation of leases.

         These activities are performed by unsalaried  officers and directors of
         AGE. AGE proposes to continue  these  activities  and to intensify  its
         promotional efforts with respect to possible joint ventures at selected
         leasehold sites.

         AGE holds a 5.49 percent working  interest in the Roosevelt Hot Springs
         geothermal  power unit (the Unit). On July 22, 1993, AGE agreed to sell
         on a prepayment  basis its steam from the Unit for a 30-year  period to
         PacifiCorp,  which has  constructed the Blundell power plant to utilize
         the steam. Certain leases have been committed to the Unit, of which 188
         acres are within the participating area.

         Competition:  Competition for energy leases is intense,  and many large
         oil and gas companies,  with financial and technical  resources greater
         than those of AGE, are now engaged,  or have  indicated an intention to
         engage, in the acquisition of energy leases.

         Regulations:  AGE is not  currently  engaged in energy  exploration  or
         development.  Should it later  enter into such  activities,  it will be
         subject  to  Federal,  state,  and local  regulations  with  respect to
         environmental matters.

Item 2.  Description of Property

         The  primary  asset AGE holds  representing  its 5.49  percent  working
         interest  in the Unit is a patented  mining  claim on 188 acres that is
         within the current  participating  area of the Unit. AGE pays royalties
         on this claim equal to 5 percent of its net operating  and  maintenance
         revenue and is reimbursed for these royalties by PacifiCorp.

         In addition,  AGE holds mineral  rights in two leases that are directly
         adjacent  to the  current  participating  area of the  Unit.  AGE makes
         annual lease payments for these two leases totaling $97 per year.

         AGE held all  mineral  (including  geothermal)  rights in  leases  that
         expired in 1991.  However,  certain  leases were assigned to subsequent
         parties and AGE retained an overriding  interest in the royalties  from
         productive  land. As of December 31, 2000, AGE continues to receive the
         related  royalty  payments  which  aggregated  $660 in  2000.  AGE will
         continue to receive these overriding  interest royalty payments as long
         as the land remains productive.


                                      I-1
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Form 10-KSB Annual Report

                          Year ended December 31, 2000

Item 3.  Legal Proceedings

         None.

Item 4.  Submission of Matters to a Vote of Securities Holders

         None.


                                      I-2
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Form 10-KSB Annual Report

                          Year ended December 31, 2000


                                     Part II

Item 5.  Market For Common Equity and Related Stockholder Matters

         a) The market in which the common stock of the  Registrant is traded is
            the "over-the-counter" market. During the last two years, there were
            no  established  "bid"  or  "asked"  prices  and  trading  was  done
            primarily on a negotiated basis.

         b) The approximate number of holders of common stock of AGE at December
            31, 2000 is 702.

Item 6.  Management's Discussion and Analysis

         AGE's financial condition and results of operations fluctuate from year
         to year,  depending  upon  the  production  from  current  leases,  the
         availability  of leases to be  acquired,  and the  opportunity  to sell
         lease  rights.  AGE's  ability to obtain  future  leases or to generate
         revenues from the sale of lease rights is not determinable;  hence, its
         financial condition and operations may fluctuate widely in the future.

         Results of Operations - Years ended December 31, 2000 and 1999
         --------------------------------------------------------------

         Revenues  from  the Unit  represent  sales  of  steam  production  that
         fluctuate  based on the activity and  production of the Unit.  Revenues
         for fiscal year 2000 are consistent with the previous year's  revenues.
         Net  income  decreased  to $21,517  in 2000 from  $43,909 in 1999.  The
         majority  of  this  decline  was  due to an  increase  in  general  and
         administrative expenses.  General and administrative expenses increased
         dramatically  in the fiscal year ended  December  31, 2000 due to legal
         fees  incurred  for the merger with  Emtec,   Inc. All other income and
         expenses were fairly consistent between the fiscal years ended December
         31, 2000 and 1999.

         Liquidity
         ---------

         AGE's  liquidity at December  31, 2000,  is  considered  adequate  with
         $1,197,391  in working  capital.  AGE believes  that it has  sufficient
         resources to cover its cash needs during fiscal year 2001.

         Commitments
         -----------

         AGE's future  commitments  consist of lease payments on land. There are
         no other  commitments or anticipated  expenditures of a capital nature,
         other  than the  commitment  related to the  agreement  for the sale of
         steam discussed above.

