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

                                   FORM 10-KSB


[X] ANNUAL REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

    For the fiscal year ended December 31, 2001

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

    For the transition period from ________________ to _________________

                        Commission file number: 000-32201


                             LUMMI DEVELOPMENT, INC.
                         (Name of Small Business Issuer)

           Delaware                                             95-4735254
(State or Other Jurisdiction of                              (I.R.S. Employer
 Incorporation or Organization)                           Identification Number)

          5 Husband Place, Coldstream, British Columbia, Canada V1B 2V7
           (Address of Principal Executive Offices including Zip Code)

                                 (250) 503-1592
                           (Issuer's Telephone Number)

Securities registered under Section 12(b) of the Exchange Act: None

Securities registered under Section 12(g) of the Exchange Act: Common stock

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. [X] Yes [ ] No

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

State issuer's revenues for its most recent fiscal year. None

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date. 5,207,000 common shares
<PAGE>
                                     PART 1

ITEM 1. DESCRIPTION OF BUSINESS

GENERAL

Lummi Development, Inc. (the "Company") was incorporated in the State of
Delaware on January 19, 1999. Lummi Development, Inc.'s (the "Company",
"company", "Our", "our", "We", "we") business plan is to become actively engaged
in the business of selling related marine accessories. The Company plans to
implement its business strategy by initially manufacturing Marine Safety Kits
for sale through wholesale and retail distribution for pleasure boats (including
sport fishers, sport sedans, sailboats, motor sailors, speedboats and
inflatables).

MISSION

The mission of the Company is to create a profit by selling related marine
accessories, beginning with the manufacture of its Marine Safety Kits for sale
via wholesale and retail outlets as well as marinas, recreational boat
manufacturers and dealers as well as through its own web site on the Internet.

Initially, the Company intends to manufacture Marine Safety Kits for pleasure
boats (including sport fisher, sport sedans, sailboats, motor sailboats,
speedboats, and inflatables). The marine kits are compact and can be stored
for availability in case of an emergency. The container for the safety kits is
a bright orange bag, approximately 14 inches by 10 inches, that includes the
following: fire extinguisher (marine rated), regular sized flashlight, pack of 2
flares (15 minute duration each), one pair of gloves (light industrial weight),
all purpose first aid kit, interchangeable 4-head screwdriver, pliers or
adjustable wrench, one absorbent cotton cloth, one package rope (approximately
25 feet in length - 1/4 - 3/8 poly); SOS banner (printed red), and printed
descriptive material.

MANUFACTURING

The products incorporated in the marine safety kits can be purchased in large
quantities at cost saving levels. The space required to put together the
finished safety kits is modest and can be performed in a 500-600 square foot
warehouse. Sufficient space is available at present and the decision to expand
will be based upon price and logistics. Proximity to courier service location is
important for ease of shipping.

The Company has negotiated with a supply company to have the carrying cases made
up. A local printing firm was contacted to apply the decal to the carrying case
and to print brochures. This allows the purchase of the other items as finished
products and an assembly line technique for assembly of the final product.

                                       1
<PAGE>
SALES AND MARKETING

The Company plans to make available the product in several wholesale suppliers'
lines, retail outlets, marinas, boat manufacturers and dealers as well as its
own web site on the Internet. Any location, which services the marine industry,
could potentially be a supplier of this product. It is the Company's plan to
focus its marketing efforts to also include participation in trade shows and
co-marketing with strategic partners. Management attended a colossal sports and
leisure product show in Kelowna, BC and found that no similar emergency kits
were being offered.

The Company currently does not operate a web site, but plans to develop one that
would include offering the marine safety kits available for sale on the
Internet. The Company will develop one type of kit. The Company will offer
replacement components for the kits; however, first-time kit sales will make up
the majority of the Company's sales.

SUPPLIERS

The Company has selected suppliers of the components of the kit based on best
price, product and availability of materials, which comprise the marine safety
kits. After the marine safety kits have been assembled, the Company relies on
distributing the marine safety kits through wholesale suppliers' lines, to
marinas, boat manufacturers and dealers and to retail outlets, such as sporting
goods or other outlets where marine products are sold.

