(Mark One)

XAnnual report under section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal
year ended December 31, 2001.

___Transition report under section 13 or 15(d) of the Securities Exchange Act of 1934 for the
transition period from ____ to ____.

**ALD SERVICES, INC.**

(Name of small business in its charter)

|Nevada                                         | 0-27035                  | 88-0408274                          
|---------------------------------------------- | ------------------------ | ------------------------------------
|(State or other jurisdiction of
incorporation) | (Commission File
Number) | (IRS Employer Identification
Number)

|30 Sembrado

Rancho Santa Margarita, California | 92688     
|----------------------------------------------- | ----------
|(Address of principal executive offices)        | (Zip Code)



Issuer's telephone number:  (949) 459-1220

Securities to be registered under Section 12(b) of the Act:

Title of each class

N/A

Securities to be registered under Section 12(g) of the Act:

Common Stock, $0.001 par value

(Title of Class)

Check whether the issuer (1) filed all reports required to be filed by  Section 13 or 15(d) of the
Securities 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
contained in this form, and no disclosure will be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB. ___

State issuer's revenue for its most recent fiscal year: $  -0-

State the aggregate market value of the voting stock held by non-affiliates computed by reference
to the price at which the stock was sold, or the average bid and asked priced of such stock, as of a
specified date within the past 60 days (See definition of affiliate in Rule 12b-2): $3,153,979 as of
March 25, 2002.

Note: If determining whether a person is an affiliate will involve an unreasonable effort and
expense, the issuer may calculate the aggregate market value of the common equity held by
non-affiliates on the basis of reasonable assumptions, if the assumptions are stated.

(Issuers involved in bankruptcy proceedings during the past five years):

Check whether the issuer has filed all documents and reports required to be filed by Section 12,
13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a
court. Yes ____No ____

(Applicable only to corporate registrants) State the number of shares outstanding of each of the
issuer's classes of common equity, as of the latest practicable date: 3,408,395 as of March 25,
2002.

(Documents incorporated by reference. If the following documents are incorporated by reference,
briefly describe them and identify the part of the Form 10-KSB (e.g. Part I, Part II, etc.) into
which the document is incorporated: (1) any annual report to security holders; (2) any proxy or
information statement; and (3) any prospectus filed pursuant to Rule 424(b) or (c) of the
Securities Act of 1933 ("Securities Act").  The listed documents should be clearly described for
identification purposes.



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS FOR
PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995.

Certain statements in this report, including statements in the following discussion which
are not statements of historical fact, are what are known as "forward looking statements,"which
are basically statements about the future, and which for that reason, involve risk and uncertainty,
since no one can accurately predict the future.  Words such as "plans," "intends," "will,"
"hopes," "seeks," "anticipates," "expects," "goal" and "objective" often identify such forward
looking statements, but are not the only indication that a statement is a forward looking
statement.  Such forward looking statements include statements of our plans and objectives with
respect to the present and future operations of the Company, and statements which express or
imply that such present and future operations will or may produce revenues, income or profits.
Numerous factors and future events could cause the Company to change such plans and
objectives, or fail to successfully implement such plans or achieve such objectives, or cause such
present and future operations to fail to produce revenues, income or profits.  Therefore, the reader
is advised that the following discussion should be considered in light of the discussion of risks
and other factors contained in this Form 10KSB and in the Company's other filings with the
Securities and Exchange Commission, and that no statements contained in the following
discussion or in this Form 10KSB should be construed as a guarantee or assurance of future
performance or future results.

PART I

ITEM 1.   DESCRIPTION OF BUSINESS.

Background

ALD Services, Inc. ("ALD" or the "Company"), a Nevada corporation, was incorporated
on November 10, 1998.  It was formed as a consulting company with a principal business
objective to integrate the spectrum of processes within the logistics, supply, transportation,
contracting, financial management, and manpower management environments.  Its business plan
was to seek to provide guidance to start-up and development stage companies in functional areas
such as logistics, supply, transportation, contracting, financial and manpower management.

The Company never commenced any commercial operations and, to date, it has
conducted only organizational activities.The Company has no full-time employees and owns no
real estate.

On December 14, 2001, there was a change of control of the Company as a result of the
sale and purchase of approximately 90% of its issued and outstanding stock.  This change in
control also resulted in a change in Company management.   The Company's new management
elected to change its business plan by characterizing the Company as a public "blind pool" or
"blank check" company.  As a result, since the change of control on December 14, 2001, the
Company's plan of operations has been to seek, investigate, and if warranted, acquire one or
more properties or businesses through a reverse merger or other similar type of business
acquisition transaction.

As of the end of its fiscal year December 31, 2001, the Company had commenced efforts
to identify a business opportunity for acquisition but it had not reached any agreement or
definitive understanding with any person concerning an acquisition. The Company's search is
directed toward enterprises which have a desire to be become a public corporation and which
have a business plan designed to allow them to take advantage of opportunities available to
public entities.  This includes entities which have been recently organized, with no operating
history, or a history of losses attributable to under-capitalization or other factors, entities in need
of funds to develop a new product or service or to expand into a new market, entities which
desire to use their securities to make acquisitions, and entities which have a combination of these
characteristics.

Investigation and Selection of Business Opportunities

The analysis of business opportunities will be undertaken by or under the supervision of
the Company's sole executive officer and director.  In analyzing business opportunities it is
expected that many factors will be considered, including, but not limited to, the following
factors:

(1)  Potential for growth and profitability, indicated by new technology, anticipated
market expansion, or new products;

(2)  Strength and diversity of existing management, or management prospects that are
scheduled for recruitment;

(3)  Capital requirements and anticipated availability of required funds, to be provided
from operations, through the sale of additional securities, through joint ventures or similar
arrangements, or from other sources;

(4)  The Company's perception of how any particular business opportunity will be
received by the investment community and by the Company's stockholders; and

(5)  The availability of audited financial statements for the business opportunity; and



No one of the factors described above will be controlling in the selection of a business
opportunity, and management will attempt to analyze all factors appropriate to the opportunity
and make a determination based upon reasonable investigative measures and available data.
Potential investors must recognize that, because of the Company's limited capital available for
investigation and management's limited experience in business analysis, the Company may not
discover or adequately evaluate adverse facts about the opportunity to be acquired.  In addition,
Company management does not generally anticipate that it will provide holders of the
Company's securities with financial statements, or any other documentation, concerning a target
company or its business prior to any merger or acquisition.

Company management believes that various types of potential merger or acquisition
candidates might find a business combination with the Company to be attractive.  These include
acquisition candidates desiring to create a public market for their shares in order to enhance
liquidity for current shareholders, acquisition candidates which have long-term plans for raising
equity capital through the public sale of securities and believe that the possible prior existence of
a public market for their securities would be beneficial, and acquisition candidates which plan to
acquire additional assets through issuance of securities rather than for cash, and believe that the
possibility of development of a public market for their securities will be of assistance in that
process.

Form of Acquisition

It is likely that the Company will acquire its participation in a business opportunity
through the issuance of Common Stock or other securities of the Company.  Although the terms
of any such transaction cannot be predicted, it is also likely that present management will resign
and that the current stockholders of the Company will not have control of a majority of the voting
shares of the Company following completion of a business combination transaction.

It is anticipated that any securities issued in any reorganization would be issued in
reliance upon exemptions, if any are available, from registration under applicable federal and
state securities laws.  In some circumstances, however, as a negotiated element of the transaction,
the Company may agree to register such securities either at the time the transaction is
consummated, or under certain conditions or at specified times thereafter.  The issuance of
substantial additional securities and their potential sale into any trading market that might
develop in the Company's securities may have a depressive effect upon such market.

