U.S. SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549


                                     FORM 10-KSB


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

                                         OR

            [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                           SECURITIES EXCHANGE ACT OF 1934
                         Commission file number 33-78910 -C


                            PACIFIC ALLIANCE CORPORATION.
                            -----------------------------
             (Name of Small Business Issuer as specified in its charter)
                          Delaware                      87-044584-9
        ---------------------------------------------   ------------
        (State or other jurisdiction of                 (I.R.S. employer
        incorporation or organization                   identification No.)
                                1661 Lakeview Circle
                                     Ogden, UT

                                     (Zip Code)
                                        84403
                                     -----------
                      (Address of principal executive offices)

           Issuer's telephone number, including area code:  (801) 399-3632


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

    Securities registered pursuant to Section 12(g) of the Exchange Act: None

     Check whether the Issuer (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the Exchange  Act 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 such filing requirements for the past 90 days. Yes X No

     Check if there is no disclosure  of  delinquent  filers in response to Item
405 of  Regulation  S-B  contained  in  this  form,  and no  disclosure  will be
contained, to the best of Issuer'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.

     The Issuer's revenues for the fiscal year ended December 31, 2001 were -0-.

     As of March 30, 2001,  10,970,009  shares of the Issuer's common stock were
issued and  outstanding of which  3,849,203 were held by  non-affiliates.  As of
March 30, 2001, there was no active market in the Issuers securities.


                    DOCUMENTS INCORPORATED BY REFERENCE: NONE






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                               TABLE OF CONTENTS

                                                                           Page
PART I
Item 1.    Description of Business.......................................... 3
Item 2.    Properties.......................................................11
Item 3.    Legal Proceedings................................................11
Item 4.    Submission of Matters to a Vote of Security Holders..............11


PART II
Item 5.    Market for the Registrant's Common Stock and Related Security
           Holder Matters...................................................11
Item 6.    Management's Discussion and Analysis of Financial Condition and
           Results of Operation.............................................15
Item 7.    Financial Statements.............................................17
Item 8.    Changes and Disagreements with Accountants on Accounting and
           Financial Disclosure.............................................27

PART III
Item 9 .   Directors, Executive Officers, Promoters and Control Persons;
           Compliance with Section 16(a) of the Exchange Act................27
Item 10.   Executive Compensation...........................................28
Item 11.   Security Ownership of Certain Beneficial Owners and Management...30
Item 12.   Certain Relationships and Related Party Transactions.............32
Item 13.   Exhibits, Financial Statements, Schedules and Reports
           on Form 8-K......................................................32
           Index to Exhibits................................................33


                                    PART I

Disclosure Regarding Forward Looking Statements

     The  Private  Securities  Litigation  Reform  Act of 1995  provides a "safe
harbor" for forward looking statements.  Certain information in this Form 10-KSB
include information that is forward looking, such as the Company's opportunities
to tax obligations,  its anticipated  liquidity and capital requirements and the
results  of legal  proceedings.  The  matters  referred  to in  forward  looking
statements  could be  affected  by the risks and  uncertainties  involved in the
Company's business.  These risks and uncertainties  include, but are not limited
to,  certain  other  risks  described  in Item 1 under  "and in Item 3 in "Legal
Proceedings" and in Item 7 in "Management's Discussion and Analysis of Financial
Condition  and  Results of  Operations."  Subsequent  written  and oral  forward
looking  statements  attributable to the Company or persons acting on its behalf
are expressly  qualified in their entirety by the cautionary  statements in this
paragraph and elsewhere in this Form 10-KSB.



                                      2

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ITEM 1.  DESCRIPTION OF BUSINESS

General

     Pacific  Alliance  Corporation  (the  "Company") is a Delaware  corporation
which is currently inactive.  The Company was previously engaged in the business
of distributing television programming.  On June 23, 1995, the Company filed for
protection  under Chapter 11 of the United States  Bankruptcy Code (Case No. BK.
No. SV  95-14737  KL).  On May 28, 1997 (the  "Confirmation  Date"),  the United
States  Bankruptcy  Court for the Central  District of California  Confirmed the
Company's  Modified  Plan of  Reorganization  (the  "Plan")  and  First  Amended
Disclosure  Statement (the  "Disclosure  Statement").  The Effective Date of the
Plan was June 8,  1997.  The  Company's  current  business  plan calls for it to
locate and acquire an operating company.

