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    Commission File No. 333-4066

[  ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

     For the transition period from           to           .

                       KAYENTA KREATIONS, INC.
            (Name of small business issuer in its charter)

                Nevada                                 87-0554463
     State or other jurisdiction of                    (I.R.S. Employer
     incorporation or organization                     Identification No.)

    311 South State Street, Suite 460, Salt Lake City, Utah 84111
         (Address of principal executive offices)  (zip code)

Issuer's telephone number, including area code:  (801) 364-9262

           1020 Belmont Avenue, Salt Lake City, Utah 84105
    (Former name or former address, if changed since last report.)

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

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

Check whether the Issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the Issuer 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 no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is contained in this form, and no disclosure will be contained,
to the best of the Issuer'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. (Not applicable)                  [   ]

The Issuer's revenues for its most recent fiscal year.     $   -0-

As of February 28, 2002, the aggregate market value of voting stock held by
non-affiliates was approximately $ 41,591  . (See Item 5 herein).

The number of shares outstanding of the Issuer's common stock at February 28,
2002: 1,316,292

<PAGE>

                                PART I

ITEM 1.   DESCRIPTION OF BUSINESS

     (A)  BUSINESS DEVELOPMENT.

     Kayenta Kreations, Inc. (the "Company") was incorporated under the laws
of the State of Nevada on December 26, 1995.  In connection with the
organization of the Company, the President and founders of the Company
contributed $8,000 cash to initially capitalize the Company in exchange for
800,000 shares of Common Stock.  The Company then registered a public offering
of its securities to raise funds from such offering with which to commence
business operations.  The Company filed with the Securities and Exchange
Commission a registration statement on Form SB-2, Commission File No. 333-
4066, which became effective October 21, 1996.  Pursuant thereto the Company
sold 218,900 shares of its common stock to the public at $.25 per share and
raised gross proceeds of $54,725.  The offering was completed in February,
1997.  The Company then used the net proceeds from this offering to provide
the working capital necessary to commence business operations.  However, the
Company did not generate any significant revenues from operations and is still
considered a development stage company.

     (B)  BUSINESS OF COMPANY.

     The Company was engaged in the business of producing and marketing
specialty children's coloring art books and art coloring pencils.  This
business was not successful and operations were eventually discontinued.  The
Company is not presently engaged in any significant business activities and
has no operations. Presently the Company's principal activity has been to
investigate potential acquisitions. However, the Company has not located any
suitable potential business acquisition and has no plans, commitments or
arrangements with respect to any potential business venture. There is no
assurance the Company could become involved with any business venture,
especially any business venture requiring significant capital.

EMPLOYEES

     The Company presently has no salaried employees, and does not presently
anticipate the need to hire employees.  The sole officer of the Company will
not be employed full time presently and will not receive a regular salary,
wage or other cash compensation for her time, unless and until the Company's
business operations develop to the point where a full time or other extensive
time commitment is required.

ITEM 2.   PROPERTIES

     The Company presently has no office facilities but for the time being
will use the office address of Ms. Brenda White, its President, in Salt Lake
City, Utah, on a rent free basis as its principal business address.
Management does not intend to seek other office arrangements

<PAGE>

immediately, but
will seek such arrangements at such time in the future as the Company's
business requires more extensive facilities, which is not anticipated in the
immediate future.

ITEM 3.   LEGAL PROCEEDINGS.

     The Company is not a party to any material pending legal proceedings
and, to the best of its knowledge, no action has been threatened by or against
the Company.

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

     No matter was submitted to a vote of security holders through the
solicitation of proxies or otherwise during the fourth quarter of the fiscal
year covered by this report.

                               PART II

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

     (A)  MARKET INFORMATION.

     The Company's public offering closed in February, 1997 and the Common
Stock of the Company was eligible for trading in the over-the-counter market
after that time.  The common stock is quoted under the symbol  "KKRI", but has
not been traded in the over-the-counter market except on a very limited and
sporadic basis. The following sets forth high and low bid price quotations for
each calendar quarter during the last two fiscal years that trading occurred
or quotations were available. Such quotations reflect inter-dealer prices,
without retail mark-up, mark-down or commission and may not represent actual
transactions.

     Quarter Ended                 High                Low
     March 31, 2000                2.00                .56
     June 30, 2000                 2.00                2.00
     September 30, 2000            2.00                2.00
     December 31, 2000              .63                 .50

     March 31, 2001                .35                 .03
     June 30, 2001                 .34                 .03
     September 30, 2001            .35                 .09
     December 31, 2001             .35                 .09

     (B)  HOLDERS.

