SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 20549

                           FORM 10-KSB
    ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                      EXCHANGE ACT OF 1934

For the year ended December 31, 2001
Commission File No. 000-26953






                        BACH-HAUSER, INC.
     (Exact name of registrant as specified in its charter)



Nevada                                            88-0390697
(State of organization) (I.R.S. Employer Identification No.)

1221 W. Pacific Coast Hwy., #329, Newport Beach, CA 92663
(Address of principal executive offices)

Registrant's telephone number, including area code (702) 650-5660

Securities registered under Section 12(g) of the Exchange Act:
     Common stock, $0.001 par value per share

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

Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B 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
amendments to this Form 10-KSB.                        [ X ]

Issuer's Revenue during the year ended December 31, 2001:   $ 0

As  of December 31, 2001, the registrant had 15,129,423 shares of
its common stock, $0.001 par value, outstanding. Aggregate market
value  of  the voting and non-voting common equity held  by  non-
affiliates based on the price of $0.09 per share (the selling  or
average   bid  and  asked  price)  as  of  December   31,   2001:
$1,181,648.07.

              DOCUMENTS INCORPORATED BY REFERENCE:

The Company's amended Form 10-SB/A, filed on August 13, 1999, and
the exhibits attached thereto, are incorporated by reference.

                             PART I

ITEM 1.   DESCRIPTION OF BUSINESS

                           Background

Bach-Hauser, Inc. (the "Company") is a Nevada corporation  formed
on  October 10, 1995. Its principal place of business is  located
at 1221 W. Pacific Coast Hwy., #329, Newport Beach, CA 92663. The
Company was organized to engage in any lawful corporate business,
including but not limited to, participating in mergers  with  and
acquisitions  of  other companies. The Company has  been  in  the
developmental stage since inception and has no operating  history
other than organizational matters.

On  October 16, 1995, the Company issued 6,000,000 shares of  its
Common  Stock,  at  a  price of $0.001 per share,  to  its  three
founders.  The initial founders gifted some of their shares to  a
total  of  5 persons, who then gifted some of their shares  to  a
total  of  23  additional persons.  All of these  transfers  were
issued   in  accordance  with  the  exemption  from  registration
requirements of Section 5 of the Securities Exchange Act of 1934,
as amended, as provided in Section 4 of the Act.

On  April 29, 1999, the Company approved reorganizing the capital
structure  by  forward splitting the outstanding  shares  of  the
corporation  on a 2.5:1. The forward split had a  net  result  of
7,500,000  shares  held by non-officers and 7,500,000  restricted
shares  held  by  officers for a total of 15,000,000  issued  and
outstanding shares.

Originally  the  Company's primary focus was  to  seek  a  viable
company  or  companies with whom it could merge or  acquire.   On
September 3, 1999, the Company announced that it had entered into
a  licensing agreement with TCR Environmental Corp, a corporation
incorporated  under the laws of the Province of Ontario,  Canada.
TCR  is  engaged in the design, construction, the  equipping  and
operation  of  waste  management facilities  for  the  recycling,
composting  and  disposing of municipal and  institutional  solid
waste, and the sale or other disposition of the resultant compost
and  recycled products. TCR currently operates a waste-processing
facility  in  the  Town  of Aylmer, in the Province  of  Ontario,
Canada,  which  will  serve as a model for  the  turn-key  waste-
processing  facility  proposed by  TCR  to  be  manufactured  and
marketed throughout the world.

Under  the  terms of the agreement, the Company was  granted  the
exclusive  license  to  distribute, use  and  sell  the  products
throughout  the world, with the exception of Canada, and  to  use
the  information  and  knowledge of TCR in conjunction  with  the
products.   The  agreement also grants the Company the  exclusive
rights  to use and exploit the information and knowledge  in  the
distribution of the products.  The agreement is to remain in full
force  and  effect for a period of 25 years, with  an  option  to
extend  the  term for a period of 25 years. As consideration  for
the  license, the Company issued 4,500,000 shares of  its  common
stock to TCR.

The  Board  of  Directors has elected to begin  implementing  the
Company's principal business purpose, described below under "Plan
of  Operation". The Company is still in its development stage and
has not generated any revenues.

ITEM 2.   DESCRIPTION OF PROPERTY.

The  Company  neither owns nor leases any real property  at  this
time. The Company does have the use of a limited amount of office
space  from one of its directors, at no cost to the Company,  and
Management expects this arrangement to continue. The Company pays
its  own  charges  for long distance telephone  calls  and  other
miscellaneous  secretarial, photocopying, and  similar  expenses.
This is a verbal agreement between the directors and the Board of
Directors.

ITEM 3.   LEGAL PROCEEDINGS

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

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

No such matters were submitted during the most recent quarter.

                             PART II

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

                          Market Price

The  Company's  common  stock is quoted on  the  over-the-counter
market in the United States under the symbol BHAS. The quotations
reflect inter-dealer prices, without retail mark-up, mark-down or
commission and may not represent actual transactions.
            Qtr. Ended            Low/Bid    High/Ask
            June 30, 1999           6.25       6.25
            September 30, 1999      5.50       7.00
            December 31, 1999       0.19       0.37
            March 31, 2000          0.22       0.32
            June 30, 2000           0.38       0.41
            September 30, 2000      0.37       0.42
            December 31, 2000       0.06       0.08
            March 31, 2001          0.01       0.02
            June 30, 2001           0.00       0.04
            September 30, 2001      0.04       0.11
            December 31, 2001       0.03       0.11

Source: America Online.

The  Company's common stock is considered a "penny  stock"  under
the Commission rules.