         External Factors
         ----------------

         AGE's economic future will be dependent,  in major part, upon the value
         of its undeveloped interests in the Unit. The value of such undeveloped
         interests  will, in turn, be dependent upon,  among other matters,  (i)
         the current price of energy,  (ii)  governmental  incentives to develop
         renewable  resources,  (iii) regulatory  incentives,  and (iv) the load
         needs of PacifiCorp.


                                      II-1
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Form 10-KSB Annual Report

                          Year ended December 31, 2000

         Merger Agreement
         ----------------

         On December 15, 2000, AGE entered into an agreement  which provides for
         a merger  between a newly  formed AGE  subsidiary  and Emtec,  Inc.,  a
         privately  held New  Jersey  corporation  engaged  in the  business  of
         providing the computer industry with information  technology  services,
         network consulting and  Internet-related  services.  Upon completion of
         the  merger,  AGE  intends  to seek a listing  of its  common  stock on
         NASDAQ's electronic bulletin board.

         According to the terms of the merger agreement,  each Emtec shareholder
         will  receive  .9753 of a share of AGE  common  stock for each share of
         Emtec common stock owned by such  shareholder  on the effective date of
         the merger.  Upon completion of the merger,  Emtec will become a wholly
         owned  subsidiary of AGE,  Emtec  shareholders  and others will acquire
         approximately  81.8% of AGE's then issued and outstanding common stock,
         AGE's  current   management  will  be  replaced  by  Emtec's  executive
         officers, and Emtec's designees will comprise three of the four members
         of AGE's  post-merger  board of directors.  AGE's current  shareholders
         will retain an approximately 18.2% equity interest in AGE following the
         merger.

         In  order to  facilitate  the  merger,  AGE will  change  its  state of
         incorporation  from Utah to Delaware  by merging  with and into a newly
         formed Delaware subsidiary of AGE. AGE will also concurrently  increase
         its authorized  capitalization from 2,500,000 shares of common stock to
         25,000,000  shares  of  common  stock.  Further,  AGE  will  amend  its
         certificate of incorporation to change AGE's name to "Emtec, Inc."

         AGE shareholders voted to approve the reincorporation to Delaware,  the
         increase in  capitalization,  and the name change on January 15,  2001.
         The merger subsequently became effective January 17, 2001.

Item 7.  Consolidated Financial Statements

           Index to Consolidated Financial Statements                    Page
           ------------------------------------------                    ----

           Independent Auditors' Report                                  II-3

           Consolidated Balance Sheets - December 31, 2000 and 1999      II-4

           Consolidated Statements of Income -
              Years ended December 31, 2000 and 1999                     II-5

           Consolidated Statements of Stockholders' Equity and
              Comprehensive Income -
               Years ended December 31, 2000 and 1999                    II-6

           Consolidated Statements of Cash Flows -
              Years ended December 31, 2000 and 1999                     II-7

           Notes to Consolidated Financial Statements                    II-8

Item 8.  Changes  in  and  Disagreements  with  Accountants  on  Accounting  and
         Financial Disclosure

         None.


                                      II-2
<PAGE>


                          Independent Auditors' Report



The Board of Directors
American Geological Enterprises, Inc.:

We have  audited  the  accompanying  consolidated  balance  sheets  of  American
Geological  Enterprises,  Inc. and subsidiary  (AGE) as of December 31, 2000 and
1999, and the related  consolidated  statements of income,  stockholders' equity
and  comprehensive  income,  and cash  flows for the  years  then  ended.  These
consolidated  financial  statements are the  responsibility of AGE's management.
Our  responsibility  is to express an  opinion on these  consolidated  financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits to obtain  reasonable  assurance  about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material  respects,  the financial position of AGE as of December
31, 2000 and 1999, and the results of their  operations and their cash flows for
the years then ended in conformity with accounting principles generally accepted
in the United States of America.

