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 August 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 August 31,
2001 was 4,726,496 shares.



<PAGE>
<TABLE>
<CAPTION>


                                        ENETPC, INC.

                                      TABLE OF CONTENTS

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

Item 1.    Financial Statements

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

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

           Statements of Cash Flows for the Six Months Ended August 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 4.    Submission of matters to a vote of Security Holders                          10

Signature                                                                               10
</TABLE>


                                              2
<PAGE>
<TABLE>
<CAPTION>

                                             ENETPC, INC.
                                            BALANCE SHEETS

                                                                           AUGUST 31      FEBRUARY 28
                                                                             2001             2001
                                                                         -----------      -----------
                                                                         (Unaudited)
<S>                                                                      <C>              <C>
ASSETS
Current assets:
        Cash                                                             $    53,730      $   175,296
        Accounts receivable, less allowance
            for doubtful accounts - $77,250 at
            August 31, 2001 and $77,250 at
            February 28, 2001                                                411,590          711,820
        Inventories                                                          145,213          164,743
        Prepaid expenses                                                       8,472           14,296
                                                                         -----------      -----------
Total current assets                                                         619,005        1,066,155

Property and equipment:
        Office equipment and furniture                                       479,176          445,053
        Leasehold improvements                                                37,271           37,271
        Production equipment                                                  61,478           60,904
                                                                         -----------      -----------
                                                                             577,925          543,228
        Accumulated depreciation                                            (367,707)        (321,563)
                                                                         -----------      -----------
                                                                             210,218          221,665

Other assets                                                                  30,652           31,575
                                                                         -----------      -----------
Total assets                                                             $   859,875      $ 1,319,395
                                                                         ===========      ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
       Accounts payable                                                       55,728          153,156
       Accrued payroll and payroll taxes                                      15,734           15,734
       Accrued liabilities                                                    81,198           30,461
                                                                         -----------      -----------
Total current liabilities                                                    152,660          199,351

Shareholders' equity:
         Common stock, $.01 par value
                  Authorized shares - 20,000,000
                  Issued and outstanding shares - 4,726,496 at
                  August 31, 2001 and 4,691,496 at February 28, 2001          47,265           46,915
         Additional paid-in capital                                        4,182,481        4,694,607
         Deferred compensation                                              (173,777)        (564,914)
         Accumulated deficit                                              (3,348,754)      (3,056,564)
                                                                         -----------      -----------
Total shareholders' equity                                                   707,215        1,120,044
                                                                         -----------      -----------
Total liabilities and shareholders' equity                               $   859,875      $ 1,319,395
                                                                         ===========      ===========

</TABLE>





                                                  3


<PAGE>
<TABLE>
<CAPTION>


                                               ENETPC, INC.
                                   STATEMENTS OF OPERATIONS (UNAUDITED)


                                                THREE MONTHS ENDED                SIX MONTHS ENDED
                                                    AUGUST 31                        AUGUST 31
                                              2001            2000              2001             2000
                                          -----------      -----------      -----------      -----------
<S>                                       <C>              <C>              <C>              <C>
Sales                                     $   697,635      $ 3,313,280      $ 3,314,290      $ 6,570,701
Cost of Sales                                 646,017        2,924,337        3,004,644        5,998,392
                                          -----------      -----------      -----------      -----------
      Total Gross Profit                       51,618          388,943          309,647          572,309

Operating expenses:
     General and administrative               271,391          473,922          364,186          828,726
      Sales and marketing                      84,784           90,377          206,561           98,188
                                          -----------      -----------      -----------      -----------
                                              356,174          564,299          570,746          926,914
                                          -----------      -----------      -----------      -----------
Loss from operations                         (304,556)        (175,356)        (261,100)        (354,605)

Other income (expense):
      Interest income                             177            4,836              237            7,693
      Interest expense                        (15,207)         (35,722)         (34,291)         (41,434)
      Other income (expense)                      217           (1,811)          (6,938)          (3,535)
                                          -----------      -----------      -----------      -----------
                                              (14,813)         (32,697)         (40,992)         (37,276)

                                          -----------      -----------      -----------      -----------
Net loss                                     (319,369)        (208,053)        (302,091)        (391,881)
                                          ===========      ===========      ===========      ===========

