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Commission File No. 000-33129

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
FORM 10-KSB



|/X/ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 | 
|--- | ------------------------------------------------------------------------------------ | 

For the Fiscal Year Ended: December 31, 2001



|/   / | TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | 
|----- | ---------------------------------------------------------------------------------------- | 

For the Transition Period From __ to __

INETEVENTS, INC.

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(Exact Name of Small Business Issuer as Specified in its Charter)


|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 95-4581903                          
|                                                               |  |                                     
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer
Identification No.)

|                                                             |  |           
|------------------------------------------------------------ |  | ----------
|500 South Sepulveda Blvd., Suite 311
Los Angeles, California |  | 90049     
|                                                             |  |           
|(Address of principal executive offices)                     |  | (Zip code)

Issuers telephone number: (310) 889-9064

Securities to be registered pursuant to Section 12(b) of the Act:

none

Securities to be registered pursuant to Section 12(g) of the Act:

$.0005 Common Stock

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(Title of Class)


Check whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or 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 disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K is not contained herein, and will not be contained, to the best
of registrants knowledge, in definitive proxy or information statements
incorporated by reference in Part



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II of this Form 10-K or any amendments to
this Form 10-K. /X/

As of
December 31, 2001, there were 6,986,500 shares of the registrants
Common Stock, $.0005 par value, outstanding.
The aggregate market value of shares of Common Stock held by
non-affiliates of the registrant as of April 25, 2002 is $1,767,500.

State the registrants revenues for the December 31, 2001 fiscal year:
$111,557.



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TABLE OF CONTENTS



|           |                                                                                                                          |  |  |  |  |  |  | 
|---------- | ------------------------------------------------------------------------------------------------------------------------ |  |  |  |  |  |  | 
|           | Item 1. Description of Business.                                                                                        
|           | Item 2. Description of Property.                                                                                        
|           | Item 3. Legal Proceedings.                                                                                              
|           | Item 4. Submission of Matter to Vote of Security Holders.                                                               
|           | Item 5. Market for Common Company Equity and Related Stockholder Matter.                                                
|           | Item 6. Managements Discussion and Analysis or Plan of Operation                                                       
|           | Item 7. Financial Statements.                                                                                           
|           | Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.                           
|           | Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act.
|           | Item 10. Executive Compensation.                                                                                        
|           | Item 11. Security Ownership of Certain Beneficial Owners and Management.                                                
|           | Item 12. Certain Relationships and Related Transactions.                                                                
|           | Item 13. Exhibits and Reports on Form 8-K.                                                                              
|SIGNATURES



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TABLE OF CONTENTS

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|Item 1.  |  | Description of Business                                                                                         |  |      | 4  | 
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|Item 2.  |  | Description of Property                                                                                         |  |      | 19 | 
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|Item 3.  |  | Legal Proceedings                                                                                               |  |      | 19 | 
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|Item 4.  |  | Submission of Matter to Vote of Security Holders                                                                |  |      | 19 | 
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|Item 5.  |  | Market for Common Registrant Equity and Related Stockholder Matter                                              |  |      | 20 | 
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|Item 6.  |  | Managements Discussion and Analysis or Plan of Operation                                                       |  |      | 24 | 
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|Item 7.  |  | Financial Statements                                                                                            |  |      | 26 | 
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|Item 8.  |  | Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure                            |  |      |    | 
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|Item 9.  |  | Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act |  |      |    | 
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|Item 10. |  | Executive Compensation                                                                                          |  |      |    | 
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|Item 11. |  | Security Ownership of Certain
Beneficial Owners and Management                                                  |  |      |    | 
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|Item 12. |  | Certain Relationships and Related Transactions                                                                  |  |      |    | 
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|Item 13. |  | Exhibits and Reports on Form 8-K                                                                                |  |      |    | 
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|         |  | Signature                                                                                                       |  |      |    | 



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Item 1. Description of Business.

The following discussion contains forward-looking statements that
involve risk and uncertainties. These statements may be identified by the use
of terminology such as beliefs, experts, may, will, should or
anticipates or expressing this terminology negatively or similar expressions
or by discussions of strategy. The cautionary statements made should be read
as being applicable to all related forward-looking statements wherever they
appear in this Form 10-KSB. The actual results could differ materially from
those contained in this Form 10-KSB.

Important factors that could cause or contribute to such differences
include those discussed under the caption entitled Risk Factors, as well as
those discussed elsewhere in this Form 10-KSB.

Business Development

iNetEvents, Inc. (the Company) (formerly Summit World Ventures, Inc.)
was incorporated on December 18, 1986 under the laws of the State of Delaware
to engage in any lawful corporate activity, including, but not limited to,
selected mergers and acquisitions. Prior to July 28, 2000, we were in the
developmental stage and could be defined as a shell company, whose sole
purpose was to locate and consummate a merger or acquisition with a private
entity, and we did not have any operations. On July 28, 2000, we acquired
iNetEvents, Inc., a Nevada corporation and commenced operations. As part of
the acquisition  a reorganization in the form of a reverse merger, iNetEvents,
Inc., a Nevada corporation, became our wholly-owned subsidiary, and there was a
change of our control. iNetEvents, Inc., a Nevada corporation, was
incorporated on February 3, 1999. Our principal offices were relocated to 500
South Sepulveda Boulevard, Suite 311, Los Angeles, California 90049, (310)
889-9064.

Principal Services

We develop and
maintain software to be used for trade show and event management
purposes. We provide hosting services via the Internet. We charge a
fee for this service and also receive income based on the number of
registrations for the specific event. In addition, we may provide
consulting services to our customers. We have not sold our software to
our customers, but we may do so in the future. Such a sale may
include the sale of certain support services. Our software products can
be categorized into two broad areas: application service provider systems
software and system software. The application service



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provider software allows
users to access information or use the applications through a simple Internet
browser on any client computer, and automates the performance of specific
business data processing functions for the event producer who proposes to host
an event. In addition to computer software products, we offer a limited range
of consulting, education and supporting service for the event producer,
provided that said event producer is our customer or client. Systems software
is a complete platform to develop and deploy applications on the Internet and
corporate intranets, and includes database management software and development
tools that allow users to create, retrieve and modify various types of data
located on our servers.

We believe that electronic commerce (the exchange of goods and/or services
electronically over the Internet) is revolutionizing businesses by providing a
relatively low-cost means of distributing goods and services and expanding
markets globally, increasing efficiencies, and providing better, more
personalized customer services. As organizations are changing the way they
interact with their customers, communicate, share knowledge and share value, we
believe that to remain competitive, the development and deployment of a
web-based hosting application for conventions, trade shows, sales meetings and
seminars on the Internet is compatible with the concept of electronic commerce.

We intend to continually enhance our existing products and intend to
develop new products to meet our customers changing requirements as well as to
expand our product base.

iNetEvents Enterprise Edition (System Software)

We develop our software product for event producers,
organizations, and companies that host ten or more events per year. In this
case, the customer installs our software on their own servers. The event
producer has the flexibility to integrate our package with any other enterprise
application used by the event producer as well as add or modify our own events.
The software provides for advance registration, scheduling, previewing of
exhibits and speakers, product sales, and Internet email communications. The
system provides for computerized accounting and billing functions, credit card
processing, and accounting management information for the event producer.

iNetEvents Online Services (Application Service Provider)

The primary service that we offer is a version of the



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Enterprise Edition
(described above) delivered electronically via the Internet. With a simple
browser and network connection, the event producer can access our Internet
business applications at costs significantly lower than a traditional
deployment. While the event producer-customer owns the content that is created
on our server, we own the hardware, manage the application and server
architecture, maintain and upgrade the software and provide technical support
for the customers operations. The hardware and software are managed at our
leased facilities in Los Angeles. We currently offer this service as
iNetEvents Premier, however we anticipate that we will offer additional online
services (iNetEvents Presto) in the future.

A. iNetEvents Premier

The primary online service that we offer is a version of our Enterprise
Edition (described above) via the Internet. This full-featured online service
allows event producers to market their events electronically, offer event
registration via our e-commerce service as well as provide a range of event
oriented content. We provide in house hosting of singular or multiple events
that have potential participants of from 100 to 3,000 attendees.

B. iNetEvents Presto

We have developed and will commence marketing in 2002, on our server,
iNetEvents Presto, a software product which will permit event producers who
have potential participants from 2 to 100 attendees to host an event on our
server. We will provide minimal consulting services in connection with
creating the content but the iNetEvents Presto software will be designed so
that the event producer will be able to manage and make changes, by accessing
our secured website through our Internet browser.

iNetEvents Professional Services

We implements the event producers specific needs by offering a range of
professional services that allow our customers to take full advantage of the
Web-based products we offer. These professional services fall into three
primary categories including customization, consulting, training and support
services.

A. Consulting Services

We will help an event producer articulate his event



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needs, define event
goals and objectives, reach achievable benchmarks, develop and evaluate
mechanisms to measure success, specify engineering and design requirements, and
provide the necessary data to approach the Internet with a solid, well-grounded
plan.

B. Customization Services

We provide a range of design and development services that are utilized to
make our customers use of our software more effective. We believe that
building a successful event website and related intranet and extranet
programming is much more complicated that utilization of the hypertext markup
language (HTML) coding. Our technical department uses fundamental, advanced
and specialized technologies in web design and development and we will expertly
assist the event producer in managing our Internet event project from the
planning stage to the post event stage.

C. Training and Support

We offer a range on in house and Web-based training and support services
to our customers.

General Software Features

The creation of a fully customized, self-branded web-based wrapper for
the event producer extends the web producers marketing and promotional efforts
to an audience and the duration of the physical event. We believe that the
web-based exhibitor and attendee registration will reduce the event producers
administrative costs and will enhance the ability to reach event attendees and
exhibitors readily available to the event producer. The ability to register,
manage and communicate with event exhibitors, attendees, and the press via the
Internet and the capability to access a central database reduce both management
time and overhead costs. Real time event management provides the event
producer with up-to-date information and allows the event producer, with
limited Internet and Internet authoring, a more satisfying experience for the
exhibitors and attendees. The attendees have the ability to participate in the
event producers event prior, during and after the physical event. Further, we
provide the attendees with the option to schedule activities, sessions,
seminars and meetings with exhibitors at the physical event which we believe
will save the attendees time in planning their participation and event
experience. The event attendee can gather information about event seminars,
sessions, key notes and



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other activities via the Internet and the participants
can conduct e-commerce in a way that is easy, secure and convenient.

