FORM 10-KSB

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   (Mark One)
                [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D)
                 OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE
                  For the fiscal year ended: September 30, 2002
                                       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: 333-44188

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

                         Texas                 74-2891747
                (State of incorporation)    (IRS Employer ID No.)

                      2935 Thousand Oaks, #261
                         San Antonio, TX                 78247
              (Address of principal executive offices) (Zip Code)


       Registrant's telephone number, including area code: (210) 545 3570

        SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: None
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: Common Stock, $0.001
                                    par value

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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[ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]

State issuer's revenues for year ended September 30, 2002: $138,485

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by reference to the price at which the common equity
was sold, or the average bid and asked price of such common equity as of January
14, 2003, was: $216,767

Number of shares of the registrant's common stock outstanding as of January 14,
2003 was: 15,335,342

DOCUMENTS INCORPORATED BY REFERENCE - None


                                                                          Page 1
<PAGE>
                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS.

GENERAL

Nannaco, Inc. ("Nannaco or the "Company") is a publicly traded company listed on
the OTC Electronic Bulletin Board under the symbol "NNCO".  The Company was
incorporated under the laws of the State of Texas on October 20, 1998, and
immediately began operations. The Company became publicly traded on September 5,
2002 on the OTCBB.  The Company provides industrial surface cleaning, surface
protection, surface restoration, and other services to commercial and industrial
businesses, as well to the owners of historical buildings. The Company operates
under the trade name of Surface Pro in order to relate to the principal business
activity, since the Nannaco name does not indicate the type of business.

Since our incorporation in October of 1998, we have focused on industrial
surface cleaning, surface protection and restoration.  We specialize in:

-     Pressure cleaning
-     Pre-coating surface preparation
-     Chemical coating on surfaces such as sidewalks and exterior walls
-     Kitchen vent hood maintenance programs (primarily for restaurants)
-     Providing historical preservation products and services
-     Solid waste container maintenance
-     Engine and machinery de-greasing
-     Residential services
-     Historical Restorations

SERVICES

Additionally, Nannaco provides surface maintenance and restoration services to
residential and commercial markets.  Much of our activity is based on custom
tailored solutions to our client's individual problems.  Specifically, our
services include, but are not limited to:

Pressure Cleaning
-----------------

Our pressure cleaning procedures vary with each application.  We clean wood,
glass, stone, concrete, masonry and exposed aggregate.  Each requires a
different cleaning approach.  For example, the surface and other factors will
determine whether we use water vs. steam, heat vs. cold, wide-area attachment
vs. wand cleaning, sprayed-on or pump-injected chemical applications or water
only cleaning.  We maintain a complete line of equipment and accessories as well
as a documented library of procedures for all applications.  Since our
incorporation, we have continued to add new processes, chemicals, equipment and
technique documentation to our library as we develop new procedures.  Currently,
the trade association Power Washers of North America can certify the extensive
nature of our pressure cleaning resources.  Nannaco is a certified member of
this trade association. Among other tasks, we pressure clean solid waste
containers, we de-grease engines with pressure, and we conduct fleet washing
with pressure cleaning.

Pre-coating Surface Preparation for walls, exteriors, etc.
----------------------------------------------------------

Surface preparation usually follows pressure cleaning procedures.  The primary
difference between pressure cleaning and surface preparation is that preparation
work requires either chemical or mechanical etching.  That means that either
high-friction equipment or chemicals such as very strong acids are used to
prepare a surface to accept some type of sealant or coating.  Two of the
processes we employ for preparation work are sandblasting and shot-blasting,
which is a process by which tiny metal ball bearings are propelled against
horizontal epoxy surfaces to break out existing coating.  We also use
ultra-high-pressure water abrading systems, acid etching, and magnetized water
saturating on limestone applications.


                                                                          Page 2
<PAGE>
As with pressure cleaning, the processes utilized in surface preparation are as
diverse as the substrate being prepared. We maintain a complete inventory of
equipment and chemicals for common applications.  We also subcontract certain
types of high-rise set-up equipment to reduce liabilities.

Chemical Coating Applications for sidewalks and exterior walls.
--------------------------------------------------------------

Following is a partial list of some of the types of coatings we apply:

-    Oil based, penetrating sealers for wood restoration
-    Silicon-based, encapsulating sealers for masonry and some stone
     applications
-    Acrylic sealers on exposed aggregate and other "high gloss" horizontal
     surfaces
-    Xyloxenes to eliminate porosity in sedimentary stones such as limestones

Chemical coatings incorporate three of our processes: pressure cleaning, surface
preparation and the actual application of product.

Historical Restoration
----------------------

Historical Building Restoration is a process which incorporates three of our
services: pressure cleaning, surface preparation, and coating application.  We
combine these services to provide the most delicate of our objectives, which is
reducing or eliminating evidence of time (erosion or other damage) from a piece
of historically significant architecture.  These processes are often time
consuming and labor intensive since pressure cleaning is generally substituted
with steam applications, and acid etchers are replaced by milder solvents to
achieve the type of substrate protection necessary to comply with many
preservation society maintenance codes.  We have provided restoration services
on five projects for the South Texas Catholic Archdiocese in Texas to date.

Kitchen Vent Hood Maintenance
-----------------------------

Restaurants, delicatessens and other food service establishments generally have
big exhaust systems mounted over their cooking equipment.  These hoods collect
grease and dirt, and can be hazardous if not properly maintained.   Fire
Marshals require hoods to be cleaned from the hanging hood and fan, all the way
up the flue, through the ceiling and out the vent, which are mounted on the
roof.   We begin on the roof, using a special synthetic de-greaser and steam
machines at high pressure with a low flow-rate to clean the entire system down
to the bare metal.  We then check the safety system latches and tag the system
for inspection by the Fire Marshall.

Fleet and Heavy Equipment Services
----------------------------------

We clean fleet service vehicles and de-grease engines on heavy equipment in
order to keep them running cooler.  This service is part of one of our regular
preventative maintenance programs.  Water temperatures range from 140-200
degrees Fahrenheit, and we use pressure anywhere from 3000 to 6000 psi.  For
aluminum trailers, we utilize acidizing techniques.


                                                                          Page 3
<PAGE>
Solid Waste Containers
----------------------

We provide an on-site service for some of our waste management clients.  We
regularly visit receptacle sites and provide exterior cleaning, graffiti removal
and touch-up painting on solid waste containers.

Residential Services
--------------------

We perform cleaning and sealing services for decks, patios, fences, arbors,
sidewalks, driveways, exterior walls, and many outdoor furnishings such as
furniture sets, planters, fountains and children's play sets. We offer complete
restoration and preservation services in the exterior residential market.

Contaminated Soil and Water Removal and Hauling Services
--------------------------------------------------------

In the state of Texas there are currently an estimated 45,000 oil
industry-related abandoned contaminated sites.  We have chosen oil field site
remediation as our entry point into this market.  We are currently in
negotiations with the state of Texas to clean up an abandoned salt-water
decontamination site.

These sites are typically less than a half acre in size and our services will be
sub-contracted from the State or other responsible party which drafts and
supervises the entire cleanup process for the site.  The sites are typically
abandoned well drilling sites, some of which have pits or open tanks with used
drilling equipment cleaning sludge.  We expect our abandoned oil industry site
remediation will involve the removal of contaminated water and sludge using
vacuum pumps to tanker trucks to be delivered to a hazardous waste disposal
site.  We will also remove debris and the top layer of contaminated soil for
transport to a disposal site.  Well holes will be capped with concrete.  Cleaned
pits will be lined with a water impermeable layer and sealed with concrete.

We have obtained the permits for hazardous material transportation from the U.S.
Department of Transportation.  At present we are able to bid as a sub-contractor
to a fully licensed hazardous waste site remediation service provider in the
State of Texas.  We have also obtained the full time service of key
environmental personnel with the proper licenses and experience.  The personnel
include federally registered Environmental Compliance Officers, Department of
Transportation-permitted Environmental Emergency and First Responders, EPA
Hazardous Material Handlers, and Department of Defense-licensed Hazardous
Material Waste Site Managers.

We are not required to obtain an EPA identification number or permit.   EPA
Identification numbers are fixed-site specific and must be obtained by the
fixed-site owner who is the individual or entity, which owns the contaminated
property and is liable for its clean-up of each specific project.

CUSTOMER  LIST

Our customers come from both the commercial and residential market sectors.  The
most typical commercial customer is a store or commercial truck company.  A
partial list of current customers includes the San Antonio to Houston, Texas
locations of American Freightways, Earth Grains, St. Mary's University, Allied
Van Lines, Continental Airlines, North American Van Lines, HEB Grocery Company,
Albertson's Groceries, the Kroger Company, Texas Disposal Systems, Southton
Convenience Stores, Olmos Construction, TETCO, Fiesta Texas, Lozano Trucking,
Diamond Shamrock, Otis Spunkmeyer Cookies, and Scobey Moving Services.  The
Archdiocese of San Antonio and the San Antonio Preservation Society have both
recommended us for restoration and historic preservation work.  We are on the
Texas State Contracts Vendors' List.


                                                                          Page 4
<PAGE>
THE MARKET

We have not prepared or commissioned an in-depth study of the market for our
services in south and central Texas or other urban, suburban or industrial areas
of the United States.  However, based upon our growth with limited marketing
efforts, we believe that the market for our services exceeds our present and
planned capacity.  We believe that our market crosses many industrial
classifications with hundreds of thousands if not millions of potential
customers.  We believe the categories of potential customers include:

     Homeowners with decks, driveways and fences
     Retail businesses with outdoor exteriors and walkways
     Businesses using fleets of vehicles such as trucks, vans, earth moving
     equipment,
     airplanes, boats and ships
     Office building owners
     Historical building owners
     Businesses using oil, natural gas and mining equipment

MARKETING PLAN

Historically, referrals have been our largest source of new customers.  During
the current fiscal year we have begun a marketing campaign with direct mail
advertising to potential residential customers.  We will plan other media-based
approaches during the upcoming fiscal year based upon our ability to procure
financing.

PRICING

Pricing for our services varies greatly depending on specific needs of each
project, such as equipment, chemicals or personnel required.  We periodically
review the advertised prices of competitors for standard pressure washing and
attempt to maintain commercial prices 25% below comparable competitor pricing.

Our residential prices are 10 - 15% higher than most other local companies
claiming similar services.  However we believe that we provide a superior level
of services, use the best people and materials available, and provide liability
coverage for our work.

RISK FACTORS

GOING CONCERN RISK

We have had and could have losses, deficits and deficiencies in liquidity, which
could impair our ability to continue as a going concern.

In Note #1 to our consolidated financial statements, our independent auditors
have indicated that certain factors raise substantial doubt about our ability to
continue as a going concern. Since its inception, the Company has suffered
recurring losses from operations. During the years ended September 30, 2002  and
2001, the Company reported net losses and negative cash flows from operations as
follows:

                                         2002          2001
                                      -----------  -----------
Net loss                               $(268,312)   $(753,110)
Negative cash flows from operations    $(222,183)   $(655,476)

The Company's continuing negative operating results have produced a retained
deficit of $(4,071,608) at September 30, 2002. Additionally, the Company had no
assets as of September 30, 2002.  These factors raise substantial doubt about
the Company's ability to continue as a going concern.


                                                                          Page 5
<PAGE>
The Company's strategic plan for dealing with its cash flow problems is
currently being developed, but may include additional private placements of the
Company's common stock, reduction in officer salaries or curtailment of existing
operations.  There can be no assurance that any of the plans developed by the
Company will produce cash flows sufficient to overcome current liquidity
problems.