Effective August 11, 1993, the Securities and Exchange Commission
adopted Rule 15g-9, which established the definition of a  "penny
stock,"  for  purposes  relevant to the Company,  as  any  equity
security that has a market price of less than $5.00 per share  or
with  an exercise price of less than $5.00 per share, subject  to
certain exceptions. For any transaction involving a penny  stock,
unless  exempt,  the rules require: (i) that a broker  or  dealer
approve a person's account for transactions in penny stocks;  and
(ii)  the  broker or dealer receive from the investor  a  written
agreement  to  the  transaction, setting forth the  identity  and
quantity of the penny stock to be purchased. In order to  approve
a  person's account for transactions in penny stocks, the  broker
or  dealer  must (i) obtain financial information and  investment
experience  and  objectives  of  the  person;  and  (ii)  make  a
reasonable  determination that the transactions in  penny  stocks
are  suitable  for  that  person and that person  has  sufficient
knowledge  and experience in financial matters to be  capable  of
evaluating the risks of transactions in penny stocks. The  broker
or  dealer must also deliver, prior to any transaction in a penny
stock,  a disclosure schedule prepared by the Commission relating
to  the  penny stock market, which, in highlight form,  (i)  sets
forth  the  basis  on  which  the  broker  or  dealer  made   the
suitability  determination; and (ii) that the  broker  or  dealer
received  a signed, written agreement from the investor prior  to
the  transaction. Disclosure also has to be made about the  risks
of  investing  in  penny stocks in both public offerings  and  in
secondary  trading,  and about commissions payable  to  both  the
broker-dealer   and   the   registered  representative,   current
quotations  for  the  securities  and  the  rights  and  remedies
available  to  an  investor in cases  of  fraud  in  penny  stock
transactions.  Finally,  monthly  statements  have  to  be   sent
disclosing recent price information for the penny stock  held  in
the  account  and  information on the  limited  market  in  penny
stocks.

The   National  Association  of  Securities  Dealers,  Inc.  (the
"NASD"),  which administers NASDAQ, has recently made changes  in
the  criteria for initial listing on the NASDAQ Small Cap  market
and  for  continued listing. For initial listing, a company  must
have net tangible assets of $4 million, market capitalization  of
$50  million  or  net  income of $750,000 in  the  most  recently
completed  fiscal year or in two of the last three fiscal  years.
For  initial listing, the common stock must also have  a  minimum
bid price of $4 per share. In order to continue to be included on
NASDAQ, a company must maintain $2,000,000 in net tangible assets
and  a $1,000,000 market value of its publicly-traded securities.
In addition, continued inclusion requires two market-makers and a
minimum bid price of $1.00 per share.

Management intends to strongly consider undertaking a transaction
with  any  merger or acquisition candidate which will  allow  the
Company's   securities  to  be  traded  without   the   aforesaid
limitations.  However, there can be no assurances  that,  upon  a
successful  merger or acquisition, the Company will  qualify  its
securities for listing on NASDAQ or some other national exchange,
or  be  able  to maintain the maintenance criteria  necessary  to
insure  continued listing. The failure of the Company to  qualify
its securities or to meet the relevant maintenance criteria after
such qualification in the future may result in the discontinuance
of  the  inclusion  of  the Company's securities  on  a  national
exchange.  In  such  events, trading, if any,  in  the  Company's
securities  may  then continue in the non-NASDAQ over-the-counter
market. As a result, a shareholder may find it more difficult  to
dispose  of,  or to obtain accurate quotations as to  the  market
value of, the Company's securities.

                            Dividends

The  Registrant has not paid any dividends to date,  and  has  no
plans to do so in the immediate future.

            Recent Sales of Unregistered Securities.

During  August 1999, the Company issued 4,500,000 shares  of  its
common  stock  pursuant to the terms of the  licensing  agreement
with  TCR  Environmental Corp. valued at $0.001 per  share.  This
issuance was exempt from registration pursuant to Section 4(2) of
the Securities Act of 1933, as amended.

During  the fourth quarter, Bach-Hauser issued 200,000 shares  of
its  common  stock  to  Dr.  E. Arlin  Torbett  in  exchange  for
consulting services rendered to the Company, valued at $0.05  per
share.  This  issuance was exempt from registration  pursuant  to
Section 4(2) of the Securities Act of 1933, as amended.

In general, under Rule 144 adopted pursuant to the Securities Act
of  1933,  a person (or persons whose shares are aggregated)  who
has   satisfied   a  one  year  holding  period,  under   certain
circumstances, may sell within any three-month period a number of
shares  which does not exceed the greater of one percent  of  the
then  outstanding  Common  Stock or the  average  weekly  trading
volume  during the four calendar weeks prior to such  sale.  Rule
144 also permits, under certain circumstances, the sale of shares
without  any quantity limitation by a person who has satisfied  a
two-year holding period and who is not, and has not been for  the
preceding three months, an affiliate of the Company.

ITEM 6.   MANAGEMENT'S PLAN OF OPERATION

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS

This registration statement contains statements that are forward-
looking  statements within the meaning of the federal  securities
laws.  These include statements about our expectations,  beliefs,
intentions  or  strategies for the future, which we  indicate  by
words  or  phrases  such  as  "anticipate,"  "expect,"  "intend,"
"plan,"  "will," "believe" and similar language. These statements
involve  known and unknown risks, including those resulting  from
economic  and  market conditions, the regulatory  environment  in
which  we  operate,  competitive activities, and  other  business
conditions, and are subject to uncertainties and assumptions  set
forth  elsewhere  in  this  registration  statement.  Our  actual
results  may differ materially from results anticipated in  these
forward-looking   statements.   We   base   our   forward-looking
statements  on  information currently available  to  us,  and  we
assume no obligation to update these statements.

                        Plan of Operation

The  Company's plan of operation is to provide customers with the
highest quality service to meet their specific needs for the cost-
effective   processing,  recycling  and  disposal  of  municipal,
industrial, commercial and institutional solid waste and to  meet
landfill reduction goals.

Through  the  licensing agreement, the Company, through  the  TCR
Total  Recycling  System,  is able to  offer  municipalities  and
counties  with  a  population of 100,000 or  more  an  affordable
environmental  solution  to  waste disposal,  including  a  waste
management plant which incorporates the collection and processing
of waste into three streams:

  1.   recyclables
  2.   organic compostables
  3.   residuals (for landfill or waste-to-energy recovery)

The  TCR  Total Recycling System is a two-bag system. It  differs
from  conventional waste management and recycling methods in that
the  custom-built  recovery  facility  receives  mixed  loads  of
municipal, commercial and industrial sold waste contained in both
Blue  and  Black  Bags. The use of a two-bag  system  provides  a
simple,   efficient   and  cost-effective   solution   to   waste
management.   Blue   Bags   (recyclable   items)    allow    easy
identification  and total recovery of assets, while  the  opening
and  sorting of Black Bag contents (balance of the waste  stream)
ensures  total recovery of recyclable items which would otherwise
be lost to landfill.

