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

                             FORM 10-QSB


 (MARK ONE)
    [X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES
          EXCHANGE ACT OF 1934

            FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2000.


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

     FOR THE TRANSITION PERIOD FROM _____________TO _________________



                 Commission File Number   0 - 30164



                        TENSLEEP CORPORATION
           (Name of Small Business Issuer in its charter)


          COLORADO                                       33-0789960
 (state or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                    Identification No.)

             86025 52nd Avenue, Coachella, CA 92236-2701
         (Address of Principal Executive offices, Zip Code)

                           (888) 443-2656
          (Issuer's Telephone Number, including area code)

     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 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 [ ]


     The number of shares outstanding of issuer's only class of Common
Stock, no par value, was 11,832,023 on December 31, 2000.

                               INDEX

PART I.  FINANCIAL INFORMATION. . . . . . . . . . . . . . . . . . .

     Item 1.  Financial Information  . . . . . . . . . . . . . . . .

          Financial Statements for Tensleep Corporation:

              Balance Sheets . . . . . . . . . . . . . . . . . . . .

              Statements of Operations. . . . . . . . . . . . . . . .

              Statements of Shareholders' Eqity  . . . . . . . . . .

              Statements of Cash Flows . . . . . . . . . . . . . . .

              Notes to Finanical Statements. . . . . . . . . . . . .

      Item 2.  Management's Discussion and analysis or Plan of Operations

               Overview . . . . . . . . . . . . . . . . . . . . . . .

               Plan of Operation. . . . . . . . . . . . . . . . . . .

               Discussion and Analysis. . . . . . . . . . . . . . . .

PART II.  OTHER INFORMATION

      Item 1.  Legal Proceedings. . . . . . . . . . . . . . . . . . .

      Item 2.  Changes in Securities. . . . . . . . . . . . . . . . .

      Item 3.  Defaults Upon Senior Securities. . . . . . . . . . . .

      Item 4.  Submission on Matters to Vote of Security-Holders. . .

      Item 5.  Other Information. . . . . . . . . . . . . . . . . . .

      item 6.  Exhibits and Reports on Form 8 - K . . . . . . . . . .


                          PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

      The consolidate financial statements have been prepared by Tensleep
Corporation, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission.  The Company believes that the disclosures
are adequate to make the information presented not misleading when read with
the Company's audited financial statements for the rears ended September 30,
2000 and 1999.  The financial information presented reflects all adjustments,
consisting only of normal recurring adjustments, which are, in the opinion of
management necessary for a fair statement of the results from the periods
presented.


<PAGE>


                      TENSLEEP CORPORATION AND SUBSIDIARIES

                             CONSOLIDATED BALANCE SHEETS

                             DECEMBER 31, 2000 AND 1999

<TABLE>
<CAPTION>
                                       ASSETS
                                                             2000            1999
                                                         -----------     -----------
<S>                                                      <C>             <C>
CURRENT ASSETS

 Cash                                                    $   197,862     $    73,307
 Marketable Securities (See note 1)                           40,789               -
 Prepaid Expenses (See note 15)                              187,500         445,100
 Other Receivables (See note 20)                             430,760               -
 Due from Tensleep Appliance (See note 23)                   102,233               -
 License Fee Receivable (See note 19)                        100,000               -
 Royalty Receivable (See note 18)                             19,748               -
 Loan Receivable                                              36,000               -
                                                         -----------     -----------
      Total Current Assets                                 1,114,892         518,407
                                                         -----------     -----------
PROPERTY AND EQUIPMENT

 Machines & Equipment                                        106,336         102,014
 Software                                                    186,728         172,371
                                                         -----------     -----------
                                                             293,064         274,385
 Less accumulated depreciation and amortization              254,609         160,060
                                                         -----------     -----------
      Net Property and Equipment                              38,455         114,325


OTHER ASSETS

 Goodwill - net of accumulated amorization of $25,302
                                        (See note 20)        312,050               -
 Investment in China Net & Technologies, Inc., at
                                 equity (See note 2)       1,656,508         634,667
 Investment in Amcor Financial Corp., at equity
                                         (See note 3)      1,266,654       1,400,000
 Investment in Silicon Resources, at cost (See note 4)     1,103,800       1,103,800
 Receivable (See note 5 and 12)                                    -               -
 Investiment in Whisk.co.uk                                1,300,000               -
                                                         -----------     -----------
      Total Other Assets                                   5,639,012       3,138,467
                                                         -----------     -----------

TOTAL ASSETS                                             $ 6,792,359     $ 3,771,199
                                                         ===========     ===========

</TABLE>
<PAGE>

                          TENSLEEP CORPORATION AND SUBSIDIARIES

                               CONSOLIDATED BALANCE SHEETS

                               DECEMBER 31, 2000 AND 1999

<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY

                                                             2000            1999
                                                         -----------     -----------
<S>                                                      <C>             <C>
CURRENT LIABILITIES
   Accounts Payable                                      $     1,041     $     5,393
   Loan payable to China Net & Technologies, Inc.
                           (See nOTE 6)                        2,291          17,159
   Accrued consulting fees (See note 11)                      75,000          66,800
                                                         -----------     -----------
    Total Current Liabilities                                 78,332          89,352
                                                         -----------     -----------

TOTAL LIABILITIES                                             78,332          89,352


STOCKHOLDERS' EQUITY
   Preferred stock, no stated value, 10,000,000 shares             -               -
   authorized no shares issued and outstanding

   Common stock, $.01 stated value, 50,000,000 shares        118,321          70,040
   authorized 11,832,023 and 7,045,016 shares issued
   and outstanding at December 31, 2000 and 1999,
   respectively

   Treasury stock, 1,000,000 and 0, at cost, for                   -               -
   December 31, 2000 and 1999, respectively

   Additional paid-in capital                              9,286,000       5,128,959

   Allowance for Unrealized Gains (Losses) on                (48,055)              -
   Marketable Equity Securities (See note 1)

   Note Receivables for common stock                         (82,000)              -
   (See note 11 and 16)

   Retained Earnings (Accumulated Deficit)                (2,560,239)     (1,517,152)
                                                         -----------     -----------

TOTAL STOCKHOLDERS' EQUITY                                 6,714,027       3,681,847
                                                         -----------     -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $ 6,792,359     $ 3,771,199
                                                         ===========     ===========
</TABLE>
The accompanying notes are an integral part of these statements.

<PAGE>

                             TENSLEEP CORPORATION AND SUBSIDIARIES

                              CONSOLIDATED STATEMENT OF OPERATIONS

                        FOR THE THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
<TABLE>
<CAPTION>
                                                             2000            1999
                                                         -----------     -----------
<S>                                                      <C>             <C>
REVENUES
   Design Fees                                           $         -     $         -
   Memberships                                                 4,601               -
   License Fees (See note 19)                                      -         750,000
   Stock Promotion                                            87,955               -
   Royalty Income (Note 18)                                   19,748               -
   Other Income                                                  117             705
                                                         -----------     -----------
                                                             112,862         750,705

EXPENSES
   Advertising                                                   500          58,305
   Automobile expense                                          1,040             868
   Bank service charges                                          262              62
   Compensation                                                    -               -
   Consulting expense                                        149,500         176,333
   Depreciation and Amortization                              32,238          22,866
   Dues and subscriptions                                         15             132
   Filing fees                                                     -              50
   Insurance                                                       -           1,539
   Interest                                                      176              98
   License & permits                                               -              50
   Other expenses                                              5,237              69
   Office supplies                                               188              56
   Outside services                                           11,156           6,637
   Payroll & Payroll Taxes                                     4,717               -
   Postage & delivery                                            365             266
   Printing and reproduction                                       -               -
   Professional fees                                           1,550           2,407
   Promotion                                                       -               -
   Rent                                                          540               -
   Repairs                                                       526              95
   Product development costs                                       -               -
   Supplies                                                    2,842               -
   Telephone                                                   1,349           1,923
   Travel & Entertainment                                     10,340           4,616
   Utilities                                                       -             189
                                                         -----------     -----------
                                                             222,541         276,561
                                                         -----------     -----------
INCOME (LOSS) FROM OPERATIONS                               (109,679)        474,144
                                                         -----------     -----------
OTHER INCOME (EXPENSE)
   Interest Income                                             4,131               -
   Income (loss) on equity investments                       (32,739)              -
   Net Realized gain on marketable
        securities (See note 1)                              ( 7,478)              -
                                                         -----------     -----------
                                                             (36,086)              -
                                                         -----------     -----------
PROVISION FOR INCOME TAXES (See note 22)                           -               -
                                                         -----------     -----------
NET INCOME (LOSS)                                        $  (145,765)    $   474,144
                                                         ===========     ===========


EARNINGS PER COMMON SHARE (SEE NOTE 13)                  $     (0.01)    $      0.07
                                                         ===========     ===========

</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>

                         TENSLEEP CORPORATION & SUBSIDIARIES

              CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

                   F0R THE THREE MONTHS ENDED DECEMBER 31, 2000 and 1999

<TABLE>
<CAPTION>
                                                                                                       Allowance
                                                                                                    for Unrealized
                                                                                              Note      Gains and
                                                                   Additional              Receivable  Losses on
                      See             Number of             Common   paid-in     Retained      for     Marketable
                      Note   Date      shares    Considera   stock   capital     Earnings     stock   Equity Sec         Total
                      -----------------------------------------------------------------------------------------------------------
<S>                   <C> <C>       <C>         <C>        <C>       <C>        <C>          <C>        <C>          <C>
Balance 9/30/1998
  as prev. reported                  6,103,016             $  61,030 $  535,186 $(1,780,930) $       -  $         -  $ (1,184,714)
Adjustments:
  Prior prd adj                                                    -          -     (32,205)         -            -       (32,205)
  cost to equity
  method - Note 2                    ---------  ---------- --------- ---------- ------------ ---------  -----------  -------------

