UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-KSB

              ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

FOR THE  YEAR  ENDED  DECEMBER  31, 2001     COMMISSION FILE NUMBER:  333-85011

                                   STRATABASE
               (Name  of  small  business  issuer  in  its  charter)

     NEVADA                                                    88-0414964
(State  or other jurisdiction of incorporation              (I.R.S. Employer
          or organization)                                  Identification  No.)

     34595  3RD  AVE.,  SUITE  101
     ABBOTSFORD,  BC,  CANADA                           V2S.8B7
     (Address  of  principal  executive  offices)     (Zip  Code)

     ISSUER'S  TELEPHONE  NUMBER,  INCLUDING  AREA  CODE:  (604)  504-5811

     SECURITIES  REGISTERED  UNDER  SECTION  12(B)  OF  THE  EXCHANGE  ACT:

                                     None

     SECURITIES  REGISTERED  UNDER  SECTION  12(G)  OF  THE  EXCHANGE  ACT:

                 Common  Stock,  par  value  $.001  per  share
                               (Title  of  Class)

     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the past 12 months (or for such
shorter  period  that the registrant was required to file such reports), and (2)
has  been  subject  to  such  filing  requirements  for  the  past  90  days.
          Yes     [  X  ]     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-K
or  any  amendment  to  this  Form  10-KSB.   [   ]

     The  issuer's  revenues  for  its  most recent fiscal year were $2,360,452.

     Based  on the closing sales price of the Common Stock on March 1, 2002, the
aggregate  market value of the voting stock of registrant held by non-affiliates
was  $4,818,580.

     The  registrant  has  one  class  of  Common  Stock  with  7,718,372 shares
outstanding  as  of  March  1,  2002.

     The  registrant has one class of Preferred Stock with no shares outstanding
as  of  March  1,  2002.

                   DOCUMENTS INCORPORATED BY REFERENCE:  NONE

     Transitional  Small Business Issuer Disclosure Format (check one):  YES [ ]
NO  [X].

<PAGE>

                                   STRATABASE
                                TABLE OF CONTENTS

                                                                            PAGE


PART  I                                                                        1
     Item  1.     Description  of  Business                                    1
     Item  2.     Description  of  Property                                    4
     Item  3.     Legal  Proceedings                                           5
     Item  4.     Submission  of  Matters  to  a  Vote of Security Holders     5

PART  II                                                                       5
     Item  5.     Market for Common Equity and Related Stockholder Matters     5
     Item  6.     Management's Discussion and Analysis or Plan of Operation    6
     Item  7.     Financial  Statements                                       10
     Item 8.      Changes in and Disagreements with Accountants on
                  Accounting and Financial  Disclosure                        10

PART  III                                                                     10
     Item  9.     Directors, Executive Officers, Promoters and Control
                  Persons; Compliance with  Section  16(a)  of  the
                  Exchange  Act                                               10
     Item 10.     Executive  Compensation                                     11
     Item 11.     Security Ownership of Certain Beneficial Owners and
                  Management                                                  12
     Item  12.    Certain  Relationships  and  Related  Transactions          14
     Item  13.    Exhibits  and  Reports  on  Form  8-K                       15

<PAGE>
                                     PART I
                                    -------

ITEM  1.  DESCRIPTION  OF  BUSINESS
-----------------------------------

Stratabase  develops  Customer  Relationship  Management  (CRM) software for its
clients  and  for  general  distribution,  and  also  sells  systems integration
solutions  to  enterprises.

Our  revenue  has  been  from  CRM  services to our clients and the provision of
systems  integration  solutions.  Our  main  software  product to date is called
"Relata".

Our  CRM  software  is  designed  to  allow  enterprises to conduct relationship
management  through  the  use  of our sales force automation and email-marketing
automation  software  modules. These solutions allow enterprises to manage sales
relationships  and  contacts,  automate  forecasting  and  the sales opportunity
pipeline,  conduct  mass-customized  communications,  and  track  and  manage
large-scale  custom  marketing  campaigns.  Our  solutions  also  allow users to
synchronize  their  data  with  their  portable  computing  devices.

Much  of  the  source  code  of  the  software  we  develop  is  open and freely
distributed, and available over the Internet to anyone who wants to download it.
However,  we  have also been developing proprietary software for which we intend
to  keep  the  source  code  protected.

Stratabase  was  incorporated  under the laws of the State of Nevada on November
18, 1998 and commenced operations in January 1999. For the period from inception
to  December  31, 1999, we operated in the development stage.  Substantially all
activity  during  this  period through 1999 was devoted to the raising of equity
capital and development of our long-term business model, up until the completion
of our initial public offering in February 2000. Our headquarters are located at
34595  3rd  Avenue,  Suite  101,  Abbotsford, BC, V2S.8B7, Canada. The telephone
number  is  (604)  504-5811.

OVERVIEW  OF  THE  CRM  INDUSTRY

Over  the  last  decade  a  software-category  has  developed  known as Customer
Relationship  Management  (CRM).  CRM  software  applications  facilitate
communications  between  businesses  and  customers.  The  Customer Relationship
Management  market  is  large, and is currently valued at $13.5 billion in North
America  and  is  projected  to  grow to $27.8 billion in 2005, according to the
Aberdeen  Group. The Aberdeen Group is an information technology market analysis
firm  and  was founded in 1988. Several other research and analysis firms in the
information  technology  sector  are  also  projecting  continued  growth in the
Customer  Relationship  Management  category,  including  the  Gartner Group and
International  Data  Group (IDG). IDG is a technology media and research company
that was founded in 1964. The Gartner Group is a research and advisory firm that
was  founded  in  1979.

Some  Customer  Relationship Management software is designed for a specific area
of  need  known  as  sales  force automation. Other CRM software is designed for
customer support. Still other CRM software is designed to improve the efficiency
of  marketing  communications.  In  fact, there are several subcategories of CRM
software,  all  of  which  in  various ways support the efforts of businesses to
communicate  with  their  customers.

Large  vendors  of  CRM  software  such  as Siebel Systems have attempted to add
Internet  functionality  to their existing product lines. Simultaneously, dozens
of new companies have emerged which have created new CRM software solutions with
more  support  for  Internet  based communications. The number of CRM vendors is
loosely  estimated  at  several  hundred  competitors.




<PAGE>

THE  STRATABASE  SOLUTION

We  engineer  what  we believe to be advanced web-based CRM software, focused on
the  provision of sales force automation and email marketing automation. We have
also  developed  software  which  synchronizes  data  between portable computing
devices  and  our  main  software  application,  "Relata".

THE  CRM  SOFTWARE  WE  HAVE  DEVELOPED  IS:

-    flexible  and  scalable--capable  of managing and conducting communications
     with  millions  of  customers  and  prospects;
-    functional--able  to  handle  many  users;
-    adaptable--allowing  the  user  to  modify  the software to meet particular
     needs  and  requirements;  and
-    reliable--constantly  monitored  and  improved  by  our  engineers

In  addition  to offering technically advanced software, we provide users of the
CRM  software we have developed with extensive written documentation and limited
installation  support.  Our  technical  team  has  prepared  manuals  and  other
documentation  that  accurately  and clearly describes the many features of this
software  and  advises  the  user  on  how  best to implement these features. In
addition,  we  make  the  software  available  to  users  via  download from the
Internet.

PROFESSIONAL  SERVICES

We  offer a limited range of services relating to the development and use of the
CRM  software  we  have created. While these services include technical support,
custom  development,  and consulting, the primary source of our revenue has been
in  the provision of web-based CRM services for our clients. We bill our clients
on  a  project  basis  as  opposed  to  an  hourly  basis.

STRATEGY

Our  objective  is  to enhance our position as a leading worldwide developer and
provider  of  advanced  CRM software and services, both via traditional channels
and  the  Internet.  The  key  elements  of  our  strategy  are:


-     EXPAND  CRM-RELATED  SERVICE  CAPABILITIES

We  believe that we must expand our CRM-related services capabilities to address
the  market  need  for effective CRM solutions. We believe that we must increase
our  capacity  to  offer  these  solutions  if  we  are  to be able to establish
ourselves  as  a  premier  CRM  software  provider.

-     CONTINUE  TO  INVEST  IN  THE  DEVELOPMENT  OF  CRM  SOFTWARE

We  intend to continue to invest significant resources in the development of our
CRM  software. We expect this continued investment to take the form of increased
expenditures  on  internal  development  efforts.  We expect that, through these
efforts, we will foster the advancement of our CRM software, thereby allowing us
to  provide  more  effective  CRM-related solutions to our partners and clients.





<PAGE>

-     IN  ORDER  TO  EXPAND OUR CRM-RELATED SERVICE CAPABILITIES AND DEVELOP OUR
CRM  SOFTWARE,  WE  INTEND  TO:

     -increase  the  size  of  our  sales  force
     -increase  the  number  of  software  programmers  we  employ
     -increase  our  marketing  expenditures
     -expand  our  product  and  service  line

COMPETITION

In  the broader market for proprietary CRM software, there are a large number of
well-established  companies that have significantly greater financial resources,
larger  development  staffs  and  more  extensive  marketing  and  distribution
capabilities  than we do. These competitors include Siebel Systems, SAP, Oracle,
Pivotal  and  Onyx  and  even Peoplesoft and Nortel, now that they have acquired
leading  CRM  vendors.

In  the  newer and rapidly evolving open source CRM software arena, we are aware
of  no  other  public companies that provide open source CRM software solutions.

Many  of  our  competitors  are well positioned vendors who have established and
stable  customer  bases and continue to attract new customers. Some of them also
provide  CRM-related  services to users of CRM software. Most of these companies
are  larger and more experienced organizations than we are. In addition, we face
potential  competition  from  many companies with larger customer bases, greater
financial  resources  and  stronger  name  recognition  than  we  have.