Factors That May Affect Future Results and Market Price of Stock

We operate in a rapidly changing environment that involves numerous risks,
some of which are beyond our control. The following discussion highlights some
of these risks.



|1. |  | Unless we obtain loans or additional funding, we may not be able to
continue as a going concern.
|-- |  | ------------------------------------------------------------------------------------------------

Our auditors going concern opinion and the notation in the financial
statements indicate that we have significant operating losses, working capital
deficiency and significant capital requirements which raise substantial doubt
about our ability to continue as a going concern. We have had a net loss of
$190,530 from our inception to December 31, 1999, we have had a net loss of
$366,706 for the year ended December 31, 2000 and we have a net loss of
$437,321 for the year ended December 31, 2001. We anticipate that we will
continue to experience losses as we continue implementing our expansion
program. Until such time as we have revenues in excess of expenditures, we
will be required to secure loans and if we do not secure the loans (or raise
additional capital if loans or funding are not forthcoming), we may not be
successful in continuing to operate our business.



|2. |  | We have minimal operating history and revenue and we have minimal assets.
|-- |  | -------------------------------------------------------------------------

We commenced operations in February of 1999. Subsequently, we leased
office facilities in April of 1999 and began the development of our product.
In August of 1999 we released the first beta version of our Enterprise
Edition. From August 1999 through February of 2000 we further refined our
software applications and officially offered our services and products in
February, 2000 on a limited basis. Accordingly, we have an extremely limited
operating history upon which an evaluation and our business can be based. Our
business must be considered in light of the risks, expenses and problems
frequently encountered by companies in their early stage of development,
particularly companies in new and rapidly evolving markets such as the
Internet. Specifically, such risks include our failure to anticipate and adopt
to a developing market, the rejection of our services by event producers,
organizations and companies that host events, development of equal or superior



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services or products by competitors, and the inability to identify, attract,
retain and motivate qualified personnel. There can be no assurance that we
will be successful in addressing such risks.



|3. |  | There can be no assurance that we can generate revenue growth, or that
any revenue growth that is achieved can be sustained.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------

Revenue growth that we may achieve may not be indicative of future
operating results. In addition, we have increased, and plan to significantly
increase further, our operating expenses in order to increase our sales and
marketing efforts, fund greater levels of product development, increase our
marketing staff, and increase our general and administrative costs to support
the enlarged organization. If there are no increased revenues, our business,
results of operations and financial condition will be materially adversely
affected. Given the initial level of planned expenditures, we anticipate that
we may continue to incur losses for the foreseeable future and there can be no
assurance that we will ever achieve or sustain profitability.



|4. |  | Our success is dependent on event producers utilizing the Internet.
|-- |  | -------------------------------------------------------------------

The market for our services and products has recently begun to develop, is
rapidly evolving and will be characterized by an increasing number of market
entrants. As a result, our mix of services and products may undergo
substantial changes as we react to competitive and other developments in the
overall Internet market. Our market is highly dependent upon the increased use
of the Internet for information, publication, distribution and commerce. In
particular, the Internet and businesses using the Internet is an unproven
medium for our products and services. Accordingly, our future operating
results will depend substantially upon the increased use of the Internet by
individuals and companies for event producers, organizations and companies that
host events, the emergence of the Internet as an effective business use medium
and the successful implementation of our services and products program.
Moreover, critical issues concerning the commercial use of the Internet
(including security, reliability, cost, east of use, access, quality of service
and acceptance of advertising) remain unresolved and may impact our growth. If
the Internet does not develop as an effective business medium for hosting
events, our business, results of operations and financial condition will be



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materially adversely affected.



|5. |  | We face competition from other entities providing services similar to
ours.
|-- |  | ---------------------------------------------------------------------------

The market for all Internet services and products is intensely
competitive. Since there are no substantial barriers to entry, we expect
competition in these markets to intensify. We believe that the principal
competitive factors in these markets are name recognition, performance, ease of
use and functionality. Our existing competitors, as well as a number of
potential new competitors, may have longer operating histories in the Internet
market, greater name recognition, larger customer bases and databases and
significantly greater financial, technical and marketing resources. Such
competitors may be able to undertake more extensive marketing campaigns and
make more attractive offers to potential employees. Further, there can be no
assurance that our competitors will not develop services and products that are
equal or superior to ours or that achieve greater market acceptance than our
offerings in the area of name recognition, performance, ease of use and
functionality. There can be no assurance that we will be able to compete
successfully against our current or future competitors or that competition will
not have a material adverse effect on our business, results of operations and
financial condition.



|6. |  | The terrorist attacks of September 11, 2001 have had a significant
negative effect of our business.
|-- |  | ---------------------------------------------------------------------------------------------------

The market in which we compete is specifically tied to the corporate
travel market. After the terrorist attacks of September 11, 2001, the travel
market suffered a significant downturn. This downturn dramatically effected
our sales as most of our clients either cancelled or postponed
their scheduled and booked events. While, we anticipate that this business
will return there can be no assurance that it will occur this year or in the
foreseeable future. This fact may have a significant material effect on our
business and financial results.



|7. |  | Our success is dependent on keeping up with technological changes and is
dependent upon the acceptance of our recently introduced products as well
as developing new products.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The market in which we compete is characterized by rapidly changing
technology, evolving industry standards, frequent new service and product
announcements, introductions and



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enhancements and changing customer demands.
Market characteristics are exacerbated by the emerging nature of the Internet.
Accordingly, our future success will depend in significant part on our ability
to adapt to rapidly changing technologies, the ability to adapt our services
and products to evolving industry standards, and to continually improve the
performance, features and reliability of our services and products in response
to both evolving demands of the marketplace and competitive service and product
offerings. Our failure to adapt to such changes and evolution would have a
materially adverse effect on our business, results of operations and financial
condition.



|8. |  | If we have software defects, we may lose customers to other companies
with similar products.
|-- |  | --------------------------------------------------------------------------------------------

Our existing services or products or new releases, whether improved
versions or existing services or products or introductions of new services or
products, may contain undetected errors that require significant design
modifications, resulting in a loss of customer confidence and user support and
potentially having a material adverse effect on our services and products and,
consequently, our business, results of operations and financial condition.



|9. |  | We are dependent on the Internet.
|-- |  | ---------------------------------

The success of our services and products will depend in large part upon
the development of an infrastructure for providing Internet access and
services. Because online exchange of information of the Internet and other
similar open wide area networks are new and evolving, it is difficult to
predict with any assurance whether the Internet will provide to be a viable
commercial marketplace. The Internet has experienced, and is expected to
continue to experience, significant, geometric growth in the number of users
and amount of traffic. There can be no assurance that the infrastructure or
complementary services necessary to make the Internet a viable commercial
marketplace will be developed, or, if developed, that the Internet will become
a viable commercial marketplace for services and products such as those
offered. If the necessary infrastructure or complementary services or
facilities are not developed, or if the Internet does not become a viable
commercial marketplace, our business, results of operations and financial
condition will be materially adversely affected.



|10. |  | We have a dependency on our computer infrastructure.
|--- |  | ----------------------------------------------------



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Substantially all of our development hardware and software and certain of
our computer hardware operations are located at our leased facility in Los
Angeles, California. There can be no assurance that in the event we suffer any
system failure at either our leased facility in Los Angeles, California or a
back up off premises location in Los Angeles, California, we would not be
adversely affected. There can be no assurance that other Internet related
system failures at any location would not adversely affect the performance of
our services. While we have taken steps to minimize the risks associated with
power failures, fire, physical and electronic security, telecommunications
failures, any computer system is vulnerable to damage from fire, floods, power
loss, telecommunications failures, break-ins and similar events. The
occurrence of any of these risks could have a material adverse effect on our
business, results of operations and financial condition.



|11. |  | We are highly dependent upon Brandon Stauber and if we lose Mr. Stauber
or any of our key personnel, our business would be impaired.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------

Our success is highly dependent upon the management talent and experience
of our Chief Executive Officer and President, Brandon Stauber. Our loss of Mr.
Stauber could have a material adverse impact on our business. We presently
have a $1,000,000 life insurance policy on the life of Mr. Stauber. We do not
have a written employment agreement with Mr. Stauber and there can be no
assurance that we will be able to recruit or retain other qualified personnel,
should it be necessary to do so.



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|12. |  | The possible Rule 144 sales by existing shareholders may have an adverse
effect on the market value of the Company and the price of the stock.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------

3,981,500 of the our
6,986,500 shares presently outstanding common stock,
including the 1,680,000 shares owned by Brandon Stauber, is restricted
securities for purposes of Federal securities laws, and in the future they may
be sold in compliance with Rule 144 adopted under the Act. Rule 144 provides
in part that a person who is not an affiliate and who holds restricted
securities for a period of two years may sell all or part of such securities.
In addition, since we will be filing certain informational reports with the
Securities and Exchange Commission, and if certain other conditions are
satisfied, Rule 144 will allow a person (including an affiliate) holding
restricted securities for a period of one year to sell each three months,
provided he or she is not part of a control group acting in concert to sell, an
amount equal to the greater of the average weekly reported trading volume of
the stock during the four calendar weeks preceding the sale, or one percent of
the our outstanding common stock. We cannot predict the effect, if any, that
any such sales of common stock, or the availability of such common stock for
sale, may have on the market value of the common stock prevailing from time to
time. Sales of substantial amounts of common stock by shareholders,
particularly if they are affiliates, could have a material adverse effect upon
the market value of the common stock.



|13. |  | We are reliant upon our management to be successful.
|--- |  | ----------------------------------------------------

The rapid execution necessary for us to fully exploit the market for our
products and services requires an effective planning and management process.
Our growth is expected to continue to place, a significant strain on our
managerial, operational and financial resources. Our ability to manage
effectively will require it to continue to implement and improve our
operational, financial and management information systems and to attract,
identify, train, integrate and retain qualified personnel. These demands will
require the addition of new management personnel and the development of
additional expertise by existing management. Our success depends to a
significant extent on the ability of our officers to operate effectively, both
independently and as a group.



|14. |  | We have a strong dependence on network infrastructure and there is a risk
of system failure and loss of capacity.
|--- |  | -----------------------------------------------------------------------------------------------------------------



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The future success of our business will depend on the capacity,
reliability and security of our network infrastructure. We will have to expand
and adapt our network infrastructure as the number of customers and the amount
and type of information they wish to utilize in event production increase.
Such expansion and adaptation of our network infrastructure will require
substantial financial, operational and management resources. There can be no
assurance that we will be able to expand or adapt our network infrastructure to
meet additional demand or changing subscriber requirements on a timely basis
and at a commercially reasonable cost, or at all. While our objective is to
maintain substantial excess capacity, any failure to expand or enhance our
network infrastructure on a timely basis and at a commercially reasonable cost,
or at all. While our objective is to maintain substantial excess capacity, any
failure to expand or enhance our network infrastructure on a timely basis or to
adapt it to an expanding subscriber base, changing subscriber requirements or
evolving industry standards could materially adversely affect our business,
financial condition and results of operations.