     As of February 1, 2002, there were approximately 23 record holders of
the Company's Common Stock.

<PAGE>

     (C)  DIVIDENDS.

     The Company has not previously paid any cash dividends on common stock
and does not anticipate or contemplate paying dividends on common stock in the
foreseeable future.  It is the present intention of management to utilize all
available funds for the development of the Company's business.  The only
restrictions that limit the ability to pay dividends on common equity or that
are likely to do so in the future, are those restrictions imposed by law.
Under Nevada corporate law, no dividends or other distributions may be made
which would render the Company insolvent or reduce assets to less than the sum
of its liabilities plus the amount needed to satisfy any outstanding
liquidation preferences.

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

     The Company was incorporated on December 26, 1995.  The Company has not
yet generated any significant revenues from operations and is considered a
development stage company.

     The Company has experienced losses from its inception.  The Company was
engaged in the business of producing and marketing specialty children's
coloring art books and art coloring pencils.  This business was not successful
and operations were eventually discontinued.  The Company has no operating
capital or income producing assets. In light of these circumstances, the
ability of the Company to continue as a going concern is substantially in
doubt.  The financial statements do not include any adjustments that might
result from the outcome of this uncertainty. Management believes their plans
will provide the corporation with the ability to continue in existence.
Management plans to maintain its filings and curtail operations and activities
to keep it in existence. This may  require additional advances from
stockholders to pay accounting and legal fees associated with its filings.

ITEM 7.   FINANCIAL STATEMENTS.

     See attached Financial Statements and Schedules.

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

     There are not and have not been any disagreements between the Company
and their accountants on any matter of accounting principles or practices or
financial statement disclosure.

                               PART III

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

<PAGE>

     (A)  IDENTIFY DIRECTORS AND EXECUTIVE OFFICERS.

     The following table sets forth the sole director and executive officer
of the Company, her age, and all offices and positions with the Company.  A
director is elected for a period of one year and thereafter serves until his
or her successor is duly elected by the stockholders and qualifies.  Officers
and other employees serve at the will of the Board of Directors.

<TABLE>
<S>                      <C>  <C>              <C>
                              Term Served As   Positions
Name of Director         Age  Director/Officer With Company

Brenda White             43   Since February   President &
                              15, 2002         Secretary/Treasurer
</TABLE>

     Michelle Barlow resigned February 15, 2002, as the sole director and
executive officer of the Company, and appointed Brenda White to replace her.
Brenda White now serves as management of the Company.  A brief description of
her background and business experience is as follows:

     Brenda White serves as President, Secretary/Treasurer and Director of
the Company. She has been employed since 1995 as the secretary of Lynn Dixon,
a principal shareholder of the Company, and serves at his request.

     Ms. White holds no directorships in any other company subject to the
reporting requirements of the Securities Exchange Act of 1934.

     (B)  IDENTIFY SIGNIFICANT EMPLOYEES.

     None other than the person previously identified.

     (C)  FAMILY RELATIONSHIPS.

     None

     (D)  INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS.

     Except as described herein above, no present officer or director of the
Company; 1) has had any petition filed, within the past five years, in Federal
Bankruptcy or state insolvency proceedings on such person's behalf or on
behalf of any entity of which such person was an officer or general partner
within two years of filing; or 2) has been convicted in a criminal proceeding
within the past five years or is currently a named subject of a pending
criminal proceeding; or 3) has been the subject, within the past five years,
of any order, judgment, decree or finding (not subsequently reversed,
suspended or vacated) of any court or regulatory authority involving

<PAGE>

violation of securities or commodities laws, or barring, suspending, enjoining
or limiting any activity relating to securities, commodities or other business
practice.

COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

     The Issuer is not subject to the provisions of Section 16(a).

ITEM 10.  EXECUTIVE COMPENSATION.

     The sole officer/director is entitled to reimbursement of any out of
pocket expenses reasonably and actually incurred on behalf of the Company.
Presently, the officer only devotes a portion of her time to the affairs of
the Company.  She is not employed full time and does not receive a regular
salary, wage for her time, and will not unless and until the Company's
business operations develop to the point where a full time or other extensive
time commitment is required.  The Company presently has no formal employment
agreements or other arrangements or understandings with the officer regarding
the commitment of time or the payment of salaries or other compensation.
However, the officer is prepared to devote such time as may be necessary to
the development of the Company's business.  The amounts of compensation and
other terms of any full time employment arrangements with Ms. White would be
determined if and when such arrangements become necessary.