Software  markets  are not always characterized by traditional barriers to entry
that  are  found  in many traditional markets. This is even more so the case for
open  source  software. Anyone can copy, modify and redistribute the open source
software. Accordingly, new competitors or alliances among competitors can emerge
and  rapidly  acquire  significant  market  share.

We  believe  that  the major factors affecting the competitive landscape for our
software  and  related  services  include:

-  name  and  reputation  of  software  and  service  provider;
-  product  performance  and  functionality;
-  strength  of  relationships  in  the  open  source  community;
-  availability  of  user  applications;
-  ease  of  use;
-  networking  capability;
-  breadth  of  hardware  compatibility;
-  quality  of  related  services;
-  distribution  strength;  and
-  alliances  with  industry  partners.

Although  we believe that we compete favorably with many of our competitors in a
number  of respects, including product performance and functionality, we believe
that many of our competitors enjoy greater name recognition, have software which
covers  far  more  aspects of Customer Relationship Management than our software
does,  have  superior distribution capabilities and offer more extensive support
services  than  we  currently  do.  In  addition,  there  are significantly more
applications  available for competing CRM software solutions, than there are for
ours.  An  integral  part  of  our  strategy  in the near future, however, is to
address  these  shortcomings  by, among other things, strengthening our existing
business  relationships  and  entering into new ones in an effort to enhance our
name  recognition;  adding  more  programmers internally to improve the software
more  rapidly; providing more CRM-related services to our clients that have high
associated  margins;  and,  enhancing  the  software's  functionality.


<PAGE>

INTELLECTUAL  PROPERTY

The  CRM  software we have developed falls into two categories: open source, and
proprietary.

The  open  source  CRM  software  we  have developed has been made available for
licensing  under the GNU General Public License (GPL), pursuant to which anyone,
generally,  may  copy,  modify  and distribute the software, subject only to the
restriction  that  any  resulting  or  derivative  work is made available to the
public under the same terms. Therefore, although we retain the copyrights to the
code that we develop ourselves, due to the GPL and the open source nature of our
software,  the  intellectual  property  contained  within  the software does not
belong  to  us,  nor to anyone else. That is the nature of open source software.
However,  we do enter into confidentiality and nondisclosure agreements with our
employees  and  consultants.

Unlike our open source software, our proprietary software is not yet distributed
to  the  general  public.

We  are  pursuing  registration of some of our trademarks in the U.S. However we
may  be  unable  to detect the unauthorized use of, or take appropriate steps to
enforce,  our  trademark rights. Although we have begun the registration process
of  our  trademarks in the U.S., it is not yet complete. Additionally, we do not
have  any assurances that the trademark applications will be successful. Failure
to  adequately  protect  our  trademark  rights  could  harm or even destroy the
Stratabase  brand  and  impair  our ability to compete effectively. Furthermore,
defending  or  enforcing our trademark rights could result in the expenditure of
significant financial and managerial resources, which could materially adversely
affect  our  business,  operating  results  and  financial  condition.

Although  we  do  not believe that our business infringes on the rights of third
parties,  there  can  be  no  assurance  that  third  parties  will  not  assert
infringement claims against us in the future or that any such assertion will not
result  in  costly  litigation  or require us to obtain a license to third party
intellectual  rights.  In addition, there can be no assurance that such licenses
will  be  available  on  reasonable terms or at all, which could have a material
adverse  effect  on  our  business,  operating  results and financial condition.

EMPLOYEES

As of March 15, 2002, we had 8 employees, including our two officers, Mr. Trevor
Newton,  Chairman of the Board, President, Secretary, Treasurer and CEO, and Mr.
Fred  Coombes,  Vice  President  of  Corporate  Development and a Director.  Mr.
Newton  supervises  all  aspects  of  the  company including sales and technical
development.  It  is anticipated that we will need to add additional managerial,
sales,  technical and administrative staff in the future in order to realize our
business  objectives.

OUR  EQUIPMENT  AND  PRIMARY  AGREEMENTS

We lease a Bandwidth/Connectivity (fiber optic line) from BCTel/Telus. It is the
subject of a three-year agreement which commenced on February 1, 2001, and calls
for  a  monthly  fee  of  $1,000.

Additionally,  we  pay  an annual premium of approximately $1,500 for a one year
term  comprehensive  general  liability  insurance  policy  with  the  following
coverages:  (i)  general liability - $1,400,000; (ii) database - $150,000; (iii)
hardware  -  $125,000;  and,  (iv)  Flood/Earthquake  -  $185,000.  (Figures are
converted  from  Canadian  dollars).

ITEM  2.  DESCRIPTION  OF  PROPERTY
-----------------------------------

We  do  not  own  any real property. Our primary offices are approximately 2,000
square  feet  located  at  34595  3rd  Avenue,  #101, Abbotsford, B.C., V2S.8B7,
Canada.  The office is leased for a two-year lease that commenced on February 1,
2001.  The  monthly  rent is approximately $1,000. We also lease office space in
Vancouver,  British Columbia. The office space is leased at $750 per month under
a one year lease agreement that commenced on March 27, 2001. We believe that the
facilities  will  be adequate for the foreseeable future. All costs described in
this  section  are  stated  in  U.S. dollars as converted from Canadian dollars.
Accordingly,  the costs may vary to some degree with the currency exchange rate.


<PAGE>
ITEM  3.  LEGAL  PROCEEDINGS
----------------------------

We  are not involved in any material pending litigation, nor are we aware of any
material  pending or contemplated proceedings against us. We know of no material
legal proceedings pending or threatened, or judgments entered against any of our
Directors  or  Officers  in  their  capacity  as  such.

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

No matters were submitted to a vote of security holders during the quarter ended
December  31,  2001.

                                  PART  II
                                  --------

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

In  July  2000  our  common stock began trading on the Nasdaq Stock Market, Inc.
Over the Counter Bulletin Board under the symbol "SBSF.OB". Prior to that, there
was  no market for the Common Stock. The following table sets forth the range of
high and low bid prices of the Company's Common Stock for the quarters indicated
through  the  fourth  quarter  of  2001  and  2000,  respectively:

Calendar  Year          High  Bid     Low  Bid
--------------          ---------     --------

2001:
-----

First  quarter           $1.84         $0.75
Second  quarter          $2.50         $0.63
Third  quarter           $2.50         $1.01
Fourth  quarter          $2.00         $1.20

2000:
-----

First  quarter             N/A           N/A
Second  quarter            N/A           N/A
Third  quarter           $3.00        $1.375
Fourth  quarter         $1.875         $0.75

The  quotations  reflect inter-dealer prices, without retail markups, markdowns,
or  commissions  and  do  not  necessarily  represent  actual transactions.  The
quotations  were  derived  from the National Quotation Bureau OTC Market Report.
The  Company estimates that as of March 01, 2002 there were approximately 200 to
500  holders of record of the Common Stock.  As of March 1, 2002, there had been
no  dividends  declared  on  the  Company's  Common  Stock.

OUR  TRANSFER  AND  WARRANT  AGENT

We  have  appointed  Securities  Transfer  Corp.,  with  offices  at 2591 Dallas
Parkway,  Suite  102, Frisco, TX 75034, (469)633-0101, as transfer agent for our
shares  of  common stock and warrants. The transfer agent is responsible for all
record-keeping  and  administrative  functions in connection with the common and
preferred  shares  of  stock.


<PAGE>

DIVIDEND  POLICY

We  have never declared or paid any cash dividends on our common stock nor do we
anticipate  paying  any  in  the  foreseeable  future. Furthermore, we expect to
retain  any future earnings to finance our operations and expansion. The payment
of  cash  dividends  in  the  future  will  be at the discretion of our Board of
Directors  and  will  depend upon our earnings levels, capital requirements, any
restrictive  loan  covenants  and  other  factors  the Board considers relevant.

RECENT  SALES  OF  UNREGISTERED  SECURITIES

The  Company  did  not  offer  for  sale  or sell any securities during the last
quarter  of  2001.

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

SPECIAL  NOTE  REGARDING  FORWARD  LOOKING  STATEMENTS

The matters discussed in this section and in certain other sections of this Form
10-KSB  contain  forward-looking statements within the meaning of Section 21D of
the  Securities  Exchange  Act  of  1934,  as  amended,  and  Section 27A of the
Securities  Act  of  1933, as amended, that involve risks and uncertainties. All
statements other than statements of historical information provided herein maybe
deemed  to  be  forward-looking  statements. Without limiting the foregoing, the
words  "may",  "will",  "could",  "should",  "intends",  "thinks",  "believes",
"anticipates",  "estimates",  "plans",  "expects", or the negative of such terms
and  similar  expressions are intended to identify assumptions and uncertainties
which  could  cause  actual results to differ materially from those expressed in
them.  Any  forward-looking  statements  are  qualified  in  their  entirety  by
reference  to  the  factors  discussed  throughout  this  report.  The following
cautionary  statements identify important factors that could cause the Company's
actual  results to differ materially from those projected in the forward-looking
statements made in this Report. Among the key factors that have a direct bearing
on  the  Company's  results  of  operations  are:

-    General  economic  and  business  conditions;  the  existence or absence of
     adverse  publicity;  changes  in,  or  failure  to  comply with, government
     regulations;  changes  in  marketing  and technology; changes in political,
     social  and  economic  conditions;

-    Increased  competition  in the Internet; Internet capacity; general risk of
     the  Internet.

-    Success  of  operating  initiatives;  changes  in  business  strategy  or
     development  plans;  management  of  growth;

-    Availability,  terms  and  deployment  of  capital;

-    Costs  and  other  effects  of  legal  and  administrative  proceedings;

-    Dependence  on  senior  management;  business  abilities  and  judgment  of
     personnel;  availability of qualified personnel; labor and employee benefit
     costs;

-    Development  risks;  risks  relating  to the availability of financing, and

-    Other  factors  referenced  in  this  Report.

