SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(MARK ONE)

 X   Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
---  Act of 1934


For the quarterly period ended May 31, 2001.



     Transition  report  pursuant  to  Section  13 or  15(d)  of the  Securities
---  Exchange Act of 1934

For the transition period from ______________________ to ____________________



Commission File No.     000-27225
                    ----------------

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

          Minnesota                                     41-1427445
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

6825 Shady Oak Road, Eden Prairie, Minnesota                      55344
--------------------------------------------           -------------------------
(Address of principal executive offices)                       (ZIP Code)

Issuer's telephone number, including area code:              (952) 943-1598
                                                       -------------------------


--------------------------------------------------------------------------------
(Former  name,  former  address and former  fiscal year,  if changed  since last
                                    report)

Indicate by check mark whether the issuer (1) has 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 issuer 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 of the issuer's  Common Stock  outstanding  at May 31,
2001 was 4,691,496 shares.



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                                             ENETPC, INC.

                                           TABLE OF CONTENTS

                                                                                                   Page No.
                                                                                                  -----------
<S>        <C>                                                                                    <C>
                                     Part I. Financial Information

Item 1.    Financial Statements

           Balance Sheets as of May 31, 2001 (unaudited) and February 28, 2001                          3

           Statements of Operations for Three Months Ended May 31, 2001 and 2000 (unaudited)            4

           Statements of Cash Flows for the Three Months Ended May 31, 2001 and 2000 (unaudited)        5

           Notes to the Financial Statements (unaudited)                                                6

Item 2.    Management's Discussion and Analysis                                                         7



                                      Part II. Other Information

Item 1.    Legal Proceedings                                                                            9

Signature                                                                                              10


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<CAPTION>




                                            eNETPC, INC.
                                           BALANCE SHEETS


                                                                            MAY 31      FEBRUARY 28
                                                                             2001           2001
                                                                         -----------    -----------
ASSETS                                                                   (Unaudited)
<S>                                                                      <C>            <C>
Current assets:
        Cash                                                             $    91,601    $   175,296
        Accounts receivable, less allowance
        for doubtful accounts - $77,248 at May 31,
        2001 and $77,250 at February 28, 2001                              1,014,480        711,820
        Inventories                                                          183,057        164,743
        Prepaid expenses                                                      39,125         14,296
                                                                         -----------    -----------
Total current assets                                                       1,328,263      1,066,155

Property and equipment:
        Office equipment and furniture                                       479,176        445,053
        Leasehold improvements                                                37,271         37,271
        Production equipment                                                  60,999         60,904
                                                                         -----------    -----------
                                                                             577,445        543,228
        Accumulated depreciation                                            (344,635)      (321,563)
                                                                         -----------    -----------
                                                                             232,810        221,665
Other assets                                                                  31,114         31,575
                                                                         -----------    -----------
Total assets                                                             $ 1,592,187    $ 1,319,395
                                                                         ===========    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
       Accounts payable                                                       75,480        153,156
       Accrued payroll and payroll taxes                                      16,140         15,734
       Accrued liabilities                                                   553,884         30,461
                                                                         -----------    -----------
Total current liabilities                                                    645,505        199,351
Shareholders' equity:
         Common stock, $.01 par value, authorized shares - 20,000,000
             Issued and outstanding shares - 4,691,496 at May 31, 2001
             and at February 28, 2001                                         46,915         46,915
         Additional paid-in capital                                        4,112,831      4,694,607
         Deferred compensation                                              (173,777)      (564,914)
         Accumulated deficit                                              (3,039,286)    (3,056,564)
                                                                         -----------    -----------
Total shareholders' equity                                                   946,683      1,120,044
                                                                         -----------    -----------
Total liabilities and shareholders' equity                               $ 1,592,187    $ 1,319,395
                                                                         ===========    ===========





                                                 3

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                                  eNETPC, INC.
                      STATEMENTS OF OPERATIONS (UNAUDITED)




                                                 THREE MONTHS ENDED
                                                        MAY 31
                                          2001                       2000
                                     ---------------            ----------------

Sales                                $    2,616,655             $     3,257,421
Cost of Sales                             2,358,626                   3,074,055
                                     ---------------            ----------------
      Total Gross Profit                    258,029                     183,366

Operating expenses:
      General and administrative             92,796                     354,804
      Sales and marketing                   121,776                       7,811
                                     ---------------            ----------------
                                            214,572                     362,615
                                     ---------------            ----------------
Profit or (loss) from operations             43,457                    (179,249)

Other income (expense):
      Interest income                            60                       2,857
      Interest expense                      (19,084)                     (5,712)
      Other income (expense)                 (7,155)                     (1,724)
                                     ---------------            ----------------
                                            (26,179)                     (4,579)
                                     ---------------            ----------------

