<PAGE>

                                   FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended September 30, 2001

                                       OR

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

        For the transition period from ____________ to _________________

                        Commission File Number 000-30563

                               DELTA MUTUAL, INC.
             (Exact name of registrant as specified in its charter)

             DELAWARE                                     14-1818394
    (State or other jurisdiction of                    (I.R.S. Employer
     incorporation or organization)                   Identification No.)

        1730 RHODE ISLAND AVENUE N.W., SUITE 312, WASHINGTON, D.C. 20036
                                 (202) 408-1155
             (Address and telephone number, including area code, of
                    registrant's principal executive office)



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

      Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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
    ---           ---

      Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

      At October 23, 2001 there were 557,000 shares of Common Stock, $.0001 par
value, outstanding.

<PAGE>

                               DELTA MUTUAL, INC.

                                      INDEX

                                                                          Page

Part I.  Financial Information                                              1

  Item 1.         Financial Statements

                  Balance Sheets as of September 30,
                   2001 (unaudited) and December 31, 2000                   2

                  Statements of Operations for the Nine Months
                   and Three Months Ended September 30, 2001
                   and 2000 (unaudited) and the Period
                   November 17, 1999 (Date of Formation) through
                   September 30, 2001                                       3

                  Statements of Cash Flows for the Nine Months
                   Ended September 30, 2001 and 2000 (unaudited)
                   and the Period November 17, 1999 (Date of
                   Formation) through September 30, 2001                    4

                  Notes to Condensed Financial Statements
                  (unaudited)                                             5 - 8

  Item 2.         Management's Discussion and Analysis
                   or Plan of Operations                                  9 - 11

Part II. Other Information

  Item 1.         Legal Proceedings                                         12
  Item 2.         Changes in Securities                                     12
  Item 3.         Defaults upon Senior Securities                           12
  Item 4.         Submission of Matters to a Vote of Security Holders       12
  Item 5.         Other Information                                         12
  Item 6.         Exhibits and Reports on Form 8-K                          13

Signatures                                                                  14

<PAGE>


PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

                  Certain information and footnote disclosures required under
         generally accepted accounting principles have been condensed or omitted
         from the following financial statements pursuant to the rules and
         regulations of the Securities and Exchange Commission. It is suggested
         that the following condensed financial statements be read in
         conjunction with the year-end financial statements and notes thereto
         included in the Company's Annual Report on Form 10-KSB for the year
         ended December 31, 2000.

                  The results of operations for the nine months ended September
         30, 2001, are not necessarily indicative of the results to be expected
         for the entire fiscal year or for any other period.




                                       -1-
<PAGE>

                                DELTA MUTUAL INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET

<TABLE>
<CAPTION>
                                     ASSETS

                                                                                         September 30,  December 31,
                                                                                         ---------------------------
                                                                                             2001           2000
                                                                                         ------------   ------------
                                                                                          (unaudited)
<S>                                                                                      <C>            <C>
Current Assets:
    Cash                                                                                 $     11,671   $        421
                                                                                         ------------   ------------

         TOTAL ASSETS                                                                    $     11,671   $        421
                                                                                         ============   ============

                    LIABILITIES AND STOCKHOLDERS' DEFICIENCY

Current Liabilities:
    Accounts payable and accrued expenses                                                $      2,265   $     23,538
    Due to Enterprise Solutions, Inc.                                                          54,414   $       --
    Loan from stockholder                                                                      27,578          4,950
                                                                                         ------------   ------------
         Total Liabilities                                                                     84,257         28,488
                                                                                         ------------   ------------

Stockholders' Deficiency:
    Common stock $0.0001 par value - authorized
      20,000,000 shares; 557,000
      shares issued and outstanding                                                                56             56
    Additional paid-in-capital                                                                 20,688         10,694
    Deficit accumulated during
      the development stage                                                                   (93,330)       (38,817)
                                                                                         ------------   ------------
         Total Stockholders' Deficiency                                                       (72,586)       (28,067)
                                                                                         ------------   ------------

         TOTAL LIABILITIES AND
           STOCKHOLDERS' DEFICIENCY                                                      $     11,671   $        421
                                                                                         ============   ============
</TABLE>


                       See notes to financial statements.

