<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                   FORM 10KSB

[X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT  OF  1934
        For  the  fiscal  year  ended  December  31,  2001
                                    -------------------

[   ]   TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
        SECURITIES  EXCHANGE  ACT  OF  1934
        For  the  transition  period  from  _________  to  ____________

Commission  File  No.  000-32011
                       ---------

                              BALSAM VENTURES, INC.
                              ---------------------
              (Exact name of Registrant as specified in its charter)

          NEVADA                                   52-2219056
----------------                                   ----------
(State  or  other  jurisdiction  of                (I.R.S.  Employer
incorporation  or  organization)                   Identification  Number)

     SUITE  12,  5880  HAMPTON  PLACE
VANCOUVER,  BRITISH  COLUMBIA,  CANADA             V6T  2E9
--------------------------------------             --------
(Address  of  principal executive offices)         (Zip Code)

Registrant's telephone number, including area code: (604)  222-2657
                                                    --------------

Securities  registered  pursuant  to  Section  12(b)  of  the  Act:  NONE

Securities  registered  pursuant to Section 12 (g) of the Act: COMMON STOCK, PAR
VALUE  $0.001  PER  SHARE

Check  whether  the  issuer  (l)  has  filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the past 12 months (or for such
shorter  period  that the registrant was required to file such reports), and (2)
has  been  subject to such filing requirements for the past 90 days. [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.  [   ]

Revenues  for  2001  were  NIL.

State the aggregate market value of the voting and non-voting common equity held
by  non-affiliates computed by reference to the price at which the common equity
was  sold,  or  the  average  bid and asked price of such common equity, as of a
specified  date  within  the  past 60 days. (See definition of affiliate in Rule
12b-2 of the Exchange Act.). Our common stock is quoted at the present time.  At
March  25,  2002,  our  stock's  closing  price was $1.00 per share. This price,
however,  is  an  inter-dealer  price  without  retail  mark-up,  mark-down  or
commission  and may not represent an actual transaction. Based on this estimated
closing  price,  the  aggregate  market  value  at March 25, 2002 is $5,100,000.

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.  The number of shares of the issuer's
Common  Stock  outstanding  as  of  March  25,  2002  was  10,100,000.

Transitional  Small Business Disclosure Format (check one):  Yes [   ]  No [ X ]

                                       1


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                                     PART I

Certain  statements  contained  in  this Form 10-KSB constitute "forward-looking
statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended  (the  "Securities  Act"),  and  Section  21E of the Exchange Act. These
statements,  identified  by  words  such  as  "plan",  "anticipate,"  "believe,"
"estimate," "should," "expect" and similar expressions, include our expectations
and  objectives  regarding  our future financial position, operating results and
business strategy. These statements reflect the current views of management with
respect  to  future  events  and  are  subject to risks, uncertainties and other
factors  that  may  cause  our  actual  results, performance or achievements, or
industry  results,  to  be  materially  different  from  those  described in the
forward-looking statements. Such risks and uncertainties include those set forth
under  the  captions  "Description  of  Business",  "Management's Discussion and
Analysis  or  Plan  of  Operation"  and elsewhere in this Form 10-KSB. We do not
intend  to  update  the forward-looking information to reflect actual results or
changes  in  the  factors  affecting  such  forward-looking  information.

Item  1.  Description  of  Business

Our  business  plan  is  to  develop  and  market a free immigration information
service  on the Internet from our "www.usacitizenship.net" web site.

We have designed our web site to
provide  information  on  the  process  of immigrating to the United States from
foreign  countries.  Our  target  users  are persons who are citizens of foreign
countries  seeking  to work in or immigrate to the United States.  Our objective
is  to  become  a leading web site for information on the process of immigrating
into  the  United  States.

We  acquired  our "www.usacitizenship.net" domain name through the domain name
registration process in October  1999  at  a  cost  of  $70.

We  have  completed  the  development  of  our  web site and our web site is now
operational.  We  have  yet to achieve any sales of advertising on our web site.
Our  business  plan  is  to solicit advertisers whose target market includes the
users  of our web site in order to generate revenues.  Accordingly, our business
operations  are in a start-up phase and we have not earned any revenues to date.

Development  of  the  "usacitizenship.net"  Web  Site

We  have  developed  a free web site at our "www.usacitizenship.net" domain that
provides a reliable source of information on immigration into the United States.
Our  business  plan  is  to  draw  users to our web site so that we can sell and
generate revenues from the sale of web site advertisements.  We believe that the
an Internet web site which offers free information on the process of immigrating
into  the  United States would attract substantial usage.  We believe that if we
are successful in attracting people to our web site, we will be able to generate
revenues from advertisers who are interested in the demographics of our web site
users

                                       2
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Features  of  the  Web  Site

We  have  designed  our  web site to be an exciting, interactive and easy to use
information  source  on  how  to  immigrate  into  the  United  States.  We have
incorporated  the  following  features  into our Web site in order to accomplish
this  objective:

(1)     We  have  included  information  which  is  current  and relevant on the
process  of  immigrating  to  the  United  States;

(2)     We  have  presented  this immigration information in a clear and easy to
understand  format;

(3)     We  have  included links to the necessary forms required to be submitted
during  the  process  of  immigration;

(4)     We  have  listed  addresses  and  contact  information  for national and
overseas  United  States  Immigration  and  Naturalization  Service's  offices;

(5)     We  have  provided  links  to  names, address and contact information of
legal  counsel  who  specialize  in  immigration  into  the  United  States;

We plan to expand our web site to incorporate the following additional features,
subject  to  availability  of  funding:

(1)     We  plan to include immigration information in four principal languages,
in  addition  to  English:  Chinese,  Hindi,  French  and  Japanese;

(2)     We  plan  to  include an on-line five-stage seminar on how to immigrate;

(3)     We  will provide a list of links to organizations that can assist in the
process  of  immigration.