Net income (loss)                            17,278                    (183,830)
                                     ===============            ================


Net loss per common share - basic
      and diluted                          ---                            (0.04)

Weighted average common shares
      outstanding - basic and diluted     4,691,496                   4,333,095

SEE ACCOMPANYING NOTES

                                       4
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<CAPTION>



                                             eNETPC, INC.
                                 STATEMENTS OF CASH FLOWS (UNAUDITED)



                                                                         THREE MONTHS ENDED
                                                                MAY 31
                                                                 2001                        2000
                                                            --------------              ----------------
<S>                                                         <C>                         <C>
 CASH FLOWS USED IN OPERATING ACTIVITIES
 Net profit (loss)                                          $      17,278               $      (183,828)
 Adjustments to reconcile net profit (loss) to net cash
      used in operating activities:
           Depreciation and amortization                           23,072                        19,121
           Amortization of deferred compensation                 (190,639)                       34,179
           Changes in operating assets and liabilities:
                         Accounts Receivable                     (302,660)                   (1,028,818)
                         Inventories                              (18,314)                        4,903
                         Prepaid expenses                         (24,368)                     (232,385)
                         Accounts payable                         (77,676)                       43,809
                         Accrued expenses                         523,829                       (25,569)
                                                            --------------              ----------------
 Net cash provided by (used in) operating activities              (49,478)                   (1,368,588)

 CASH FLOWS USED IN INVESTING ACTIVITIES
 Purchases of property and equipment                              (34,217)                      (76,584)
                                                            --------------              ----------------
 Net cash provided (used in) investing activities                 (34,217)                      (76,584)

 CASH FLOWS FROM FINANCING ACTIVITIES
 Net proceeds from (payments on) line of credit                                                 300,000
 Net proceeds from notes payable                                                                976,550
                                                            --------------              ----------------
 Net cash provided by (used in) financing activities                    -                     1,276,550

 Decrease in cash                                                 (83,695)                     (168,622)
 Cash at beginning of period                                      175,296                       496,486
                                                            --------------              ----------------
 Cash at end of period                                      $      91,601               $       327,864
                                                            ==============              ================


 Supplemental information:
          Cash paid during the period for interest          $      19,084               $         5,712


 SEE ACCOMPANYING NOTES


                                       5

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                                  ENETPC, INC.
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


Note 1.  BASIS OF PRESENTATION

The accompanying  unaudited financial statements of eNetpc, Inc. (the "Company")
as of May 31,  2001 and for the three  months  ended May 31,  2001 and 2000 have
been prepared by the Company,  without audit,  pursuant to rules and regulations
of the Securities  and Exchange  Commission  ("SEC").  Certain  information  and
footnote  disclosures,  normally  included in financial  statements  prepared in
accordance with generally accepted accounting principles, have been condensed or
omitted  pursuant to such rules and  regulations.  In the opinion of management,
the financial  statements  included in this Form 10-QSB include all adjustments,
consisting only of normal and recurring adjustments,  considered necessary for a
fair  presentation  of the financial  position and the results of operations and
cash flows for the periods  presented.  Operating  results for the three  months
ended May 31, 2001 are not  necessarily  indicative  of the results  that may be
expected  for the year ending  February  28,  2002.  These  condensed  financial
statements  and  footnote  disclosures  should be read in  conjunction  with the
financial statements and footnotes thereto for the year ended February 28, 2001,
included in the Company's  Annual Report on Form 10-KSB.  The preparation of the
financial statements in conformity with generally accepted accounting principles
requires  management  to make  estimates  and  assumptions  that affect  amounts
reported in the financial  statements  and  accompanying  notes to the financial
statements. Actual results could differ from those estimates.


Note 2.  INVENTORIES

Inventories  are stated at the lower of cost  (first-in,  first-out)  or market.
Inventories consist principally of purchased components.

Note 3.  NOTE PAYABLE

The Company  entered  into a new loan and  security  agreement  with a financing
institution in October, 2000 in the amount of $2,500,000 which allows an advance
of up to 85% of the Company's eligible accounts receivable at an annual interest
rate of prime plus 4% (prime  rate at May 31, 2001 was 7.0%).  Borrowings  under
this  agreement  are  secured  by the  Company's  assets and  guaranteed  by the
majority shareholder. Borrowings totaled $517,322 at May 31, 2001.