                                       2
<PAGE>

                                DELTA MUTUAL INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                                    Period from
                                                                                                                 November 17, 1999
                                       Nine Months Ended September 30,      Three Months Ended September 30,    (Date of Formation)
                                      ----------------------------------   ----------------------------------        through
                                            2001               2000             2001               2000         September 30, 2001
                                      ---------------    ---------------   ---------------    ---------------   ------------------

<S>                                   <C>                <C>               <C>                <C>               <C>
Costs and Expenses
    General and administrative
      expenses                        $        54,513    $        23,858   $        28,721    $        17,263   $           93,330
                                      ---------------    ---------------   ---------------    ---------------   ------------------

    Net (loss)                        $       (54,513)   $       (23,858)  $       (28,721)   $       (17,263)  $          (93,330)
                                      ---------------    ---------------   ---------------    ---------------   ------------------

    (Loss) per common share
      basic and diluted               $         (0.10)   $         (0.05)  $         (0.05)   $         (0.03)
                                      ===============    ===============   ===============    ===============

    Weighted average number of
      common shares outstanding-
      basic and diluted                       557,000            531,124           557,000            557,000
                                      ===============    ===============   ===============    ===============
</TABLE>


                       See notes to financial statements.

                                       3
<PAGE>

                                DELTA MUTUAL INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                               Period
                                                                                          November 17, 1999
                                                   Nine Months Ended September 30,       (Date of Formation)
                                                 -----------------------------------           through
                                                       2001                2000           September 30, 2001
                                                 ---------------     ---------------     --------------------
<S>                                              <C>                 <C>                 <C>
Cash flows from operating activities:

    Net loss                                     $       (54,513)    $       (23,858)    $            (93,330)
    Changes in operating assets
    and liabilities:                                     (21,229)             16,686                    2,309
                                                 ---------------     ---------------     --------------------
Net cash (used in) operating activities:                 (75,742)             (7,172)    $            (91,021)
                                                 ---------------     ---------------     --------------------

Cash flows from financing activities:
    Proceeds from sale of common stock                      --                 7,200                   10,750
    Proceeds from officer                                 32,578                --                     42,478
    Proceeds from loans                                  494,414                --                    494,414
    Payment of loan                                     (440,000)                                    (440,000)
    Payment to officer                                      --                (4,950)                  (4,950)
                                                 ---------------     ---------------     --------------------
    Net cash provided by
      financing activities                                86,992               2,250                  102,692
                                                 ---------------     ---------------     --------------------

    Net increase (decrease) in cash                       11,250              (4,922)                  11,671
    Cash - Beginning of period                               421               5,382                     --
                                                 ---------------     ---------------     --------------------
    Cash - End of period                         $        11,671     $           460     $             11,671
                                                 ===============     ===============     ====================

    Non-cash financing activities:
     Conversion of debt to paid-in capital       $          --       $          --       $              4,994
                                                 ===============     ===============     ====================

    Supplementary information:
      Cash paid during year for:
         Interest                                $          --       $            50
                                                 ===============     ===============
         Income taxes                            $          --       $           425
                                                 ===============     ===============

    Changes in operating assets and
      liabilities consists of:
      Increase (decrease) in accounts
         payable and accrued expenses            $       (21,229)    $        16,668
                                                 ===============     ===============
</TABLE>

                       See notes to financial statements.

                                        4
<PAGE>

                                DELTA MUTUAL INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. ORGANIZATION

       The balance sheet as of September 30, 2001, and the statements of
       operations and cash flows for the nine months ended September 30, 2001
       and 2000 have been prepared by Delta Mutual, Inc. and are unaudited. In
       the opinion of management, all adjustments (consisting of normal
       recurring adjustments) necessary to present fairly the financial
       position, results of operations and cash flows for all periods presented
       have been made. The information for December 31, 2000 was derived from
       audited financial statements.

2. BASIS OF PRESENTATION

       The accompanying financial statements have been prepared on a going
       concern basis, which contemplates the realization of assets and the
       satisfaction of liabilities in the normal course of business. The
       Company's primary planned activities intended to provide mortgage
       services through the Internet to the "sub-prime" market. The sub-prime
       market consists of borrowers having substandard credit. The Company
       intended to offer varied levels of mortgage and lending services by
       capitalizing on the popularity of the Internet based financial services
       companies. At September 30, 2001, operations had not yet commenced and no
       revenue has been derived; accordingly, the Company is considered a
       development stage enterprise. There is no assurance the Company will
       achieve a profitable level of operation.

       On May 11, 2001, the Company entered into an Agreement of Sale (the
       "Agreement") with Enterprises Solutions, Inc. ("ESI"). Pursuant to the
       Agreement, the Company shall acquire substantially all of the assets of
       ESI in exchange for approximately 10,500,000 shares of the Company's
       common stock.

       The Company presently does not have sufficient liquid assets to finance
       its anticipated funding needs and obligations or to proceed with the
       acquisition of Enterprises Solutions, Inc. The Company's continued
       existence and completion of the Enterprises Solutions, Inc. transaction
       is dependent upon its ability to obtain needed working capital through
       additional equity and/or debt financing. Management is actively seeking
       additional capital to ensure the continuation of its operations and to
       complete this acquisition. However, there is no assurance that additional
       capital will be obtained. These uncertainties raise substantial doubt
       about the ability of the Company to continue as a going concern.