We  anticipate  we  will  not  add  these  additional features until we commence
earning  revenues  from  advertising  sales.

We  have  designed  the  web  site  in  order  to  allow  the  easy  addition or
modification  of  content  and  advertisements  in order to reduce our long term
operating  cots.

Advertising  Revenues

We  plan  to sell advertising space on the web site in the form of pay-per-click
advertising  on  banners,  buttons  and  links.  Pay-per-click  advertising  is
advertising  in  which an advertiser pays an advertising fee based on the number
of  time  visitors  click on the advertiser's advertisement on our web site.  We
plan  to  sell pay-per-click advertising in pre-paid lots based on the number of
clicks.  The  size  of the pre-paid lots will range from 500 clicks to 20,000 or
more  clicks.  We  plan  to  sell  in  lots  in  order  to  attract only serious


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advertisers.   This  advertising  would be pre-paid as advertisers would pay for
advertising  prior  to  an  advertisement  being placed on our web site.  If the
number  of  clicks  on an advertisement were to be less than the total number of
clicks  purchased,  there  would  be  no  reimbursement  to  the  advertiser.

We  have  designed our web site so that it can have as many as 30 advertisers at
one  time.   However,  we  will ensure that any one page on our Web site will be
limited  to  two  advertisers  in  order  to  ensure  that advertisers and their
products  get  the proper exposure.  The price charged for each button or banner
advertisement will vary based on the number of clicks bought and the positioning
of  the  button or banner on the site.  The premium position on our Web site and
the  most  expensive  for  advertisements  will  be  our  home  page.

For companies that are not comfortable with the pay-per-click method, we plan to
also  offer  advertising  based on a weekly flat rate fee.  For advertising on a
flat  rate  fee,  the  cost of each button or banner will also vary based on the
positioning  of  the  advertisement  within  the  web  site.

Subject  to  available  funding,  we  plan  to  retain the services of a secured
counter  and  tracking company that will provide independent verification on the
number  of click-throughs that occur.  This independent verification will assist
in  marketing  our  web  site  to  advertisers.

Marketing

Our  objective  will be to commence marketing of the web site upon completion of
its  development.  This  marketing  strategy is subject to our having sufficient
funding  to  carry  out  our  plan  which should include the following elements:

(1)     A banner advertising program whereby we would pay for advertising of the
web  site  on  other  Internet  web  sites  where we feel exposure would help to
increase  traffic  on  our  web  site.

(2)     An  e-mail  program  whereby  advertisements  for  our web site would be
delivered  to  potential  users  and  potential  advertisers.

(3)     Strategic  listing of our web site with major search engines in order to
increase  the  visibility  of our web site when users enter applicable keywords,
such  as  "immigration", with major search engines.  We believe that many of the
people  looking  for  information  concerning immigration into the United States
will  enter keywords such as "immigration", "USA" and "United States" with major
search  engines  in  order to find relevant web sites.  Our objective will be to
ensure  that  our  site  is  frequently cited by major search engines when these
keywords  are  searched.

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(4)     Reciprocal click-through agreements with complementary web sites who are
prepared  to  allow  us  to  place  links  to our web site on their web sites in
consideration  for  us permitting a reciprocal link to their web site on our web
site.

(5)     We  plan  to  make contact with many of the immigrant communities across
the  United  States  to promote our web site and also establish contacts for the
web  site.  Many  of  those  who  want to immigrate have relatives in the United
States  and  look  to  those  relatives  for assistance.  We may use traditional
advertising  media,  such  as newspaper advertisements and flyers, to reach this
market.  We  would  target  our  advertising  through  advertising  in community
newspapers  and  flyers  to  neighborhoods  with  high  populations of immigrant
communities.

The  exact  nature  of  our  marketing  plan will depend on a number of factors,
including the availability of funds to implement our marketing plan and Internet
marketing  conditions  and  practices.  We  may  pursue  different  marketing
strategies  from  the  marketing  strategies  listed  above.

Operations

We  have  commenced operations of our web site on the Internet.  Our web site is
hosted  by  an Internet service provider.   We operate our web site and computer
server  using  commercially  available  computer software programs and operating
systems.  Our  web  site  operations are administered by an independent computer
consultant  on  a  contract  basis.

For  more  information  on our plan of operations, see section entitled "Plan of
Operation".

Employees  and  Consultants

We  have  no  full-time employees and one (1) part-time employee.  Our part-time
employee  is  Mr.  Robert S. Smith, our President, Secretary and Treasurer.  For
the  twelve  months  after  December  31,  2001,  we  intend  that our part-time
employment  positions will be limited to the current officers of the Company. We
intend  to  conduct our business largely through agreements with consultants and
unrelated  third parties. We intend to contract with third party consultants for
the  continued  operating,  development  and  marketing  of  our  website.

Competition

We  will  compete  with  others,  including:

               (A)  at least eight (8) web sites which are currently providing
                    information on the process of immigrating into the United
                    States, including:

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      (1) U.S.  Immigration and Naturalization  Office  -  www.ins.usdoj.gov
      (2) Canada Small Business Service Center  -  www.sb.gov.bc.ca/smallbus
      (3) www.visalaw.com
      (4) www.burnslaw.com
      (5) www.immigrationquide.com
      (6) www.sirtech.com
      (7) www.4immigration.com
      (8) www.citizenshipvideo.com

     (B)  Law firms and immigration specialists who provide information on
          immigration to the United States, sometimes over the Internet on their
          own web sites.

