<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 March 31, 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 812, WASHINGTON, D.C. 20036
                                 (202) 408-1155
             (Address and telephone number, including area code, of
                    registrant's principal executive office)

            19 NEW ENGLAND AVENUE, SUITE 8C, SUMMIT, NEW JERSEY 07901
                                 (908) 918-0130
         (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 May 24, 2001 there were 557,000 shares of Common Stock, $.0001 par
value, outstanding.

<PAGE>

                               DELTA MUTUAL, INC.

                                      INDEX
                                      -----
<TABLE>
<CAPTION>
                                                                                        Page
                                                                                        ----
<S>                                                                                     <C>
Part I.  Financial Information                                                            1

  Item 1.         Financial Statements

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

                  Statements of Operations for the Three Months Ended March 31,
                   2001 and 2000 (unaudited) and the Period November 17, 1999
                   (Date of Formation) through March 31, 2001                             3

                  Statements of Cash Flows for the Three Months Ended March 31,
                   2001 and 2000 (unaudited) and the Period November 17, 1999
                   (Date of Formation) through March 31, 2001                             4

                  Notes to Financial Statements (unaudited)                             5 - 7

  Item 2.         Management's Discussion and Analysis
                   or Plan of Operations                                                8 - 9

Part II. Other Information

  Item 1.         Legal Proceedings                                                        10
  Item 2.         Changes in Securities                                                    10
  Item 3.         Defaults upon Senior Securities                                          10
  Item 4.         Submission of Matters to a Vote of Security Holders                      10
  Item 5.         Other Information                                                        10
  Item 6.         Exhibits and Reports on Form 8-K                                         10

Signatures                                                                                 11
</TABLE>




<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 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 three months ended March 31,
         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

                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                                    March 31,           December 31,
                                                                    --------------------------------
                                                                      2001                  2000
                                                                    --------            ------------
<S>                                                                 <C>                  <C>
Current Assets:
    Cash                                                            $    285            $        421
                                                                    --------            ------------
         TOTAL ASSETS                                               $    285            $        421
                                                                    ========            ============

                    LIABILITIES AND STOCKHOLDERS' DEFICIENCY
                    ----------------------------------------

Current Liabilities:
    Accounts payable and accrued expenses                           $ 31,037            $     23,538
    Loan from stockholder                                                  -                   4,950
                                                                    --------            ------------
         Total Liabilities                                            31,037                  28,488
                                                                    --------            ------------

Stockholders' Deficiency:
    Common stock $0.0001 par value - authorized
      20,000,000 shares; 557,000 and 485,000
      shares issued and outstanding                                       56                      56
    Additional paid-in-capital                                        20,688                  10,694
    Deficit accumulated during
      the development stage                                          (51,496)                (38,817)
                                                                    --------            ------------
         Total Stockholders' Deficiency                              (30,752)                (28,067)
                                                                    --------            ------------
         TOTAL LIABILITIES AND
           STOCKHOLDERS' DEFICIENCY                                 $    285            $        421
                                                                    ========            ============
</TABLE>



                       See notes to financial statements.

                                        2
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                         Period from
                                                                                       November 17, 1999
                                                    Three Months Ended March 31,      (Date of Formation)
                                                    ----------------------------           through
                                                      2001                2000         March 31, 2001
                                                    --------            --------       -----------------
<S>                                                 <C>                 <C>            <C>
Costs and Expenses
    General and administrative
      expenses                                      $ 12,679            $ 10,037       $          51,496
                                                    --------            --------       -----------------
    Net (loss)                                      $(12,679)           $(10,037)      $         (51,496)
                                                    --------            --------       -----------------
    (Loss) per common share
      basic and diluted                             $  (0.02)           $  (0.02)
                                                    --------            --------
    Weighted average number of
      common shares outstanding-
      basic and diluted                              557,000             485,400
                                                    --------            --------
</TABLE>



                       See notes to financial statements.

                                        3
<PAGE>

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

<TABLE>
<CAPTION>

                                                                                              Period
                                                                                         November 17, 1999
                                                        Three Months Ended March 31,    (Date of Formation)
                                                        ----------------------------          through
                                                          2001                2000         March 31, 2001
                                                        --------          ----------    ------------------
<S>                                                     <C>               <C>           <C>
Cash flows from operating activities:

    Net loss                                            $(12,679)         $  (10,037)   $          (51,496)
    Changes in operating assets
    and liabilities:                                       7,543               3,234                31,037
                                                        --------          ----------    ------------------
Net cash (used in) operating activities:                  (5,136)             (6,803)   $          (20,459)
                                                        --------          ----------    ------------------
Cash flows from financing activities:
    Proceeds from sale of common stock                         -               3,750                10,750
    Proceeds from officer                                  5,000               4,950                 9,994
                                                        --------          ----------    ------------------
    Net cash provided by
      financing activities                                 5,000               8,700                20,744
                                                        --------          ----------    ------------------
    Net increase (decrease) in cash                         (136)              1,897                   285
    Cash - Beginning of year                                 421                   -                     -
                                                        --------          ----------    ------------------
    Cash - Ending of year                               $    285          $    1,897    $              285
                                                        --------          ----------    ------------------
    Non-cash financing activities:
     Conversion of debt to paid in capital              $  9,994          $        -    $            9,994
                                                        --------          ----------    ------------------
    Supplementary information:
      Cash paid during year for:
         Interest                                       $      -          $        -
                                                        --------          ----------
         Income taxes                                   $      -          $        -
                                                        --------          ----------
    Changes in operating assets and
      liabilities consists of:
      Increase in accounts payable
         and accrued expenses                           $  7,455          $    3,234
                                                        --------          ----------
</TABLE>


                       See notes to financial statements.

                                        4
<PAGE>

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


1.  DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
    POLICIES

1.     ORGANIZATION

        The balance sheet as of March 31, 2001, and the statements of operations
       and cash flows for the three months ended March 31, 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 March 31, 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.

        As of the date of this report, the Company has entered into a definitive
       Agreement of Sale to acquire substantially all of the assets of
       Enterprises Solutions, Inc. Reference is made to the Company's Form 8-K,
       filed with the Securities and Exchange Commission on May 23, 2001, for
       details of that transaction.



                                       -5-

<PAGE>


         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.

         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.     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 three months ended March 31, 2001 and 2000, potential common shares
       were not used in the computation of diluted loss per common share as
       their effect would be antidilutive.


4.     COMMON STOCK

       The Company has a single class of Common Stock with a par value of
       $0.0001 per share. At March 31, 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-


<PAGE>


5.     RELATED PARTY TRANSACTIONS

         In connection with the initial capitalization of the Company, its
       principal stockholder loaned the Company $4,950. An addition $5,000 was
       loan by the officer/stockholder during the first quarter ended March 31,
       2001. Interest was accrued at 10%. The loan and accrued interest was
       capitalized as of March 31, 2001. The loan payable to the
       officer/stockholder at March 31, 2001 and December 31, 2000 was $-0- and
       $4,950, respectively.


6.     SUBSEQUENT EVENTS

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

       On May 11, 2001, the Company has entered into a definitive Agreement of
       Sale to acquire substantially all of the assets of Enterprises Solutions,
       Inc. in exchange for 10,583,000 shares of the Company's common stock,
       subject to adjustment. Reference is made to the Company's Form 8-K, filed
       with the Securities and Exchange Commission on May 23, 2001, for details
       of that transaction






                                       -7-

<PAGE>

Item 2.    Management's Discussion and Plan of Operations

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

   Certain information contained herein should be considered "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 which is subject to a number of risks and uncertainties. The preparation
of forward-looking statements requires the use of estimates of future revenues,
expenses, activity levels and economic and market conditions, many of which are
outside the control of Delta Mutual Inc. ("Company") control. Specific factors
that could cause actual results to differ materially from those set forth in the
forward-looking statements include: economic conditions, labor costs; aviation
fuel costs; competitive pressures on pricing; weather conditions; government
legislation; consumer perceptions of the Company's products; demand for air
transportation in the markets intended to be served by the Company; other
operational matters discussed herein and other risks and uncertainties. Other
factors and assumptions not identified above are also involved in the
preparation of forward-looking statements, and the failure of such other factors
and assumptions to be realized may also cause actual results to differ
materially from those discussed.

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.


                                       -8-

<PAGE>


   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 March 31, 2001, the Company had a working capital deficit of $30,752,
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
three months ended March 31, 2001.

Results of Operations
---------------------

Three Months Ended March 31, 2001 compared to Three Months Ended March 31, 2000
-------------------------------------------------------------------------------

   General and administrative expenses increased from $10,037 for the three
months ended March 31, 2000 to $12,679 for the three months ended March 31,
2001. The Company attributes this increase primarily to an increase in
professional fees.


                                       -9-

<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

         ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a) Exhibits:

                    Not applicable

         (b) The following reports on Form 8-K were filed during the last
             quarter of the period covered by this report.


                    None.




                                      -10-

<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 A. Martin
                                                              -----------------
                                                              Kenneth A. Martin,
                                             President & Chief Executive Officer


Dated:  May 29, 2001













                                      -11-