Our operations and services provided are dependent on the extent to which
our computer equipment is protected against damage from fire, earthquakes,
power loss, telecommunications failures and similar events. A significant
portion of our computer equipment, including critical equipment dedicated to
our Internet access services, is located at a single facility in Los Angeles,
California now. Despite precautions taken, the occurrence of a natural
disaster or other unanticipated problems at our headquarters, the network hub
could cause interruptions in the services provided. In addition, failure of
our telecommunications providers to provide the date communications capacity
required as a result of a natural disaster, operational disruption or for any
other reason could cause interruptions in the services provided. We do
maintain fully redundant or backup Internet services or backbone facilities.
In spite of the backup, any accident, incident or system failure that causes
interruptions in our operations could have a material adverse effect on our
ability to provide Internet services to our even producers, and, in turn, on
our business, financial condition and results of operations.



|15. |  | Although we have implemented safeguards to prevent unauthorized access to
our application software, there always exists certain security risk which
may cause interruption, delays or cessation in service.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Despite the implementation of security measures, our network
infrastructure are vulnerable to computer viruses or problems caused by third
parties could lead to interruptions, delays or cessation in service to our
event producers. Inappropriate use of the Internet by third parties could also
potentially jeopardize the security or deter certain persons from using our
services. Such inappropriate use of the Internet would include attempting to
gain unauthorized access to information or systems  commonly known as
cracking or hacking. Although we intend to continue to implement security
measures, such measures have been circumvented in the past, and there can be no
assurance that measures implemented will not be circumvented in the future.
Alleviating problems caused by computer viruses or other inappropriate uses or
security breaches may require interruptions, delays or cessation in service to
our operations. There can be no assurance that customers or others will not
assert claims of liability against us as a result of failures. Further, until
more comprehensive security technologies are developed, the security and
privacy concerns of existing and potential customers may inhibit the growth of
the Internet service industry in general and our customer base and revenues in
particular.



|16. |  | We are dependent, in part, upon the copyright and trade secret laws to
protect our proprietary technology; however, there is a risk that our
competitors will be able to develop technologies that are equivalent or
superior to ours.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our success depends in part upon our software and related documentation.
We principally rely upon copyright, trade secret and contract law to protect
our proprietary technology. There can be no assurance that the steps taken
will be adequate to prevent misappropriation of our technology or that the our
competitors will not independently develop technologies that are substantially
equivalent or superior to our technology.



|17. |  | The unsettled law as it relates to online service companies creates a
possibility that liability may result for information supplied by our
customers that are disseminated through our software.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The law relating to the liability of Internet on-line services companies
for information carried on or disseminated through their networks is unsettled.
Several private lawsuits seeking to impose such liability upon Internet
on-line services companies are currently pending. Although no such claims have
ever been asserted against us, there can be no assurance that



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such claims will
not be asserted in the future, or if asserted, will not be successful.
Furthermore, although we have attempted to limit our liability by the terms of
our standard service agreement, there can be no assurance that our liability
would be so limited in the event of any litigation or other claim against us.

As the law in this area develops, the potential imposition of liability
upon us for information carried on and disseminated through our network could
require us to implement measures to reduce our exposure to such liability,
which may require the expenditure of substantial resources or the
discontinuation of certain products or service offerings. Any costs that are
incurred as a result of contesting any such assert claims or the consequent
imposition of liability could materially adversely affect our business,
financial condition and results of operation.



|18. |  | There may be a volatility of our stock price.
|--- |  | ---------------------------------------------

Since the common stock is publicly traded, the market price of the common
stock may fluctuate over a wide range and may continue to do so in the future.
The market price of the common stock could be subject to significant
fluctuations in response to various factors and events, including, among other
things, the depth and liquidity of the trading market of the common stock,
quarterly variations in actual or anticipated operating results, growth rates,
changes in estimates by analysts, market conditions in the industry (including
demand for Internet access), announcements by competitors, regulatory actions
and general economic conditions. In addition, the stock market from time to
time experienced significant price and volume fluctuations, which have
particularly affected the market prices of the stocks of high technology
companies, and which may be unrelated to the operating performance of
particular companies. As a result of the foregoing, our operating results and
prospects from time to time may be below the expectations of public market
analysts and investors. Any such event would likely result in a material
adverse effect on the price of the common stock.



|19. |  | You will receive no dividends on your investment.
|--- |  | -------------------------------------------------

We have never paid dividends. We do not anticipate declaring or paying
dividends in the foreseeable future. Our retained earnings, if any, will
finance the development and expansion of our business and the payment of
dividends will be at our board of directors discretion and contingent upon our



16.



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financial condition, earnings, capital requirements, and other factors. Future
dividends may also be affected by covenants contained in loan or other
financing documents we may execute. Therefore, there can be no assurance that
cash dividends of any kind will ever be paid.



|20. |  | If we issue future shares, present investors per share value will be
diluted.
|--- |  | -----------------------------------------------------------------------------

We are authorized to issue a maximum of 100,000,000 shares of common stock
at $0.005 par value and 10,000,000 shares of serial preferred stock at $.01 par
value. The board of directors authority to issue common stock and preferred
stock, or either, without shareholder consent under Delaware law, may dilute
the value of the outstanding common stock.



|21. |  | There is currently a softening of demand for both computer hardware and
software and if economic and business conditions deteriorate, said
deterioration may have material affect on our business.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our revenue growth and profitability depend on the overall demand for
computer, software and services. Because our sales are primarily to business
customers, our business also depends on general economic and business
conditions. A softening of demand for computer software caused by weakening of
the economy will result in decreased revenues or lower growth rates.



|22. |  | Although we believe that we have complied will all accounting guidances
in connection with the preparation of our financial statements, any
changes may require us to restate or recast our financial statements which
may have an adverse affect upon our business, results of operations or
financial position.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In October 1997, the American Institute of Certified Public Accountants
(AICPA) issued Statement of Position (SOP) No. 97-2, Software Revenue
Recognition which superseded SOP No. 91-1. SOP No. 97-2 was effective for our
fiscal year beginning June 1, 1998, as amended by SOP No. 98-4 and SOP No.
98-9, and provides guidance on applying generally, accepted accounting
principles for software revenue recognition transactions. Based on our
interpretation of the requirements of SOP No. 97-2, as amended, application of
this statement did not and is not expected to have a material impact on our
revenue. In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin No. 101 (SAB 101), Revenue Recognition in



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Financial,
Statements which provides further revenue recognition guidance, the accounting
profession continues to review certain provisions of SOP No. 97-2 and SAB 101
with the objective of providing additional guidance on implementing its
provisions. Depending upon the outcome of these reviews and the issuance of
implementation guideline and interpretations, we may be required to change our
revenue recognition policies and business practices, and such changes could
have a material adverse effect on our business, results of operations or
financial position.

We have capitalize internal use software and website development costs and
we have estimated the useful life of the capitalized cost as two years. As of
December 31, 2001 and December 31, 2000, the balance of
capitalized software development costs were approximately $80,536 and
$58,277, respectively.



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|23. |  | There can be no assurance that our new products will achieve significant
market acceptance or will generate significant revenue. Additional
products that we plan to directly or indirectly market in the future are
in various stages of development. As of December 31, 2001, the balance of
capitalized software development costs was approximately $80,536.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The market for our services are characterized by rapid technological
advances in hardware and software development, evolving standards in computer
hardware and software technology and frequent new product introductions and
enhancements. Product introductions, such as iNetEvents Presto, and possible
short product life cycles may necessitate high levels of expenditures for,
research and development. To obtain a competitive position, we must enhance and
improve existing products and continue to introduce new software and new
versions of existing software that will satisfy increasingly sophisticated
customer requirements and achieve market acceptance. Our inability or failure
to successfully enhance and improve our products in a timely manner, and
position and/or price our products, could have a material adverse effect on our
business, results of operations or financial position.

If we were to experience delays in the commercialization and introduction
of new or enhanced software, if customers were to experience significant
problems with the implementation and installation of software, or if customers
were dissatisfied with software functionality or performance, this
could have a material adverse effect on our business, results of operations or
financial position.

We are dependent upon the development of new business products. Our
success is dependent, in part, upon the ability of our management group to
execute our business plan.



|24. |  | Our pricing of the products may not be conducive to continued use.
|--- |  | ------------------------------------------------------------------

Intense competition in the various markets in which we compete may put
pressure on us to reduce prices on our products. Changes in the customers use
of our products could also result in lower license revenues if our pricing
model is not adapted to such usage. Any such price reductions and resulting
lower license revenues could have a material adverse effect on our business,
results of operations or financial position if we cannot offset these price
reductions with a corresponding increase in sales



19.



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volumes or lower spending.



20.



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|25. |  | Our growth is dependent upon the hiring and retention of employees.
|--- |  | -------------------------------------------------------------------

Our continued growth and success depend to a significant extent on the
continued service of our senior management and other key employees and the
hiring of new qualified employees. Competition for highly-skilled business,
product development, technical and other personnel is becoming more intense due
to lower overall unemployment rates, the boom in information technology
spending and private companies that can offer greater equity incentives that
provide the potential of greater compensation in connection with an initial
public offering. Accordingly, we expect to experience increased compensation
costs that may not be offset through either improved productivity or higher
prices. There can be no assurances that we will be successful in continuously
recruiting new personnel and in retaining existing personnel. In general, we do
not have long-term employment or non-competition agreements with our employees.
The loss of one or more key employees or our inability to attract additional
qualified employees or retain other employees could have a material adverse
effect on the continued growth.



|26. |  | We are in an extremely competitive environment.
|--- |  | -----------------------------------------------

The computer software industry is an intensely competitive industry with
several large vendors that develop and market databases, application
development tools, business applications and business intelligence products.
Almost all of these vendors have significantly greater, financial and technical
resources than us. The introduction of new competitive products into one or
more of our various markets, the addition of new functionality into an existing
competitive product or the acquisition by one of our competitors of a product
could have a material adverse effect on our business, results of operations or
financial position.

The rapid change in the computer software industry, coupled with the lower
barriers to entry, create a environment where new competition may be expected.

New distribution methods (e.g. electronic channels) and opportunities
presented by the Internet and electronic commerce have removed many of the
barriers to entry historically faced by small and start-up companies in the
software industry. We expect to face increasing competition in the various
markets in which it competes.



21.



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Employees

We have two (2) full time. See Item 9  Directors, Executive Officers,
Promoters and Control Persons  Resumes; Compliance with Section 16(a) of the
Exchange Act.

Competition

The market for all Internet services and products is intensely
competitive. Since there are no substantial barriers to entry, we expect
competition in these markets to intensify. We believe that the principal
competitive factors in these markets are name recognition, performance, ease of
use and functionality. Our existing competitors, as well as a number of
potential new competitors, may have longer operating histories in the Internet
market, greater name recognition, larger customer bases and databases and
significantly greater financial, technical and marketing resources. Such
competitors may be able to undertake more extensive marketing campaigns and
make more attractive offers to potential employees. Further, there can be no
assurance that our competitors will not develop services and products that are
equal or superior to our or that achieve greater market acceptance than our
offerings in the area of name recognition, performance, ease of use and
functionality. There can be no assurance that we will be able to compete
successfully against our current or future competitors or that competition will
not have a material adverse effect on our business, results of operations and
financial condition.




Item 2. Description of Property.

We presently occupy office space at 500 South Sepulveda Boulevard, Suite
311, Los Angeles, CA 90049. This space consists of 1118 square feet of office
space, leased for a term which expires on April 14, 2002 at $2,674.26 per
month. As of April 15, 2002, we occupy the office space on a
month to month basis at $2,674.26 per month.




Item 3. Legal Proceedings.

There is no litigation pending or threatened by or against the Company.




Item 4. Submission of Matter to Vote of Security Holders.



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There has been no matters submitted to the Companys security holders.






|Item 5. | Market for Common Company Equity and Related Stockholder Matter.
|------- | ----------------------------------------------------------------

(a)  Market Price.