COMPENSATION OF DIRECTORS

     None

EMPLOYMENT CONTRACTS AND TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL
ARRANGEMENTS

     The Company has not entered into any contracts or arrangements with any
named executive officer which would provide such individual with a form of
compensation resulting from such individual's resignation, retirement or any
other termination of such executive officer's employment with the Company or
its subsidiary, or from a change-in-control of the Company or a change in the
named executive officer's responsibilities following a change-in-control.

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

     The following table sets forth certain information with respect to the
beneficial ownership of the Company's common stock with respect to each
director of the Company, each person known to the Company to be the beneficial
owner of more than five percent (5%) of said securities, and all directors and
executive officers of the Company as a group:

<PAGE>

<TABLE>
<S>                       <C>       <C>                  <C>
                          Title of  Amount and Nature of Percent
Name and Address           Class    Beneficial Ownership of Class

Brenda White               Common           -0- shares     0%
311 S. State, #460
Salt Lake City, UT 84111

Michelle Barlow            Common     250,000 shares      19%
1020 Belmont Ave.
Salt Lake City, UT 84105

Eslie Barlow               Common     342,250 shares      26%
1354 S. 1000 W.
Salt Lake City, UT 84104

Lynn Dixon                 Common     505,142 shares      38%
311 S. State, #460
Salt Lake City, UT 84111

All officers and
directors as a             Common        -0- shares       0%
group (1 person)
</TABLE>

     The foregoing amounts include all shares these persons are deemed to
beneficially own regardless of the form of ownership.

CHANGES IN CONTROL

     Michelle Barlow and Eslie Barlow have pledged all shares beneficially
owned by them, in connection with a $100,000 loan from Lynn Dixon, to secure a
promissory note dated May 3, 2001, due in one year. In the event of a default
in the obligation secured by the pledge, an execution upon the pledge could,
at a subsequent date, result in a change in control of the Company.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

     The Company has entered into certain transactions with officers,
directors or affiliates of the Company which include the following:

     In connection with the organization of the Company, its founding
shareholders paid an aggregate of $8,000 cash to purchase 800,000 shares of
Common Stock of the Company.  Upon incorporation, $5,000 was initially
contributed in exchange for 500,000 shares of Common Stock.  Subsequently in
March of 1996, an additional $3,000 was contributed in exchange for 300,000
shares of Common Stock.

<PAGE>

     On February 27, 2002, additional common stock was issued to Lynn Dixon;
100,000 shares in exchange for $10,000 cash, and 130,142 shares in
cancellation of indebtedness totaling $13,014.17 of principal and accrued
interest. Also, 67,250 shares were issued to an entity controlled by Eslie
Barlow in cancellation of indebtedness totaling $6,179.64 of principal and
accrued interest. This increased the total issued and outstanding common stock
to 1,316,292 shares.

     It is contemplated that the Company may enter into certain transactions
with officers, directors or affiliates of the Company which may involve
conflicts of interest in that they will not be arms' length transactions.
These transactions include the following:

     The Company presently has no office facilities but for the time being
will use as its business address the office address of Ms. Brenda White on a
rent free basis, until such time as the Company may require more extensive
facilities and the Company has the financial ability to rent commercial office
space.  There is presently no formal written agreement for the use of such
facilities, and no assurance that such facilities will be available to the
Company on such a basis for any specific length of time.

     The Company has no formal written employment agreement or other
contracts with its President, and there is no assurance that the services and
facilities to be provided by Ms. White will be available for any specific
length of time in the future.  Ms. White anticipates devoting only a portion
of her time to the affairs of the Company.  If and when the business
operations of the Company increase and a more extensive time commitment is
needed, Ms. White is prepared to devote more time to the Company, in the event
that becomes necessary.  The amounts of compensation and other terms of any
full time employment arrangements with Ms. White would be determined if and
when such arrangements become necessary.

CONFLICTS OF INTEREST

     In addition to the conflicts of interest that are inherent in the
foregoing transactions, conflicts of interest may also arise from the fact
that the President and director of the Company will not be employed full time
and will have other activities and business interests, to which she will also
devote time and attention.  Inasmuch as the President will not receive any
regular salary or wage from the Company, at least initially, these other
activities include other employment or business activities.  These other
activities could give rise to a conflict with respect to certain operations of
the Company, particularly with respect to the amount of time management
devotes to the Company and to these other activities.

