FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549


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


For the quarter ended:       December 31, 2000

Commission file number:      333-36522

                           Wholesale On The Net, Inc.
                   -------------------------------------------
             (exact name of registrant as specified in its charter)

       Nevada                                                    75-2853946
-----------------------                                          ----------
(State of Incorporation)                                        (IRS ID No.)


            1529 East Interstate 30, Suite 104, Garland, Texas     75043
      ----------------------------------------------------------- --------
                    (Address of principal executive offices)     (Zip code)

Registrant's telephone number, including area code: 972-303-0405

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court. Yes [x ] No [ ].


Shares of common stock outstanding at December 31, 2000:

                                                     1,268,300







<PAGE>



                                TABLE OF CONTENTS



PART I - FINANCIAL INFORMATION                                       Page Number


Item  1.          Financial Statements                                   1 - 7

Item  2.          Managements's Discussion and Analysis
                  of Financial Condition and Results of Operations       8 - 9


PART II - OTHER INFORMATION                                                10












<PAGE>

                                CHARLES E. SMITH

                           CERTIFIED PUBLIC ACCOUNTANT

                           709-B West Rusk, Suite 580
                               Dallas, Texas 75087
                            ------------------------
                            TELEPHONE (214) 212-2307






                          INDEPENDENT AUDITOR'S REPORT



To the Board of Directors of
Wholesale On The Net, Inc.


         I have reviewed the accompanying balance sheet of Wholesale On The Net,
Inc. (a Nevada  corporation) as of December 31, 2000, and the related statements
of operations, retained earnings and accumulated deficit, and cash flows for the
three  months then  ended,  in  accordance  with  Statements  on  Standards  for
Accounting  and Review  Services  issued by the American  Institute of Certified
Public Accountants.  All information  included in these financial  statements is
the representation of the management of Wholesale On The Net, Inc.

         A review  consists  primarily  of inquiries  of Company  personnel  and
analytical  procedures  applied to financial data. It is  substantially  less in
scope than and audit in accordance with generally  accepted auditing  standards,
the objective of which is the  expression of an opinion  regarding the financial
statements taken as a whole. Accordingly, I do not express such an opinion.

         Based on my review, I am not aware of any material  modifications  that
should be made to the accompanying  financial statements in order for them to be
in conformity with generally accepted accounting principles.



                                                /s/  Charles E. Smith
                                                --------------------------------
                                                     Charles E. Smith
                                                     Certified Public Accountant



Rockwall, Texas
February 14, 2001











                                       F-1

<PAGE>


<TABLE>

<CAPTION>




                           WHOLESALE ON THE NET, INC.
                          (a Development Stage Company)

                                 BALANCE SHEETS
                       December 31, 2000 and June 30, 2000



                                     ASSETS
                                     ------

                                                                        Dec 31, 2000          June 30, 2000
                                                                      ------------------    ------------------
<S>                                                                   <C>                   <C>

CURRENT ASSETS:
    Cash                                                                        $36,490                  $853

PROPERTY AND EQUIPMENT:
    Equipment (net of accumulated depreciation of $24)                            4,466                   244
    Website (net of accumulated amortization of $7,222)                          12,778                16,111

                                                                      ------------------    ------------------

TOTAL ASSETS                                                                    $53,734               $17,208
                                                                      ==================    ==================




                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------


LIABILITIES
     Advances from officer                                                       $1,518                $1,518
                                                                      ------------------    ------------------
TOTAL CURRENT LIABILITIES                                                         1,518                 1,518

STOCKHOLDERS' EQUITY
    Common stock, $0.001 par value                                                1,268                 1,000
    Additional paid-in-capital                                                   79,820                23,400
    Accumulated Deficit                                                         (28,872)               (8,710)
                                                                      ------------------    ------------------
        Total Stockholders' Equity                                               52,216                15,690
                                                                      ------------------    ------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                      $53,734               $17,208
                                                                      ==================    ==================

</TABLE>














See accompanying notes                F-2

<PAGE>

<TABLE>

<CAPTION>

                           WHOLESALE ON THE NET, INC.
                          (a Development Stage Company)