Municipal  waste  is received in the materials recovery  facility
and is separated into two processing categories - recyclables and
household  waste. Blue Bag contents (recyclables) are sorted  and
conveyed  to a baler further processing, then internally brokered
to  end  users.  Black  Bag contents (wet waste)  are  sorted  to
recover  any  recyclable material and processed  to  remove  non-
compostable contaminants.

Any organic material retrieved from sorting Black Bag contents is
conveyed  to  a  low  speed, high torque  shredder.  The  organic
material,  cut to optimize size for composting, is then  conveyed
to  a  high  speed  composting  unit.  Computerized  control  and
monitoring  of the compost, by a computer-controlled robot  which
turns and irrigates the material, ensures specific conditions are
maintained throughout the 28-day composting process. The  Company
monitors moisture content, temperature, pH, oxygen, and carbon to
nitrogen  ratios  to  ensure  optimum  conditions  for  anaerobic
decomposition and the elimination of human/plant pathogens.

Water  that  comes  into contact with any stage  of  the  compost
process  (ie.  Storm water from curing pad)  is  kept  onsite  to
eliminate impacts, stored in a retention pond, and used  back  in
the  process to ensure optimum moisture levels. Odor  control  is
maintained  through the use of enzymatic mist,  hygiene,  and  an
award  winning bio-filter system. The stabilized compost is  then
tested and stockpiled before being shipped to end users. The  end
result is high quality compost which can be supplied to customers
at a very attractive price.

Management   believes  that  the  TCR  Total   Recycling   System
dramatically   increases  the  amount  of   recyclable   material
recovered  while  eliminating the need for  different  collection
trucks,  specialized equipment and Blue Boxes. With its potential
for   an   80%  diversion  away  from  landfill,  the   Company's
alternative  to  the  costly  and ineffective  Blue  Box  program
reduces long-term maintenance costs for existing landfill  sites.
In  conventional  systems,  many  recyclable  items  and  organic
compostables  are  lost  when  the  traditional  Black  Bag  goes
directly  to  landfill.  The TCR Total Recycling  System  ensures
improperly disposed items are recovered.

                         Current Trends

Current  trends  show that stakeholder roles and responsibilities
are  changing.  As government budgets continue to be  down-sized,
industry  is increasingly being expected to contribute  solutions
through  stewardship  initiatives.  While  corporations  are  re-
assessing their waste production and disposal attitudes, they are
looking for opportunities to divert waste away from landfill  and
towards  more responsible alternatives. In addition, there  is  a
more  informed,  concerned  and involved  public  which  is  also
playing  a  key  role  in the evolution of the  waste  management
industry.

The  most  obvious  reasons for recycling are  the  environmental
benefits.  Using recycled rather than virgin materials uses  less
energy, emits less pollution and reduces the use of non-renewable
resources.  Producing compost reduces pollution  and  provides  a
capable  soil amendment. Land uses have made soil susceptible  to
processes that diminish its organic content.

A  soil's  organic  content is essential for retaining  moisture,
aiding water infiltration, retaining carbon, nutrient storage and
supply,  cation  exchange,  and structural  stability  to  combat
erosion and compaction. Compost from municipal waste has shown to
be a capable amendment. Furthermore, compost used on agricultural
land has shown to improve crop resistance to disease.

The  demand  for  compost  is  high,  with  markets  existing  in
agriculture  (mixed into the soil or as a mulch on  farms,  as  a
peat  substitute  in greenhouses), nurseries,  landscaping,  land
reclamation, golf courses, and the gardening industry.  A  survey
conducted by the Composting Council in Canada showed that 70%  of
respondents  either agreed or strongly agreed that  compost  made
from municipal waste is an acceptable product.

The  alternatives  to  landfill, recycling,  and  composting,  is
incineration.  With incineration, the left-over residue  material
is  classified as hazardous waste and must itself be  dumped.  At
the  same  time  there  is increasing public  opposition  to  air
pollution   associated   with   incineration.   However    recent
innovations  have  shown that with high enough  temperatures  and
improved scrubbing, incineration is potentially viable.

Another  noticeable  trend  involves transportation  issues.  The
design  of  the next generation of waste collection vehicles  and
systems is being studied carefully. The ability to use on vehicle
to collect more than one stream of waste materials simultaneously
(i.e., one truck to collect recyclables, organics and garbage) is
very  attractive  and represents considerable  savings  in  fuel,
maintenance  and  other  related costs.  There  are,  of  course,
additional  environmental benefits associated  with  reduce  fuel
consumption  and  lower  levels  of  air  pollution.   Management
believes   that   the   TCR  Total  Recycling   System   provides
municipalities  with  a  foolproof method of  meeting  government
mandates  for  diverting from landfill by 50%,  while  converting
recyclable  solid  waste into marketable commodities.  Management
believes that the system provides a solution to the environmental
problems that befall the traditional methods of waste disposal.

                           Competition

Most  competitors either operate a blue box MRF and a centralized
compost facility or a wet-dry facility. Those that operate a blue
box  MRF and centralized compost facility do not have the ability
to  sort  mixed  waste. Those companies that  operate  a  wet-dry
facility  have  demonstrated comparable processing  volumes  with
lesser  diversion  percentages, and cost taxpayers  millions.  As
most  competitors have not constructed and/or operated facilities
that  allow for a totally integrated system, management  believes
the Company is left with a sales and marketing advantage.

                     Regulation and Taxation

The  Investment Company Act of 1940 classifies as an  "investment
company"  an  issuer which (a) is or holds itself  out  as  being
engaged  primarily in the business of investing,  reinvesting  or
trading  securities, or (b) is engaged or proposes to  engage  in
the  business  of  investing, reinvesting,  owning,  holding,  or
trading in securities, and owns or proposes to acquire investment
securities  having a value exceeding 40 percent of the  value  of
its total assets. While the Company does not intend to engage  in
such  activities,  the Company may obtain  and  hold  a  minority
interest  in  a  number  of development  stage  enterprises.  The
Company  could be expected to incur significant registration  and
compliance  costs  if required to register under  the  Investment
Company  Act  of 1940. Accordingly, management will  continue  to
review  the  Company's activities from time to time with  a  view
toward reducing the likelihood the Company could be classified as
an "investment company".