     A director of the Company owes fiduciary duties to the Company which may
conflict with these other interests.  The Company has not entered into any non
compete, confidentiality or similar agreements with the director.  The
fiduciary duties that directors owe to a Company include the duty not to
withhold from the Company, or appropriate, any corporate opportunity which the
Company may be able to exploit, the duty not to use for their personal benefit
or the benefit

<PAGE>

of any other individual or entity any information not generally
known which they acquire through their association with the Company, and in
short, the duty to deal fairly with the Company.  The Company's current
director intends to submit to the Company any potential business she becomes
aware of which may constitute a corporate opportunity to the Company.  The
Company's policy is that all transactions between the Company and any
affiliates be on terms no less favorable to the Company than could be obtained
from unaffiliated parties.

INDEMNIFICATION

     The general corporation law of Nevada permits provisions in the
articles, by-laws or resolutions approved by shareholders which limit
liability of directors and officers for breach of fiduciary duty to certain
specified circumstances, namely, breaches of their duties of loyalty, acts or
omissions not in good faith or which involve intentional misconduct or knowing
violation of law, acts involving unlawful payment of dividends or unlawful
stock purchases or redemptions, or any transaction from which a director or
officer derives an improper personal benefit.  The Company's by-laws indemnify
its officers and directors to the full extent permitted by Nevada law.  The
by-laws with these exceptions eliminate any personal liability of an officer
or director to the Company or its shareholders for monetary damages for the
breach of fiduciary duty and therefore an officer or director cannot be held
liable for damages to the Company or its shareholders for gross negligence or
lack of due care in carrying out his or her fiduciary duties.  The Company's
Articles provide for indemnification to the full extent permitted under law
which includes all liability, damages and costs or expenses arising from or in
connection with service for, employment by, or other affiliation with the
Company to the maximum extent and under all circumstances permitted by law.
Nevada law permits indemnification if a director or officer acts in good faith
in a manner reasonably believed to be in, or not opposed to, the best
interests of the corporation.  A director or officer must be indemnified as to
any matter in which he or she successfully defends himself or herself.
Indemnification is prohibited as to any matter in which the director or
officer is adjudged liable to the corporation.  Insofar as indemnification for
liabilities arising under the Securities Act may be permitted to directors,
officers, and controlling persons of the Company pursuant to the foregoing
provisions or otherwise, the Company has been advised that in the opinion of
the Securities and Exchange Commission, such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable.

     Except as disclosed in this item, in notes to the financial statements
or elsewhere in this report, the Company is not aware of any indebtedness or
other transaction in which the amount involved exceeds $60,000 between the
Company and any officer, director, nominee for director, or 5% or greater
beneficial owner of the Company or an immediate family member of such person;
nor is the Company aware of any relationship in which a director or nominee
for director of the Company was also an officer, director, nominee for
director, greater than 10% equity owner, partner, or member of any firm or
other entity which received from or paid the Company, for property or
services, amounts exceeding 5% of the gross annual revenues or total assets of
the Company or such other firm or entity.

<PAGE>

                               PART IV

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

     (A)  EXHIBITS to this report are all documents previously filed which
are incorporated herein as exhibits to this report by reference to
registration statements and other reports previously filed by the Company
pursuant to the Securities Act of 1933 and the Securities Exchange Act of
1934.

     (B)  REPORTS ON FORM 8-K have not been filed during the last quarter of
the fiscal year ended December 31, 2001.

<PAGE>

                              SIGNATURES

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


KAYENTA KREATIONS, INC.



By:     /s/Brenda White                             Date:       2/28/02
     Brenda White, President and Secretary/Treasurer
     Chief Executive Officer and
     Chief Financial Officer


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



By:     /s/ Brenda White                            Date:        2/28/02
     Brenda White, President and Secretary/Treasurer
     Chief Executive Officer and
     Chief Financial Officer



<PAGE>


Supplemental Information to be Furnished With Reports Filed Pursuant to
Section 15(d) of the Exchange Act by Non Reporting Issuers

No annual report or proxy statement has been sent to security holders.

<PAGE>




















                      KAYENTA KREATIONS, INC.
                   (A Development  Stage Company)

                        FINANCIAL STATEMENTS

           FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

                                WITH

                   INDEPENDENT  AUDITOR'S REPORT







<PAGE>

                      KAYENTA KREATIONS, INC.
                   (A Development Stage Company)


                              CONTENTS


                                                            PAGE

  Independent Auditor's Report                              1

  Balance Sheets, December 31, 2001 and 2000                2

  Statements of Operations, for the years ended
       December 31, 2001 and 2000                           3

  Statement of Stockholders' Equity, from inception
       to December 31, 2001                                 4

  Statements of Cash Flows, for the years ended
       December 31, 2001 and 2000                           5

  Notes to Financial Statements                             6-7




  <PAGE>











  Independent Auditor's Report

  Board of Director
  KAYENTA KREATIONS,  INC.
  Salt Lake City, Utah

  I have audited the accompanying balance sheets of Kayenta Kreations,
  Inc. (a development stage company) as of December 31, 2001 and 2000 and
  the related statements of operations, stockholders' equity and cash
  flows for the years then ended and from inception (December 26, 1995) to
  December 31, 2001.  These financial statements are the responsibility of
  the Company's management.  My responsibility is to express an opinion on
  the financial statements based on my audits.