GOVERNMENTAL REGULATIONS

The Company is unaware of need for governmental approval for its proposed
business plan. The Company is not currently subject to direct federal, state or
local regulation, and laws or regulations applicable to access to or commerce on
the Internet, other than regulations applicable to businesses generally.
However, due to the increasing popularity and use of the Internet and other
online services, it is possible that a number of laws and regulations may be
adopted with respect to the Internet or other online services covering issues
such as user privacy, freedom of expression, pricing, content and quality of
products and services, taxation, advertising, intellectual property rights and
information security.

The Company is currently not aware of any federal, state or local laws and
regulations regulating the Internet at this time, which would materially affect
its proposed business activities.

The Company is unaware of any environmental laws (federal, state or local) that
will have an effect on its proposed business.

The Company has spent no money over the past two years on research and
development.

Currently, the Company has no employees excluding the current officers, Gary
Stannell and Trish Alpert. The officers anticipate devoting, at most, 20 hours
per month. This is only an estimation and may be increased or decreased
depending on unforeseen factors. Though no commercial conflicts are anticipated
between the current employers of the officers, director, and the Company no
assurance can be given that this will continue.

                                       2
<PAGE>
ITEM 2. DESCRIPTION OF PROPERTY

The Company owns no real property. The Company is provided sufficient space to
conduct its present business by the director of the Company. In the future, the
Company plans to use the offices of the director, at no cost to the Company.
Both parties have agreed to continue this arrangement until the Company begins
operations and/or generates revenue.

ITEM 3. LEGAL PROCEEDINGS

The party is not a party to, and none of the company's property is subject to,
any material pending or threatened legal proceeding.

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

None.

                                     PART II

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

     Title of Class                  Number of Record Holders
     --------------                  ------------------------
        Common                                  32

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

CERTAIN FORWARD-LOOKING INFORMATION

Information provided in this Annual Report on Form 10KSB may contain
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 that are not historical facts and information. These
statements represent the Company's expectations or beliefs, including, but not
limited to, statements concerning future operating results, statements
concerning industry performance, the Company's operations, economic performance,
financial conditions, margins and growth in sales of the Company's products,
capital expenditures, financing needs, as well assumptions related to the
foregoing. For this purpose, any statements contained in this annual report that
are not statements of historical fact may be deemed to be forward-looking
statements. These forward-looking statements are based on current expectations
and involve various risks and uncertainties that could cause actual results and
outcomes for future periods to differ materially from any forward-looking
statement or views expressed herein. The Company's financial performance and the
forward-looking statements contained herein are further qualified by other risks
including those set forth from time to time in the documents filed by the
Company with the Securities and Exchange Commission, including the Company's
most recent Form 10SB and on Form 10QSB.

It is Management's plan to raise additional funds through the sale of equity or
to seek additional capital through a sale of securities in private placements..

                                       3
<PAGE>
PLAN OF OPERATION

The Business Plan for the Company over the next year is to initially work the
Company toward production and distribution of marine safety kits. The Company
plans to order components for the marine safety kits in bulk from wholesale
suppliers and produce the finished marine kits for sale. The Company also plans
to put in place a marketing plan to make the marine safety kits available in
several wholesale outlets established during this period. Also, supply and labor
costs have been streamlined during the past year. In order to proceed with the
proposed business plan, the Company will need to raise additional capital.
Management's plan is to raise additional capital through the sale of its
securities in private placements. Also, the Company plans to develop a web site
to offer the marine safety kits available for sale on the Internet.

The Company may experience significant volatility in our quarterly results. If,
and when, the Company begins operation, there can be no assurance that we will
ever report a net income in any period, and we expect that we will report
operating losses for the foreseeable future.

Excluding its current officers, the Company has no employees. While the Company
plans to hire additional employees and train them, it may be unable to find and
hire additional qualified management and professional personnel. The addition of
employees will depend on the ability of the company to raise additional capital,
which cannot be assured.

Management does not anticipate any product research and development, or the
purchase or sale of any significant equipment.

Management has completed the Company's first production prototypes and is
preparing a marketing and sales plan.

To further the Company in its goal of producing and marketing marine safety
kits, the Company has taken the following actions during the year 2001:

     A)   A supplier was selected for bags to contain the kits.

     B)   A verbal agreement was reached with a local printing firm for decal
          application and brochure production.

     C)   Kit components were purchased and tested for reliability. The list of
          items that would make up the kit was finalized.

     D)   Production procedures were streamlined to minimize assembly costs.

     E)   Kit bags were designed and sketches sent to the manufacturer.

     F)   The first sample kits were assembled and are ready for distribution to
          dealer and marinas.

