SECURITIES EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-KSB

                            Annual Report Pursuant to
                       the Securities Exchange Act of 1934

                       Fiscal Year Ended December 31, 2001

                         Commission file number 0-26317

                             TRIAD INNOVATIONS, INC.
                             -----------------------
             (Exact name of registrant as specified in its charter)

               Nevada                           93-0863198
              --------                         ------------
      (State of incorporation)        (I.R.S. Employer Identification No.)

                  835 Golden Avenue, Battle Creek, MI 49015
          ------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

               Registrant's telephone number, including area code:
                (616) 969-9752 Securities registered pursuant to
                            Section 12(g) of the Act:

                                  Common Stock
                                  ------------
                               Title of each class

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2)  has  been  subject  to the  filing
requirements for at least the past 90 days. Yes X No

Check if disclosure of delinquent  filers pursuant to Item 405 of Regulation S-B
is not contained in this form, and no disclosure will be contained,  to the best
of  Registrant's  knowledge,  in  definitive  proxy  or  information  statements
incorporated  by reference  in Part III of this Form 10-KSB or any  amendment to
this Form 10-KSB. X

State issuer's revenues for its most recent fiscal year.  $0

There were 19,117,958 shares of the Registrant's  common stock outstanding as of
December 31, 2001 and 25,000,000 were outstanding as of April 15, 2002.

The aggregate market value of the __________  shares of voting common stock held
by nonaffiliates  of the Registrant is approximately  $_________ on December 31,
2001.


<PAGE>




                                TABLE OF CONTENTS

PART I                                                                      Page

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

PART II

         Item 5.  Market for Common Equity and Related
                     Stockholder Matters                                     4
         Item 6.  Management's Discussion and Analysis or
                     Plan of Operation                                       4
         Item 7.  Financial Statements                                       6
         Item 8.  Changes in and Disagreements With Accountants on
                     Accounting and Financial Disclosure                     6

PART III

         Item 9.  Directors, Executive Officers, Promoters and
                     Control Persons; Compliance with Section 16(a)
                       of the Exchange Act                                   7
         Item 10. Executive Compensation                                     9
         Item 11. Security Ownership of Certain Beneficial
                     Owners and Management                                  12
         Item 12. Certain Relationships and Related Transactions            13
         Item 13. Exhibits and Reports on Form 8-K                          14

SIGNATURES                                                                  15




<PAGE>




                                     PART I

Item 1.  BUSINESS
         --------

         History
         -------

     Triad  Innovations,  Inc.  (formerly  Saker One  Corporation)  ("Triad"  or
"Company")  was  created on  December  23, 1981 in the State of Utah as Cavalier
Resources  Corporation.  The name was later  changed  to Saker One  Corporation.
Saker One and Triad entered into a Plan and Agreement of  Reorganization in 1998
whereby Triad merged into a wholly owned  subsidiary  of Saker and  subsequently
Saker changed its name to Triad Innovations,  Inc. after redomiciling to Nevada.
Over the years,  the Company has engaged in various  enterprises,  none of which
have been successful.  In 1998 The Company acquired all of the outstanding stock
of Triad  Compressor,  a Texas  corporation,  which owns 100% of the outstanding
stock of Fuge Systems, Inc., a Texas corporation.  In 1998, Michael Bloom, James
LaPorte,  Natural Resources Limited Company,  and the Kaden Gordon Group I, Ltd.
entered into Contribution Agreements under which they contributed technology and
licenses to Saker One.

         Triad  Compressor  (Compressor) was organized on February 20, 1996 as a
wholly owned subsidiary of Intelligent  Design Systems,  Inc. (IDS).  Compressor
became a separately  owned company when IDS declared a dividend and  distributed
Compressor  stock to IDS  stockholders.  Triad then acquired all the outstanding
stock from IDS  stockholders at a special  stockholders  meeting on December 21,
1998.

     Fuge  Systems,  Inc.  was  created  on  October  4, 1995 as a wholly  owned
subsidiary  of IDS,  which was then  spun off as a wholly  owned  subsidiary  of
Compressor in November 1998.

         Together,   all  three  corporations,   Triad,   Compressor  and  Fuge,
constitute  a  consolidated  group of  corporations  known as the  Company.  All
intercompany accounts and financial transactions have been eliminated.

     The primary asset of  Compressor  is a compressor  design that is an engine
device  that is  intended  to be  operated  using a mix of gaseous  fuel such as
natural  gas that can be used in the gas  industry  and other  applications.  In
1999,  the Company  abandoned  all research on the  compressor  and all costs of
acquiring a patent on the process has been written off.

     The  primary  asset  of  Fuge  is a  gas  centrifuge  design  for  multiple
separation  applications in the oil and gas industry,  waste water clean-up, and
acid treatments, and ethanol dehydration.

     Both designs are still in the development stage and all expenses related to
the  research and  development  are  expensed as  incurred.  Neither  design has
reached the  commercially  viable  state and the Company is  considered  to be a
development  stage company and all financial  activity of that stage is reported
since inception as defined by SFAS #7.

         Financial Information About Industry Segments
         ---------------------------------------------
         See "Financial Statements and supplementary Data," Item below.

         Narrative Description of Business
         ---------------------------------

                                       1


<PAGE>




     The Company has two wholly owned subsidiaries,  Triad Compressor,  Inc. and
Fuge Systems, Inc.

     The primary  asset of  Compressor  is a design for  compressing  industrial
gases,  natural  gases or air.  The size and  simplicity  of  Triad's  prototype
compressor provides opportunities involving compact service requirements.  While
compact size and low fabrication  costs offer  marketing  advantages for Triad's
design,  the compressor  industry is very competitive and design  advantages are
less valuable without name recognition and strong marketing infrastructure.

         Triad views the economic potential for the compressor  technology to be
of value, but less significant than Triad's centrifuge technology.

     The primary asset of Fuge is fluid  centrifuge  technology and design under
development  for  multiple  applications  in  industry.  Some of the  industrial
applications under investigation include industrial gas production of oxygen and
nitrogen, natural gas processing, and ethanol (solvent) de-hydration.  Fuge owns
several  prototype  centrifuge  models along with  miscellaneous  tools and test
equipment all located in rented shop facilities in Mankato, Minnesota.

     Both designs are still in the development stage and all expenses related to
the research and  development  are  expensed as  incurred.  Neither  product has
reached the  commercially  viable  state and the Company is  considered  to be a
development  stage company and all financial  activity of that stage is reported
since inception as defined by SFAS #7.

         Fuge is the owner of the  assignment of U.S.  Patent  5,902,224  titled
Mass-Mass Cell Gas  Centrifuge  issued May 11, 1999 in the name of the inventor,
Michael Bloom. Fuge intends to seek additional patents as warranted from further
research and development activities.

         The intellectual  property assets are encumbered by certain royalty and
security  agreements retained upon the transfer of license rights held by others
including  certain  Officers  and  Directors  of  the  Company.   (See  "Royalty
Agreements").

         Triad  has  retained  Stancil  & Co.  ("Stancil")  to  assist  with the
marketing and  development of Triad's  technologies  and to provide  independent
verification  of performance  tests.  Stancil is a professional  consulting firm
specializing  in the  technical  and economic  issues of the energy and chemical
industries.   Following  these  verification  tests,  Triad  will  pursue  joint
development   agreements  or  other  funding   arrangements   for  the  specific
applications  presented  in  this  report.  Plans  are to  develop  four to five
projects concurrently in the next year with commercial  applications in place by
2001.

     The company has been very  limited in its  capital,  and has been unable to
fund any significant development or testing of its designs.