                                       -5-
<PAGE>


       The financial statements do not include any adjustments relating to the
       recoverability and classification of recorded asset amounts or the
       amounts and classifications of liabilities that might be necessary should
       the Company be unable to continue as a going concern.

3. AGREEMENT OF SALE

       In May 2001, Delta and ESI entered into an agreement whereby ESI will
       sell its assets to Delta for 1.2676 newly issued Delta common shares for
       each common share of ESI outstanding. Delta is then expected to pay all
       of ESI's remaining liabilities. ESI will then be liquidated in accordance
       with the Plan of Liquidation and Dissolution. Approximately 10,500,000
       shares of Delta are expected to be issued to ESI shareholders. In short,
       ESI shareholders will hold approximately 95% of the total issued and
       outstanding shares of Delta after the transaction. Also, the continuing
       business of the new entity will be that of ESI. For these reasons, this
       transaction is considered to be a merger and will be accounted for as if
       ESI were the surviving entity.

       Although the transaction documents refer to Delta as purchasing the net
       assets of ESI, the transaction for accounting purposes is considered a
       merger between two companies. As a result, the net assets of ESI are not
       revalued but are carried over to the new entity at their net asset values
       as reflected on ESI's books pre merger. Delta will record the transaction
       at the par value of the newly issued stock and adjust the additional
       paid-in capital account for the par value of ESI's retired stock and the
       elimination of Delta's deficit.

       The Agreement is conditioned on the effectiveness of the registration
       statement required to be filed with the Securities and Exchange
       Commission for the Acquisition, approval of the sale of substantially all
       of the assets of ESI as part of the Acquisition transaction by the
       stockholders of ESI, and on the approval by the stockholders of the
       Company of the recapitalization. Following the recapitalization, the
       Company will have an authorized capitalization of 100,000,000 shares of
       common stock and 5,000,000 shares of preferred stock.

       The following consolidated pro forma condensed statements of operations
       for the three months ended September 30, 2001 and 2000 give effect to the
       transaction as if it occurred on January 1, 2000.



                                       -6-
<PAGE>

<TABLE>
<CAPTION>
                                         Nine Months Ended September 30,        Three Months Ended September 30,
                                       -----------------------------------     -----------------------------------
                                             2001                2000                2001                2000
                                       ---------------     ---------------     ---------------     ---------------

<S>                                    <C>                 <C>                 <C>                 <C>
Revenue                                $          --       $          --       $          --       $          --
Total operating costs and expenses     $     2,506,560     $     3,106,497     $       727,866     $       976,466
Net (loss)                             $    (2,435,435)    $     3,028,094     $      (710,516)    $      (929,062)
Net (loss) per common share
  -basic and diluted                   $         (0.22)    $         (0.27)    $         (0.06)    $         (0.08)
Weighted average number of
  common shares outstanding
  -basic and diluted                        11,057,000          11,031,124          11,057,000          11,057,000
                                       ===============     ===============     ===============     ===============
</TABLE>

4. LOSS PER SHARE

       Basic loss per common share is computed using the weighted average number
       of common shares outstanding during the period. Diluted earnings per
       common share are computed using the weighted average number of common
       shares and potential common shares outstanding during the period. During
       the nine months ended September 30, 2001 and 2000, potential common
       shares were not used in the computation of diluted loss per common share
       as their effect would be antidilutive.

5. COMMON STOCK

       The Company has a single class of Common Stock with a par value of
       $0.0001 per share. At September 30, 2001, 557,000 shares were issued and
       outstanding.

       Such shares were issued without registration in reliance on an exemption
       in federal securities laws that permit issuance of stock up to $1 million
       without registration of the securities.

6. RELATED PARTY TRANSACTIONS

       In connection with the initial capitalization of the Company, its former
       principal stockholder loaned the Company $4,950. Interest was accrued at
       10%. The loan and accrued interest was capitalized as of March 31, 2001.
       In April, 2001 the new principal shareholder advanced the Company $32,578
       to fund the Company's operations.

       In connection with the acquisition of ESI, the Company was advanced
       $494,414 and was repaid $440,000 as of September 30, 2001.



                                       -7-
<PAGE>


7. RECENT DEVELOPMENTS

       On April 20, 2001, Kelcon, Inc., a Delaware corporation purchased 450,000
       shares of common stock, $.0001 par value from the officers of Delta
       Mutual Inc, effectively changing the ownership of the Company.