The  Company intends to structure a merger or acquisition in such
manner  as to minimize Federal and state tax consequences to  the
Company and to any target company.

                            Employees

The Company's only employees at the present time are its officers
and  directors,  who will devote as much time  as  the  Board  of
Directors determine is necessary to carry out the affairs of  the
Company. (See "Item 9").

On  December 8, 2000, Bach-Hauser, Inc. entered into a  licensing
and  software agreement with Aegiss International, whereby  Bach-
Hauser  would  acquire a license for the technology  and  certain
rights  to  a software program in exchange for 150,000 shares  of
its  common  stock.  On  February 14, 2001, Aegiss  International
informed  Bach-Hauser  of its desire to  cancel  such  agreement.
Therefore  the shares which were issued pursuant to the agreement
were to have been cancelled.

On January 18, 2002, Dr. E. Arlin Torbett resigned as a member of
the  Board  of  Directors. The remaining board members  have  not
filled the vacancy created by Dr. Torbett's resignation.

ITEM 7.   FINANCIAL STATEMENTS.

The  financial statements and supplemental data required by  this
Item 7 follow the index of financial statements appearing at Item
13 of this Form 10-SB.

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

     The  Company's  principal accountant was  dismissed  on
     January 26, 2000. The principal accountant's report  on
     the  financial  statements for the past two  years  was
     modified  as  to  uncertainty  that  the  Company  will
     continue  as  a going concern. The decision  to  change
     accountants was approved by the board of directors.

     There  were no disagreements with the former accountant
     on  any  matter of accounting principles or  practices,
     financial  statement disclosure, or auditing  scope  or
     procedure,  which,  if  not  resolved  to  the   former
     accountants satisfaction, would have caused it to  make
     reference  to the subject matter of the disagreement(s)
     in connection with its report.

     A  new  accountant  has been engaged as  the  principal
     accountant  to audit the issuer's financial statements.
     The  new  accountant is Merdinger,  Fruchter,  Rosen  &
     Corso,  P.C.  and  was engaged as  of  June  10,  2000.
     Neither  the  Company nor anyone acting on  its  behalf
     consulted  the new accountant regarding the application
     of  accounting  principles to a specific  completed  or
     contemplated transaction, or the type of audit  opinion
     that  might be rendered on the small business  issuer's
     financial  statements,  as  part  of  the  process   of
     deciding  as  to the accounting, auditing or  financial
     reporting issue, or any matter that was the subject  of
     a  disagreement or event identified in response to this
     Item.

     The  Company has provided the former accountant with  a
     copy  of  the  disclosures it is making in response  to
     this Item.


                            PART III

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

DIRECTORS AND EXECUTIVE OFFICERS.

The  members of the Board of Directors of the Company serve until
the  next  annual  meeting of the stockholders,  or  until  their
successors have been elected. The officers serve at the  pleasure
of the Board of Directors.

There are no agreements for any officer or director to resign  at
the  request  of  any other person, and none of the  officers  or
directors  named  below  are acting  on  behalf  of,  or  at  the
direction of, any other person.

The  Company's officers and directors will devote their  time  to
the  business  on  an  "as-needed" basis, which  is  expected  to
require 5-10 hours per month.

Information  as  to the directors and executive officers  of  the
Company is as follows:

Name/Address                 Age    Position
Peter L. Preston             66     President/Director
1561 #3 Hwy
Cayuga, Ontario  Canada
N0A 1E0

Clayton H. Kass              55     Vice President and Director
1221 PCH #329
Newport Beach, CA 92663

Fern Hill                    49     Secretary/Treasurer/Director
1 Willow Dr. Aylmer
West
Aylmer, Ontario Canada
N5H 3A8

Peter L. Preston; President

Since  December 1999, Mr. Preston has been President and Chairman
of the Board for the Company.

Mr.  Preston  has been involved in sales training, administration
and  executive  decision making. He was very  successful  in  the
field  of  insurance sales and administration.  Mr.  Preston  was
successful in the Provincial election of 1995 and was elected  as
the  representative  for one of the largest ridings  in  Ontario.
Many  pieces  of  legislation introduced, or  worked  on  by  Mr.
Preston  have  been or are about to become law. Mr. Preston  left
the political field to become more involved with the environment.
Mr.  Preston  was introduced to the Total Recycling System  while
serving the people of Ontario and recognized it for what it  was,
a way to deal with household waste other than putting it into the
ground  to foul the earth. His love for the outdoors has  induced
him  to  apply all his efforts to doing what he can to  save  the
earth for future generations.

From 1989 to 1995, Mr. Preston was President of Peter Preston and
Associates, an insurance brokerage firm.

From  June  1995  to  June  1999, Mr. Preston  was  a  Member  of
Provincial Parliament, Province of Ontario.

From June 1999 to September 1999, Mr. Preston was chairman of the
board of an innovative, waste recycling company in Canada.

Clayton H. Kass; Vice President and Director

Since October 2000, Mr. Kass has been Vice President and Director
of the Company.

Mr.  Kass  brings  to  the Company over 25  years  experience  in
results-oriented  R&D  with problem solving  experience  in  both
research, development, Engineer/Build and Manufacturing.  He  has
experience  in  organizing, managing and  implementing  technical
projects. He has developed processes and resolved problems in the
following  areas:  Nuclear  Waste,  Waste  to  Energy,  Hazardous
Material,  Wind  Power,  Water  Based  Cleaning  Systems,  Cement
Plants,  and Landfill Cleanups.  During his work in research,  he
gained   practical  experience  in  designing,   scaling-up   and
constructing  processes and interfacing them  to  computer  based
data acquisition and control systems.

From  1999  to present, Mr. Kass was an Environmental  Consultant
for  various companies, including Thermoteck of Burlington, Iowa,
and  Soluteck  of Burlington, Ontario, Canada.  He serves  as  an
environmental engineer and designs equipment for these companies.