IMPLEMENTATION OF BUSINESS STRATEGY DEPENDENT ON ADDITIONAL FINANCING

Our plan of operation calls for additional capital to facilitate growth and
support long-term development and marketing programs. It is likely that we will
seek additional financing through subsequent future public or private sales of
our securities, including equity securities, borrowing, or other sources of
third party financing. Further, the sale of equity securities would
substantially dilute our existing stockholders' interests, and borrowings from
third parties could result in our assets being pledged as collateral. Loan
terms, which would increase our debt service requirements, could restrict our
operations. There is no assurance that we can obtain financing on favorable
terms. Any such additional financing may result in significant dilution to
existing stockholders.  We may also seek funding for the development and
marketing of our services through strategic partnerships and other arrangements
with investment partners. There can be no assurance, however, that such
collaborative arrangements or additional funds will be available when needed, or
on terms acceptable to us, if at all. If adequate funds are not available, we
may be required to curtail one or more of our future programs.

GOVERNMENTAL REGULATION

We are subject to general business regulations, including Texas and Federal
environmental and hazardous material handling regulations. The majority of our
services do not result in air pollution emissions or waste water discharge and
no special environmental permits or licenses are required.  However, projects
that involve the cleaning and removal of hazardous waste do require specific
permits, which are obtained by the site owner or operator who then contracts
with licensed handlers and disposal sites.  We have obtained the necessary
licenses from the State of Texas to conduct this portion of our business.   In
addition, our products are used by companies, which are subject to regulation by
various governmental agencies, such as the Environmental Protection Agency,
Edwards Aquifer Authority, Texas Natural Resources Commission and the Bexar
County Water District, and our services must comply with such regulations.

The environmental regulation of fleet-cleaning services involves the containment
of the oil and grease runoff that results when large pieces of equipment are
washed with pressure washers.  The regulatory agencies include the U.S.
Environmental Protection Agency and the Edwards Underground Water District
because much of our work is performed within this district.  We use a wastewater
containment system that meets the standards set by the District and the
Environmental Protection Agency.  Our containment mat and pumping system allows
our clients to meet Department of Transportation requirements set up to regulate
the over-the-road trucking industry as well as Edwards aquifer restrictions.

We do not need to obtain an EPA identification number or permit to act as a
sub-contractor for contaminated soil and water removal and hauling services with
respect to brown field cleanup. EPA Identification numbers are fixed-site
specific and must be obtained by the fixed-site owner.  This is the actual
individual or entity, which owns the contaminated property and is liable for the
cleanup of each specific project.  These numbers are not issued to cleanup and
transport vendors or subcontractors which is the category into which we fall.
Our participation in brown field reclamation projects consists of being
sub-contracted for the removal and transport of contaminated soil and water.


                                                                          Page 6
<PAGE>
We were issued a permanent Hazardous Waste Transportation Registration, Number
072400 851 0081, by the U. S. Department of Transportation.  Annual registration
costs for the license are $350.00.  The permit allows us to evacuate hazardous
materials from immediate response site remediation locations and deposit it at
approved disposal locations.  It also allows us to clean and pump runoff to
tankers at oil cleanup operations.  Costs associated with Environmental
Emergency Response and Site Cleanup Operations include annual re-certification
requirements for team members to meet the requirements of 29CFR1910.120, NAPA
472, and NFPA 1561, and purchase of specialized hazardous materials certified
equipment.  Costs for certification/re-certification courses for four team
members total $2,850.00 per year.  Purchase of start-up equipment to meet
regulatory agency certifications is estimated at $6,300.00.

On the state level, we are registered with the Texas Consolidated Master
Bidder's List.  Being on this list allows us to bid on State Contracts.  Our
only remaining registration requirement is a P-5 registration with the Railroad
Commission of Texas.  Our P-5 forms have been completed and are on file with the
Railroad Commission.  This form is processed after a bid is approved.  The
turnaround time for registration takes 1 to 2 business days after a bid has been
accepted.

INSURANCE RISKS

We face high insurance risks and the possibility of uninsured losses and this
may prevent profitability.

There are certain risks associated with companies engaged in businesses
involving pressure cleaning, pre-coating and surface preparation, chemical
coating and historical preservation. The use of pressure machinery and chemicals
exposes us to potential liability if substances are inappropriately used.
Additionally, we could be exposed to certain risks for environmental damage and
manufacturer's and workers' liability costs. The combined insurance risks and
the possibility of uninsured losses could cause us irreparable financial harm
and force us to liquidate all or part of our assets.

ENVIRONMENTAL MATTERS

Environmental laws regulate, among other things, the transportation, storage,
handling and disposal of waste. Moreover, so-called "toxic tort" litigation has
increased markedly in recent years as persons allegedly injured by chemical
contamination seek recovery for personal injuries or property damage. These
legal developments present a risk of liability should we be deemed to be
responsible for contamination or pollution caused or increased by any
remediation services provided by us, or for an accident which occurs in the
course of remediation or cleanup efforts. There can be no assurance that our
policy of establishing and implementing proper procedures for complying with
environmental regulations will be effective at preventing us from incurring a
substantial environmental liability. If we were to incur a substantial uninsured
liability for environmental damage, our financial condition could be materially
adversely affected.

Furthermore, we may from time to time become subject to governmental enforcement
proceedings and resulting fines or other sanctions and may incur penalties. Such
expenditures could be substantial and accordingly could have a material adverse
effect on our financial condition. We presently have the ability to perform soil
remediation and recycling services that meet applicable federal and state
standards for the delivery of such services, and the standards for the level of
contaminant removal. The government can, however, impose new standards. If new
regulations were to be imposed, we may not be able to comply in either the
delivery of services, or in the level of contaminant removed from the soil.


                                                                          Page 7
<PAGE>
WEATHER

Weather can and does play a significant factor in revenue and liquidity.
Throughout the summer of 2000, we were faced with the prospect of water
shortages, which could have resulted in forced curtailment of operations due to
either higher water cost or actual restrictions on outdoor use.  During the fall
of 2000, and in the winter of 2001 extensive rainfall limited the work that
could be performed out of doors.  As ever, we cannot predict any future weather
trends and their effect on our revenues.

COMPETITION

We operate in a highly competitive environment.  However, our principal
competitors tend to be relatively small businesses working primarily on referral
basis.  We believe the means of competition is predominately based upon customer
satisfaction with timeliness and results.  With respect to fleet washing, we
also compete with the cost of in-house fleet cleaning.   We also compete with a
Houston, Texas based company which handles substantially larger commercial
businesses than we do.  This competitor has substantially greater resources than
we do.  Our strategy to compete with this competitor is primarily by servicing
residential and smaller commercial projects that the competitor does not pursue.

EMPLOYEES

As of December 1, 2002, Nannaco employed three people, all of whom are full-time
individuals whose principal responsibilities are operations, sales, marketing,
customer service, and administration.  Our staff is not presently covered by any
collective bargaining or union relationship.

We utilize contract employees from the surrounding area as needed versus
in-house employment in order to maintain a low overhead.

ITEM 2. DESCRIPTION OF PROPERTY.
--------------------------------

Nannaco operates out of two primary locations, both located in the north-central
area of San Antonio.  The first is a 10,000 square foot warehouse facility
housing all equipment, chemical inventories and operations offices. This
facility is leased on a yearly basis.  We currently lease this facility for
$11,400 per year.

Our second facility is our administrative office.  We currently lease this
facility on a yearly basis at a cost of $6,420 per year. All administrative
duties are conducted at this location.

ITEM 3. LEGAL PROCEEDINGS.
--------------------------

JUDGMENT PAYABLE The company is currently in litigation with the Wyndham Hotel
Corporation concerning a debt for unpaid lodging and meal charges which arose as
a result of a convention sponsorship.  On June 14, 2002, the Wyndham obtained a
summary judgment against NANNACO, Inc. in the amount $32.045, plus $10,263 legal
fees.  Interest to September 30, 2002, was $2,128.  Until paid, the interest
accrues at a rate of 10%, or $11.60 per day.  At this time, according to the
Company's legal counsel, the matter is on hold until further notice

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

None

                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
-----------------------------------------------------------------

There are presently 15,335,342 shares of common stock outstanding as of January
14, 2003 of which 11,099,000 are restricted securities held by three members of
Management which have held the shares for over one year.

There were 41 shareholders of record on January 14, 2003. This number does not
include shares that maybe held in CEDE.  Management estimates that the actual
number of shareholders exceeds this numbers.

The bid price of our common stock was .06 cents per share on January 14, 2003


                                                                          Page 8
<PAGE>
The following table sets forth certain information as to the high and low bid
quotations quoted on the OTC Bulletin Board since the company began trading on
September 5, 2002.  Information with respect to over-the-counter bid quotations
represents prices between dealers, does not include retail mark-ups, markdowns
or commissions, and may not necessarily represent actual transactions.

                             Period     High     Low
                            --------   ------   -----
                             2002
           Fourth Quarter                .47     .25

The bid price of our common stock was .06 per share on January 14, 2003.

TRANSFER AGENT AS OF JANUARY 14, 2003:

Computershare Trust Company, Inc.
PO Box 1596
Denver, CO 80201
Telephone: (303) 262-0600
Fax: (303) 262-0603

DIVIDENDS

We do not intend to retain future earnings to support our growth. Any payment of
cash dividends in the future will be dependent upon: the amount of funds legally
available therefore; our earnings, financial condition, capital requirements and
other factors which our Board of Directors deems relevant.

<TABLE>
<CAPTION>
EQUITY COMPENSATION PLAN INFORMATION

--------------------------------------------------------------------------------------------------------------------------------
                                                                                                      NUMBER OF SECURITIES
                                                                                                    REMAINING AVAILABLE FOR
                                 NUMBER OF SECURITIES TO BE                                       FUTURE ISSUANCE UNDER EQUITY
                                  ISSUED UPON EXERCISE OF         WEIGHTED-AVERAGE EXERCISE            COMPENSATION PLANS
                               OUTSTANDING OPTIONS, WARRANTS    PRICE OF OUTSTANDING OPTIONS,   (EXCLUDING SECURITIES REFLECTED
                                         AND RIGHTS                  WARRANTS AND RIGHTS                 IN COLUMN (a))
      PLAN CATEGORY                         (a)                              (b)                              (c)
--------------------------------------------------------------------------------------------------------------------------------
<S>                            <C>                              <C>                             <C>
Equity compensation plans
approved by security holders             -0-                               -0-                               -0-
--------------------------------------------------------------------------------------------------------------------------------
Equity compensation plans not
approved by security holders             40,000                          $1.00                               -0-
--------------------------------------------------------------------------------------------------------------------------------
          TOTAL                          40,000                          $1.00                               -0-
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                                                          Page 9
<PAGE>
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

The following is a discussion of our financial condition, results of operations,
liquidity and capital resources. This discussion should be read in conjunction
with our Consolidated Financial Statements and the notes thereto included
elsewhere in this Form 10-KSB.

FORWARD-LOOKING INFORMATION-GENERAL

This report contains a number of forward-looking statements, which reflect the
Company's current views with respect to future events and financial performance
including statements regarding the Company's projections.  These forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical results or those
anticipated.  In this report, the words "anticipates", "believes", "expects",
"intends", "future", "plans", "targets" and similar expressions identify
forward-looking statements.  Readers are cautioned to not place undue reliance
on the forward-looking statements contained herein, which speak only as of the
date hereof the Company undertakes no obligation to publicly revise these
forward-looking statements, to reflect events or circumstances that may arise
after the date hereof. Additionally, these statements are based on certain
assumptions that may prove to be erroneous and are subject to certain risks
including, but not limited to, the Company's dependence on limited cash
resources, and its dependence on certain key personnel within the Company.
Accordingly, actual results may differ, possibly materially, from the
predictions contained herein.