                                       2

<PAGE>



         A distribution  method of products or services has not been established
as the Company is still in  development  stage for its products.  The Company is
considering  nonexclusive  license  arrangements  to  industry  as  a  means  of
marketing.  The Company may acquire,  own, and/or operate  properties  where the
technology  can be deployed.  The Company has issued press  releases  announcing
plans  to focus on  development  of the  centrifuge  for  ethanol  de-hydration.
Research and development  activities are being directed to this end. Funding for
these activities is being derived from certain shareholder loans.


Item 2.  PROPERTIES
         ----------

         Facilities
         ----------

            The Company has no  property.  The Company  currently  maintains  an
office at 5050 North B Drive, Battle Creek, MI 49015 for which it pays no rent.

         Real Property
         -------------

         None

         Mineral Properties
         ------------------

         None

Item 3.  LEGAL PROCEEDINGS
         -----------------

         As of December 31,  2001,  the Company was neither a party nor were any
of its properties subject to any legal proceedings.

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

     No matters  were  submitted  during the period  covered by this report to a
vote of security holders of the Company,  through the solicitation of proxies or
otherwise.

                                       3
<PAGE>

                                     PART II

Item 5.   MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
          ---------------------------------------------------------------------

     As of the date of this report, there has been limited trading and quotation
of the Company's  common stock on the OTCBB under the symbol TINN.  The range of
high and low trade quotations for each fiscal quarter for the past two years, as
reported by the National Quotation Bureau Incorporated, was as follows:


                                 2001        High          Low
                                 ----        ----          ---
                           First quarter    $.21         $.06
                           Second quarter   $.27         $.03
                           Third quarter    $.28         $.05
                           Fourth quarter   $.50         $.05


                                 2000        High          Low
                                 ----        ----          ---
                           First quarter    $2-1/8       $1-1/16
                           Second quarter   $1.25        $.125
                           Third quarter    $.90         $.375
                           Fourth quarter   $.50         $.09

         The  above  quotations  reflect  inter-dealer  prices,  without  retail
mark-up,  mark-down,  or commission  and may not  necessarily  represent  actual
transactions.

         As of December 31, 2001, there were 988 record holders of the Company's
common Stock.

         The Company has not  declared or paid any cash  dividends on its common
stock and does not anticipate paying dividends for the foreseeable future.

Item 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        -----------------------------------------------------------------------
        OF OPERATIONS
        -------------
Financial Condition
- -------------------

During fiscal year 2001, the Company  continued to be a development stage entity
with no sales and revenues. The company had minimal capital for operations which
impaired any significant business operations.

                                       4
<PAGE>

Financial Condition and Changes in Financial Condition
- ------------------------------------------------------

Liquidity and Capital Resources.
- -----------------------------

The Company's primary source of liquidity since inception has been from funds
raised during its initial capitalization and sales.  The company has no sources
of capital except to use its stock for private placements.  The  company will be
reliant upon loans from offices for any cash needs.  No loan commitments have
been made by anyone.

The  Company  remains  in  the  development  stage  and,  since  inception,  has
experienced  significant  liquidity  problems  and  has no  significant  capital
resources  now and has  stockholder's  deficit of  ($1,726,777)  at December 31,
2001. The Company had minimal current assets and no other assets at December 31,
2001.

The Company is unable to carry out its plan of  business  without  funding.  The
Company  cannot predict to what extent its current lack of liquidity and capital
resources  will  impair its  business  plan,  but it  anticipates  it will incur
further  operating losses similar to those incurred in previous years.  There is
no  assurance  that  the  Company  can  continue  as  a  going  concern  without
substantial funding, for which there is no committed source.


The  Company  estimates  it will  require  $25,000 to  $30,000  to cover  legal,
accounting, transfer and miscellaneous costs of being a reporting company in the
next fiscal year.  The Company  will have a cash  shortfall  for current  annual
costs of at  least  $25,000  to  $30,000,  for  which  it has no  source  except
shareholder loans or contributions, none of which have been committed.

Results of Operations
- ---------------------

Year Ended December 31, 2001 Compared to Year Ended December 31, 2000
- ---------------------------------------------------------------------

     The Company had no revenues for the year ended  December 31, 2001,  nor any
for year ended December 31, 2000.

     The company  incurred  general and  administrative  expenses of $545,727 in
2001 compared to $403,214 in such expenses in 2000. The increase in 2001 was due
to increase of $196,000 in  compensation  expenses  related to shares issued for
incoming executive and director services.  Research expenses decreased to $4,433
in 2001 from $65,000 in 2000.

         The Company had an operating loss of ($543,727) for year ended December
31, 2001 compared to a loss of ($403,214)  for the year ended December 31, 2000.
Net loss per share in the year  ended  December  31,  2001 was  ($.03) per share
compared  to a loss in the prior  fiscal  year of ($.04).  The  largest  item of
expense was $151,000 in salary accruals to officers.

         The Company has yet to produce a working product for commercial markets
and continues to be engaged in activities to attempt to develop its designs.

Liquidity and Capital Resources
- -------------------------------

     The  Company  had $343 in cash  capital  and  $30,750  prepaid  expenses at
December 31, 2001.  Total  current  assets at December 31, 2001 were $31,093 and
current  liabilities  totaled $806,996 for a deficit of ($775,903).  The Company
has no other capital  resources  other than its common shares.  The Company will
need  loans or  private  placements  of stock to  provide  funds for  continuing
operations.

                                       5

<PAGE>


     The Company does not have capital  sufficient  to meet the  Company's  cash
needs,   including  the  costs  of  compliance  with  the  continuing  reporting
requirements  of the  Securities  Exchange Act of 1934. The Company will have to
seek loans or equity  placements  to cover  such cash  needs.  Lack of  existing
capital may be a sufficient impediment to prevent it from accomplishing the goal
of completing  design and development of any products.  The Company will need to
raise  additional  funds to conduct any significant  business  activities in the
next twelve months.

         No commitments to provide additional funds have been made by management
or  other  stockholders.  Accordingly,  there  can  be  no  assurance  that  any
additional  funds  will be  available  to the  Company  to allow it to cover its
expenses as they may be incurred.

         Irrespective   of  whether  the  Company's  cash  assets  prove  to  be
inadequate to meet the Company's  operational  needs,  the Company might seek to
compensate providers of services by issuances of stock in lieu of cash.

OTHER MATTERS

     The Company has no plans for any  significant  research and  development in
the next twelve  months due to its lack of capital.  The Company has no plans at
this time for  purchases  or sales of fixed assets which would occur in the next
twelve months.

         The Company has no expectation or anticipation  of significant  changes
in number of  employees  in the next twelve  months,  however,  if it achieves a
business  acquisition,  it may acquire or add employees of an unknown  number in
the next twelve months.

         The Company's  auditor has issued a "going  concern"  qualification  as
part of his opinion in the Audit Report.

         There is substantial doubt about the ability of the Company to continue
as a "going concern." The Company has no business, no capital, debt in excess of
$366,906,  all of  which  is  current,  no  cash,  no  assets,  and  no  capital
commitments.  The  effects  of such  conditions  could  easily  be to cause  the
Company's bankruptcy, except there are no assets to liquidate in Bankruptcy.


Item 7.  Financial Statements and Supplementary Data
         -------------------------------------------

        Please refer to pages F-1 through F-12.

Item 8.  Changes in and Disagreements on Accounting and Financial Disclosure
         -------------------------------------------------------------------

         In  connection  with  audits of two most  recent  fiscal  years and any
interim period preceding  resignation,  no  disagreements  exist with any former
accountant  on any  matter of  accounting  principles  or  practices,  financial
statement disclosure, or auditing scope of procedure, which disagreements if not
resolved to the  satisfaction of the former  accountant would have caused him to
make  reference  in  connection  with his  report to the  subject  matter of the
disagreement(s).