Subsequent Events

On or about March 1, 2002, the Company agreed in principle to acquire all of the issued
and outstanding common stock of MicroIslet, Inc., a Nevada corporation, ("MicroIslet") in a
share exchange transaction.   This agreement in principle was reported in a Form 8K filing dated
March 1, 2002.   There is no assurance that this transaction will ultimately be completed, and as
of the date of filing of this report on Form 10KSB a definitive Agreement for Share Exchange
has not yet been executed.  However, the Company anticipates that such Agreement will be
executed in the near future and that the parties will thereafter proceed with reasonable diligence
to complete the proposed transaction.

Following execution of a definitive Agreement for Share Exchange, the closing of the
proposed share exchange transaction will be subject to satisfaction of various conditions
precedent which will be specified in the Agreement for Share Exchange.  The conditions
precedent will include, among other things, satisfactory completion of all due diligence, approval
of the transaction by the shareholders of MicroIslet, receipt by MicroIslet of between $4,000,000
and $11,000,000 in gross offering proceeds from the private placement sale of its common stock,
and the like.   As of March 21, 2002, the Company was advised by MicroIslet that it had satisfied
the minimum funding requirements under its private placement offering.

Business of MicroIslet and Related Risk Factors

MicroIslet is a biotechnology company engaged in the research, development, and
commercialization of patented technologies in the field of transplantation therapy for patients
with diabetes. MicroIslet has licensed several technologies from Duke University Medical Center
developed over the last decade for the isolation, culture, storage, and encapsulation
(microencapsulation) of insulin-producing islet cells from porcine sources. These proprietary
methods are among advances in the field of transplantation that may enable diabetic patients to
become free from insulin injections. MicroIslet's ultimate goal is to offer a solution towards a
cure for diabetes worldwide.

There are many risk factors related to the business of MicroIslet.  It is in the early stage of
development and has only a limited operating history. Its product is in the early stages of
development, has never generated any sales and requires extensive testing before
commercialization.  In fact, MicroIslet does not expect its product candidate to be commercially
available for at long as five years.  Based upon the limited history of MicroIslet and the current
status of it product development activities, any potential investor in the Company should
consider the risks associated with the proposed acquisition of MicroIslet, including the ability of
MicroIslet either alone, or in conjunction with the Company to:

- 	obtain the financial resources necessary to develop, test, manufacture and
market any proposed products;

- 	engage corporate partners to assist in developing, testing, manufacturing
and marketing any proposed products;

- 	satisfy the requirements of clinical trial protocols, including patient
enrollment;

- 	establish and demonstrate the clinical efficacy and safety of any products;

- 	obtain necessary regulatory approvals; and

- 	market any products to achieve acceptance and use by the medical
community in general.

Proposed Terms of Share Exchange Transaction.

Under the proposed terms of the share exchange transaction between the Company and
MicroIslet, the Company will acquire all of the issued and outstanding common stock of
MicroIslet solely in exchange for common stock of the Company.  The proposed exchange ratio
is 1:1.  Therefore, the Company will issue one share of common stock for each share of
MicroIslet common stock to be acquired.

The Company currently has a total of 3,408,395 shares of common stock issued and
outstanding (after taking into account a 1.6184211:1 forward split of its issued and outstanding
common stock on February 15, 2002).  MicroIslet is expected to have a minimum of
approximately 19,196,459 and a maximum of approximately 20,363,126 shares of common stock
issued and outstanding immediately prior to completion of the share exchange.  Thus, the
Company will be required to issue between 19,196,459 and 20,363,126 shares in order to
complete the share exchange transaction, thereby increasing its total issued and outstanding
common stock to between 22,771,521 and 23,771,521 shares and resulting in a change in control
of the Company.

Administrative Offices

The Company currently maintains a mailing address at 30 Sembrado, Rancho Santa
Margarita, California  92688,  which is the office address of its President.  The Company's
telephone number there is (949) 459-1220.  Other than this mailing address, the Company does
not currently maintain any other office facilities.  The Company pays no rent or other fees for the
use of this mailing address.

Employees

The Company is a development stage company and currently has no employees.

ITEM 2.   DESCRIPTION OF PROPERTY.

The Company currently maintains a mailing address at  30 Sembrado , Rancho Santa
Margarita, California  92688, which is the address of its President.  The Company pays no rent
for the use of this mailing address.  The Company does not believe that it will need to maintain
an office at any time in the foreseeable future in order to carry out its plan of operations
described herein.  The Company's telephone number is (949) 459-1220.

The Company currently has no investments in real estate, real estate mortgages, or real
estate securities, and does not anticipate making any such investments in the future.

ITEM 3.   LEGAL PROCEEDINGS.

The Company is not a party to any pending legal proceedings, and no such proceedings
are known to be contemplated.

No director, officer or affiliate of the Company, and no owner of record or beneficial
owner of more than 5.0% of the securities of the Company, or any associate of any such director,
officer or security holder is a party adverse to the Company or has a material interest adverse to
the Company in reference to pending litigation.

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

No matters were submitted to a vote of the security holders of the Company during the
fourth quarter of the fiscal year which ended December 31, 2001.

PART II

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

Our common stock is traded in the over-the-counter market and has been approved for
trading on the OTC Bulletin Board under the symbol "ALDI," since approximately November
16, 2000.   As of March 25, 2002, the closing bid price on the over-the-counter Bulletin Board
was $4.80. The following table sets forth representative high and low bid prices by calendar
quarter as reported on the OTC Bulletin Board since December 18, 2001, the date of its first
trade.  Since the level of trading in our common stock has been limited, the bid prices may not be
indicative of the value of the common stock or the existence of an active market.  The OTC
Bulletin Board quotations reflect inter-dealer prices without retail markup, mark-down, or other
fees or commissions, and may not necessarily represent actual transactions.

|                                | Low   | High 
|------------------------------- | ----- | -----
|Quarter Ended December 31, 2001 | $0.70 | $1.05
|Quarter Ended March 31, 2002    | $0.70 | $6.20

As of December 31, 2001, the Company's securities were held of record by a total of
approximately 16 persons.



No dividends have been declared or paid on the Company's securities, and it is not
anticipated that any dividends will be declared or paid in the foreseeable future.

The closing sale price of the Company's common stock as reported on the OTCBB on
March 25, 2002 was $4.80 per share. The prices presented are bid prices which represent prices
between broker-dealers and don't include retail mark-ups and mark-downs or any commission to
the dealer.  The prices may not reflect actual transactions.

As of December 31, 2001, there were approximately 16 stockholders of record.

There have been no cash dividends declared or paid on the shares of common stock, and
management does not anticipate payment of dividends in the foreseeable future.

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

Liquidity and Capital Resources

As of December 31, 2001, the Company remains in the development stage.  It has limited
operating history and as of December 31, 2001,  the Company's balance sheet reflects no assets
and no liabilities.   The Company intends to reduce operating expenditures to a minimal amount
and to investigate the potential acquisition of or combination with an operating entity for which
the Company's status as a reporting company under the Exchange Act of 1934 is deemed
valuable.

The Company will require additional capital in order to meet its cash needs for the next
year, including the costs of compliance with the continuing reporting requirements of the
Securities Exchange Act of 1934, as amended.  No specific commitments to provide additional
funds have been  made by management or other stockholders, nor does the Company have any
current plans, proposals, arrangements or understandings with respect to the sale or issuance of
additional securities to raise necessary capital.   Accordingly, there can be no assurance that any
additional funds will be available to the Company to allow it to cover its expenses.
Notwithstanding the foregoing, to the extent that additional funds are required, the Company
anticipates receiving such funds in the form of advancements from current shareholders without
issuance of additional shares or other securities, or through the private placement of restricted
securities rather than through a public offering.

Plan of Operations

For the fiscal year ending December 31, 2002,  the Company expects to continue its
efforts to locate a suitable business acquisition candidate and thereafter to complete a business
acquisition transaction.  The Company anticipates incurring a loss for the fiscal year as a result of
expenses associated with compliance with the reporting requirements of the Securities Exchange
Act of 1934, and expenses associated with locating and evaluating acquisition candidates. The
Company does not expect to generate revenues until it completes a business acquisition, and,
depending upon the performance of the acquired business,  it may also continue to operate at a
loss after completion of a business combination.