Note 4.  SEGMENT AND GEOGRAPHIC DATA

The Company  reorganized into two reportable  segments  effective March 1, 2001,
 .COM and .Net.  The .COM  segment,  which is comprised of the eSelect  (formerly
CyberStar),   VAR  and  Virtual  Distribution  (formerly  ITC)  business  units,
distributes branded and proprietary  computer systems and peripheral  equipment.
eSelect  distributes its products throughout the United States. The VAR business
unit sells its products through  resellers.  The Virtual  Distribution  business
unit was started in April 2000 and distributes  domestically and internationally
tier-one  computer   hardware,   software  and  peripherals  to  large  computer
resellers.  The  .NET  segment  is  comprised  of the ASP  (Application  Service
Provider)  business  unit  which  was  started  on  March  1,  2001  to  provide
application  and data server  services,  web site hosting and  development,  and
e-commerce solutions.



                                      6

<PAGE>


The following table presents sales information by business unit:

                                                   THREE MONTHS ENDED
                                                         May 31

                                               2001                  2000
                                           ------------          -----------
NET SALES

eSelect business unit                      $    255,963          $   479,602
VAR business unit                                86,547              264,694
Virtual Distribution business unit            2,262,669            2,513,125
ASP business unit                                11,476                  -0-
                                           ------------          -----------
                                           $  2,616,655          $ 3,257,421
                                           ============          ===========

Note 5. NET INCOME (LOSS) PER COMMON SHARE

Basic net income  (loss) per share is  computed  based on the  weighted  average
number of common  shares  outstanding  during  each  period.  Diluted net income
(loss) per share includes the incremental  shares assumed issued on the exercise
of stock  options.  Basic and  diluted  net  income  (loss)  per share are equal
because  the  effect  of  the   outstanding   stock   options  and  warrants  is
antidilutive.


ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

                              RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, statement of
operations data as a percentage of net sales:

                                                  Three Months Ended
                                                        May 31

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

Sales                                            100.0%          100.0%
Cost of sales                                     90.0            94.4
                                               --------        --------
Gross profit                                      10.0             5.6
                                               --------        --------

Operating expenses
General and administrative                         3.5            10.9
Sales and marketing                                4.7             0.2
                                               --------        --------
                                                   8.2            11.1
                                               --------        --------

Income (loss) from operations                      1.7            (5.5)
Other income (expense)                            (1.0)           (0.1)
                                               --------        --------

Net income (loss)                                  0.7%           (5.6)%
                                               ========        =========

                                       7
<PAGE>



COMPARISON OF THE THREE MONTHS ENDED MAY 31, 2000 AND 2001

NET SALES.  Net sales  decreased  $640,766 or 19.7%,  to $2,616,655 in the three
months ended May 31, 2001 compared to $3,257,421  for the three months ended May
31, 2000.  eSelect  business  unit sales  decreased  $223,639 to $255,963 in the
first  quarter of fiscal 2002 from $479,602 in the first quarter of fiscal 2001.
VAR business  unit sales  decreased  $178,147 to $86,547 in the first quarter of
fiscal  2002  from  $264,694  in the  first  quarter  of  fiscal  2001.  Virtual
Distribution  business unit sales decreased  $250,456 or 10.0%, to $2,262,669 in
the three months ended May 31, 2001 compared to $2,513,125  for the three months
ended May 31, 2000. Net Sales in the ASP business unit were $11,476 in the three
months  ended May 31,  2001,  the  first  full  quarter  of this  business  unit
operation.  The  decrease in all  business  unit sales is  primarily  due to the
global economic downturn in the computer industry.

GROSS PROFIT. Gross profit for the first quarter of fiscal 2002 was $258,029, or
9.9% of net sales,  compared  to  $183,366,  or 5.6% of net sales,  in the prior
year.  The  increase in gross  profit is due  primarily  to higher  gross profit
margins on sales in the Virtual  Distribution and the ASP business units.  Gross
profits  decreased in the VAR business  unit by $43,473  primarily  due to lower
sales.

OPERATING EXPENSES. General and administrative expenses were $92,796, or 3.5% of
net sales, in the first quarter of fiscal 2002 compared to $354,804, or 10.9% of
net sales,  in the first quarter of fiscal 2001.  This decrease is due primarily
to the  reversal of deferred  compensation  expenses  related to an employee who
left  the  Company  without  exercising  the  available  common  stock  options,
$190,639,  and  other  reductions  in  general  operating  expenses.  Sales  and
marketing  expenses  increased by $113,965 due primarily to three full months of
expenses  in the  Virtual  Distribution  business  unit in the first  quarter of
fiscal 2002  compared to minimal  expenses in the first  quarter of fiscal 2001,
its first quarter of operations.

Income from operations  increased by $222,706 to $43,457 in the first quarter of
fiscal 2002 from a loss of $(179,249) in fiscal 2001, reflecting the increase in
gross profit and decrease in operating expenses.