Balance, 10/1/1998
  as restated                        6,103,016             $  61,030 $  535,186 $(1,813,135) $       -  $         -  $ (1,216,919)

Stock issued          7A  12/15/98      35,000   Cash/Note       350    174,650           -          -            -       175,000
Stock issued          7B  12/15/98       8,000   Non-cash         80     39,920           -          -            -        40,000
Stock issued          7C  12/15/98     300,000   Non-cash      3,000  1,497,000           -          -            -     1,500,000
Stock issued          7B  12/15/98       4,000   Non-cash         40     19,960           -          -            -        20,000
Stock issued          7B  12/15/98       4,000   Non-cash         40     19,960           -          -            -        20,000
Stock issued          7B  12/15/98       4,000   Non-cash         40     19,960           -          -            -        20,000
Stock issued          7B  12/15/98       4,000   Non-cash         40     19,960           -          -            -        20,000
Stock issued          7D  12/15/98       4,000   Non-cash         40     19,960           -          -            -        20,000
Stock issued          7E  12/15/98     137,000    Note         1,370    683,630           -          -            -       685,000
Exercise A Warrants   7E  12/15/98      88,000    Note           880     34,320           -          -            -        35,000
Exercise B Warrants   7F  03/31/99       4,000   Non-cash         40     19,960           -          -            -        20,000
Exercise A & B Warr   7G  09/13/99     350,000   Non-cash      3,500    496,500           -          -            -       500,000
Note Rec for stock    16                     -                                -           -   (610,200)           -      (610,200)
Net income (loss)
        1999                                  -                               -   ( 253,242)         -            -      (253,242)
                                      ---------  --------- --------- ---------- ------------ ---------- ------------ -------------
Balance 9/30/1999                     7,045,016            $  70,450 $3,580,966 $(2,066,377) $(610,200) $         -  $    974,839

Exercise B Warrants   7H  10/11/19       15,000  Non-cash        150     74,850           -          -            -        75,000
Exercise A Warrants   7I  10/26/19       20,000  Non-cash        200     19,800           -          -            -        20,000
Stock issued          7J  10/29/19       35,000  Non-cash        350     27,650           -          -            -        25,000
Exercise A Warrants   7K  11/01/19        5,000   Cash            50      3,950           -          -            -         4,000
Exercise A Warrants   7L  11/03/19        1,000   Cash            10        790           -          -            -           800
Exercise A Warrants   7M  11/03/19        1,000   Cash            10        790           -          -            -           800
Exercise A Warrants   7N  12/07/19       10,000  Non-cash        100      7,900           -          -            -         8,000
Exercise A Warrants   7O  12/07/19       50,000  Non-cash        500     49,500           -          -            -        50,000
Exercise A Warrants   7P  12/07/19       13,000  Non-cash        130     12,870           -          -            -        13,000
Stock issued          7Q  12/08/19       60,000  Non-cash        600     59,400           -          -            -        60,000
Erercise B Warrants   7R  12/13/19       25,000  Non-cash        250    122,250           -          -            -       122,500
Stock issued          7S  12/14/19       20,000   Cash           200     35,282           -          -            -        35,482
Exercise B Warrants
    & stock issued    7T  12/30/19      300,000  Non-cash      3,000    597,000           -          -            -       600,000
Erercise B Warrants   7U  12/30/19       50,000  Non-cash        500    249,500           -          -            -       250,000
Exercise A Warrants   7V  12/30/19      253,960  Non-cash      2,540    197,460           -          -            -       200,000
Exercise A Warrants   7W  12/30/19      100,000  Non-cash      1,000     79,000           -          -            -        80,000
Shares cancelled      7X  12/30/19   (1,000,000) Non-cash   (10,000)     10,000           -          -            -             -
Note Rec canceled     16  12/30/19            -  Non-cash          -          -           -    610,200            -       610,200
Stock issued          7Y  02/24/20      340,000  Non-cash      3,400     30,600           -          -            -        34,000
Erercise B Warrants   7Z  03/07/20      100,000   Cash         1,000    449,000           -          -            -       450,000
Stock issued          7AA 04/22/20      400,000  Non-cash      4,000    996,000           -          -            -     1,000,000
Exercise B Warrants
    & stock issued    7AB 04/22/20      500,000  Non-cash      5,000  1,245,000           -          -            -     1,250,000
Stock issued          7AC 06/07/20       10,000  Non-cash        100     14,275           -          -            -        14,375
Stock dividend        14  06/02/20        4,290  Non-cash         43      5,856      (5,856)         -            -             -
Stock dividend        14  07/26/20       49,737  Non-cash        497     64,783     (65,280)         -            -             -
Stock dividend        14  08/23/20        4,020  Non-cash         40      3,728     ( 3,768)         -            -             -
Net income for 2000                           -                    -          -    (265,868)         -            -      (265,868)
Net Unrealized loss
  on marketable
  equity securities                           -                    -          -           -          -      (41,468)      (41,468)
                                      ---------             --------  ---------   ---------  ---------  -----------    -----------

Balance 9/30/2000                     8,412,023             $ 84,120 $7,938,200 $(2,407,192) $       -  $   (41,468)   $5,573,660

Stock Issued          7AD 11/10/20      820,000  Non-cash      8,200     73,800           -          -            -        82,000
Stock Issued          7AE 12/15/20    2,600,000  Non-cash     26,000  1,274,000           -          -            -     1,300,000
Note for stock        16                      -                    -          -           -    (82,000)           -       (82,000)
Net Loss for period                           -                    -          -    (145,765)         -            -      (145,765)
Net Unrealized loss
   on marketable
   equity securities                          -                    -          -           -          -      ( 6,587)    (   6,587)
Adjustment Prior Pd                           -                    -          -     ( 7,281)         -            -     (   7,281)
                                      ---------             --------  ---------   ---------  ---------  -----------    -----------

Balance12/31/2000                    11,832,023             $118,320 $9,286,000 $(2,560,238) $(82,000)  $   (48,055)   $6,714,027

</TABLE>








The accompanying notes are an integral part of these statements.


<PAGE>

                        TENSLEEP CORPORATION AND SUBSIDIARIES

                         CONSOLIDATED STATEMENT OF CASH FLOWS

                             DECEMBER 31, 2000 AND 1999



<TABLE>
<CAPTION>
                                                             2000            1999
                                                         -----------     -----------
<S>                                                      <C>             <C>
CASH FLOW FROM OPERATING ACTIVITIES
   Net Income (Loss)                                     $  (145,765)    $   472,852

   Adjustments to reconcile net loss to
            net cash used in operations:
     Depreciation and amortization                            32,238          22,866
     Expenses (income) incurred in exchange for commo              -         224,333
     Equity in earnings of affiliated companies               32,739               -

     (Increase) decrease in assets:
      Non - cash Income                                            -        (750,000
      Prepaid expenses                                        62,500          (2,601)
      Accounts Receivable                                   (318,760)              -
      Royalty Receivable                                      15,543               -
      Loan Receivable                                        ( 6,000)              -

     Increase (decrease) in liabilities:
      Accounts Payable                                           286             700
      Accrued consulting fees                                 75,000               -
                                                         -----------     -----------
   Net cash used by operating activities                    (106,364)       (504,702)
                                                         -----------     -----------
CASH FLOWS FROM INVESTING ACTIVITIES

   Advances to affilate                                      (52,233)              -
   Net (purchases) sales of marketable securities            (21,452)              -
   Purchases of Machinery & equipment                           (579)              -
                                                         -----------     -----------
   Net cash used by investing activities                     (74,264)              -
                                                         -----------     -----------
CASH FLOWS FROM FINANCING ACTIVITIES
   Loan payments on Stock Purchase                                 -          60,000
   Borrowings from Corporate Finance Co.                           -           2,726
   Proceeds from exercise of warrants                              -          41,083
                                                         -----------     -----------
   Net cash provided by financing activities                       -         103,809
                                                         -----------     -----------
NET INCREASE (DECREASE) IN CASH                             (326,393)         71,959

CASH, beginning of period                                    524,255              65
                                                         -----------     -----------
CASH, end of period                                      $   197,862     $    72,024
                                                         ===========     ===========

</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>

                                TENSLEEP C0RPORATION

                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                            DECEMBER 31, 2000 AND 1999



ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Tensleep Corporation (formerly Tensleep.com, Inc., Tensleep Technologies, Inc.
and Tensleep Design, Inc.)  (A Colorado Corporation) (The Company) is an
integrated Internet company that acquires and licenses technology; identifies,
acquires, and develops, development stage technology and service companies
that focus on the Internet infrastructure market, Internet related appliances
and the integration of those products with services provided through the
Internet.   The Company is consolidating its current subsidiaries and
affiliates into groups relating to the market sector of each subsidiary and
affiliate.  Individually, each company within each group will continue to
develop its own operations and build its own revenue streams: collectively, the
subsidiaries and affiliates now owned and those to be acquired,  will enable
the Company to become an international provider of specialized electronic
appliances and Internet services. The Company is located in Austin, Texas.

Consolidation Policy

The consolidated financial statements include the accounts of The Company and
all of its wholly owned and majority-owned subsidiaries.  All intercompany
transactions and balances have been eliminated.  The Company's investments in
17% to 50% owned affiliates in which it has the ability to exercise significant
influence over operating and financial policies are accounted for using the
equity method.  Accordingly, the Company's share of the earnings of these
companies is included in consolidated net income.  Investments in other
companies are carried at cost.