Subsequent Event

Subsequent to the end of the fiscal year, the Company agreed in principle to acquire all of
the issued and outstanding common stock of MicroIslet, Inc, a Nevada corporation, in a share
exchange transaction.   The Company is actively pursuing this acquisition. (See "DESCRIPTION
OF BUSINESS - Subsequent Events").  Management currently anticipates that the proposed
acquisition will be completed.  However,  there is no assurance that it will be completed and as
of the date of this report on Form 10KSB, a definitive Agreement for Share Exchange has not yet
been executed.

In the event the proposed acquisition is completed, it is expected to have a significant
impact on the Company's plan of operations and its need for additional capital during the
remainder of the fiscal year ending December 31, 2002.  In preparation of this report on Form
10KSB for the fiscal year ending December 31, 2001, current Company management has not
attempted to quantify or to provide information  regarding the nature and extent of the impact
which completion of this proposed transaction might be likely to have on the Company's plan of
operations or its need for additional capital during the fiscal year ending December 31, 2002.

ITEM 7.   FINANCIAL STATEMENTS.

See following pages.

******ALD SERVICES, INC.**

(A Development Stage Company)

Report of Independent Public Accountants

Balance Sheet

Statements of Operations

Statements of Cash Flows

Statement of Stockholders' Deficit

Notes to Financial Statements

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

The Board of Directors and Stockholders of ALD Services, Inc.



We have audited the accompanying balance sheet of ALD Services, Inc. (a development stage
company) as of December 31, 2001, and the related statements of operations, stockholders' equity,
and cash flows for the year ended December 31, 2001, and for the period from November 10, 1998
(inception) through December 31, 2001.  These financial statements are the responsibility of the
Company's management.  Our responsibility is to express an opinion on these financial statements
based on our audit.



We conducted our audit in accordance with auditing standards generally accepted in the United
States of America.  Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation.  We believe
that our audit provides a reasonable basis for our opinion.



In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of ALD Services, Inc. as of December 31, 2001, and the
results of its operations and cash flows for the year ended December 31, 2001, and for the period
from inception (November 10, 1998) to December 31, 2001 in conformity with accounting principles
generally accepted in the United States.



The accompanying financial statements have been prepared assuming that the Company will
continue as a going concern.  As discussed in Note 6 to the financial statements, the Company has
sustained operating losses since its inception and has deficits in working capital and equity which
raises substantial doubt about its ability to continue as a going concern.  Management's plans in
regard to these matters are described in Note 6.  The financial statements do not include any
adjustments related to the recoverability and classification of asset carrying amounts or the amount
and classification of liabilities that might result should the Company be unable to continue as a going
concern.



Denver, Colorado

March 25, 2002

**COMISKEY & CO**

**PROFESSIONAL CORPORATION******

****ALD Services, Inc.

(A Development Stage Company)

**BALANCE SHEET**



|                                | **ASSETS**                                            |                                                     |                       |                      
|------------------------------- | ----------------------------------------------------- | --------------------------------------------------- | --------------------- | ---------------------
|                                |                                                       |                                                     |                       |                      
|CURRENT ASSETS**                |                                                       |                                                     | $                   -
|                                |                                                       |                                                     |                       |                      
|                                |                                                       | ****************TOTAL ASSETS                        | ****                  |                      
|                                |                                                       |                                                     |                       |                      
|                                | ****************LIABILITIES AND
STOCKHOLDERS' DEFICIT | ****                                                |                       |                      
|                                |                                                       |                                                     |                       |                      
|****CURRENT LIABILITIES         | ****                                                  |                                                     | $                   -
|                                |                                                       |                                                     |                       |                      
|                                |                                                       | ********TOTAL LIABILITIES                           | ****                  |                      
|                                |                                                       |                                                     |                       |                      
|********STOCKHOLDERS' DEFICIT** |                                                       |                                                     |                      
|                                | Common stock, $0.001 par value; 25,000,000 shares     |                                                     |                      
|                                |                                                       | authorized; 3,408,395 shares issued and outstanding |                       | 3,408                
|                                | Additional paid in capital                            |                                                     |                       | (63)                 
|                                | Deficit accumulated during the development stage      |                                                     | (3,345)              
|                                |                                                       |                                                     |                       |                      
|                                |                                                       |                                                     |                       |                      
|                                |                                                       |                                                     |                       |                      
|                                |                                                       | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT         |                       | $                   -
|                                |                                                       |                                                     |                       |                      

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

ALD Services, Inc.

(A Development Stage Company)

**STATEMENTS OF OPERATIONS**

|                                     |                                                                          |                                | **For the period**         | ****                       |             
|------------------------------------ | ------------------------------------------------------------------------ | ------------------------------ | -------------------------- | -------------------------- | ------------
|                                     |                                                                          |                                | ************from inception | ****                       |             
|                                     |                                                                          |                                | (November 10, 1998)        | **For the year******      
|****                                 |                                                                          |                                | **to December 31,**        | **ended December 31,******
|****                                 |                                                                          |                                | **2001**                   | **2001**                   | **2000******
|****                                 |                                                                          |                                |                            |                            |             
|****REVENUES                         | $                    22,367                                              | $                       -      | $              22,367     
|                                     |                                                                          |                                |                            |                            |             
|EXPENSES                             |                                                                          |                                |                           
|                                     | ****General and administrative                                           | 25,712                         | 4,550                      | 19,124                    
|                                     |                                                                          |                                |                            |                            |             
|                                     |                                                                          | ********Total expenses         | 25,712                     | 4,550                      | 19,124      
|                                     |                                                                          |                                |                            |                            |             
|NET GAIN/ (LOSS)                     | (3,345)                                                                  | (4,550)                        | 3,243                     
|                                     |                                                                          |                                |                            |                            |             
|Accumulated deficit                  |                                                                          |                                |                           
|                                     | Balance, beginning of period                                             | -                              | 1,205                      | (2,038)                   
|                                     |                                                                          |                                |                            |                            |             
|                                     | Balance, end of period                                                   | $                    (3,345)   | $              (3,345)     | $                1,205    
|                                     |                                                                          |                                |                            |                            |             
|NET GAIN (LOSS) PER SHARE            | $                      (0.00)                                            | $                (0.00)        | $                  0.00   
|                                     |                                                                          |                                |                            |                            |             
|WEIGHTED AVERAGE NUMBER OF SHARES OF |                                                                          |                                |                           
|****                                 | **COMMON STOCK AND COMMON STOCK**

**EQUIVALENTS OUTSTANDING**

******** | ****                 3,366,830 | 3,408,395                  | 3,408,395                 

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



ALD Services, Inc.

(A Development Stage Company)