Because  the  risks  factors  referred  to  above  could cause actual results or
outcome  to  differ  materially  from  those  expressed  in  any forward-looking
statements  made by the Company, you should not place undue reliance on any such
forward-looking  statements. Other factors may be described from time to time in
the  Company's  other  filings with the Securities and Exchange Commission, news
releases and other communications. Further, any forward-looking statement speaks
only as of the date on which it is made and the Company undertakes no obligation
to  update  any  forward-looking  statement  or  statements to reflect events or
circumstances  after  the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to time, and it
is  not  possible  for the Company to predict which will arise. In addition, the
Company cannot assess the impact of each factor on the Company's business or the
extent  to which any factor, or combination of factors, may cause actual results
to  differ  materially  from  those contained in any forward-looking statements.


<PAGE>
Subsequent  written  and  oral  forward-looking  statements  attributable to the
Company  or  persons  acting  on  its  behalf  are  expressly qualified in their
entirety by the cautionary statements set forth above and contained elsewhere in
this  Annual  Report  on  Form  10-KSB.

OVERVIEW

Item  1.  Description  of  Business

We  develop  Customer Relationship Management (CRM) software for our clients and
for  general  distribution,  and  also  sells  systems  integration solutions to
enterprises.

Our  revenue  has  been  from  CRM  services to our clients and the provision of
systems  integration  solutions.  Our  main  software  product to date is called
"Relata".

Our  CRM  software  is  designed  to  allow  enterprises to conduct relationship
management  through  the  use  of our sales force automation and email-marketing
automation  software  modules. These solutions allow enterprises to manage sales
relationships  and  contacts,  automate  forecasting  and  the sales opportunity
pipeline,  conduct  mass-customized  communications,  and  track  and  manage
large-scale  custom  marketing  campaigns.  Our  solutions  also  allow users to
synchronize  their  data  with  their  portable  computing  devices.

Much  of  the  source  code  of  the  software  we  develop  is  open and freely
distributed, and available over the Internet to anyone who wants to download it.
However,  we  have also been developing proprietary software for which we intend
to  keep  the  source  code  protected.

Our  hardware  solutions  have  been expanded through our relationships with the
following  companies  with  whom we have authorizations: Intel, Western Digital,
Maxtor,  Microsoft,  Viewsonic,  Adaptec,  3COM,  AMD,  Cisco,  Acer, Corel, and
Hewlett-Packard.

Should  we be able to generate sufficient liquidity to fund continued expansion,
we  intend  to:

-  increase  the  size  of  our  salesforce
-  increase  the  number  of  software  programmers  we  employ
-  increase  our  marketing  expenditures
-  expand  our  product  and  service  line

People  and  businesses who are interested in using or testing our software come
to  our software website (www.relata.org) to download (acquire) our software, to
read  documentation  that  can  help them understand the software better, and to
submit  questions  to  our technical support staff. That portion of our software
which  is  open source carries no licensing fees, and so it is free to download.
To  quantify  the  demand  for  our  software,  two  metrics  we  use  are:

(a)      the  number  of  downloads  per  month
(b)      the  number  of  distinct individuals accessing the Relata website each
month

The  first  measurement tells us how many people downloaded our software in each
month.  The  second  measurement  tells  us  how  many people came to the Relata
website  each  month  to  read our software documentation or to submit technical
questions to our staff or to simply acquire more software. The two measurements,
while  different  from  each  other,  are  highly  correlated,  and tend to vary
positively  with  each  other.  We  have  noticed  a  steady  increase  in  both
measurements  during  the past year. Download and distinct user session data has
been  tracked  by  the  Company  since  June  2001  and  is  as  follows:


<PAGE>
                                       DISTINCT USER
     MONTH           DOWNLOADS           SESSIONS
------------------------------------------------------------------

Jun  2001             563                   1,941
Jul  2001             714                   2,177
Aug  2001             721                   1,720
Sep  2001           1,384                   3,044
Oct  2001           1,673                   3,357
Nov  2001           1,307                   2,706
Dec  2001           1,716                   2,550
Jan  2002           2,023                   3,853
Feb  2002           2,727                   3,543

The  Company  is  actively  supporting  and  enhancing  the  software, which has
resulted  in  increased  downloads  and distinct user sessions. The software has
also  generated  increased  interest  from users through the Company's marketing
efforts,  as  well  as  the  positive  feedback  on  websites  which discuss new
software.

The  technology  on which our software is built is also open source.  The source
code itself is written in open-source programming languages.  It is designed for
use  over  the  Internet,  and  is  accessible  through  a standard web browser.
Stratabase  was  incorporated  under the laws of the State of Nevada on November
18,  1998,  and commenced operations in January 1999. Our offices are located at
34595  3rd  Avenue,  Suite  101,  Abbotsford, BC, V2S.8B7, Canada. The telephone
number  is  (604)  504-5811.

RESULTS  OF  OPERATIONS

REVENUES

Revenues  for  the  twelve  months  ended  December  31,  2001, were $2,360,452,
compared to revenues of $1,313,579 for the same period in 2000. Revenues for the
three  months  ended December 31, 2001, were $1,456,067, compared to revenues of
$668,348  for  the  three  months  ended  for the same period in 2000.  In 2001,
revenue  attributable  to  systems  integration  and  hardware  sales  was  only
$113,822.  The increase in fiscal 2001 revenues over fiscal 2000 is attributable
to  management's  focus  on  obtaining larger CRM service engagements, which are
billed  on  a  project basis. Revenues for the Company have been highly variable
from  quarter  to  quarter  due  to the volatility of the information technology
sector,  which  affects  our revenues to a significant degree.  The Company also
recognized  $154,000  as a gain on the sale of marketable securities received in
exchange  for  services rendered in 2001.  The gain is reported as part of other
income  and  is  considered  nonrecurring.

OPERATING  EXPENSES

Operating  expenses  for  the  twelve  months  ended  December  31,  2001,  were
$1,607,102  of  which $1,185,968 consisted of marketing expenses (these expenses
were  incurred to increase our database-marketing related revenues); $307,897 of
operating  expenses  consisted  of  wages to execute the CRM services, and sales
commissions  paid  to  obtain  the  engagements; $100,908 was for hardware costs
incurred  on  sales  for  our systems integration solutions; and $12,329 of such
expenses  consisted  of  Internet  connectivity costs. This is a change from the
$1,060,311  of  operating  expenses incurred for the same period in 2000. As our
sales  continue  to  be  built  out  and  demand  for  our services and products
strengthen,  each  of  the foregoing costs are expected to continue to increase.

<PAGE>

GENERAL  AND  ADMINISTRATIVE  EXPENSES

General  and  Administrative  (G&A)  expenses  for the twelve month period ended
December  31,  2001, were $441,571 of which $96,000 consisted of management fees
to  our  President  and  to  our  Vice  President;  $83,183  consisted of legal,
accounting,  and  consulting  fees;  a  substantial  portion  of  these fees are
incurred  because  we  are  a  public company. For the twelve month period ended
December  31,  2000,  G&A  expenses  totaled  $357,483, of which $96,000 was for
management  fees  paid  to our President and Vice President, and $93,459 was for
legal,  accounting,  and  consulting  fees.

LIQUIDITY  AND  CAPITAL  RESOURCES

As  of  December  31,  2001,  we  had  $1,265,457  in cash and cash equivalents.
Although  we  have  reported  positive  net  income for fiscal 2001, losses from
operations  may  occur  in  the  future  as  we  continue  to grow the business.

The  Company has no long-term debt. Management believes that its available cash,
together  with  operating  revenues,  will  be  sufficient to fund the Company's
working  capital  requirements. The Company's management further believes it has
and  can  generate  sufficient liquidity through internal cash flow to implement
its  expansion activities. The Company has no long-term employment contracts and
can  reduce  its  work  force,  as  necessary, if revenues are not sufficient to
support  its  existing  operations.

In  addition,  the  Company may raise additional capital to fund expansion, take
advantage  of acquisition opportunities, develop or enhance services, or respond
to  competitive  pressures.  We  cannot  be certain that any required additional
financing  will  be  available on terms favorable to us. If additional funds are
raised by the issuance of our equity securities, then existing stockholders will
experience  dilution  of  their  ownership  interest.

If  additional  funds  are  raised  by  the  issuance  of  debt  or other equity
instruments,  we  may  be  subject to certain limitations in our operations, and
issuance of such securities may have rights senior to those of the then existing
holders of common stock. If adequate funds are not available or not available on
acceptable  terms,  we  may  be  unable  to  fund  expansion, develop or enhance
services  or  respond  to  competitive  pressures.

SHARE  CAPITAL

We  are  currently  authorized to issue 25,000,000 shares of common stock. As of
today,  we  have  issued,  7,718.372 shares of common stock, for a total capital
contribution  of  $1,001,709.

 The  company's  Class  A  Warrants, which were exercisable at $1.00, expired on
January  7,  2001. These warrants were part of the initial public offering units
which  consisted  of  one share of Common Stock, on Class A Warrant, one Class B
Warrant and one Class C Warrant. The Class B Warrants and Class C Warrants, were
exercisable  for  one share of Common Stock at $3 and $5, respectively.  In July
2001  warrant  holders  of  the  Class  B  and C Warrants were notified that the
expiration  date  of  their  warrants  would  extended  to  January 7, 2002. The
warrants  were allowed to expire on January 7, 2002, at which time no Class B or
C  Warrants  had  been  exercised.

Each  share  of  our  common  stock  has  equal, noncumulative voting rights and
participates  equally in dividends, if any. The common stock has no sinking fund
provisions  applicable  to  it.  The shares are fully paid for and nonassessable
when  issued.  In  addition, we have issued an aggregate of 1,750,000 options to
purchase our common stock at a price range of $.50 - $1.45 per share pursuant to
our  2000  Stock Incentive Plan, consisting of a share purchase plan and a share
option  plan, of which 1,050,000 had been exercised at December 31, 2001. Shares
fully  vested  at  December  31,  2001,  totaled 477,500.  We reserved 1,750,000
shares for grant to employees and directors under the 2002 Stock Incentive Plan.
No  options  have  been  issued  from  this plan.  Except for these warrants and
options,  there  are no outstanding options, warrants, or rights to purchase any
of  the  securities  of  the  company  and  we  do  not  plan  to  issue  any.