The  presence  of  established competitors could adversely affect our ability to
successfully  implement  our  business plan and sell advertising.  If we are not
successful  in  implementing  our  business  plan,  then  our business may fail.

We  plan  to  differentiate  our  web  sites  from  the competition by including
information  which is not only accurate and up-to-date but which is presented in
an  easy  to use and understand format.  We also believe we will be the first to
target advertisers who are seeking to market products and services to people who
are  attempting  to  immigrate  to  the  United  States.   In  order  to sell to
advertisers,  we  may  offer  special  rates  that  are  below  our  cost.

We  have  limited  financial,  marketing, technical and other resources that are
necessary  to  implement  our  business plan.  Many of our current and potential
competitors have significantly greater financial, marketing, technical and other
resources  than  we  do.  Our  competitors  will  most  likely be able to devote
greater resources to the development, promotion and sale of their web sites that
we can. In addition, our competitors may be able to offer the information we are
planning  to  offer,  thereby  reducing  our  ability  to  earn  revenue.

Subsidiaries

We  do  not  have  any  subsidiaries.

Patents  and  Trademarks

We do not own, either legally or beneficially, any patent or trademark. However,
we  have  registered  the  Internet  domain  name  .

Research  and  Development  Expenditures

Since  our  inception,  we  have incurred $8,675 in development costs associated
with  our  software  and  associated  web  site.

                                       6
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Item  2.  Description  of  Property

We  have no real estate property holdings and at this time we have no agreements
to  acquire  any  properties.  We  do  not  lease  any  real  property.

Item  3.  Legal  Proceedings

Balsam is not a party to any material legal proceedings and to our knowledge, no
such  proceedings  are  threatened  or  contemplated.

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

No  matters  were submitted to our security holders for a vote during the fourth
quarter  of  our  fiscal  year  ending  December  31,  2001.


                               Part  II

Item  5.  Market for Registrant's Common Equity and Related Stockholders Matters

Market  Price

Prior  to  October  2001,  there was no trading market for our common stock.  We
obtained  a  trading  symbol  of  "BLSV"  and  began  trading  on  the  NASD
Over-the-Counter  Bulletin  Board in October 2001. Although we have a listing on
the  Bulletin Board, there is no assurance that an active, liquid market for our
common  stock  will  develop  or  that  a  trading  market  will  continue.

Our  common  stock  is quoted on the NASD Over-the-Counter Bulletin Board at the
present time.  At March 25, 2002, our stock's closing price was $1.00 per share.
This  price, however, is an inter-dealer price without retail mark-up, mark-down
or  commission and may not represent an actual transaction. The high and the low
trades  for  our  shares  for  each  quarter  of  actual  trading  were:

                                        HIGH           LOW

                                        ----           ---

2001*

Fourth  Quarter                         $0.40          $0.20

2002*

First  Quarter                         $1.37          $0.40
--------------------------------------------------------------------------------
*  The  prices  are  all  "closing"  prices  and  appear as approximate figures.

                                       7
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The  Securities and Exchange Commission has adopted a Rule that defines a "penny
stock,"  for  purposes  relevant to us, as any equity security that has a market
price  of less than $5.00 per share or with an exercise price of less than $5.00
per  share,  subject  to  certain  exceptions.  Our  common  stock  is presently
considered a "penny stock" and is subject to such market rules.  The penny stock
rules  require  a  broker-dealer,  prior  to  a transaction in a penny stock, to
deliver  a  standardized  risk  disclosure  document prepared by the Commission,
that:  (a)  contains a description of the nature and level of risk in the market
for  penny stocks in both public offerings and secondary trading; (b) contains a
description of the broker's or dealer's duties to the customer and of the rights
and  remedies  available  to  the  customer  with respect to a violation to such
duties  or  other requirements of Securities' laws; (c) contains a brief, clear,
narrative description of a dealer market, including bid and ask prices for penny
stocks  and  the  significance of the spread between the bid and ask price;  (d)
contains a toll-free telephone number for inquiries on disciplinary actions; (e)
defines  significant  terms  in  the  disclosure  document  or in the conduct of
trading  in penny stocks; and (f) contains such other information and is in such
form,  including  language,  type,  size  and  format,  as  the Commission shall
require  by  rule  or regulation.  The broker-dealer also must provide, prior to
effecting any transaction in a penny stock, the customer with: (a) bid and offer
quotations  for  the  penny stock; (b) the compensation of the broker-dealer and
its  salesperson  in the transaction; (c) the number of shares to which such bid
and  ask prices apply, or other comparable information relating to the depth and
liquidity  of  the  market  for such stock; and (d) a monthly account statements
showing the market value of each penny stock held in the customer's  account. In
addition,  the  penny stock rules require that prior to a transaction in a penny
stock  not  otherwise  exempt  from  those  rules; the broker-dealer must make a
special  written determination that the penny stock is a suitable investment for
the  purchaser and receive the purchaser's written acknowledgment of the receipt
of  a  risk  disclosure statement, a written agreement to transactions involving
penny  stocks,  and  a signed and dated copy of a written suitability statement.
These  disclosure  requirements  may  have  the  effect  of reducing the trading
activity  in  the  secondary  market  for  our  stock.

Holders  of  Common  Stock

As  at  March  25,  2002,  there  were 20 record holders of the Company's common
stock.