History

     The Company was  organized on April 22, 1986 under the laws of the State of
Utah under the name of Kaiser  Research,  Inc. On December 2, 1994,  the Company
changed its domicile  from the State of Utah to the State of Delaware  through a
reincorporation  merger.  In order to effect  the  reincorporation  merger,  the
Company  formed a wholly-owned  subsidiary  under Delaware law under the name of
PACSYND,  Inc.  After the  change  of the  Company's  domicile,  it  acquired  a
privately  held  corporation  ("Private  PSI") in a merger  transaction,  and in
connection  therewith,  the Company's  name was changed to Pacific  Syndication,
Inc.

     After the  acquisition  of Private PSI in December  1994,  and prior to its
filing of a Petition  under  Chapter 11, the Company was engaged in the business
of  transmitting  television  programming to television  stations and others via
satellite or land deliveries on behalf of production companies,  syndicators and
other distributors of television  programming.  Although the Private PSI was not
the survivor of the Merger, and did not exist after the Merger,  pursuant to the
accounting requirements of the Securities and Exchange Commission the Merger was
treated as a "reverse merger" and, solely for accounting  purposes,  Private PSI
was deemed to be the survivor.

     Private PSI was formed  under the laws of the State of Delaware in December
1991. Private PSI was formed to engage in the business of providing a variety of
television industry related services to its clients. Such services included, but
were not limited to, video tape duplication,  standards  conversion and delivery
of television programming by way of conventional carriers (such as UPS, Airborne
and Federal Express) and by satellite or fiber optic transmission.

     Private  PSI  provided  its  clients   (primarily   television   producers,
programmers  and  syndicators)  with  several  related but  different  services,
including distribution of syndicated programming to television stations, program
mastering  and standards  conversion,  infomercial  customization  and delivery,
master  tape  and  film  storage,   library  distribution   services  and  video
integration and delivery  services.  Private PSI developed its own tape tracking
and vault library  management system and a system for infomercial  customization
and voice-over integration.


                                      3

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     From its inception, Private PSI was undercapitalized. It funded its initial
operations  through the  factoring of its accounts  receivable.  The Company was
unable to commence  operations in the television  programming  services business
and  ultimately,  substantially  all of its assets were sold and it discontinued
its operations.

Chapter 11 Plan of Reorganization

     On June 23, 1995, the Company filed a Petition under Chapter 11 of the U.S.
Bankruptcy  Code. As of December  1995, the Company had sold most of its assets,
reduced  its debt and  terminated  its  operations.  By that date,  there was no
trading  market in the  Company's  securities.  In 1996,  Troika  Capital,  Inc.
("Troika"),  a Utah  corporation,  agreed to assist the Company in  developing a
Plan of  Reorganization  which would provide the Company,  its  shareholders and
creditors  with at  least  a  possibility  of  recouping  all or  some of  their
investment in the Company or the debts owed to them by the Company.  Troika is a
privately-owned  Utah  corporation  which has been  involved in various  company
formations, mergers and financings.

     Mark A.  Scharmann,  the President of Troika,  and now the President of the
Company,  and his affiliates,  were shareholders of the Company and creditors of
the Company at the time the Company  commenced its  bankruptcy  proceeding.  Mr.
Scharmann  was a founder of the Company in 1986 and was an original  shareholder
of the Company.  At the time the Company acquired Private PSI, he resigned as an
officer and director of the Company but remained a shareholder  and later became
a creditor of the Company.  Many of the investors in the Company are friends and
acquaintances  of Mr.  Scharmann.  The  Company  believed  that  if it  were  to
liquidate, there would be a total loss to creditors and shareholders. Because of
his own equity and debt  investment in the Company,  and his  relationship  with
other shareholders and creditors of the Company,  Mr. Scharmann agreed,  through
Troika,  to develop a business plan for the Company and to attempt to assist the
Company in carrying out such plan.