<PAGE>
We  authorized  the  issuance  of  up  1,000,000 shares of preferred stock, with
timing  and  terms  at  the  discretion of the board of directors.  No shares of
preferred  stock  had  been  issued  as  of  December  31,  2001.

CRITICAL  ACCOUNTING  POLICIES

In  the  ordinary course of business, the company has made a number of estimates
and assumptions relating to the reporting of results of operations and financial
condition  in  the  preparation  of  its financial statements in conformity with
accounting  principles  generally  accepted  in  the  United  States of America.
Actual  results  could differ significantly from those estimates under different
assumptions  and conditions.  The Company believes that the following discussion
addresses  the Company's most critical accounting policies, which are those that
are  most  important  to  the portrayal of the Company's financial condition and
results.  The  Company  constantly  re-evaluates  these  significant factors and
makes  adjustments  where facts and circumstances dictate.  Historically, actual
results  have  not  significantly  deviated  from  those  determined  using  the
necessary  estimates  inherent  in  the  preparation  of  financial  statements.
Estimates and assumptions include, but are not limited to, customer receivables,
inventories,  office equipment, databases and domain name lives, deferred income
tax benefits, contingencies and litigation.  The Company has also chosen certain
accounting  policies  when  options  were  available,  including:

-    The  first-in,  first-out  (FIFO)  method  to  value  our  inventories; and

-    The  intrinsic  value  method,  or  APB  Opinion No. 25, to account for our
     common  stock  incentive  awards;  and

-    We  record  an allowance for credit losses based on estimates of customers'
     ability  to  pay.  If  the  financial  condition  of  our  customers  were
     to deteriorate,  additional  allowances  may  be  required.

 These  accounting  policies  are  applied consistently for all years presented.
Our  operating  results  would  be  affected  if  other  alternatives were used.
Information  about  the  impact  on  our  operating  results  is included in the
footnotes  to  our  consolidated  financial  statements.


ITEM  7.  FINANCIAL  STATEMENTS
-------------------------------

The  financial  statements  listed  in  the accompanying Index at Item 13(a) are
filed  as  part  of  this  report.


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

NONE.

                                    PART III
                                    --------

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

Set  forth  below is certain information concerning each person who served as an
executive  officer  during  the  year  ended December 31, 2001 or is presently a
director  of  the  Company.  All  officers and directors hold office until their
respective  successors  are  elected  and  qualified,  or  until  their  earlier
resignation  or  removal.

The  following  sets  forth  the  names  and ages of our directors and executive
officers:

NAME                   AGE     POSITION
----                   ---     --------


Trevor  Newton          32     President,  Secretary, Treasurer, Chairman of the
                               Board  of  Directors, Chief  Operating  and
                               Executive  Officer


<PAGE>
Fred  Coombes           48     Vice  President  of  Corporate  Development  and
Director

John  Tarves            47     Director  (resigned  in  2001)

Matt  Dion              32     Director


TREVOR  NEWTON,  since our incorporation to the present, has been our President,
Secretary,  Treasurer,  Chairman  of the Board of Directors, Chief Operating and
Executive  Officer.  Mr.  Newton oversees all aspects of operations and business
development  for  the Company. Mr. Newton graduated from Simon Fraser University
in  1993 with a Masters Degree in Economics, and from the University of Victoria
in  1991  with  a Bachelor of Science degree in Economics. From 1994 to 1995 Mr.
Newton  taught  Economics  and  Statistics  at  the University College of Fraser
Valley,  and  from February 1996 until October 1996, Mr. Newton was a registered
representative  with  a  broker-dealer. From October 1996 until 1999, Mr. Newton
was  employed  at  Stockscape.com, a publicly traded financial website which has
published  dozens  of financial newsletters and delivered financial information,
such as stock quotes and news, to its users 24 hours a day. His responsibilities
at  Stockscape  included  the  overseeing  of  all aspects of operations such as
programming,  content  development,  technical  infrastructure  and  marketing.

FRED  COOMBES, since our inception to the present, has been one of our Directors
and  since  January  20,  1999,  to  the present our Vice-President of Corporate
Development.  Since  1987  to  the  present,  Mr.  Coombes has also acted as the
President  of  Co-ab  Marketing, Ltd., an investor and corporate relations firm.
Presently,  he  devotes  himself  fulltime  to  our  affairs.

JOHN TARVES resigned as a member of the Board of Directors in October 2001.  Mr.
Tarves  had  been  one of our Directors since our incorporation. Since 1979, Mr.
Tarves  has been a secondary school teacher in the Chichester School District in
Boothwyn,  Pennsylvania.  He  is  a  member  of the school district's Technology
Leadership  Team  and  has initiated an Internet usage program in the classroom.
Mr.  Tarves has a B.A. degree from St. Francis College (Loretto, PA) and an M.A.
degree  from  Fairfield  University  (Fairfield,  CT.).

MATT  DION  has  served  on  the Board of Directors of Stratabase since December
2000.  Matt has extensive background in the software industry, and has been with
Seagate  Software  for the past 8 years. Prior to joining Seagate, Matt was with
Microsoft  Canada.

Our  Directors  have  been  elected  to  serve  until the next annual meeting of
stockholders  and  until  their successor(s) have been elected and qualified, or
until  death,  resignation  or  removal.


SECTION  16(A)  BENEFICIAL  OWNERSHIP  REPORTING  COMPLIANCE

Section  16(a)  of  the  Exchange Act requires the Company's executive officers,
directors  and  persons who beneficially own more than 10% of a registered class
of  the  Company's equity securities to file with the Commission initial reports
of  ownership  and  reports  of  changes  in ownership of Common Stock and other
equity  securities  of  the  Company.  Such  persons  are required by Commission
regulations  to  furnish the Company with copies of all Section 16(a) forms they
filed.

To  the  Company's  knowledge,  based  solely on the Company's review of Forms 3
(Initial Statement of Beneficial Ownership of Securities), Forms 4 (Statement of
Changes  in  Beneficial  Ownership)  and Forms 5 (Annual Statement of Changes in
Beneficial  Ownership)  furnished to the Company with respect to the fiscal year
ended  December  31,  2001,  no persons failed to file any such form in a timely
manner.


<PAGE>
ITEM  10.  EXECUTIVE  COMPENSATION
----------------------------------

The  following table sets forth information with respect to compensation we paid
for  the  years  ended  December  31,  2001,  2000 and 1999, for services of the
executive officers. We have not paid any executive officer in excess of $100,000
(including salaries and benefits) during the years ended December 31, 2001, 2000
or  1999.



<TABLE>
<CAPTION>
SUMMARY  OF  ANNUAL  COMPENSATION

Name  and                           Year  ended            Year  ended          Period  ended
Principal Position                 December 31, 2001     December 31, 2000     December 31, 1999
------------------                 -----------------     -----------------     -----------------
<S>                                         <C>                <C>                    <C>

Trevor  Newton,  Chairman  of
the  Board,  President,  Secretary,
Treasurer  and  Chief  Operating  and
Executive Officer                           $60,000               $60,000             $55,000

Fred  Coombes,
Vice  President  of  Corporate
Development  and  Director                  $36,000               $36,000             $     0
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                             OPTION/SAR GRANTS IN LAST FISCAL YEAR
                                      (INDIVIDUAL GRANTS)


                                                Percent Of Total
                          Number Of Securities   Options/SARs
                               Underlying         Granted To     Exercise or
                          Options/SARs Granted   Employees In    Base Price
Name                               (#)            Fiscal Year      ($/Sh)      Expiration Date
(a)                                (b)                (c)            (d)             (e)
-----------------------  ----------------------  --------------- ------------- -----------------
<S>                            <C>                    <C>            <C>            <C>
Trevor Newton,
President, Secretary,
Treasurer, Chairman of
the Board of Directors,
Chief Operating and
Executive Officer                     225,000/0      31.91%/0%  $        0.60  April 10, 2011
</TABLE>



<TABLE>
<CAPTION>

               AGGREGATE OPTION/SAR EXERCISES IN LAST FISCAL YEAR
                          AND FY-END OPTIONS/SAR VALUES


                                                                      Number Of
                                                                      Unexercised      Value Of
                                                                      Securities       Unexercised
                                                                      Underlying       In-The-Money
                                                                      Options/SARs At  Option/SARs At
                                 Shares Acquired                      FY-End (#)       FY-End ($)
                                   On Exercise      Value Realized    Exercisable/     Exercisable/
Name                                   (#)               ($)          Unexercisable    Unexercisable
(a)                                    (b)               (c)              (d)              (e)
-------------------------------  ----------------  ----------------  --------------  ---------------
<S>                                    <C>               <C>              <C>              <C>
Trevor Newton, President,
Secretary, Treasurer, Chairman
of the Board of Directors,
Chief Operating and Executive
Officer                              400,000           $200,000        225,000/0      $274,500/$-0-
-------------------------------  ----------------  ----------------  --------------  ---------------
Fred Coombes, Vice President
of Corporate Development and
Director                             350,000           $350,000           0/0           $-0-/$-0-
-------------------------------  ----------------  ----------------  --------------  ---------------
</TABLE>



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

The following provides the names and addresses of (i) each person known to us to
beneficially  own  more  than 5% of our outstanding shares of common stock; (ii)
each  of  our  officers  and  directors;  and  (iii)  all  of  our  officers and
35.12%directors as a group.  Except as otherwise indicated, all shares are owned
directly.

As  of  March  1, 2002, there were 7,718,372 shares of common stock outstanding,
plus 477,500 vested stock options to purchase our common stock at prices ranging
from  $0.50  to  $1.45  per  share.