By:/s/ KPMG, LLP
----------------
       KPMG< LLP

Salt Lake City, Utah
February 23, 2001


                                      II-3
<PAGE>

                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                           Consolidated Balance Sheets

                           December 31, 2000 and 1999
<TABLE>
<CAPTION>
                                          Assets
                                          ------                    2000         1999
                                                                 ----------   ----------
<S>                                                              <C>             <C>
Current assets:
    Cash and cash equivalents                                    $1,017,205      981,316
    Marketable securities (note 2)                                  222,308      204,738
    Accounts receivable                                              19,625       19,479
    Interest and dividends receivable                                 1,276        1,276
    Prepaid lease costs                                                  73           73
    Prepaid income taxes                                               --         17,954
                                                                 ----------   ----------

               Total current assets                               1,260,487    1,224,836
                                                                 ----------   ----------

Investment in geothermal power unit, at cost, less
    accumulated amortization of  $224,919 and $194,929
    at December 31, 2000 and 1999, respectively                     602,280      632,270

Marketable securities (note 2)                                       70,697       70,833
                                                                 ----------   ----------

               Total assets                                      $1,933,464    1,927,939
                                                                 ==========   ==========

                      Liabilities and Stockholders' Equity
                      ------------------------------------

Current liabilities:
    Accounts payable                                             $   53,946       10,275
    Accrued liabilities                                               1,856          976
    Income taxes payable                                              1,582         --
    Deferred income taxes (note 5)                                    5,655        5,233
                                                                 ----------   ----------

               Total current liabilities                             63,039       16,484
                                                                 ----------   ----------

Deferred income taxes (note 5)                                       68,948       77,810

Deferred revenue (note 6)                                           852,535      894,985

Minority interest                                                      --         12,001

Stockholders' equity:
    Common stock, $.01 par value; authorized 2,500,000 shares;
    issued and outstanding 1,380,997 shares
    at December 31, 2000 and 1999                                    13,810       13,810
    Additional paid-in capital                                      600,411      600,411
    Accumulated other comprehensive income                            9,506        8,797
    Retained earnings                                               325,215      303,641
                                                                 ----------   ----------

               Total stockholders' equity                           948,942      926,659

Commitments (note 4)
                                                                 ----------   ----------

               Total liabilities and stockholders' equity        $1,933,464    1,927,939
                                                                 ==========   ==========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                      II-4
<PAGE>

                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                        Consolidated Statements of Income

                     Years ended December 31, 2000 and 1999
<TABLE>
<CAPTION>

                                                                      2000        1999
                                                                   ---------    ---------
<S>                                                                <C>            <C>
Revenues - geothermal power unit (note 6)                          $ 172,030      172,034
                                                                   ---------    ---------

Expenses:
     Operating and maintenance of geothermal power unit (note 6)      58,775       56,069
     Amortization of geothermal power unit                            29,989       29,989
     General and administrative                                      114,550       76,887
     Lease costs                                                          97        2,673
                                                                   ---------    ---------

                    Total expenses                                   203,411      165,618
                                                                   ---------    ---------

                    Operating income                                 (31,381)       6,416
                                                                   ---------    ---------

Other income:
     Interest income                                                  33,503       31,838
     Dividend income                                                  21,875       12,756
     Royalties                                                           660          404
                                                                   ---------    ---------

                                                                      56,038       44,998
                                                                   ---------    ---------

                    Income before income taxes                        24,657       51,414

Income tax expense (note 5)                                            3,083        7,505
                                                                   ---------    ---------

                    Net income                                     $  21,574       43,909
                                                                   =========    =========


Basic net income per common share                                  $    0.02         0.03
                                                                   =========    =========
</TABLE>


          See accompanying notes to consolidated financial statements.


                                      II-5
<PAGE>

                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

    Consolidated Statements of Stockholders' Equity and Comprehensive Income

                     Years ended December 31, 2000 and 1999
<TABLE>
<CAPTION>

                                                                                           Accum-
                                                                                           ulated
                                                                                           other                      Net
                                                                 Additional   Compre-      compre-                   stock-
                                             Common stock         paid-in     hensive      hensive     Retained     holders'
                                          Shares       Amount     capital     income       income      earnings      equity
                                        ----------   ---------   ---------  ----------    ---------    ---------   ---------
<S>                                      <C>            <C>        <C>       <C>             <C>         <C>         <C>
Balances, December 31, 1998              1,260,997      12,610     557,211        --         16,234      259,732     845,787

Comprehensive income:

    Net income                                --          --          --     $  43,909         --         43,909      43,909

    Issuance of common stock in-lieu
      of cash for services rendered        120,000       1,200      43,200        --           --           --        44,400

    Other comprehensive income -
      unrealized loss on marketable
      securities, net of tax benefits
      of $4,425                               --          --          --        (7,437)      (7,437)        --        (7,437)
                                                                             ---------
Comprehensive income                          --          --          --     $  36,472         --           --          --
                                        ----------   ---------   ---------   =========    ---------    ---------   ---------

Balances, December 31, 1999             1,380,997$      13,810     600,411        --          8,797      303,641      926,659

Comprehensive income:

    Net income                                --          --          --     $  21,574         --         21,574       21,574

    Other comprehensive income -
      unrealized gain on marketable
      securities, net of tax benefits
      of $422                                 --          --          --           709          709         --           709
                                                                             ---------
Comprehensive income                          --          --          --     $  22,283         --           --          --
                                                                             =========
Balances, December 31, 2000             1,380,997$      13,810     600,411                    9,506      325,215      948,942
                                        ==========   =========   =========                =========    =========    =========
</TABLE>


          See accompanying notes to consolidated financial statements.