OVERVIEW

Nannaco's objective is to maximize shareholder value by focusing on growth,
product innovation and profitability.  The following discussion highlights
Nannaco's performance and should be read in conjunction with the Consolidated
Financial Statements and related notes included therein.

We have had and could have losses, deficits and deficiencies in liquidity, which
could impair our ability to continue as a going concern.

In Note #1 to our consolidated financial statements, our independent auditors
have indicated that certain factors raise substantial doubt about our ability to
continue as a going concern. Since its inception, the Company has suffered
recurring losses from operations. During the years ended September 30, 2002  and
2001, the Company reported net losses and negative cash flows from operations as
follows:

                                         2002          2001
                                     ------------  ------------
Net loss                               $(268,312)   $(753,110)
Negative cash flows from operations    $(222,183)   $(655,476)

The Company's continuing negative operating results have produced a retained
deficit of $(4,071,608) at September 30, 2002. Additionally, the Company had no
assets as of September 30, 2002.  These factors raise substantial doubt about
the Company's ability to continue as a going concern.

The Company's strategic plan for dealing with its cash flow problems is
currently being developed, but may include additional private placements of the
Company's common stock, reduction in officer salaries or curtailment of existing
operations.  There can be no assurance that any of the plans developed by the
Company will produce cash flows sufficient to overcome current liquidity
problems.

We have been in operation since October 1998, beginning with varied treatments
for commercial exterior surfaces.   Since that time we have expanded to include
our residential services, other commercial services and vehicle cleaning.
Beginning in the current fiscal year, we have begun contaminated soil and water
removal and hauling services.  Also, we have begun negotiations concerning one
merger and one business development entity within the corporation that we intend
to implement in 2003.


                                                                         Page 10
<PAGE>
RESULTS  OF  OPERATIONS  FOR  FISCAL  YEAR  ENDED SEPTEMBER 30, 2002 COMPARED TO
FISCAL  YEAR  ENDED  SEPTEMBER  30,  2001

We had income from operations of $138,485 for the fiscal year ended September
30, 2002 and $290,917 for the fiscal year ended September 30, 2001.   Cost of
Sales was $40,513 for fiscal 2002 as compared to $398,583 for fiscal 2001.  The
decrease in cost of sales is due to better management of labor and supply costs
per job.  The decrease in sales of residential services was due to two floods in
July of 2002 and September of 2002, which is generally the peak income periods
along with general economic uncertainty after September 2002. Cost of goods sold
exceeded revenues because of the increased personnel expenses, including
hazardous waste handling training in the first half of the fiscal year.  We
believe we have improved are cost of sales management to achieve positive cash
flow from operations during the current fiscal year.

Administrative and general expenses were $320,155 for fiscal 2002 as compared
with  $547,810 for fiscal 2001.

We had a net loss from operations of $222,183 in fiscal 2002 as compared to a
net loss from operations of $655,476 for fiscal 2001.

Our commercial services include pressure cleaning, environmental services such
as fleet cleaning and vent hood cleaning and historical restoration.  The
environmental services do not include contaminated soil and water removal and
hauling services, which is not expected to produce revenues until the third
quarter of the current fiscal year.  Please see Plan of Operation below.

The decrease in commercial revenue is a result of the allocation of advertising
resources to residential wood and stone restoration.  We had increases in wood
and stone restoration revenue due to our increased advertising for these
services.  The decrease in sealing revenue is a result of our not advertising
this service in favor of advertising stone restoration.

LIQUIDITY  AND  CAPITAL  RESOURCES  FOR  FISCAL  YEAR  ENDED  SEPTEMBER 30, 2002
COMPARED  TO  FISCAL  YEAR  ENDED  SEPTEMBER  30,  2001

For the fiscal year ended September 30, 2002 we had current assets of $0 while
in the fiscal year ended September 30, 2001, we had current assets of $48,647.
Fixed assets in fiscal 2002 were $94,072 as compared to fixed assets of $161,918
for fiscal 2001.

We had current liabilities of $475,484 in fiscal 2002 and $621,559 for fiscal
2001 while long-term liabilities were $0 in fiscal 2002 as compared with $20,782
in fiscal 2001.

Our contaminated soil and water removal and hauling services are expected to
improve our liquidity, however no assurances can be made that liquidity will in
fact improve. Recently enacted Texas legislation requires the state to pay for
the remediation of abandoned or closed oil or gas well drilling sites which have
pits and ponds of used waste water and drilling sludge.  During the fourth
quarter of fiscal 2000, we obtained the necessary U.S. Department of
Transportation and Texas registrations to act as a sub-contractor to a fully
licensed provider of remediation services and anticipate obtaining contracts for
specific sites.  Presently we are only licensed to provide sub-contractor
services as and when we are selected to provide sub-contractor services for
contaminated soil and water removal and hauling.


                                                                         Page 11
<PAGE>
PLAN  OF  OPERATIONS

We intend to achieve profitability through increased revenue and decreased
expenses. During the past fiscal year, we had employee needs required to expand
our residential and commercial services as well as enter into the hazardous
waste remediation business including marketing expertise. We decided to use
specialized contract labor rather thank hiring internally for these positions in
order to minimize our expenses. Residential and commercial services will remain
our primary business focus for the next year.  While we believe the hazardous
waste remediation business will develop into a substantial portion of our
business, we believe the development will be incremental over the next several
years as we establish our name and reputation as a service provider in this
business.  We intend to make private placements of our equity securities as well
as seeking traditional debt financing when available. Further, the sale of
equity securities would substantially dilute our existing stockholders'
interests, and borrowings from third parties could result in our assets being
pledged as collateral. Loan terms, which would increase our debt service
requirements, could restrict our operations.  There is no assurance that we can
obtain financing on favorable terms.

Our residential and commercial services marketing plan includes the following
provisions:

-    Publish testimonials from satisfied clients in trade journals
-    Publish and distribute residential promotional literature, information
     articles and advertisements appearing in special interest publications such
     as home guides
-    Participate in appropriate trade shows, premise sales calls and
     demonstrations of select services.
-    Zip code targeted mailing for residential services
-    Targeted mailing and marketing to the Texas Historical Society
-    Personal sales calls for fleet washing services in our market area
-    Commission based telemarketing of residential services
-    Radio advertisement and endorsement on a Home Improvement Show

Our plan of operations for our contaminated soil and water removal and hauling
services has been to obtain the necessary licenses and permits to handle and
transport hazardous material in the State of Texas and be placed on the approved
vendors list of the State of Texas. At present, we have the necessary licenses
and permits to bid as a sub-contractor to a fully licensed hazardous waste site
remediation service provider in the State of Texas.  It is our intention to bid
on various clean-up projects as a sub-contractor for specific portions of the
clean up plan.  We will rely upon our licensing consultant to keep us informed
as to the timing and requirements of specific bids. However, there can be no
assurances that we will be awarded any contracts.

Commencing contaminated soil and water removal and hauling services as a
sub-contractor is not initially expected to increase our operating expenses as
we currently have the necessary equipment and out-sourced personnel to handle
the projects for which we have outstanding bids and we are not required to
obtain operating permits as a sub-contractor.  In the event that multiple,
simultaneous projects become available, we will either need to purchase
additional equipment and procure additional personnel or further sub-contract
out work.  In any event, as contamination removal and hauling projects are
awarded with compensatory draw schedules, as and when we are awarded projects,
we will be able to collect start-up/materials draws to commence and sustain each
job-site.  However, in the event we would seek or be required to obtain our own
operating permits, we would be required to commit significant human and capital
resources, which could result in increased operating costs. Such expenditures
can be substantial and accordingly could have a material adverse effect on our
financial condition.

We estimate that we require approximately $250,000 to $500,000 to expand
business as planned for the remainder of our current fiscal year.  These funds
will be used primarily for repayment of debt, equipment and marketing.


                                                                         Page 12
<PAGE>
However, in the event such funds are not obtained, we believe we can continue to
operate at our present levels.  Further reductions in operating expenses,
particularly executive salaries may be required to operate within cash flow.
Sources of capital will be sought primarily through the private placement of
securities by our officers.  While we do not believe commercial loans are
available to us for operating expenses, debt financing of durable equipment is
believed available through commercial lenders and equipment dealers.

ITEM 7. FINANCIAL STATEMENTS.

The financial statements of the company are set forth beginning on page F-1.

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

None

                                    PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;

The directors and officers of the Company, as of January 14, 2003, are set forth
below. The directors hold office for their respective term and until their
successors are duly elected and qualified. The officers serve at the will of the
Board of Directors.

DIRECTORS AND EXECUTIVE OFFICERS

Set forth below are the names, ages, years of service and positions of the
executive officers and directors of the Company


Name                 Age  Position                        Years of Service
-------------------  ---  ------------------------------  ----------------

Andrew DeVries, III   37  President, CEO,                                5
                          Chairman of the Board

Linda Morton          54  Secretary, Treasurer, Director                 5

Mark A. Triesch       44  Director                                       4

The Directors serve until their successors are elected by the shareholders.
Vacancies on the Board of Directors may be filled by appointment of the majority
of the continuing directors.  The executive officers serve at the discretion of
the Board of Directors. The Directors named above will serve until the next
annual meeting of the shareholders of the Company in the year 2003. Directors
will be elected for one-year terms at each annual shareholder's meeting.

All officers and directors listed above will remain in office until the next
annual meeting of our stockholders, and until their successors have been duly
elected and qualified. There are no agreements with respect to the election of
Directors. We have not compensated our Directors for service on our Board of
Directors, any committee thereof, or reimbursed for expenses incurred for
attendance at meetings of our Board of Directors and/or any committee of our
Board of Directors. Officers are appointed annually by our Board of Directors
and each Executive Officer serves at the discretion of our Board of Directors.
We do not have any standing committees. Our Board of Directors may in the future
determine to pay Directors' fees and reimburse Directors for expenses related to
their activities.


                                                                         Page 13
<PAGE>
None of our Officers and/or Directors have ever filed any bankruptcy petition,
been convicted of or been the subject of any criminal proceedings or the subject
of any order, judgment or decree involving the violation of any state or federal
securities laws.

BOARD OF DIRECTORS/EXECUTIVE OFFICERS

ANDREW DEVRIES, III is President and Principal Shareholder of Nannaco, Inc.  He
founded Nannaco in 1998 and has served as President since that time.  Mr.
DeVries develops the policies and objectives of Nannaco.  He manages market
planning, advertising and public relations, and he directs sales and
distribution.  Prior to this, Mr. DeVries was Sales Director for Internet
Direct, Inc. in San Antonio from 1994 to 1997.  In 1993, Mr. DeVries founded
DeVries and Associates, a financial services company and served as its president
until the founding of Nannaco.  Mr. DeVries holds a Bachelor of Arts from North
Texas State University and a Master of Arts from the University of North Texas

LINDA MORTON is our Corporate Secretary, Treasurer and a Director.  She has been
an officer and director of Nannaco and a shareholder since October 1998.   Prior
to her position with Nannaco, Inc., Ms. Morton was Manager of the Classifieds
Department, Texas City Sun Newspapers Corp. for five years, where she managed
sales and staff operations.  Ms. Morton's business experience includes
administration, accounting and personnel.