<PAGE>

Officers, Directors,
 5% Shareholder                        No. of Shares     Beneficial Ownership %
 ---------------                        -------------    ----------------------

Trevor  Newton                          2,935,400    (1)       36.95%
c/o  Stratabase
34314  Marshall  Road
Abbotsford,  B.C.
V25  112  Canada

Mary  Martin                            1,282,072    (2)       16.61%
248  West  Park  Avenue
Long Beach, NY 11561

Fred  Coombes                           1,042,300    (3)       13.50%
c/o  Stratabase
34314  Marshall  Road
Abbotsford,  B.C.
V25  112  Canada

Matt  Dion                                 61,361     (4)    Less than 1%
c/o  Stratabase
34314  Marshall  Road
Abbotsford,  B.C.
V25  112  Canada

New  Horizons  LP
248  West  Park  Avenue
Long Beach, NY  1151                      795,000             10.30%



All  Directors  and  executive
officers  as  a Group (3 persons)*       4,039,061            50.85%

(1)Includes  225,000  options  to  purchase  common stock at a purchase price of
$0.60  per  share,  all  of  which  are  vested.

(2) The general partner and a minority limited partner of New Horizons LP is Joe
MacDonald,  who  is  married to Mary Martin. The number indicated above does not
include  the  shares owned by New Horizons LP, all of which Ms. Martin disclaims
beneficial  ownership.

(3)  Includes  30,000  shares  of  common stock owned by Mr. Coombes' daughters,
Candice  Coombes,  Mackenzie  Coombes  and  Carley  Coombes.

(4)  Number  indicated  represents options to purchase common stock at $1.45 per
share,  all  of  which  are  vested.

*  These  shares  are  attributed  to Trevor Newton, Fred Coombes and Matt Dion.


The  persons  or  entities  named in this table, based upon the information they
have  provided  to us, have sole voting and investment power with respect to all
shares  of  common  stock  beneficially  owned  by  them.

As of March 1, 2001, there were 7,718,372 shares of Common Stock outstanding and
approximately  200-500  shareholders.

<PAGE>

ITEM  12.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS
-------------------------------------------------------------

During  the 2001 fiscal year, the Company paid management fees of $60,000 to Mr.
Trevor  Newton,  the Chairman, President, Chief Operating and Executive Officer,
Secretary  and Treasurer, and $36,000 to Mr. Fred Coombes, the Vice President of
Corporate  Development.  This  was  the  only cash compensation received by such
individuals from the Company.  During the 2000 fiscal year, the Company paid Mr.
Newton  and  Mr.  Coombes $60,000 and $36,000, respectively, as management fees.

The  Company  has  no  employment  or  any similar agreements with the foregoing
individuals  or  any  other  person.

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


(a)  Exhibits.

                                    EXHIBITS

Exhibit  No.              Description

3.1     Certificate  of  Incorporation  of  Registrant.*
3.2     Registrant's  Certificate  of  Amendment  of Registrant's Certificate of
        Incorporation.**
3.3     By-Laws  of  Registrant.*
4.1     Specimen  common  stock  certificate.*
10.2    Lease  with  SGS  Enterprises.*
10.3    Internet  Business  Service  Agreement  with  BCTEL.***
10.4    Distributor  Agreement  with  COMTEX***
10.5    Stock  Option  Plan  ****
10.6    Internetworking  Services  Agreement  with  Telus  Advanced
        Communications.*
10.7    Lease  Agreement  with  George  P.  and  Sandra  J.  Andreasen***
10.8    2002  Stock  Option  Plan*****
24.2    Consent  of  Moss  Adams  LLP.

*     Previously  filed  with  the  Company's  Form  SB-2  on  August 8, 1999.

**    Previously filed  with  the Company's Information Statement in June 2001.

***   Previously  filed  with  the Company's Form 10-KSB for the year ended
      December  31,  2000.

****  Previously filed with the Company's Form S-8 on January 29, 2000.

***** Previously filed with the Company's Form S-8 filed on February 12, 2002


(b)  Reports  on  Form 8-K.  The Company filed no Reports on Form 8-K during the
last  quarter  of  2001.

<PAGE>
                                   SIGNATURES
                                   ----------

     Pursuant  to  the  requirements  of  Section  13 or 15(d) of the Securities
Exchange  Act  of  1934, the Company has duly caused this report to be signed on
its  behalf  by  the  undersigned,  thereunto  duly  authorized.




                                STRATABASE

                           By  /s/  Trevor  Newton
                               -------------------
                               Trevor  Newton
Dated:  March  26,  2002       Chairman,  President,  Chief  Executive
                               Officer,  Secretary  and  Treasurer



                           By  /s/  Fred  Coombes
                               -------------------
                               Fred  Coombes
                               Vice  President  of  Corporate Development



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

<TABLE>
<CAPTION>
<S>                                  <C>                                      <C>

/s/  Trevor  Newton          Chairman,  President,  Chief  Executive
-------------------          Officer,  Secretary  and Treasurer          Dated: March 26, 2002
                            (Principal  Executive  Officer  and
Trevor  Newton               Principal  Financial  Officer)



 /s/  Fred  Coombes          Vice President of Corporate Development     Dated:  March 26, 2002
-------------------
Fred  Coombes

</TABLE>

<PAGE>

                                   STRATABASE
                                   __________

                          INDEPENDENT AUDITOR'S REPORT
                                       AND
                              FINANCIAL STATEMENTS
                                   __________

                           DECEMBER 31, 2001 AND 2000


CONTENTS
--------


                                                                        PAGE

INDEPENDENT  AUDITOR'S  REPORT                                             F-1


                              FINANCIAL STATEMENTS
     Balance  sheets                                                 F-2 - F-3
     Statements  of  operations  and  comprehensive  income (loss)   F-4 - F-5
     Statements  of  changes  in  shareholders'  equity                    F-6
     Statements  of  cash  flows                                     F-7 - F-8
     Notes  to  financial  statements                                      F-9


<PAGE>


INDEPENDENT  AUDITOR'S  REPORT


The  Board  of  Directors  and  Shareholders
Stratabase


We have audited the accompanying balance sheets of Stratabase as of December 31,
2001 and 2000, and the related statements of operations and comprehensive income
(loss),  changes  in  shareholders'  equity,  and  cash flows for the years then
ended.  These  financial  statements  are  the  responsibility  of the Company's
management.  Our  responsibility  is  to  express  an opinion on these financial
statements  based  on  our  audits.

We conducted the 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 Stratabase as of December 31,
2001  and  2000,  and  the  changes in its operations and its cash flows for the
years then ended, in conformity with accounting principles generally accepted in
the  United  States  of  America.




Portland,  Oregon
February  27,  2002

<PAGE>
                                                                      STRATABASE
                                                                  BALANCE SHEETS
                                                                  --------------
<TABLE>
<CAPTION>
                                     ASSETS

                                                        DECEMBER 31,

                                                     2001        2000
                                                  ----------- ---------

CURRENT ASSETS
<S>                                               <C>          <C>
  Cash                                            $1,265,457   $219,801
  Accounts receivable, net of allowance for
    doubtful accounts of $8,500 for
    2001 and 2000                                     12,815    120,946
  Employee receivable                                  5,977      6,872
  Inventory                                           21,363     12,504
  Prepaid expenses                                         -      3,965
                                                  -----------  ---------

      Total current assets                         1,305,612    364,088
                                                  -----------  ---------

OFFICE EQUIPMENT, AT COST
  Computer hardware                                   75,597     69,561
  Computer software                                   12,427      5,440
  Office furniture and equipment                      12,137     10,212
                                                  -----------  ---------

                                                     100,161     85,213
  Less accumulated depreciation and amortization     (40,571)   (18,425)
                                                  -----------  ---------

      Net office equipment                            59,590     66,788
                                                  -----------  ---------

OTHER ASSETS
  Deferred income taxes                               45,548          -
  Databases and domain names, net                    629,479    146,281
                                                  -----------  ---------

      Total other assets                             675,027    146,281
                                                  -----------  ---------

TOTAL ASSETS                                      $2,040,229   $577,157
                                                  ===========  =========
</TABLE>


See accompanying notes.
                                      -F2-

<PAGE>
<TABLE>
<CAPTION>
                                                               STRATABASE
                                                          BALANACE SHEETS

                      LIABILITIES AND SHAREHOLDERS' EQUITY

                                                      DECEMBER 31,

                                                    2001        2000
                                                 ----------- ----------

CURRENT LIABILITIES
<S>                                              <C>          <C>
  Accounts payable                               $  841,944   $  90,944
  Accrued liabilities                                 2,685      15,100
  Income taxes payable                               50,265           -
                                                 ----------- ----------
      Total current liabilities                     894,894     106,044
                                                 ----------- ----------

COMMITMENTS AND CONTINGENCIES (NOTE 6)


SHAREHOLDERS' EQUITY
  Preferred stock, $.001 par value; 1,000,000
    shares authorized and unissued                        -           -
  Common stock, $.001 par value; 25,000,000
    shares authorized, 7,718,372 and 6,653,772
    shares issued and outstanding at
    December 31, 2001 and 2000, respectively          7,719       6,654
                                                 ----------- ----------
  Additional paid-in capital                      1,515,615     782,455
  Retained earnings (accumulated deficit)           106,082    (315,164)
  Related-party notes received in exchange for
    common stock                                   (477,000)          -
  Accumulated comprehensive loss                     (7,081)     (2,832)
                                                 ----------- ----------

      Total shareholders' equity                  1,145,335     471,113
                                                 ----------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
  EQUITY                                         $2,040,229   $ 577,157
                                                 ===========  ==========

</TABLE>

See accompanying notes.
                                      -F3-

<PAGE>

                                                                   STRATABASE
                      STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
<TABLE>
<CAPTION>


                                                YEARS ENDED DECEMBER 31,
                                                ------------------------

                                                    2001        2000
                                                 ----------  ----------
<S>                                                 <C>         <C>
REVENUE                                          $2,360,452  $1,313,579
                                                 ----------  ----------