                                      II-6
<PAGE>

                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                      Consolidated Statements of Cash Flows

                     Years ended December 31, 2000 and 1999
<TABLE>
<CAPTION>

                                                                        2000           1999
                                                                    -----------    -----------
<S>                                                                 <C>                 <C>
Cash flows from operating activities:
     Net income                                                     $    21,574         43,909
     Adjustments to reconcile net income to net cash provided by
        operating activities:
           Amortization of geothermal power unit                         29,989         29,989
           Amortization discount/premium of marketable securities           135            135
           Issuance of common stock for services rendered                  --           44,400
           Changes in operating assets and liabilities:
              Accounts receivable                                          (146)           395
              Prepaid lease costs                                          --            2,576
              Prepaid income taxes                                       17,954        (17,954)
              Accounts payable and accrued liabilities                   44,553         (1,403)
              Income taxes payable                                        1,582         (7,636)
              Deferred income taxes                                      (8,440)        (8,847)
              Deferred revenue                                          (42,450)       (42,450)
              Minority interest                                         (12,001)           541
                                                                    -----------    -----------

                    Net cash provided by operating activities            52,750         43,655
                                                                    -----------    -----------

Cash flows from investing activities -
     purchase of marketable securities available-for-sale               (16,861)        (7,551)
                                                                    -----------    -----------

Increase in cash and cash equivalents                                    35,889         36,104

Cash and cash equivalents, beginning of year                            981,316        945,212
                                                                    -----------    -----------

Cash and cash equivalents, end of year                              $ 1,017,205        981,316
                                                                    ===========    ===========

Supplemental disclosure of cash flow information -
     cash paid during the year for income taxes                     $    11,880         41,943
</TABLE>


          See accompanying notes to consolidated financial statements.


                                      II-7
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                   Notes to Consolidated Financial Statements

                           December 31, 2000 and 1999


(1)      Summary of Significant Accounting Policies

         (a) Description of Business

             American   Geological   Enterprises,   Inc.  (AGE)  is  engaged  in
             activities  designed to identify and acquire geothermal and oil and
             gas  leases  in the  Western  United  States.  AGE's  revenues  are
             primarily  derived from royalty  payments from these leases as well
             as the  applicable  portion of  geothermal  steam  revenues sold to
             PacifiCorp on a prepayment basis (see note 6).

         (b) Marketable Securities

             Marketable  investment  securities  consist of  corporate  debt and
             equity   securities.   AGE  classifies   its  debt   securities  as
             "held-to-maturity"      and     all     other     securities     as
             "available-for-sale."   Held-to-maturity   securities   are   those
             securities  which the  Company  has the  ability and intent to hold
             until maturity.

             Available-for-sale   securities   are   recorded   at  fair  value.
             Held-to-maturity  securities  are recorded at cost adjusted for the
             amortization  or accretion of premiums  and  discounts.  Unrealized
             holding  gains  and  losses,  net of the  related  tax  effect,  on
             available-for-sale  securities  are  excluded  from  income and are
             reported as accumulated other comprehensive income in stockholders'
             equity until realized.

             A decline in the market  value of any  available-for-sale  security
             below cost that is deemed to be other than  temporary  results in a
             reduction  in carrying  amount to fair  value.  The  impairment  is
             charged  to  income  and a new  cost  basis  for  the  security  is
             established.  Dividend  and  interest  income are  recognized  when
             earned.

         (c) Investment in Geothermal Power Unit

             AGE holds a 5.49  percent  working  interest in the  Roosevelt  Hot
             Springs  geothermal  power unit (the Unit).  The  investment in the
             Unit is being  amortized  using the  straight-line  method over the
             term (30 years) of the steam sale agreement with  PacifiCorp  (note
             6).