Development Stage Company

The Company was formed on October 23, 1997 and was in the development stage
through September 30, 1999.  During this period of time the Company did not
generate any income from operations.  The Company's activities were devoted to
raising capital and obtaining financing. The year ending September 30,
2000 is the first fiscal year during which the Company began active operations
pertaining to technology and license agreements.

Product Development Costs

Product development costs are expensed as incurred.  At September 30, 2000
such costs were approximately $96,000.  Prior to commencing operations the
Company incurred research and development costs which were also charged to
operations when incurred.  Research and development costs were $0 for the three
months ending December 31, 2000 and 1999.

Marketable Securities

Marketable Securities currently consist of common stock.  Marketable
securities are stated at market value as determined by the most recently
traded price of each security at the balance sheet date.  The Company's
investment in marketable equity securities are held for an indefinite period
and thus are classified as available for sale.  Available-for-sale securities
are carried at fair value, with the unrealized gains and losses, net of tax,
reported as a separate component of stockholders' equity.  The cost of
investments sold is determined on the specific identification or the first-in-
first out method.

Cash and Cash Equivalents

For the purposes of financial statement reporting, the Company considers all
highly liquid investments with maturity of 3 months or less to be cash
equivalents.

Concentration of Credit Risk

The Company maintains its operating cash accounts at commercial banks in
California, Texas and Minnesota.  The accounts at the banks are guaranteed by
the Federal Deposit Insurance Corporation (FDIC) up to $100,000 per bank.  At
times some accounts may exceed FDIC limits.  The Company limits the amount of
credit exposure with any one financial institution and believes that no
significant concentration of credit risks exists with respects to cash and cash
equivalents.

Property and Equipment, Depreciation and Amortization

Property and equipment obtained in exchange for stock are carried at the fair
market value of the equipment on the date of exchange.  Property and equipment
purchased is carried at cost as of the date of purchase.

Depreciation and amortization are computed using the straight-line method over
the assets' expected useful lives. The useful lives of property and equipment
for purposes of computing depreciation are:

		Machinery & Equipment		3 years
		Software			3 years

Repairs and maintenance are charged to operations when incurred. Costs of
betterments, which materially extend the useful lives of the assets, are
capitalized.  Gains and losses from sales or disposition of assets are included
in the statement of operation.

Goodwill, which represents the excess of the cost of purchased companies over
the fair value of the underlying net assets at dates of acquisition, is being
amortized over a 10 year period.

Use of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual
results could differ from those estimates.

Fair Value of Financial Instruments

For the Company's financial instruments, the carrying value is considered to
approximate the fair value. Cash, prepaid expenses and accounts payable are
settled so close to the balance sheet date that fair value does not differ
significantly from the stated amounts.

Income Taxes

Income Taxes are recognized during the year in which transactions enter into
the determination of consolidated financial statement income, with deferred
taxes being provided for temporary differences between amounts of assets and
liabilities for financial report purposes and such amounts as measured by tax
laws.  See Note 22.

The consolidated financial statements of the Company include a provision for
(benefit from) income taxes based on the consolidated results of operations for
the parent company and its subsidiaries.  As of September 30, 2000 adequate
detailed books and records and supporting data for the subsidiary Master
Financial Group, Inc. were not available and as such the impact on consolidated
accrued income taxes and income tax expense could not be determined.  For
consolidated financial reporting purposes the provision for income taxes using
the consolidated results of operations was offset through the utilization of
the parent company's net operating loss carryover.


Adjustments

In the opinion of management the data reflects all adjustments necessary for a
fair consolidated statement of results for this period.  All adjustments are of
a normal and recurring nature

Advertising

Advertising costs, except for costs associated with direct-response
advertising, are charged to operations when incurred. The costs of direct-
response advertising, if any, are capitalized and amortized over the period
during which future benefits are expected to be received.

Note Receivable for common stock

The Company reports notes received in payment for the Company's stock as a
deduction from stockholders' equity (deficit).  A note will be recorded as an
asset if collected in cash prior to the issuance of the financial statements.

NOTE 1: MARKETABLE SECURITIES

Investments in marketable securities are summarized as follows at December 31,
2000:


Stockholders' equity includes an unrealized holding loss on available-for-sale
securities of $48,055.

Realized gains and losses are determined on the basis of specific
identification.  As of December 31, 2000, sales proceeds and gross realized
gains and losses on securities classified as available for sale were:

		Sales proceeds				$    66,458
		Gross realized gains			        490
		Gross realized losses			     (7,968)
  		Net realized loss			$    (7,478)

NOTE 2: INVESTMENT IN CHINA NET & TECHNOLOGIES, INC.

In 1997 the Company acquired 80,000 shares of China Net & Technologies, Inc.
(formerly Corporate Finance Company)  ("CN&T") common stock valued at
$200,000 or $2.50 per share.  CN&T is an affiliate company.  CN&T is a high-
technology and Internet-related company that specializes in developing
strategic relationships with emerging-growth, high-technology companies in
China.  CN&T has acquired a license to manufacture and distribute the
Company's Web-modem in China and is seeking Chinese companies to manufacture
and distribute that product.  In 1999 the Company acquired an additional
80,000 shares (see note 5) also valued at $200,000 or $2.50 per share. In 1998
the Company sold 800 shares of CN&T common stock for $2,000 to unrelated
parties. The proceeds from the sale were given directly to CN&T to reduce the
Company's loan payable to CN&T.  In April 2000 the Company entered into an
agreement with CN&T to license technology to it on a case by case basis, where
CN&T will engage in joint ventures with Chinese Company's for the manufacture
of and distribution of electronic products and developing and maintaining web-
sites for business-to-business and business-to-consumers in China.  The Company
licensed its "web-modem" to CN&T to manufacture the product and distribute it
in China.  As part of this agreement the Company exchanged 400,000 shares
valued at $1,000,000 or $2.50 per share of restricted common stock for
2,000,000 shares of CN&T restricted common stock.  In addition CN&T issued the
Company 500,000 shares of its restricted common stock to reimburse the Company
for promotional services valued at $320,667 for a total initial investment of
$1,718,667.  Based on the additional shares acquired during the current fiscal
year the Company's interest in CN&T represent approximately a 33% ownership.  A
major shareholder of the Company is also a major shareholder of CN&T.
Accordingly, the Company changed its method of carrying the investment from
cost to equity as required by generally accepted accounting principles.  Under
the cost method, income is recorded when dividends are received.  Under the
equity method, the Company records its proportionate share of the earnings or
losses of CN&T.

NOTE 3: INVESTMENT IN AMCOR FINANCIAL CORP.

During fiscal year 2000 the Company acquired 700,000 shares in Amcor
Financial Corp. (Amcor).  Amcor is a specialty finance company providing
merchant banking services in the form of real estate financing and financing of
emerging growth companies.  A major shareholder of the Company is also a major
shareholder of Amcor.  Shares acquired represent approximately a 17% ownership
in Amcor.  Based on the 17% ownership interest in Amcor and since the Company
can exercise significant influence over Amcor's operating and financial
activities,  the Company has accounted for the investment under the equity
method. Under the equity method, the Company records its proportionate share of
the earnings of Amcor.  The shares were obtained in cash-free exchanges.  The
valuation of the shares obtained was an agreed-upon value as of the date of the
exchange based upon the market value of the Company's common stock on the
closing date.

The Company exchanged 300,000 shares of its common stock (100,000 shares by the
exercise of 100,000 Class B Warrants and 200,000 shares of common stock) for
300,000 shares of Amcor  valued at $600,000.  The Company also exchanged
253,960 shares (253,960 shares by the exercise of 253,960 Class A Warrants) for
100,000 restricted shares of Amcor common stock valued at $200,000.  In
addition the Company received an additional 300,000 shares of Amcor common stock
from R Tucker and Associates (A related entity) valued at $600,000 in
cancellation of a note receivable owed to the Company from R Tucker and
Associates.  For a total initial investment of $1,400,000.  The impact of the
equity method on this investment for the period ending September 30, 2000 was
a reduction of $116,232 resulting from certain losses and amortization.

At September 30, 2000, the investment in Amcor as adjusted for the equity
method exceeded the Company's share of the underlying net assets by 616,062
which amount is being amortized on the straight line method over 10 years, with
an amortization of $17,113 for the first quarter of 2001 endig December 31,
2000.

NOTE 4: INVESTMENT IN SILICON RESOURCES

During the current fiscal year the Company acquired 1,900,452 shares in
Silicon Resources.  Shares acquired represent approximately an 35% ownership
in Silicon Resources.  Silicon Resources provides integrated circuit design
consulting services.  The Company has accounted for this investment under the
cost method because the Company has not been able to get the necessary
financial information to apply the equity method. Under the cost method,
income is recorded when dividends are received. The shares were obtained in the
cash-free exchanges described in Note 5 and 12.  The valuation of the shares in
the amount of $1,103,800 was obtained was an agreed-upon value as of the date
of the exchange based upon the market value of the Company's common stock on
the closing date.  The Company transferred this investment to its wholly owned
subsidiary in July 2000 (See Note 21).

NOTE 5: NON CASH TRANSACTIONS

As explained in Note 2, the original investment of 80,000 shares of China Net &
Technologies, Inc. (formerly Corporate Finance Company) in 1997 was obtained in
exchange for 1 million investment units. Each unit is composed of one share of
common stock and one warrant to purchase one share of common stock at a
specified price. The Company obtained an additional 80,000 shares of China Net
& Technologies, Inc. in 1999 from R Tucker and Associates in exchange for a
$200,000 reduction to a note receivable owed to the Company by R Tucker and
Associates.