                                       -8-
<PAGE>


Item 2.    Management's Discussion and Plan of Operations

Forward Looking Statements

This Form 10-QSB contains Forward-Looking statements made pursuant to the safe
harbor provisions of the Securities Litigation Reform Act of 1995. Such
statements consist of any statement other than a recitation of historical facts
and can be identified by words such as "plan", "may", "expect", "anticipate",
"estimate", "hopes", "believes", "continue", "intends", "seeks", "contemplates",
"suggest", "envisions", or the negative thereof or other varieties thereof or
comparable terminology. Actual results could differ materially from these
Forward-Looking statements. In light of these risks and uncertainties, there can
be no assurance that the Forward-Looking information contained in this Form
10-QSB will, in fact, occur. Delta does not undertake any obligation to revise
these Forward-Looking statements to reflect future events or circumstances and
other factors discussed elsewhere in this Form 10-QSB and the documents filed or
to be filed by Delta with the SEC.

Plan of Operation

   The Company is in the initial stages of startup and is exploring the
feasibility of raising sufficient capital to implement its business plan. The
Company has been in the development stage since inception (November 17, 1999).

   The Company has registered its class of common stock on a Form 10-SB
registration statement filed pursuant Section 12(g) of the Securities Exchange
Act of 1934 (the "Exchange Act").

   The Company has limited capital and is unable to commence the operations
described in its business plan until it raises equity or debt funding. At the
present time, the Company has not commenced operations or any activities beyond
the planning stage.

   The Company has incurred, and will continue to incur, expenses relating to
its operations. Specifically, as long as the Company is required to file reports
under the Exchange Act, the Company will continue to incur accounting and legal
fees relating to these filings. The Company enjoys the non-exclusive use of
office, telecommunication and incidental supplies of stationary, provided by its
officers. As of the date of this report, the Company has not generated any
revenues.



                                       -9-
<PAGE>


In May 2001, Delta and ESI entered into an agreement whereby ESI will sell its
assets to Delta for 1.2676 newly issued Delta common shares for each common
share of ESI outstanding. Delta is then expected to pay all of ESI's remaining
liabilities. ESI will then be liquidated in accordance with the Plan of
Liquidation and Dissolution. Approximately 10,500,000 shares of Delta are
expected to be issued to ESI shareholders. In short, ESI shareholders will hold
approximately 95% of the total issued and outstanding shares of Delta after the
transaction. Also, the continuing business of the new entity will be that of
ESI. For these reasons, this transaction is considered to be a merger and will
be accounted for as if ESI were the surviving entity.

Although the transaction documents refer to Delta as purchasing the net assets
of ESI, the transaction for accounting purposes is considered a merger between
two companies. As a result, the net assets of ESI are not revalued but are
carried over to the new entity at their net asset values as reflected on ESI's
books pre merger. Delta will record the transaction at the par value of the
newly issued stock and adjust the additional paid-in capital account for the par
value of ESI's retired stock and the elimination of Delta's deficit.

   The Company must rely upon loans and investments from affiliates to pay its
operating expenses. There are no assurances that such affiliates will continue
to advance funds to the Company or will continue to invest in the Company's
securities. In the event the Company is unable to obtain additional capital or
funding it may be unable to pursue its business plan.

   Once the Company completes its business planning and commences acquiring the
assets and resources necessary to execute its business plan, the Company will
need additional funding. No significant cash or funds are expected to be
required for the Company to complete its business planning.

Liquidity

   At September 30, 2001, the Company had a working capital deficit of $72,586
compared to a working capital deficit of $28,067 at December 31, 2000. The
decrease in working capital is the result of the net loss incurred during the
nine months ended September 30, 2001.






                                      -10-
<PAGE>


Results of Operations

Nine Months Ended September 30, 2001 compared to
  Nine Months Ended September 30, 2000

   General and administrative expenses increased from $23,858 for the nine
months ended September 30, 2000 to $54,513 for the nine months ended September
30, 2001. The Company attributes this increase primarily to an increase in
professional fees.



Three Months Ended September 30, 2001 compared to
  Three Months Ended September 30, 2000

   General and administrative expenses increased from $17,263 for the three
months ended September 30, 2000 to $28,721 for the three months ended September
30, 2001. The Company attributes this increase primarily to an increase in
professional fees.







                                      -11-
<PAGE>


PART II - OTHER INFORMATION

         ITEM 1.  LEGAL PROCEEDINGS

                  There are no legal proceedings against the Company and the
                  Company is unaware of such proceedings contemplated against
                  it.

         ITEM 2.  CHANGES IN SECURITIES

                  Not applicable.

         ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

                  Not applicable.

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

                  Not applicable.

         ITEM 5.  OTHER INFORMATION

                  Not applicable








                                      -12-
<PAGE>



         ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits:

                  Not applicable

         (b)      None

                  There were no Current Reports on Form 8-k filed by the
                  registrant during the quarter ended September 30, 2001.









                                      -13-
<PAGE>


                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                               DELTA MUTUAL, INC.


                                               BY: /s/ Kenneth Martin
                                                   -----------------------------
                                                   Kenneth Martin
                                                   Principal Financial and
                                                   Chief Accounting Officer



Dated:  November 8, 2001








                                      -14-