         (d) Lease Costs

             Annual lease  payments  are expensed  over the period of the lease.
             Direct  costs of  acquisition  of new  leases are  capitalized  and
             amortized over the initial life of the lease.

         (e) Cash Equivalents

             Cash equivalents  include all investments with original  maturities
             to AGE of three months or less.


                                      II-8
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                   Notes to Consolidated Financial Statements

                           December 31, 2000 and 1999

         (f) Net Income Per Share

             Basic net income  per common  share is the amount of net income for
             the  period  available  to each share of common  stock  outstanding
             during the reporting  period.  Diluted net income per common share,
             if applicable, is the amount of net income for the period available
             to each share of common  stock  outstanding  during  the  reporting
             period and to each share that would have been outstanding  assuming
             the  issuance of common  shares for all dilutive  potential  common
             shares  outstanding  during the period.  For fiscal  years 2000 and
             1999, only the basic income per share is applicable,  as AGE had no
             potentially  dilutive common shares  outstanding.  Basic net income
             per share  computations are based upon 1,380,997 shares outstanding
             for the years ended December 31, 2000 and 1999.

         (g) Consolidation Policy

             AGE  owned  an 83.8  percent  interest  in  Overthrust  Exploration
             Corporation   (Overthrust),   a   Nevada   corporation   that   was
             incorporated  to explore for and  develop  oil and gas  properties,
             through December 26, 2000, at which time Overthrust was liquidated.
             Accordingly,  Overthrust was included in the consolidated financial
             statements  of AGE through  December  26,  2000.  All  directors of
             Overthrust  were also directors of AGE. All  intercompany  accounts
             were eliminated in consolidation.

         (h) Income Taxes

             The Company uses the asset and liability  method of accounting  for
             income taxes.  Deferred tax assets and deferred tax liabilities are
             recognized  for  the  future  tax   consequences   attributable  to
             differences  between the financial  statement  carrying  amounts of
             existing assets and liabilities and their  respective tax bases and
             operating  loss and tax credit  carryforwards.  Deferred tax assets
             and deferred tax  liabilities  are measured using enacted tax rates
             expected  to apply to  taxable  income in the years in which  those
             temporary  differences are expected to be recovered or settled. The
             effect on deferred  tax assets and deferred  tax  liabilities  of a
             change in tax rates is  recognized  in  income in the  period  that
             includes the enactment date.

         (i) Use of Estimates

             Management of AGE has made  estimates and  assumptions  relating to
             the   reporting  of  assets  and   liabilities   to  prepare  these
             consolidated  financial  statements  in conformity  with  generally
             accepted  accounting  principles.  Actual results could differ from
             those estimates.


                                      II-9
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                   Notes to Consolidated Financial Statements

                           December 31, 2000 and 1999

(2)      Marketable Investment Securities

         Marketable investment securities at December 31, 2000 and 1999, consist
         of:

                                                         2000           1999
                                                     ------------   ------------
          Available-for-sale, at fair value          $    222,308        204,738

          Held-to-maturity, at amortized cost              70,697         70,833
                                                     ------------   ------------
                                                     $    293,005        275,571
                                                     ============   ============

         The amortized cost,  gross  unrealized  holding gains,  and fair market
         value for  marketable  investment  securities by major security type at
         December 31, 2000 and 1999, were as follows:
<TABLE>
<CAPTION>

                                                                                       Gross
                                                                                     unrealized
                                                                     Amortized        holding
                                                                        cost           gains        Fair value
                                                                    ------------   -------------   ------------
          Year ended December 31, 2000:
<S>                                                                 <C>                  <C>            <C>
              Available-for-sale - equity securities                $    207,147         15,161         222,308
                                                                    ============   ============    ============
              Held-to-maturity - corporate debt securities          $     70,697          2,197          72,894
                                                                    ============   ============    ============
          Year ended December 31, 1999:

              Available-for-sale - equity securities                $    190,708         14,030         204,738
                                                                    ============   ============    ============
              Held-to-maturity - corporate debt securities          $     70,833          1,456          72,289
                                                                    ============   ============    ============
</TABLE>

         Maturities of debt securities  classified as  held-to-maturity  were as
         follows at December 31, 2000:

                                              Amortized           Fair
                                                 cost            value
                                             -----------    ------------
          Due within five years              $    50,142          50,669
          Due within five to ten years            10,376          11,322
          Due after ten years                     10,179          10,903
                                             -----------    ------------
                                             $    70,697          72,894
                                             ===========    ============
(3)      Fair Value of Financial Instruments

         The carrying value for certain  short-term  financial  instruments that
         mature frequently  approximates fair value. Such financial  instruments
         include: cash and cash equivalents,  accounts receivable,  and accounts
         payable.  The fair values of debt securities and equity investments are
         based on  quoted  market  prices  at the  reporting  date for  those or
         similar investments (see note 2).