In April 2000 the Company entered into an agreement with CN&T to
license technology to it on a case by case basis, where CN&T will engage in
joint ventures with Chinese Company's for the manufacture of and distribution
of electronic products and developing and maintaining web-sites for business-
to-business and business-to-consumers in China.  The Company licensed its "web-
modem" to CN&T to manufacture the product and distribute it in China.  As part
of this agreement the Company exchanged 400,000 shares valued at $1,000,000 or
$2.50 per share of restricted common stock for 2,000,000 shares of CN&T
restricted common stock.  In addition CN&T issued the Company 500,000 shares of
its restricted common stock to reimburse the Company for promotional services
valued at $320,667.

As explained in Note 3 the Company acquired 700,000 shares of Amcor in exchange
for stock and warrants and cancellation of a note receivable.

As explained in Note 4 and 12 the Company acquired 1,900,452 shares of Silicon
Resources valued at $1,103,800.  The Company agreed to exchange 50,000 shares
from the exercise of 50,000 Class B Warrants (unrestricted common stock) valued
at $250,000, cancel a note in the amount of $103,800 owed to the Company for an
equipment lease and a one time non-exclusive license fee with a value of
$750,000.

As explained in Note 7B, the Company issued 24,000 shares of common stock to
pay off $120,000 in accrued consulting fees.

As explained in Note 7C, the Company issued 300,000 shares of common stock to
pay off $1,500,000 in debt.

As explained in Note 7D, the Company exchanged 4,000 shares of common stock for
advertising. The common stock was valued at the agreed-upon price of $20,000,
or $5.00 per share.

As explained in note 7F the Company exchanged 4,000 shares from the exercise of
4000 class B warrants for advertising and promotional services. The common
stock was valued at the agreed-upon price of $20,000, or $5.00 per share.

As explained in note 7G the Company exchanged 300,000 shares from the exercise
of 300,000 Class A warrants and 50,000 shares from the exercise of 50,000 Class
B warrants for advertising and promotional services.  The common stock was
valued at the agreed-upon price of $500,000.

NOTE 6: LOAN PAYABLE TO CHINA NET & TECHNOLOGIES, INC.

China Net & Technologies, Inc. (formerly Corporate Finance Company) has loaned
the Company certain funds to cover operating expenses.  The balance due on the
loan is $2,291 and $17,150 as of December 31, 2000 and 1999 and is covered by
a non-interest bearing demand note.

NOTE 7:  CAPITAL FUNDING

In 1997 the Board of Directors authorized private offerings pursuant to
Regulation S, Section 3(b) and/or 4(2) of the Securities Act of 1933, as
amended.  In 1997 and 1998 the Company issued 1 million investment units to
China Net & Technologies, Inc. pursuant to Regulation D, Rule 504 and 500,000
investment units to R Tucker and Associates, Inc. and Sundance Design, Inc.
pursuant to Regulation A.  During fiscal year 2000, October 1, 1999 to
September 30, 2000 the Company's common stock commenced trading on the Over-
the-Counter Bulletin Board (TENS).  The following summarizes the various stocks
and warrant transactions as reported in the accompanying Statement of Changes
in Stockholders' Equity for periods October 1, 1998 and 1999, through September
30, 1999 and 2000 and October 1, 2000 through December 31, 2000.

        Note A - 35,000 shares of common stock were sold for $175,000.  The
        Company  received $25,000 in cash and promissory notes in the amount of
        $155,000.   One of the promissory notes received was for $50,000 and
        R Tucker & Associates was 800:     the payee (see note E).

	Note B - 24,000 shares of common stock were issued for $120,000 to pay off
accrued consulting fees.

	Note C - 300,000 shares of common stock were issued for $1,500,000 to pay off
the convertible note, which was issued in exchange for fixed assets of $172,948
and Research & Development expenses of $1,327,052.

	Note D - 4,000 shares of common stock were issued for $20,000 in exchange for
advertising.

	Note E - 137,000 shares of common stock were issued for $685,000 and 88,000
Class A warrants exercised in exchange for a $765,200 promissory note, secured
by 200,000 shares of common stock. The $765,200 note included $50,000 resulting
from the cancellation of a $50,000 note previously issued by R Tucker &
Associates to an unrelated party in an unrelated transaction.

	Note F - 4,000 Class B warrants were exercised for $20,000 in exchange for
advertising and promotional services in accordance with a contract for
advertising that expired on March 31, 2000.

	Note G - 300,000 Class A warrants and 50,000 Class B warrants were exercised
for $500,000 in exchange for advertising and promotional services for the
years ending September 30, 2000 and 2001.

	Note H - 15,000 Class B warrants were exercised for $75,000 in exchange for
promotional services performed for China Net & Technologies, Inc. (a related
entity) over 6 months commencing October 11, 1999 through April 10, 2000.

	Note I - 20,000 Class A warrants were exercised for $20,000 in exchange for
advertising services to be performed over three months commencing October 28,
1999 through January 24, 2000.

	Note J - 35,000 Class A warrants were exercised for $28,000 in exchange for
advertising services to be performed over six months commencing October 29,
1999 through April 29, 2000.

	Note K - 5,000 Class A warrants were exercised for cash at $.80 per share.
The cash from these warrants was deposited into the Company's checking account.

	Note L - 1,000 Class A warrants were exercised for cash at $.80 per share.
The cash from these warrants was deposited into the Company's checking account.

	Note M - 1,000 Class A warrants were exercised for cash at $.80 per share.
The cash from these warrants was deposited into the Company's checking account.

	Note N - 10,000 Class A warrants were exercised for $8,000 in exchange for
consulting services.

	Note O - 50,000 Class A warrants were exercised for $50,000 in exchange for a
partial payment owed to China Net & Technologies, Inc. for accrued consulting
fees.

	Note P  - 13,000 Class A warrants were exercised for $13,000 in exchange for a
partial payment owed to China Net & Technologies, Inc. for accrued consulting
fees.

                 Note Q - 60,000 restricted shares were issued in exchange for
consulting services to be performed over 30 days and valued at $60,000.

	Note R - 25,000 Class B warrants were exercised for $122,500 in exchange for
consulting services performed for China Net & Technologies, Inc. (a related
entity) to be performed over three months

	Note S - 20,000 Class A warrants were exercised for an aggregate value of
$35,200. The cash from these warrants was deposited into the Company's checking
account.

                Note T - 100,000 Class B warrants were exercised and 200,000
 shares were issued for $600,000 in exchange for 300,000 shares of Amcor's
 common stock.

	Note U - 50,000 Class B warrants were exercised for $250,000, a note in the
amount of $103,800 owed to the Company for an equipment lease was canceled, and
a one time non-exclusive license fee with a value of $750,000 was exchanged for
1,900,452 shares of Silicon Resources (See Note 4).

	Note V - 253,960 Class A warrants were exercised for $200,000 in exchange
for 100,000 shares of Amcor.

	Note W - 100,000 Class A warrants were exercised for $80,000 in exchange for
services performed for China Net & Technologies, Inc. (a related entity) to
be performed over the next year.

	Note X - 1,000,000 shares of the Company's common stock was contributed to
the Company, canceled, and returned to the Company's authorized but unissued
shares.

	Note Y - 340,000 restricted shares valued at $34,000 were issued in exchange
for services performed for China Net & Technologies, Inc. (a related entity).

	Note Z - 100,000 Class B warrants were exercised to a related party for cash
at $4.50 per share. The cash from these warrants was deposited into the
Company's checking account.

	Note AA -  400,000 shares of common stock were exchanged for 2,000,000
restricted shares of common stock in China Net & Technologies, Inc.

	Note AB - 500,000 shares of common stock were exchanged for all the issued
and outstanding common stock of Master Financial, Inc.

	Note AC - 10,000 shares were issued to a chip designer as a signing bonus.

	Note AD - 820,000 shares were issued to officer's and directors in exchange
for promissory notes equaling $82,000.

	Note AE - 2,600,000 shares were issued in exchange for 875,000 shares of
Whisk.co.uk, Limited, common stock.

NOTE 8:  STOCK OPTION PLANS

The Company has a stock option plan pursuant to Section 422A of the Internal
Revenue Code. The plan has yet to be defined other than the reserving of
500,000 shares of common stock for such a plan.

The Company has also adopted a non-incentive stock option plan. This plan
grants options that can be exercised at a specified price. The Company has
resolved that 800,000 shares of common stock be reserved for this plan. On
April 30, 1998 the Company granted the options to purchase 250,000 shares at 50
cents per share (the same as the then current market price) to the majority and
controlling shareholders and an independent consultant. During the year ended
September 30, 1999 the Company revoked 50,000 shares, leaving 200,000 options
still outstanding. These options expire December 1, 2002.

On October 26, 1999, the Company granted options to purchase 120,000 additional
shares at $1.25 per share (the same as the then current market price) to the
majority and controlling shareholders.  On July 28, 2000, the Company granted
options to purchase 160,000 additional shares at $1.00 per share (the same as
the then current market price) to four directors of the Company.

NOTE 9: WARRANTS

As part of its funding activities, the Company has issued warrants for the
purchase of common stock. Additional warrants may be issued in the future
during additional offerings.  As of September 30, 2000, the following warrants
were outstanding:

	Class B: one warrant can purchase one common share

        R Tucker and Associates - 21,000 warrants at $4.50 per share
        George N. Haddad        - 35,000 warrants at $4.50 per share

The warrants expire on May 31, 2002.  The Company has the right to call the
unexercised Class B Warrants before their expiration date at a price of 10
cents per warrant provided the bid price for the Company's common stock for
10 consecutive trading days is $5.50 or more.