     G)   Warehouse space has been located but is not needed at this point in
          time.

                                       4
<PAGE>
ANALYSIS OF FINANCIAL CONDITION

COMPARISON OF YEAR ENDING DECEMBER 31, 2001 WITH DECEMBER 31, 2000.

Net sales were $0 for the years ended December 31, 2001 and 2000.

General and Administrative Expenses were $4,011 for 2001 and $8,281 for 2000.
The change is not considered indicative of any trend.

Net loss was $$4,011 for 2001 and $8,281 for 2000. The change is not considered
indicative of any trend.

The company is still a "Development Stage Company".

The Company had total assets of $121 on December 31, 2001 and $1,520 on December
31, 2000. The decrease in assets was the use of the money in the business.

The Company does not foresee a material increase in operating expenses until
such time sufficient capital can be raise and the Company proceeds with its
business plan. Management believes that the Company must be successful in
raising equity or debt financing sufficient to meet its current working capital
requirements and to support the expenses associated with producing the marine
safety kits and developing the web site on the Internet.

Management hopes to raise additional capital within the next twelve months to
initiate distribution and operations that include production of the marine
safety kits and developing the Company's web site on the Internet. The Company's
sole director makes up the current management team. This individual has other
obligations and plans to initially devote minimal time to promoting the
Company's strategic business plan. If other obligations take priority for the
director over that of the Company, it will have a material adverse impact on the
progress of the Company. In addition, excluding the shares that were issued to
the director at ($.0002 per share), there has been, and are no plans for
compensation to be paid to the director until sufficient revenue flow can be
generated.

Currently, management has not determined the dollar amount required to
adequately initiate its operations and has not determined a minimum or maximum
amount it plans to raise. The Company may encounter business initiatives that
require significant cash commitments or unanticipated problems or expenses that
could result in a requirement for additional cash before that time. If the
Company raises additional funds through the issuance of equity or convertible
debt securities, the percentage ownership of its shareholders would be reduced,
and such securities might have rights, preferences or privileges senior to its
common stock. Additional financing may not be available upon acceptable terms,
or at all. If adequate funds are not available or are not available on
acceptable terms, the Company's ability to fund its expansion, take advantage of
business opportunities, develop, or enhance its business plan or otherwise
respond to competitive pressures would be significantly limited, and it may
significantly restrict the Company's operations.

                                       5
<PAGE>
ITEM 7.  FINANCIAL STATEMENTS

                                ARMANDO C. IBARRA
                          CERTIFIED PUBLIC ACCOUNTANTS
                          (A PROFESSIONAL CORPORATION)


Armando C. Ibarra, C.P.A.                   Members of the California Society of
Armando Ibarra, Jr., C.P.A.                 Certified Public Accountants


                          INDEPENDENT AUDITOR'S REPORT


To the Board of Directors of
Lummi Development, Inc.
 (A Development Stage Company)

We have audited the accompanying  balance sheets of Lummi  Development,  Inc. (A
Development  Stage  Company) as of December  31, 2001 and 2000,  and the related
statements of operations,  changes in stockholders'  equity,  and cash flows for
the years then ended.  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 audit.

We conducted our audit in accordance with generally accepted auditing standards.
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 audit provides a reasonable basis for our opinion.

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


/s/ Armando C. Ibarra, CPA-APC
-----------------------------------
Armando C. Ibarra, CPA-APC

March 15, 2002
Chula Vista, California

                                       6
<PAGE>
                            LUMMI DEVELOPMENT, INC.
                          (A Development Stage Company)
                                 Balance Sheets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                              Year Ended         Year Ended
                                                              December 31,       December 31,
                                                                 2001               2000
                                                               --------           --------
<S>                                                            <C>                <C>
                                     ASSETS
CURRENT ASSETS
  Cash                                                         $    121           $  1,520
                                                               --------           --------
TOTAL CURRENT ASSETS                                                121              1,520
                                                               --------           --------

        TOTAL ASSETS                                           $    121           $  1,520
                                                               ========           ========

                       LIABILITIES & STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts Payable                                             $      0           $    705
  Loan Payable                                                    3,317                  0
                                                               --------           --------

TOTAL CURRENT LIABILITIES                                         3,317                705
                                                               --------           --------
        TOTAL LIABILITIES                                         3,317                705