                                     II-10
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                   Notes to Consolidated Financial Statements

                           December 31, 2000 and 1999

(4)      Land Leases

         The  primary  asset AGE holds  representing  its 5.49  percent  working
         interest  in the Unit is a patented  mining  claim on 188 acres that is
         within the current  participating  area of the Unit. AGE pays royalties
         on this claim equal to 5 percent of its net operating  and  maintenance
         revenue and is reimbursed for these royalties by PacifiCorp.

         In addition,  AGE holds mineral  rights in two leases that are directly
         adjacent to the current  participating  area of the Unit. AGE now makes
         annual lease payments on these two leases totaling $97 per year.

         AGE held all  mineral  (including  geothermal)  rights in  leases  that
         expired in 1991.  However,  certain  leases were assigned to subsequent
         parties and AGE retained an overriding  interest in the royalties  from
         productive  land. As of December 31, 2000, AGE continues to receive the
         related  royalty  payments  which  aggregated  $660 in 2000 and $404 in
         1999. AGE will continue to receive these  overriding  interest  royalty
         payments as long as the land remains productive.

(5)      Income Taxes

         Income tax expense  (benefit)  attributable  to income from  operations
         consists of:
<TABLE>
<CAPTION>

                                                   Current     Deferred      Total
                                                 ----------  -----------   ----------
<S>                                              <C>             <C>            <C>
             Year ended December 31, 2000:
                 U.S. Federal                    $   8,998       (7,675)        1,323
                 State and local                     2,947       (1,187)        1,760
                                                 ---------   -----------   ----------
                                                 $  11,945       (8,862)        3,083
                                                 =========   ===========   ==========
             Year ended December 31, 1999:
                 U.S. Federal                    $  13,355       (7,233)        6,122
                 State and local                     3,864       (2,481)        1,383
                                                 ---------   -----------   ----------
                                                 $  17,219       (9,714)        7,505
                                                 =========   ===========   ==========
</TABLE>


                                     II-11
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                   Notes to Consolidated Financial Statements

                           December 31, 2000 and 1999

         Income tax expense attributable to income from operations for the years
         ended December 31, 2000 and 1999, differed from the amounts computed by
         applying  the U.S.  federal  income  tax rate of 34  percent  to pretax
         income from continuing operations as a result of the following:

<TABLE>
<CAPTION>

                                                                                     2000         1999
                                                                                   --------   ----------
<S>                                                                                <C>           <C>
             Computed "expected" tax expense                                       $  8,383       17,481
             Increase (reduction) in income taxes resulting from:
                   State and local income taxes, net of federal income
                     tax benefit                                                      1,162          913
                   Effect of surtax exemption and other, net                         (6,462)     (10,889)
                                                                                   --------   ----------
                                                                                   $  3,083        7,505
                                                                                   ========   ==========

         The tax effects of temporary  differences that give rise to significant
         portions of the deferred tax liabilities at December 31, 2000 and 1999,
         are presented below:

                                                                                      2000        1999
                                                                                   --------   ----------
             Valuation of marketable securities available-for-sale                 $  5,655        5,233
             Investment in geothermal power unit, principally due to
                amortization                                                         68,948       77,810
                                                                                   --------   ----------
                               Total deferred tax liabilities                      $ 74,603       83,043
                                                                                   ========   ==========
</TABLE>

(6)      Geothermal Power Unit and Concentration of Credit

         AGE entered into an  agreement  on July 22, 1993,  to sell its share of
         steam  from  the  Unit  for a  30-year  period  on a  prepayment  basis
         commencing  January 22, 1991 to PacifiCorp,  which has  constructed the
         Blundell  power  plant to utilize the steam.  The  advance  received is
         being  recognized as revenue over the remaining  term of the agreement.
         Revenue of approximately  $42,000 was amortized and recognized for both
         2000 and 1999.

         AGE is  required  to pay  its  proportionate  share  of  operating  and
         maintenance  expenses to the operator of the Unit.  AGE paid  operating
         and maintenance  expenses of approximately  $59,000 and $56,000 in 2000
         and 1999, respectively.