NOTE 10: RISKS AND UNCERTAINTIES

As discussed in "Organization and Summary of Significant Accounting
Policies", the Company was in the development stage from its inception on
October 23, 1997 to September 30, 1999. Realization of a major portion of the
assets is dependent upon the Company's ability to meet its future financing
requirements, and the success of capital funding and future operations. These
factors raise substantial doubt about the Company's ability to continue as a
going concern.

The Company has commenced a plan of strict limits on and control over costs,
expenses, compensation and capital expenditures.

The investments in marketable securities are held available-for-sale. As of
December 31, 2000 the account balance is $40,789.  The investments in
marketable securities are subject to the hazards of trading equities on the
open market. The account will experience growth and loss in varying amounts
depending on the performance of the securities traded.  All of the Company's
$40,789 interest in the account is at risk and subject to loss.

NOTE 11: RELATED PARTY TRANSACTIONS

A director of the Company is also a director and major shareholder of R Tucker
& Associates, Amcor Financial Corp. and China Net & Technologies, Inc.
(formerly Corporate Finance Company). Transactions between the Company and
these entities above have been described in Notes 2 and  3.

In November 1997 the Company issued 1,000,000 investment units to a related
party in exchange for 80,000 shares of CN & T's common stock (See Note 2).

In December 1998 R Tucker & Associates, a related party, issued a promissory
note for $765,200 to the Company in exchange for 137,000 shares of common stock
and 88,000 shares from the exerciase of Class A warrants and the cancellation
of a $50,000 note previously issued (See note 7E).

The accrued consulting fee as of December 31, 1999 is payable to China Net &
Technologies, Inc. for services performed by Dennis Kaliher and Ronald S.
Tucker.  This liability was canceled during the current fiscal year in exchange
for 63,000 shares of common stock (See note 7O&P) valued at $63,000, a cash
payment of $66,800 and a $10,200 reduction in a note receivable from an
affiliated company (See note 3).

In March 1999 the Company reduced a Note Receivable from R. Tucker and
Associates in exchange for 80,000 shares of common stock in China Net &
Technologies, Inc. valued at $200,000 (See note 2). In December 1999 the
Company issued China Net & Technologies, Inc. 100,000 shares of common stock
valued at $80,000 for promotional services. 	In March 2000 China Net &
Technologies, Inc. issued to the Company 500,000 shares of its restricted
common stock to reimburse the Company for promotional services, and in April
2000 the Company exchanged 400,000 shares of restricted common stock for
2,000,000 shares of China Net & Technologies, Inc. restricted common stock.
The Company also entered into a license agreement with China Net &
Technologies, Inc. to manufacture and distribute its "web-modem" in China.
The license was valued at $200,000.  $100,000 was paid on signing the license
agreement and the balance is due when engineering drawings are delivered for
manufacturing the product.

In December 1999 the Company exchanged shares with Amcor, a related entity,
whose President and a Director is also the President and a Director of the
Company (See note 3).  The Company exchanged 300,000 shares of its common
stock for 300,000 shares of Amcor's common stock valued at $600,000.  	The
Company also exchanged 253,960 shares (the exercise of 253,960 Class A
Warrants) for 100,000 restricted shares of Amcor common stock valued at
$200,000.  In addition the Company received an additional 300,000 shares of
Amcor common stock from R Tucker and Associates (A related entity) valued at
$600,000 in cancellation of a note receivable owed to the Company from
R Tucker and Associates

The accrued consulting fee due by the Company as of December 31, 2000 is
payable to China Net & Technologies, Inc. for services performed by Ronald
S. Tucker valued at $75,000.

NOTE 12: INVESTMENT IN SILICON RESOURCES

On September 1, 1999 the Company began negotiations and entered into an
agreement with Silicon Resources, Inc. to purchase a portion of Silicon
Resources, Inc. a consulting business.  On November 30, 1999 the Company
entered into a modification agreement that was executed and completed during
the current fiscal year with Silicon Resources, Inc. modifying the agreement
entered into on September 1, 1999.  Under the terms of the modification
agreement, Silicon Resources and the Company entered into a non-exclusive
license agreement for the Company's technology with a value at the time the
agreement was entered into in the amount of $750,000, for which the Company
will receive Silicon Resources, Inc. common stock.  As of the date of this
report the value of the investment in Silicon Resources could not be determined
due to the lack of adequate financial information.  The Company, Ron Tucker,
president, and Silicon Resources, Inc. agreed to exchange 50,000 shares of its
unrestricted common stock, cancel the indebtedness owed to the Company by
Silicon Resources in the amount of $103,800 pursuant to an Equipment lease, and
the license fee in the amount of $750,000 for a total of 1,900,452 shares of
Silicon Resources restricted common stock (See note 4).

NOTE 13: EARNINGS (LOSS) PER SHARE

As of December 31, 2000 and 1999, the Company had 11,832,023 and 7,098,023
common shares outstanding, respectively, and no preferred shares outstanding.
The earnings (loss) per share amount is based on the weighted average number
of shares actually outstanding.  The number of shares used in the computation
for December 31, 2000 and 1999 was 9,825,356 and 7,237,063 shares
respectively.

NOTE 14: STOCK DIVIDEND

On August 2, 1999 the Board of Directors authorized a 10% stock dividend
payable to those investors who purchase the corporation's common stock in the
open market between August 2, 1999 and October 31, 1999, register the shares
in their name, and are the registered shareholder on July 31, 2000. The shares
to be distributed by August 31, 2000. On October 2, 1999 the Board of
Directors extended the date for purchasing common stock in the open market
from October 31, 1999 to December 31, 1999. On December 1, 1999 the Board of
Directors extended the date for purchasing common stock in the open market
from December 31, 1999 to January 31, 2000 and advanced the record date to
March 31, 2000 from July 31, 2000.

On June, July and August the Company distributed 58,047 shares of common stock
in connection with the 10% stock dividend that was authorized on August 2,
1999. As a result of the stock dividend, common stock was increased by $580,
additional paid in capital was increased by $74,266, and retained earnings was
decreased by $74,946.  All references in the accompanying consolidated
financial statements to the number of common shares and per-share amounts for
December 31, 1999 have been restated to reflect the stock dividend.

NOTE 15: PREPAID EXPENSES

As explained in Note 7F, the Company exercised 4,000 Class B warrants in
exchange for $20,000 in advertising and promotional services for the one year
period from April 1999 to March 2000.  Advertising and promotional services
charged to operations for 2000 and 1999 was $10,000 and $10,000, respectively.

As explained in Note 7G, the Company exercised 300,000 Class A warrants and
50,000 Class B warrants in exchange for $500,000 in advertising and
promotional services for the two year period starting October 1, 1999
(beginning of fiscal year 2000). Advertising and promotional services charged
to operations for fiscal years 2000 was $250,000 and $62,500 for the first
quarter of fiscal year 2001, leaving $187,500 as a prepaid expense as of
December 31, 2000.

NOTE 16: NOTE RECEIVABLE FOR COMMON STOCK

Also, in December 1998, the Company issued 137,000 shares of common stock and
88,000 Class A warrants were exercised in exchange for a $765,200 note
receivable from a related party.  In March 1999 of the prior year the note was
reduced by $200,000 in exchange for 80,000 shares of common stock in a related
party transaction.  The Company received 300,000 shares of Amcor
common stock from R Tucker and Associates valued at $600,000 (See note 5) and
reduced accrued consulting fees $10,200 from an affiliated company (See note
11).

In November 2000, the Company issued 820,000 shares of common stock in
exchange for 82,000 notes receivable from certain officers and directors.
The notes are reported in the stockholders' equity section.

NOTE 17: NAME CHANGE

In April 1999 of the current year the Board of Directors voted to change the
Company's name from Tensleep Design, Inc. to Tensleep Technologies, Inc. After
September 30, 1999, the Board of Directors voted to change the Company's name
to Tensleep.com, Inc.  The purpose of changing the name was to reflect the
focus of the Company in developing Internet Technologies and E-Commerce Portal
sites.  At the annual meeting of Shareholders held in July 2000 the
shareholders proposed and approved a change in the Company's name to "Tensleep
Corporation".

NOTE 18: ROYALTY INCOME

In April 2000 the Company learned that pursuant to a license agreement entered
into by and between Zilog and Sundance Design, Inc., which was purchased by
the Company, from Sundance Design, Inc. a nonaffiliate, that the Company was
entitled to royalties in the amount of $72,320.  These royalities accumulated
from 1997 through March 2000.  Royalty Income for April 2000 through September
2000 amounted to $49,857.  The Company collected $122,177 during the the
fiscal year ending September 30, 2000 and accrued a payment of $19,748 as of
December 31, 2000 which was collected in Jamuary 2001.

Sundance Design, Inc., is a Company owned by Dennis Kaliher and was the
previous owner of the technology purchased by the Company.

NOTE 19: LICENSE FEES

In November 1999 the Company provided Silicon Resources, Inc., an unaffiliated
company, a non-exclusive license to use the Company's technology valued at
$750,000 (See note 5 and 12).

In March 2000 the Company granted a license to manufacture and distribute its
"web-modem" in China to China Net & Technologies, Inc., an affiliate.  The
license was valued at $200,000, of which $100,000 was received on signing the
license agreement and the balance is due during the next operating period when
engineering drawings are delivered for manufacturing the product.

NOTE 20: ACQUISITION OF MASTER FINANCIAL GROUP, INC.