**STATEMENTS OF CASH FLOWS**

|                                             |                                    |                                           |                                          | **For the period**         | ****                       |             
|-------------------------------------------- | ---------------------------------- | ----------------------------------------- | ---------------------------------------- | -------------------------- | -------------------------- | ------------
|                                             |                                    |                                           |                                          | ************from inception | ****                       |             
|                                             |                                    |                                           |                                          | (November 10, 1998)        | **For the year******      
|****                                         |                                    |                                           |                                          | **to December 31,**        | **ended December 31,******
|****                                         |                                    |                                           |                                          | 2001                       | **2001**                   | **2000******
|******CASH FLOWS FROM OPERATING
ACTIVITIES** |                                    |                                           |                                         
|Net gain (loss)                              | $                 (3,345)          | $           (4,550)                       | $            3,243                      
|Adjustments to reconcile                     |                                    |                                           |                                         
|                                             | net gain (loss) to net cash flows  |                                           |                                          |                           
|                                             | from operating activities:         |                                           |                                          |                           
|                                             |                                    | Shares issued for services                | 125                                      | -                          | -                         
|                                             |                                    | Increase/(decrease) in due to shareholder | -                                        | (1,920)                    | -                         
|                                             |                                    | Decrease/(increase) in current assets     | -                                        | 568                        | -                         
|                                             |                                    |                                           |                                          |                            |                            |             
|                                             |                                    |                                           | Net cash flows from operating activities | (3,220)                    | (5,902)                    | 3,243       
|                                             |                                    |                                           |                                          |                            |                            |             
|CASH FLOWS FROM INVESTING
ACTIVITIES         | -                                  | -                                         | -                                       
|                                             |                                    |                                           |                                          |                            |                            |             
|                                             |                                    |                                           | Net cash flows from investing activities | -                          | -                          | -           
|                                             |                                    |                                           |                                          |                            |                            |             
|CASH FLOWS FROM FINANCING
ACTIVITIES         |                                    |                                           |                                         
|                                             | ******** Shareholder contributions | 1,920                                     | 1,920                                    | -                         
|                                             | Issuance of common stock           | 1,300                                     | -                                        | -                         
|                                             |                                    |                                           |                                          |                            |                            |             
|                                             |                                    |                                           | Net cash flows from financing activities | 3,220                      | 1,920                      | -           
|                                             |                                    |                                           |                                          |                            |                            |             
|NET INCREASE (DECREASE) IN CASH              |                                    |                                           |                                         
|                                             | ****AND CASH EQUIVALENTS           | -                                         | (3,982)                                  | 3,243                     
|                                             |                                    |                                           |                                          |                            |                            |             
|********CASH AND CASH EQUIVALENTS,           |                                    |                                           |                                         
|                                             | ****BEGINNING OF PERIOD            | -                                         | 3,982                                    | 739                       
|                                             |                                    |                                           |                                          |                            |                            |             
|********CASH AND CASH EQUIVALENTS,           |                                    |                                           |                                         
|                                             | ****END OF PERIOD                  | $                    -                    | $                 -                      | $        3,982            
|                                             |                                    |                                           |                                          |                            |                            |             



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









ALD Services, Inc.

(A Development Stage Company)

**STATEMENT OF STOCKHOLDERS' EQUITY**

For the period from inception (November 10, 1998) to December 31, 2001



|                              |                                    |                 |                      |                  |                    | Deficit             | ****             
|----------------------------- | ---------------------------------- | --------------- | -------------------- | ---------------- | ------------------ | ------------------- | -----------------
|                              |                                    |                 |                      |                  |                    | ********accumulated | ****             
|                              |                                    |                 | ******Common stock** | **Additional**   | **during the**     | **Total**          
|****                          |                                    |                 | **Number of**        | ****             | **paid-in**        | **development**     | **stockholders'**
|****                          |                                    |                 | **shares**           | **Amount**       | **capital**        | **stage**           | **equity**       
|****                          |                                    |                 |                      |                  |                    |                     |                  
|November 1998                 |                                    |                 |                      |                  |                   
|                              | Donated capital                    | -               | $                -   | $            295 | $                - | $            295   
|                              |                                    |                 |                      |                  |                    |                     |                  
|November 1998                 |                                    |                 |                      |                  |                   
|                              | Founder shares                     |                 |                      |                  |                    |                    
|                              | issued for cash                    | 3,075,000       | 95                   | 5                |                    | 100                
|                              |                                    |                 |                      |                  |                    |                     |                  
|Net loss for the period ended |                                    |                 |                      |                  |                   
|December 31, 1998             | -                                  | -               | -                    | (352)            | (352)             
|                              |                                    |                 |                      |                  |                    |                     |                  
|Balance, December 31, 1998    | 3,075,000                          | 95              | 300                  | (352)            | 43                
|                              |                                    |                 |                      |                  |                    |                     |                  
|April 1999                    |                                    |                 |                      |                  |                    |                    
|                              | Rule 504 offering issued           |                 |                      |                  |                    |                    
|                              | for cash and services              | 333,395         | 10                   | 1,020            |                    | 1,030              
|                              |                                    |                 |                      |                  |                    |                     |                  
|June 1999                     |                                    |                 |                      |                  |                    |                    
|                              | Adjust for 20:1 stock split        |                 | 1,320                | (1,320)          |                    | -                  
|                              |                                    |                 |                      |                  |                    |                     |                  
|Net loss for the year ended   |                                    |                 |                      |                  |                   
|December 31, 1999             | -                                  | -               | -                    | (1,686)          | (1,686)           
|                              |                                    |                 |                      |                  |                    |                     |                  
|Balance, December 31, 1999    | 3,408,395                          | 1,425           | -                    | (2,038)          | (613)             
|                              |                                    |                 |                      |                  |                    |                     |                  
|Net gain for the year ended   |                                    |                 |                      |                  |                   
|December 31, 2000             | -                                  | -               | -                    | 3,243            | 3,243             
|                              |                                    |                 |                      |                  |                    |                     |                  
|Balance, December 31, 2000    | 3,408,395                          | 1,425           | -                    | 1,205            | 2,630             
|                              |                                    |                 |                      |                  |                    |                     |                  
|December 2001                 |                                    |                 |                      |                  |                   
|                              | Shareholder contribution           |                 | 681                  | 1,239            |                    | 1,920              
|                              |                                    |                 |                      |                  |                    |                     |                  
|February 2002                 |                                    |                 |                      |                  |                   
|                              | Adjust for 1.6184211:1 stock split | 1,302           | (1,302)              |                  | -                 
|                              |                                    |                 |                      |                  |                    |                     |                  
|Net loss for the year ended   |                                    |                 |                      |                  |                   
|December 31, 2001             | -                                  | -               | -                    | (4,550)          | (4,550)           
|                              |                                    |                 |                      |                  |                    |                     |                  
|Balance, December 31, 2001    | 3,408,395                          | $         3,408 | $            (63)    | $        (3,345) | $                -
|                              |                                    |                 |                      |                  |                    |                     |                  

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

ALD Services, Inc.

(A Development Stage Company)

**NOTES TO FINANCIAL STATEMENTS**

December 31, 2001

**1.  Summary of Significant Accounting Policies**

Development Stage Activities and Basis of Presentation

ALD Services, Inc. (a development stage company) (the "Company") was formed to provide
consulting services to startup enterprises.  Incorporated in the State of Nevada on November 10,
1998, the Company, through its principal Frank Danesi, Jr., conducted minimal consulting
operations up to and during the year 2000.  In November 2001, in a transaction more fully
described in Note 6 to the financial statements, the Company entered into a stock purchase
agreement and a change in control of the Company occurred shortly thereafter.  The focus of the
Company will now be the acquisition of one or more business opportunities utilizing the
Company's status as a public shell.  The Company has agreed in principle to a business
combination as more fully described in Note 7.

The Company is a new enterprise in the development stage as defined by Statement No. 7 of the
Financial Accounting Standards Board, since it has derived only minimal revenues from its
activities to date.

******Accounting Method**

The Company records income and expenses on the accrual method.

**Fiscal Year**

The fiscal year of the Company is December 31.

**Financial Instruments**

Unless otherwise indicated, the fair value of all reported assets and liabilities that represent
financial instruments (none of which are held for trading purposes) approximate the carrying
values of such amount.

******Statement of Cash Flows**

For purposes of the statement of cash flows, the Company considers all highly liquid debt
instruments purchased with an original maturity of three months or less to be cash equivalents.

**Loss per share**

Loss per share has been calculated based upon the weighted average shares outstanding.

**Use of Estimates**

The preparation of the Company's financial statements in conformity with generally accepted
accounting principles requires the Company's management to make estimates and assumptions
that effect the amounts reported in these financial statements and accompanying notes.  Actual
results could differ from those estimates.

**Consideration of Other Comprehensive Income Items**

SFAS No. 130 - Reporting Comprehensive Income, requires companies to present
comprehensive income (consisting primarily of net income plus other direct equity changes and
credits) and its components as part of the basic financial statements.  For the period ended
December 31, 2001, the Company's financial statements do not contain any changes in equity
that are required to be reported separately in comprehensive income.