STOCKHOLDERS' EQUITY
  Preferred stock, ($.0001 par value 20,000,000
     shares authorized; none issued and outstanding.)                 0                  0
  Common stock, ($.0001 par value 80,000,000
    shares authorized; 5,207,000 shares issued and
    outstanding as of December 31, 2001 and
    2000, respectively.)                                            521                521
  Additional paid-in capital                                     21,179             21,179
  Deficit accumulated during development stage                  (24,896)           (20,885)
                                                               --------           --------
TOTAL STOCKHOLDERS' EQUITY                                       (3,196)               815
                                                               --------           --------

        TOTAL LIABILITIES & STOCKHOLDERS' EQUITY               $    121           $  1,520
                                                               ========           ========
</TABLE>
                                       7
<PAGE>
                             LUMMI DEVELOPMENT, INC.
                          (A Development Stage Company)
                             Statement of Operations
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                    January 19, 1999
                                                 Year Ended         Year Ended        (inception)
                                                   Ended              Ended             through
                                                 December 31,       December 31,      December 31,
                                                    2001               2000              2001
                                                 -----------        -----------       -----------
<S>                                              <C>                <C>               <C>
REVENUES
  Revenues                                      $         0         $         0       $         0
                                                -----------         -----------       -----------

TOTAL REVENUES                                            0                   0                 0

GENERAL & ADMINISTRATIVE EXPENSES                     4,011               8,281            24,896
                                                -----------         -----------       -----------

TOTAL GENERAL & ADMINISTRATIVE EXPENSES               4,011               8,281            24,896
                                                -----------         -----------       -----------

NET LOSS                                        $    (4,011)        $    (8,281)      $   (24,896)
                                                ===========         ===========       ===========

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

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
 OUTSTANDING                                      5,207,000           5,207,000
                                                ===========         ===========
</TABLE>
                                       8
<PAGE>
                             LUMMI DEVELOPMENT, INC.
                          (A Development Stage Company)
                     Statement of Stockholders' Equity From
             January 19, 1999 (inception) through December 31, 2001
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                      Deficit
                                                                                    Accumulated
                                                         Common      Additional       During
                                             Common       Stock       Paid-in       Development
                                             Shares      Amount       Capital          Stage         Total
                                             ------      ------       -------          -----         -----
<S>                                        <C>           <C>         <C>             <C>           <C>
Issued for cash on January 19, 1999         5,000,000     $ 500       $     0        $      0       $    500

Issued from sale of private placement
(Note #1) April 7,1 1999                      207,000        21        21,179               0         21,200

Net loss, January 19, 1999 (inception)
to December 31, 1999                                                                  (12,604)       (12,604)
                                           ---------     ------      --------       ---------       --------
BALANCE,  DECEMBER 31, 1999                 5,207,000       521        21,179         (12,604)         9,096
                                           =========     ======      ========       =========       ========
Net loss, January 1, 2000 to
December 31, 2000                                                                      (8,281)        (8,281)
                                           ---------     ------      --------       ---------       --------
BALANCE,  DECEMBER 31, 2000                 5,207,000       521        21,179         (20,885)           815
                                           =========     ======      ========       =========       ========
Net loss, January 1, 2001 to
December 31, 2001                                                                      (4,011)        (4,011)
                                           ---------     ------      --------       ---------       --------
BALANCE,  DECEMBER 31, 2001                 5,207,000     $ 521       $21,179        $(24,896)      $ (3,196)
                                           =========     ======      ========       =========       ========
</TABLE>
                                       9
<PAGE>
                             LUMMI DEVELOPMENT, INC.
                          (A Development Stage Company)
                            Statements of Cash Flows
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                       January 19, 1999
                                                        Year Ended       Year Ended      (inception)
                                                          Ended            Ended           through
                                                        December 31,     December 31,    December 31,
                                                           2001             2000            2001
                                                        -----------      -----------     -----------
<S>                                                     <C>              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                              $ (4,011)        $ (8,281)       $(24,896)
  Increase / (decrease) in accounts payable                 (705)             705               0
  Increase in loan payable                                 3,317                0           3,317
                                                        --------         --------        --------

        NET CASH (USED) BY OPERATING ACTIVITIES           (1,399)          (7,576)        (21,579)

CASH FLOWS FROM INVESTING ACTIVITIES

        NET CASH PROVIDED BY INVESTING ACTIVITIES              0                0               0

CASH FLOWS FROM FINANCING ACTIVITIES
  Common stock                                                 0                0             521
  Additional paid-in capital                                   0                0          21,179
                                                        --------         --------        --------