MARK A. TRIESCH is General Counsel and a Director to the corporation.  Prior to
joining Nannaco, Inc. in September 1999, Mr. Triesch operated a general practice
that concentrated on business litigation, real estate and family law.
He earned his Juris Doctor's degree from St. Mary's University in San Antonio.
Mr. Triesch also holds Bachelor's and Master's degrees in English from Texas A&M
University, and taught American Literature and composition at the University of
North Texas and Texas A&M University.  Currently, he handles transactional
matters for Nannaco, Inc., and acts in an advisory role concerning the
day-to-day operations of Nannaco.

FAMILY RELATIONSHIPS

Andrew DeVries, III is the son of Linda Morton.  There are no other family
relationships between any Director, executive or person nominated or chosen by
Nannaco to become a Director or executive officer.

CERTAIN LEGAL PROCEEDINGS

No director, nominee for director, or executive officer of the Company has
appeared as a party in any legal proceeding material to an evaluation of his
ability or integrity during the past five years.

COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT.

Section 16(a) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act") requires the Company's officers, directors and persons who own more than
10% of the Company's Common Stock to file reports of ownership and changes in
ownership with the SEC and the National Association of Securities Dealers, Inc.
Officers, directors and greater than 10% stockholders are required by regulation
to furnish the Company with copies of all forms they file pursuant to Section
16(a) of the Exchange Act. None of the present or former officers or directors
have filed the reports required by Section 16(a) of the Exchange Act for the
most recent fiscal year or prior fiscal years


                                                                         Page 14
<PAGE>
The present officers and directors are presently taking steps to make such
filings as required by Section 16(a) of the Exchange Act for the most recent
fiscal year or prior fiscal years

ITEM 10. EXECUTIVE COMPENSATION.

SUMMARY COMPENSATION TABLE

The following table shows for the fiscal years ending September 30, 2002, 2001
and 2000, the compensation awarded or paid by Nannaco to its Chief Executive
Officer and any of the executive officers of Nannaco whose total salary and
bonus exceeded $100,000 US during such year (The "Named Executive Officers"):

<TABLE>
<CAPTION>
                                  SUMMARY COMPENSATION TABLE

                                                     LONG TERM COMPENSATION
                                              ------------------------------------
                     ANNUAL COMPENSATION               AWARDS             PAYOUTS
                  --------------------------  --------------------------  --------
                                      OTHER   RESTRICTED    SECURITIES
NAME AND                             ANNUAL      STOCK      UNDERLYING      LTIP
PRINCIPLE          SALARY    BONUS    COMP.    AWARD(S)    OPTIONS/SARS   PAYOUTS   ALL OTHER
POSITION    YEAR     ($)      ($)      ($)        ($)           (#)         ($)     COMP. ($)
----------  ----  ---------  ------  -------  -----------  -------------  --------  ----------
<S>         <C>   <C>        <C>     <C>      <C>          <C>            <C>       <C>
A. DeVries  2000  $ 104,000       0        0            0              0         0           0
----------  ----  ---------  ------  -------  -----------  -------------  --------  ----------
A. DeVries  2001  $  78,000       0        0            0              0         0           0
----------  ----  ---------  ------  -------  -----------  -------------  --------  ----------
A. DeVries  2002  $  24,000       0        0            0              0         0           0
----------  ----  ---------  ------  -------  -----------  -------------  --------  ----------
</TABLE>

No other executive officer earned more than $100,000 US during the most recent
fiscal year.

OPTION/SAR GRANTS IN LAST FISCAL YEAR (Individual Grants)

               Number of      Percent of Total
               Securities     Options/SARs
               Underlying     Granted To
               Options/SARs   Employees In      Exercise of     Expiration
Name           Granted        Fiscal Year       Base Price      Date
               #              %                 $/share
------------------------------------------------------------------------------
None

<TABLE>
<CAPTION>
                       AGGREGATED OPTION/SAR EXERCISES IN
                  LAST FISCAL YEAR AND FY-END OPTION/SAR VALUES


                                      Number Of Unexercised
                                      Securities Underlying  Value of Unexercised
                                      Options/SARs           In-The-Money Options/
              Shares                  At FY-End              SARs At FY-End
              Acquired On  Value      Exercisable/           Exercisable/
Name          Exercise     Realized   Unexercisable          Unexercisable
              #            $          #                      $
----------------------------------------------------------------------------------
<S>           <C>          <C>        <C>                    <C>

Mark Triesch      -0- (1)        -0-        20,000  /  -0-   $       -0-  /  $-0-


Linda Morton      -0- (1)        -0-        20,000  /  -0-   $       -0-  /  $-0-

<FN>
------------------------------
(1)  There were no exercises of options by these persons during the fiscal year
     ended September 30, 2002
</TABLE>


                                                                         Page 15
<PAGE>
EMPLOYMENT AGREEMENTS AND EXECUTIVE COMPENSATION

Nannaco does not have written employment agreements with its executive officers.
Andrew DeVries was paid a salary of $104,000 per annum effective October 1, 2000
until April 2001 when his salary was decreased to $52,000 per annum.  Mr.
DeVries took further salary reductions during the fiscal year ended September
30, 2001 to $24,000 per annum.

Mr. Devries has not been granted nor does he own any options to purchase shares
of Nannaco stock.

COMPENSATION OF DIRECTORS

Directors are entitled to receive reimbursement for all out-of-pocket expenses
incurred for attendance at Board of Directors meetings.

OTHER ARRANGEMENTS

Nannaco  has  the Nannaco 2000 Stock Option Plan, which was adopted on April 20,
2000.  The  purpose  of  the  Plan is to advance the business and development of
Nannaco  and  its  shareholders  by  affording  to  the employees, directors and
officers of Nannaco the opportunity to acquire a proprietary interest in Nannaco
by  the  grant  of Options to such persons under the Plan's terms. The 2000 Plan
reserved  5,000,000  shares  for  grant or issuance upon the exercise of options
granted  under  the  plan.  Stock  Options under the Plan will be granted by the
Board  of  Directors or a Compensation Committee of the Board of Directors.  The
exercise  prices  for  Options  granted  will be at the fair market value of the
common stock at the time of the grant if a public market develops for the common
stock  or  not  less  than  the  most recent price at which Nannaco had sold its
common  stock.  As  of January 14, 2003, the following options have been granted
by  Executive  Officers  and  Directors  under  the  plan:

Name          # of Shares Optioned  Ex. Price   Expiration Date
------------  --------------------  ----------  ---------------
Mark Triesch         20,000 shares  $     1.00  April 24, 2005
Linda Morton         20,000 shares  $     1.00  April 24, 2005

TERMINATION OF EMPLOYMENT AND CHANGE OF CONTROL ARRANGEMENT

There is no compensatory plan or arrangement with respect to any individual
named above which results or will result from the resignation, retirement or any
other termination of employment with Nannaco, or from a change in the control of
Nannaco.


ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER.

Based upon information received from the persons concerned, each person known to
us to be the beneficial owner of more than five percent of the outstanding
shares of our Common Stock, each director, each of the named executive officers
and all of our directors and officers as a group, owned beneficially as of
January 14, 2003, the number and percentage of outstanding shares of our Common
Stock indicated in the following table:

The following table sets forth the persons known to us as beneficially owning
more than five percent (5%) of the 15,335,342 shares outstanding as of January
14, 2003 plus 40,000 shares underlying exercisable options held by certain
directors.  The table also shows the number of shares of Common Stock
beneficially owned as of January 14, 2003, by individual directors and executive
officers and by all directors and executive officers as a group.  The number of
shares shown for Linda Morton, and Mark Triesch include currently exercisable


                                                                         Page 16
<PAGE>
Options to acquire 20,000 shares of common stock at $1.00 per share expiring
April 24, 2005 for each officer and director.  The Joy Foundation is an
unincorporated business trust organization.  Jack Malone is the managing
director. Unless otherwise indicated, all shares are held directly with sole
voting and investment power

Name/Address/Title                       Shares    % Ownership
---------------------------------------------------------------
The Joy Foundation                      1,443,400          9.4%
2915 State Rd. 590 Ste.19
Clearwater, FL 33759

Andrew DeVries, III                     7,750,000         50.5%
President, CEO and Chairman
807 Arizona Ash
San Antonio, TX 78232

Linda Morton                               20,000          0.1%
Director
1305 Woodbranch
San Antonio, TX 78232

Mark Triesch                               49,000          0.3%
Director
353 South Hackberry Ave
New Braunfels, TX 78130

All Executive Officers and Directors    9,262,400         50.9%
3 persons)

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

None

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K.

(a) The following documents are filed as part of this report:
None

(b) Reports on Form 8-K
None

                                     PART IV

ITEM 14. CONTROLS AND PROCEDURES

As of a date within 90 days of the date of this report, the Company's Chief
Executive Officer and Chief Financial Officer evaluated the effectiveness of the
design and operation of the Company's disclosure controls and procedures. Based
upon this evaluation, the Chief Executive Officer and Chief Financial Officer
concluded that the disclosure controls and procedures are effective in ensuring
that information required to be disclosed by the Company in the reports that it
files or submits under the Securities and Exchange Act of 1934, as amended, is
recorded, processed, summarized and reported within the time period specified by
the Securities and Exchange Commission's rules and forms.


                                                                         Page 17
<PAGE>
                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

NANNACO, INC.
By:  /s/  Andrew Devries, III
-----------------------------
Andrew Devries, III, Chief Financial Officer and Director
Date:  January 21, 2003



In accordance with the Exchange Act, this report has been signed below by the
following person(s) on behalf of the registrant in its capacities and on the
dates indicated.

By:  /s/  Andrew Devries, III
-----------------------------
Andrew Devries, III, Chief Financial Officer and Director
Date:  January 21, 2003


Certifications

I, Andrew Devries, III, certify that:

1. I have reviewed this annual report on Form 10-KSB of Nannaco, Inc.;
2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this annual report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this annual
report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Date: January 21, 2003
/s/Andrew Devries, III
----------------------
Andrew Devries, III
President


                                                                         Page 18
<PAGE>
I, Andrew Devries, III, certify that:

1. I have reviewed this annual report on Form 10-KSB of Nannaco, Inc.;
2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this annual report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this annual
report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Date: January 21, 2003
/s/ Andrew Devries, III
-----------------------
Andrew Devries, III
Principal Financial Officer and Director


                                                                         Page 19
<PAGE>
Certification of President and Principal Financial Officer of Nannaco, Inc.
---------------------------------------------------------------------------
pursuant to Section 906 of the Sarbanes-Oxley Act of 1992 and Section 1350 of 18
--------------------------------------------------------------------------------
U.S.C. 63.
---------

I, Andrew Devries, III, the President and Principal Financial Officer of
Nannaco, Inc. hereby certify that to my knowledge, Nannaco, Inc. annual report
on Form 10-KSB for the period ended September 30, 2002, fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934
and that information contained in the periodic report on Form 10-KSB and the
financial statements contained therein fairly presents, in all material
respects, the financial condition and results of the operations of Nannaco, Inc.


Date:  January 21, 2003               /s/   Andrew Devries
                                            --------------
                                            Andrew Devries, III
                                            President of
                                            Nannaco, Inc.



Certification of President and Principal Financial Officer of Nannaco, Inc.
---------------------------------------------------------------------------
pursuant to Section 906 of the Sarbanes-Oxley Act of 1992 and Section 1350 of 18
--------------------------------------------------------------------------------
U.S.C. 63.
---------

I, Andrew Devries, III the President and Principal Financial Officer of Nannaco,
Inc. hereby certify that to my knowledge, Nannaco, Inc. annual report on Form
10-KSB for the period ended September 30, 2002, fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934
and that information contained in the annual report on Form 10-KSB and the
financial statements contained therein fairly presents, in all material
respects, the financial condition and results of the operations of Nannaco, Inc.