**Stock-Based Compensation**

SFAS No. 123 - Accounting for Stock-Based Compensation allows companies to choose whether
to account for stock-based compensation under the method prescribed in Accounting Principles
Board Opinion No. 25 ("APB 25") or use the fair value method described in SFAS No. 123.  The
Company continues to follow the accounting measurement provisions of APB 25 and
implements the disclosure provisions of SFAS 123.

**Income Taxes**

The Company accounts for income taxes in accordance with SFAS No. 109 - Accounting for
Income Taxes.  Deferred tax assets and liabilities are recognized with respect to the tax
consequences attributable to differences between the financial statement carrying values and tax
basis of existing assets and liabilities.  Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which these temporary
differences are expected to be recovered or settled.  Further, the effect on deferred tax assets****and
liabilities of changes in tax rates is recognized in income in the period that includes the
enactment date.****

**2.	Stockholders' Equity**

The Company is authorized to issue 25,000,000 shares of its $0.001 par value common stock.

On November 12, 1998, the Company issued 1,900,000 shares of its $0.001 par value common
stock for cash of $100.

On April 2, 1999, the Company issued 206,000 shares of its $0.001 par value common stock for
cash of $905 and services rendered in the amount of $125, pursuant to Regulation D, Rule 504.

On June 30, 1999, the Company effected a 20 for 1 forward stock split of its $0.001 par value
common stock

On December 14, 2001 the former president forfeited his receivable in the amount of $1,920,
contributing it to additional paid in capital, and restoring common stock to its par value.

On February 15, 2002 the Company effected a 1.6184211:1 forward stock split of its $0.001 par
value common stock (see note 7).  All shares have been adjusted to reflect this split.

- **Related Party Transactions**

****Prior to the change in control, which occurred in December 2001, the Company maintained its
offices with its president for which it paid no rent.  Additionally, amounts payable to the former
president in the amount of $1,900 were forgiven as part of the Stock Purchase Agreement (see
note 6).

- **Income Taxes**

A deferred tax asset of approximately $1,800 at December 31, 2001 relates to net operating
losses and deductible temporary differences due to development stage costs.  Management does
not consider it more likely than not that the deferred tax asset will be realized, primarily because
such benefits are limited upon a change of control in the Company.  Therefore, a full valuation
allowance has been established against the deferred tax asset.  The valuation allowance increased
by $1,800 from the prior year.  The net operating losses will expire in 2021.

**5.		Going Concern**

The accompanying financial statements have been prepared on a going concern basis.  The
Company has limited operating history and will need to raise additional capital to fund its
planned operations.  The Company has no working capital as of December 31, 2001.  The
Company intends to reduce operating expenditures to a minimal amount and to investigate the
potential acquisition of or combination with an operating entity for which the Company's status
as a reporting company under the 1934 Exchange Act is deemed valuable.  Although the
Company is actively pursuing a business combination with MicroIslet (see Note 7), the
agreement has not been executed to date.

**6.	     Change in Ownership**

On December 14, 2001, there was a change of control of the Company.  The change of control
occurred as a result of closing under a Stock Purchase Agreement (the "Agreement"), dated
November 30, 2001, between the Company, Don and Bonnie Saunders Family Trust, as Buyer
and Agent for certain nominees, and Frank Danesi, Jr., as Seller.

Under the terms of the Agreement, the Buyer and Agent acquired 1,900,000 issued and
outstanding common stock of the Company from the Seller for a cash purchase price of
$300,000.  The Buyer acquired the shares partially on its own behalf, and partially as agent on
behalf of certain nominees.  At the time of closing under the Agreement, the Company had a total
of 2,106,000 shares of common stock issued and outstanding.  Thus, the shares acquired by the
Buyer constitute approximately 90.22% of the Company's issued and outstanding common stock.

Prior to closing under the Agreement, Frank Danesi, Jr. had been the sole officer and director of
the Company.  In conjunction with closing under the Agreement, Frank Danesi, Jr. appointed
Thomas K. Russell as a director of the Company and then submitted his resignation as an officer
and director.



**7.	Subsequent Events**

The Company has agreed in principle to acquire all of the issued and outstanding common stock
of MicroIslet, Inc. a Nevada corporation, ("MicroIslet") in a share exchange transaction.  The
transaction is pending the successful completion of certain second stage financing currently being
conducted by MicroIslet which is expected to net between $3,000,000 and $10,000,000.

**Forward Split**.

On February 15, 2002, the Company completed a 1.6184211:1 forward split which increased the
Company's issued and outstanding common stock from 2,106,000 shares to 3,408,395 shares.
There was no change in the par value or in any other rights and preferences of the outstanding
common stock as a result of this forward split. The plan to complete a forward split was
negotiated as one element of the proposed share exchange with MicroIslet. As a result of the
forward split, the current shareholders of the Company will now own a larger percentage of the
total number of Company shares to be issued and outstanding in the event the proposed share
exchange transaction is completed.

************

**Authorization for Issuance of Stock Purchase Warrants**

On February 15, 2002, the Company's Board of Directors authorized the issuance of up to
1,000,000 Class A Common Stock Purchase Warrants and up to 500,000 Class B Common Stock
Purchase Warrants. The Board authorized the issuance of the Warrants pursuant to the terms of a
Warrant Agreement dated March 1, 2002, between the Company and Pacific Stock Transfer
Company, 5844 S. Pecos, Suite D, Las Vegas, Nevada 89120, as Warrant Agent.

It is the intention of the Board of Directors to issue the Warrants as a form of consideration to
individuals who provide business consulting services to the Company. The Company will need to
amend its articles of incorporation to increase the number of authorized common shares to
accommodate the issuance of shares upon exercise of these warrants and completion of the
proposed share exchange transaction with MicroIslet.

Each outstanding Class A Warrant will entitle the holder thereof to purchase one share of
Company common stock at a price of $6.00 per share and each outstanding Class B Warrant will
entitle the holder thereof the purchase one share of Company common stock at a price of $12.00
per share. Subject to restrictions and limitations contained in the Warrant Agreement, both the
Class A and the Class B Warrants will generally be exercisable by the holders thereof at any time
at any time between August 1, 2002 and July 31, 2007.  The Warrant Agreement requires the
Company to register the shares underlying the Warrants and to maintain an effective registration
statement during such time as the Warrants and underlying shares remain outstanding.

G. BRAD BECKSTEAD

***Certified Public Accountant*****

330 E. Warm Springs

Las Vegas, NV 89119

702.257.1984

702.362.0540 (fax)

**INDEPENDENT AUDITOR'S REPORT**



April 1, 2002

Board of Directors

ALD Services, Inc.

Las Vegas, NV

I have audited the Balance Sheets of ALD Services, Inc. (the "Company") (A Development Stage
Company), as of December 31, 2000 and 1999, and the related Statements of Operations,
Stockholders' Equity, and Cash Flows for the years then ended, and for the period November 10,
1998 (Date of Inception) to December 31, 2000.  These financial statements are the responsibility
of the Company's management.  My responsibility is to express an opinion on these financial
statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards.  Those standards
require that I plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statement presentation.
An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.  I believe that my
audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of ALD Services, Inc. (A Development Stage Company) as of December
31, 2000 and 1999, and the results of its operations and cash flows for the years then ended, and
for the period November 10, 1998 (Date of Inception) to December 31, 2000, in conformity with
generally accepted accounting principles.

The accompanying financial statements have been prepared assuming the Company will continue
as a going concern.  As discussed in Note 3 to the financial statements, the Company has had
limited operations and have not commenced planned principal operations.  This raises substantial
doubt about its ability to continue as a going concern.  Management's plan in regard to these
matters are also described in Note 3.  The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.