The Companys common stock is currently traded on the OTC Bulletin Board
System under the symbol IEVT. The following table sets forth, for the
periods indicated, the high and low closing bid prices for the common stock of
the Company as reported on said system (or as may have been previously reported
on the Over the Counter Bulletin Board System). The bid prices reflect
inter-dealer quotations, do not include retail mark-ups, mark-downs or
commissions, and do not necessarily reflect actual transactions.

|         |  |      |      |          |  |         |      |       |  |  |      |  |  |  |      | 
|-------- |  | ---- | ---- | -------- |  | ------- | ---- | ----- |  |  | ---- |  |  |  | ---- | 
|Date     |  | Open |      | High Bid |  | Low Bid |      | Close
|         |  |      |      |          |  |         |      |      
|10/25/00 |  |      | 3.20 |          |  |         | 3.20 |       |  |  | 3.16 |  |  |  | 3.20 | 
|11/27/00 |  |      | 2.95 |          |  |         | 2.95 |       |  |  | 2.66 |  |  |  | 2.84 | 
|12/26/00 |  |      | 1.53 |          |  |         | 1.55 |       |  |  | 1.34 |  |  |  | 1.45 | 
|01/22/01 |  |      | 1.20 |          |  |         | 1.44 |       |  |  | 0.41 |  |  |  | 1.38 | 
|02/26/01 |  |      | 1.20 |          |  |         | 1.30 |       |  |  | 1.22 |  |  |  | 1.25 | 
|03/26/01 |  |      | 0.84 |          |  |         | 1.02 |       |  |  | 0.81 |  |  |  | 1.02 | 
|04/23/01 |  |      | 1.01 |          |  |         | 1.07 |       |  |  | 0.80 |  |  |  | 1.01 | 
|05/21/01 |  |      | 0.97 |          |  |         | 1.00 |       |  |  | 0.70 |  |  |  | 0.90 | 
|06/25/01 |  |      | 0.85 |          |  |         | 0.85 |       |  |  | 0.65 |  |  |  | 0.85 | 
|07/23/01 |  |      | 0.80 |          |  |         | 0.60 |       |  |  | 0.75 |  |  |  | 0.75 | 
|08/27/01 |  |      | 0.55 |          |  |         | 0.75 |       |  |  | 0.51 |  |  |  | 0.70 | 
|09/24/01 |  |      | 0.62 |          |  |         | 0.65 |       |  |  | 0.40 |  |  |  | 0.65 | 
|10/22/01 |  |      | 0.75 |          |  |         | 0.79 |       |  |  | 0.68 |  |  |  | 0.79 | 
|11/26/01 |  |      | 0.97 |          |  |         | 1.05 |       |  |  | 0.91 |  |  |  | 1.01 | 
|12/24/01 |  |      | 1.10 |          |  |         | 1.10 |       |  |  | 1.10 |  |  |  | 1.10 | 
|01/28/02 |  |      | 1.15 |          |  |         | 1.15 |       |  |  | 0.88 |  |  |  | 0.97 | 
|02/25/02 |  |      | 0.66 |          |  |         | 0.80 |       |  |  | 0.66 |  |  |  | 0.80 | 
|03/28/02 |  |      | 0.67 |          |  |         | 0.72 |       |  |  | 0.67 |  |  |  | 0.71 | 

On April 25, 2002, the ask for the common
stock of the Company was $.40 and the bid for the common stock of the Company
was $.     . The last trade
on April 25, 2002 was at $.40.

The Securities and Exchange Commission adopted Rule 15g-9, which
established the definition of a penny stock, for purposes relevant to the
Company, as any equity security that has



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a market price of less than $5.00 per
share or with an exercise price of less than $5.00 per share, subject to
certain exceptions. For any transaction involving a penny stock, unless
exempt, the rules require: (i) that a broker or dealer approve a persons
account for transactions in penny stocks; and (ii) the broker or dealer receive
from the investor a written agreement to the transaction, setting forth the
identity and quantity of the penny stock to be purchased. In order to approve
a persons account for transactions in penny stocks, the broker or dealer must
(i) obtain financial information and investment experience and objectives of
the person; and (ii) make a reasonable determination that the transactions in
penny stocks are suitable for that person and that person has sufficient
knowledge and experience in financial matters to be capable of evaluating the
risks of transactions in penny stocks. The broker or dealer must also deliver,
prior to any transaction in a penny stock, a disclosure schedule prepared by
the Commission relating to the penny stock market, which, in highlight form,
(i) sets forth the basis on which the broker or dealer made the suitability
determination; and (ii) that the broker or dealer received a signed, written
agreement from the investor prior to the transaction. Disclosure also has to
be made about the risks of investing in penny stock in both public offering and
in secondary trading, and about commissions payable to both the broker-dealer
and the registered representative, current quotations for the securities and
the rights and remedies available to an investor in cases of fraud in penny
stock transactions. Finally, monthly statements have to be sent disclosing
recent price information for the penny stock held in the account and
information on the limited market in penny stocks.

For the initial listing in the NASDAQ SmallCap market, a company must have
net tangible assets of $4 million or market capitalization of $50 million or a
net income (in the latest fiscal year or two of the last fiscal years) of
$750,000, a public float of 1,000,000 shares with a market value of $5 million.
The minimum bid price must be $4.00 and there must be 3 market makers. In
addition, there must be 300 shareholders holding 100 shares or more, and the
company must have an operating history of at least one year or a market
capitalization of $50 million.

For continued listing in the NASDAQ SmallCap market, a company must have
net tangible assets of $2 million or market capitalization of $35 million or a
net income (in the latest fiscal year or two of the last fiscal years) of
$500,000, a public float of 500,000 shares with a market value of $1 million.



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The minimum bid price must be $1.00 and there must be 2 market makers. In
addition, there must be 300 shareholders holding 100 shares or more.

(b)  Holders.

There are thirty three (33) holders of the Companys Common Stock,
including Cede & Co.

As of the date of this Form 10KSB, all of the issued and outstanding
shares of the Companys Common Stock held by non-affiliates are eligible for
sale under Rule 144 promulgated under the Securities Act of 1933, as amended,
subject to certain limitations included in said Rule. In general, under Rule
144, a person (or persons whose shares are aggregated), who
has satisfied a one year holding period, under certain circumstances, may sell
within any three-month period a number of shares which does not exceed the
greater of one percent of the then outstanding Common Stock or the average
weekly trading volume during the four calendar weeks prior to such sale. Rule
144 also permits, under certain circumstances, the sale of shares without any
quantity limitation by a person who has satisfied a
two-year holding period and who is not, and has not been for the preceding
three months, an affiliate of the Company.

In summary, Rule 144 applies to affiliates (that is, control persons) and
nonaffiliates when they resell restricted securities (those purchased from the
issuer or an affiliate of the issuer in nonpublic transactions). Nonaffiliates
reselling restricted securities, as well as affiliates selling restricted or
nonrestricted securities, are not considered to be engaged in a distribution
and, therefore, are not deemed to be underwriters as defined in Section 2(11),
if six conditions are met:



| | (1) |  | Current public information must be available
about the issuer unless sales are limited to those made by
nonaffiliates after two years.                                                                                                                                                                     
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (2) |  | When restricted securities are sold, generally
there must be a one-year holding period.                                                                                                                                                                                                                    
|
| | (3) |  | When either restricted or nonrestricted
securities are sold by an affiliate after one year, there are
limitations on the amount of securities that may be sold; when
restricted securities are sold by non-affiliates between the
first and second years, there are identical limitations; after
two years,



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| |     |  | there are no volume limitations for resales by
non-affiliates.                                                                                                                                                                                                                                                     
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (4) |  | Except for sales of restricted securities made by
nonaffiliates after two years, all sales must be made in
brokers transactions as defined in Section 4(4) of the
Securities Act of 1933, as amended, or a transaction directly
with a market maker as that term is defined in Section
3(a)(38) of the 1934 Act.
|
| | (5) |  | Except for sales of restricted securities made by
nonaffiliates after two years, a notice of proposed sale must
be filed for all sales in excess of 500 shares or with an
aggregate sales price in excess of $10,000.                                                                                              
|
| | (6) |  | There must be a bona fide intention to sell
within a reasonable time after the filing of the notice
referred to in (5) above.                                                                                                                                                                                      



26.



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Common Stock.

We are authorized to issue 100,000,000 shares of common stock $.0005 par
value and 10,000,000 shares of serial preferred stock at $.01 par value. As of
December 31, 2001, there were 6,986,500 common shares issued and outstanding.
All shares of common stock outstanding are validly issued, fully paid and
non-assessable.

Voting Rights.

Each share of common stock entitles the holder to one vote, either in
person or by proxy, at meetings of shareholders. The holders are not permitted
to vote their shares cumulatively. Accordingly, the holders of common stock
holding, in the aggregate, more than fifty percent of the total voting rights
can elect all of our directors and, in such event, the holders of the remaining
minority shares will not be able to elect any of such directors. The vote of
the holders of a majority of the issued and outstanding shares of common stock
entitled to vote thereon is sufficient to authorize, affirm, ratify or consent
to such act
or action, except as otherwise provided by law.

Quasi-California Corporation.

Section 2115 of the California General Corporation law provides that a
corporation incorporated under the laws of a jurisdiction other than
California, but which has more than one-half of its outstanding voting
securities and which has a majority of its property, payroll and sales in
California, based on the factors used in determining its income allocable to
California on its franchise tax returns, may be required to provide cumulative
voting until such time as the Company has its shares listed on certain national
securities exchanges, or designated as a national market security on NASDAQ
(subject to certain limitations). Accordingly, holders of the our common stock
may be entitled to one vote for each share of common stock held and may have
cumulative voting rights in the election of directors. This means that holders
are entitled to one vote for each share of common stock held, multiplied by the
number of directors to be elected, and the holder may cast all such votes for a
single director, or may distribute them among any number of all of the
directors to be elected.

Our existing directors who are also shareholders, acting in harmony, may
be able to elect a majority of the members of our board of directors even if
Section 2115 is applicable.



27.



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Dividend Policy.

All shares of common stock are entitled to participate proportionally in
dividends if our board of directors declares them out of the funds legally
available and subordinate to the rights, if any, of the holders of outstanding
shares of preferred stock. These dividends may be paid in cash, property or
additional shares of common stock. We have not paid any dividends since our
inception and presently anticipate that all earnings, if any, will be retained
for development of our business. Any future dividends will be at the discretion
of our board of directors and will depend upon, among other things, our future
earnings, operating and financial condition, capital requirements, and other
factors. Therefore, there can be no assurance that any dividends on the common
stock will be paid in the future.

Miscellaneous Rights and Provisions.

Holders of common stock have no preemptive or other subscription rights,
conversion rights, redemption or sinking fund provisions. In the event of our
dissolution, whether voluntary or involuntary, each share of common stock is
entitled to share proportionally in any assets available for distribution to
holders of our equity after satisfaction of all liabilities and payment of the
applicable liquidation preference of any outstanding shares of preferred stock.






|Item 6. | Managements Discussion and Analysis or Plan of Operation
|------- | ---------------------------------------------------------

Plan of Operation.

The revenues in the
twelve-months ending December 31, 2001 were $111,557
compared to revenues for the twelve months ending December 31,
2000 of $86,927.

During the twelve-month period ending December 31, 2001, we incurred
expenses of $548,878 compared to $453,633 for the twelve-months ending December
31, 2000. These expenses primarily consisted of salary expenses, software
development, general operations and marketing expenses.

We continue to carefully control our expenses, and have limited our debt
outstanding as we move forward with the



28.



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implementation of a business plan. We
have two employees at the present time and engage personnel through consulting
agreements where necessary as well as outside attorneys, accountants and
technical consultants.

Our products currently include only the Enterprise Edition and our
Premier Online Services. We do, however, have several additional products
being developed. We have in development an entry level online service, to be
named Presto for smaller events, mixers and consumer type activities and we
intend to market this product in the last quarter of 2002. We are also
planning to develop a mid-range product with many of the features of our full
version that will allow us to open additional opportunities in our market. We
are also planning the introduction of a vertical portal designed specifically
to support event producers who would eventually use one of our products.