  I conducted my audits in accordance with auditing standards generally
  accepted in the United States of America.  Those  standards require that
  I plan and perform the audit to obtain reasonable assurance about
  whether the financial statements are free of material misstatement.  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.  I believe that my audits provide a
  reasonable basis for my opinion.

  In my opinion, the financial statements referred to above present
  fairly, in all material respects, the financial position of Kayenta
  Kreations, Inc. (a development stage company) as of December 31, 2001
  and 2000 and the results of its operations and its cash flows for the
  years then ended and from inception (December 26, 1995) to December 31,
  2001, in conformity with accounting principles generally accepted in the
  United States of America.

  The accompanying financial statements have been prepared assuming that
  the Company will continue as a going concern.  As shown in the financial
  statements, the Company is in the development stage and has incurred a
  net loss of $10,842 for 2001 and has incurred net losses since
  inception.  At December 31, 2001, the Company has only $98 in assets.
  These factors, and the others discussed in Note 5 raise substantial
  doubt about the Company's ability to continue as a going concern.  The
  financial statements do not include any adjustment relating to the
  recoverability and classification of recorded assets, or the amounts and
  classification of liabilities that might be necessary in the event the
  Company cannot continue in existence.




  /s/David T. Thomson, P.C.
  Salt Lake City, Utah
  January 30, 2002


  <PAGE>

                       KAYENTA KREATIONS, INC.
                    (A Development Stage Company)

                            BALANCE SHEETS

                                ASSETS

                                               December 31,       December 31,
                                                     2001               2000
                                               ____________       ____________


CURRENT ASSETS
     Cash in bank                                    $  98               $  0
     Supplies                                            0                 32
     Inventory                                           0                650
                                               ____________       ____________

          Total Current Assets                          98                682
                                               ____________       ____________

EQUIPMENT AND DISPLAYS
     Office equipment                                    0              4,040
     Displays                                            0              3,931
                                               ____________       ____________

                                                         0              7,971
     Less accumulated depreciation                       0             (5,119)
                                               ____________       ____________

                                                         0              2,852
                                               ____________       ____________

TOTAL ASSETS                                         $  98           $  3,534
                                               ============       ============


                 LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Bank overdraft                                  $  0            $    350
     Accounts payable and accrued expenses          2,102               1,176
     Stockholders' advances                        17,640              10,530
     State franchise tax payable                      100                 100
                                               ____________       ____________

          Total current Liabilities                19,842              12,156
                                               ____________       ____________

DEFERRED TAXES PAYABLE                                  0                   0
                                               ____________       ____________

STOCKHOLDERS' EQUITY (DEFICIT)
     Preferred stock; $.001 par value,
       5,000,000 shares authorized,
        no shares issued and outstanding                0                   0
     Common stock; $.001 par value,
       50,000,000 shares authorized,
        1,018,900 and 1,018,900 shares
       issued and outstanding respectively          1,019               1,019
     Capital in excess of par value                46,913              47,193
     Earnings (deficit) accumulated during
       the development stage                      (67,676)            (56,834)
                                               ____________       ____________

          Total Stockholders' Equity (Deficit)    (19,744)             (8,622)
                                               ____________       ____________

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $  98            $  3,534
                                               ============       ============


The accompanying notes are an integral part of these financial statements.
                                 2
<PAGE>

                       KAYENTA KREATIONS, INC.
                    (A Development Stage Company)

                       STATEMENTS OF OPERATIONS

                                   For the        For the        Cumulative
                                   Year Ended     Year Ended     During the
                                   December 31,   December 31,   Development
                                       2001           2000          Stage
                                   __________________________________________


SALES
     Sales - net                       $  0         $  377         $  2,814
     Less cost of Sales                   0           (284)          (1,518)
                                   __________________________________________

          Gross Margin                    0             93            1,296
                                   __________________________________________