Stock  Option  Grants

To  date,  we  have  not  granted  any  stock  options.

Dividends

There  are  no  restrictions  in  our  Articles  of Incorporation or bylaws that
restrict  us  from  declaring  dividends.  The Nevada Revised Statutes, however,
prohibit  us  from  declaring  dividends  where,  after  giving  effect  to  the
distribution  of  the  dividend:

               (A)  we would not be able to pay our debts as they become due in
                    the usual course of business; or

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               (B)  our total assets would be less than the sum of our total
                    liabilities, plus the amount that would be needed to satisfy
                    the rights of shareholders who have preferential rights
                    superior to those receiving the distribution.

We have neither declared nor paid any cash dividends on our capital stock and do
not  anticipate  paying  cash  dividends  in the foreseeable future. Our current
policy  is  to  retain  any  earnings  in  order to finance the expansion of our
operations. Our board of directors will determine future declaration and payment
of dividends, if any, in light of the then-current conditions they deem relevant
and  in  accordance  with  the  Nevada  Revised  Statutes.

Recent  Sales  of  Unregistered  Securities

We  did  not complete any sales of our common stock during our fiscal year ended
December  31,  2001.


Item  6.  Management's  Discussion  and  Analysis  or  Plan  of  Operation

PLAN  OF  OPERATION

Our  plan  of  operations  for  the  twelve  months is to complete the following
objectives  within  the  time  period  specified:

               (1)  We plan to undertake an advertising and marketing campaign
                    now that the development of our web site is complete. The
                    objectives of this advertising and marketing campaign will
                    be to generate sales of advertising for our web site. We
                    anticipate that the cost of these marketing expenses will be
                    approximately $6,000.

               (2)  We anticipate spending approximately $6,000 on ongoing
                    operating and administrative expenses. We anticipate that
                    our monthly operating costs of our Web site and the costs of
                    maintaining the accuracy of the immigration information on
                    our web site will be approximately $500 per month.

We  anticipate  that we will be spending approximately $12,000 over twelve-month
period  following  December 31, 2001 pursuing our stated plan of operations.  Of
these  anticipated  expenditures, we anticipate that $6,000 will be spent on our
plan  of  operations  over  the  six  months  following  December  31, 2001.  We
anticipate that our present cash reserves are sufficient for us to carry out our
plan  of operations without additional financing for approximately twelve months
following  December 31, 2001.  If we are successful in earning revenues, then we
may  increase  our  advertising  and  marketing  expenses in order to attempt to
generate  further  revenues.

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We  anticipate  that  we may require additional financing in order to pursue our
business  plan  if:  (a) the costs of implementing our business plan are greater
than  anticipated;  or  (b)  we  are unsuccessful in earning sufficient revenues
after  commencement  of operations in order to sustain continued operations.  We
anticipate that if we pursue any additional financing, the financing would be an
equity  financing achieved through the sale of our common stock.  We do not have
any arrangement in place for any debt or equity financing.  If we are successful
in  completing  an  equity  financing,  existing  shareholders  will  experience
dilution  of  their interest in our company.  In the event we are not successful
in  obtaining  such financing when necessary, we may not be able to proceed with
our  business  plan.

Our  actual expenditures and business plan may differ from the one stated above.
Our  board of directors may decide not to pursue this plan.  In addition, we may
modify  the  plan  based  on  available  financing.

We  anticipate  continuing  operating losses in the foreseeable future.  We base
this  expectation  in  part on the fact that we will incur substantial operating
expenses  in  completing  our  stated plan of operations before we will have the
opportunity  to  earn revenues.  Our future financial results are also uncertain
due to a number of factors, many of which are outside our control. These factors
include,  but  are  not  limited  to:

(1)  consumer acceptance of our web site as a commercially marketable Internet
     web site with information and features sought by Internet users desiring
     information on immigration to the United States;
(2)  our ability to successfully market our web site to our potential users;
(3)  our ability to successfully market our web site to advertisers who are
     prepared to pay for advertising on our site;
(4)  the introduction of competing web sites and services.

RESULTS  OF  OPERATIONS

We did not earn any revenues during the year ended December 31, 2001.  We do not
anticipate  earning revenues until such time as we commence sales of advertising
for  our web site.  We are presently in the development stage and we can provide
no  assurance  that  we will be successful in earning revenues from our web site
now  that  our  web site is operational.  Any future revenues will be contingent
upon  us  being  able  to  complete  sales  of  advertising  for  our web sites.

We  incurred  operating  expenses  in  the  amount of $18,989 for the year ended
December  31,  2001 as compared to $31,342 for the year ended December 31, 2000.
The  largest component of our operating expenses for the year ended December 31,
2001  consisted of professional fees in the amount of $16,693 that were incurred
in  connection with our filing a registration statements with the Securities and
Exchange  Commission.  We will continue to incur increased professional fees now
that  we  are a reporting company under the Securities Exchange Act of 1934.  We
also  incurred  office  and  sundry expenses in the amount of $1,243 during this
period.

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We incurred a loss of $34,268 for the year ended December 31, 2001.  We incurred
a  net  loss of $31,342 or the year ended December 31, 2000. Our net losses were
attributable  entirely  to  our  operating  expenses.

FINANCIAL  CONDITION

Liquidity  and  Financial  Condition

We had cash of $14,877 as of December 31, 2001 as compared to cash of $38,600 as
at  December 30, 2000. At December 31, 2001 we had working capital of $13,068 as
compared  to  $37,732 at December 31, 2000. At September 30, 2001 we had cash of
$28,170.  The  decrease  in  working  capital  is  attributable primarily to our
operating  expenses  during  the  year ended December 31, 2001, our inability to
earn  revenues  during  this  year  and  an  increase  in  our accounts payable.