G. Brad Beckstead, CPA



**G. BRAD BECKSTEAD**

***Certified Public Accountant*****

330 E. Warm Springs

Las Vegas, NV 89119

702.257.1984

702.362.0540 (fax)

April 1, 2002

To Whom It May Concern:

I have issued my report dated April 1, 2002, accompanying the financial statements of ALD
Services, Inc. on Form 10-KSB/A for the period November 10, 1998 (inception date) through
December 31, 2000.  I hereby consent to the incorporation by reference of said report in the
Annual Report of ALD Services, Inc. on Form 10-KSB/A (File No. 000-27035).

Signed,

G. Brad Beckstead, CPA



**ALD Services, Inc.**

(A Development Stage Company)

Balance Sheets

as of

December 31, 2000 and 1999

and

Statements of Operations,

Stockholders' Equity, and

Cash Flows

for the years ending

December 31, 2000 and 1999

and for the period

November 10, 1998 (Date of Inception)

through

December 31, 2000

******TABLE OF CONTENTS**



Balance Sheets

Statements of Operations

Statements of Stockholders' Equity

Statements of Cash Flows

Footnotes



ALD Services, Inc.

(A Development Stage Company)

Balance Sheets

|                                               |                                                   |                                         |   |   |       |       | December 31, |        
|---------------------------------------------- | ------------------------------------------------- | --------------------------------------- | - | - | ----- | ----- | ------------ | -------
|                                               |                                                   |                                         |   |   |       |       | 2000         |        
|**Assets**                                     |                                                   |                                         |   |   |       |       |              |        
|                                               |                                                   |                                         |   |   |       |       |              |        
|Current assets:                                |                                                   |                                         |   |   |       |       |             
|                                               | Cash                                              |                                         |   |   | $     | 3,982 |              | $      
|                                               |                                                   | Total current assets                    |   |   |       | 3,982 |              |        
|                                               |                                                   |                                         |   |   |       |       |              |        
|                                               |                                                   |                                         |   |   |       |       | $            | 3,982  
|                                               |                                                   |                                         |   |   |       |       |              |        
|Liabilities and Stockholders' Equity (Deficit) |                                                   |                                         |   |   |       |       |             
|                                               |                                                   |                                         |   |   |       |       |              |        
|Current liabilities:                           |                                                   |                                         | $ | - |       | $     | -           
|                                               |                                                   |                                         |   |   |       |       |              |        
|Stockholders' equity (deficit):                |                                                   |                                         |   |   |       |       |             
|                                               | Common stock, $0.001 par value, 25,000,000 shares |                                         |   |   |       |       |              |        
|                                               |                                                   | authorized, 2,106,000 shares issued and |   |   |       |       |              |        
|                                               |                                                   | outstanding as of 12/31/00 and 12/31/99 |   |   |       | 2,106 |              |        
|                                               | Additional paid-in capital                        |                                         |   |   | 2,619 |       |              | 2,619  
|                                               | (Deficit) accumulated during development stage    |                                         |   |   | (743) |       |              | (3,986)
|                                               |                                                   |                                         |   |   |       |       |              | 3,982  
|                                               |                                                   |                                         |   |   |       |       |              |        
|                                               |                                                   |                                         |   |   |       |       | $            | 3,982  
|                                               |                                                   |                                         |   |   |       |       |              |        

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

ALD Services, Inc.

(A Development Stage Company)

Statements of Operations

|                                                                                |                |   |        |           |                     |         |              |      |                |        | November 10,
1998
|------------------------------------------------------------------------------- | -------------- | - | ------ | --------- | ------------------- | ------- | ------------ | ---- | -------------- | ------ | -----------------
|                                                                                |                |   |        |           | For the years ended |         |              |      | (Inception) to
|                                                                                |                |   |        |           | December 31,        |         | December 31, |      | December 31,  
|                                                                                |                |   |        |           | 2000                |         |              | 1999 |                | 2000  
|                                                                                |                |   |        |           |                     |         |              |      |                |        |                  
|                                                                                |                |   |        |           |                     |         |              |      |                |        |                  
|Revenue                                                                         |                | $ | 22,367 |           | $                   | -       |              | $    | 22,367        
|                                                                                |                |   |        |           |                     |         |              |      |                |        |                  
|Expenses:                                                                       |                |   |        |           |                     |         |              |      |               
|General & administrative expenses                                               |                |   | 19,124 |           |                     | 3,634   |              |      | 23,110        
|                                                                                | Total expenses |   |        | 19,124    |                     |         | 3,634        |      |                | 23,110
|                                                                                |                |   |        |           |                     |         |              |      |                |        |                  
|Net income (loss)                                                               |                | $ | 3,243  |           | $                   | (3,634) |              | $    | (743)         
|                                                                                |                |   |        |           |                     |         |              |      |                |        |                  
|                                                                                |                |   |        |           |                     |         |              |      |                |        |                  
|Weighted average number of

common shares outstanding - basic and fully diluted | 2,106,000      |   |        | 2,054,641 |                     |         |             
|                                                                                |                |   |        |           |                     |         |              |      |                |        |                  
|Net income (loss) per share - basic and fully diluted                           |                | $ | 0.00   |           | $                   | (0.00)  |              |      |               
|                                                                                |                |   |        |           |                     |         |              |      |                |        |                  

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

ALD Services, Inc.

(A Development Stage Company)

Statements of Changes in Stockholder' Equity (Deficit)

|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             | (Deficit)   |         |       | 
|-------------------------- | ---------------------------- | ------- | --------- | ----- | --- | ------------ | ------- | ---------- | ------- | ------- | ------- | ------------- | ----------- | ----------- | ------- | ----- | 
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             | Accumulated |         | Total
|                           |                              |         |           |       |     | Common Stock |         | Additional |         | During  |         | Stockholders'
|                           |                              |         |           |       |     |              |         |            |         |         | Paid-in |               | Development |             | Equity 
|                           |                              |         |           |       |     | Shares       |         | Amount     |         | Capital |         | Stage         |             | (Deficit)  
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|November 1998              |                              |         |           |       |     |              |         |            |         |         |         |               |             |            
|                           | Donated capital              |         | -         |       | $   | -            |         | $          | 295     |         | $       | -             |             | $           | 295    
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|November 1998              |                              |         |           |       |     |              |         |            |         |         |         |               |             |            
|                           | Founder shares               |         |           |       |     |              |         |            |         |         |         |               |             |             |        
|                           | issued for cash              |         | 1,900,000 |       |     | 1,900        |         |            | (1,800) |         |         |               |             |             | 100    
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|Net (loss)                 |                              |         |           |       |     |              |         |            |         |         |         |               |             |            
|                           | November 10, 1998            |         |           |       |     |              |         |            |         |         |         |               |             |             |        
|                           | (inception) to               |         |           |       |     |              |         |            |         |         |         |               |             |             |        
|                           | December 31, 1998            |         |           |       |     |              |         |            |         |         |         | (352)         |             |             | (352)  
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|Balance, December 31, 1998 | 1,900,000                    |         |           | 1,900 |     |              | (1,505) |            |         | (352)   |         |               | 43         
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|March 1999                 |                              |         |           |       |     |              |         |            |         |         |         |               |             |            
|                           | Donated capital              |         |           |       |     |              |         |            | 1,400   |         |         |               |             |             | 1,400  
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|April 1999                 |                              |         |           |       |     |              |         |            |         |         |         |               |             |            
|                           | Rule 504 offering            |         |           |       |     |              |         |            |         |         |         |               |             |             |        
|                           | issued for cash and services | 206,000 |           |       | 206 |              |         | 824        |         |         |         |               |             | 1,030      
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|December 1999              |                              |         |           |       |     |              |         |            |         |         |         |               |             |            
|                           | Donated capital              |         |           |       |     |              |         |            | 1,900   |         |         |               |             |             | 1,900  
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|Net (loss)                 |                              |         |           |       |     |              |         |            |         |         |         |               |             |            
|                           | For the year ended           |         |           |       |     |              |         |            |         |         |         |               |             |             |        
|                           | December 31, 1999            |         |           |       |     |              |         |            |         |         |         | (3,634)       |             |             | (3,634)
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|Balance, December 31, 1999 | 2,106,000                    |         |           | 2,106 |     |              | 2,619   |            |         | (3,986) |         |               | 739        
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|Net income                 |                              |         |           |       |     |              |         |            |         |         |         |               |             |            
|                           | For the year ended           |         |           |       |     |              |         |            |         |         |         |               |             |             |        
|                           | December 31, 2000            |         |           |       |     |              |         |            |         |         |         | 3,243         |             |             | 3,243  
|                           |                              |         |           |       |     |              |         |            |         |         |         |               |             |             |         |       | 
|Balance, December 31, 2000 | 2,106,000                    |         | $         | 2,106 |     | $            | 2,619   |            | $       | (743)   |         | $             | 3,982      

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

ALD Services, Inc.