Net loss per common share - basic
       and diluted                        $     (0.07)     $     (0.05)     $     (0.06)     $     (0.09)
                                          ===========      ===========      ===========      ===========

Weighted average common shares
      outstanding - basic and diluted       4,708,996        4,508,568        4,700,246        4,420,357
                                          ===========      ===========      ===========      ===========

SEE ACCOMPANYING NOTES
</TABLE>



                                                    4
<PAGE>
<TABLE>
<CAPTION>

                                       eNETPC, INC.
                           STATEMENTS OF CASH FLOWS (UNAUDITED)


                                                                 SIX MONTHS ENDED
                                                                     AUGUST 31
(Unaudited)                                                   2001              2000
                                                           -----------      -----------
<S>                                                        <C>              <C>
CASH FLOWS USED IN OPERATING ACTIVITIES
Net profit (loss)                                          $  (302,091)     $  (391,881)
Adjustments to reconcile net profit (loss) to net cash
     used in operating activities:
          Depreciation and amortization                         46,144          137,782
           Amortization of deferred compensation              (190,639)            --
          Changes in operating assets and liabilities:
                        Accounts Receivable                    338,930         (318,685)
                        Inventories                             19,530         (168,132)
                        Prepaid expenses                         5,824          (11,569)
                        Accounts payable                       (97,428)        (212,946)
                        Accrued expenses                        21,937           21,164
                                                           -----------      -----------
Net cash provided by (used in) operating activities           (157,793)        (944,267)

CASH FLOWS USED IN INVESTING ACTIVITIES
Goodwill                                                           923          (18,601)
Purchases of property and equipment                            (34,696)        (145,889)
                                                           -----------      -----------
Net cash provided (used in) investing activities               (33,773)        (164,490)

CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from (payments on) line of credit                    --            300,000
Net proceeds from sale of common stock                          70,000        1,079,142
                                                           -----------      -----------
Net cash provided by (used in) financing activities             70,000        1,379,142

Decrease in cash                                              (121,566)         270,385
Cash at beginning of period                                    175,296          496,486
                                                           -----------      -----------
Cash at end of period                                      $    53,730      $   766,871
                                                           ===========      ===========


Supplemental information:
         Cash paid during the period for interest          $    34,291      $    41,434


 SEE ACCOMPANYING NOTES
</TABLE>


                                            5
<PAGE>


                                  ENETPC, INC.
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Note 1.  BASIS OF PRESENTATION

The accompanying  unaudited financial statements of eNetpc, Inc. (the "Company")
as of August 31, 2001 and for the three and six months ended August 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 and six months ended August 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 August 31, 2001 was 6.5%). Borrowings under
this  agreement  are  secured  by the  Company's  assets and  guaranteed  by the
majority shareholder. Borrowings totaled $60,965 at August 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:


<TABLE>
<CAPTION>



                                           THREE MONTHS ENDED            SIX MONTHS ENDED
                                               AUGUST 31                    AUGUST 31
NET SALES                                 2001           2000           2001           2000
---------                              ----------     ----------     ----------     ----------
<S>                                    <C>            <C>            <C>            <C>
eSelect business unit                  $  190,836     $  463,437     $  446,799     $  943,039
VAR business unit                         118,335        172,918        204,882        437,612
Virtual Distribution business unit        380,382      2,676,925      2,643,051      5,190,050
 ASP business unit                          8,082           --           19,558           --
                                       ----------     ----------     ----------     ----------
                                       $  697,635     $3,313,280     $3,314,290     $6,570,701
                                       ==========     ==========     ==========     ==========

</TABLE>



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     SIX MONTHS ENDED
                                    AUGUST 31            AUGUST 31
                                2001       2000       2001       2000
                               -------    -------    -------    -------
Sales                           100.0 %    100.0 %    100.0 %    100.0 %
Cost of sales                    92.6       88.3       90.7       91.3
                               -------    -------    -------    -------
Gross profit                      7.4       11.7        9.3        8.7
                               -------    -------    -------    -------

Operating expenses
General and administrative       38.9       14.3       11.0       12.6
Sales and marketing              12.2        2.7        6.2        1.5
                               -------    -------    -------    -------
                                 51.1       17.0       17.2       14.1
                               -------    -------    -------    -------