Interest expense  increased by $13,372 to $19,084 in the first quarter of fiscal
2002 from $5,712 in fiscal 2001 due to  increased  borrowings  on a  receivables
financing  agreement,  and  increased  credit card  processing  fees  related to
increased sales over the internet.

The Company incurred other expense of $(7,155) in the first quarter of fiscal
2002 as compared to $1,724 in fiscal 2001. This primarily results from balance
sheet adjustments $(6,000).

As a result of the  foregoing  factors,  net income  increased  by  $201,108  to
$17,278 in the first  quarter of fiscal 2002 from a loss of $(183,830) in fiscal
2001.


LIQUIDITY AND CAPITAL RESOURCES

The Company's  cash position at May 31, 2001 was $91,601,  a decrease of $83,695
from $175,296 at February 28, 2001.  During the three months ended May 31, 2001,
net cash used in  operating  activities  was  $49,478 due  primarily  to the net
profit from operations of $17,278,  and the increase in depreciation  expense of
$23,072, offset by the increase in accounts receivable of $302,660, the decrease
in amortization of deferred compensation  $190,639,  the increase in inventories
of $18,314,  the  increase in prepaid  expenses of $24,368,  and the increase in
accounts  payable  and  accrued  expenses  $446,153.  The  increase  in accounts
receivable  is the  result  of high  sales in the last 2 months  of the  quarter
ending May 31, 2001. The decrease in  amortization  of deferred  compensation is
due to the reversal of prior expenses for amortization of deferred compensation.
The  increase in  accounts  payable and  accrued  expenses is  primarily  due to
increased short term borrowings on the financing agreement.

                                       8
<PAGE>

Net cash used in investing activities in the three months ended May 31, 2001 was
$34,217 due to the purchases of equipment, computers and software development as
compared to the net cash used in investing activities for the three months ended
May 31, 2000 of $76,584 also due to the purchases of equipment and computers.

Net cash provided by financing activities in the three months ended May 31, 2001
was zero. Net cash of $1,276,550 provided by financing  activities for the three
months ended May 31, 2000 consisted of $300,000  borrowed under a revolving line
of  credit,  $900,000  borrowed  from a  private  investor,  and  borrowings  on
receivables of $76,500.

The Company's loan and security  agreement in the amount of $2,500,000 allows an
advance of up to 85% of the Company's eligible accounts  receivable at an annual
interest rate of prime plus 4% (prime rate at May 31, 2001 is 7.0%).  Borrowings
under this  agreement are secured by the Company's  assets and guaranteed by the
majority shareholder. Borrowings totaled $517,322 at May 31, 2001.




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

Forward-looking   statements  herein  are  made  pursuant  to  the  safe  harbor
provisions of the Private  Securities  Litigation  Reform Act of 1995. There are
certain  important  factors that could cause results to differ  materially  from
those anticipated by some of the statements made herein. Investors are cautioned
that all  forward-looking  statements  involve risks and uncertainty.  Among the
factors that could cause actual results to differ  materially are the following:
market acceptance of new products,  changes in competitive environment,  general
conditions  in the  industries  served  by  the  Company's  products,  continued
availability  of financing and related costs,  and overall  economic  conditions
including inflation.


                           PART II. OTHER INFORMATION



Item 1. Legal Proceedings.

     In June, 2000, eNetpc (then Cyberstar)  commenced legal proceedings against
Euler  Solutions,   Inc.  alleging  breach  of  contract,   (Cyberstar  Computer
Corporation  v. Euler  Solutions,  Inc.,  Court file No. CT 008191,  in State of
Minnesota,  Hennepin county  district  Court),  seeking refund of  approximately
$31,000.00 paid to Euler for custom computer  software that was never completed.
Euler has filed a counterclaim  in the amount of  approximately  $90,000.00 plus
interest  and  consequential  damages of over  $500,000.00  it claims is owed by
eNetpc for computer consulting services provided by Euler.

     Mediation  efforts  were  undertaken  on May 14, 2001.  Those  efforts were
unsuccessful.  eNetpc vigorously contested Euler's claims and the matter went to
trial on June 25, 2001.  The results from trial gave neither eNetpc or Euler any
award and the matter is not expected to be appealed.

     eNetpc is, from time to time, a party to  litigation  arising in the normal
course of its business.  eNetpc  believes that none of these actions will have a
material adverse effect on its financial condition or results of operations.


                                       9


<PAGE>

                                    SIGNATURE


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

                                                    eNETPC, INC.


Dated:  June 30, 2001                            By  /s/ Richard A. Pomije
                                                    ----------------------------
                                                    Richard A. Pomije
                                                    Its Chief Executive Officer





                                       10