In March of 2000, the technology industry, and specifically the Internet
sector fell out of favor in the eyes of investors. Over the next year and as
the recession developed, we continued to develop and market our product with
limited successes despite the general slowdown in the overall market.
We have provided services for the following notable clients since the
launch of the product in early 2000:



| |  |  | Bank of America                         
| | - |  | ----------------------------------------
|
| |  |  | eBay                                    
|
| |  |  | State of California                     
|
| |  |  | Meeting Professionals International     
|
| |  |  | WholeLife Corporation                   
|
| |  |  | University of Washington                
|
| |  |  | PrinTrak  A Motorola Company           
|
| |  |  | American Electronics Association        
|
| |  |  | Japan External Trade Organization       
|
| |  |  | Los Angeles Regional Technology Alliance
|
| |  |  | Southern California Software Council    
|
| |  |  | CalTech/MIT Enterprise Forum            
|
| |  |  | Corporate University Exchange           

After the September 11 terrorist attacks all business of ours was either
cancelled or postponed as we are directly tied to the corporate travel market.
At that time, we took steps to lower our so called burn rate even further to
ensure that we could continue offering our services when the market rebounded.



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In addition to our existing business of offering Web-based services to
event producers, we our actively considering a mergers and acquisitions
strategy. We believe are uniquely postured to make high revenue acquisitions
to expand our market and enhance shareholder value. We have engaged Convergent
Technology Partners of Seattle, Washington, to provide merger and acquisition
consulting services.

Liquidity.

We have minimum liquidity and access to cash. In order to continue
operations, the Company must raise additional equity capital or use debt
instruments to continue operations. We are currently seeking to raise equity
capital to enhance our marketing and sales processes. We believe that our
investment in



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marketing and sales will directly influence our ability to become cash flow
positive in the last quarter of 2002.

We do not have sufficient cash to finance its operations at this stage of
its development and is seeking additional financing on acceptable terms and
conditions.

Capital Resources.

The Company is currently seeking to expand its hosting capabilities and
accordingly needs capital to complete this expansion.

The Corporation has to date, financed its development stage by the sale of
common stock and through long term debt.

At December 31,
2001, the Corporation had 6,986,500 shares of common stock
outstanding. Cash on hand at December 31, 2001 and
December 31, 2000 was
approximately $100 and $4,000, respectively.

We recognize that we will continue to need additional cash during the next
twelve months and these needs will coincide with the cash demands resulting
from the general operations. There is no assurance that we will be able to
obtain additional capital as required, or obtain the capital on terms and
conditions acceptable to it.




Item 7. Financial Statements.

INETEVENTS, INC. AND SUBSIDIARY
CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2001 AND 2000
 CONTENTS

|                                                                                                         |  |  |     | 
|-------------------------------------------------------------------------------------------------------- |  |  | --- | 
|Report of Independent Auditors                                                                           |  |  | F-1 | 
|                                                                                                        
|Consolidated Balance Sheets as of December 31, 2001 and 2000                                             |  |  | F-2 | 
|                                                                                                        
|Consolidated Statements of Operations for the years ended December 31, 2001
and 2000                     |  |  | F-3 | 
|                                                                                                        
|Consolidated Statements of Stockholders (Deficit) Equity for the years
ended
December 31, 2001 and 2000 |  |  | F-4 | 
|                                                                                                        
|Consolidated Statements of Cash Flows for the years ended December 31, 2001
and 2000                     |  |  | F-5 | 
|                                                                                                        
|Notes to Consolidated Financial Statements as of December 31, 2001 and 2000                              |  |  | F-6 | 



31.



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REPORT OF INDEPENDENT AUDITORS

To the Board of Directors and Shareholders of
iNetEvents, Inc. and Subsidiary

We have audited the accompanying consolidated balance sheets of iNetEvents,
Inc. and Subsidiary as of December 31, 2001 and 2000, and the related
consolidated statements of operations, stockholders (deficit) equity, and cash
flows for the years ended December 31, 2001 and 2000. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An 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
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
iNetEvents, Inc. and Subsidiary as of December 31, 2001 and 2000, and the
consolidated results of its operations and its cash flows for the years ended
December 31, 2001 and 2000, in conformity with accounting principles generally
accepted in the United States of America.

As discussed in Note 1 to the consolidated financial statements, the Companys
recurring losses from operations, working capital deficit and accumulated
deficit raise substantial doubt about its ability to continue as a going
concern. Managements plans as to these matters are also described in Note 1.
These consolidated financial statements do not include any adjustments that
might result from the outcome of this uncertainty.



| | GOOD SWARTZ BROWN & BERNS LLP
| | -----------------------------

Los Angeles, California
April 24, 2002



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##### Table of Contents



INETEVENTS, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2001 and 2000

|                                                     |                                                                                                                                                |   |         |          |      |   |         |          |  
|---------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------- | - | ------- | -------- | ---- | - | ------- | -------- | -
|                                                     |                                                                                                                                                |   | 2001    |          | 2000
|                                                     |                                                                                                                                                |   |         |          |     
|ASSETS                                               |                                                                                                                                                |   |         |          |      |   |         |         
|CURRENT ASSETS                                       |                                                                                                                                                |   |         |          |      |   |         |         
|                                                     | Cash and cash equivalents                                                                                                                      |   | $       | 63       |      |   | $       | 4,089    |  
|                                                     | Accounts receivable                                                                                                                            |   |         | 1,982    |      |   |         | 12,543   |  
|                                                     | Deposits and other                                                                                                                             |   |         | 2,090    |      |   |         | 2,714    |  
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|                                                     | TOTAL CURRENT ASSETS                                                                                                                           |   |         | 4,135    |      |   |         | 19,346   |  
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|PROPERTY AND EQUIPMENT, net                          |                                                                                                                                                |   | 35,375  |          |      |   | 53,079  |         
|CAPITALIZED SOFTWARE DEVELOPMENT COSTS, net          |                                                                                                                                                |   | 80,536  |          |      |   | 58,277  |         
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|TOTAL ASSETS                                         |                                                                                                                                                | $ | 120,046 |          |      | $ | 130,702 |         
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY       |                                                                                                                                                |   |         |          |      |   |         |         
|CURRENT LIABILITIES                                  |                                                                                                                                                |   |         |          |      |   |         |         
|                                                     | Bank overdraft                                                                                                                                 |   | $       | 4,779    |      |   | $       |         |  
|                                                     | Accounts payable and accrued expenses                                                                                                          |   |         | 76,528   |      |   |         | 23,756   |  
|                                                     | Accrued interest expense                                                                                                                       |   |         | 22,660   |      |   |         | 4,850    |  
|                                                     | Loans payable                                                                                                                                  |   |         | 17,500   |      |   |         |         |  
|                                                     | Loans payable to stockholders                                                                                                                  |   |         | 253,500  |      |   |         | 65,000   |  
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|                                                     | TOTAL CURRENT LIABILITIES                                                                                                                      |   |         | 374,967  |      |   |         | 93,606   |  
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|COMMITMENTS AND CONTINGENCIES (NOTE 9)               |                                                                                                                                                |   |         |          |      |   |         |         
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|STOCKHOLDERS (DEFICIT) EQUITY                       |                                                                                                                                                |   |         |          |      |   |         |         
|                                                     | Common stock, $0.0005 par value; authorized-100,000,000 shares;
issued and outstanding  6,986,500 shares in 2001 and 6,784,000
shares in 2000 |   |         | 3,493    |      |   |         | 3,392    |  
|                                                     | Additional paid-in capital                                                                                                                     |   |         | 736,143  |      |   |         | 590,940  |  
|                                                     | Accumulated deficit                                                                                                                            |   |         | (994,557 | )    |   |         | (557,236 | )
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|                                                     | TOTAL STOCKHOLDERS (DEFICIT) EQUITY                                                                                                           |   |         | (254,921 | )    |   |         | 37,096   |  
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         
|TOTAL LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY |                                                                                                                                                | $ | 120,046 |          |      | $ | 130,702 |         
|                                                     |                                                                                                                                                |   |         |          |      |   |         |         

See accompanying notes to consolidated financial statements.



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##### Table of Contents



INETEVENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

|                                                     |                                     |                          |           |         |          |      |           |         |          |  
|---------------------------------------------------- | ----------------------------------- | ------------------------ | --------- | ------- | -------- | ---- | --------- | ------- | -------- | -
|                                                     |                                     |                          |           | 2001    |          | 2000
|                                                     |                                     |                          |           |         |          |     
|REVENUE                                              |                                     |                          |           |         |          |      |           |        
|                                                     | Software hosting revenue            |                          | $         | 84,250  |          |      | $         | 86,927  |         
|                                                     | Consulting and registration revenue |                          |           | 27,307  |          |      |           |        |         
|                                                     |                                     |                          |           |         |          |      |           |        
|TOTAL REVENUE                                        |                                     |                          | 111,557   |         |          |      | 86,927    |        
|                                                     |                                     |                          |           |         |          |      |           |        
|OPERATING EXPENSES                                   |                                     |                          |           |         |          |      |           |        
|                                                     | Selling, general and administrative |                          |           | 310,735 |          |      |           | 325,476 |         
|                                                     | Bad debt expense                    |                          |           | 58,148  |          |      |           |        |         
|                                                     | Depreciation expense                |                          |           | 18,731  |          |      |           | 11,871  |         
|                                                     | Amortization expense                |                          |           | 85,122  |          |      |           | 106,416 |         
|                                                     | Investment banking expense          |                          |           | 55,254  |          |      |           |        |         
|                                                     | Interest expense                    |                          |           | 17,927  |          |      |           | 3,500   |         
|                                                     | Other expense                       |                          |           | 2,961   |          |      |           | 6,370   |         
|                                                     |                                     |                          |           |         |          |      |           |        
|                                                     |                                     | TOTAL OPERATING EXPENSES |           |         | (548,878 | )    |           |         | (453,633 | )
|                                                     |                                     |                          |           |         |          |      |           |        
|NET LOSS FROM OPERATIONS                             |                                     | $                        | (437,321  | )       |          | $    | (366,706  | )      
|                                                     |                                     |                          |           |         |          |      |           |        
|Weighted average number of common shares outstanding |                                     |                          | 6,873,062 |         |          |      | 6,223,300 |        
|                                                     |                                     |                          |           |         |          |      |           |        
|Basic and diluted loss per share                     |                                     | $                        | (0.06     | )       |          | $    | (0.06     | )      
|                                                     |                                     |                          |           |         |          |      |           |        

See accompanying notes to
consolidated financial statements.