OPERATING EXPENSES
  Direct marketing                                1,185,968     602,502
  Hardware cost of sales                            100,908           -
  Commissions                                        48,403     245,535
  Wages and subcontracting costs                    259,494     197,563
  Internet connectivity                              12,329      14,711
                                                 ----------  ----------

      Total operating expenses                    1,607,102   1,060,311
                                                 ----------  ----------

      Net revenues                                  753,350     253,268
                                                 ----------  ----------

GENERAL AND ADMINISTRATIVE EXPENSES
  Management fees                                    96,000      96,000
  Legal, accounting, and consulting fees             83,183      93,459
  Rent                                               32,563      27,684
  Office                                             22,067      27,649
  Advertising                                        27,210      17,138
  Depreciation and amortization                      91,459      25,501
  Telecommunications                                 12,058      12,512
  Bad debt expense                                   29,818       9,397
  Wages and benefits                                 13,313      13,869
  Other expenses                                     33,900      34,274

      Total general and administrative expenses     441,571     357,483
                                                 ----------  ----------

OTHER INCOME
  Interest income                                     4,809       7,159
  Gain on sale of marketable equity securities      154,000           -
                                                 ----------  ----------

      Total other income                            158,809       7,159
                                                 ----------  ----------

</TABLE>
See accompanying notes.
                                      -F4-
<PAGE>
                                                                   STRATABASE
                      STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)


<TABLE>
<CAPTION>


                                           YEARS ENDED DECEMBER 31,
                                           ------------------------

                                               2001       2000
                                             ---------  ---------

NET INCOME (LOSS) BEFORE PROVISION FOR
<S>                                          <C>        <C>
    INCOME TAXES                             $470,588   $(97,056)
                                             ---------  ---------
     Provision for income taxes                49,342          -
                                             ---------  ---------

NET INCOME (LOSS)                             421,246    (97,056)

OTHER COMPREHENSIVE LOSS
  Foreign currency translation adjustments     (4,249)    (2,303)
                                             ---------  ---------

COMPREHENSIVE INCOME (LOSS)                  $416,997   $(99,359)
                                             =========  =========

BASIC INCOME (LOSS) PER SHARE
  OF COMMON STOCK                            $   0.06   $  (0.02)
                                             =========  =========

DILUTED INCOME (LOSS) PER SHARE
  OF COMMON STOCK                            $   0.05   $  (0.02)
                                             =========  =========



</TABLE>

See accompanying notes.
                                      -F5-

<PAGE>

                                                                    STRATABASE
                                 STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>



                                                                      RETAINED               ACCUMULATED
                                                         ADDITIONAL   EARNINGS    RELATED-     OTHER          TOTAL
                                         COMMON STOCK     PAID-IN  (ACCUMULATED    PARTY    COMPREHENSIVE   SHAREHOLDERS'
                                      SHARES    AMOUNT    CAPITAL     DEFICIT)     NOTES       LOSS          EQUITY

<S>                                   <C>         <C>      <C>         <C>         <C>         <C>            <C>
                                    ---------  --------  ----------  ----------  ---------  ----------   ----------
BALANCE, DECEMBER 31, 1999          5,543,772   $ 5,544  $  231,065  $(218,108)  $       -   $   (529)   $   17,972

Issuance of common stock at
 $.0025 per share (February
 2000)                                 10,000        10       2,490          -           -          -        2,500

Issuance of common stock at
 $.25 per share (February 2000)       800,000       800     399,200          -           -                 400,000

Issuance of common stock at
..50 per share for domain name
 and database (September 2000)        300,000       300     149,700          -           -          -      150,000

Net loss and comprehensive loss             -         -           -    (97,056)          -     (2,303)     (99,359)
                                    ---------  --------  ----------  ----------  ---------  ----------  ----------

BALANCE, DECEMBER 31, 2000          6,653,772     6,654     782,455   (315,164)          -     (2,832)     471,113


Exercise of Class A warrants, at
1.00 (January 2001)                   14,600        15      14,585          -           -          -       14,600

Exercise of stock options,
750,000 shares at $.50 per share
 for officers and 300,000 shares
at $1.00 per share for employees
(April 2001)                        1,050,000     1,050     673,950          -           -          -      675,000

Related-party notes received in
exchange for common stock                   -         -           -          -    (675,000)         -     (675,000)

Payment on related-party notes
   Receivable                               -         -           -          -     198,000          -      198,000

U.S. income tax benefit from
   stock options exercised                  -         -      44,625          -           -          -       44,625

Net income and comprehensive
income (loss)                               -         -           -    421,246           -     (4,249)     416,997
                                    ---------  --------  ----------  ----------  ---------  ----------  ----------

BALANCE, DECEMBER 31, 2001          7,718,372   $ 7,719  $1,515,615  $ 106,082   $(477,000)  $ (7,081)  $1,145,335
                                    =========  ========  ==========  ==========  =========  ==========  ===========
</TABLE>

See accompanying notes.
                                      -F6-

<PAGE>
<TABLE>
<CAPTION>
                                                                                   STRATABASE
                                                                      STATEMENTS OF CASH FLOW

                                                            YEARS ENDED DECEMBER 31,
                                                           ------------------------

                                                                2001         2000
                                                             -----------  ----------
<S>                                                              <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                          $  421,246   $ (97,056)
  Adjustments to reconcile net income (loss) to
    net cash from operating activities:
    Depreciation and amortization                                91,459      25,501
    Provision for deferred income taxes                         (45,548)          -
    U.S. income tax benefit from stock options exercised         44,625           -
    Write-off of investment in Maturus.com, Inc.                  2,250           -
    Services rendered for acquisition of databases              (88,473)          -
    Change in assets and liabilities:
      Accounts receivable                                       108,131     (87,981)
      Employee receivable                                           895      (6,872)
      Prepaid expenses                                            3,965      (3,965)
      Inventory                                                  (8,859)    (12,504)
      Accounts payable                                          751,000      76,780
      Accrued liabilities                                       (12,415)    (18,101)
      Income taxes payable                                       50,265           -
                                                             -----------  ----------
        Net cash from operating activities                    1,318,541    (124,198)
                                                             -----------  ----------
CASH FLOWS FROM INVESTING ACTIVITIES
  Investment in Maturus.com, Inc.                                     -      (2,250)
  Acquisition of domain names and databases                    (466,288)     (6,532)
  Acquisition of office and computer equipment                  (14,948)    (52,112)
                                                             -----------  ----------
        Net cash from investing activities                     (481,236)    (60,894)
                                                             -----------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from exercise of Class A warrants                     14,600     402,500
  Payments on related-party notes received in exchange for
    common stock                                                198,000           -
                                                             -----------  ----------
        Net cash from financing activities                      212,600     402,500
                                                             -----------  ----------
</TABLE>
See accompanying notes.
                                      -F7-
<PAGE>
                                                                   STRATABASE
                                                      STATEMENTS OF CASH FLOW
<TABLE>
<CAPTION>
                                                              YEARS ENDED DECEMBER 31,
                                                              ------------------------

                                                                  2001        2000
                                                              -----------  -----------
<S>                                                               <C>          <C>

EFFECT OF EXCHANGE RATE CHANGES ON CASH                        $   (4,249)  $ (2,303)
                                                              -----------  -----------

NET INCREASE IN CASH                                            1,045,656    215,105
                                                              -----------  -----------

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                      219,801      4,696
                                                              -----------  -----------

CASH AND CASH EQUIVALENTS, END OF YEAR                         $1,265,457   $219,801
                                                              ===========  ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
    INFORMATION
  Cash paid during the year for:
    Interest                                                   $        -   $      -
                                                               -----------  ----------
    Income taxes                                               $        -   $      -
                                                               ===========  =========-

SUPPLEMENTAL DISCLOSURE OF NONCASH
    INVESTING TRANSACTIONS
  Issuance of 300,000 shares in February 2000 for acquisition
    of domain names and database                               $        -   $150,000
                                                              ============  ==========
  Exercise of 1,050,000 stock options in April 2001, for
    related-party note receivable                              $  675,000
                                                              ============  ==========

</TABLE>

See accompanying notes.
                                      -F8-

<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE  1     -     NATURE  OF  OPERATIONS  AND  ORGANIZATION

     On March 11, 2001, Stratabase.com changed its legal name to Stratabase (the
Company). Stratabase is a Nevada corporation which develops open-source Customer
Relationship Management (CRM) software for its own use, that of its clients, and
for  general  distribution.  The  Company  also  provides clients with Web-based
marketing  automation  services  (which  fall  within  the  CRM  industry niche)
utilizing  its  software.  Its  open-source  CRM  software is Web-based software
designed  to  carry  out,  track,  report, and manage sales force automation and
marketing  automation  services.  On  a limited scale, the Company also provides
customized  computer  hardware  for its customers. The Company operates from its
headquarters  in  Abbotsford,  British  Columbia,  Canada.


NOTE  2     -     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

REVENUE  RECOGNITION  -  The  Company  provided  its open-source CRM software to
potential  customers  through  the  Internet  at  no cost. The Company generates
revenue  from  providing  additional  services  to these customers by performing
consultation  services  and custom modifications to the CRM software to make the
software  more  useable  to specific customers. The majority of the CRM projects
undertaken  by the Company are prepaid with revenue recognized upon delivery and
when there are no further performance obligations and no rights of refund exist.
There  was  no  deferred  income  at  December  31,  2001  or  2000. The Company
recognizes  revenue  on  computer  hardware  sales  at  the  time  of  shipment.

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

CONCENTRATIONS  OF CREDIT RISK - Financial instruments which potentially subject
the  Company to credit risk consist of cash and accounts receivable. At December
31,  2001  and 2000, the maximum loss that would have resulted from these credit
risks  totaled  $1,175,397  and  $125,726,  respectively, for the excess of bank
deposits  over  the  amount  that  would  have been covered by U.S. and Canadian
deposit  insurance  and  $18,792  and $127,818, respectively, for the balance of
accounts  receivable  in  excess  of  the  allowance  for  doubtful  accounts to
customers  primarily  located in the northwest United States and western Canada.