SELLING, GENERAL AND ADMINISTRATIVE
     Accounting and legal             5,795          5,322           21,115
     Amortization                         0              0              602
     General and administrative       1,825          2,284           33,083
     Depreciation                     1,514          2,335            9,610
                                   __________________________________________

          Total Selling, General
          and Administration          9,134          9,941           64,410
                                   __________________________________________

NET INCOME FROM OPERATIONS           (9,134)        (9,848)         (63,114)

OTHER INCOME (EXPENSE)
     Loss on asset disposal            (163)        (2,547)          (2,710)
     Interest income                      0              0              900
     Interest expense                (1,545)          (751)          (2,354)
                                   __________________________________________

NET INCOME (LOSS) BEFORE
     INCOME TAXES                   (10,842)       (13,146)         (67,278)

Income tax (provision) benefit            0            132                0
                                   __________________________________________

NET INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE         (10,842)       (13,014)         (67,278)

Cumulative effect of accounting
change for organization costs             0              0             (398)
                                   __________________________________________

NET INCOME (LOSS)                  $(10,842)    $  (13,014)      $  (67,676)
                                   ==========================================

EARNINGS (LOSS) PER SHARE BEFORE
ACCOUNTING CHANGE                  $      0     $        0       $        0

CUMULATIVE EFFECT OF ACCOUNTING CHANGE    0              0                0
                                   __________________________________________

EARNINGS (LOSS) PER SHARE          $      0     $        0       $        0
                                   ==========================================


The accompanying notes are an integral part of these financial statements.
                                 3
<PAGE>

                       KAYENTA KREATIONS, INC.
                    (A Development Stage Company)

                  STATEMENT OF STOCKHOLDERS' EQUITY

                                                                  Earnings
                                                                  (Loss)
                                                                  Accumulated
                                                       Capital in During the
                                         Common Stock   Excess of Development
                                         Shares  Amount Par Value  Stage
                                        _____________________________________

BALANCE, December 26, 1995 (Inception)          0  $   0      $  0      $  0

Shares issued to initial stockholders
  for cash December 26, 1995
  at $.01 per share                       500,000    500     4,500         0

Net income(loss)from December 26, 1995
  (inception) to December 31, 1995              0      0         0        (2)
                                        _____________________________________

BALANCE, December 31, 1995                500,000    500     4,500        (2)

Additional shares issued to initial
  stockholders for cash March 6, 1996
   at $.01 per share                      300,000    300     2,700         0

Capital contributed by officer
      and shareholder                           0      0        20         0

Net income (loss) for the year ended
  December 31, 1996                             0      0         0      (365)
                                        _____________________________________

BALANCE, December  31, 1996               800,000    800     7,220      (367)

Shares issued pursuant to a sale of
     common to the public for cash
     February 1997 at $.25 per share      218,900    219    54,506         0

Direct costs of offering                        0      0   (14,533)        0

Net income (Loss) for the year ended
     December 31, 1997                          0      0         0   (21,705)
                                        _____________________________________

BALANCE, December  31, 1997             1,018,900  1,019    47,193   (22,072)

Net income (Loss) for the year ended
     December 31, 1998                          0      0         0   (10,755)
                                        _____________________________________

BALANCE, December 31, 1998              1,018,900  1,019    47,193   (32,827)

Net income (Loss) for the year ended
     December 31, 1999                          0      0         0   (10,993)
                                        _____________________________________

BALANCE, December 31, 1999              1,018,900  1,019    47,193   (43,820)

Net income (Loss) for the year ended
     December 31, 2000                          0      0         0   (13,014)
                                        _____________________________________

BALANCE, December 31, 2000              1,018,900  1,019    47,193   (56,834)

Capital distributed on assets
     exchanged for debt                         0      0      (280)

Net income (Loss) for the year ended
     December 31, 2001                          0      0         0   (10,842)
                                        _____________________________________

BALANCE, December 31, 2001              1,018,900 $1,019  $ 46,913  $(67,676)
                                        =====================================


The accompanying notes are an integral part of these financial statements.
                                 4
<PAGE>

                     KAYENTA KREATIONS, INC.
                  (A Development Stage Company)

                     STATEMENTS OF CASH FLOWS

                                        For the      For the      Cumulative
                                        Year Ended   Year Ended   During the
                                        December 31, December 31, Development
                                            2001         2000        Stage
                                        _____________________________________

CASH FLOWS FROM OPERATING ACTIVITIES
     Cash from sales                        $  0      $  377      $  2,814
     Cash paid for organization costs          0           0        (1,000)
     Cash from interest                        0           0           900
     Cash paid for interest                    0         (22)          (80)
     Cash paid for supplies and employee
      services                            (7,712)     (7,226)      (56,115)
                                        _____________________________________