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##### Table of Contents



INETEVENTS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS (DEFICIT) EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

|                                                                                             |  |              |            |            |  |                 |        |          |  |       |         |   |  |   |          |   |  |   |          |  
|-------------------------------------------------------------------------------------------- |  | ------------ | ---------- | ---------- |  | --------------- | ------ | -------- |  | ----- | ------- | - |  | - | -------- | - |  | - | -------- | -
|                                                                                             |  | COMMON STOCK |            |            |  |                 |        |          |  |       |         |   |  |  
|                                                                                             |  |              |            | ADDITIONAL |  | RETAINED        |        |          |  |      
|                                                                                             |  | SHARES       |            | AMOUNT     |  | PAID IN CAPITAL |        | EARNINGS |  | TOTAL
|                                                                                             |  |              |            |            |  |                 |        |          |  |      
|Balance, January 1, 2000                                                                     |  |              | 2,825,715  |            |  | $               | 1,413  |          |  | $     | 276,354 |   |  | $ | (190,530 | ) |  | $ | 87,237   |  
|Sale of common stock                                                                         |  |              | 464,285    |            |  |                 | 232    |          |  |       | 162,268 |   |  |   |         |   |  |   | 162,500  |  
|Cancellation of stock pursuant to
Plan of Reorganization                                     |  |              | (3,290,000 | )          |  |                 | (1,645 | )        |  |       | 1,645   |   |  |   |         |   |  |   |         |  
|Issuance of common stock to the subsidiarys
stockholders pursuant to Plan of Reorganization |  |              | 3,500,000  |            |  |                 | 1,750  |          |  |       | (1,750  | ) |  |   |         |   |  |   |         |  
|Stockholders equity of the parent company                                                   |  |              | 3,000,000  |            |  |                 | 1,500  |          |  |       | 500     |   |  |   | (2,000   | ) |  |   |         |  
|Elimination of the parent companys accumulated deficit                                      |  |              |            |            |  |                 |        |          |  |       | (2,000  | ) |  |   | 2,000    |   |  |   |         |  
|Sale of common stock                                                                         |  |              | 219,000    |            |  |                 | 109    |          |  |       | 153,891 |   |  |   |         |   |  |   | 154,000  |  
|Exercise of options                                                                          |  |              | 65,000     |            |  |                 | 33     |          |  |       | 32      |   |  |   |         |   |  |   | 65       |  
|Net loss in 2000                                                                             |  |              |           |            |  |                 |       |          |  |       |        |   |  |   | (366,706 | ) |  |   | (366,706 | )
|                                                                                             |  |              |            |            |  |                 |        |          |  |       |         |   |  |   |          |   |  |   |          |  
|Balance, December 31, 2000                                                                   |  |              | 6,784,000  |            |  |                 | 3,392  |          |  |       | 590,940 |   |  |   | (557,236 | ) |  |   | 37,096   |  
|Sale of common stock                                                                         |  |              | 97,500     |            |  |                 | 48     |          |  |       | 84,952  |   |  |   |         |   |  |   | 85,000   |  
|Issuance of common stock for repayment of note payable                                       |  |              | 5,000      |            |  |                 | 3      |          |  |       | 4,997   |   |  |   |         |   |  |   | 5,000    |  
|Exercise of options                                                                          |  |              | 100,000    |            |  |                 | 50     |          |  |       |        |   |  |   |         |   |  |   | 50       |  
|Issuance of warrants                                                                         |  |              |           |            |  |                 |       |          |  |       | 55,254  |   |  |   |         |   |  |   | 55,254   |  
|Net loss in 2001                                                                             |  |              |           |            |  |                 |       |          |  |       |        |   |  |   | (437,321 | ) |  |   | (437,321 | )
|                                                                                             |  |              |            |            |  |                 |        |          |  |       |         |   |  |   |          |   |  |   |          |  
|Balance, December 31, 2001                                                                   |  |              | 6,986,500  |            |  | $               | 3,493  |          |  | $     | 736,143 |   |  | $ | (994,557 | ) |  | $ | (254,921 | )
|                                                                                             |  |              |            |            |  |                 |        |          |  |       |         |   |  |   |          |   |  |   |          |  

See accompanying notes to consolidated financial statements.



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INETEVENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

|                                                  |                                                                             |                                                      |                                           |          |          |          |        |          |         |          |  
|------------------------------------------------- | --------------------------------------------------------------------------- | ---------------------------------------------------- | ----------------------------------------- | -------- | -------- | -------- | ------ | -------- | ------- | -------- | -
|                                                  |                                                                             |                                                      |                                           |          | 2001     |          | 2000  
|                                                  |                                                                             |                                                      |                                           |          |          |          |       
|CASH FLOWS FROM OPERATING ACTIVITIES              |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  | Net loss                                                                    |                                                      | $                                         | (437,321 | )        |          | $      | (366,706 | )      
|                                                  | Adjustments to reconcile net loss to
net cash used in operating activities: |                                                      |                                           |          |          |          |        |          |        
|                                                  |                                                                             | Depreciation                                         |                                           |          | 18,731   |          |        |          | 11,871  |         
|                                                  |                                                                             | Amortization                                         |                                           |          | 85,122   |          |        |          | 106,416 |         
|                                                  |                                                                             | Bad
debt expense                                     |                                           |          | 58,148   |          |        |          |        |         
|                                                  |                                                                             | Issuance of warrants for investment banking services |                                           |          | 55,254   |          |        |          |        |         
|                                                  | Changes in operating assets and liabilities:                                |                                                      |                                           |          |          |          |        |          |        
|                                                  |                                                                             | Accounts receivable                                  |                                           |          | (47,587) |          |        |          | (12,543 | )       
|                                                  |                                                                             | Deposits and other                                   |                                           |          | 624      |          |        |          | 2,376   |         
|                                                  |                                                                             | Accounts payable and accrued expenses                |                                           |          | 52,772   |          |        |          | 17,226  |         
|                                                  |                                                                             | Accrued interest expense                             |                                           |          | 17,810   |          |        |          | 4,850   |         
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  |                                                                             |                                                      | NET CASH USED IN OPERATING ACTIVITIES     |          |          | (196,447 | )      |          |         | (236,510 | )
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|CASH FLOWS FROM INVESTING ACTIVITIES              |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  | Capitalized software development costs                                      |                                                      |                                           | (107,381 | )        |          |        | (111,930 | )      
|                                                  | Purchase of property and equipment                                          |                                                      |                                           |         |          |          |        | (6,542   | )      
|                                                  | Purchase of software                                                        |                                                      |                                           | (1,027   | )        |          |        |         |        
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  |                                                                             |                                                      | NET CASH USED IN INVESTING ACTIVITIES     |          |          | (108,408 | )      |          |         | (118,472 | )
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|CASH FLOWS FROM FINANCING ACTIVITIES              |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  | Bank overdraft                                                              |                                                      |                                           | 4,779    |          |          |        |         |        
|                                                  | Proceeds from loans                                                         |                                                      |                                           | 219,000  |          |          |        | 30,000   |        
|                                                  | Loan repayment                                                              |                                                      |                                           | (8,000   | )        |          |        |         |        
|                                                  | Proceeds from issuance of common stock                                      |                                                      |                                           | 85,000   |          |          |        | 316,564  |        
|                                                  | Proceeds from exercise of stock options                                     |                                                      |                                           | 50       |          |          |        |         |        
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  |                                                                             |                                                      | NET CASH PROVIDED BY FINANCING ACTIVITIES |          |          | 300,829  |        |          |         | 346,564  |  
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|NET DECREASE IN CASH                              |                                                                             |                                                      | (4,026                                    | )        |          |          | (8,417 | )       
|CASH, BEGINNING OF PERIOD                         |                                                                             |                                                      | 4,089                                     |          |          |          | 12,506 |         
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|CASH, END OF PERIOD                               |                                                                             | $                                                    | 63                                        |          |          | $        | 4,089  |         
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  | Cash paid for interest                                                      |                                                      | $                                         | 117      |          |          | $      | 456      |        
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|NON-CASH INVESTING AND FINANCING ACTIVITIES       |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  | Issuance of common stock for repayment of loan                              |                                                      | $                                         | 5,000    |          |          | $      |         |        
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         
|                                                  | Issuance of warrants for investment banking services                        |                                                      | $                                         | 55,254   |          |          | $      |         |        
|                                                  |                                                                             |                                                      |                                           |          |          |          |        |         

See accompanying notes to consolidated financial statements.



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##### Table of Contents



INETEVENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000

1. GENERAL

Description of Business: InetEvents, Inc. and Subsidiary (the Company)
develops and maintains software to be used for tradeshow and event management
purposes. The Company provides hosting services to its customers via the
internet. The Company charges a fee for this service and also receives income
based on the number of registrations for the specific event. In addition, the
Company may provide consulting services to its customers. The Company has not
sold its software to its customers, but may do so in the future. Such a sale
may include the sale of certain support services.

Significant Operating Losses: The Company had a cumulative net loss of $994,557
from the date of inception to December 31, 2001. To conserve its resources,
the Company has significantly reduced its staff to a minimum and reduced
capital expenditures. The Company anticipates that it will continue to
experience losses.

Significant Capital Requirements: The Companys capital requirements have been
and will continue to be significant. At December 31, 2001, the Company had
cash and cash equivalents of $63 and negative working capital of $370,832. The
Company will need additional financing, which the Company may raise through the
private placement of its securities. There can be no assurance that additional
financing will be available to the Company on acceptable terms, or at all.

Going Concern: The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern, which contemplates
the realization of assets and satisfaction of liabilities in the normal course
of business. The Companys significant operating loss, working capital
deficit, accumulated deficit and significant capital requirements raise
substantial doubt about the Companys ability to continue as a going concern.
The Company has minimum liquidity and access to cash. In order to
continue operations, the Company must raise additional equity capital
or use debt instruments to continue operations. The Company is
currently seeking to raise equity capital to enhance its marketing
and sales process. The financial statements do not include any adjustments relating to the
recoverability of the recorded assets or the classification of the liabilities
that might be necessary should the Company be unable to continue as a going
concern.



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##### Table of Contents



INETEVENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Continued
DECEMBER 31, 2001 AND 2000

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: iNetEvents, Inc. (the Company) (formerly Summit World
Ventures, Inc.) was incorporated on December 18, 1986 under the laws of the
State of Delaware to engage in any lawful corporate activity, including, but
not limited to, selected mergers and acquisitions. Prior to July 28, 2000, the
Company was in the developmental stage and could be defined as a shell
company, whose sole purpose was to locate and consummate a merger or
acquisition with a private entity, and it did not have any operations. On July
28, 2000, the Company acquired iNetEvents, Inc., a Nevada corporation
(iNetEvents Nevada) and commenced operations. iNetEvents Nevada, was
incorporated in Nevada on February 3, 1999. The terms of the merger called for
the Company to issue 3,500,000 of its common stock in exchange for 100% of the
common shares of iNetEvents Nevada. As part of the reorganization in the form
of a reverse merger wherein iNetEvents Nevada, became the Companys
wholly-owned subsidiary, and as such, no goodwill was being recognized. The
Company changed its name to iNetEvents, Inc., changed its trading symbol from
SWVT to IEVT, and the management of iNetEvents Nevada became the management of
the Company.

The Company sold and issued 500,000 shares of its common stock at $.004 per
share in 1986 and received the total amount of $2,000.00. In 1997, the Company
had a 2-for-1 stock split and each outstanding share was split, reconstituted
and converted into two shares. At that time, the total authorized stock was
increased to 1,000,000 and the par value was changed to $.0005 per share. On
March 20, 2000, the Company paid a two share for each one share outstanding
dividend with the distribution occurring on April 5, 2000. This resulted in
the 3,000,000 shares outstanding prior to the reorganization with iNetEvents
Nevada (3,500,000 shares were issued in exchange for the 3,390,000 shares of
the Nevada corporation).

For accounting purposes, the transaction has been treated as an acquisition of
the Company by iNetEvents Nevada and as a recapitalization of iNetEvents
Nevada. The historical financial statements prior to the reorganization became
those of iNetEvents Nevada even though they are labeled as those of the
Company. In the recapitalization, the historical stockholders equity of
iNetEvents Nevada prior to the merger is retroactively restated for the
equivalent number of shares received in the merger with an offset to paid-in
capital. Operations prior to the merger are those of iNetEvents Nevada. Basic
loss per share prior to the merger is restated to reflect the number of
equivalent shares received by the shareholders of iNetEvents Nevada.