INVENTORY  -  Inventory is comprised primarily of system hardware components and
is  stated at the lower of cost or market. The Company determines cost using the
first-in,  first-out  (FIFO)  method.


                                      F-9
<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE  2     -     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  (continued)

OFFICE  EQUIPMENT  -  Office equipment is recorded at cost and depreciated using
the  straight-line  method  over  its useful life, which ranges from one to five
years.

DATABASES AND DOMAIN NAMES - Databases and domain names are being amortized over
three  years  and  two  years,  respectively. Total accumulated amortization was
$81,814  and  $12,501  at December 31, 2001 and 2000, respectively. Amortization
expense  charged  to  operations  was  $69,313  and  $12,501  for 2001 and 2000,
respectively.

SOFTWARE  DEVELOPMENT  COSTS - Software development and implementation costs are
expensed  until the Company determines that the software will result in probable
future  economic  benefits  and management has committed to funding the project.
Thereafter, all direct external implementation costs and purchase software costs
are  capitalized  and  amortized  using  the straight-line method over remaining
estimated  useful lives, generally not exceeding five years. To date, such costs
are  not significant. The Company does not develop prepackaged software for sale
to  its  customers.

ADVERTISING  -  Advertising  costs  are  expensed  as  incurred.

INCOME  TAXES - The Company follows the asset and liability method of accounting
for  income taxes whereby deferred tax assets and liabilities are recognized for
the  future  tax  consequences  of  differences  between the financial statement
carrying  amounts  of  existing  assets and liabilities and their respective tax
bases.

FOREIGN  EXCHANGE  ACCOUNTING - The Company's Canadian transactions are measured
in  local  currency  and  then  translated  into U.S. dollars. All balance sheet
accounts  have been translated using the current rate of exchange at the balance
sheet  date.  Results of operations have been translated using the average rates
prevailing  throughout  the year. Translation gains or losses resulting from the
changes  in  the  exchange  rates  are  accumulated  in  a separate component of
shareholders'  equity.  All  amounts  included  in  the  accompanying  financial
statements  and  footnotes  are  denominated  in  U.S.  dollars.

STOCK  OPTIONS  - The Company applies Accounting Principles Board Opinion No. 25
(APB  No.  25)  and  related  interpretations in accounting for its stock option
plan.  Accordingly,  compensation costs are recognized as the difference between
the exercise price of each option and the market price of the Company's stock at
the  date  of  each  grant.  No compensation costs have been recognized to date.


                                      F-10
<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------

NOTE  2     -     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  (continued)

EARNINGS  (LOSS)  PER SHARE OF COMMON STOCK - Basic earnings (loss) per share of
common  stock  is  computed  by  dividing  net income (loss) available to common
shareholders by the weighted-average number of common shares outstanding for the
period.  Diluted  earnings  per  share reflect the potential dilution that could
occur  if  securities or other contracts to issue common stock were exercised or
converted  into  common  stock  or resulted in the issuance of common stock that
then  shared  in  the  earnings  of  the Company. The weighted average number of
common  shares  outstanding  was  7,368,372  and  6,386,272  for the years ended
December  31,  2001  and  2000,  respectively.

USE  OF  ESTIMATES  - The preparation of financial statements in conformity with
accounting  principles  generally  accepted  in  the  United  States  of America
requires  management  to  make estimates and assumptions that affect the amounts
reported  in  the  financial  statements  and accompanying notes. Actual results
could  differ  from  those  estimates.

RECENTLY  ISSUED ACCOUNTING STANDARDS - In August 2001, the Financial Accounting
Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS)
No.  144, "Accounting for the Impairment or Disposal of Long-Lived Assets." SFAS
No. 144 clarifies the accounting for the impairment of long-lived assets and for
long-lived assets to be disposed of, including the disposal of business segments
and  major  lines of business. SFAS No. 144 will be effective for the Company in
the  first  quarter  of  2002. The Company's management does not expect that the
application  of  the provisions of this statement will have a material impact on
the  Company's  financial  statements.

In  July  2001,  the  FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations."  SFAS  No.  143  addresses  the  accounting  and  reporting  for
obligations associated with the retirement of tangible long-lived assets and the
associated  asset  retirement  costs.  SFAS  No.  143  will be effective for the
Company  in  the first quarter of 2002. The Company's management does not expect
that  the  application  of the provisions of this statement will have a material
impact  on  the  Company's  financial  statements.

                                      F-11

<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE  2     -     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  (continued)

In  July  2001,  the  FASB issued SFAS No. 141, "Business Combinations," and No.
142,  "Goodwill  and  Other  Intangible  Assets."  These  standards  change  the
accounting  for  business  combinations  by, among other things, prohibiting the
prospective  use  of  pooling-of-interests accounting and requiring companies to
cease  amortizing  goodwill  and  certain  intangible  assets with an indefinite
useful  life  created  by business combinations accounted for using the purchase
method  of accounting. Instead, goodwill and intangible assets deemed to have an
indefinite  useful  life will be subject to an annual review for impairment. The
new standards will be effective for the Company in the first quarter of 2002 and
for  purchase  business  combinations  consummated  after  June  30,  2001.  The
Company's  management  does not expect that the application of the provisions of
this  statement  will  have  a  material  impact  on  the  Company's  financial
statements.

The  FASB  issued  SFAS  No.  140,  "Accounting  for  Transfers and Servicing of
Financial  Assets  and  Extinguishment  of  Liabilities  - a replacement of FASB
Statement  No. 125," effective for transfers and extinguishments occurring after
March  31,  2001.  The  impact  and adoption of this standard is not expected to
materially  affect  the  Company's financial condition or results of operations.

RECLASSIFICATIONS - Certain 2000 balances have been reclassified to conform with
the  current  year  presentation.



NOTE 3     -     RELATED-PARTY TRANSACTIONS

In  2000,  the  Company purchased 900,000 shares of common stock in Maturus.com,
Inc.,  for  $2,250.  Maturus.com,  Inc.  is  a  privately held development stage
corporation,  for  which  the president of the Company serves as an officer. The
investment  represents 15.25% of the outstanding shares of Maturus.com, Inc., at
December  31,  2000,  and  is  accounted for using the cost method. For the year
ending  December 31, 2000, the Company recognized revenues approximating $30,500
from  this  related  entity,  and  the  net  accounts  receivable  balance  from
Maturus.com,  Inc.  at  December  31,  2000,  was  $16,481.

In  2001, Maturus.com, Inc. ceased operations. The Company has written off their
investment  of  $2,250  in  Maturus.com,  Inc. as well as the remaining accounts
receivable  balance  of  $15,354  generated from 2000 revenues. No revenues were
earned  from  Maturus.com,  Inc.  by the Company for the year ended December 31,
2001.


                                      F-12
<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE  4     -     SHAREHOLDER  TRANSACTIONS

CAPITAL  RAISING  ACTIVITIES  -  On  November 18, 1998, the Company approved the
issuance of 4,643,772 shares of common stock at $.0025 per share to its founding
group  of  shareholders.  In  January  1999,  the  Company's  Board of Directors
consented  to  the sale of 900,000 additional shares of common stock at $.25 per
share  to  New  Horizons  LLP,  a  New  York  venture  capital  firm.

On  February 7, 2000, the Company's public offering for up to 800,000 investment
units  closed with the maximum number of units purchased. Each unit had a public
offering  price of $.50, and consisted of one share of common stock and one each
of  Class  A, B, and C redeemable purchase warrants. The warrants, Classes A, B,
and  C,  may  be  exercised  for  one  share  of common stock at $1, $3, and $5,
respectively,  and  at  6-month,  12-month,  and 18-month periods, respectively,
commencing  on  the  date  of the prospectus (November 10, 1999). Total proceeds
from the public offering of $400,000, were released to the Company by the escrow
agent  subsequent  to  the  closing  of  the  offering.

On  August  31,  2000,  a  letter  was issued to holders of the Company warrants
advising them that the expiration date of the Class A warrants would be extended
to  January 7, 2001, and Class B and C warrants would be extended to February 7,
2001.

Prior  to  expiration  on  January  7,  2001,  14,600 Class A warrants were
exercised  for  stock  at  $1.00  per share. The remaining class A warrants were
allowed  to  expire.

In April 2001, pursuant to the Company's stock option plan, 750,000 common share
stock  options  were  exercised by officers at $.50 per share and 300,000 common
share  stock options were exercised by an employee at $1.00, all in exchange for
notes.

On  May  11, 2001, the Company authorized the issuance of up to 1,000,000 shares
of  preferred  stock,  with  timing  and terms at the discretion of the Board of
Directors.

On  July 4, 2001, a letter was issued to holders of Stratabase warrants advising
them that the expiration date of the Class B and C warrants would be extended to
January  7,  2002.  The Class B and C warrants expired unexercised on January 7,
2002.

                                      F-13
<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE  4     -     SHAREHOLDER  TRANSACTIONS  -  (continued)

STOCK  ISSUANCE FOR INTELLECTUAL PROPERTY - In order to increase the size of the
Company's  internal  consumer  profile  database,  the  Company  entered into an
agreement  on February 1, 2000, to acquire a permission-based database of 15,000
individual  profiles,  along  with  two  domain  names. The database consists of
investors  who  have voluntarily provided their personal contact information and
have  requested marketing information be sent to them. In consideration for this
database and the two domain names, the Company agreed to issue 300,000 shares of
its  common  stock  upon  transfer  of  the  intellectual  property.

In September 2000, the transfer of intellectual property in exchange for 300,000
shares of common stock was completed, and the Company recorded intangible assets
related  to  the  domain  names  and  investor  database  totaling $150,000. The
intangible  assets  will  be  amortized  over  a  three-year  period.