From 1996 to 1999, Mr. Kass was the Vice President and Partner of
Environmental Solutions & Technologies, Inc. where he  headed  up
all   research   and  development  of  the  following   projects:
Destructive  Distillation MSW Waste to Revenue Technology,  NuCon
Nuclear  concentration  System, Skin  Sense  Nuclear  Containment
System  and  MedScan  Medical Monitoring System.  Mr.  Kass  also
obtained  laser  experience  in the  operation,  maintenance  and
design  of  standard Optical layouts during his tenure with  this
company.

From  1992  to 1996, Mr. Kass was the President of Envir-O-Clean.
Mr.  Kass  was responsible for the day to day activities  of  the
company.     Envir-O-Clean   started   water   based    equipment
manufacture, designed and built water based cleaning systems  for
the  automotive  industry, designed and set  up  a  manufacturing
plant  in  Orange  County, California, and  fixed  or  worked  on
numerous environmental remediation technologies.

Fern Hill; Secretary/Treasurer

Since December 1999, Ms. Hill has been the secretary/treasurer of
the Company.

From June 1997 to August 1999, Ms. Hill was employed as an office
manager for Environmental Corp., where she ran all aspects of the
office,   developed  company  procedure  manuals,  set  recording
standard  for  daily  tonnage and material processing.  She  also
maintained   all   record  keeping  including  human   resources,
bookkeeping, various government requirements and compliance.

Form  January 1997 to June 1997, Ms. Hill was employed  at  Honda
Canada as an administrator at the Customer Response Center. There
she   served  as  the  liaison  to  the  President  for  customer
relations,    handling   customer   inquiries    and    preparing
correspondence for the department manager.

From January 1996 to December 1996, Ms. Hill was employed at  Eli
Lilly  Canada, Inc. as an administrator in Customer  Care,  where
she  scheduled appointments and itineraries, organizing  meetings
for  the  Customer Care Manager. She also prepared correspondence
and  presentations for the Sales & Marketing Department. She  was
the  bilingual  administrator reporting  to  the  Senior  Medical
Information  Associate, liaising with medical  professionals  and
the  general  public  to  address their inquiries.  She  prepared
documents for the Medical Reference Library and facilitated in  a
new product launch for the Diabetes Care Team.

From   1994  to  1996,  Ms.  Hill  was  employed  as  an   office
administrator  at DBS Satellite Inc., where she  was  responsible
for  all aspects of the general office administration as well  as
reception,   accounting   procedures,   customer   service    and
correspondence.

From  1990  to  1993, Ms. Hill was a manager at Regency  Business
Centres,  where she supervised the daily office services provided
to  20 companies leasing office space in the business center. She
reported  directly  to  the  CEO  and  President.  She  was  also
responsible for presenting the facilities to prospective  tenants
and negotiating leases.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities and Exchange Act of 1934, as
amended (the "Exchange Act"), requires that the Company's
officers and directors, and persons who own more than ten percent
(10%) of a registered class of the Company's equity securities,
file reports of ownership and changes of ownership with the SEC.
Officers, directors and greater than ten percent (10%)
shareholders are required by SEC regulation to furnish the
Company with copies of all such reports they file.

Based solely on its review of the copies of such reports received
by the Company, and on written representations by the Company's
officers and directors regarding their compliance with the
applicable reporting requirements under Section 16(a) of the
Exchange Act, the Company believes that, with respect to its
fiscal year ended December 31, 2001, the Company's officers and
directors and all of the persons known to the Company to own more
than ten percent (10%) of the Company's Common Stock, either
failed to file, on a timely basis, or have yet to file the
required beneficial ownership reports with the SEC.

ITEM 10.  EXECUTIVE COMPENSATION

None  of  the  Company's  officers and/or directors  receive  any
compensation  for  their  respective  services  rendered  to  the
Company,  nor have they received such compensation in  the  past.
They   both  have  agreed  to  act  without  compensation   until
authorized  by the Board of Directors, which is not  expected  to
occur until the Registrant has generated revenues from operations
after consummation of a merger or acquisition. As of the date  of
this  registration statement, the Company has no funds  available
to pay directors. Further, none of the directors are accruing any
compensation pursuant to any agreement with the Company.

It is possible that, after the Company successfully consummates a
merger  or  acquisition with an unaffiliated entity, that  entity
may  desire  to  employ  or retain one or  more  members  of  the
Company's  management for the purposes of providing  services  to
the surviving entity, or otherwise provide other compensation  to
such  persons. However, the Company has adopted a policy  whereby
the  offer  of  any post-transaction remuneration to  members  of
management will not be a consideration in the Company's  decision
to  undertake any proposed transaction. Each member of management
has  agreed  to disclose to the Company's Board of Directors  any
discussions concerning possible compensation to be paid  to  them
by  any entity which proposes to undertake a transaction with the
Company  and further, to abstain from voting on such transaction.
Therefore, as a practical matter, if each member of the Company's
Board  of Directors is offered compensation in any form from  any
prospective   merger  or  acquisition  candidate,  the   proposed
transaction  will  not  be approved by  the  Company's  Board  of
Directors but will be submitted to a vote of the shareholders  as
a  result of the inability of the Board to affirmatively  approve
such a transaction.

It  is possible that persons associated with management may refer
a  prospective merger or acquisition candidate to the Company. In
the  event the Company consummates a transaction with any  entity
referred by associates of management, it is possible that such an
associate will be compensated for their referral in the form of a
finder's  fee. It is anticipated that this fee will be either  in
the form of restricted common stock issued by the Company as part
of  the terms of the proposed transaction, or will be in the form
of  cash consideration. However, if such compensation is  in  the
form of cash, such payment will be tendered by the acquisition or
merger  candidate,  because  the Company  has  insufficient  cash
available.  The amount of such finder's fee cannot be  determined
as of the date of this registration statement, but is expected to
be   comparable   to   consideration  normally   paid   in   like
transactions. No member of management of the Company will receive
any  finders fee, either directly or indirectly, as a  result  of
their respective efforts to implement the Company's business plan
outlined herein. Persons "associated" with management is meant to
refer to persons with whom management may have had other business
dealings,  but  who  are  not affiliated  with  or  relatives  of
management.

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

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

The  following table sets forth each person known to the Company,
as  of  March 26, 2002, to be a beneficial owner of five  percent
(5%)  or  more  of the Company's common stock, by  the  Company's
directors individually, and by all of the Company's directors and
executive  officers as a group. Except as noted, each person  has
sole  voting  and  investment power with respect  to  the  shares
shown.