Date:  January 21, 2003               /s/   Andrew Devries
                                            --------------
                                            Andrew Devries, III
                                            President of
                                            Nannaco, Inc.


                                                                         Page 20
<PAGE>
                                  NANNACO, INC.
                                  -------------
                          (A DEVELOPMENT STAGE COMPANY)
                               D.B.A. SURFACE PRO
                              FINANCIAL STATEMENTS
                 FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001



                                TABLE OF CONTENTS
                                -----------------
                                                                          PAGE
                                                                          NUMBER
                                                                          ------

Independent Auditors' Review Report on Basic Financial Statements           1

Financial Statements:
     Balance Sheet                                                         2-3
     Statements of Income and Retained Deficit                              4
     Statement of Cash Flows                                                5
     Statement of Stockholders' Equity                                      6
     Independent Auditors' Notes to Financial Statements                   7-17


                                                                         Page 21
<PAGE>
                                 James J. Taylor
                           CERTIFIED PUBLIC ACCOUNTANT

                Report of Independent Certified Public Accountant


The Board of Directors
NANNACO, INC.
2935 Thousand Oaks,  #261
San Antonio, Texas  78247

I  have  audited  the  balance  sheet  of NANNACO, INC. (a Texas corporation and
development  stage  company)  as of September 30, 2002 and 2001, and the related
statements  of operation and retained deficits, statement of cash flows, and the
statement  of  stockholders  equity  for  the years then ended.  These financial
statements  are  the  responsibility  of  the  Company's  management.  My
responsibility  is to express an opinion on the financial statements based on my
examination.

I  conducted the audit in accordance with generally accepted auditing standards.
These  standards  require that I plan and perform the audit to obtain reasonable
assurance  about  whether  the  financial  statements  are  free  of  material
misstatements.  My  audit  includes  examining,  on  a  test  basis,  evidence
supporting  the  amounts  and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant estimates
made  by  management,  as  well  as  evaluation  the overall financial statement
presentation.  I  believe  that  my  audit  provides  a  reasonable basis for my
opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial position of NANNACO, INC. as of September 30,
2001  and 2000, and the results of its operations, changes in retained earnings,
and  cash  flows for the years ended September 30, 2001, and 2000, in conformity
with  generally  accepted  accounting  principles.

The  accompanying financial statements have been prepared assuming NANNACO, Inc.
will  continue  as  a  going concern.  As shown in the financial statements, the
Company  has  a deficit from operations for the ended September 30, 2002, in the
amount of $268,312, and for the year ending September 30, 2001, in the amount of
$753,110. These conditions raise substantial doubt about the Company's continued
existence.  The  financial  statements do not include any adjustments that might
result  form  the  outcome  of  these  uncertainties.

January 6, 2003


                                                     James  J.  Taylor,
                                                     Certified Public Accountant


        555 IH 35 SOUTH, SUITE 312- NEW BRAUNFELS, TEXAS 78130- TELEPHONE
     (830)624-0100 FAX (830)624-0300 E-MAIL ADDRESS: JAMES_J_TAYLOR@MSN.COM


                                                                         Page 22
<PAGE>
                                  NANNACO, INC
                          (A DEVELOPMENT STAGE COMPANY)
                               D.B.A. SURFACE PRO
                                 BALANCE SHEETS
                           SEPTEMBER 30, 2002 AND 2001

                                     ASSETS


                                                   SEPTEMBER    SEPTEMBER
                                                   30, 2002     30, 2001
                                                  -----------  -----------
CURRENT ASSETS:
  Cash on hand and in banks                       $        0   $        0
  Certificates of deposit                                  0       42,244
  Accounts receivable
    Trade                                                  0        2,100
    Employees                                              0        1,913
                                                  -----------  -----------
      Total accounts receivable                            0        4,013
                                                  -----------  -----------

OTHER CURRENT ASSETS:
  Prepaids and deposits                                    0        2,390
                                                  -----------  -----------
      Total current assets                                 0       48,647



FIXED ASSETS:
  Equipment and fixtures                             158,232      190,936
  Vehicles                                                 0       66,714
  Less: accumulated depreciation                     (64,160)     (95,732)
                                                  -----------  -----------
      Net property and equipment                      94,072      161,918

OTHER ASSETS:
  Notes receivable - investors                       109,000      109,000
  Accrued interest on investors notes receivable      21,760       11,132
                                                  -----------  -----------
      Total other assets                             130,760      120,132
                                                  -----------  -----------

TOTAL ASSETS                                      $  224,832   $  330,697
                                                  ===========  ===========



            SEE ACCOUNTANTS' REPORT AND NOTES TO FINANCIAL STATEMENTS
                                       F-2
                                                                         Page 23
<PAGE>
<TABLE>
<CAPTION>
                                         NANNACO, INC
                                (A DEVELOPMENT STAGE COMPANY)
                                      D.B.A. SURFACE PRO
                                        BALANCE SHEETS
                                 SEPTEMBER 30, 2002 AND 2001


                             LIABILITIES AND STOCKHOLDER'S EQUITY

                                                                 SEPTEMBER     SEPTEMBER
                                                                  30, 2002      30, 2001
                                                                ------------  ------------
<S>                                                             <C>           <C>
CURRENT LIABILITIES:
  Bank overdrafts                                               $     3,286   $     5,341
  Accounts payable - trade                                           63,999        48,276
  Accounts payable - employees                                       50,184
  Judgment payable                                                   44,436
  Accrued interest payable on loans                                  20,112        33,440
  Conversion notes payable                                                        317,975
  Current portion of notes payable                                   59,336        85,096
  Sales taxes payable                                                40,801        36,492
  Payroll taxes accrued and/or withheld                             193,330        94,939
               Total current liabilities                            475,484       621,559
                                                                ------------  ------------
LONG-TERM LIABILITIES:
  Installment notes payable                                          25,350        31,892
  Notes payable - banks (lines of credit)                            33,986        73,986
  Less: current portion                                             (59,336)      (85,096)
                                                                ------------  ------------
               Net long-term debt                                         0        20,782
                                                                ------------  ------------
OTHER LIABILITIES:
  Loans from shareholders                                            48,427        96,865
                                                                ------------  ------------
               Total liabilities                                    523,911       739,206

COMMON STOCK SUBJECT TO REDEMPTION:
  Common stock (377,742 shares issued November 15,
          2001 and outstanding)                                         378             0
  Additional paid-in capital                                        377,364             0
                                                                ------------  ------------
          Total common stock subject to redemption                  377,742             0
STOCKHOLDERS' EQUITY:
  Common stock (1,000 shares $1 par value authorized,
          0 shares issued and outstanding at 09/30/02 and
          09/30/01)                                                       0             0
          (50,000,000 shares $0.001 par value authorized,
          14,957,600 shares issued and outstanding at
          at 09/30/02 and 09/30/01)                                  14,958        14,958
  Preferred stock - 10,000,000 shares authorized, none issued
          and outstanding                                                 0             0
  Paid in surplus                                                 3,379,829     3,379,829
  Retained deficit                                               (4,071,608)   (3,803,296)
                                                                ------------  ------------
               Total stockholder's equity                          (676,821)     (408,509)
                                                                ------------  ------------

TOTAL LIABLITIES AND STOCKHOLDER'S EQUITY                       $   224,832   $   330,697
                                                                ============  ============
</TABLE>


            SEE ACCOUNTANTS' REPORT AND NOTES TO FINANCIAL STATEMENTS
                                       F-3
                                                                         Page 24
<PAGE>
<TABLE>
<CAPTION>
                                  NANNACO, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                               D.B.A. SURFACE PRO
                 STATEMENTS OF OPERATIONS AND RETAINED DEFICITS
                 FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001


                                                 SEPTEMBER     SEPTEMBER
                                                  30, 2002      30, 2001
                                                ------------  ------------
<S>                                             <C>           <C>
INCOME:
  Revenue                                       $   138,485   $   290,917

COST OF SALES:
  Wages                                              10,571       292,688
  Supplies                                            3,991        56,552
  Contract labor                                     25,951        49,343
                                                ------------  ------------
      Total cost of sales                            40,513       398,583
                                                ------------  ------------

GROSS PROFIT (LOSS)                                  97,972      (107,666)

ADMINISTRATIVE AND GENERAL:
  Advertising and public relations                    4,778        24,783
  Bank charges and wire fees                          4,817         6,774
  Consulting fees                                                  27,542
  Vehicle operation expense                          13,671        20,155
  Depreciation                                       31,478        36,808
  Dues and subscriptions                                            1,320
  Equipment rental                                                 12,280
  Insurance                                             933        21,465
  Legal and professional                             45,162       127,725
  Miscellaneous                                                    11,688
  Office supplies                                       879         9,610
  Officer compensation                               69,500       104,658
  Payroll tax expense                                18,965        31,761
  Penalties                                          59,004
  Rent                                               22,875        52,230
  Repairs and maintenance                             3,398        10,192
  Other taxes                                                       1,056
  Stock registration expense                          1,826         1,488
  Telephone                                           7,878        20,571
  Trade show expense                                    178         3,328
  Travel and entertainment                           32,406        21,111
  Utilities                                           2,407         1,265
                                                ------------  ------------
      Total administrative and general expenses     320,155       547,810
                                                ------------  ------------

INCOME (LOSS) FROM OPERATIONS                      (222,183)     (655,476)


                                      F-4
                                                                         Page 25
<PAGE>
OTHER INCOME (EXPENSE):
  Interest income                                    15,513        12,862
  Dividend income                                                  19,533
  Loss on disposition of assets                     (23,038)      (80,641)
  Unrealized gains (losses) on mutual funds
  Interest Expense                                  (38,604)      (49,388)
                                                ------------  ------------
      Total other income (expense)                  (46,129)      (97,634)
                                                ------------  ------------

NET INCOME (LOSS)                                  (268,312)     (753,110)

RETAINED DEFICIT, beginning of period            (3,803,296)   (3,050,186)
                                                ------------  ------------

RETAINED DEFICIT, End of Period                 $(4,071,608)  $(3,803,296)
                                                ============  ============

NET (LOSS) PER SHARE OF COMMON STOCK            $   (0.0179)  $   (0.0503)
                                                ============  ============
</TABLE>


            SEE ACCOUNTANTS' REPORT AND NOTES TO FINANCIAL STATEMENTS
                                       F-5
                                                                         Page 26
<PAGE>
<TABLE>
<CAPTION>
                                     NANNACO, INC.
                              (A DEVELOPMENT STAGE COMPANY)
                                   D.B.A. SURFACE PRO
                                STATEMENTS OF CASH FLOWS
                     FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001


                                                                  SEPTEMBER   SEPTEMBER
                                                                   30, 2002    30, 2001
                                                                  ----------  ----------
<S>                                                               <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                                 ($268,312)  ($753,110)
  Adjustments to reconcile net income to net cash
  provided by operating activities:
    Non-cash items:
        Depreciation                                                 31,478      36,808
        Debt converted to redeemable stock                          377,742
                                                                  ----------  ----------
                                                                    409,220      36,808