         The principal  accountants' reports on the financial statements for any
of the past two years  contained no adverse  opinion or a disclaimer  of opinion
nor was  qualified as to  uncertainty,  audit scope,  or  accounting  principles
except for the "going concern" qualification.

                                       6

<PAGE>



                                    PART III

Item 9.   Directors and Executive Officers of the Registrant and Compliance with
          ----------------------------------------------------------------------
          Section 16(a)
          -------------

The directors and executive officers of the Company as of December 31, 2001, are
as follows:

                                                                 Period of
                                                                 Service As
                                                                 An Officer Or
     Name                  Age           Position(s)             Director
-----------------------  --------  ------------------------  -------------------
Hubert Shenkin             __       CEO and Director                Annual
Chris Micklatcher          43       Director                        Annual
Anthony R. Grindl          59       Director                        Annual
Rob Schleider              50       Director                        Annual
Thomas Roller              52       Director                        Annual
Terry Humphry              __       Director & President            Annual
Jerry McAlphin             __       Director & Vice President       Annual

         The principal occupations of each director and officer of the Company
for at least the past five years are as follows:

(1) Mr. Bloom resigned effective March 5, 2001 as an officer and Director.

     ROB  SCHLEIDER,  age 50. In 1974,  Mr.  Schleider  graduated from Texas A&M
University  with a BBA.  From  1974 to 1989,  Mr.  Schleider  was the  owner and
operated fifteen  restaurants.  Mr. Schleider has served or is currently serving
on various Boards, including the Republic Bank A&M Board, College Station I.S.D.
School Board, and the Brazos Valley Rehabilitation Center Board.

         TOM ROLLER, Chairman of the Board of Directors, formed National
Refrigeration Systems in 1997, capping a 25-year career in finance, planning,
sales, marketing, manufacturing, and general management, in the United States
and Europe. Prior to NRS, Roller served as President and CEO of Wolverine Tube,
Inc. (NYSE: WLV) a supplier of custom-engineered technical tubes for the
appliance, air-conditioning, refrigeration, power generation and chemical
industries. From 1992 to 1996, Roller was President and CEO of Fruehauf Trailer
Corporation, a global manufacturer of dry freight and refrigerated trailers.
Roller also worked in various capacities for United Technologies Corporation
(NYSE: UTX) from 1981 to 1991, include Vice President and General Manger of two
major divisions. He is a director of Ideal Electric Corporation. Roller holds a
Masters of Business Administration degree from Duke University.

     HUBERT B. SHENKIN,  CEO, brings to Triad his many years of experience as an
attorney, for the past fifteen years, primarily involving business law and as an
engineer,  for many years, on various precision  products of a complex nature in
the aerospace and ground support industries, both on governmental and industrial
products.  He has served at various times in his career as CEO, President,  Vice
President,  Chief Engineer,  Manufacturing  and Value Engineering  Manager,  and
Quality  control  Manager.  Mr. Shenkin is a graduate of City  University of New
York,  with a B.S. in Physics,  City  University of New York,  with an M.B.A. in
Management, and Nova Southern University, with a J.D. degree in Law.

                                       7

<PAGE>

         TERRY Humphrys, President, is an engineer with many years of
experience, most recently with Legacy Environmental System as President/CEO,
prior to that associated with Leede Investment Associates, Inc. as
Vice-President.  Education: Western Illinois University, Macomb, Illinois, North
Central College, Naperville, Illinois, majored in Clinical Biochemistry.

         JEROLD MCALPIN, Vice President Strategic Alliances/New Business
Development, brings to Triad 30 years of global experience with several major
Fortune 100 companies. Mr. McAlpin joined AAR (NYSE:AIR) in 2000 as VP of
Strategic Global Procurement. Prior to AAR, Mr. McAlpin served as Director of
Strategic Global Procurement for Ingersoll-Road (NYSE: IR). From 1995-1998, Mr.
McAlpin served as Corporate Director of Purchasing in the turnaround and sale of
Fruehauf Trailer Corporation. In 19987, he was a part of the turnaround team
that transitioned Valley Industries (The Fisher Group) into Toyota's #2 supplier
worldwide. From 1972-1987, he served 16 years with John Deere (NYSE: DE) in the
areas of Operations, Manufacturing, Production, Warehousing, Distribution,
Logistics, and Procurement. He has a diversity of education, knowledge, and
experience that shall serve Triad well in its various endeavors. Mr. McAlpin is
a graduate of the University of Northern Iowa, with a B.A. in Marketing and an
M.B.A. graduate study in Management from the University of Northern Iowa.


         CHRIS MICKLATCHER,  age 43, received his B.B.A.  degree from University
of Michigan,  Ann Arbor,  Michigan in 1980, and his Juris Doctorate  degree from
Wayne State University Law School in Detroit,  Michigan 1n 1984. Mr. Micklatcher
is  licensed  to practice as an attorney  and  certified  public  accountant  in
multiple  jurisdictions.  He worked for the  regional  office of Ernst & Whinney
(now Ernst & Young) in Boston, Massachusetts until 1988, when he then accepted a
position with Blue Cross & Blue Shield.  In 1992, Mr.  Micklatcher  began a tax,
legal and accounting firm under the name of Alternative Tax Solutions,  which he
continues to operate to this day. He has sat on various  boards and held officer
positions, held both elected and appointed positions in government.

         ANTHONY R. GRINDL,  age 59,  received his BS degree in Geology from San
Diego State in 1965 and an MS degree in  International  Business from University
of Dallas in 1975.  Prior to attending these  Universities  Tony was an Advanced
Instructor Pilot for 6 years with the United States Air Force stationed in Texas
and Oklahoma.  He has owned several  corporations  and for a period from 1975 to
1985 was responsible for recruiting  senior research  scientist for major energy
companies.  He has also been involved in importing and developing  private label
programs for upscale  retailers  and  imported  products.  He  also  holds  a
patent  on a Multi-stage Zonal Air Purification System.

                                       8

<PAGE>

         ROB  SCHLEIDER,  age  50,  In 1974, Mr.  Schleider  graduated from
Texas A&M University with a BBA. From 1974 to 1989, Mr.  Schleider was the owner
and operated  fifteen  restaurants.  Mr. Schleider is has served or is currently
serving  on various  Boards,  including  the  Republic  Bank A&M Board,  College
Station I.S.D. School Board, and the Brazos Valley Rehabilitation Center Board.

                  No appointee  for a director  position has been subject of any
civil regulatory proceeding or any criminal proceeding in the past five years.

                  The term of office of each director and executive officer ends
at, or  immediately  after,  the next  annual  meeting  of  shareholders  of the
Company. Except as otherwise indicated, no organization by which any director or
officer has been  previously  employed is an affiliate,  parent or subsidiary of
the Company.

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

     1. The following people did not file reports under Section 16(a) during the
most recent two fiscal years:
                                              Report           # of Reports
                                              ------           ------------
                  a.  Janis R. Monroe
                  b.  James B. LaPorte
                  c.  Michael R. Bloom
                  d.  Dr. Alan Propp
                  e.  J. Scott Brosier
                  f.  Dr. Houston G. Wood
                  g.  Chris Micklatcher
                  h.  Anthony R. Grindl
                  i.  Rob Schleider
                  j.  Hubert Shenkin

Item 10.   Executive Compensation
           ----------------------

     The Company accrued and paid compensation to certain executive officers for
services  rendered to the Company in all capacities during the fiscal year ended
December 31, 2001. No one  executive  officer  received,  or has accrued for his
benefit,  in excess of $100,000 for the year.  No cash bonuses were or are to be
paid to such persons.