          Net Cash (Used) by Operating
           Activities                     (7,712)     (6,871)      (53,481)
                                        _____________________________________

CASH FLOWS FROM INVESTING ACTIVITIES
     Disposal(acquisition) of
      equipment - net                          0        (586)      (13,323)
                                        _____________________________________

          Net cash(Used) by Investing
           Activities                          0        (586)      (13,323)
                                        _____________________________________

CASH FLOWS FROM FINANCING ACTIVITIES
     Sale of common stock                      0           0        62,725
     Direct offering costs                     0           0       (14,533)
     Contributed capital and stockholders'
      advances                             8,160       7,230        18,710
                                        _____________________________________

          Net Cash Provided (Used) By
           Financing Activities            8,160       7,230        66,902
                                        _____________________________________

NET INCREASE (DECREASE) IN CASH              448        (227)           98

CASH - BEGINNING OF PERIOD                  (350)       (123)            0
                                        _____________________________________

CASH - END OF PERIOD                     $    98   $    (350)    $      98
                                        =====================================

RECONCILIATION OF NET INCOME TO NET CASH
  PROVIDED (USED) BY OPERATING ACTIVITIES

NET INCOME (LOSS)                        $(10,842) $ (13,014)    $ (67,676)
                                        _____________________________________

Adjustments to reconcile net income(loss)
 to net cash provided(used) by operating
 activities
          Amortization of organization costs    0          0           602
          Cumulative effect of accounting
           change                               0          0           398
          Depreciation                      1,514      2,335         9,610
          Assets disposed or exchanged for
           debt - net                           8      2,547         2,383
          Deferred taxes                        0       (132)            0
          Change in assets and liabilities
               Organization costs               0         0         (1,000)
               Accounts receivable              0        28              0
               Prepaid expenses                 0       255              0
               Supplies                        32       (32)             0
               Inventory                      650       315              0
               Accounts payable               926       827          2,102
               Franchise taxes payable          0         0            100
                                        _____________________________________

                    Total Adjustments       3,130     6,143         14,195
                                        _____________________________________

NET CASH PROVIDED (USED) BY OPERATING
 ACTIVITIES                              $ (7,712) $ (6,871)     $ (53,481)
                                        =====================================

The accompanying notes are an integral part of these financial statements.
                                 5
<PAGE>



                      KAYENTA KREATIONS, INC.
                   (A Development Stage Company)

                   NOTES TO FINANCIAL STATEMENTS

  NOTE   1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       Organization  -  The Company was organized under the laws of the
       State of Nevada on December 26, 1995, and has elected a fiscal
       year end of December 31st.  The Company was formed to engage in
       the business of producing and marketing a children's coloring art
       book depicting various aspects of life in the Southwestern and
       Western United States. On December 30, 2001, the directors and
       shareholders of the Company approved to discontinue all existing
       business operations and dispose of its remaining assets (see Note
       3). The Company will now begin to look for a business opportunity,
       merger or acquisition without regard to any specific industry or
       line of business.  Prior to this action, the Company was
       considered a development stage Company as defined in SFAS No 7.
       The Company, has at the present time, not paid any dividends and
       any dividends that may be paid in the future will depend upon the
       financial requirement of the Company and other relevant factors.

       Net income per Share  -  The computation of net income (loss) per
       share of common stock is based on the weighted average number of
       shares outstanding during the period presented.

       Organization Costs  -  The Company was amortizing its organization
       costs, which reflected amounts expended to organize the Company,
       over sixty (60) months using the straight-line method.  In 1998,
       the Accounting Standards Executive Committee (AcSEC) of the
       American Institute of Certified Public Accountants issued
       Statement of Position (SOP) 98-5, "Reporting on the Costs of
       Start-Up Activities." The SOP requires costs of start-up
       activities and organization costs to be expensed as incurred.
       During 1999, the Company adopted the SOP and recognized a charge
       for the cumulative effect of accounting change of  $398.

       Income Taxes  -  Due to losses at December 31, 2001 and 2000 no
       provision for income taxes has been made.  There are deferred
       income taxes resulting from income and expense items being
       reported for financial accounting and tax reporting purposes in
       different periods.  Those differences arise from the recording of
       depreciation for financial statement purposes in a different
       manner as compared to depreciation recorded for tax purposes.