Title of   Name/Address             Shares        Percentage
Class      of Owner                 Beneficially  Ownership
                                    Owned

Common     Gord A. Carless (1)      20,000        0.10%
           1 Willow Dr.
           Aymler, Ontario N5H 3A8

Common     Total ownership of       20,000        0.10%
           Officers and Directors
           (1 individual)

(1)   Fern  Hill, the secretary, treasurer and director,  is  the
wife  of Gordon A. Carless. Therefore, she deemed to beneficially
own   20,000  shares,  representing  0.10%  of  the  issued   and
outstanding shares of common stock.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The  Board of Directors has passed a resolution which contains  a
policy  that the Company will not seek an acquisition  or  merger
with   any  entity  in  which  any  of  the  Company's  Officers,
Directors,   principal  shareholders  or  their   affiliates   or
associates  serve  as officer or director or hold  any  ownership
interest.  Management  is  not aware of any  circumstances  under
which this policy may be changed through their own initiative.

The  proposed  business activities described herein classify  the
Company  as  a  "blank check" company. Many states  have  enacted
statutes,  rules and regulations limiting the sale of  securities
of "blank check" companies in their respective jurisdictions.



          ITEM 13.  FINANCIAL STATEMENTS AND EXHIBITS.

FINANCIAL STATEMENTS
                                BACH-HAUSER, INC.
                          (A Development Stage Company)

                              FINANCIAL STATEMENTS

                                    CONTENTS

                                                               PAGE

INDEPENDENT AUDITORS' REPORT                                    1

BALANCE SHEETS                                                  2

STATEMENTS OF OPERATIONS                                        3

STATEMENT OF STOCKHOLDERS' DEFICIT                              4

STATEMENTS OF CASH FLOWS                                        5

NOTES TO FINANCIAL STATEMENTS                               6 - 9











                          INDEPENDENT AUDITORS' REPORT


TO THE BOARD OF DIRECTORS OF BACH-HAUSER, INC.:

We  have  audited  the  accompanying balance sheets of  Bach-Hauser,  Inc.  (A
Development  Stage Company) as of December 31, 2001 and 2000, and the  related
statements of operations, stockholders' deficit and cash flows for  the  years
then  ended, and for the period from October 10, 1995 (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 auditing  standards  generally
accepted  in the United States of America.   Those standards require  that  we
plan  and perform the audits 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.  We believe that  our
audits provide a reasonable basis for our opinion.

In  our opinion, the financial statements referred to above present fairly, in
all  material  respects,  the financial position of Bach-Hauser,  Inc.  as  of
December  31,  2001 and 2000, and the results of its operations and  its  cash
flows  for  the  years then ended, and for the period from  October  10,  1995
(inception)  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 discussed in  Note  1  of  the
accompanying  financial statements, the Company has no established  source  of
revenue,  which raises substantial doubt about its ability to  continue  as  a
going concern.  Management's plan in regard to these matters is also discussed
in  Note  1.   These financial statements do not include any adjustments  that
might result from the outcome of this uncertainty.




                         MERDINGER, FRUCHTER, ROSEN & CORSO, P.C.
                         Certified Public Accountants
New York, New York
April 3, 2002

                                BACH-HAUSER, INC.
                          (A Development Stage Company)
                                 BALANCE SHEETS





 <Table>
 
                                              <c>           <c>
                                                         December 31,
                                                        --------------
   ASSETS                                            2001            2000
 OTHER ASSETS                                      ---------      ---------
    Intangible Assets                              $    4,500        $   4,500
                                                   ----------       ----------
 TOTAL ASSETS                                      $    4,500        $   4,500
                                                   ==========       ==========



   LIABILITIES AND STOCKHOLDERS' DEFICIT

 CURRENT LIABILITIES
   Accrued expense                                 $    3,500     $          -
   Advances from officer                                1,075            1,075
                                                   ----------       ----------
      Total current liabilities                         4,575            1,075
                                                   ----------       ----------
 STOCKHOLDERS' DEFICIT:
   Common stock,  $.001 par value;
     25,000,000 shares authorized; 14,886,013
 and
     94,460,000 shares issued and outstanding          14,886           94,460
   Additional paid-in capital                      18,481,359       18,093,985
   Deficit accumulated during the development    (18,496,320)     (18,185,020)
 stage
                                                 ------------     ------------
      TOTAL STOCKHOLDERS' DEFICIT                        (75)            3,425
                                                 ------------     ------------
      TOTAL LIABILITIES AND STOCKHOLDERS'
        DEFICIT                                    $    4,500       $    4,500
                                                 ============     ============
 </Table>






The accompanying notes are an integral part of these financial statements

                                      - 2 -

                                BACH-HAUSER, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS

<Table>

                                        <c>                <c>              <c>
                                                                             For the Period
                                                   For the Year Ended         from October
                                                      December 31,              10, 1995
                                                                               (inception)
                                                  --------------------       to December 31,
                                                  2001             2000           2001
                                              -----------       ----------      ---------
Revenue                                            $     -           $     -       $      -

General, selling and administrative                311,300        18,177,945     18,946,320
expenses
                                               -----------     -------------  -------------
Loss before taxes                                (311,300)      (18,177,945)   (18,946,320)

Provision for income taxes                               -                 -              -
                                               -----------     -------------  -------------
Net loss                                       $ (311,300)     $(18,177,945)  $(18,946,320)
                                               ===========     =============  =============
Net loss per common share - basic and            $ ( 0.03)        $    (3.59      $  (3.99)
diluted
                                               ===========     =============  =============
Weighted average number of common
shares outstanding - basic and diluted          10,878,576         5,064,151      4,614,052
                                               ===========     =============  =============
</Table>






The accompanying notes are an integral part of these financial statements.