NOTE 5     -     PROVISION FOR INCOME TAXES

The  provision  for  income  taxes  consists  of  the  following:



                                                      2001          2000
                                                -----------     -----------

     Current:
           U.S.                                 $   12,996         $     -
           Canadian                                 50,265               -
                                                -----------     -----------

                                                    63,261               -
                                                -----------     -----------

     Deferred:
           U.S.                                     85,204               -
           Decrease in valuation allowance         (99,123)              -
                                                -----------     -----------
                                                   (13,919)              -
                                                -----------     -----------

                  Provision for income taxes    $   49,342          $    -
                                                ===========     ===========


                                      F-14
<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------

NOTE 5     -     INCOME TAXES - (continued)

Deferred  income  tax represents the tax effect of differences in timing between
financial  income  and  taxable  income.  The  net  deferred  tax  assets in the
accompanying  balance  sheets  include  the  following  components:

                                                      2001          2000
                                                    ----------  ------------
     Deferred  tax  assets  (liabilities):
         Net  operating  loss  carryforwards        $     -     $   132,672
         Accumulated depreciation                    (6,522)         (2,348)
         Accumulated amortization                    20,441               -
         Accrual to cash adjustment                       -         (31,201)
                                                    ----------  ------------

                                                     13,919          99,123
                                                    ----------  ------------

     Additional deferred tax asset due to exercise
         of nonqualified stock options               31,629               -
     Valuation allowance                                  -         (99,123)
                                                    ----------  ------------

     Net  deferred  tax  asset                     $  45,548      $        -
                                                   ===========  ============
The  exercise of nonqualified stock options in 2001 resulted in the recording of
additional  paid-in  capital  of  $44,625,  a  $12,996 reduction in income taxes
payable  and recognition of an additional $31,629 of deferred tax assets related
to  a  foreign  tax  credit  carryforward.

The  valuation  allowance  was  provided  in  2000 since it was uncertain if the
Company  would  be able to utilize the net operating loss carryfowards in future
periods.  The net operating loss carryforward was fully utilized at December 31,
2001.

                                      F-15

<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE 5     -     INCOME TAXES - (continued)

The  provision  for  income  taxes  from  continuing operations differs from the
amount  of  income  tax  determined  by  applying  the applicable U.S. statutory
federal  income  tax  rate  to  pretax  income  as  a  result  of  the following
differences:

                 Statutory federal income tax rate                          34%
                 Change in valuation allowance                             (21)
                 Effect of graduated tax rates                              (3)
                 Foreign taxes payable, net of foreign tax credit            -
                                                                   ------------
                                                                            10%
                                                                   ============


NOTE  6     -     COMMITMENTS  AND  CONTINGENCIES

LEASE  COMMITMENTS - In December 31, 2000, the Company leased office space under
one-year lease agreements in Abbotsford and Vancouver, British Columbia, Canada.
For  the  years  ended December 31, 2001 and 2000, rent expense, net of sublease
income,  was  $32,563,  and  $27,684,  respectively.

In  January 2001, the Company signed a two-year lease agreement for office space
in  Abbotsford, British Columbia, Canada. Rent payments under this agreement are
approximately  $1,050  and  are  payable  monthly. In February 2001, the Company
entered  into a three-year lease for a fiber optic line for approximately $1,000
per  month.  In  March  2001,  the Company signed a one-year lease agreement for
office  space  in  Vancouver, British Columbia, Canada. Rent payments under this
agreement  are  approximately  $745  and  are  payable  monthly.

Future  minimum lease commitments for the leases described above are as follows:

         Years ending December 31,    2002                           $    26,031
                                      2003                                12,982
                                      2004                                 1,000
                                                                    ------------
                                                                     $    40,013
                                                                    ============

                                      F-16
<PAGE>

STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------

NOTE  6     -     COMMITMENTS  AND  CONTINGENCIES  -  (continued)

Total  rent  expense  for  the  operating  leases  described  above,  plus other
month-to-month  leases,  amounted  to  $32,563  and  $27,684 for the years ended
December  31,  2001  and  2000,  respectively.

MANAGEMENT  FEES  - The Company has agreed to pay its president a management fee
of  $5,000  a  month  commencing  February 1999, and its vice president $3,000 a
month  commencing  January  2000.  Compensation  of  $96,000 for the years ended
December  31,  2001  and  2000,  has  been  recorded  as  management fees in the
accompanying  financial  statements.

LEGAL  CONTINGENCIES  -  The  Company  may become involved in certain claims and
legal  actions  arising  in  the  ordinary course of business. In the opinion of
management,  after consultation with legal counsel, there are no current matters
expected  to  have  a  material adverse effect on the financial condition of the
Company.


NOTE  7     -     STOCK  OPTIONS

In  February  2000,  the  Board  of  Directors adopted the Stratabase 2000 Stock
Option Plan (the Plan) reserving 1,750,000 shares for grant to business partners
and  employees.  On  July  15,  2000, the Company granted 1,250,000 nonqualified
common  stock  option shares to its business partners and members of staff at an
exercise price of $0.50 per share (the fair market value at July 15, 2000), with
vesting  dates  ranging  from  July  15,  2000  to  November  15,  2003.

                                      F-17
<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE  7     -     STOCK  OPTIONS  -  (continued)

Activity  under  the  Company's 2000 stock option plan is summarized as follows:

                                                                    Weighted
                               Available          Options         Average Price
                               for Grant          Outstanding       Per Share

                             --------------     ----------------  -------------
Initial  shares  reserved,
     February  2000            1,750,000                   -          $     -
     Options  granted         (1,250,000)          1,250,000          $  0.50
     Options  cancelled           55,000             (55,000)         $  0.50
                             --------------     ----------------
     Balance,
          December  31,  2000    555,000           1,195,000          $  0.50

          Options granted       (705,000)            705,000          $  0.99
          Options cancelled      150,000            (150,000)         $  0.50
          Options  exercised          -           (1,050,000)         $  0.64
                             --------------     ----------------
     Balance,
          December 31, 2001           -              700,000          $  0.78

                             ==============     ================


                                      F-18
<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE  7     -     STOCK  OPTIONS  -  (continued)

   The  following  table  summarizes  information  concerning  outstanding  and
exercisable  options  at  December  31,  2001:
<TABLE>
<CAPTION>
                                 Weighted-
                                  Average
                                 Remaining   Weighted-      Number         Weighted-
  Range of          Number of   Contractual   Average       of Options      Average
  Exercise          Options        Life       Exercise      Currently       Exercise
   Prices          Outstanding  (in years)     Price        Exercisable      Price
-----------------  ------------ ----------  ------------  ---------------- ------------
       <S>             <C>        <C>           <C>             <C>            <C>
$0.50  -  $0.60      520,000     8.42       $  0.54          443,500        $   0.55

$          1.45      180,000     9.20       $  1.45           34,000        $   1.45

</TABLE>

During  2001, the Company adopted the 2002 stock option plan reserving 1,750,000
shares  for grant to employees and directors. No grants under the 2002 plan were
made  in  2001.

The  Company  accounts  for  stock-based  compensation  in  accordance  with the
provisions  of APB No. 25. Had compensation expense been determined based on the
fair  value  at the grant dates, as described in SFAS No. 123, the Company's net
income  (loss)  and  net  income  (loss)  per  share would have been as follows:

                                                 2001              2000
                                            -------------   ---------------
            Net income (loss):                 $421,246        $ (97,056)
               As reported                     $155,059        $(403,537)
               Pro  forma

            Net  income  (loss)  per  share:
               As reported - basic                $0.06        $  (0.02)
               Pro forma - basic                  $0.02        $  (0.06)
               As reported - diluted              $0.05        $  (0.02)
               Pro forma - diluted                $0.02        $  (0.06)

                                      F-19

<PAGE>
STRATABASE
NOTES  TO  FINANCIAL  STATEMENTS
--------------------------------


NOTE  7     -     STOCK  OPTIONS  -  (continued)

The  fair  value  of each option granted is estimated on the date of grant using
the  Black-Scholes  option-pricing  model  with  the  following  assumptions for
December  31,  2001 and 2000, respectively: (1) dividend yield of 0% and 0%, (2)
expected  volatility  of  120.82%,  and 205.10%, (3) risk-free rate of 3.74% and
5.11%,  and  (4) expected life of 3.24 and 4.14 years. The weighted average fair
market  value  of  options  granted  in  2001  and  2000  was  $0.69  and $0.48,
respectively.  Because  additional stock options are expected to be granted each
year,  the  above  pro  forma  disclosures  are  not representative of pro forma
effects  on  reported  financial  results  for  future  years.


NOTE  8     -     SALES  ACTIVITY

Sales  from  the  Company's  operations  are  derived  as  follows:

                                       2001          2000
                                 -------------- --------------
                   United States  $  2,217,503    $  1,232,938
                   Canada              142,949          80,641
                                 -------------- --------------
                                  $  2,360,452    $  1,313,579
                                 ============== ==============

The  Company  operates  in  one  segment,  CRM  services.

During 2001, the Company made sales to three customers who paid for the services
with  stock  in  a  publically  traded company. The value of the sales and stock
received  was  $1,410,000.  Shortly  thereafter, the Company sold this stock for
$1,564,000  recognizing  a  gain  of  $154,000.

The Company had three separate sales to three separate customers during the year
ended  December  31,  2001,  that  accounted for greater than 10% of their total
revenues.  The  revenues generated from these three sales were $1,700,000, which
was  72% of total revenues for 2001. In 2000, the Company had two customers that
each  accounted for more than 10% of total revenues. The revenues generated from
these  two  customers  were  $359,969, which was 27% of total revenues for 2000.



                                      F-20

<PAGE>


EXHIBIT 23


CONSENT  OF  INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANT




We  hereby  consent  to the  use in this Form 10-KSBof our report dated February
27,  2002,  relating  to  the  financial  statements  of  Stratabase.




Portland,  Oregon                         /s/  Moss  Adams  LLP
                                          ---------------------
March  29,  2002                         Certified  Public  Accountants