On March 31, 2000 the Company acquired 100% of Master Financial Group, Inc.
for 500,000 shares of the Company's common stock valued at $2.50 per share in
a business combination accounted for as a purchase.  Master Financial Group,
Inc. is an Internet financial services company.  The results of operations of
Master Financial Group, Inc. is included in the accompanying consolidated
financial statements since the date of acquisition.  The total cost of the
acquisition was $1,250,000 which exceeded the fair value of the net assets of
Master Financial Group, Inc. by $1,087,352.  The excess is reported as
goodwill in the accompanying consolidated balance sheet and is being amortized
on the straight line method over 10 years.  An additional 200,000 shares of
the Company's common stock may be issued to Master Financial Group, Inc. based
on an earnings contingency.   If the net earnings are more than $500,000 but
less than $1,000,000 a portion of the 200,000 shares will be delivered.

The Company was unable to obtain adequate detailed books and records and
supporting data from the subsidiary Master Financial Group, Inc.  Therefore,
the Company was not able to satisfy itself about the amount that goodwill is
recorded at in the accompanying consolidated balance sheet at December 31,
2000 (stated at $337,352) and the amount of goodwill amortization expense
(stated at $25,302).

Subsequent to year-end the Company evaluated the recoverability or this
investment.  Due to change in market conditions and inadequate performance the
Company has written down goodwill $750,000 as of the year ending September 30,
2000.  The write-off of goodwill is included in the September 30, 2000
consolidated statement of operations as asset impairment.

The Company is owed $430,760 from the prior owner of Master Financial.  This
amount is reported  on the consolidated balance sheet as an other receivable.
In February 2001 Master Financial Group, Inc., commenced legal action to
collect the amount from the former officer and director of Master Finanical
Group, Inc.

NOTE 21: INVESTMENT IN TENSLEEP TECHNOLOGIES, INC.

In July 2000 the Company exchanged net assets valued at $1,199,631 for
5,000,000 shares of Tensleep Technologies, Inc., a wholly owned subsidiary
under common control in a business combination accounted for as a pooling.
Tensleep Technologies, Inc., will complete the development of a motor
controller, a non-Internet product and focus on bringing-to-market penetration
through strategic relationships, joint ventures and international marketing
alliances

NOTE 22: INCOME TAXES

The Company has not generated any taxable income and therefore a provision for
income taxes is not necessary. Similarly, a provision for deferred taxes is not
necessary.  For income tax purposes, the Company had available, at September
30, 2000 and 1999, net operating loss ("NOL") carryforwards of approximately
$2,257,163 and $1,991,295 respectively, which will expire in various years
from 2018 through 2019.  A valuation allowance was provided in full against
the net deferred tax assets resulting from the losses because the utilization
of the NOL is dependent on future taxable profits.

NOTE 23: DUE FROM TENSLEEP APPLIANCE

The Company has loaned Tensleep Appliance, a related entity, certain funds to
cover start-up expenses. The balance due to the Company is $102,233 and $0 as
of December 31, 2000 and 1999 and is secured by 1,700,000 shares of Tensleep
Appliance stock.  When the loan is paid back by Tensleep Appliance there is an
agreement providing the opportunity for the Company to purchase the 1,700,000
shares of Tensleep Appliance stock for $100,000.

NOTE 24: WHISK.CO.COM, LIMITED

In December 2000 the Company formed a wholly owned subsidiary corporation,
Tensleep Europe, Inc., and completed the acquisition of a majority interest in
Whisk.co.uk, Limited, which is located in London.  The Company intends to
transfer its interest in Whisk.co.uk, Limited to Tensleep Europe.  The Company
has exchanged 2,600,000 shares of its common stock for an approximate 60%
interest in that Company valued at $.50 per share.




<PAGE>

                         CONSOLIDATED FINANCIAL STATEMENTS

      The consolidate financial statements have been prepared by Tensleep
Corporation, with out audit, pursuant to the rules and regulations of the
Securities and Exchange Commission.  The Company believes that the disclosures
are adequate to make the information presented not misleading when read with
the Company's audited financial statements for the rears ended September 30,
2000 and 1999.  The financial information presented reflects all adjustments,
consisting only of normal recurring adjustments, which are, in the opinion of
management necessary for a fair statement of the results from the periods
presented.



                                 TENSLEEP CORPORATION
Schedule 1
                             CONSOLIDATED BALANCE SHEETS

                                  DECEMBER 31, 2000


                                         ASSETS
<TABLE>
<CAPTION>
                                      Parent    Subsidiary  Subsidiary
                                     Tensleep    Tensleep     Master   Consolidating    Consolidated
                                   Corporation  Technology  Financial     Entries        Totals
                                   -----------  ----------  ---------- --------------   ------------
<S>                                <C>          <C>         <C>        <C>              <C>
CURRENT ASSETS

  Cash                             $   153,552  $    4,929  $   39,381 $           -    $    197,862
  Marketable Securities
           (See note 1)                      -           -      40,789             -          40,789
  Prepaid Expenses
           (See note 15)               187,500           -           -             -         187,500
  Other Receivable
           (See note 20)                     -           -     430,760             -         430,760
  Due From Tensleep Appliance
           (See note 23)               102,233           -           -             -         102,233
  License Fee Receivable
           (See note 19)               100,000           -           -             -         100,000
  Royalty Receivable
           (See note 18)                19,748           -           -             -          19,748
  Due From Tensleep Technology         103,805           -           -      (103,805)              -
  Loan Receivable                       36,000           -           -             -          36,000
                                   -----------  ----------  ---------- --------------   ------------
          Total Current Assets         702,838       4,929     510,930      (103,805)      1,114,892
                                   -----------  ----------  ---------- --------------   ------------
PROPERTY AND EQUIPMENT

  Machines & Equipment                       -     102,593       3,743             -         106,336
  Software                                   -     172,371      14,357             -         186,728
                                   -----------  ----------  ---------- --------------   ------------
                                             -     274,964      18,100             -         293,064
  Less accumulated depreciation
      and amortization                       -     251,520       3,089             -         254,609
                                   -----------  ----------  ---------- --------------   ------------
     Net Property and Equipment              -      23,444      15,011             -          38,455
                                   -----------  ----------  ---------- --------------   ------------

OTHER ASSETS

  Goodwill - net of accumulated
    amorization of $25,302                   -           -           -       312,050         312,050
  Investment in China Net &
    Technologies, Inc. (See note 2)  1,656,508           -           -             -       1,656,508
  Investment in Amcor Financial
    Corp. (See note 3)               1,266,654           -           -             -       1,266,654
  Investment in Master Financial
    Group, Inc. (See note 20)          500,000           -           -      (500,000)              -
  Investment in Silicon
    Resources (See note 4)                   -   1,103,800           -             -       1,103,800
  Investment in Tensleep
    Technologies (See note 21)       1,199,632           -           -     (1,199,632)             -
  Investment in Whisk.co.uk
                 (See note 22)       1,300,000           -           -              -      1,300,000
                                   -----------  ----------  ---------- --------------   ------------
      Total Other Assets             5,922,794   1,103,800           -     (1,387,582)     5,639,012
                                   -----------  ----------  ---------- --------------   ------------

TOTAL ASSETS                       $ 6,625,632  $1,132,173  $  525,941 $   (1,491,387)  $  6,792,359
                                   ===========  ==========  ========== ===============  ============


</TABLE>
<PAGE>

                                 TENSLEEP CORPORATION

                              CONSOLIDATED BALANCE SHEETS
Schedule 1
                                   DECEMBER 31, 2000

<TABLE>
<CAPTION>
                         LIABILITIES AND STOCKHOLDERS' EQUITY


                                     Parent     Subsidiary  Subsidiary
                                    Tensleep    Tensleep     Master     Consolidating   Consolidated
                                   Corporation  Technology   Financial     Entries        Totals
                                   -----------  ----------  ----------  --------------  ------------
<S>                                <C>          <C>         <C>         <C>             <C>
CURRENT LIABILITIES
     Accounts Payable              $       773  $      268  $        -  $            -  $      1,041
     Loan payable to China               2,291           -           -               -         2,291
          Net & Technologies,
          Inc. (See note 6)
     Accrued Consulting Fees            75,000           -           -               -        75,000
     Due to Tensleep Corp.                   -     103,805           -        (103,805)            -
                                   -----------  ----------  ----------  --------------  ------------
     Total Current LiabilitiES          78,064     104,073           -        (103,805)       78,332
                                   -----------  ----------  ----------  --------------  ------------

TOTAL LIABILITIES                       78,064     104,073           -        (103,805)       78,332
                                   -----------  ----------  ----------  --------------  ------------

                                 STOCKHOLDERS' EQUITY

     Preferred stock                         -           -           -               -             -

     Common stock
          Tensleep Corporation         118,321           -           -               -       118,321
          Tensleep Technology                -      50,000           -         (50,000)            -
          Master Financial                   -           -      10,000         (10,000)            -

     Treasury stock                          -           -           -               -             -

     Additional paid-in capital
          Tensleep Corporation       9,286,000           -           -               -     9,286,000
          Tensleep Technology                -   1,149,631           -      (1,149,631)            -
          Master Financial                   -           -       8,100          (8,100)            -

     Allowance for Unrealized
          Gains (Losses) Marketable
          Equity Securities                  -           -     (48,055)              -       (48,055)

     Retained Earnings              (2,774,753)   (171,531)    555,896        (169,851)   (2,560,239)

     Notes for purchase of stock       (82,000)          -           -               -       (82,000)
                                   -----------  ----------  ----------  --------------  ------------

TOTAL STOCKHOLDERS' EQUITY           6,547,568   1,028,100     525,941      (1,387,582)    6,714,027
                                   -----------  ----------  ----------  --------------  ------------

TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY          $6,625,632  $1,132,173  $  525,941  $  ( 1,491,387) $  6,792,359
                                    ==========  ==========  ==========  =============== ============

</TABLE>





The accompanying notes are an integral part of these statements.