        NET CASH PROVIDED BY FINANCING ACTIVITIES              0                0          21,700
                                                        --------         --------        --------

NET (DECREASE) / INCREASE IN CASH                         (1,399)          (7,576)            121

CASH AT BEGINNING OF YEAR                                  1,520            9,096               0
                                                        --------         --------        --------

CASH AT END OF YEAR                                     $    121         $  1,520        $    121
                                                        ========         ========        ========
</TABLE>
                                       10
<PAGE>
                             LUMMI DEVELOPMENT, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                      For the Year Ended December 31, 2001


NOTE 1. HISTORY AND ORGANIZATION OF THE COMPANY

The  Company was  organized  January  19,  1999,  under the laws of the state of
Delaware,  as Lummi Development,  Inc. The Company has limited operations and in
accordance with SFAS #7, the  Company is considered a development stage company.
The Company is in the business of selling  marine safety kits and related marine
accessories.

On January 19, 1999,  the Company  issued  5,000,000  shares of its $ 0.0001 par
value common stock for cash of $ 1,000.00.

On April 7, 1999,  the  Company  completed  a public  offering  that was offered
without  registration  under the securities Act of 1933, as amended (The "Act"),
in reliance upon the exemption from  registration  afforded by sections 4(2) and
3(b) of Securities Act and Regulation D, Rule 504  promulgated  thereunder.  The
Company sold 207,000 shares of common stock at a price of $ 0.10 per share for a
total amount raised of $ 20,700.00.

NOTE 2. ACCOUNTING POLICIES AND PROCEDURES

A. BASIS OF ACCOUNTING

The Company  uses the accrual  method of  accounting.  The Company has adopted a
fiscal year of December 31.

B. BASIC LOSS PER SHARE

In February  1997,  the FASB issued SFAS No. 128,  "Earnings  Per Share",  which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities  with  publicly  held common  stock.  SFAS No. 128
supersedes the provisions of APB No. 15, and requires the  presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective January 19, 1999 (inception).

Basic net loss per share  amounts is computed by dividing  the net income by the
weighted average number of common shares outstanding. Diluted earnings per share
are the same as basic  earnings  per share due to the lack of dilutive  items in
the Company.

C. CASH EQUIVALENTS

The Company  considers  all highly liquid  investments  with a maturity of three
months or less when purchased to be cash equivalents.

                                       11
<PAGE>
                             LUMMI DEVELOPMENT, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                      For the Year Ended December 31, 2001


NOTE 2. ACCOUNTING POLICIES AND PROCEDURES (CONTINUED)

D. USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.

E. INCOME TAXES

The Company  accounts  for income  taxes using the asset and  liability  method.
Under the asset and liability  method,  deferred income taxes are recognized for
the tax consequences of "temporary  differences" by applying  enacted  statutory
tax rates  applicable  to future  years to  differences  between  the  financial
statement carrying amounts and the tax bases of existing assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management,  it is more likely than not that some portion or all of the deferred
tax assets will not be realized.

NOTE 3. WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of
common stock or preferred stock.

NOTE 4. GOING CONCERN

The Company's  financial  statements are prepared  using the generally  accepted
accounting  principles  applicable to a going concern,  which  contemplates  the
realization  of assets and  liquidation  of  liabilities in the normal course of
business.  Without  realization of additional  capital, it would be unlikely for
the company to  continue as a going  concern.  It is  management's  plan to seek
additional   capital  through  the  sale  of  its  securities   through  private
placements.

NOTE 5. RELATED PARTY TRANSACTION

The Company neither owns, nor leases any real or personal  property.  A director
provides warehouse and office services without charge. Such costs are immaterial
to the financial statements and,  accordingly,  have not been reflected therein.
The  officers  and  directors  of the  Company are  involved  in other  business
activities  and  may,  in  the  future,   become   involved  in  other  business
opportunities. If a specific business opportunity become available, such persons
may face a conflict in  selecting  between the Company and their other  business
interests.  The  Company  has not  formulated  a policy for  resolution  of such
conflicts.