                             STATEMENT OF OPERATIONS

               Three months ended December 31, 2000 and 1999, and
           Period from Inception (June 30, 1999) to December 31, 2000

                                                                                                   Period from
                                                                                                    Inception
                                                          Three months      Three months         (June 30, 1999)
                                                              ended             ended                  to
                                                          Dec 31, 2000      Dec 31, 1999          Dec 31, 2000
                                                        ------------------------------------    ------------------
<S>                                                     <C>                 <C>                 <C>


REVENUE:
    Sales                                                          11,945             1,050               $15,744
                                                        ------------------------------------    ------------------
    Total revenue                                                 $11,945            $1,050               $15,744

COST OF SALES:                                                     10,153               682                13,091
                                                        ------------------------------------    ------------------

GROSS PROFIT                                                        1,792               368                 2,653

OPERATING EXPENSE:
    Depreciation and amortization                                   1,676               556                 7,247
    Rent - related party                                              600               600                 3,600
    Consulting - related party                                                                              1,500
    General and administrative                                     17,240                13                19,234
                                                        ------------------------------------    ------------------
        Total Operating Expense                                    19,516             1,169                31,581
                                                        ------------------------------------    ------------------

INCOME FROM OPERATIONS                                            (17,724)             (801)              (28,928)

OTHER INCOME:
    Interest income                                                    39                 1                    56
                                                        ------------------------------------    ------------------

NET LOSS                                                         ($17,685)            ($800)             ($28,872)
                                                        ====================================    ==================


Weighted average shares outstanding                             1,000,000         1,000,000             1,000,000
                                                        ====================================    ==================

LOSS PER SHARE                                                     ($0.02)           ($0.00)               ($0.00)
                                                        ====================================    ==================

</TABLE>













See accompanying notes                F-3

<PAGE>

<TABLE>

<CAPTION>

                           WHOLESALE ON THE NET, INC.
                          (a Development Stage Company)


            STATEMENT OF STOCKHOLDERS' EQUITY AND ACCUMULATED DEFICIT
           Period from Inception (June 30, 1999) to December 31, 2000




                                                  Common                     Paid In         Accumulated
                                         Shares            Amount            Capital           Deficit                Total
                                    ------------------------------------------------------------------------    ------------------
<S>                                 <C>                    <C>               <C>             <C>

Balance,
        June 30, 1999
        (date of inception)                       -0-               -0-               -0-               -0-                   -0-

Shares issued on
        July 1, 1999 for:
           Cash                               150,000               150               350                                     500
           Services                           450,000               450             1,050                                   1,500

       August 27, 1999 for:
           Cash                               400,000               400            19,600                                  20,000

Paid in capital by officer (rent)                                                   2,400                                   2,400

Net Loss                                                                                             (8,710)               (8,710)

                                    ------------------------------------------------------------------------    ------------------
Balance
        June 30, 2000                       1,000,000            $1,000           $23,400           ($8,710)              $15,690
                                    ========================================================================    ==================


Paid in capital by officer (rent)                                                     600                                     600

Net Loss - three months
      ended September 30, 2000                                                                       (2,477)               (2,477)

                                    ------------------------------------------------------------------------    ------------------
Balance
        September 30, 2000                  1,000,000             1,000            24,000           (11,187)               13,813


Sale of common stock                          268,300               268            55,220                                  55,488

Paid in capital by officer (rent)                                                     600                                     600

Net Loss - three months
      ended December 31, 2000                                                                       (17,685)              (17,685)

                                    ------------------------------------------------------------------------    ------------------
Balance
        December 31, 2000                   1,268,300             1,268            79,820           (28,872)               52,216
                                    ========================================================================    ==================
</TABLE>




See accompanying notes                F-4

<PAGE>

<TABLE>

<CAPTION>

                           WHOLESALE ON THE NET, INC.
                          (a Development Stage Company)

                             STATEMENT OF CASH FLOWS

               Three months ended December 31, 2000 and 1999, and
           Period from Inception (June 30, 1999) to December 31, 2000