    (Increase) decrease in certificates of deposit                   42,244      (1,620)
    (Increase) decrease in accounts receivable - trade                2,100      18,204
    (Increase) decrease in accounts receivable - employee             1,913      (1,913)
    Increase (decrease) in bank overdraft                            (2,055)     (5,311)
    (Increase) decrease in cash in escrow                                         2,472
    (Increase) decrease in mutual fund shares                                   267,913
    (Increase) decrease in prepaid expense and deposits               2,390     114,935
    Increase (decrease) in accounts payable                          15,723      58,583
    Increase (decrease) in accounts payable - employees              50,184
    Increase (decrease) in accounts payable - other                 (13,329)
    Increase (decrease) in judgment payable                          44,436
    Increase (decrease) in loans payable - brokerage firm                      (132,797)
    Increase (decrease) in current portion of long-term debts       (25,760)      1,688
    Increase (decrease) in conversion notes payable                (317,975)
    Increase (decrease) in sales taxes payable                        4,308       9,124
    Increase (decrease) in payroll tax liabilities                   98,391      44,508
                                                                  ----------  ----------
    Total adjustments                                               311,790     412,594
                                                                  ----------  ----------
    Net cash provided (used) by operating activities                 43,478    (340,516)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Cash advances (to) stockholders, and related accrued interest     (10,627)    (68,119)
  (Purchase) dispositions of fixed assets                            36,368       1,550
                                                                  ----------  ----------
    Net cash provided (used) by investing activities                 25,741     (66,569)
                                                                  ----------  ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds (repayment) long-term debts:
    Loans from shareholders                                         (48,437)     96,863
    Installment obligations                                          (6,542)
    (Repayment) - Installment obligations                                        (7,621)
    Current portion to current liabilities                          (14,240)       (132)
    Bank lines of credit                                                          2,550
    (Repayment)  - Bank lines of credit                             (40,000)       (994)
    Current portion to current liabilities                           40,000      (1,556)
    Loans from individuals
    Proceeds from conversion debt issuance
        (net of costs of $154,105 for FYE 09/30/00)                             317,975
                                                                  ----------  ----------
        Net cash provided (used) by investing activities            (69,219)    407,085
                                                                  ----------  ----------

NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS                           0           0

Cash and equivalents, beginning of period                                 0           0
                                                                  ----------  ----------

CASH AND EQUIVALENTS, END OF PERIOD                                       0           0
                                                                  ==========  ==========
</TABLE>


            SEE ACCOUNTANTS' REPORT AND NOTES TO FINANCIAL STATEMENTS
                                       -5-
                                                                         Page 27
<PAGE>
<TABLE>
<CAPTION>
                                                           NANNACO, INC.
                                                   (A DEVELOPMENT STAGE COMPANY)
                                                        D.B.A. SURFACE PRO
                                                STATEMENTS OF STOCKHOLDERS' EQUITY
                         FOR THE PERIOD OF OCTOBER 20, 1998 (DATE OF INCEPTION) THROUGH SEPTEMBER 30, 2002


                                                         SHARES COMMON STOCK                             DOLLARS
                                                ------------------------------------  --------------------------------------------
                                                 $1.00      $0.001         TOTAL       $1.00    $0.001      PAID
                                                  PAR         PAR          NUMBER       PAR      PAR         IN         RETAINED
  DATE                                           VALUE       VALUE         SHARES      STOCK    STOCK      SURPLUS      DEFICIT
--------                                        -------  -------------  ------------  -------  --------  -----------  ------------
<C>       <S>                                   <C>      <C>            <C>           <C>      <C>       <C>          <C>
          Balance at October 1, 1998                 0              0             0   $    0   $     0   $        0   $         0
10/20/98  Original capitalization                  500                          500      500                    500
10/20/98  Property contributed by stockholder        0                            0                         108,039
02/15/99  Surrendered certificates                (300)                        (300)    (300)                   300
06/01/99  Issued for services                              19,999,800    19,999,800             19,999
09/30/99  Loss for period ending 09/30/99                                                                                (131,495)
                                                ----------------------------------------------------------------------------------
           Total 09/30/99                          200     19,999,800    20,000,000      200    19,999      108,839      (131,495)
03/10/00  Reverse split (1,000,000 TO 1)          (200)   (19,999,788)  (19,999,988)
                                                ----------------------------------------------------------------------------------
           Sub Total                                 0             12            12      200    19,999      108,839      (131,495)
03/31/00  Forward split (1 to 1,000,000)             0     11,999,988    11,999,988
          Fractional redemption                                                         (200)                   199
          Fractional redemption                                                                 (7,999)      (6,800)
                                                ----------------------------------------------------------------------------------
                                                     0     12,000,000    12,000,000        0    12,000      102,238      (131,495)
05/22/00  Shares issued for services                           50,000        50,000        0        50       49,950
05/22/00  Shares issued for claim settlement                  435,000       435,000                435      434,565
05/22/00  Shares issued for debt                            1,029,200     1,029,200              1,019    1,028,172
                   less $154,105 costs                                                     0               (154,105)
 6/30/00  Shares sold at private placement                  1,443,400     1,443,400        0     1,444    1,234,081
               less $314,072 costs                                                                         (307,563)
                                                ----------------------------------------------------------------------------------
           Total 06/30/00                            0     14,957,600    14,957,600        0    14,948    2,387,338      (131,495)
          Shares issued for debt                                                                    10       (6,509)
07/24/00  Shares issued for services                                                                        999,000
09/30/00  Loss for FYE 09/30/00                                                                                        (2,918,691)
                                                ----------------------------------------------------------------------------------
           Total 09/30/00                            0     14,957,600    14,957,600        0    14,958    3,379,829    (3,050,186)
09/30/01  Loss period ending 09/30/01                                                                                    (753,110)
                                                ----------------------------------------------------------------------------------
           Total 09/30/01                            0     14,957,600    14,957,600        0    14,958    3,379,829    (3,803,296)
09/30/02  Loss period ending 09/30/02                                                                                    (268,312)
                                                ----------------------------------------------------------------------------------
          Total 09/30/02                             0     14,957,600    14,957,600   $    0   $14,958   $3,379,829   $(4,071,608)
                                                ==================================================================================


                                         TOTAL
                                      ------------
<S>                                   <C>
Balance at October 1, 1998            $         0
Original capitalization                     1,000
Property contributed by stockholder       108,039
Surrendered certificates                        0
Issued for services                        19,999
Loss for period ending 09/30/99          (131,495)
                                      ------------
 Total 09/30/99                            (2,457)
Reverse split (1,000,000 TO 1)                  0
                                      ------------
 Sub Total                                 (2,457)
Forward split (1 to 1,000,000)                  0
Fractional redemption                          (1)
Fractional redemption                     (14,799)
                                      ------------
                                          (17,257)
Shares issued for services                 50,000
Shares issued for claim settlement        435,000
Shares issued for debt                  1,029,191
         less $154,105 costs             (154,105)
Shares sold at private placement        1,235,525
     less $314,072 costs                 (307,563)
                                      ------------
 Total 06/30/00                         2,270,791
Shares issued for debt                     (6,499)
Shares issued for services                999,000
Loss for FYE 09/30/00                  (2,918,691)
                                      ------------
 Total 09/30/00                           344,601
Loss period ending 09/30/01              (753,110)
                                      ------------
 Total 09/30/01                          (408,509)
Loss period ending 09/30/02              (268,312)
                                      ------------
Total 09/30/02                        $  (676,821)
                                      ============
</TABLE>


            SEE ACCOUNTANTS' REPORT AND NOTES TO FINANCIAL STATEMENTS
                                       -6-
                                                                         Page 28
<PAGE>
NOTE 1  -  GOING CONCERN
------
The  accompanying  financial  statements  of  NANNACO, Inc. (a development stage
company)  have  been  prepared  in conformity with generally accepted accounting
principles,  which  contemplate  continuation of the Company as a going concern.
The  Company has devoted substantially all of its efforts to financial planning,
raising  capital,  diversification  of  services,  and  developing  markets  for
existing  and  expanded services.  These factors create an uncertainty about the
Company's  ability  to continue as a going concern.  The financial statements do
not include any adjustments that might be necessary, if the Company is unable to
continue  as  a  going  concern.

               The  Company  has taken steps to curtail the operating losses for
          future  periods.  These steps include the reduction (not deferrals) of
          officers,  directors  and  key  personnel salaries, as well as cuts in
          every  expense  classification,  where  possible.  Additionally,
          concentration has been focused on the sources of current customers and
          business,  instead  of spending time and money on new, untried sources
          of  customer acquisition. Additionally, a three phase plan of business
          development  has  been implemented to increase current market share of
          existing  business,  extending  to  new geographic areas, and shifting
          focus  to  business segments which are not as weather sensitive, as is
          the  current  business  core.  With  these  plans in place, as well as
          guarding  against  additional  one time charges to income, it is hoped
          the  Company  will  be  able  curtail  its  operating  losses.

NOTE 2  - NATURE OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------

   A.     ORGANIZATION  AND  NATURE  OF  THE  BUSINESS
NANNACO,  INC.  (The  Company)  was  incorporated under the laws of the State of
Texas  on  October  20,  1998,  and  began  operations immediately.  The Company
provides  industrial  surface cleaning, surface protection, surface restoration,
and  other  services  to  commercial  and  industrial businesses, as well to the
owners of historical buildings, operating under the trade name of Surface Pro in
order  to relate to the principal business activity, since the NANNACO name does
not  indicate  the  type  of  business.

    B.    REVENUE  AND  COST  RECOGNITION
               The  Company  provides  its services on a direct basis. A sale is
          recognized  when  the service is provided and an account receivable is
          recorded or payment is received. The criteria for recording a sale are
          that  all  agreed  services  have  been  provided  to  the  customer.

     Supplies  and  materials  are  purchased  and  consumed  as  necessary.

               Company  warranties  on its services are within the standards and
          customs  of  the industry. Refunds and adjustments are recognized when
          granted.  No liability is accrued for this purpose and the adjustments
          and refunds are recorded on a cash basis. Due to the immaterial amount
          of  the adjustments and refunds, management does not feel that this is
          a  misleading  method.


     C.   USE  OF  ESTIMATES
               The  preparation  of  financial  statements  in  conformity  with
          generally  accepted  accounting principles requires management to make
          estimates  and  assumptions that affect the reported amounts of assets
          and liabilities and disclosure of contingent assets and liabilities at
          the  date  of  the  financial  statements  and the reported amounts of
          revenue and expenses during the reporting period. Actual results could
          differ  from  these  estimates.  Such  estimates  relate  primarily to
          depreciable  assets  and  their  useful  lives.


                                                                         Page 29
<PAGE>
NOTE 2  -  NATURE  OF  THE  BUSINESS  AND  SUMMARY  OF  SIGNIFICANT  ACCOUNTING
------
     POLICIES  (CONTINUED)

     D.   PROPERTY AND EQUIPMENT
               Equipment  and  vehicles  are  stated  at  cost.  Depreciation is
          calculated  on  the  straight-  line  method over the estimated useful
          lives  of  the  assets  for book purposes and the Modified Accelerated
          Cost  Recovery  System  (MACRS)  for  tax  purposes.

     E.   FEDERAL INCOME TAXES
               Provisions  for  income  taxes  are  calculated  on pretax income
          reported  for  financial  statement purposes. Deferred income taxes or
          benefit  from  income  taxes  are  provided through timing differences
          between  the  reporting  of  financial  statement  income  and taxable
          income.  These  differences  result primarily from the use of straight
          line depreciation for reporting purposes and Modified Accelerated Cost
          Recovery  System for tax purposes. If material, these differences will
          be recorded as deferred income taxes or benefit from income taxes. Due
          to  the  accumulated  deficit from inception to September 30, 2002, no
          deferred  taxes  or  benefit  from  income  taxes  has  been provided.