We anticipate that we will require additional financing if we are not successful
in  earning  revenues  from our web site.  There is no assurance that we will be
able  to  obtain  additional financing if and when required.  We anticipate that
any additional financing may be in the form of sales of additional shares of our
common  stock which may result in dilution to our current shareholders.  See the
discussion  above  under  Plan  of  Operations.

Forward-Looking  Statements

Many  statements made in this report are forward-looking statements that are not
based  on  historical  facts.  Because  these forward-looking statements involve
risks  and  uncertainties,  there  are important factors that could cause actual
results  to  differ  materially  from  those  expressed  or  implied  by  these
forward-looking  statements.  The forward-looking statements made in this report
relate  only  to  events  as  of  the  date  on  which  the statements are made.

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Item  7.  Financial  Statements

Index  to  Financial  Statements:

1.     Auditors'  Report;

2.     Audited  Financial  Statements  for  the  year  ended  December 31, 2001,
including:

     a.   Balance Sheets as at December 31, 2001 and 2000;

     b.   Statement of Loss and Deficit for the years ended December 31, 2001
          and 2000;

     c.   Statement of Cash Flows for the years ended December 31, 2001 and
          2000;

     d.   Statement of Stockholders' Equity for the years ended December 31,
          2001 and 2000;

     e.   Notes to Financial Statements.

                                       12
<PAGE>








                              BALSAM VENTURES INC.
                          (A Development Stage Company)


                              FINANCIAL STATEMENTS


                           DECEMBER 31, 2001 AND 2000
                             (Stated in U.S Dollars)



                                      F-1
<PAGE>


                                                    Morgan
                                                    & Company
                                                    Chartered Accountants





                                AUDITORS' REPORT




To  the  Shareholders  and  Directors
Balsam  Ventures  Inc.
(A  Development  Stage  Company)


We  have audited the balance sheets of Balsam Ventures Inc. (a development stage
company)  as  at  December  31,  2001  and  2000, and the statements of loss and
deficit  accumulated during the development stage, cash flows, and stockholders'
equity  for  the years ended December 30, 2001 and 2000, and for the period from
August  17,  1999  (date  of  inception)  to December 31, 2001.  These financial
statements  are  the  responsibility  of  the  Company's  management.  Our
responsibility  is  to express an opinion on these financial statements based on
our  audits.

We  conducted  our  audits  in  accordance with United States generally accepted
auditing  standards.  Those  standards require that we plan and perform an audit
to  obtain  reasonable  assurance  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.  We  believe  that  our  audit provides a reasonable basis for our
opinion.

In  our  opinion,  these  financial  statements  present fairly, in all material
respects,  the  financial  position  of  the Company as at December 31, 2001 and
2000,  and  the  results  of  its  operations and cash flows for the years ended
December  31,  2001  and  2000, and for the period from August 17, 1999 (date of
inception)  to  December  31,  2001  in  accordance with United States generally
accepted  accounting  principles.

The  accompanying  financial  statements  have  been  prepared assuming that the
Company  will  continue  as  a going concern.  The Company is in the development
stage  and  will need additional working capital for its planned activity, which
raises  substantial  doubt  about  its  ability  to continue as a going concern.
Management's plans in regard to these matters are described in Note 1(c).  These
financial  statements  do not include any adjustments that might result from the
outcome  of  this  uncertainty.




Vancouver,  B.C.                                           /s/  Morgan & Company

March  5,  2002                                           Chartered  Accountants


Tel:  (604) 687-5841       Member of            P.O. Box 10007 Pacific Centre
Fax:  (604) 687-0075         ACPA        Suite 1488 - 700 West Georgia Street
www.morgan-cas.com        International               Vancouver, B.C. V7Y 1A1

                                        F-2
<PAGE>

<TABLE>
<CAPTION>

                             BALSAM  VENTURES  INC.
                          (A Development Stage Company)

                                 BALANCE SHEETS
                            (Stated in U.S. Dollars)



-------------------------------------------------------------------------------
                                                             DECEMBER  31
                                                           2001         2000
-------------------------------------------------------------------------------
<S>                                                        <C>        <C>

ASSETS

Current
  Cash                                                     $ 14,877   $ 38,600

Software Development Costs                                    8,675      3,000
                                                           --------------------

                                                           $ 23,552   $ 41,600
===============================================================================

LIABILITIES

Current
  Accounts payable                                         $  1,809   $    868
                                                           --------------------

SHAREHOLDER'S EQUITY

Share Capital
  Authorized:
    100,000,000 common shares, par value with
    $0.001 per share

  Issued and outstanding:
    10,100,000 common shares                                 10,100     10,100

  Additional paid-in capital                                 64,900     64,900

  Less:  Subscriptions receivable                                 -          -

Deficit Accumulated During The Development Stage            (53,257)   (34,268)
                                                           --------------------
                                                             21,743     40,732
                                                           --------------------
                                                           $ 23,552   $ 41,600
===============================================================================
</TABLE>


Approved by the Board of Directors:


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

                                       F-3
<PAGE>

<TABLE>
<CAPTION>

                                         BALSAM  VENTURES  INC.
                                     (A Development Stage Company)

                                    STATEMENTS OF LOSS AND DEFICIT
                                       (Stated in U.S. Dollars)