(A Development Stage Company)

Statements of Cash Flows

|                                                 |                                      |       |       |   |         |                    |        |                    |       |                |  | November 10,
1998
|------------------------------------------------ | ------------------------------------ | ----- | ----- | - | ------- | ------------------ | ------ | ------------------ | ----- | -------------- |  | -----------------
|                                                 |                                      |       |       |   |         | For the year ended |        | For the year ended |       | (Inception) to
|                                                 |                                      |       |       |   |         | December 31,       |        | December 31,       |       | December 31,  
|                                                 |                                      |       |       |   |         | 2000               |        | 1999               |       | 2000          
|**Cash flows from operating activities**         |                                      |       |       |   |         |                    |        |                    |      
|Net income (loss)                                |                                      | $     | 3,243 |   | $       | (3,634)            |        | $                  | (743)
|                                                 | Shares issued for services           |       |       | - |         |                    | 125    |                    |       | 125           
|Net cash provided (used) by operating activities |                                      | 3,243 |       |   | (3,509) |                    |        | (618)             
|                                                 |                                      |       |       |   |         |                    |        |                    |       |                |  |                  
|                                                 |                                      |       |       |   |         |                    |        |                    |       |                |  |                  
|Cash flows from investing activities             |                                      |       | -     |   |         | -                  |        |                    | -    
|                                                 |                                      |       |       |   |         |                    |        |                    |       |                |  |                  
|Cash flows from financing activities             |                                      |       |       |   |         |                    |        |                    |      
|                                                 | Issuances of common stock            |       |       | - |         |                    | 905    |                    |       | 1,005         
|                                                 | ********Increase in donated capital  |       |       | - |         |                    | 3,300  |                    |       | 3,595         
|Net cash provided by financing activities        |                                      |       | -     |   |         | 4,205              |        |                    | 4,600
|                                                 |                                      |       |       |   |         |                    |        |                    |       |                |  |                  
|Net increase in cash                             |                                      |       | 3,243 |   |         | 696                |        |                    | 3,982
|Cash - beginning                                 |                                      |       | 739   |   |         | 43                 |        |                    | -    
|Cash - ending                                    |                                      | $     | 3,982 |   | $       | 739                |        | $                  | 3,982
|                                                 |                                      |       |       |   |         |                    |        |                    |       |                |  |                  
|Supplemental disclosures:                        |                                      |       |       |   |         |                    |        |                    |      
|                                                 | Interest paid                        |       | $     | - |         | $                  | -      |                    | $     | -             
|                                                 | Income taxes paid                    |       | $     | - |         | $                  | -      |                    | $     | -             
|                                                 |                                      |       |       |   |         |                    |        |                    |       |                |  |                  
|Non-cash transactions:                           |                                      |       |       |   |         |                    |        |                    |      
|                                                 | Shares issued for services           |       | $     | - |         | $                  | 125    |                    | $     | 125           
|                                                 | Number of shares issued for services |       |       | - |         |                    | 25,000 |                    |       | 25,000        

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



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

On or about January 16, 2001, the Company accepted the resignation of its former
independent accountant and appointed a new independent accountant effective for the
accounting period and calendar year ending December 31, 2000.  This change of accountants
was reported in a filing on Form 8-K dated January 16, 2001.

On or about March 13,  2002, the Company appointed a new independent accountant
effective for the accounting period and calendar year ending December 31, 2002.  On April 2,
2002, the Company accepted the resignation of its former independent accountant effective
for the accounting period and calendar year ending December 31, 2001.  Additional
information regarding this recent change of accountants follows.

a)	Previous independent accountants

(i)	Effective April 2, 2002, the Company terminated the appointment of
G. Brad Beckstead, CPA, as its independent accountant effective for the
accounting period ending and calendar year ending December 31, 2001.

(ii)	In connection with its audits for the fiscal years ended December 31,
2000, December 31, 1999,  for the period from November 10, 1998 (Date of
Inception) through December 31, 2000, and through April 2, 2002, there have
been no disagreements with G. Brad Beckstead, CPA, on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements if not resolved to the satisfaction of
G. Brad Beckstead, CPA,  would have caused them to make reference thereto
in their report on the financial statements for such periods.  The report on the
Registrant's financial statements prepared by G. Brad Beckstead, CPA, for the
fiscal years ending December 31, 2000 and December 31, 1999, and for the
period from November 10, 1998 (Date of Inception) through December 31,
2000, contained a going concern qualification but did not contain any other
adverse opinion or disclaimer of opinion and was not qualified or modified as
to any other uncertainty, audit scope or accounting principle.

(iii)	The Registrant's Board of Directors participated in and approved the
decision to change independent accountants through the termination of the
appointment of G. Brad Beckstead, CPA.

(iv)	On April 3, 2002, the Company provided a draft copy of its report on
Form 8K to G. Brad Beckstead, CPA,  requesting their comments on the
information contained herein.  The responsive letter from G. Brad Beckstead,
CPA, indicating their agreement with the statements contained in the aforesaid
report on Form 8K, was filed with and attached as Exhibit A in the report on
Form 8K, which was filed with the Securities and Exchange Commission on
April 5, 2002.

b)	New independent accountants

The Company engaged Comiskey & Co., as its new independent accountants
effective as of March 13, 2002, for the accounting period and calendar year ended
December 31, 2001.   During the two most recent fiscal years and through March 13,
2002, the Company has not consulted with Comiskey & Co, regarding either (i) the
application of accounting principles to a specified transaction, either completed or
proposed; or the type of audit opinion that might be rendered on the Company's
financial statements with a written report or oral advice provided to the Company that
Comiskey & Co concluded was an important factor considered by the Company in
reaching a decision as to the accounting, auditing or financial reporting issue; or (ii)
any matter that was either the subject of a disagreement, as that term is defined in
Item 304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of
Regulation S-K, or a reportable event, as that term is defined in Item 304(a)(1)(v) of
Regulation S-K.



PART  III

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

The directors and executive officers currently serving the Company are as follows:

|Name              | Age | Position  Held and Tenure                 
|----------------- | --- | ------------------------------------------
|Thomas K. Russell | 48  | President and Chairman since December 2001

The director named above will serve until the next annual meeting of the Company's
stockholders.  Thereafter, directors will be elected for one-year terms at the annual
stockholders' meeting.  Officers will hold their positions at the pleasure of the board of
directors, absent any employment agreement, of which none currently exists or is
contemplated.  There is no arrangement or understanding between any of the directors or
officers of the Company and any other person pursuant to which any director or officer was
or is to be selected as a director or officer.

The directors and officers will devote their time to the Company's affairs on an "as
needed" basis, which, depending on the circumstances, could amount to as little as two hours
per month, or more than forty hours per month, but more than likely will fall within the range
of five to ten hours per month.