                                       9

<PAGE>
<TABLE>
<CAPTION>




                                    SUMMARY COMPENSATION TABLE OF EXECUTIVES
                                    ----------------------------------------
                                          Year Ended December 31, 2001

                            Annual Compensation                  Awards


Name and                                                                       Securities    Long Term      LTIp       All Other
Principal                  Salary ($) Bonus  Other Annual    Restricted Stock  Underlying     Compensation/ Payments  Compensations
Position           Year               ($)    Compensation ($) Award(s)($)      Options/SARs(#)
--------           ----    ------     ---    ----------------------------      --------------- ------------ --------- --------------

<S>                 <C>     <C>       <C>     <C>              <C>                <C>              <C>          <C>         <C>

Janis R.            2001    0         0       0                0                  0                0            0           0
Monroe, CEO
(Resigned 2001)     ----------------------------------------------------------------------------------------------------------------
                    2000    0         0       0                0                  0                0            0           0
                    ----------------------------------------------------------------------------------------------------------------
                    1999    0         0       0                0                  0                0            0           0
===============    =================================================================================================================
James B.            2001    $59,000   0       0                0                  0                0            0           0
LaPorte,
President (1)
(Resigned 2001)    -----------------------------------------------------------------------------------------------------------------
                    2000    $100,000  0       0                0                  0                0            0           0

                   -----------------------------------------------------------------------------------------------------------------
                    1999    0         0       0                0                  0                0            0           0
================  ==================================================================================================================
Dr. Alan Propp,     2001    0         0       0                0                  0                0            0           0
Vice President
(Resigned 2001)   ------------------------------------------------------------------------------------------------------------------
                    2000    0         0       0                0                  0                0            0           0
                  ------------------------------------------------------------------------------------------------------------------
                    1999    0         0       0                0                  0                0            0           0
================  ==================================================================================================================
J. Scott Brosier,   2001    0         0       0                0                  0                0            0           0
CFO
(Resigned 2001)   ------------------------------------------------------------------------------------------------------------------
                    2000    $38,000*  0       0                0                  0                0            0           0

                  ------------------------------------------------------------------------------------------------------------------
                    1999    $50,000*  0       0                0                  0                0            0           0
                  ------------------------------------------------------------------------------------------------------------------

================  ==================================================================================================================
Michael R.          2001    0         0       0                0                  0                0            0           0
Bloom, Vice       ------------------------------------------------------------------------------------------------------------------
President           2000    0         0       0                0                  0                0            0           0
(Resigned 2001)   ------------------------------------------------------------------------------------------------------------------
                    1999    $100,000**0       0                0                  0                0            0           0
                  ------------------------------------------------------------------------------------------------------------------
================  ==================================================================================================================
Chris Micklatcher,  2001    0         0       0                0                  1,250,000        0            0           0
Director
================  ==================================================================================================================
Hubert B. Shenkin,  2001    0         0       0                0                  1,250,0000       0            0           0
CEO
================  ==================================================================================================================
Terry Humphrys,     2001    0         0       0                0                  1,250,000        0            0           0
President
================  ==================================================================================================================
Jerold McAlpin,     2001    0         0       0                0                  1,250,000        0            0           0
Vice-President
====================================================================================================================================
</TABLE>


                                       10

<PAGE>



** Convertible to 600,000 shares of common stock.

         The Company has no employee incentive stock option plan.

         There are no plans pursuant to which cash or non-cash  compensation was
paid or  distributed  during the last fiscal year,  or is proposed to be paid or
distributed in the future,  to the executive  officers of the Company.  No other
compensation not described above was paid or distributed  during the last fiscal
year to the executive  officers of the Company.  There are no compensatory plans
or  arrangements,  with respect to any  executive  office of the Company,  which
result or will result from the resignation,  retirement or any other termination
of such individual's  employment with the Company or from a change in control of
the Company or a change in the individual's  responsibilities following a change
in control.

         Option/SAR Grants Table (None)

     Aggregated  Option/SAR  Exercises in Last Fiscal Year and FY-End Option/SAR
value (None)

         Long Term Incentive Plans - Awards in Last Fiscal Year (None)



                                       11

<PAGE>
<TABLE>
<CAPTION>


                   DIRECTOR COMPENSATION FOR LAST FISCAL YEAR

(Except for  compensation of Officers who are also Directors which  Compensation
is listed in Summary  Compensation Table of Executives).  Directors are entitled
to 10,000 shares of stock in May of 2001.

                                   Cash Compensation
                                                                                       Security Grants

Name                        Annual        Meeting     Consulting           Number         Number of Securities  LTIP    All Other
                            Retainer      Fees ($)    Fees/Other           of             Underlying           Payments Compensation
                            Fees ($)                  Fees ($)             Shares         Options/SARs(#)
                                                                                             (#)
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
<S>                           <C>          <C>              <C>                 <C>            <C>               <C>            <C>

A. Director              2000 0            0                0                   0              0                 0              0
Janis R. Monroe (1)      2001 0            0                0                   0              0                 0              0
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
B. Director              2000 0            0                0                   0              0                 0              0
James B. LaPorte (1)     2001 0            0                0                   0              0                 0
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
C.  Director             2000 0            0                0                   0              0                 0              0
Michael R. Bloom (1)     2001 0            0                0                   0              0                 0              0
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
D.  Director             2000 0            0                0                   0              0                 0              0
Dr. Alan Propp (1)       2001 0            0                0                   0              0                 0              0
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
E.  Director             2000 0            0                0                   0              0                 0              0
J. Scott Brosier (1)     2001 0            0                0                   0              0                 0              0
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
F.  Director             2000 0            0                0                   0              0                 0              0
Dr. Houston G. Wood (1)  2001 0            0                0                   0              0                 0              0
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
G.  Director             2001 0            0                0                   0              0 (2)             0              0
Chris Micklatcher
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
H.  Director             2001 0            0                0                   0              0                 0              0
Anthony R. Grindl
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
I.  Director             2001 0            0                0                   0              0                 0              0
Rob Schleider
- -------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
Tom Roller,              2001 0            0                0                   0              2,500,000         0              0
Chairman
---------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
Hubert B. Shenkin,       2001 0            0                0                   0              0 (2)             0              0
Director
---------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
Terry Humphrys,          2001 0            0                0                   0              0 (2)             0              0
Director
---------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
Jerold McAlpin,          2001 0            0                0                   0              0 (2)             0              0
Director
---------------------------------- ------------------ ---------------- ----------------------  -------------- ----------------------
</TABLE>

 (1)   Resigned in 2001
 (2)   Does not include options shown n Executive Compensation.

Item 11. Security Ownership of Certain Beneficial Owners and Management
         ----------------------------------------------------------

     The  following  table sets  forth  information,  as of April 15,  2002 with
respect to the  beneficial  ownership of the Company's no par value common stock
by each person known by the Company to be the beneficial owner of more than five
percent of the  outstanding  common  stock.  Also  included in the Table are the
shares held by all executive officers and Directors.