                                      - 3 -
                                BACH-HAUSER, INC.
                          (A Development Stage Company)
                       STATEMENT OF STOCKHOLDERS' DEFICIT
<Table>

                                         <c>                <c>           <c>             <c>                <c>
                                                                                               Deficit
                                                                                              Accumulated
                                                   Common Stock              Additional         During
                                                  --------------               Paid In        Development
                                              Shares           Amount          Capital           Stage           Total
                                            ----------        --------        ---------        ---------        --------
Balance at December 31, 1995                 30,000,000            $6,000              $-         $(6,000)             $-
Net income                                            -                 -               -                -              -
                                          -------------        ----------       ---------       ----------     ----------
Balance at December 31, 1996                 30,000,000             6,000               -          (6,000)              -
Net income                                            -                 -               -                -              -
                                          -------------        ----------       ---------       ----------     ----------
Balance at December 31, 1997                 30,000,000             6,000               -          (6,000)              -
Net loss                                              -                 -               -          (1,075)        (1,075)
                                          -------------        ----------       ---------       ----------     ----------
Balance at December 31, 1998                 30,000,000             6,000               -          (7,075)        (1,075)
Stock issued for intangibles                  9,000,000             4,500               -                -          4,500
Net income                                            -                 -               -                -              -
                                          -------------        ----------       ---------       ----------     ----------
Balance at December 31, 1999                 39,000,000            10,500               -          (7,075)          3,425
Adjustment to par value                               -            28,500        (28,500)                -              -
Issuance of shares for services, May 1          200,000               200          55,800                -         56,000
Issuance of shares for services, May 10         200,000               200          74,800                -         75,000
Issuance of shares for services, Sept. 1      1,050,000             1,050         282,450                -        283,500
Issuance of shares for services, Sept. 12       800,000               800         347,200                -        348,000
Issuance of shares for services, Sept. 15    16,000,000            16,000       7,824,000                -      7,840,000
Issuance of shares for services, Sept. 27       600,000               600         210,000                -        210,600
Issuance of shares for services, Oct. 2       2,800,000             2,800       1,033,200                -      1,036,000
Issuance of shares for services, Oct. 18     13,240,000            13,240       5,084,160                -      5,097,400
Issuance of shares for services, Nov. 6       2,200,000             2,200         547,800                -        550,000
Issuance of shares for services, Nov. 17     16,770,000            16,770       2,582,580                -      2,599,350
Issuance of shares for services, Dec. 15        800,000               800          39,200                -         40,000
Issuance of shares for services, Dec. 18        800,000               800          35,200                -         36,000
Expenses paid by shareholder                          -                 -           6,095                -          6,095
Net loss                                              -                 -               -     (18,177,945)   (18,177,945)
                                          -------------        ----------     -----------     ------------   ------------
Balance at December 31, 2000                 94,460,000            94,460      18,093,985     (18,185,020)          3,425
Issuance of shares for services, Jan. 2         250,000               250          13,000                -         13,250
Issuance of shares for services, Aug. 24        400,000               400          19,600                -         20,000
Issuance of shares for services, Aug. 28      2,015,000             2,015         139,035                -        141,050
Issuance of shares for services, Sept. 20       500,000               500          29,500                -         30,000
Expense paid by shareholder                           -                 -           1,500                -          1,500
Adjustment for 1 for 10 reverse split      (85,238,987)          (85,239)          85,239                -              -
Issuance of shares for services, Oct. 24        200,000               200           9,800                -         10,000
Issuance of shares for services, Oct. 31      2,300,000             2,300          89,700                -         92,000
Net loss                                              -                 -               -        (311,300)      (311,300)
                                          -------------        ----------    ------------   --------------     ----------
Balance, December 31, 2001                   14,886,013           $14,886     $18,481,359    $(18,496,320)          $(75)
                                          =============        ==========    ============   ==============     ==========

</Table>

The accompanying notes are an integral part of these financial statements.


                                      - 4 -



                                BACH-HAUSER, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS
<Table>

                                            <c>           <c>             <c>
                                                                             For the Period
                                                                               October 10,
                                                   For the Years Ended            1995
                                                       December 31,                to
                                                    -----------------         December 31,
                                                   2001           2000            2001
                                                 ---------     ----------     -----------
CASH FLOW FROM OPERATING ACTIVITIES:
   Net loss                                     $ (311,300)   $(18,177,945)   $(18,393,595)
   Stock based compensation                         306,300      18,171,850      18,376,150
   Expenses paid by shareholder                       1,500           6,095           7,595
   Increase in accrued expenses                       3,500                           2,775
   Increase in advances payable                           -               -           1,075
                                                -----------   -------------  --------------
   Net cash used in operating activities                  -               -         (6,000)

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
   Issuance of common stock for cash                      -               -           6,000
                                                -----------   -------------  --------------
NET CHANGE  IN CASH AND CASH EQUIVALENTS                  -               -               -

CASH AND CASH EQUIVALENTS
     - beginning of period                                -               -               -
                                                -----------   -------------  --------------
CASH AND CASH EQUIVALENTS
     - end of period                               $      -        $      -        $      -
                                                ===========   =============  ==============
SUPPLEMENTAL CASH FLOW INFORMATION:
     Cash paid during the year for -
Interest                                          $       -        $      -        $      -
                                                ===========   =============  ==============
Income taxes                                      $       -        $      -        $      -
                                                ===========   =============  ==============
</Table>

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCIAL ACTIVITIES:

During the year December 31, 2001:
     Common  stock  aggregating 5,440,000 shares was issued for services.   This
     stock has been valued at $306,300.

During the year ended December 31, 2000:
    Common  stock  totaling 5,546,000 shares were issued to for services.   This
    stock has been valued at $18,171,850.

The accompanying notes are an integral part of these financial statements.


                                      - 5 -


                             BACH-HAUSER, INC.
                       (A Development Stage Company)
                       NOTES TO FINANCIAL STATEMENTS
                        DECEMBER 31, 2001 AND 2000


 NOTE 1 - DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

           Nature of Operations
           Bach-Hauser,  Inc. (the "Company") is currently a  development
           stage  company under the provisions of Statement of  Financial
           Accounting   Standards  ("SFAS")  No.  7.   The  Company   was
           incorporated under the laws of the State of Nevada on  October
           10, 1995.