Loss from operations            (43.7)      (5.3)      (7.9)      (5.4)
Other income (expense)           (2.1)      (1.0)      (1.2)      (0.6)
                               -------    -------    -------    -------

Net loss                        (45.8)%     (6.3)%     (9.1)%     (6.0)%
                               =======    =======    =======    =======






                                       7
<PAGE>

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

NET SALES.  Net sales  decreased  $2,615,645 or 78.9%,  to $697,635 in the three
months ended August 31, 2001 compared to  $3,313,280  for the three months ended
August 31, 2000.  eSelect business unit sales decreased  $272,601 to $190,836 in
the second  quarter of fiscal 2002 from $463,437 in the second quarter of fiscal
2001.  VAR  business  unit sales  decreased  $54,583 to  $118,335  in the second
quarter  of fiscal  2002 from  $172,918  in the second  quarter of fiscal  2001.
Virtual  Distribution  business unit sales  decreased  $2,296,543  or 85.8%,  to
$380,382 in the three months ended August 31, 2001  compared to  $2,676,925  for
the three months ended August 31, 2000.  Net Sales in the ASP business unit were
$8,082 in the three months  ended  August 31,  2001,  the second full quarter of
this  business  unit  operation.  The  decrease  in all  business  unit sales is
primarily due to the continuing downturn in the computer industry as a whole.

GROSS PROFIT. Gross profit for the second quarter of fiscal 2002 was $51,618, or
7.4% of net sales,  compared  to  $309,647,  or 9.3% of net sales,  in the prior
year. The decrease in gross profit is due primarily to the decrease in net sales
in all business units, particularly in the Virtual Distribution business unit.

OPERATING EXPENSES.  General and administrative expenses were $271,391, or 38.9%
of net sales,  in the second  quarter of fiscal 2002  compared to  $473,922,  or
14.3% of net sales,  in the second quarter of fiscal 2001.  This decrease is due
primarily to the reduction in  administrative  personnel  and related  operating
expenses during fiscal 2002. Sales and marketing  expenses  decreased by $20,515
due primarily to reductions in sales staff and related expenses.

Loss from  operations  increased by $129,200 to $(304,556) in the second quarter
of fiscal 2002 from a loss of $(175,356) in fiscal 2001, reflecting the decrease
in net sales and related gross profit, and the decrease in operating expenses.

Interest expense decreased by $20,515 to $15,207 in the second quarter of fiscal
2002 from $35,722 in fiscal 2001 due to decreased  borrowings  on a  receivables
financing agreement.

As a  result  of the  foregoing  factors,  net loss  increased  by  $111,316  to
$(319,369)  in the second  quarter of fiscal 2002 from a loss of  $(208,053)  in
fiscal 2001.


COMPARISON OF THE SIX MONTHS ENDED AUGUST 31, 2000 AND 2001

NET SALES.  Net sales  decreased  $3,256,411 or 49.6%,  to $3,314,290 in the six
months ended  August 31, 2001  compared to  $6,570,701  for the six months ended
August 31, 2000.  eSelect business unit sales decreased  $496,240 to $446,799 in
the first half of fiscal 2002 from  $943,039  in the first half of fiscal  2001.
VAR  business  unit sales  decreased  $232,730  to $204,882 in the first half of
fiscal 2002 from $437,612 in the first half of fiscal 2001. Virtual Distribution
business  unit sales  decreased  $2,546,999  or 49.1%,  to $2,643,051 in the six
months ended  August 31, 2001  compared to  $5,190,050  for the six months ended
August 31, 2000.

GROSS PROFIT.  Gross profit for the first half of fiscal 2002 was  $309,647,  or
9.3% of net sales,  compared  to  $572,309,  or 8.7% of net sales,  in the prior
year. The decrease in gross profit is due primarily to the decrease in net sales
in all business units, particularly in the Virtual Distribution business unit.