                                       12

<PAGE>

<TABLE>
<CAPTION>



                                                      Number of                 Percentage of
                  Name                              Shares Owned                     Class
- -------------------------------------------  --------------------------- -----------------------------
<S>                                                            <C>                              <C>
Chris Micklatcher                                                107,200                           .7%
10829 North 43rd St                                              (1) 1,250,000
Augusta, MI 49012
- -------------------------------------------  --------------------------- -----------------------------
Anthony R. Grindl                                                 15,000                           .1%
6808 Cornelia Lane
Dallas, TX 75214
- -------------------------------------------  --------------------------- -----------------------------
Rob Schleider                                                    328,000                          2.0%
8620 Rosewood Drive
College Station, TX 77845
- -------------------------------------------  --------------------------- -----------------------------
Terry Humphrys                                                 0                                    0%
President/Director                                             (1) 1,250,000
- -------------------------------------------  --------------------------- -----------------------------
Jarold McAlpin,                                                  400,000
Vice President/Director                                          (1) 1,250,000                    2.1%
- -------------------------------------------  --------------------------- -----------------------------
Tom Roller,                                                    0                                    0%
Chairman/Director                                              (2) 2,500,000
- -------------------------------------------  --------------------------- -----------------------------
Michael Bloom                                                    400,000                          2.1%
---------------------------------------------  --------------------------- -----------------------------
Hubert B. Shenkin                                              0                                    0%
CEO                                                            (1) 1,250,000
---------------------------------------------  --------------------------- -----------------------------

Officers and Directors as a group                              1,250,000                          6.5%
- -------------------------------------------  --------------------------- -----------------------------

</TABLE>

Pursuant to Section 13d(1) of the Securities Act of 1933 options exercisable
within 60 days included for computation purposes.
(1) Each person has an option to purchase 1,250,000 shares @ $.10 per share for
ten years.

(2) Mr. Roller has an optionto purchase 2,500,000 shares @ $.10 per share for 10
years.

(3) Including options exercisable under Section 13d(1).

                                     PART IV

Item 12.          Certain Relationships and Related Transactions.
                  ----------------------------------------------

                  None.



Transactions with Management and Others
- ---------------------------------------

         There  were no  transactions  or  series  of  transactions  during  the
Registrant's  last fiscal  year or the current  fiscal  year,  or any  currently
proposed  transactions  or series of transactions of the remainder of the fiscal
year, in which the amount involved exceeds $60,000 and in which to the knowledge
of the Registrant,  any director,  executive officer,  nominee, future director,
five percent shareholder, or any member of the immediate family of the foregoing
persons, have or will have a

                                       13
<PAGE>



direct or indirect  material  interest,  except  that Janis R.  Monroe  purchase
1,000,000 shares of common stock at $.10 per share.

     Rob Schleider was issued 10,000 shares in exchange for a $300 debt owed for
a telephone  bill.  The shares were trading at $.10 per share at the time of the
transaction.

     On October 11, 2001,  options of 1.25  million  shares were issued to Chris
Micklatcher Jerry McAlpin,  Terry Humphrys and Hubert Shenkin at an option price
of $.10 per share. No options have been exercised.

     On October 11, 2001  options of 2.5 million  shares  weree issued to Thomas
Roller at an option price of $.10 per share. No options have been exercised.

Item 13.   Exhibits and Reports on Form 8-K
           --------------------------------
           The following documents are filed as part of this report:

                 1.       Reports on Form 8-K:   May 15, 2001
                                                 March 28, 2001
                 2.       Exhibits:



                                      INDEX
Regulation
S-K Number               Exhibit                    Page Number
- ----------  -------------------------------         -----------
3.1               Articles of Incorporation         *Incorporated by reference
                                                    to Registration Statement
                                                    #000-26317

3.2               Bylaws                            *Incorporated by reference
                                                    to Registration Statement
                                                    #000-26317


                              INDEX TO EXHIBITS SK#

3.1   Articles of Incorporation of Triad Compressor, Inc. a Texas corporation*
3.2   Articles of Incorporation of Saker One Corporation, a Nevada corporation*
3.3   Articles of Amendment of Triad Compressor, Inc. Changing name to Triad
      Innovations, Inc. 3.4 Articles of Amendment of Triad Compressor, Inc.
      Changing share amount*
3.5   Articles of Incorporation of Gas Centrifuge Invention, Inc.*
3.6   Articles of Amendment of Gas Centrifuge Invention, Inc. Changing name to
      Fuge Systems, Inc.*
3.7   Certificate of Amendment of Fuge Systems, Inc.*
3.8   Articles of Amendment of Saker One Corporation*
3.9   Articles of Merger of Saker One Corporation, a Utah corporation and Saker
      One Corporation, a Nevada corporation*
3.10  Bylaws of Saker One Corporation, a Nevada corporation*
3.11  Bylaws of Triad Innovations, Inc., a Nevada corporation*
3.12  Bylaws of Fuge Systems, Inc.*
10.1  Stock Exchange Agreement 10.2 Agreement of Reorganization*
10.3  United States Patent*
10.4  Assignment - Michael R. Bloom*
10.5  Shareholder Consent Agreement*
10.6  Plan of Merger*
10.7  Triad Innovations, Inc./Stancil & Co. Agreement*
10.8  Triad Compressor, Inc./Houston Wood Agreement*
10.9  Employment Agreements with James B. LaPorte, Michael Bloom, and Scott
      Brosier*
10.10 Compensation Agreement for Alan Propp*
10.11 Contribution Agreements with James B. LaPorte, Kaden Gordon Group, Michael
      R. Bloom, and Natural Resources Limited*
10.12 Conditional Stock Option Agreements with Janis R. Monroe and Rosemary
      Albrecht*

*     Incorporated by reference to Registration Statement #000-26317

                                       14

<PAGE>



                                   SIGNATURES

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

                                            TRIAD INNOVATIONS, INC.
                                            (Registrant)

Date: April 15, 2002
                                             /s/Terry Humphrys
                                            ---------------------------------
                                            Terry Humphrys, President & CEO


                                            DIRECTORS:

                                            /s/Jarold McAlphin
                                            --------------------------------
                                            Jarold McAlpin


                                            /s/Terry Humphrys
                                            ------------------------------------
                                            Terry Humphrys

                                            /s/Thomas Roller
                                            --------------------------------
                                            Thomas Roller

                                            /s/Hubert B. Shenkin
                                            --------------------------------
                                            Hubert B. Shenkin


                                            /s/Chris Micklatcher
                                            --------------------------------
                                            Chris Micklatcher

                                            /s/Anthony R. Grindl
                                            --------------------------------
                                            Anthony R. Grindl

                                            /s/Rob Schleider
                                            --------------------------------
                                            Rob Schleider

                                       15

<PAGE>









                             TRIAD INNOVATIONS, INC.
                          (A Development Stage Company)

                              Financial Statements

                           December 31, 2001 and 2000





<PAGE>


Auditors Report- Bierwolf, Nilson & Associates                               F-1

Balance Sheets                                                               F-2

Statements of Operations                                                     F-3

Statements of Changes in Stockholders Deficit                          F-4 - F-5

Statements of Cash Flows                                                     F-6

Notes to Financial Statements                                         F-7 - F-12





<PAGE>







                          INDEPENDENT AUDITORS' REPORT

To the Board of Directors of
Triad Innovations, Inc.


We have audited the accompanying balance sheet of Triad Innovations, Inc., (a
development stage company) (a Nevada corporation) as of December 31, 2001 and
2000 and the related statements of operations, retained earnings, and cash flows
for the years then ended and for the period October 4, 1995 (Inception) to
December 31, 2001. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards,
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 financial statements referred to above present fairly, in
all material respects, the financial position of Triad Innovations, Inc., as of
December 31, 2001 and 2000 and the results of its operations and its cash flows
for the years then ended and for the period October 4, 1995 (Inception) to
December 31, 2001 in conformity with generally accepted accounting principles,
in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 9 to the
financial statements, the Company has little operating capital and has had only
startup operations. These factors raise substantial doubt about its ability to
continue as a going concern. Management's plans in regard to these matters are
also described in the Note 9. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.