---------------------------------------------------------------------------------------
                                                                             INCEPTION
                                                                             AUGUST 17
                                                          YEARS ENDED         1999 TO
                                                          DECEMBER 31       DECEMBER 31
                                                       2001         2000       2001
---------------------------------------------------------------------------------------
<S>                                                <C>          <C>          <C>

Expenses
  Consulting services                              $         -  $         -  $   100
  Domain registration                                      135            -      205
  Professional fees                                     16,693       28,838   48,234
  Office and sundry                                      1,243          994    2,290
  Stock Transfer Services                                  918        1,510    2,428
                                                   ---------------------------------
Net Loss For The Year                                   18,989       31,342  $53,257
                                                                             =======

Deficit Accumulated During The
  Development Stage, Beginning Of Year                  34,268        2,926
                                                   ------------------------

Deficit Accumulated During The
  Development Stage, End Of Year                   $    53,257  $    34,268
===========================================================================

Net Loss Per Share                                 $      0.01  $      0.01
===========================================================================

Weighted Average Number Of Shares
  Outstanding                                       10,100,000   10,100,000
===========================================================================
</TABLE>


                                     F-4
<PAGE>


<TABLE>
<CAPTION>

                             BALSAM  VENTURES  INC.
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS
                            (Stated in U.S. Dollars)


-------------------------------------------------------------------------
                                                          INCEPTION
                                                          AUGUST 17
                                         YEARS ENDED       1999 TO
                                         DECEMBER 31     DECEMBER 31
                                            2001       2000       2001
-------------------------------------------------------------------------
<S>                                       <C>        <C>        <C>

Cash Flows From Operating Activities
  Net loss for the year                   $(18,989)  $(31,342)  $(53,257)

Adjustments To Reconcile Net Loss To Net
  Cash Used By Operating Activities
    Change in accounts payable                 941       (430)     1,809
                                          -------------------------------
                                           (18,048)   (31,772)   (51,448)
                                          -------------------------------

Cash Flows From Investing Activity
  Software development costs                (5,675)    (3,000)    (8,675)
                                          -------------------------------

Cash Flows From Financing Activities
  Share capital                                  -          -     75,000
  Subscriptions receivable                       -      2,500          -
                                          -------------------------------
                                                 -      2,500     75,000
                                          -------------------------------


Increase (Decrease) In Cash                (23,723)   (32,272)    14,877

Cash, Beginning Of Year                     38,600     70,872          -
                                          -------------------------------

Cash, End Of Year                         $ 14,877   $ 38,600   $ 14,877
=========================================================================

</TABLE>


                                       F-5
<PAGE>

<TABLE>
<CAPTION>

                                       BALSAM  VENTURES  INC.
                                   (A Development Stage Company)

                                 STATEMENT OF STOCKHOLDERS' EQUITY

                                     DECEMBER 31, 2001 AND 2000
                                            (Unaudited)
                                      (Stated in U.S. Dollars)



                                           COMMON STOCK
                                  -----------------------------
                                                     Additional     Share
                                                       Paid-In   Subscriptions
                                    Shares    Amount   Capital    Receivable    Deficit     Total
<S>                               <C>         <C>      <C>       <C>           <C>        <C>

Shares issued for cash at $0.001   5,000,000  $ 5,000  $      -  $         -   $      -   $  5,000


Shares issued for cash at $0.01    5,000,000    5,000    45,000            -          -     50,000


Shares issued for cash at $0.20      100,000      100    19,900            -          -     20,000

Subscriptions receivable                   -        -         -       (2,500)         -     (2,500)

Net loss for the period                    -        -         -            -     (2,926)    (2,926)
                                  -----------------------------------------------------------------

Balance, December 31, 1999        10,100,000   10,100    64,900       (2,500)    (2,926)    69,574

Subscriptions receivable                   -        -         -        2,500          -      2,500

Net loss for the year                      -        -         -            -    (31,342)   (31,342)
                                  -----------------------------------------------------------------

Balance, December 31, 2000        10,100,000   10,100    64,900            -    (34,268)    40,732

Net loss for the year                      -        -         -            -    (18,989)   (18,989)
                                  -----------------------------------------------------------------

Balance, December 31, 2001        10,100,000  $10,100  $ 64,900  $         -   $(53,257)  $ 21,743
                                  =================================================================

</TABLE>


                                                           F-6
<PAGE>

                              BALSAM VENTURES INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000
                                   (Unaudited)
                            (Stated in U.S. Dollars)



1.     NATURE  OF  OPERATIONS

a)     Organization

The Company was incorporated in the State of Nevada, U.S.A., on August 17, 1999.

b)     Development  Stage  Activities

The Company plans to launch a free information Website to assist and attract the
people  wanting  information on immigration to the USA. The Company plans to use
the  Website  to  earn income from companies who are prepared to pay to have Web
advertising  in  the  form  of  a button or banners on the Website selling their
products or services. The Company plans to solicit advertisers who are targeting
sales  of  their  products  and  services at people using the Company's website.

The  Company  is  in the development stage, therefore, recovery of its assets is
dependent  upon  future  events,  the  outcome  of  which is indeterminable.  In
addition,  successful  completion  of  the Company's development program and its
transition,  ultimately  to the attainment of profitable operations is dependent
upon  obtaining  adequate  financing  to  fulfil  its development activities and
achieve  a  level  of  sales  adequate  to  support  its  cost  structure.

c)     Going  Concern

The Company will need additional working capital to be successful in its planned
activity  and  to  service  its current debt for the coming year and, therefore,
continuation  of  the Company as a going concern is dependent upon obtaining the
additional  working  capital  necessary to accomplish its objective.  Management
has  developed a strategy, which it believes will accomplish this objective, and
is  presently  engaged  in seeking various sources of additional working capital
including  equity  funding  through a private placement and long term financing.