OPERATING EXPENSES.  General and administrative expenses were $364,186, or 11.0%
of net sales, in the first half of fiscal 2002 compared to $828,726, or 12.6% of
net sales,  in the first half of fiscal 2001.  This decrease is due primarily to
the reduction in administrative  personnel and related operating expenses during
fiscal 2002. Sales and marketing expenses increased by $108,373 due primarily to
increased efforts to increase and sustain sales levels.

                                       8
<PAGE>

Loss from  operations  decreased by $93,505 to  $(261,100)  in the first half of
fiscal 2002 from a loss of $(354,605) in fiscal 2001, reflecting the decrease in
net sales and related gross profit, and the decrease in operating expenses.

Interest expense decreased by $7,143 to $34,291 in the first half of fiscal 2002
from  $41,434  in  fiscal  2001 due to  decreased  borrowings  on a  receivables
financing agreement.

As a  result  of the  foregoing  factors,  net  loss  decreased  by  $89,790  to
$(302,091)  in the first half of fiscal 2002 from a loss of $(391,881) in fiscal
2001.

LIQUIDITY AND CAPITAL RESOURCES

The  Company's  cash  position  at August 31,  2001 was  $53,730,  a decrease of
$121,566 from $175,296 at February 28, 2001.  During the six months ended August
31, 2001,  net cash used in operating  activities  was $156,870 due primarily to
the net loss from  operations of  $(302,091),  the decrease in  amortization  of
deferred  compensation   $(190,639),   and  the  decrease  in  accounts  payable
$(97,428),  offset by the  decrease  in accounts  receivable  of  $338,930,  the
decrease in inventories of $19,530,  the decrease in prepaid expenses of $5,824,
the increase in depreciation  and  amortization of $46,144,  and the increase in
accrued expenses $21,937.  The decrease in accounts  receivable is the result of
lower sales in the 6 months ending August 31, 2001. The decrease in amortization
of  deferred  compensation  is  due  to  the  reversal  of  prior  expenses  for
amortization of deferred compensation. The decrease in accounts payable reflects
a lower operating expense level.



Net cash used in  investing  activities  in the six months ended August 31, 2001
was  $34,696  due  to  the  purchases  of  equipment,   computers  and  software
development as compared to the net cash used in investing activities for the six
months ended August 31, 2000 of $145,889  also due to the purchases of equipment
and computers.

Net cash  provided by  financing  activities  in the six months ended August 31,
2001 was $70,000 from the sale of common stock. Net cash of $1,379,142  provided
by financing  activities  for the six months ended August 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 $179,142.

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  August  31,  2001 is  6.5%).
Borrowings  under  this  agreement  are  secured  by the  Company's  assets  and
guaranteed by the majority shareholder.  Borrowings totaled $60,965.09 at August
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.


                                       9
<PAGE>

                           PART II. OTHER INFORMATION

Item 2.    Changes in Securities and Use of Proceeds

         During the quarter  ended August 31, 2001,  the Company  completed  the
sale of 35,000  shares of common stock to various  individuals  and entities and
received  net proceeds of $70,000.  In  connection  with this sale,  the Company
relied upon the exemptions from registration  provided by Sections 4(2) and 4(6)
of the  Securities  Act.  The shares of common  stock were  offered  through the
officers and  directors  only to investors  who are  "accredited"  as defined in
Regulation D under the Securities Act of 1933, as amended.


Item 4.    Submission of matters to a vote of Security Holders

     (2)  The Company held its Annual Shareholders' meeting on August 7th, 2001.

     (b)  (1) The  election of four  directors  to serve for a one year term was
              approved.

     Name                 Affirmative Votes      Voting Authority Withheld
--------------------     -------------------     -------------------------
Richard A. Pomije             3,886,313                   15,000
James T. Greenfield           3,901,313                     none
Ed Havlik                     3,901,313                     none
Pierce A. McNally             3,886,313                   15,000

           There were no abstentions and no broker non-votes.

           (2) The resolution that Virchow,  Krause & Company,  LLP shall act as
     the Company external independent auditors for the upcoming fiscal year 2002
     was approved.  There were 3,886,313 votes for, 15,000 votes against, and no
     abstentions and no broker non-votes.




                                    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:  October 12, 2001                             By  /s/ Richard A. Pomije
                                                     ---------------------------
                                                     Richard A. Pomije
                                                     Its Chief Executive Officer





                                       10