Bierwolf, Nilson & Associates
April 13, 2002
/s/Bierwolf, Nison & Associates

                                      F-1

<PAGE>
<TABLE>
<CAPTION>






                             Triad Innovations, Inc.
                          (A Development Stage Company)
                                 Balance Sheets
                                   December 31
<S>                                                                          <C>                 <C>

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

                                     ASSETS

Current Assets
   Cash (Note 8)                                                             $             343   $           6,527
   Prepaid Insurance                                                                    30,750            -
                                                                             ------------------  ------------------

     Total Current Assets                                                               31,093               6,527

Property, Plant & Equipment (Net)(Note 2)                                               47,084               2,823
-----------------------------------------

Other Assets
   Patents (Note 5)                                                                     28,720              28,720
                                                                             ------------------  ------------------

     Total Assets                                                            $         106,897   $          38,070
                                                                             ==================  ==================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
   Accounts Payable                                                          $         115,751   $          68,299
   Accrued Liabilities                                                                 206,293            -
   Short Term Debt (Note 12)                                                           133,250             514,004
   Notes Payable - Related Party                                                       345,919            -
   Interest on Notes Payable                                                             5,753            -
                                                                             ------------------  ------------------

     Total Current Liabilities                                                         806,996             582,303

Stockholders' Equity
   Common Stock, 25,000,000 Authorized at
      $.001 Par Value; 19,117,958 and 16,234,958
      Shares Issued and Outstanding, Respectively                                       19,118              16,235
   Additional Paid in Capital                                                         8,033,791           7,693,460
   Deficit Accumulated During Development Stage                                      (8,753,008)         (8,253,928)
                                                                             ------------------  ------------------

     Total Stockholders' Equity                                                        (700,099)           (544,233)
                                                                             ------------------  ------------------

     Total Liabilities & Stockholders' Equity                                $          106,897   $          38,070
                                                                             ==================  ==================



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

</TABLE>
                                      F-2

<PAGE>
<TABLE>
<CAPTION>




                             Triad Innovations, Inc.
                          (A Development Stage Company)
                            Statements of Operations
                                   December 31
<S>                                         <C>                <C>               <C>              <C>

                                                                                                         From
                                                                                                     Inception on
                                                                                                      (October 4,
                                                                                                       1995) to
                                                    2001              2000             1999              2001
                                            ------------------  ----------------  ---------------  ----------------

Revenue                                     $         -         $       -         $      -         $       -
-------                                     ------------------  ----------------  ---------------  ----------------

Expenses
   General, Selling
     & Administrative                                 533,154           337,100          552,571         1,436,800
   Research &
     Development (Note 6)                               4,433            65,000          -                 267,840
   Depreciation (Note 2)                                6,140             1,114              933            12,324
   Oil & Gas Leases                                   -                 -                  1,500             4,060
                                            ------------------  ----------------  ---------------  ----------------

     Total Expenses                                   543,727           403,214          555,004         1,721,024
                                            ------------------  ----------------  ---------------  ------------------

     Net (Loss) from Operations                      (543,727)         (403,214)        (555,004)       (1,121,024)

Other Income (Expense)
   Interest Expense                                    (5,753)          -                -                  (5,753)
                                            ------------------  ----------------  ---------------  ----------------

     Total Other (Expenses)                            (5,753)          -                -                  (5,753)

     Income Tax (Note 4)                              -                 -                -                 -
                                            ------------------  ----------------  ---------------  ----------------

     Net Loss                               $        (549,480) $       (403,214) $      (555,004) $     (1,726,777)
                                            =================== ================ ================ ===================

     Net Loss per Common
     Share (Note 11)                        $            (.04)  $          (.03)  $         (.03)
                                            ==================  ================  ===============

     Average Shares
     Outstanding (Note 11)                         17,035,708        15,406,993       15,406,993
                                            ==================  ================  ===============




The accompanying notes are an integral part of these financial statements.
</TABLE>

                                      F-3

<PAGE>
<TABLE>
<CAPTION>


                                    Continued
                             Triad Innovations, Inc.
                          (A Development Stage Company)
                       Statements of Stockholders' Equity
<S>                                        <C>                 <C>               <C>              <C>

                                                          Common Stock                Paid In        Accumulated
                                                   Shares              Par            Capital           Deficit
                                            ------------------  ----------------  ---------------  ----------------

Balance, December 31, 1999                         14,536,306        $   14,536 $      7,438,859      $(7,850,714)

Shares Issued for Relief of
Indebtedness at $.001 Per Share                         6,000                 6            2,994

Shares Issued for Services at
$.33 Per Share                                        300,000               300           99,700

Shares Issued for Cash at
$.10 Per Share                                      1,000,000             1,000           99,000

Shares Issued for Cash at
$.10 Per Share                                        250,000               250           24,750

Shares Issued for Relief of
Indebtedness at $.27 Per Share                         32,500                33            8,767

Shares issued for Relief of
Indebtedness at $.50 Per Share                         20,000                20            9,980

Shares Issued for Services at
$.38 Per Share                                         20,000                25            9,475

Adjustment Due to Reverse
Stock Split                                            65,152                65               65

Net Loss for Year Ended
December 31, 2000                                     -                 -                      9         (403,214)
                                           ------------------  ----------------  ---------------  -----------------

Balance, December 31, 2000                        16,229,958             16,235        7,693,599       (8,253,928)

Prior Period Adjustment                                                                                    50,400

Shares Issued for Services
at $.03 Per Share                                     280,000               280            8,120

Shares Issued for Cash at
$.05 Per Share                                      1,191,000             1,191           58,359

Shares Issued for Cash at
$.10 Per Share                                         59,000                59            5,841



The accompanying notes are an integral part of these financial statements.
</TABLE>

                                      F-4

<PAGE>
<TABLE>
<CAPTION>

                                    Continued
                             Triad Innovations, Inc.
                          (A Development Stage Company)
                       Statements of Stockholders' Equity
<S>                                         <C>                 <C>               <C>              <C>

                                                          Common Stock                Paid In          Accumulated
                                                   Shares              Par            Capital           Deficit
                                            ------------------  ----------------  ---------------  ----------------

Shares Issued for Cash at
$.09 Per Share                                         65,000                65            5,785

Shares Issued for Services
at $.10 Per Share                                      55,000                55            5,445

Shares Issued for Services
at $.03 Per Share                                      10,000                10              290

Shares Issued for Services
at $.22 Per Share                                       3,000                 3              657

Shares Issued in Satisfaction
of Accrued Wages at $.29
Per Share                                             600,000               600          174,715

Shares Issued for Services
at $.10 Per Share                                     900,000               900           89,100

Shares Canceled                                      (280,000)             (280)          (8,120)

Net Loss for Year Ended
December 31, 2001                                                                                          (549,480)
                                            ------------------  ----------------  ---------------  -----------------

Balance, December 31, 2001                         19,117,958     $      19,118      $ 8,033,791      $  (8,753,008)
                                            ==================  ================  ===============  =================
The accompanying notes are an integral part of these financial statements.
</TABLE>

                                      F-5

<PAGE>
<TABLE>
<CAPTION>



                             Triad Innovations, Inc.
                          (A Development Stage Company)
                            Statements of Cash Flows