       Cash and Cash Equivalents  -  For purposes of the statement of
       cash flows, the Company considers all highly liquid debt
       instruments purchased with a maturity of three months or less to
       be cash equivalents.  At December 31, 2001, the Company did not
       have non-cash investing activities but it did have non-cash
       financing activities thatare explained in Note 3.  During 2000 the
       Company did not have non-cash investing and financing activities.

       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.

       Inventory  -  Inventories prior to disposition were stated at the
       lower of cost, determined by the First-in, First-out method, or
       market. Cost includes materials and conversion costs.



                                 6
<PAGE>
                      KAYENTA KREATIONS, INC.
                   (A Development Stage Company)

                   NOTES TO FINANCIAL STATEMENTS

  NOTE   1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

       Equipment and displays  -  Equipment and displays prior to
       disposition were recorded at cost. The Company used the straight
       line method of computing depreciation for financial reporting
       purposes and generally uses accelerated methods for income tax
       purposes. The estimated lives of the equipment and displays were 5
       to 7 years.

  NOTE   2  -  COMMON STOCK TRANSACTIONS

       The Company was formed through the issuance of 800,000 shares of
       common stock for $8,000.

       During February 1997, the Company completed an offering of stock
       to the public at a price of $.25 per share. The Company sold
       218,900 shares for a total of $54,725. The direct costs of the
       offering were $14,533.

  NOTE   3  -  RELATED PARTY TRANSACTIONS

       The Company is using the home of its President as its office on a
       rent free basis.  The rent is of nominal value.  As of December
       31, 2001 and 2000 no compensation has been paid or accrued to any
       officers or directors of the Corporation.

       Certain stockholders of the Company have advanced funds on a
       short-term basis.  The advances carry interest at 10% per annum
       and are unsecured.  The advances and interest are to be repaid as
       soon as possible by the Company.  The total amount advanced at
       December 31, 2001 is $17,640.  Subsequent to December 31, 2001, an
       additional $1,000 was advanced to the Company by a stockholder.

       On December 30, 2001, upon approval by directors and shareholders,
       the Company discontinued all existing business operations and sold
       its remaining assets, having a net book value of $1,499 to an
       officer and stockholder in exchange for cancellation of a loan and
       accrued interest owed to the officer and stockholder in the total
       amount of $1,219.  The assets were assigned, sold and transferred
       to the officer in satisfaction of the debt.  The difference
       between the net book value of the assets and the amount of the
       debt was $280 and has been recorded as a capital distribution in
       the financial statements.

  NOTE   4  -  INCOME TAXES

       The income tax provision consists of the following:

    Current income taxes payable         $      -
    Deferred tax liability (benefit)            -

                                         $      -

       Prior to the disposition of fixed assets the income tax provision
       differed from the expense that would result form applying federal
       statutory tax rates to income before income taxes because of
       differences of depreciation expense between book and tax.

                                 7
<PAGE>

                      KAYENTA KREATIONS, INC.
                   (A Development Stage Company)

                   NOTES TO FINANCIAL STATEMENTS

  NOTE   4  -  INCOME TAXES - CONTINUED

       At December 31, 2001 and 2000 the Company had net federal
       operating losses (NOL) of $64,934 and $55,291 respectively which
       can be carried forward to offset operating income. The NOL will
       expire as shown below. Valuation allowances of $11,234 and $8,436
       respectively, have been established for deferred tax assets.  The
       change in the NOL allowances for 2001 and 2000 was $2,798 and
       $1,820. The net operating losses expire as follows:

                Year of
               Expiration         Amount
                    2010          $      2
                    2011          $    365
                    2012          $ 21,836
                    2018          $ 11,556
                    2019          $ 10,349
                    2020          $ 11,183
                    2021          $  9,643

  NOTE   5  -  GOING CONCERN

       The company has experienced losses of $10,842 and $13,014 in 2001
       and 2000 and has experienced losses from its inception.  The
       Company has limited operating capital and no income producing
       assets and again sustained losses during its development stage. In
       light of the above circumstances, the ability of the Company to
       continue as a going concern is substantially in doubt.  The
       financial statements do not include any adjustments that might
       result from the outcome of this uncertainty.

       Management believes their plans will provide the corporation with
       the ability to continue in existence.  Management plans to
       maintain its filings and corporate good standing and existence but
       has ceased operations. This may require additional advances from
       stockholders to pay accounting and legal fees associated with its
       filings.  Management believes it has resources currently available
       to maintain the entity as a going concern.

  NOTE   6  -  ADVERTISING

       The Company expenses advertising costs as they are incurred.
       There were no amounts paid for advertising for the years ended
       December 31, 2001 and 2000.










                                 8
  <PAGE>