The consolidated financial statements include the accounts of the Company and
its subsidiary. All significant intercompany transactions and accounts have
been eliminated.



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##### Table of Contents



INETEVENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Continued
DECEMBER 31, 2001 AND 2000

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES- Continued

Use of Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.

Cash Equivalents: The Company considers all highly liquid investments purchased
with an original maturity of three months of less to be cash equivalents.

Fair Value of Financial Instruments: The Companys financial instruments
consist of accounts receivable and loans payable. The fair value of the
Companys financial instruments approximates the carrying value of the
instruments.

Property and Equipment: Property and equipment are stated at cost. Depreciation
is computed using the straight-line method of depreciation over estimated
useful lives ranging from 3 to 7 years.

Revenue Recognition: The Company recognizes revenue from hosting services at
the initiation of the service, when a set-up fee is charged to its customers.
The Company will also recognize revenue monthly when it charges its customers a
monthly hosting fee. The typical hosting service contract duration is a few
months.

Registration revenue is recognized when registration occurs.

Consulting service revenue is recognized when the service is performed.

Advertising: Advertising costs are charged to operations as incurred.
Advertising costs for the years ended December 31, 2001 and 2000 were $13,690
and $55,538, respectively.

Income Taxes: The Company utilizes the asset and liabilities method for income
taxes. Under this method, deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and
their respective tax bases and operating loss and tax credit carryforwards.
Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the
period that includes the enactment date.

Capitalized Software Costs: Software costs associated with upgrades and
enhancements which lead to additional functionality of software used in hosting
activities are capitalized. Capitalized software costs are amortized over two
years. Software costs associated with planning of new software and costs
associated with maintaining software are expensed.



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INETEVENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Continued
DECEMBER 31, 2001 AND 2000

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES- Continued

Earnings (Loss) per Share: The Company adopted Statement of Financial
Accounting Standards No. 128, Earnings Per Share (SFAS No. 128) during its
fiscal year ended December 31, 1999. SFAS No. 128 requires the presentation of
basic earnings per common share and diluted earnings per common share. A basic
earnings per common share is computed by dividing income available to common
shares by the weighted average number of common shares outstanding. A diluted
earnings per common share includes the diluting effect of stock options and
warrants using the treasury stock method. The Company had loss from continuing
operations, and, as a result, basic and diluted loss per share is the same
amount.

Recent Accounting Pronouncements: In June 2001, Statements of Financial
Accounting Standards (SFAS) No. 142, Goodwill and Other Intangible Assetswas
issued. SFAS 142 requires, among other things, that companies no longer
amortize goodwill, but instead test goodwill for impairment at least annually.
In addition, SFAS 142 requires that the Company identify reporting units for
the purposes of assessing potential future impairments of goodwill, reassess
the useful lives of other existing recognized intangible assets, and cease
amortization of intangible assets with an indefinite useful life. An intangible
asset with an indefinite useful life should be tested for impairment in
accordance with the guidance in SFAS 142. SFAS 142 is required to be applied in
fiscal years beginning after December 15, 2001 to all goodwill and other
intangible assets recognized at that date, regardless of when those assets were
initially recognized. SFAS 142 requires the Company to complete a transitional
goodwill impairment test nine months from the date of adoption. The Company is
also required to reassess the useful lives of other intangible assets within
the first interim quarter after adoption of SFAS 142.

The Company believes that SFAS 142 will have no impact on its financial
position and results of operations.

Stock-based Compensation: SFAS No. 123 establishes a fair value method of
accounting for stock-based compensation plans and for transactions in which an
entity acquires goods or services from nonemployees in exchange for equity
instruments. SFAS 123 also encourages, but does not require companies to
record compensation cost for stock-based employee compensation. The Company
has chosen to continue to account for stock-based compensation utilizing the
intrinsic value method prescribed in Accounting Principles Board Opinion No.
25, Accounting for Stock Issued to Employees with pro forma disclosures of
net income as if the fair value method had been applied. Accordingly,
compensation cost for stock options is measured as the excess, if any, of the
fair market price of the Companys stock at the date of grant over the amount
an employee must pay to acquire the stock

Reclassifications: Certain amounts of the prior year were reclassified to
conform to the current year presentation.

Allowance for doubtful accounts: No allowance for
doubtful accounts was deemed necessary at December 31, 2001 and
2000.



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INETEVENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Continued
DECEMBER 31, 2001 AND 2000

3. BUSINESS CONCENTRATIONS

Substantially all of the Companys communication hardware and certain computer
hardware operations are located in the Companys leased facility in Los
Angeles, California. There can be no assurance that a system failure would not
adversely affect the performance of the Companys services.

The Companys success is highly dependent upon the management talent and
experience of Brandon Stauber, the President and CEO of the Company. The loss
of Mr. Stauber could have a material adverse impact on the Companys business.

Two customers represented approximately 81% of total revenue for the year ended
December 31, 2001. The Company markets it services nationwide, but has not yet
developed a diversified customer base.

4. PROPERTY AND EQUIPMENT

Property and equipment consist of the following at December 31, 2001 and 2000:

|                               |  |      |        |      |  |   |        | 
|------------------------------ |  | ---- | ------ | ---- |  | - | ------ | 
|                               |  | 2001 |        | 2000
|                               |  |      |        |     
|Furniture                      |  | $    | 4,122  |      |  | $ | 4,122  | 
|Software                       |  |      | 16,263 |      |  |   | 16,263 | 
|Computers and equipment        |  |      | 59,621 |      |  |   | 58,594 | 
|                               |  |      |        |      |  |   |        | 
|                               |  |      | 80,006 |      |  |   | 78,979 | 
|Less: accumulated depreciation |  |      | 44,631 |      |  |   | 25,900 | 
|                               |  |      |        |      |  |   |        | 
|                               |  | $    | 35,375 |      |  | $ | 53,079 | 
|                               |  |      |        |      |  |   |        | 

5. CAPITALIZED SOFTWARE DEVELOPMENT COST

Capitalized software development cost consists of the following at December 31,
2001 and 2000:

|                               |  |      |         |      |  |   |         | 
|------------------------------ |  | ---- | ------- | ---- |  | - | ------- | 
|                               |  | 2001 |         | 2000
|                               |  |      |         |     
|Cost                           |  | $    | 293,832 |      |  | $ | 186,451 | 
|Less: accumulated amortization |  |      | 213,296 |      |  |   | 128,174 | 
|                               |  |      |         |      |  |   |         | 
|                               |  | $    | 80,536  |      |  | $ | 58,277  | 
|                               |  |      |         |      |  |   |         | 



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INETEVENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Continued
DECEMBER 31, 2001 AND 2000

6. LOANS PAYABLE

At December 31, 2001 and 2000, loans payable consists of the following:

|                                                                                                                             |  |      |         |      |  |   |        | 
|---------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------- | ---- |  | - | ------ | 
|                                                                                                                             |  | 2001 |         | 2000
|                                                                                                                             |  |      |         |     
|Loans payable to a stockholder, unsecured, payable
on demand at principal plus 10% interest per annum                        |  | $    | 151,000 |      |  | $ | 40,000 | 
|Loans payable to a stockholder, unsecured, payable
on demand at principal plus 10% interest per annum                        |  |      | 77,500  |      |  |   |       | 
|Loans payable to a stockholder, secured by computer
equipment, payable on demand at principal plus 10% interest per annum    |  |      | 25,000  |      |  |   | 25,000 | 
|Loans payable to a nonstockholder, secured by computer
equipment, payable on demand at principal plus
10% interest per annum |  |      | 17,500  |      |  |   |       | 
|                                                                                                                             |  |      |         |      |  |   |        | 
|Totals                                                                                                                       |  | $    | 271,000 |      |  | $ | 65,000 | 
|                                                                                                                             |  |      |         |      |  |   |        | 

No interest was paid to shareholders for the year
ended December 31, 2001. As of December 31, 2001, $22,255
was accrued as interest payable to stockholders.

7. INCOME TAXES

At December 31, 2001 and 2000, the income tax effect of temporary differences
between financial and tax reporting gives rise to the deferred income tax
assets as follows:

|                                |  |      |          |      |  |   |          |  
|------------------------------- |  | ---- | -------- | ---- |  | - | -------- | -
|                                |  | 2001 |          | 2000
|                                |  |      |          |     
|Net operating loss carryforward |  | $    | 380,000  |      |  | $ | 220,000  |  
|Less: valuation allowance       |  |      | (380,000 | )    |  |   | (220,000 | )
|                                |  |      |          |      |  |   |          |  
|                                |  | $    |         |      |  | $ |         |  
|                                |  |      |          |      |  |   |          |  

At December 31, 2001, the Company has federal net operating loss carryforwards
and carrybacks of approximately $960,000 that expire through 2021. In assessing
the realizability of deferred tax assets, management considers whether it is
more likely than not that some portion or all of the deferred tax assets will
not be realized. The amount that the Company can utilize from its federal and
state net operating loss carryforwards will be subject to annual limitations
due to change of ownership. The ultimate realization of deferred tax assets is
dependent upon the generation of future taxable income. Management believes
that a valuation allowance equal to deferred tax assets is necessary at
December 31, 2001 and 2000.



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INETEVENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Continued
DECEMBER 31, 2001 AND 2000

8. STOCKHOLDERS DEFICIENCY

Issuance of stock:Prior to the reorganization, iNetEvents Nevada issued
2,035,000 shares of its restricted common stock to several employees as
founders shares. iNetEvents Nevada also issued 1,250,000 shares of its
restricted common stock for cash to several investors and 5,000 shares to an
individual for services. These shares were valued at $.35 per shares. In the
reorganization those 3,290,000 shares were cancelled and 3,500,000 shares were
issued.

Subsequent to the reorganization, in September 1, 2000, the Company sold
100,000 shares to an investor for $35,000. Between September 1 and December 31,
2000, the Company sold and issued an additional 119,000 shares of stock for
cash. Those shares were sold at $1.00 per share. In that period, the Company
also issued an additional 65,000 founders shares to several employees who
exercised their options.

During 2001, the company sold and issued the following shares of common stock:

|                               |        |                 |  |                |      |  |  |   |        | 
|------------------------------ | ------ | --------------- |  | -------------- | ---- |  |  | - | ------ | 
|Shares sold and
        issued |        | Price per share |  | Total proceeds
|                               |        |                 |  |               
|                               | 25,000 |                 |  | $              | .50  |  |  | $ | 12,500 | 
|                               | 72,500 |                 |  |                | 1.00 |  |  |   | 72,500 | 
|                               |        |                 |  |                |      |  |  |   |        | 
|                               | 97,500 |                 |  |                |      |  |  | $ | 85,000 | 
|                               |        |                 |  |                |      |  |  |   |        | 

In addition, 5,000 shares were issued as repayment of $5,000 of a loan payable
and 100,000 shares were issued in accordance with founders options exercised at
$.0005.

Issuance of warrants: Warrants outstanding as of December 31, 2001 was as
follows:

|                   |         |                 |                  |  |  | 
|------------------ | ------- | --------------- | ---------------- |  |  | 
|Number of warrants |         | Expiration date
|                   |         |                
|                   | 68,215  |                 | July 31, 2006   
|                   | 136,430 |                 | October 31, 2006
|                   |        
|                   | 204,645
|                   |        

All of the warrants have an exercise price of $0.65 per share and were issued
for consulting services. The fair value of these warrants was $0.27 and a total
of $55,254 was expensed to consulting services

Employees stock option: As of December 31, 2001 there were no options
outstanding and the company does not have a formal option plan.