<S>                                                  <C>                <C>                  <C>          <C>

                                                                                                                  From
                                                                                                              Inception on
                                                                                                               (October 4,
                                                                                                                1995) to
                                                             2001              2000             1999              2001
                                                     ------------------  ---------------  ----------------  ---------------
Cash Flow Provided (Used) by Operations
   Net (Loss)                                        $        (549,480) $      (403,214)     $ (555,004)  $   (1,726,771)
   Depreciation                                                  6,140            1,114             933           12,324
   Stock Issued for Services                                   271,913          109,500          30,000          411,413
   Adjustments to Reconcile Net Loss to
    Net Cash;
     Increase Decrease in Prepaid Expenses                     (30,750)          -                -              (30,750)
     Increase Decrease in Interest Payable                       5,753           -                -                5,753
     Increase Decrease in Accrued Liabilities                  206,293           -                -              206,293
     Decrease Increase in Accounts Payable                      47,482          176,304         281,583          617,777
     Increase in Expenses Paid By Others                       -                 -                1,657          122,810
                                                     ------------------  ---------------  ----------------  ----------------

     Net Cash Used by Operating Activities                     (42,649)        (116,296)       (240,831)        (381,157)

Cash Flow Provided (Used) by Investing
   Cash paid for patents                                       -               -                 (5,378)         (28,720)
   Cash paid for equipment                                     -                 (2,565)          -               (2,565)
                                                     ------------------  ---------------  ----------------  ---------------

     Net Cash Used by Investing Activities                     -                 (2,565)         (5,378)         (31,285)

Cash Flow Provided (Used) by Financing
   Related party loans                                         (34,835)          -               70,453           40,518
   Issuance of Common Stock                                     71,300          125,000         175,968          372,268
                                                     ------------------  ---------------- ----------------  ----------------

     Net Cash Used by Financing Activities                      36,465          125,000         246,421          412,786

      Increase (Decrease) in Cash                               (6,184)           6,139             212              344

     Cash at Beginning of Year                                   6,528              389             177             -
                                                     ------------------  ---------------  ----------------  ---------------

     Cash at End of Year                             $             344   $        6,528   $         389   $          344
                                                     ==================  ===============  ================  ===============

Supplementary Cash Flow Information:
   Cash Paid For:
      Interest                                       $         -         $       -        $       -       $         -
     Taxes                                                     -                 -                1,657            1,657

Stock Issued For:
   Acquisition of Oil & Gas Properties               $         -         $      271,913   $      17,500   $       17,500
   Services rendered                                 $         271,913   $      109,500   $      12,500   $      231,500
   Conversion of debt                                $         -         $       21,800   $     106,600   $      150,200

The accompanying notes are an integral part of these financial statements.
</TABLE>
                                      F-6


<PAGE>

                             Triad Innovations, Inc.
                          Notes to Financial Statements
                                December 31, 2001

NOTE #1 - Organization and History
----------------------------------
Triad Innovations, Inc. (formerly Saker One Corporation)(Triad) was created on
December 23, 1981 in the State of Utah. Over the years, Triad has engaged in
various enterprises, none of which have been successful. In 1999, Triad acquired
all of the outstanding stock of Triad Compressor, Inc. a Texas corporation,
which owned 100% of the outstanding stock of Fuge Systems, Inc, a Texas
corporation. In 1999, Triad created, and later merged with, a Nevada subsidiary.

Triad Compressor (Compressor) was organized on February 20, 1996 as a wholly
owned subsidiary of Intelligent Design Systems, Inc. (IDS). Compressor became a
separately owned company when IDS declared a dividend and distributed Compressor
stock to IDS stockholders. Triad then acquired all the outstanding stock from
IDS stockholders at a special stockholders meeting on December 21, 1999.

Fuge Systems,  Inc. was created on October 4, 1995 as a wholly owned  subsidiary
of IDS,  which was then spun off as a wholly owned  subsidiary  of Compressor in
November 1998.

Together, all three corporations, Triad, Compressor and Fuge, constitute a
consolidated group of corporations known as the Company. All intercompany
accounts and financial transactions have been eliminated.

The primary asset of Compressor is a compressor that is an engine device that is
intended to be operated using a mix of gaseous fuel such as natural gas that can
be used in the gas industry and other applications. In 1999, the Company
abandoned all research on the compressor and all costs of acquiring a patent on
the process has been written off.

The primary asset of Fuge is a gas centrifuge for multiple applications in the
oil and gas industry.

The centrifuge are still in the development stage and all expenses related to
the research and development are expensed as incurred. The centrifuge has not
reached the commercially viable state and while all activities are directed to
that end, the Company is considered to be a development stage company and all
financial activity of that stage is reported since inception as defined by SFAS
#7

NOTE #2 - Significant Accounting Policies
-----------------------------------------
A.       The Company uses the accrual method of accounting.
B.       Revenues and directly related expenses are recognized in the period
         when the goods are shipped to the customer.

                                      F-7

<PAGE>



                             Triad Innovations, Inc.
                          Notes to Financial Statements
                                December 31, 2001

NOTE #2 - Significant Accounting Policies -continued-
----------------------------------------------------

C.       Primary Earnings Per Share amounts are based on the weighted average
         number of shares outstanding at the dates of the financial statements.
         Fully Diluted Earnings Per Shares shall be shown on stock options and
         other convertible issues that may be exercised within ten years of the
         financial statement dates.
D.       Consolidation Policies:    The accompanying consolidated financial
         statements include the accounts of the company and its majority - owned
         subsidiaries. Intercompany transactions and balances have been
         eliminated in consolidation.
E.       Depreciation:   The cost of property and equipment is depreciated over
         the estimated useful lives of the related assets. The cost of leasehold
         improvements is depreciated (amortized) over the lesser of the
         length of the related assets or the estimated lives of the assets.
         Depreciation is computed on the straight line method for reporting
         purposes and for tax purposes.
F.       Use of Estimates: The preparation of financial statements in conformity
         with generally accepted accounting principles requires management to
         make estimates and assumptions that affect the reported amounts of
         assets and liabilities and disclosure of contingent assets and
         liabilities at the date of the financial statements and reported
         amounts of revenues and expenses during the reporting period. Actual
         results could differ from those estimates.
G.       As permitted by SFAS #123 "Accounting for Stock-Based Compensation,"
         the Company has elected to account for the stock option plans as a
         compensation cost when options were issued at equal to or more than
         fair market value.

NOTE #3 - Property, Plant and Equipment
---------------------------------------
The Company capitalizes the purchase of equipment and fixtures for major
purchases in excess of $500 per item. Capitalized amounts are depreciated over
the useful life of the assets using the straight line method of depreciation.
Scheduled below are the assets, costs and accumulated depreciation at December
31, 2001 and 2000.

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

                                                               Depreciation                   Accumulated
                                 December 31,                    Expense                      Depreciation
Assets                       2001            2000           2001           2000            2001           2000
-------------------------------------------------------------------------------------------------------------------

Equipment                $     63,000   $      -       $       4,200   $     -        $      16,800  $      -
Office & Computer
  Equipment                    10,834          10,834          1,940          1,114          9,552           8,011
                         ------------------------------------------------------------------------------------------
     Total               $     73,834   $      10,834  $       6,140   $      1,114   $      26,352  $       8,011
                         ==========================================================================================
</TABLE>

                                      F-8

<PAGE>



                             Triad Innovations, Inc.
                          Notes to Financial Statements
                                December 31, 2001

NOTE #4 - Income Taxes
----------------------
The Company  adopted  Statement of Financial  Standards No. 109  "Accounting for
Income  taxes" in the fiscal  year ended  December  31,  1999 which was  applied
retroactively.

Statement of Financial Accounting Standards No. 109 " Accounting for Income
Taxes" requires an asset and liability approach for financial accounting and
reporting for income tax purposes. This statement recognizes (a) the amount of
taxes payable or refundable for the current year and (b) deferred tax
liabilities and assets for future tax consequences of events that have been
recognized in the financial statements or tax returns.