         Additionally,   PacifiCorp  pays  AGE  for  operating  and  maintenance
         services and a reimbursement  of royalties for one lease AGE holds that
         is included in the Unit. PacifiCorp paid AGE approximately $129,000 for
         both 2000 and 1999,  for  operating  and  maintenance  services that is
         reported  as  revenue  from the Unit.  Royalties  due are equal to five
         percent of AGE's net operating and maintenance revenue. PacifiCorp paid
         AGE approximately $3,500 and $3,700 in 2000 and 1999, respectively, for
         these royalties which AGE, in turn, paid to its lessors.


                                     II-12
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                   Notes to Consolidated Financial Statements

                           December 31, 2000 and 1999

(7)      Officer Remuneration

         During the year ended  December  31, 1999,  AGE  recorded  compensation
         expense of $44,400  relating to issuance of common  stock for  services
         rendered by members of its officers and  directors.  There was no other
         compensation  paid to officers  and  directors  during the fiscal years
         ended December 31, 1999 and 2000.

(8)      Merger

         On December 15, 2000, AGE entered into an agreement  which provides for
         a merger  between a newly  formed AGE  subsidiary  and Emtec,  Inc.,  a
         privately  held new  Jersey  corporation  engaged  in the  business  of
         providing the computer industry with information  technology  services,
         network consulting and  Internet-related  services.  Upon completion of
         the merger,  the newly formed company  intends to seek a listing of its
         common stock on NASDAQ's electronic bulletin board.

         In  order  to  facilitate   the  merger,   AGE  changed  its  state  of
         incorporation  from Utah to Delaware  by merging  with and into a newly
         formed  Delaware  subsidiary  of  AGE.  AGE  increased  its  authorized
         capitalization  from  2,500,000  shares of common  stock to  25,000,000
         shares of  common  stock.  Further,  AGE  amended  its  certificate  of
         incorporation to change AGE's name to "Emtec, Inc."

         According to the terms of the merger agreement,  each Emtec shareholder
         received  .9753 of a share of AGE common  stock for each share of Emtec
         common stock owned by such  shareholder  on the  effective  date of the
         merger.  Upon  completion  of the merger,  Emtec  became a wholly owned
         subsidiary of AGE, Emtec shareholders and others acquired approximately
         81.8% of AGE's then issued and outstanding  common stock, AGE's current
         management  was  replaced by Emtec's  executive  officers,  and Emtec's
         designees comprise three of the four members of AGE's post-merger board
         of  directors.  Emtec will  account for this  transaction  as a reverse
         merger for Emtec.  AGE's current  shareholders  retain an approximately
         18.2% equity interest in AGE following the merger.

         AGE shareholders voted to approve the reincorporation to Delaware,  the
         increase in  capitalization,  and the name change on January 15,  2001.
         The merger subsequently became effective January 17, 2001.


                                     II-13
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Form 10-KSB Annual Report

                          Year ended December 31, 2000


                                    Part III



Item 9.  Directors,   Executive  Officers,   Promoters,   and  Control  Persons;
         Compliance with Section 16(a) of the Exchange Act

         The following  directors  and  executive  officers will serve until the
         next annual  stockholders'  meeting and until their successors are duly
         qualified and elected.

                    Name                           Office

               Milton Fisher              Chairman of the Board and Director
               Dominic Welch              President, Treasurer and Director
               M. Walker Wallace          Vice President and Director
               Peter W. G. Cayias         Secretary and Director
               Katie L. Dixon             Director

         Mr.  Fisher,  80,  President of A. D. Gilhart & Co.,  Inc.  (investment
         bankers since 1959),  has been a Director of AGE since its organization
         in 1969 and now serves as Chairman  of the Board.  He holds a doctor of
         law,  is a member of the Bar of the State of New  York,  and  presently
         serves as a director of several  public  companies.  He has written and
         lectured   in  the  field  of  business   finance   and   interpersonal
         relationships.

         Mr. Welch,  68, is a certified  public  accountant and is the President
         and a  Director  of  Kearns-Tribune  Corporation,  where  he  has  been
         employed for over 20 years.  He became a Director and  Treasurer of AGE
         in 1970 and  President  in 1998.  Mr. Welch holds a Bachelor of Arts in
         Accounting from Utah State University.