<PAGE>

                                   TENSLEEP CORPORATION
Schedule 2
                           CONSOLIDATED STATEMENT OF OPERATIONS

                        FOR THE THREE MONTHS ENDED DECEMBER 31, 2000

<TABLE>
<CAPTION>

                                      Parent    Subsidiary  Subsidiary
                                     Tensleep    Tensleep     Master    Consolidating   Consolidated
                                   Corporation  Technology  Financial      Entries         Totals
                                   -----------  ----------  ----------  --------------  ------------
<S>                                <C>          <C>         <C>         <C>             <C>
REVENUES
    Memberships                    $         -  $        -  $    4,601  $            -  $      4,601
    Design Fees                              -         441           -               -           441
    Stock Promotion                          -           -      87,955               -        87,955
    Royalty Income (See note 18)        19,748           -           -               -        19,748
    Other Income                             -         117           -               -           117
                                   -----------  ----------  ----------  --------------  ------------
                                        19,748         558      92,556               -       112,862
                                   -----------  ----------  ----------  --------------  ------------
EXPENSES

    Advertising                            500           -           -               -           500
    Automobile expense                     288         752           -               -         1,040
    Bank fees & brokerage charges            9           -         253               -           262
    Consulting expense                 149,500           -           -               -       149,500
    Depreciation and Amortization            -      22,865       1,030           8,434        32,238
    Dues and subscriptions                  15           -           -               -            15
    Interest                               176           -           -               -           176
    Other expenses                       1,713       1,228       2,296               -         5,237
    Office supplies                          -         188           -               -           188
    Outside services                     1,719       1,285       8,152               -        11,156
    Payroll & Payroll Taxes                  -       4,717           -               -         4,717
    Postage & delivery                     269          96           -               -           365
    Professional fees                    1,550           -           -               -         1,550
    Rent                                     -         540           -               -           540
    Repairs                                  -         526           -               -           526
    Supplies                             1,014       1,828           -               -         2,842
    Telephone                            1,020         329           -               -         1,349
    Travel & Entertainment               6,941           -       3,399               -        10,340
                                   -----------  ----------  ----------  --------------  ------------
                                       164,714      34,354      15,130           8,434       222,541
                                   -----------  ----------  ----------  --------------  ------------
INCOME (LOSS) FROM OPERATIONS         (144,966)   ( 33,796)     77,426         ( 8,434)     (109,679)
                                   -----------  ----------  ----------  --------------  ------------
OTHER INCOME (EXPENSE)
    Interest Income                      2,369           -       1,762               -         4,131
    Income (loss) on equity
                 investment            (32,739)          -           -               -       (32,739)
    Asset Impairment
                 (See note 20)               -           -           -               -             -
    Realized gain on marketable
         securities (See note 1)             -           -     ( 7,478)              -       ( 7,478)
                                   -----------  ----------  ----------  --------------  ------------
                                      ( 30,370)          -     ( 5,716)              -      ( 36,086)
                                   -----------  ----------  ----------  --------------  ------------
PROVISION FOR INCOME TAX - NOTE 22           -           -           -               -             -
                                   -----------  ----------  ----------  --------------  ------------
NET INCOME (LOSS)                     (175,336)   ( 33,796)     71,710         ( 8,434)     (145,765)
                                   ===========  ==========  ==========  ==============  ============
</TABLE>



The accompanying notes are an integral part of these statements.

<PAGE>

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPRERATIONS.

OVERVIEW

     The Company is an Integrated Internet company that is building an
economic and financial foundation on which to establish an
international company that provides specialized services and develops,
manufactures and distributes specialized Internet appliances and other
electronic products and their embedded modular systems contained within
those appliances and/or electronic products.

     The Company's Strategic Plan is to build its business through a
combination of internal business development and strategic acquisitions and
affiliations.  The Company is consolidating its current and to be acquired
subsidiaries and affiliates into groups relating to the market sector of
each subsidiary and affiliate.  Individually, each company within each group
will continue to develop its own operations and build its own revenue
streams, but when possible each will be merged, combined or consolidated.

     The implementation of the Company's operational plan for the next
twelve months, requires limited additional personnel and financial
resources.  The Company has and will continue to engage one or more
independent third party organizations or affiliates to provide the quality
and number of personnel and services required for the development of and to
upgrade the Company's products and services.  The Company, with limited
financial resources, will seek third party service providers willing to
provide services in exchanged for shares of the Company's common stock
and/or other non-cash consideration.  Other non cash consideration could
include licenses to use or sell the Company's intellectual property.  Any
shares issued in exchange for services will be pursuant to Section 4(2) of
the Securities Act of 1933, as amended, and will be subject to Rule 144.

RISKS

     The factors, which follow, make the Company's Plan of Operation for
the next twelve months risky.

Market Evaluation

     The Company is in a continual process of identifying and evaluating
new niche markets, but there is no assurance that the Company will correctly
identify or evaluate any niche market.  Even if the Company should correctly
identify and evaluate new niche markets, there is no assurance the Company
can develop any products or services that would be accepted in those markets
or that the products or services would be developed in a timely manner.

     In order to reduce this risk the Company's plans (1) to develop
products with embedded standard modular systems capable of being used in
products that cross market segments, (2) to develop and provide
manufacturing and distribution to independent third party companies
developing their own niche market products, and (3) to acquire all or part
of businesses that have developed and are distributing products in
identified markets.

Dependence upon new products

     The communications and Internet markets are characterized by rapid
technological change, evolving industry standards, changes in customer needs
and frequent new product introductions, and are therefore highly dependent
upon timely product and production innovation.  In particular, data
communication products are subject to continuous changes in the fabrication
process.  Each change in technology and the fabrication process may require
a concomitant change in design and developed of the Company's products.  The
Company may not have the resources to make those changes.

     The Company's future success is dependent in part upon its ability to
anticipate changes in technology and industry standards and to develop
successfully and introduce new and enhanced products on a timely basis.  The
Company will be required to replace declining revenues from older products
with new products. To reduce this risk the Company is developing modular
designed sub-products, which may reduce the cost of development and time to
market.

     There is no assurance the Company will be able to introduce new
products on a timely basis.  There is no assurance the Company can produce
the new or old products or services, nor achieve any significant degree of
market acceptance for them, nor sustain acceptance for any significant
period.  Failure to produce or achieve or sustain market acceptance of its
products or services would affect the Company's operating results.

Competition

     The markets in which the Company operates or will attempt to operate
may be characterized by competition among a number of small and potentially
large companies that are well financed with a long history.  They will have
substantial advantages in terms of breadth of technology, sales, marketing,
resources and support capability.

Ability to manage a rapidly changing business

     The Company is anticipating significant growth, which will place a
substantial strain on its operational, administrative and financial
resources.  The Company's officers have experience in managing companies as
large and as rapidly changing as is anticipated. However, there is no
assurance that the experience will prove beneficial to the new situation
posed by the Company's challenges.  The Company's ability to manage any
future changes effectively will require it to have sufficient funds to
attract, train, motivate and manage its employees effectively.


Dependence on key personnel

     The value of the Company lies in the experience and ability of the
management of the Company and its affiliates to identify and develop its
technology, products and services.  If the Company and its affiliates severe
their relationship, the effect would have a serious effect on the Company's
operations.

     The Company recognizes that some people believe that the high
technology industry, in which the Company plans to compete, is one where
significant developments are in new technology and "expertise" is a quantity
that dates and loses value quickly.

     The Company's success depends greatly on the continued contributions
of the Company's affiliates.   The loss of the Company's affiliates could
have a material adverse impact on the Company's operating results.

     The Company believes its future success will depend in large part upon
its ability to attract and retain additional highly skilled management,
technical, marketing, research and development, product development and
operations personnel.  Competition for such personnel is intense, and no
assurance can be given that the Company will be successful in attracting and
retaining such personnel.

Lack of Revenues

     The Company has not established a consistent source of revenues.  The
Company has experience revenues in the form of single payment License fees
and royalties, but there is no assurance the Company will be able to
Licences its technology in the future or that the Royalties will continue at
their present level.  There is also no assurance that the Company can earn
revenues beyond the current minimal level for the next twelve months.

Lack of Funds

     The Company to market its products and services effectively will
require significant cash to cover specific marketing costs, costs of
prototypes and technical and specific design services to be done for
potential customers.  No assurance can be given that the Company has or can
obtain sufficient funds to enable it to conduct an adequate marketing and
sales program.

                          PLAN OF OPERATION

     The Company's business and operational plan for the next twelve months
is directed toward developing or acquiring a consistent source of revenues,
arranging for the manufacturing and distribution of its products in China,
and distributing its products and services in Europe.

Operations

     The Company is currently operating and will continue to operate with
its available funds.  The current burn rate for the company is approximately
$7,500 to $10,000 per month.  The Company is now and will continue to limit
its expenses and not incur debt.  The Company's expenses are limited to
phone bills, limited travel, office supplies, accounting services, repairs
and maintenance, outside services and other small but ordinary business
expenses.

     The Company believes that it can continue operating over the next
twelve months.  It can do so by continuing the current level of expenditure
and not increasing the expenditure of cash without having the cash on hand.
The Company during the next twelve months, at this level of expenditure,
believes that it will be able to complete its plan of operation.

     The Company, as part of its operational plan, is consolidating its
current subsidiaries and affiliates into groups relating to the their market
sector: the Appliance Technology Group, Internet Integration Group, and
Financial Services Group.

Appliance Technology Group

     Tensleep Technologies, a wholly owned subsidiary, was recently
organized and is chartered with continuing to focus on Tensleep's original
business and bringing-to-market penetration of the Internet appliances and
developed integrated systems through strategic relationships, joint
ventures, and international marketing alliances.  Tensleep has transferred
its interest in its computer design software and hardware, and ownership
interest in Silicon Resources to Tensleep Technologies.  Tensleep
Technologies has completed the development and testing of a motor
controller, a non-Internet product.