Deferred income taxes result from temporary differences in the recognition of
accounting transactions for tax and financial reporting purposes. There were no
temporary differences at December 31, 2000 and earlier years; accordingly, no
deferred tax liabilities have been recognized for all years.

The Company has cumulative net operating loss carryforwards of over $8,700,000
at December 31, 2001. No effect has been shown in the financial statements for
the net operating loss carryforwards as the likelihood of future tax benefit
from such net operating loss carryforwards is highly improbable. Accordingly,
the potential tax benefits of the net operating loss carryforwards, estimated
based upon current tax rates at December 31, 2001 and 2000 have been offset by
valuation reserves of the same amount.

NOTE #5 - Patent
----------------
In 1996, 1997 and 1998, the former parent corporation of Triad Compressor
expended funds for the patent research, legal and filing fees for the compressor
and centrifuge being developed by the Company. Once the patents are issued, the
costs will be amortized over the estimated useful and commercial life of the
products. All costs incurred for the patent were contributed to the respective
subsidiaries before the spinoff to the shareholders of Triad Compressor and
subsequent acquisition by the new parent corporation. In 1999, the Company
abandoned the compressor development and all patent costs attributed to the
compressor were written off. U. S. Patent Number 5,902,224 relating to the
centrifuge was issued on May 11, 1999.

                                      F-9

<PAGE>



                             Triad Innovations, Inc.
                          Notes to Financial Statements
                                December 31, 2001

NOTE #6 - Research and Development Costs
----------------------------------------
In 1996, 1997 and 1998, the former parent corporation of Triad Compressor
expended funds for the research and development costs of the compressor and
centrifuge being developed by the Company. Research and development costs
incurred were $3,494, $32,014 and $162,899 for 1996, 1997 and 1998. During 2001,
the Company expensed $4,433 compared to $65,000 in 2000, and $-0- in 1999 in
research and development costs. All costs incurred for the research and
development costs were contributed to the respective subsidiaries before the
spinoff to the shareholders of Triad Compressor and subsequent acquisition by
the new parent.

NOTE #7 - Stock Based Incentives
--------------------------------
Stock Options

As permitted by FASB Statement No 123, Accounting for Stock-Based Compensation,
the Company has elected to follow Accounting Principles Board Opinion No., 25,
Accounting for Stock Issued to Employees (APB 25) and related interpretations in
accounting for its employee option plans. Under APB 25, option expense is
recognized at the time of option grant if the exercise price of the Company's
employee stock option is below the fair market value of the underlying common
stock on the date of the grant.

The Company's Board of Directors has granted non-qualified stock options to
officers, directors, employees and investors of the Company. The following is a
summary of activity under these stock option plans for the years ended December
31, 2001 and 2000.


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


                                                                                                      Weighted
                                                                                     Non               Average
                                                              Employee            Employee            Exercise
                                                               Options             Options              Price
                                                          -----------------  ------------------  ------------------
       Options Outstanding, December 31, 2000                     -          $        -          $        -
       Granted                                                    6,5000,000                  -                .10
       Exercised                                                  -                   -                   -
       Canceled                                                   -                   -                   -
                                                          -----------------  ------------------  ------------------
     Options Outstanding, December 31, 2001                       6,500,000  $        -          $             .10
                                                          ================== ==================  ==================
</TABLE>


                                      F-10

<PAGE>



                             Triad Innovations, Inc.
                          Notes to Financial Statements
                                December 31, 2001

NOTE #7 - Stock Based Incentive -continued-
------------------------------------------

For all options granted during 2001, the weighted average shares at fair market
value of the grants was $.10 per option, and vested immediately. As permitted by
SFAS #123 "Accounting for Stock-Based Compensation," the Company has elected to
account for the stock option plans under APB #25 "Accounting for Stock Issued to
Employees." Accordingly, no compensation cast has been recognized for these
plans when options were issued at equal to or more than fair market value. The
weighted average remaining life for all options as of December 31, 2001 was
approximately 9.67 years.

NOTE #8 - Going Concern
-----------------------
The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. Currently, the Company does not have significant cash or other
material assets, nor does it have an established source of revenues sufficient
to cover its operating costs and to allow it to continue as a going concern. The
Company is currently seeking equity funding through private placements to raise
sufficient funds to continue operations and fund its ongoing research and
development activities.

NOTE #9 - Net Earnings (Loss) Per Share
---------------------------------------
Basic earnings (loss) per common share (BEPS) is based on the weighted average
number of common shares outstanding during each period. Diluted earnings (loss)
per common share is based on shares outstanding (computed as under BEPS) and
dilutive potential common shares. Shares from the exercise of the outstanding
options were not included in the computation of diluted loss per share, because
their inclusion would have been antidilutive for the years ended December 31,
2001 and 2000.

The following data shows the shares used in the computing loss per common share
including dilutive potential common stock;

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


         Common shares outstanding during the entire period.                                            17,035,708
         Weighted average shares paid for, but not issued during the period.                            -
                                                                                             ----------------------
         Weighted average number of common shares used in basic EPS                                     17,035,708
              dilutive effect of options.                                                               -
                                                                                             ----------------------
         Weighted average number of common shares and dilutive potential
              common shares used in diluted EPS.                                                        17,035,708
                                                                                             ======================

</TABLE>


                                      F-11

<PAGE>



                             Triad Innovations, Inc.
                          Notes to Financial Statements
                                December 31, 2001

NOTE #9 - Net Earnings (Loss) Per Share -continued-
--------------------------------------------------

Shares from the exercise of the outstanding options were not included in the
computation of diluted loss per share because their inclusion would have been
antidilutive for the year ended December 31, 2001.

NOTE #10 - Related Party Transactions
-------------------------------------
Since inception, officers and shareholders of the Company have loaned the
Company a total of $345,919. The notes are unsecured, non interest bearing and
due on demand.

NOTE #11 - Notes Payable
------------------------
<TABLE>
<CAPTION>
<S>                                                                                          <C>

The Company has the following note payable obligations.                                               2001
                                                                                             ----------------------
         Various unsecured short term notes, bearing interest at 15%
              per annum, due on demand.                                                      $       133,250
                                                                                             ======================
</TABLE>

Interest of $5,753 was accrued on these notes during the year 2001.

NOTE #12 - Prior Period Adjustment
----------------------------------
The Company's financial statements have been restated to reflect the correction
of an error in capitalization of assets, depreciation expense and related
accumulated depreciation. The Company had expensed the entire cost of the asset.
The Company had included certain general and administrative costs in the
overhead pool used to establish absorption rates. Management has determined that
certain amounts of these costs are not related to production and has
incorporated changes herewith.

The effect of this reinstatement for 2001 and 200 are as follows;

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


For the Year Ended                                            2001                                      2000
                                            -----------------------------------------   ------------------------------------
                                               As Previously          As               As Previously           As
                                                 Reported           Restated            Reported            Restated
                                            -----------------   -----------------  ------------------  ------------------
Balance Sheet $                              $ -                  $  63,000          $  -                $  63,000
Retained Earnings (Deficit)                    (8,803,408)       (8,753,008)         (8,253,928)        (8,190,928)
Statement of Operations                             1,940             6,140               1,114           (407,414)
Net Earnings (Loss)                              (545,280)         (549,480)           (403,214)          (407,414)
Net Earnings (Loss) Per
   Common Share and
   Common Share Equivalent
        Basic                                        (.03)             (.04)               (.03)              (.04)
        Diluted                                      (.03)             (.04)               (.03)              (.03)
</TABLE>

Retained deficit as of December 31, 2000 has been decreased by $50,400 for the
effects of the restatement on prior years.

                                      F-12