NOTE 3  -  CERTIFICATES  OF  DEPOSIT
------
               On  June  23,  2000,  the Company invested in two certificates of
          deposit  in  the amounts of $20,000 each, earning interest at the rate
          of 5.75% annually. These certificates mature in one year from the date
          of  purchase. These certificates matured June 23, 2001, and along with
          accrued  interest,  in the amount of $1,365, were renewed for one year
          at the interest rate of 3% per annum. Interest in the amount of $1,175
          was  accrued  on  both certificates. These certificates secure line of
          credit  notes  payable. On June 23, 2002, the date of maturity, one of
          these  certificates  was  cashed  and the proceeds utilized to pay the
          line  of  credit  note,  which  it secured. The second certificate was
          cashed  during  July,  2002,  and  the proceeds utilized to retire the
          corresponding  line  of  credit  note,  which  it  secured.

NOTE 4  -  ACCOUNTS RECEIVABLE - TRADE
------
               The  trade  accounts  receivable  are recorded by the date of the
          invoice,  which  is  the  date the work is completed. The terms on the
          invoices  are  due upon completion, unless other arrangements are made
          prior  to  the beginning of the project. Due to the residential nature
          of  business  at  September  30,  2002,  no  accounts  receivable were
          outstanding.  At  September  30,  2001, there was a balance of $5,341.

NOTE 5  -  PREPAIDS AND DEPOSITS
------
     The  prepaid  interest amount carried on the balance sheet was the interest
     included  in an installment loan on a vehicle purchased by the company. The
     amounts  taken to expense each period are based on the straight-line method
     over  the  life  of the loan as each installment payment is made. Since the
     loan  was  liquidated  during  the year, no amount remains at September 30,
     2002.


NOTE 6  -  EQUIPMENT  AND  FIXTURES  AND  VEHICLES
------
     Fixed assets are recorded at cost and are summarized as follows:

                                              09/30/02    09/30/01
                                             ----------  ----------
    Equipment                                $ 158,232   $ 190,936
    Vehicles                                         0      66,714
                                             ----------  ----------
      Total Fixed Assets (at Cost)           $ 158,232   $ 257,650
    Less Accumulated Depreciation from
      Inception (October 20, 1998) to
      September 30, 2002 and 2001             ( 64,160)    (95,732)
                                             ----------  ----------
    Net Fixed Assets at September 30,
      2002 and 2001                          $  94,072   $ 161,918
                                             ==========  ==========


                                                                         Page 30
<PAGE>
     Depreciation  expense  charged  against  operations  for  the  year  ending
September  30,  2002,  totaled  $31,478 and $36,808 for the year ended September
30,2001.

NOTE 7 - OTHER ASSETS
------
     A.  NOTES  RECEIVABLE  -  INVESTORS
     The Company has made advances to sixteen of its investors in the amounts of
     $109,000  at  September 30, 2002 and 2001. These cash advances were secured
     by promissory notes due on January 1, 2003. These notes carry the provision
     of  9.75%  per annum interest from the date of the advance to the due date.

     B.  ACCRUED  INTEREST  ON  NOTES  RECEIVABLE  -  INVESTORS
     Interest accrual on Investors Notes Receivable retroactively accrued on the
     advances  to  investors  from the date of the advance to March 31, 2002 and
     2001.  This  interest  is due on January 1, 2003, along with the principal.
     Accumulated  amounts  were  $21,760  at  September 30, 2002, and $11,132 at
     September  30,  2001.

NOTE 8  -  CURRENT  LIABILITIES
------
     A.   BANK  OVERDRAFTS  at  September 30, 2002 in the amounts of $3,286, and
          $5,341  at September 30, 2001, were created by the practice of writing
          checks  at  the  end  of  the month and clearing the overdrafts by the
          first  banking  day  of  the  following  month.

     B.   TRADE  ACCOUNTS  PAYABLE  of $63,999 and $48,276 on September 30, 2002
          and  2001 respectively, were the amounts owed to suppliers, utilities,
          and  other monthly operating expenses at the end of the periods. These
          amounts  are normally cleared during the month following the purchase,
          or  as  soon  as  possible  thereafter.

     C.   JUDGMENT  PAYABLE  The  company  is  currently  in litigation with the
          Wyndham  Hotel  Corporation  concerning  a debt for unpaid lodging and
          meal  charges  which arose as a result of a convention sponsorship. On
          June  14,  2002,  the  Wyndham  obtained  a  summary  judgment against
          NANNACO, Inc. in the amount $32.045, plus $10,263 legal fees. Interest
          to September 30, 2002, was $2,128. Until paid, the interest accrues at
          a  rate  of  10%,  or  $11.60  per day. At this time, according to the
          Company's  legal  counsel, the matter is on hold until further notice.

     D.   ACCRUED  INTEREST  ON LOANS and notes payable is accrued from the date
          of  the  last  payment  through  September  30,  2002  and  2001.

     E.   CONVERSION  NOTES PAYABLE On December 7, 2000, an agreement was signed
          for  the purchase of a NANNACO, Inc Convertible Promissory Note in the
          amount  of  $140,000.  This  note  was for conversion to NANNACO, Inc.
          common  stock,  at  the  market  price  on the date of conversion. The
          maturity  date  is set as September 25, 2001 and the note contains the
          provision  for  the  payment  of  10%  interest.

     On  December  11,  2000,  two  additional  agreements  were  signed for the
     purchase  of  the  Company's  Convertible Promissory Notes in the amount of
     $205,500.  These notes were for conversion to NANNACO, Inc. common stock at
     the  market  price  on  the date of conversion. The maturity date is set as
     September  25,  2001 and the notes contain the provision for the payment of
     10%  interest.

          By  mutual  agreement with all parties, as of November 15, 2001, these
          notes were converted into NANNACO, Inc. $0.001 redeemable common stock
          at  a  value  of  $1  per  share.  Including  accrued  interest,  this
          conversion  resulted in the issuance of 377,742 shares of common stock
          (See  Note  12,  concerning  Redeemable  Common  Stock).


                                                                         Page 31
<PAGE>
     F.   The  accumulations  in  SALES  TAXES PAYABLE AND PAYROLL TAXES ACCRUED
          AND/OR  WITHHELD are the amounts due to government agencies for taxes.
          The  Sales  Taxes  due is the aggregate non-remitted amount due to the
          State  of  Texas  for  sales  taxes applicable to commercial jobs. The
          Payroll  Taxes  are the employees' portions and the employers' portion
          of  payroll taxes, plus penalties and interest on past due amounts. An
          installment  agreement  was executed with the Internal Revenue Service
          on  December  10, 2002, which calls for payments of $5,000 on December
          10,  2002,  and  $5000  each  month  until the taxes are paid in full.

NOTE 9 -  LONG TERM LIABILITIES
------
     A.   INSTALLMENT  NOTES  PAYABLE
Installment obligations consist of two notes payable.  The first note is secured
by  a vehicle, plus and the endorsement of the Company President. The funds were
utilized for the purchase of a truck to transport Company equipment from one job
site  to  another.  Interest on this obligation is included in the note balance,
and capitalized as a deferred charge.  This interest was amortized straight-line
method  over  the  term  of  the note.  This note was liquidated during the year
ended  September  30,  2002.

On February 19, 2000, an installment loan was obtained from Bank One.  This note
is  secured by the personal guarantee of the Company president and is payable in
sixty  monthly  installments  of $745 each.  The interest rate is 10% per annum.
The  details  at  September  30,  2002  and  2001  are  as  follows:

                                06/30/02    06/30/01
                               ----------  ---------
          Original Amount      $  35,000   $ 35,000
          Current Balance      $  25,350   $ 25,350
          Long-Term Portion    $       0   $ 16,410
          Current portion due  $  25,350   $  6,340
          Interest Rate               10%        10%
          Due Date             Monthly     Monthly

     B.   NOTES  PAYABLE  -  LINES  OF  CREDIT
          One  line  of  credit  loan  was  originated on July 15, 1999, and was
          secured  by  the  personal guarantee of the Company president. The due
          date  was  July 15, 2002, with interest at prime plus 1.25% to be paid
          monthly.

                                    09/30/02           09/30/01
                               -----------------  -----------------

          Available Amount     $          35,000  $          35,000
          Current Balance      $          33,986  $          33,986
          Long-Term Portion    $               0  $               0
          Current Portion Due  $          33,986  $          33,986
          Interest Rate         Prime plus 1.25%   Prime plus 1.25%
          Due date                      07/15/02           07/15/01


Additionally,  on  June 21, 2000, the company established two new line of credit
notes  with the Frost National Bank.  These notes are identical in structure and
allow  draws  up  to  $20,000  each.  Both  notes are secured by certificates of
deposit  (See  Note  3).  The  two notes were due June 21, 2001 and both require
interest  on the outstanding balance at the rate of 9.5% per annum.  These notes
were  renewed  with  a  new  due  date of June 21, 2002, and an interest rate of
5.00%.  Note #1 was retired at maturity of the CD (June 21, 2002), while Note #2
was  retired  in  July,  2002.


NOTE  10-  LOANS  FROM  SHAREHOLDERS
--------
Since  its  inception,  the  Company  has  been  compelled to seek capital on an
interim  basis  to  support  its  operation.  Two stockholders have provided the
necessary  cash advances to meet the requirements of the Company. These advances
are evidenced by notes from the Company and bear interest at the rate of 10% per
annum,  with  a  due  date  of  one  year  from  the  dates  of  the  advances.


NOTE 11 - LEASE COMMITMENTS
-------
     On  July  1,  2002,  the  Company relocated its facilities, which offered a
     combination  of  warehouse  space  and office accommodations. This space is
     leased  for  one  year payable at the rate of $950 per month. No prepayment
     was  required.


                                                                         Page 32
<PAGE>
NOTE 12 - REDEEMABLE COMMON STOCK AND PAID IN SURPLUS
-------
As discussed in Note 8E, the Company entered into an agreement with three
parties for purchase of a NANNACO, Inc. common stock through Convertible
Promissory Notes. These notes were made with non-qualified purchasers. As of
November 15, 2001, these notes were converted into 377,742 shares of NANNACO,
Inc. $0.001 common stock. This resulted in an allocation of $378 to the stock
and $377,364 to additional paid-in capital. Since the purchasers were
non-qualified purchasers, this stock can be redeemed at the option of the
purchaser at any time for three years from the dates of the original notes. The
company has a liability to redeem these shares, at the option of the
shareholder, at the issued value, plus accrued interest to the date of
redemption at the annual interest rate of 10%. This stock is therefore carried
on the balance sheet in a special category and not included in the equity
portion of the Company, since the Company has no control of the redemption.
Also, this stock is not included in the computation of earnings (losses) per
share of common stock outstanding. The treatment of this stock will continue to
be segregated until it is redeemed or the three-year period of optional
redemption expires (three years from the date of the original notes). The
potential liability of interest on the redemption of this stock was not
considered in the computation of the net loss for the period ended September 30,
2002, since it is only due if the option to redeem is exercised by the
purchasers of the stock. As of that date, the potential liability for interest
on this stock is $33,014.

NOTE 13 - COMMON STOCK, PREFERRED STOCK, PAID IN SURPLUS
-------
     The  company  was  charted  October 20, 1998 under the laws of the State of
     Texas.  1,000  shares  of $1.00 par value common stock was authorized. Nine
     individuals  were  party  to the initial capitalization of 500 shares at an
     issue  price  of  $2.00  per  share.

     Included  in  Paid-In  Capital  is  $108,039,  which  represents  equipment
     contributed  by the company's president and founder. The valuation assigned
     by the board of directors is less than the original cost or the fair market
     value  of  the  equipment.