           Basis of Presentation
           The  accompanying financial statements have been  prepared  in
           conformity  with  generally  accepted  accounting  principles,
           which  contemplate  continuation of the  Company  as  a  going
           concern.   However, the Company has no established  source  of
           revenue.   This  factor  raises substantial  doubt  about  the
           Company's  ability  to continue as a going  concern.   Without
           realization  of additional capital, it would be  unlikely  for
           the  Company  to continue as a going concern.   The  financial
           statements  do  not include any adjustments  relating  to  the
           recoverability  and classification of recorded asset  amounts,
           or  amounts  and classification of liabilities that  might  be
           necessary  should  the  Company  be  unable  to  continue   in
           existence.

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

           Cash and Cash Equivalents
           The  Company considers all highly liquid investments purchased
           with  original maturities of three months or less to  be  cash
           equivalents.

           Long-lived Assets
           Long-lived  assets are reviewed for impairment whenever  events
           or  changes in circumstances indicate that the related carrying
           amount  may not be recoverable.  Recovery of assets to be  held
           and used is measured by a comparison of the carrying amount  of
           the  assets  to  the  future  net cash  flows  expected  to  be
           generated  by the asset.  If such assets are considered  to  be
           impaired,  the impairment to be recognized is measured  by  the
           amount  by which the carrying amount of the assets exceeds  the
           fair  value  of  the  assets.  Assets to  be  disposed  of  are
           reported at the lower of the carrying amount or fair value less
           the cost to sell.

           Income Taxes
           Income taxes are provided for based on the liability method of
           accounting  pursuant to SFAS No. 109, "Accounting  for  Income
           Taxes".   Deferred  income  taxes, if  any,  are  recorded  to
           reflect  the  tax consequences on future years of  differences
           between  the  tax  bases of assets and liabilities  and  their
           financial reporting amounts at each year-end.


                                   - 6 -


                             BACH-HAUSER, INC.
                       (A Development Stage Company)
                       NOTES TO FINANCIAL STATEMENTS
                        DECEMBER 31, 2001 AND 2000


 NOTE 1 -  DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
          (Continued)

           Loss Per Share
           During  1998, the Company adopted SFAS No. 128, "Earnings  Per
           Share,"  which requires presentation of basic loss  per  share
           ("Basic LPS") and diluted loss per share ("Diluted LPS").  The
           computation  of  Basic  LPS  is  computed  by  dividing   loss
           available  to  common  stockholders by  the  weighted  average
           number   of  outstanding  common  shares  during  the  period.
           Diluted  LPS  gives  effect  to all diluted  potential  common
           shares  outstanding  during the period.   The  computation  of
           Diluted LPS does not assume conversion, exercise or contingent
           exercise of securities that would have an antidilutive  effect
           on earnings.

           On April 24, 2000, the Company effected a 2 for 1 stock split.
           All  share  and  per share amounts presented in the  financial
           statements give retroactive effect to this stock split.

           Comprehensive Income
           SFAS  No.  130  establishes standards for  the  reporting  and
           display  of  comprehensive income and its  components  in  the
           financial  statements.  As of December 31, 2001 and 2000,  and
           for  the  period from October 10, 1995 (inception) to December
           31,   2000,   the   Company  has  no  items   that   represent
           comprehensive  income  and,  therefore,  has  not  included  a
           schedule of comprehensive income in the accompanying financial
           statements.

NOTE 2 -   RELATED PARTY TRANSACTIONS

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

           During  1998,  an officer advanced the Company  funds  in  the
           amount  of $1,075.  These funds were used in operations.   The
           advance  due the stockholder bears no interest and is  payable
           upon demand.








                                   - 7 -


                        BACH-HAUSER, INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2001 AND 2000

NOTE 3 -   INCOME TAXES

           The  reconciliation of the effective income  tax  rate
           to the federal statutory rate is as follows:

                                                           For the
                                                         Period from
                                                        October 10, 1995
                                                          (inception)
                                   December 31,         to December 31,
                                  --------------
                                2001          2000          2001
                              ---------     ---------    ----------
 Federal Income Tax Rate          34.00%        34.00%         34.00%
 Effect of Valuation            (34.00)%      (34.00)%       (34.00)%
 Allowance
                              ----------    ---------       ---------
 Effective Income Tax Rate         0.00%        0.00%           0.00%
                              ==========    =========       =========

           At  December  31, 2001 and 2000, the Company  had  net
           carryforward  losses of $18,496,320  and  $18,185,020.
           Because  of  the current uncertainty of realizing  the
           benefits   of   the  tax  carryforward,  a   valuation
           allowance  equal  to  the tax  benefits  for  deferred
           taxes  has been established.  The full realization  of
           the  tax  benefit  associated  with  the  carryforward
           depends  predominantly upon the Company's  ability  to
           generate   taxable  income  during  the   carryforward
           period.

           Deferred  tax assets and liabilities reflect  the  net
           effect  of temporary differences between the  carrying
           amounts   of  assets  and  liabilities  for  financial
           reporting  purposes and amounts used  for  income  tax
           purposes.   Significant components  of  the  Company's
           deferred tax assets and liabilities are as follows:

                                               December 31,
                                              --------------
                                           2001            2000
                                        ----------      ---------
  Net operating loss carry forward      $ 6,290,000       $ 6,183,000
  Valuation allowance                   (6,290,000)       (6,183,000)
                                       ------------     -------------
  Net deferred tax asset               $          -      $          -
                                       ============     =============

          Net operating loss carryforwards expire in 2016.

NOTE 4 -  INTANGIBLE ASSETS

           Intangible assets consist of property rights.   This
           asset  has  not  been  placed  in  service  and   no
           amortization has been recorded.

NOTE 5 -  SUBSEQUENT EVENTS

           On January 28, 20002, the board of directors of Bach-
           Hauser  Inc.  reserved  an  aggregate  of  4,720,000
           shares  of  common stock to be issued to consultants
           and attorneys.


                              - 8 -

EXHIBITS

     3.1      Articles   of   Incorporation   (incorporated    by
               reference  to the Registration Statement  on  Form
               SB-2  filed  with  the Commission  on  August  13,
               1999).

     3.2      By-laws   of   the   Registrant  (incorporated   by
               reference  to the Registration Statement  on  Form
               SB-2  filed  with  the Commission  on  August  13,
               1999).

                           SIGNATURES

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



                           Bach-Hauser, Inc.



                           By:/s/ Peter Preston
                              Peter Preston, President



                           Date: April 17, 2002