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INETEVENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Continued
DECEMBER 31, 2001 AND 2000

9. COMMITMENTS AND CONTINGENCIES

Investment Banking Agreement: The Company has entered into an agreement with an
investment banker whereby the investment banker will seek candidates for the
Company to acquire or merge with. The agreement expires December 2002, unless
terminated earlier. The agreement requires the Company to issue warrants to
the investment banker for 5% of the Companys outstanding common stock upon the
closing of such a transaction. During the year ended December 31, 2001, the
Company issued warrants to the investment banker to purchase 204,645 shares of
common stock as compensation for services rendered. Those warrants were valued
using the Black-Sholes pricing model at $0.27 each. Accordingly, an expense
was recorded for $55,254.

Operating lease: The Company leases office space a non-cancellable operating
lease which expires April 2002. The monthly lease expense approximates $2,600.
Total lease expense for the years ended December 31, 2001 and
2000 approximated $32,000 and $28,000 respectively.
The Company intends to extend its lease on a month to month basis after its
expiration.






|Item 8. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|------- | -------------------------------------------------------------------------------------

There have been no changes nor any disagreements with the accountants or
the accountants findings.






|Item 9. | Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act.
|------- | ----------------------------------------------------------------------------------------------------------------

The members of our board of directors serve until the next annual meeting
of the stockholders, or until their



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successors have been elected. The officers
serve at the pleasure of the board of directors. On March 31, 2002, Joseph
Wallach resigned from the board of directors as an officer and director. We
have two vacancies on our board of directors. Information as to our directors
and executive officers is as follows:

|                |  |     |    |          |  |                       
|--------------- |  | --- | -- | -------- |  | ----------------------
|Name            |  | Age |    | Position
|                |  |     |    |         
|Brandon Stauber |  |     | 31 |          |  | President and Director
|Robert Thompson |  |     | 29 |          |  | Secretary and Director
|Rohit K. Shukla |  |     | 44 |          |  | Director              

The principal occupation and business experience during the last five
years for each of our present directors and executive officers are as follows:

| |                
| | ---------------
| | Brandon Stauber

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Brandon Stauber is the President and a Director. Mr. Stauber is
the founder, president and CEO of iNetEvents, Inc., prior to
founding iNetEvents, Mr. Stauber was the director of marketing for
Galatia, Inc., a Silicon Valley Internet start-up that focused on
the development of custom e-commerce applications. Mr. Stauber has
also served as vice president of marketing of DirectNet (an
Omnetrix Company), the third provider of commercial Internet
services in Los Angeles. Before working at DirectNet, Mr. Stauber
was the associate director for the Los Angeles Regional Technology
Alliance, a not-for-profit organization that provided business and
entrepreneurial-consulting services to Los Angeles high-tech and
Internet community. Mr. Stauber completed his graduate studies at
the University of Southern California, receiving his Master of
Public Policy with an emphasis in economic decision making and
international policy.

| |                
| | ---------------
| | Robert Thompson

| |                                                                                                                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Robert Thompson is the Secretary and a Director. Mr. Thompson has
spent the last five years as a computer-programming consultant. He
specialized in the implementation of enterprise resource planning
(ERP) software and EDI systems. Mr. Thompson brings a wide range
of programming experience to iNetEvents including



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| |                                                                                                             
| | ------------------------------------------------------------------------------------------------------------
| | Java, C++, SQL
and other database technologies. Mr. Thompson is a graduate of the
University of North Texas.

| |                
| | ---------------
| | Rohit K. Shukla

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Rohit K. Shukla is a director. For the past five years, Mr. Shukla
has served as the President and CEO of the Los Angeles Regional
Technology Alliance (LARTA), a private not-for-profit organization
that provides information, networking, and direct business
assistance to the technology community in Southern California; and
manages the California Technology Investment Partnership Program on
behalf of the State of California. Mr. Shukla holds a Masters in
Economics and Politics from Cambridge University, and a Masters in
Communication from Loyola Marymount University, Los Angeles.

The officers and directors may be deemed parents and promoters of the
Company as those terms are defined by the Securities Act of 1933, as amended.
All directors hold office until the next annual stockholders meeting or until
their death, resignation, retirement, removal, disqualification, or until their
successors have been elected and qualified. Officers of the Company serve at
the will of the board of directors.

There are no agreements or understandings for any of our officers or
directors to resign at the request of another person and none of the officers
or directors are acting on behalf of or will act at the direction of any other
person.

We have checked the box provided on the cover page of this Form to
indicate that there is no disclosure in this form of reporting person
delinquencies in response to Item 405 of Regulation S-B.




Item 10. Executive Compensation.

The following table sets forth compensation paid or awarded to all
officers and directors.

|                       |  |      |      |        |  |   |           | 
|---------------------- |  | ---- | ---- | ------ |  | - | --------- | 
|Name and               |  |      |      |        |  |   |           | 
|Principal Position     |  | Year |      | Salary
|                       |  |      |      |       
|Brandon Stauber,       |  |      | 1999 |        |  | $ | 6,750.00  | 
|Director and President |  |      | 2000 |        |  |   | 26,629.13 | 



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|                          |  |      |      |        |  |   |           | 
|------------------------- |  | ---- | ---- | ------ |  | - | --------- | 
|Name and                  |  |      |      |        |  |   |           | 
|Principal Position        |  | Year |      | Salary
|                          |  |      |      |       
|                          |  |      | 2001 |        |  |   | 40,750.00 | 
|Robert Thompson,          |  |      | 1999 |        |  | $ | 32,961.49 | 
|Director and Secretary    |  |      | 2000 |        |  |   | 52,433.27 | 
|                          |  |      | 2001 |        |  |   | 61,000.00 | 
|Rohit F. Shulka, Director |  |      | 1999 |        |  |   | 0         | 
|                          |  |      | 2000 |        |  |   | 0         | 
|                          |  |      | 2001 |        |  |   | 0         | 

During 1999 and through December 31, 2000, Mr. Stauber was also reimbursed
approximately $13,185 for business expenses he incurred and was reimbursed
approximately $4,706 for business expenses between January 1, 2000 and December
31, 2001.

During the last three years, none of our previously serving officers and
directors received any compensation for their services rendered. During the
same period, we did not accrue compensation for any such persons pursuant to
any agreement or otherwise.

No retirement, pension, profit sharing, stock option or insurance programs
or other similar programs have been adopted by the Company for the benefit of
its employees.






|Item 11. | Security Ownership of Certain Beneficial Owners and Management.
|-------- | ---------------------------------------------------------------

(a) Security Ownership of Certain Beneficial Owners.

The following table sets forth the security and beneficial ownership for
each class of our equity securities for any person who is known to be the
beneficial owner of more than five percent of the Company.

|               |  |                                                                         |  |            |           |          |  |  |      |  
|-------------- |  | ----------------------------------------------------------------------- |  | ---------- | --------- | -------- |  |  | ---- | -
|               |  | Name and                                                                |  | Amount and |           |          |  | 
|               |  | Address of                                                              |  | Nature of  |           |          |  | 
|               |  | Beneficial                                                              |  | Beneficial |           | Percent 
|Title of Class |  | Owner                                                                   |  | Owner      |           | of Class
|               |  |                                                                         |  |            |           |         
|Common         |  | Brandon Stauber
500 S. Sepulveda Blvd.,
Suite 311
Los Angeles, CA 90049 |  |            | 1,680,000 |          |  |  | 26.0 | %
|              
|Common         |  | Ronald J. Stauber
1880 Century Park East
Suite 300                      |  |            | 502,928   |          |  |  | 7.2  | %



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|               |  |                                                          |  |            |         |          |  |  |     |  
|-------------- |  | -------------------------------------------------------- |  | ---------- | ------- | -------- |  |  | --- | -
|               |  | Name and                                                 |  | Amount and |         |          |  | 
|               |  | Address of                                               |  | Nature of  |         |          |  | 
|               |  | Beneficial                                               |  | Beneficial |         | Percent 
|Title of Class |  | Owner                                                    |  | Owner      |         | of Class
|               |  |                                                          |  |            |         |         
|               |  | Los Angeles, CA 90067                                    |  |            |         |          |  |  |     |  
|              
|Common         |  | Robert Thompson
8882 Carson Street
Culver City, CA 90232 |  |            | 345,000 |          |  |  | 3.0 | %

The total of our outstanding Common Shares are held by 33 equity holders
(including Cede & Co.  street held securities).

(b)  Security Ownership of Management.

The following table sets forth the ownership for each class of our equity
securities owned beneficially and of record by all directors and officers of
the Company.



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|               |  |                                                                            |  |            |           |          |  |  |    |  
|-------------- |  | -------------------------------------------------------------------------- |  | ---------- | --------- | -------- |  |  | -- | -
|               |  | Name and                                                                   |  | Amount and |           |          |  | 
|               |  | Address of                                                                 |  | Nature of  |           |          |  | 
|               |  | Beneficial                                                                 |  | Beneficial |           | Percent 
|Title of Class |  | Owner                                                                      |  | Owner      |           | of Class
|               |  |                                                                            |  |            |           |         
|              
|Common         |  | Brandon Stauber
500 South Sepulveda Blvd.,
Suite 311
Los Angeles, CA 90049 |  |            | 1,680,000 |          |  |  | 26 | %
|              
|Common         |  | Robert Thompson
8882 Carson Street
Culver City, CA 90232                   |  |            | 345,000   |          |  |  | 3  | %
|              
|Common         |  | Joseph Wallach(1)
602 N. Alta Drive
Beverly Hills, CA 90210                |  |            | 30,000    |          |  |  |   |  
|              
|Common         |  | Rohit K. Shukla
746 West Adams Boulevard
Los Angeles, CA 90089             |  |            | 10,000    |          |  |  |   |  
|              
|Common         |  | All Officers and
Directors as a Group
(Four [4] individuals)               |  |            | 2,065,000 |          |  |  | 30 | %



---

|(1) |  | On March 31, 2002, Joseph Wallach retired and resigned from
the board of directors and as an officer.
|--- |  | -----------------------------------------------------------------------------------------------------




Item 12. Certain Relationships and Related Transactions.

Except for loans to us by Ronald J. Stauber, the father of Brandon
Stauber, in the sum of $156,000 as of December 31, 2001, there have been no
related party transactions, or any other transactions or relationships required
to be disclosed pursuant to Item 404 of Regulation S-B.




Item 13. Exhibits and Reports on Form 8-K.

There are no reports on Form 8-K incorporated herein by reference. The
following documents are filed as part of this report:



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37.



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SIGNATURES

Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the Company has duly caused this registration statement to be signed
on its behalf by the undersigned, thereunto duly authorized.

|                     |                           |                    
|-------------------- | ------------------------- | -------------------
|Date: April 26, 2002 | INETEVENTS, INC.         
|                    
|                     | By:                       | /s/ Brandon Stauber
|                     |                          
|                     | Brandon Stauber
President

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.

|                     |                           |                    
|-------------------- | ------------------------- | -------------------
|Date: April 26, 2002 | INETEVENTS, INC.         
|                    
|                     | By:                       | /s/ Brandon Stauber
|                     |                          
|                     | Brandon Stauber
President



38.