     Appliance Partners, an affiliate, provides the technical engineering
and design services to Tensleep in developing and prototyping Tensleep's
Internet-related products. These products, CyberServers, are special-purpose
modular appliance servers. This product line will be expanded to include the
iCamera Cradle, a digital camera server, the iController, a home controller,
and the iModule. Appliance Partners  will continue to engineer and design
technologies with unique applications in the Internet Access Device (IAD)
market, consumer and small office home office (SOHO) appliance market.

     The iModule is now part of the CyberServer product line and Tensleep
is prototyping two additional applications for its thin-Internet servers-alone
profit center and allow that business to focus on its own
business and corporate development.

     The transfer of the CyberServer business allows the Company to focus
on identifying and developing strategic relationships with emerging growth
companies in related businesses that will aid the Company in its business
and corporate development. Tensleep Technologies' business plan is to
acquire new product technology, establish manufacturing relationships and to
distribute products to consumers and original equipment manufacturers.
Appliance Partners' business plan is to develop a series of special purpose
computers or servers, referred to as appliances and/or thin Internet
servers.

     Tensleep believes that continued implementation of its general plan of
operation requires few additional personnel, if any, for the development and
upgrading of its various products. Tensleep will also continue to engage one
or more independent third-party organizations to provide the quality and
number of personnel and services required for the development of its
Internet products and to upgrade its other developed products. The
development and upgrading that are provided by these organizations will be
supervised by Tensleep's vice president, Dennis Kaliher. In addition,
Tensleep will also seek strategic relationships with independent
third-party organizations to participate in the development and upgrading
services.

     China Net, an affiliate, is a high-technology and Internet-related
company that specializes in developing strategic relationships with
emerging-growth, high-technology companies in China. China Net has acquired
a license to manufacture and distribute Tensleep's iModule in China and is
seeking Chinese companies to manufacture and distribute that product.

     Silicon Resources, an affiliate, is a chip design consulting firm that
specializes in designing special features in micro-computer chips.

Internet Integration Group

     Tensleep, in November 2000, formed Tensleep Europe, Inc., a wholly
owned subsidiary, to focus on Internet company acquisition, integration, and
growth acceleration. Tensleep Europe will not confine its activities solely
to the North American market, where it considers the current market for
undervalued opportunities to be extensively mined, but it will look
increasingly to the international market for the opportunity to add
stockholder value and go-to-market services to Internet service and
infrastructure companies. These emerging companies will be development-stage
companies that have a proven e-business model or Internet infrastructure but
lack the kind of services and the level of resources that Tensleep can
provide or help them obtain.

     In December 2000 Tensleep completed the acquisition of a majority
interest in Whisk.co.uk, Limited, a unique Internet vertical community and
business-to-business e-commerce site in the hotel and restaurant industry.
Tensleep Europe expects to confirm the appointment of a board of advisors
consisting of several individuals experienced in the Internet industry
environment and to open operational offices in London in early 2001.

Financial Services Group

     The focus of the financial services group is to develop strategic
relationships with financial service providers.

     The acquisition of Master Financial Group (Master Financial) in April
2000, as a wholly owned subsidiary, provided Tensleep with a strong revenue
source with profits during Tensleep's last fiscal year.  Master Financial
provides financial services to small public growth companies.  Services
include distribution of financial information on small public growth
companies through the Internet and investment relations web sites that
disseminate information about public companies through Internet newsletters.
Master Financial plans to add to its customer base by expanding the range of
online services for North American companies.  Tensleep plans to reach
investor groups, develop new market opportunities, in both Southeast Asia
and Europe, and complement these online services with the acquisition or
development of a leading, independent investor relations company in Europe.

     Besides being responsible for developing an investor's financial
informational web site for Tensleep at www.otcbbworld.com, Master Financial
publishes www.analystgroup.com and provides comprehensive services to help
small high-tech businesses grow.

     Amcor, an affiliate, is a specialty finance company providing merchant
banking services in the form of real estate financing and financing of
emerging growth companies.

Master Financial

     The Company is currently reorganizing and restructuring Master
Financial Group, Inc., which was acquired from James Y. Wang and his wife.
After its acquisition, James Wang continued to serve as the President and a
director of Master Financial.  From May 2000 to present several disputes
arose between Tensleep management and Mr. Wang regarding Mr. Wang's
management of Master Financial.  On or about November 3, 2000, Mr. Wang was
removed as an officer and director of Master Financial Group and was
requested to deliver all the assets, including ccash of over $300,000, and
books and records of Master Financial to the newly elected management of
Master Financial.  Mr. Wang has failed to do so, and in February, 2001
Master financial filed a legal action against Mr. Wang to recover the
assets and other property of Master Financial.

Research And Development

     The Company, Appliance Partners, within the next twelve months plans
to  develop prototypes of the iCamera Cradle and iController.

Purchase And Sale of Equipment

     The Company does not expect to purchase or sale equipment during the
next 12 months.

STRATEGIC RELATIONSHIPS AND NEW TECHNOLOGY

     The operational plan provides for seeking strategic relationship with
other companies in consumer internet and communications consumer products
and the acquisition of new products.  The development of strategic
relationship and acquisition of new technologies is to exploit and enhance
the Company's business.  Management intends to acquire other companies and
acquire technology by exchanging shares of its common stock or, in limited
cases, when sufficient funds are on hand to use cash.

YEAR 2000 ISSUES

     The Company failed to have a material effect from any Year 2000
issues.

CREDIT FACILITY

     The management does not have a credit facility.

DISCUSSION AND ANALYSIS

     The following discussion and analysis should be read in conjunction
with the Company's consolidated financial statements and notes there to
included elsewhere in this quarterly report on Form 10-QSB. Except for
the historical information contained herein, the following discussion
contains certain forward-looking statements that involve risks and
uncertainties, such as statements of the Company's plans, objectives,
expectations and intentions. The cautionary statements made in this
quarterly report on Form 10-QSB should be read as being applicable to
all related forward-looking statements wherever they appear herein.
See "Special Note Regarding Forward-Looking Statements." The Company's
actual results may differ materially from the results discussed in the
forward-looking statements.

NET REVENUES.

      Net revenues for the three months ended December 31, 2000 and 1999
were $112,862 and $750,705, respectfully, a decrease of $637,843 or
approximately 565%. The decrease in net sales was primarily a result of
the single sale of a license to us the Company's technology in December
1999 and the lack of a license sale in the first quarter of the current
year.  The Company's revenues for the first quarter of the present year
were from membership fees and stock promotion fees received from Master
Financial and Royalties received by the Company from Zilog Corporation.

EXPENSES.

      The Company's expenses decreased from $276,561 for the first quarter
ending December 31, 1999 to $222,541 for the same period for the current
year. The decrease was approximately 20% of the prior year.  Consulting
expenses was the largest expense in the first period ending December 31,
2000 and 1999, in the amount of $149,500 and $176,333, respectively, of
which $62,500 represent a prepaid expense for both periods.  The
difference between the two periods represented a decrease of $26,833 or
approximately 15%.  The expenses for the period ending December 31, 2000
represent those incurred by two subsidiaries and the parent company
verses the parent company only for the three months ending December 31,
2000.

OTHER INCOME AND EXPENSES.

      There was no Other Income or Other Expenses incurred in the three
months ending December 31, 1999.  In the three months ending December 31,
2000 the Company received Interest Income of $4,131 and suffered a loss
of $32,739 on equity investments and a net realized loss on marketable
securities of $7,478.

NET LOSS.

      The Company suffered a net loss of $145,765 for the three months
ended December 31, 2000 or ($0.01) per share as compared to net income
of $474,144 for the same period for the prior year or $0.07 per share.

      The Company for its fiscal year ending September 30, 2000
accounted for Net Income in the amount of $339,637 from Master Financial
Group, Inc., and $71,710 for the three months ending December 31, 2000.
Due the reorganization of Master Financial, the Company does not expect
to receive significant revenues or net income, if any, from Master
Financial during the Company's current fiscal year.

WORKING CAPITAL

      The Company's adjusted working capital increased from ($16,045) to
$418,300 for the first period ending December 31, 1999 and 2000.  The
adjusted working capital was determined by reducing the Current Assets by
the amount of Prepaid Expenses, $415,100 and $187,500, on December 31,
1999 and 2000, respectively.  The adjusted working capital for December
31, 2000 also included a deduction for the Other Receivable in the amount
of $430,760.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

      This report contains certain forward-looking statements. These
forward-looking statements generally include the plans and objectives
of management for future operations, including plans and objectives
relating to the Company's future economic performance. The
forward-looking statements and associated risks may include, relate
to or be qualified by other important factors previously set forth.



                              PART II

ITEM 1.  LEGAL PROCEEDINGS.

      In February 2001 Master Financial has filed a legal action in
the trial court for the State of Minnesota against James Y. Wang, a
former President and director of Master Financial to recover all its
assets and books and records.  The assets sought to be recovered
includes cash in excess of $300,000.

ITEM 2. CHANGE IN SECURITIES

      None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

      Not Applicable.

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

      Not Applicable.

ITEM 5.  OTHER INFORMATION

     Not Applicable.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

(a)  Exhibits.

      None.

(b) Reports on Form 8-K.

      None.

                             SIGNATURES

     In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed by the undersigned, there unto
duly authorized.


                         Tensleep Corporation
                            (Registrant)

  Signature                      Title                    Date

/S/   Ronald S. Tucker        Director, CEO and CFO    February 19, 2001
Ronald S. Tucker