2.     SIGNIFICANT  ACCOUNTING  POLICIES

The  financial  statements  of the Company have been prepared in accordance with
generally  accepted  accounting  principles  in  the  United  States.  Because a
precise  determination  of  many assets and liabilities is dependent upon future
events,  the  preparation  of  financial  statements  for  a  period necessarily
involves  the  use  of  estimates  which have been made using careful judgement.

                                        F-7
<PAGE>

                              BALSAM VENTURES INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000
                                   (Unaudited)
                            (Stated in U.S. Dollars)



2.     SIGNIFICANT  ACCOUNTING  POLICIES  (Continued)

The  financial  statements have, in management's opinion, been properly prepared
within  reasonable  limits  of  materiality  and  within  the  framework  of the
significant  accounting  policies  summarized  below:

a)     Development  Stage  Company

The  Company  is  a  developed  stage  company  as  defined in the Statements of
Financial  Accounting Standards No. 7. The Company is devoting substantially all
of  its  present  efforts  to  establish  a new business and none of its planned
principal operations have commenced. All losses accumulated since inception have
been  considered  as  part  of  the  Company's  development  stage  activities.

b)     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 for the reporting period. Actual
results  could  differ  from  these  estimates.

c)     Software  Development  Costs

Software development costs represent capitalized costs of design, configuration,
coding,  installation  and  testing  of  the Company's website up to its initial
implementation.  Upon implementation the asset will be amortized to expense over
its  estimated  useful  life  of  three  years  using  the straight line method.
Ongoing  website  post-implementation costs of operation, including training and
application  maintenance,  will  be  charged  to  expense  as  incurred.

d)     Income  Taxes

The  Company  has  adopted Statement of Financial Accounting Standards No. 109 -
"Accounting  for  Income Taxes" (SFAS 109). This standard requires the use of an
asset  and  liability  approach for financial accounting and reporting on income
taxes.  If it is more likely than not that some portion or all if a deferred tax
asset  will  not  be  realized,  a  valuation  allowance  is  recognized.

                                      F-8
<PAGE>

                              BALSAM VENTURES INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                           DECEMBER 31, 2001 AND 2000
                                   (Unaudited)
                            (Stated in U.S. Dollars)



2.     SIGNIFICANT  ACCOUNTING  POLICIES  (Continued)

e)     Financial  Instruments

The  Company's  financial  instruments  consist  of  cash  and accounts payable.


Unless  otherwise  noted,  it  is  management's opinion that this Company is not
exposed  to  significant  interest  or credit risks arising from these financial
instruments.  The  fair  value  of these financial instruments approximate their
carrying  values,  unless  otherwise  noted.

f)     Net  Loss  Per  Share

Net  loss  per  share  is calculated using the weighted average number of common
shares  outstanding  during  the  period.  Fully  diluted  loss per share is not
presented,  as  the  impact  of  the  exercise  of  options  is  anti-dilutive.



                                           F-9
<PAGE>



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

Not  applicable.

                                    PART III

Item  9.  Directors  and  Executive  Officers  of  the  Registrant

Our  executive  officers and directors and their respective ages as of March 25,
2002  are  as  follows:


Name                            Age      Offices  Held
----------------------------   -------   --------------------------------
Robert  S.  Smith                 56     President, Chief Executive Officer,
                                         Secretary and Treasurer, and Director

Set forth below is a brief description of the background and business experience
of  Mr.  Smith  for  the  past  five  years.

Mr.  Robert  S.  Smith is our President, Secretary and Treasurer and is the sole
member  of  our board of directors.  Mr. Smith has been our President, Secretary
and Treasurer and a director since August 17, 1999.   Mr. Smith has been a pilot
with  Air  B.C.,  an  airline with operations in British Columbia, Canada, since
1994.  Mr. Smith was also employed by Air B.C. from 1986 to 1992.  Mr. Smith was
employed  by  a  private airline during the period from 1992 to 1994.  Mr. Smith
commenced  his  aviation  career  as a pilot in 1975.  Mr. Smith served with the
Canadian  Armed  Forces  from  1964 to 1972.  Mr. Smith graduated from Prince of
Wales  College  of St. Johns, Newfoundland, Canada in 1963.  Mr. Smith is also a
partner  in  a  private  boat  building  company.

Terms  of  Office

Our  executive  officer  is employed by us on a part-time basis. We have made no
arrangements  to  negotiate  full-time  employment with any of our officers. The
above  listed  director  will  serve  until  the  next  annual  meeting  of  the
shareholders  or  until  his  death,  resignation,  retirement,  removal,  or
disqualification,  or  until  his successor has been duly elected and qualified.
Vacancies  in  the existing Board of Director are filled by majority vote of the
remaining  Directors.  The officers serve at the will of the Board of Directors.

Significant  Employees

Other  than the individual described below, we do not have any employees who are
not  executive  officers that are expected to make a significant contribution to
the  business.