                                                                                                                   Period from
                                                                                                                    Inception
                                                                          Three months      Three months         (June 30, 1999)
                                                                              ended             ended                  to
                                                                          Dec 31, 2000      Dec 31, 1999          Dec 31, 2000
                                                                        ------------------------------------    ------------------
<S>                                                                     <C>                 <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                                     ($17,685)            ($800)             ($28,872)
    Adjustments to reconcile net loss to net
            cash (used) by operating activities:
                Items not requiring cash - depreciation                             1,676               555                 7,246
                Items not requiring cash - rent - paid in capital                     600               600                 3,600
                Items not requiring cash - stock issued for services                                                        1,500
                Increase in current liabilities                                                         683                 1,518

                                                                        ------------------------------------    ------------------
NET CASH (USED) BY OPERATING ACTIVITIES:                                          (15,409)            1,038               (15,008)


CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of assets                                                             (4,240)                                 (4,490)

CASH FLOWS FROM FINANCING ACTIVITIES:
    Sale of common stock                                                           55,488                 0                55,988
                                                                        ------------------------------------    ------------------
    Total cash flows from financing activities                                     55,488                 0                55,988

                                                                        ------------------------------------    ------------------

NET INCREASE IN CASH                                                              $35,839            $1,038               $36,490

CASH, BEGINNING OF PERIOD                                                             651               177                     0
                                                                        ------------------------------------    ------------------

CASH, END OF PERIOD                                                               $36,490            $1,215               $36,490
                                                                        ====================================    ==================

</TABLE>


Note:  Non-cash  investing activity was incurred in August 1999 when the company
issued common stock for the development of its website valued at $20,000.











See accompanying notes                F-5


<PAGE>

                           WHOLESALE ON THE NET, INC.

                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000

Note A - Nature of Business and Summary of Significant Accounting Policies:
---------------------------------------------------------------------------
History:  The Company was organized June 30, 1999 under the name of Wholesale On
The Net, Inc. in the State of Nevada.  The Company's  business plan outlines its
plan of operations which is to sell products over the internet.

Basis of Accounting:
--------------------
It is the Company's  policy to prepare its  financial  statements on the accrual
basis of accounting in conformity with generally accepted accounting principles.
Sales are recorded as income in the period in which they are earned and expenses
are recognized in the period in which the related liability is incurred.

Revenue Recognition:
--------------------
Revenue is  recognized  when goods are shipped and  invoiced.  The Company  will
purchase  goods and resell  them;  on these items  revenue is booked at the full
sales price and the respective  cost of sales  recorded.  On items that are drop
shipped by a manufacturer  directly to a customer,  the sale price less the cost
of the item is recorded as income.

Cash and Cash Equivalents:
--------------------------
For purposes of the  statement of cash flows,  the Company  considers all highly
liquid  debt  instruments  with a  maturity  of three  months or less to be cash
equivalents.

Loss per Common Share:
----------------------
Loss  applicable  to common  share is based on the  weighted  average  number of
shares of common stock outstanding during the year.

Accounting Estimates:
---------------------
The preparation of financial  statements in conformity  with generally  accepted
accounting   principles  requires  management  to  make  certain  estimates  and
assumptions  that affect the amount  reported in the  financial  statements  and
accompanying notes. Actual results could differ from those estimates.

Income Tax:
-----------
The Company is subject to the greater of federal income taxes computed under the
regular system or the alternative  minimum tax (ATM) system. The Company uses an
asset and  liability  approach for the  accounting  and  financial  reporting of
income  tax.  Under  this  method,  deferred  tax  assets  and  liabilities  are
determined based on temporary differences between the financial carrying amounts
and the tax bases of assets and liabilities using enacted tax rates in effect in
the years in which the temporary differences are expected to reverse.

                                       F-6


<PAGE>


                           WHOLESALE ON THE NET, INC.

                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2000


Note B - Web site:
------------------

The  Company's  primary  asset  is its  web  site  which  is the  center  of its
operational and income generating activities for which it paid $20,000. The cost
of the web site is being  amortized  over three years  starting in December 1999
when it was completed.