     An  additional  50,000,000  shares  of  $0.001  par  value common stock and
     10,000,000  shares  of  $0.00 par value preferred stock was authorized in a
     charter  amendment  in  1999.


NOTE 13 - COMMON STOCK, PREFERRED STOCK, PAID IN SURPLUS
-------
Also, in 1999, the company issued 19,999,800 shares of the new par value
($0.001) per share common stock for services. Details as to the type of services
and number of shares is as follows:


                                                                         Page 33
<PAGE>
<TABLE>
<CAPTION>
               CLASSIFICATION             NUMBER OF
                 OF SERVICE                SHARES
        -----------------------------  --------------
<S>                                    <C>
        Administrative and Accounting          73,000
        Business Development                3,300,000
        Corporate Attorney                  1,015,000
        Employment                              3,000
        Company President                  12,302,800
        Procedure Consultant                    3,000
        Public Relations                      300,000
        Technical Advisor                       3,000
        Trust Shares for Expansion          3,000,000
                                      ---------------
             Total                         19,999,800
                                       ==============
</TABLE>

     At a stockholders meeting on March 12, 2000, a 1,000,000 to 1 reverse split
     was  approved.  All  certificates for under 1,000,000 shares were cancelled
     and  the  resultant  amounts  were refunded to the respective shareholders.
     Later,  on  March  31, 2000, a 1,000,000 to 1 forward split was declared by
     the  board  of  directors.

     During the year 2000, the company became aware that certain individuals had
     raised money from five investors, allegedly on behalf of the Company. These
     investors  had  been  promised  NANNACO,  Inc. common stock in exchange for
     cash. The company never received the funds raised by these investors. In an
     effort  to  protect  the  good  name of the Company, the board of directors
     agreed  to  honor  the investments made by these individuals and issue them
     the  appropriate  number  of  shares  of common stock ($0.001 par value) in
     exchange  for a Memoranda of Agreement not to take legal action against the
     Company. A one-time, non-cash charge of $435,000 ($1.00 per share) was made
     against  operations  for  the  year  ended  September  30,  2000.

     In  exchange  for consulting services, public relations, the Company issued
     50,000  shares  of  common  stock  ($0.001  par  value). Consulting fees of
     $50,000 ($1.00 per share) was charged against operations for the year ended
     September  30,  2000.

     Also  in  the  fiscal  year  ended  September 30, 2000, 1,029,200 shares of
     $0.001  par  value  common  stock  was converted from debts held by certain
     individuals.  This  conversion  converted $519,700 of debt received through
     April,  2000,  and  a  charge against operations in the amount of $509,500.
     Allocation  of  the $1,029,000 (based on an issue price of $1.00 per share)
     was  as  follows:
          Debt Conversion                               $ 519,700
          Non-cash Charge against Operations              509,500
          Less: Cash Expenses Relating to Conversion     (154,105)
                                                        ----------
                                                        $ 875,095
                                                        ==========
                                  (Continued)

Note 13 - COMMON STOCK, PREFERRED STOCK, PAID IN SURPLUS (Continued):
-------

A Regulation D private placement of 1,442,400 shares of $0.001 par value common
stock was held in 2000.  These shares were sold at $1.00 per share pursuant to
Rule 506 of the Securities and Exchange Commission, and this is the value that
set the benchmark for securities transactions of the Company during the fiscal
years 2001 and 2000.

The Company president and founder also gifted 1,000,000 shares of his personal
holdings of $0.001 common stock to selected individuals for uncompensated
services rendered to the Company in the formation, organization, and operation
of in the development stage.  These gifts ranged in size from 300 shares to
450,000 shares.  A one-time, non-cash charge of $999,000 was made against
operations for the period ended September 30, 2000.

On April 15, 2002, the Company president and founder sold 2,250,000 of his
personal   shares of NANNACO, Inc. $0.001 par value common stock for the sum of
$1,600,000.  As the proceeds of these sales become available, they will be
injected into the Company as working capital.

Note 14 - NET LOSS PER SHARE OF COMMON STOCK
-------
In the computation of the net loss per share of common stock for the period, the
retroactive stock splits and other changes in equity have been taken into
consideration, however the Redeemable Common Stock shares have not been
considered in this computation.


                                                                         Page 34
<PAGE>
Note 15 - SEGMENTED DISCLOSURES
-------
     A.   Reportable Segments
Due to the criteria for the selection of reporting segments, NANNACO, Inc. has
seven reporting segments.  These segments all meet one or more of the required
criteria, either now or in past periods.  The type of customer provided the
services classifies these segments.  The customers are divided into two
categories, which are residential customers and commercial customers.  The
services performed for residential customers are wood restoration, stone
restoration, surface sealing, and pressure washing.  For commercial customers,
the classifications are pressure washing, environmental services, and historical
restoration.

Residential wood restoration involves wood surface preparation, including
chemical or mechanical stripping.  Stone restoration involves essentially the
same process, except on surfaces of concrete or stone.  The sealing service to
residential customers is the chemical finishing process applied to either stone
or wood surfaces, whether of not the Company cleans the surface.  Pressure
washing for residential customers is generally water and pressure cleaning of
surfaces where water reclamation procedures are not a factor and need not apply.

Note 15 - SEGMENTED DISCLOSURES
-------

     A.   Reportable  Segments  (Continued):
          For commercial customers, the pressure washing is essentially the same
          service  as  offered  to  residential  customers,  only  provided  to
          commercial (business) customers. The environmental services offered to
          commercial  customers  are  spill  response  and/or  other specialized
          cleaning  services  that require water containment or special chemical
          processes and waste water removal. For historical restoration services
          to  commercial customers, NANNACO, Inc. performs services similar to a
          combination  of  residential  wood  restoration  and residential stone
          restoration,  plus  specialized  cleaning  and  sealing procedures for
          historical  structures.

     B.   Measurement  of  Segment  Profit  or  Loss  and  Segment  Assets
          The  accounting  policies  of  all  the segments are the same as those
          described  in  the  summary  of significant accounting policies. Sales
          revenue and cost of goods sold for each segment can be determined on a
          segment  basis. The remaining operating expenses are general corporate
          expenses,  but  are  allocated to the various segments on the basis of
          the  same  percentages  as  result  from the allocation of the cost of
          sales  for  the  individual  segments. Management feels that this is a
          fair allocation of the general corporate expenses to give a net profit
          from  operations  for  each  individual  segment.  The  allocation for
          interest  expense  is  based  upon  the  same  percentages.  Since all
          segments  utilize  fixed assets, the depreciation expense is allocated
          to the segments by the percentage of revenue generated by the segment.
          Interest income and investment revenues are common to all segments, so
          this  also  is  allocated  by  the segment income percentage. Gains or
          losses  on  asset  dispositions  are  also  allocated  by  the  income
          allocation  method.

SCHEDULE OF SEGMENTED ACCOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2002:

<TABLE>
<CAPTION>
                                             RESIDENTIAL SEGMENTS
                                  ----------------------------------------------
                                      WOOD         STONE                PRESSURE
                                  RESTORATION   RESTORATION   SEALING   WASHING
                                  ------------  ------------  --------  --------
<S>                               <C>           <C>           <C>       <C>

  Net sales                            22,704        16,466    43,044     3,401
  Interest income                       2,543         1,845     4,822       381
  Interest (expense)                   (7,258)       (6,017)   (9,228)     (407)
      Depreciation (expense)           (5,161)       (3,743)   (9,784)     (773)
  Loss on asset dispositions           (3,777)       (2,739)   (7,161)     (566)
  Segmented profits (loss)            (31,265)      (22,675)  (59,275)   (4,683)
  Allocation of fixed assets
        Total segments                 25,941        18,814    49,182     3,886
</TABLE>


                                                                         Page 35
<PAGE>
NOTE 15 - SEGMENTED DISCLOSURES
-------
SCHEDULE OF SEGMENTED ACCOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2002
(Continued):

<TABLE>
<CAPTION>
                                           COMMERCIAL SEGMENTS
                             ------------------------------------------------
                             PRESSURE   ENVIRONMENT     HISTORIC     COMPANY
                              WASHING     SERVICES    RESTORATION    TOTALS
                             ---------  ------------  ------------  ---------
<S>                          <C>        <C>           <C>           <C>
Net sales                      15,890        23,952        13,028    138,485
Interest income                 1,780         2,683         1,459     15,513
Interest (expense)             (1,893)       (9,643)       (4,158)   (38,604)
Depreciation (expense)         (3,612)       (5,445)       (2,961)   (31,479)
Loss on asset dispositions     (2,643)       (3,985)       (2,167)   (23,038)
Segmented profits (loss)      (21,882)      (32,983)      (17,941)  (190,704)
Allocation of fixed assets
      Total segments           18,156        27,367        14,886    158,232
</TABLE>


SCHEDULE OF SEGMENTED ACCOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001:

<TABLE>
<CAPTION>
                                          RESIDENTIAL SEGMENTS
                               -----------------------------------------------
                                   WOOD         STONE      PRESSURE
                               RESTORATION   RESTORATION    SEALING   WASHING
                               ------------  ------------  ---------  --------
<S>                            <C>           <C>           <C>        <C>
  Net sales                         81,781        37,786     61,150    15,610
  Interest income                    3,601         1,672      2,701       643
  Dividend income                    5,469         2,539      4,102       977
  (Loss) on disposition of
        assets                     (22,580)      (10,483)   (16,935)   (4,032)
  Interest (expense)               (12,347)       (6,421)   (11,853)   (1,482)
  Depreciation (expense)           (10,307)       (4,785)    (7,730)   (1,840)
  Segmented profits (loss)        (154,668)      (80,427)  (148,480)  (18,560)
  Allocation of fixed assets
        Total segments              72,142        33,495     54,106    12,883
</TABLE>



<TABLE>
<CAPTION>
                                             COMMERCIAL SEGMENTS
                               ------------------------------------------------
                               PRESSURE   ENVIRONMENT     HISTORIC     COMPANY
                                WASHING     SERVICES    RESTORATION    TOTALS
                               ---------  ------------  ------------  ---------
<S>                            <C>        <C>           <C>           <C>
  Net sales                      17,234        61,282        16,074    290,917
  Interest income                   772         2,701           772     12,862
  Dividend income                 1,172         4,102         1,172     19,533
  (Loss) on disposition of
        assets                   (4,838)      (16,935)       (4,838)   (80,641)
  Interest (expense)             (2,963)      (11,853)       (2,469)   (49,388)
  Depreciation (expense)         (2,208)       (7,730)       (2,208)   (36,808)
  Segmented profits (loss)      (37,120)     (148,480)      (30,933)  (618,668)
  Allocation of fixed assets
        Total segments           15,459        54,106        15,459    257,650
</TABLE>


                                                                         Page 36
<PAGE>
<TABLE>
<CAPTION>
NOTE 15 - SEGMENTED DISCLOSURES
-------
     C.  Reconciliation of Segmented Amounts:

                                              PERIOD ENDED
                                          09/30/02    09/30/01
                                         ----------  -----------
<S>                                      <C>         <C>
  Interest income                        $  15,513   $   12,862
Dividend income                             19,533
(Loss) on disposition of assets            (23,038)     (80,641)
Interest (expense)                         (38,604)     (49,388)
Depreciation (expense)                     (31,479)     (36,808)
Segmented profits (loss)                  (190,704)    (618,668)
                                         ----------  -----------
Net income (loss) to retained earnings   $(268,312)   ($753,110)
                                         ==========  ===========
</TABLE>


                                                                         Page 37
<PAGE>