Biographical Information

Since February, 1998, Mr. Russell has served as Director and President of PCMA, Inc., a
consulting firm specializing in mergers, acquisitions and financings for companies desiring to
trade and access capital in the public markets.   From December 1989 through February 1998,
Mr. Russell served as founder, director, general counsel and chief financial officer of MTR
Gaming Group, Inc., a successful operator of gaming facilities (Nasdaq: MNTG).  From 1979
through 1989, Mr. Russell practiced law in Southern California, specializing in general
business and corporate law, and the representation of alternative health care providers.
During this period, Mr. Russell also represented American Indian tribes, for which he also
served as a legislative lobbyist in Washington, D.C.  From 1971 through 1989, Mr. Russell
served as an officer, director or general counsel for several public and private companies
doing business in the hospitality, petroleum, mining, motion picture, television broadcasting
and wholesale travel industries.

Mr. Russell received a Bachelor of Arts from California State University at Fullerton in
Business Administration in 1975, and received his Juris Doctor from Pepperdine University
School of Law in 1978.  He is licensed by the California State Bar.

Compliance With Section 16(a) of the Exchange Act.

Mr.  Russell has represented to the Company that he will file an Annual Statement of
Changes in Beneficial Ownership on Form 5.

ITEM 10.  EXECUTIVE COMPENSATION.

No officer or director received any remuneration from the Company during the fiscal year.
Until the Company acquires additional capital, it is not intended that any officer or director
will receive compensation from the Company other than reimbursement for out-of-pocket
expenses incurred on behalf of the Company.  As of the date of this Information Statement,
the Company has no stock option, retirement, pension, or profit-sharing programs for the
benefit of directors, officers or other employees.

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

The following table sets forth, as of the end of the Company's most recent fiscal year, the
number of shares of Common Stock owned of record and beneficially by executive officers,
directors and persons who hold 5.0% or more of the outstanding Common Stock of the
Company.  Also included are the shares held by all executive officers and directors as a
group.

|**Name and address of Beneficial Owner
(1)**                                                   | **Shares Beneficially
Owned** | **Percentage
Beneficially Owned**
|---------------------------------------------------------------------------------------------- | ----------------------------- | ---------------------------------
|Don and Bonnie Saunders Family Trust

900 E. Desert Inn Road,  Apt. 521

Las Vegas, NV  89109. | 1,445,000 (2)                 | 68.61%                           
|Thomas K. Russell (3)

30 Sembrado

Rancho Santa Margarita, CA  92688                          | 170,000                       | 8.07%                            
|Mark C. Russell (4)

30 Sembrado

Rancho Santa Margarita, CA  92688                            | 85,000                        | 4.04%                            
|All directors and executive officers as a
group  (1person)                                     | 170,000                       | 8.07%                            



(1)

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

(2)

Includes 300,000 shares owned by the children of Don and Bonnie Saunders as to which the
Don and Bonnie Saunders Family Trust may be deemed to be the beneficial owner.



(3)

Mr. Russell is the sole officer and director of  the Company.

(4)

Mark C. Russell,  is the brother and business associate of Thomas K. Russell.

Forward Split.

On February 15, 2002, the Company completed a 1.6184211:1 forward split which increased
the Company's issued and outstanding common stock from 2,106,000 shares to 3,408,395
shares.  There was no change in the par value or in any other rights and preferences of the
outstanding common stock as a result of this forward split.  The plan to complete a forward
split was negotiated as one element of the proposed share exchange with MicroIslet.

Authorization for Issuance of Stock Purchase Warrants.

On February 15, 2002, the Company's Board of Directors authorized the issuance of up to
1,000,000 Class A Common Stock Purchase Warrants and up to 500,000 Class B Common
Stock Purchase Warrants.  The Board authorized the issuance of the Warrants pursuant to the
terms of a Warrant Agreement dated March 1, 2002, between the Company and Pacific Stock
Transfer Company, 5844 S. Pecos, Suite D, Las Vegas, Nevada 89120.  The form of Warrant
Agreement was filed as an exhibit to a report on Form 8K dated March 1, 2002, and is
incorporated herein by reference.   The intention of the Board of Directors in authorizing the
Warrants was to have them available to issue as a form of compensation to individuals who
provide business consulting services to the Company.

Each outstanding Class A Warrant will entitle the holder thereof to purchase one share of
Company common stock at a price of $6.00 per share and each outstanding Class B Warrant
will entitle the holder thereof the purchase one share of Company common stock at a price of
$12.00 per share.  Subject to restrictions and limitations contained in the Warrant Agreement,
both the Class A and the Class B Warrants will generally be exercisable by the holders
thereof at any time at any time between August 1, 2002 and July 31, 2007.

One of the requirements of the Warrant Agreement is that the Company must file a
registration statement for the shares underlying the Class A Warrants at such time as it has
received proceeds of not less than $100,000 from exercise of Class A Warrants, and it must
file a registration statement for the shares underlying the Class B Warrants at such time as it
has received proceeds of not less than $100,000 from exercise of Class B Warrants. Once
either or both of such registration statements have been filed, the Company must use its
reasonable best efforts to cause them to remain effective until the earlier of (i) the date on
which all of the outstanding Class A or Class B Warrants have been exercised and the
Company has completed the issuance of shares pursuant to the exercise of such Warrants, or
until any restricted shares issued upon exercise of either the Class A or the Class B Warrants
but prior to the effective date of such registration statement have been sold by the holder
thereof, or (ii) the date on which the Warrants expire.

On or about April 2, 2002, the Board of Directors approved the issuance of both the Class A
and the Class B Warrants in consideration of consulting services, to the following persons in
the specified amounts:

|Name               | Class A  - $6.00 Warrants | Class B -  $12.00 Warrants
|------------------ | ------------------------- | --------------------------
|Donald G. Saunders | 850,000                   | 425,000                   
|Thomas K. Russell  | 100,000                   | 50,000                    
|Mark C. Russell    | 50,000                    | 25,000                    
|Total              | 1,000,000                 | 500,000                   

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

The Company has an agreement in principle to acquire all of the issued and outstanding
common stock of MicroIslet, Inc., a Nevada corporation in a share for share exchange.
Among other things, this transaction is pending successful completion of a second stage
financing currently being conducted by MicroIslet for between $3,000,000 and $10,000,000.

MicroIslet is seeking to complete this financing through the private placement sale of its
common stock.  MicroIslet is currently engaged in a private placement offering of its
common stock through American Securities & Investment Company ("ASI"), a licensed
securities broker dealer, with its principal place of business at 7612 E. Calle Los Arboles,
Tucson, Arizona 85750 and through other securities broker-dealers selected by ASI.

Two individuals who are affiliates of the Company are also affiliates of ASI.  Both Thomas
K. Russell, the Company's President and Chairman, and Donald G. Saunders, who is the
beneficial owner of approximately 68.61% of the Company's issued and outstanding
common stock, are also principal shareholders of ASI.  Mark C. Russell, the brother of
Thomas K. Russell, is also a principal shareholder of ASI.   None of the three named
individuals is currently licensed as a registered representative, and accordingly, none of them
will be entitled to receive direct compensation for any efforts they may provide related to the
offering and sale of shares of MicroIslet.

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

(a)  The Exhibits listed below are incorporated by reference.

Exhibit No.                                              Document

2.1   Stock Purchase Agreement (incorporated by reference from report on Form 8-K dated
December 14, 2001 and filed with the Securities and Exchange Commission on December
31, 2001.

2.2  Warrant Agreement (incorporated by reference from report on Form 8-K dated March 1,
2002 and filed withe the Securities and Exchange Commission on March 6, 2002.

3.1  Articles of Incorporation (incorporated by reference from Registration Statement on
Form 10-SB filed with the Securities and Exchange Commission on August 13, 1999).

3.2   Bylaws (incorporated by reference from Registration Statement on Form 10-SB filed
with the Securities and Exchange Commission on August 13, 1999).

(b) One report on Form 8-K was filed by the Company during the last quarter of its fiscal year
ending December 31, 2001.  The 8-K report, which was dated December 14, 2001 and filed
December 31, 2001, was filed to report a change in control of the Company.

******SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

**ALD SERVICES , INC.**

/S/ THOMAS K. RUSSELL

Thomas K. Russell

Chairman of the Board and President

Date:  April 5, 2002