         Mr.  Wallace,  77,  has been an  officer  and  director  of AGE and has
         devoted a portion of his time to its affairs  since  1969.  He is also,
         and has been for over 35 years,  a consultant  in the  development  and
         management of real property  investments  and a private  investor.  Mr.
         Wallace  presently  serves as a Director and a member of the  executive
         committee of First Interstate Bank of Utah, as a Director and President
         of  Arizona  Ranch  &  Metals  Company,  and  as  Chairman  of  Wallace
         Associates,  Inc., a real estate  investment  and  management  firm. He
         holds a Bachelor of Arts from Stanford University and a Master's Degree
         in city planning from the Massachusetts Institute of Technology.

         Mr. Cayias,  65, has been a licensed insurance agent since 1960. He has
         been an Officer  and  Director of AGE since 1969 and is also an Officer
         and Director of several other  corporations  engaged in the real estate
         business and natural resource investment  business.  Mr. Cayias holds a
         Bachelor of Science in Business  Administration  from the University of
         Utah.

         Mrs.  Dixon,  75, was  Recorder of Salt Lake County from  January  1975
         through  December 1994, and a Director of AGE since 1972. For more than
         14 years prior to 1975,  she was  involved in community  affairs.  Mrs.
         Dixon holds a Bachelor of Science from Utah State University.


                                     III-1
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Form 10-KSB Annual Report

                          Year ended December 31, 2000

         Beneficial Ownership Reporting Compliance
         -----------------------------------------

         Section  16(a) of the Exchange  Act of 1934  requires  AGE's  officers,
         directors,  and persons  who own more than ten percent of a  registered
         class of AGE's equity  securities,  to file  reports of  ownership  and
         changes in ownership with the Securities and Exchange  Commission (SEC)
         and the New York Stock Exchange. Officers,  directors, and greater than
         ten percent  stockholders are required by SEC regulation to furnish AGE
         with copies of all Section 16(a) forms they file.

         Based solely on its review of the copies of such forms  received by it,
         or written representations from certain reporting persons that no Forms
         5 were required for those persons,  AGE believes that during AGE's last
         fiscal  year  all  filing  requirements  applicable  to  its  officers,
         directors, and greater than ten percent beneficial owners were complied
         with.

Item 10. Executive Compensation

         During the year ended  December  31, 1999,  AGE  recorded  compensation
         expense of $44,400  relating to issuance of common  stock for  services
         rendered by members of its officers and  directors.  There was no other
         compensation  paid to officers  and  directors  during the fiscal years
         ended December 31, 1999 and 2000.

Item 11. Security Ownership of Certain Beneficial Owners and Management

         The following table sets forth information as to the ownership of AGE's
         $.01 par value common  stock by all officers and  directors of AGE as a
         group and by owners of more than five  percent of AGE's common stock as
         of December 31, 2000:
<TABLE>
<CAPTION>

                                                                       Type of            Amount          Percent
              Name                                                    ownership           owned           of class
           -----------                                             ---------------     ------------     ----------
<S>                                                                    <C>                <C>              <C>
                 All directors and officers (5) as a group             Record             419,082          30%
                 M. Walker Wallace                                     Record             127,667           9
                 Katie L. Dixon                                        Record             124,428           9
                 Paul T. Walton Estate                                 Record              96,665           7
                 Milton Fisher                                         Record              95,646           7
</TABLE>


                                     III-2
<PAGE>


                      AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Form 10-KSB Annual Report

                          Year ended December 31, 2000

Item 12. Certain Relationships and Related Transactions

         None.

Item 13. Exhibits and Reports on Form 8-K

         Report on Form 8-K

         No reports on Form 8-K have been filed.


                                     III-3
<PAGE>


                                S I G N A T U R E

Pursuant to the requirements of Sections 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.





AMERICAN GEOLOGICAL ENTERPRISES, INC.
-------------------------------------
        (Registrant)





                                     By /s/ Dominic Welch
                                     --------------------
                                            Dominic Welch, President and
                                            Principal Executive Officer


March 15, 2001                       By /s/ Peter W. G. Cayias
--------------                       -------------------------
                                            Peter W. G. Cayias, Secretary and
                                            Principal Financial Officer


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons in behalf of the  Registrant and
in the capacities and on the dates indicated.



By /s/ Dominic Welch                 By /s/ M. Walker Wallace
--------------------                 ------------------------
       Dominic Welch, Director              M. Walker Wallace, Director







By /s/ Peter W. G. Cayias
-------------------------
       Peter W. G. Cayias, Director