                                       12
<PAGE>
                             LUMMI DEVELOPMENT, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                      For the Year Ended December 31, 2001


NOTE 6. INCOME TAXES

                                         December 31, 2001     December 31, 2000
                                         -----------------     -----------------
     Deferred tax assets:
     Net operating loss carryforwards        $ 3,734                $ 3,133
                                             -------                -------
     Other                                         0                      0

     Valuation allowance                      (3,734)                (3,133)
                                             -------                -------

     Net deferred tax assets                 $     0                $     0
                                             =======                =======

Realization of deferred tax assets is dependent upon  sufficient  future taxable
income during the period that deductible temporary differences and carryforwards
are expected to be available to reduce  taxable  income.  As the  achievement of
required  future taxable income is uncertain,  the Company  recorded a valuation
allowance.

NOTE 7. SCHEDULE OF NET OPERATING LOSSES

     1999 Net Operating Loss                 $(12,604)
     2000 Net Operating Loss                   (8,281)
     2001 Net Operating Loss                   (4,011)
                                             --------
     Net Operating Loss                      $(24,896)
                                             ========

As of December 31, 2001,  the Company has net operating  loss  carryforwards  of
approximately  $ 24,896,  which will  expire 20 years from the date the loss was
incurred.

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

The Company's previous auditor Barry L. Friedman,  died on January 27, 2001. The
Company has hired Armando Ibarra, CPA to be the Company's new auditor.

                                       13
<PAGE>
                                    PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
        WITH SECTION 16(a) OF THE EXCHANGE ACT.

     A.   The Director and Officer of the Company, whose term will expire one
          year from his election, or at such a time as his successor shall be
          elected and qualified is as follows:

Name and Address                     Position                       Date Elected
----------------                     --------                       ------------
Gary Stannell                    President, Secretary,                 9/25/00
5 Husband Place                  Treasurer, Director
Coldstream, BC Canada

Resume of the Director and Officer of the Company are:

Gary Stannell, has been president and a director of the Company since September
25, 2000. Since 1995, Mr. Stannell has been President and CEO of Stannell
Petroleum Ltd. Between 1993 and 1995, Autogas Propane Ltd employed Mr. Stannell.
And was in charge of merchandising and supply of products for the Province of
British Columbia, Canada

ITEM 10. EXECUTIVE COMPENSATION

The Officer of the Company has received no compensation, including no bonus or
incentive plans - stock, cash, or otherwise. The Company plans to begin
compensating the officer only at such time the Company is generating sufficient
revenues. Presently, the Company has not established any dates or other
requirements for the officer to begin receiving compensation. If, and when, the
time is deemed appropriate for the officer to receive compensation, the matter
will be brought before the Board of Directors to vote.

COMPENSATION OF DIRECTORS

During the most recently completed financial year ended December 31, 2001, there
was no compensation paid, by the Company to its director for services as a
director. There are no standard arrangements for any such compensation to be
paid other than reimbursement for expenses incurred in connection with their
services as director, although the Company from time to time may grant options
to acquire Common Shares for directors. As at the date hereof the Company has no
outstanding options to the Director that has been granted for his services.

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<PAGE>
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
         RELATED STOCKHOLDER MATTERS.

The following table sets forth certain information concerning the Common Stock
ownership as of December 31, 2001, of each officer, director and who is known to
the Company as management or to be the beneficial owner of more than five
percent of the Company's Common Stock. As of December 31, 2001, there were
5,207,000 common shares outstanding.

Name and address of           Amount and Nature of
 Beneficial Owner               Beneficial Owner               Percent Ownership
 ----------------               ----------------               -----------------
Gary Stannell                      5,000,000                           96%
5 Husband Place
Coldstream, BC Canada

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

On January 19, 1999, the Company issued 5,000,000 common shares to Mr. Jack
Upton, a former officer and director of the Company, in consideration for $1,000
or $0.0002 per share. Mr. Upton resigned his position as officer and director of
the Company on September 25, 2000. On November 2, 2000, in a private
transaction, Mr. Upton sold 5,000,000 common shares to Mr. Stannell, a current
officer and director of the Company in consideration of $1,000 or $0.0002 per
share.

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

(a) Exhibits

     3(i)   Articles of Incorporation*
      (ii)  By-laws*
     23.    Consent of Armando Ibarra CPA

----------
* Incorporated by reference to filing 10SB12G filed February 5, 2001.

(b) Reports on Form 8-K

     None

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<PAGE>
                                   SIGNATURES

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

                                             LUMMI DEVELOPMENT INC,


                                             /s/ Gary Stannell
                                             ----------------------------
DATE: 4/2/02                                 Gary Stannell


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