                                       21


<PAGE>


Section  16(a)  Beneficial  Ownership  Reporting  Compliance

The  following  persons  have  failed to file, on a timely basis, the identified
reports  required  by  Section  16(a) of the Exchange Act during the most recent
fiscal  year:

                              Number     Transactions     Known  Failures
                              Of  late   Not  Timely      To  File  a
Name and principal position   Reports    Reported         Required Form
---------------------------   ---------  --------------   ------------
Robert  S.  Smith             One           None          None
Chief  Executive  Officer
President,  Secretary,
Treasurer
and  Director


Item  10.  Executive  Compensation

The  following  table sets forth certain information as to Mr. Robert Smith, our
president  and  director, for our last fiscal year ended December 31, 2001.   We
do  not have any executive officers other than Mr. Smith.  No other compensation
was  paid  to  Mr.  Smith  during  this  time  period.


                           Summary Compensation Table
--------------------------------------------------------------------------------
                         Annual Compensation       Long Term Compensation
                    ----------------------------  ------------------------
                                          Other                             All
                                          Annual    Awards       Payouts   Other
                                            Com-  --------------  -------   Com-
                                            pen-  Restricted                pen-
                                            sa-   Stock   Options/  LTIP    sa-
Name      Title      Year  Salary  Bonus    tion  Awarded SARs*(#)payouts($)tion
----      -----      ----  ------  -----  ------- ------- ------- --------- ----
Robert    President, 2001, $0       0     0       0       0       0          0
S. Smith  CEO,       2000, $0       0     0       0       0       0          0
          Secretary, 1999
          Treasurer
          and Director




Stock  Option  Grants

We  did  not grant any stock options to the executive officers during our fiscal
year ended December 31, 2001.  We have also not granted any stock options to the
executive  officers  since  December  31,  2001. In addition, as of December 31,
2001,  no  retirement,  pension  or insurance programs or other similar programs
have  been  adopted  by  us  for  the  benefit  of  our  employees.

We  have  not  granted  any  stock  options  since  December  31,  2001.

                                       22
<PAGE>

Management  Agreements

We  currently  are  not party to any management or employment agreement with Mr.
Robert  Smith,  our  sole  executive  officer  and  director.


Item  11.  Security  Ownership  of  Certain  Beneficial  Owners  and  Management

The  following table provides the names and addresses of each person known to us
to own more than 5% of our outstanding common stock as of March 25, 2002, and by
the  officers  and  directors, individually and as a group.  Except as otherwise
indicated,  all  shares  are  owned directly. Unless specifically indicated, the
shareholders listed possess sole voting and investment power with respect to the
shares  shown.

<TABLE>
<CAPTION>

                      Name  and  address          Amount  of            Percent
Title of class       of beneficial owner         beneficial ownership  of class
-------------------  --------------------------  --------------------  ---------
<S>                  <C>                         <C>                   <C>
Common Stock         Robert S. Smith                 5,000,000 shares      49.5%
                     Director, President &
                     Chief Executive Officer
                     Suite 12, 5880 Hampton Pl.
                     Vancouver, British Columbia
                     Canada

Common Stock         All Officers and Directors      5,000,000 shares      49.5%
                     as a Group that consists of
                     one person

</TABLE>


The  percent  of  class is based on 10,100,000 shares of common stock issued and
outstanding  as  of  March  25,  2001.

Under the rules of the Securities and Exchange Commission, a person (or group of
persons)  is  deemed  to  be  a  "beneficial  owner" of a security if he or she,
directly  or indirectly, has or shares the power to vote or to direct the voting
of  such  security,  or  the power to dispose of or to direct the disposition of
such  security.  Accordingly,  more  than  one  person  may  be  deemed  to be a
beneficial  owner  of  the  same  security.  A  person  is  also  deemed to be a
beneficial  owner  of  any  security, which that person has the right to acquire
within  60  days,  such  as  options or warrants to purchase the common stock of
Balsam.



                                       23
<PAGE>

Item  12.  Certain  Relationships  and  Related  Transactions

None  of  the  following parties since the date of our incorporation has had any
material  interest,  direct  or  indirect,  in any transaction with us or in any
presently  proposed  transaction  that,  in  either case, has or will materially
affect  us:

-     Director  or  officer  of  Balsam
-     Proposed  nominee  for  election  as  a  director  of  Balsam
-     Person who beneficially owns, directly or indirectly, shares carrying more
      than  10%  of  the  voting  rights  attached to all outstanding shares of
      Balsam
-     Promoter  of  Balsam
-     Relative  or  spouse  of  any  of  the  foregoing  persons

                                       24
<PAGE>

Item  13.  Exhibits  and  Reports  on  Form  8-K


(a)     Exhibits  and  Index  of  Exhibits

   Exhibit
   Number     Description of Exhibit
   ------     -----------------------
   3.1        Articles  of  Incorporation(1)
   3.2        Bylaws,  as  amended(1)
   4.1        Share  Certificate(1)


(1)     Previously  filed  with  the  Securities  and  Exchange Commission as an
exhibit  to  the  Registrant's  Form  SB-2 Registration Statement, as amended on
March  30,  2000.



(b)     Reports  on  Form  8-K.

No  reports  on  Form  8-K were filed during the last quarter of our fiscal year
ended  December  31,  2001.

No  reports  on  Form  8-K  have  been  filed  since  December  31,  2001.




                                       25
<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.

BALSAM  VENTURES,  INC.

Date:          March  28,  2002


By:            /s/ ROBERT  SMITH
               -------------------------
               ROBERT  SMITH,
               President,  Secretary  and  Treasurer
               (CEO  and  Principal  Financial  Officer)


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

By:            /s/ ROBERT  SMITH
               -------------------------
               President,  Secretary  and  Treasurer
              (Principal Executive Officer)
              (Principal Accounting Officer and Principal Financial Officer)
               Director


                                       26