Note C - Advances from officer:
-------------------------------

During the period from inception (June 30, 1999) through  December 31, 2000, the
President paid expenses ($1027 for product,  $70 for domain  registration,  $331
for shipping and $90 for office  supplies) on behalf of the Company for which he
has not been repaid.  The Company does not owe interest on these  advances,  and
the advances are to be repaid when the Company  makes a profit from  operations.
These amounts have been recorded as a current liability.

Note D - Stockholders' Equity:
------------------------------

Common Stock:
-------------
The Company is  authorized to issue  25,000,000  common shares of stock at a par
value of $0.001 per share. These shares have full voting rights. At December 31,
2000 and June 30, 2000,  there were 1,268,300 and 1,000,000  shares  outstanding
respectively.

The Company has not paid a dividend to its shareholders.

Note E - Income Taxes:
----------------------

The Company had a net operating loss of $28,872 since its inception. No deferred
tax asset has been recognized for the operating loss as any valuation  allowance
would reduce the benefit to zero.

Note F - Going Concern:
-----------------------

The Company has minimal capital resources available to meet obligations expected
to be  incurred  given  that  it is a  start  up  enterprise.  Accordingly,  the
Company's continued existence is dependent upon the successful  operation of the
Company's plan of operations,  selling common stock in the Company, or obtaining
financing.  Unless  these  conditions  among  others are met, the Company may be
unable to continue as a going concern.


                                       F-7

<PAGE>


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


Results of Operations

The Registrant  filed a registration  statement on Form SB-1 with the Securities
and  Exchange  Commission  to  raise a  minimum  of  $50,000  and a  maximum  of
$1,000,000  which became  effective on September 20, 2000.  The  Registrant  has
raised  $117,075 under that  registration  statement and as of December 31, 2000
had sold  268,300  shares;  the  offering  was cut off on January 18, 2001 after
selling 468,300 shares at $0.25 per share.

The  Registrant is engaged in the sale of products  over the  internet.  At this
time,  framed art and air and water  filters are sold.  The funds  raised in the
offering have allowed us to start an advertising  program and, at the end of the
quarter, the results of that advertising were seen as orders were received.  Our
total sales for the quarter  ended  December 31, 2000 were  $11,945  compared to
sales of $1,050 for the same period in 1999.  The expenses  rose due to one time
fees of $6,475 paid to get trading on the NASDAQ  Bulletin  Board (OTCBB  symbol
WHSO) and  advertising  expenses of $10,000 which were  available from the funds
raised in the public offering.

Liquidity

The Registrant  has liquid assets at December 31, 2000 of $36,490  compared with
liquid  assets of $853 at June 30, 2000 and $1,215 at December  31,  1999.  This
amount includes the funds raised in the offering described above and we will use
the  funds in  accordance  with  our plan as  outlined  in the  above  mentioned
registration statement.

The Registrant has minimal expenses and no commitments.

Capital Resources

The Registrant's capital resources have been generated from the sale of products
through its web site and has capital resources  generated from the sale of stock
under its registration statement that became effective September 20, 2000.

There were no plans or  requirements  for  purchase of capital  items during the
quarter for company purposes except for the computer equipment  purchased in the
amount of $4,240.  The Registrant does not foresee any material capital purchase
in the coming twelve months.



                                        8

<PAGE>



PART II.     OTHER INFORMATION


Item  1.     Legal Proceedings.

                  The Company is not involved in any legal proceedings.

Item  2.     Changes in Securities.

                  Registrant has made no changes in its securities.

Item  3.     Defaults Upon Senior Securities.

                  Registrant  has  no  senior   securities  and  accordingly  no
defaults.

Item  4.     Submission of Matters to a Vote of Security Holders.

                  Registrant submitted no matters to a vote of security holders.

Item  5.     Other Information.

                  None.

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

                  None.




                                        9

<PAGE>


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.

                                                    Wholesale On The Net, Inc.
                                                    ---------------------------
                                                     (Registrant)


                                                    BY:  /s/ Thomas Bieger
                                                         ---------------------
                                                          Thomas Bieger
                                                    Its: President and Secretary

DATE:   February 17, 2001
        Garland, Texas