     The  Plan  of  Reorganization  developed  for the  Company  by  Troika  was
essentially as follows:

          1.  Eliminate  all  non-tax  liabilities  of the  Company  through the
     conversion of debt into equity.

          2. Replace the current  officers and directors of the Company with new
     management.  The new management includes the following: Mark Scharmann, Dan
     Price and David Knudson.

          3. File all required  Securities and Exchange Commission reports which
     may be  necessary  to bring the Debtor  current in its filing  requirements
     under  Section 15(d) of the 1934 Act. File all SEC reports which become due
     in the future.

          4. File any tax returns which are in arrears and file all required tax
     returns and reports which become due in the future.


                                      4

<PAGE>



          5. Use existing  cash of the Company to pay quarterly tax payments and
     for working capital.

          6. Prepare and bring current, the financial statements of the Company

          7. Attempt to raise  additional  cash to be used to fund quarterly tax
     payments and for working capital.

          8.  Locate a  private-company  which  is  seeking  to  become a public
     company by merging with the Company.

          9. Assist the Company in  completing  any merger  which is located and
     which the Board of Directors deems appropriate.

          10.  Assist  the  post-merged  company  with  shareholder   relations,
     financial public relations and with attempts to interest a broker-dealer in
     developing  a public  market  for the  Company's  common  stock so that the
     Company's shareholders  (including creditors whose' debt was converted into
     shares of the Company's  common stock) may ultimately have a opportunity to
     liquidate  their  shares  for value in market  or in  privately  negotiated
     transactions.

     The Plan and Disclosure  Statement was confirmed by the Bankruptcy Court on
May 28, 1997. The Effective Date of the Plan was June 8, 1997.

Post Confirmation Date Activities

     Since the  Confirmation  of the Plan of  Reorganization  the following have
occurred:

     1.   Pre-Confirmation  Date  non-tax  debt in the  amount of  approximately
          $1,458,000 was converted  into 1,458,005  shares of the Company common
          stock.

     2.   The Company completed its audited  financial  statements for the years
          ended December 31, 1995, 1996, 1997, 1998, 1999 and 2000.

     3.   Tax  liabilities  to the  Internal  Revenue  Service of  approximately
          $269,093 had been reduced to $92,398 as of December 31, 2001.

     4.   The  Company  effected  a  1-for-6  reverse  split  of its  issued  an
          outstanding  common  stock  in  order to  establish  a more  desirable
          capital structure for potential merger partners.

     5.   The Company changed its name to Pacific Alliance Corporation.


                                      5

<PAGE>



     6.   The Company obtained the preliminary  agreement of a registered-broker
          to make a market in the Company's common stock.

     7.   The Company filed an application for approval of secondary  trading in
          its common stock with the Division of Securities of the State of Utah.
          An Order Granting such  application was issued by the Utah Division of
          Securities which was effective through March 31, 1999.

     8.   The  Company  prepared  and filed Form  10-KSB's  for the years  ended
          December 31, 1996 -2000 and with this Form 10-KSB,  for the year ended
          December 31, 2001.

     9.   Effective February 22, 2000 - the Bankruptcy Court entered an Order of
          Final Decree closing the Bankruptcy Case.

Business Plan

     The  Company's  current  business  plan is to  serve as a  vehicle  for the
acquisition of, or the merger or  consolidation  with another company (a "Target
Business").  The Company intends to utilize its limited  current assets,  equity
securities, debt securities,  borrowings or a combination thereof in effecting a
Business  Combination  with a Target  Business  which the Company  believes  has
significant growth potential. The Company's efforts in identifying a prospective
Target Business are expected to emphasize  businesses  primarily  located in the
United  States;  however,  the  Company  reserves  the right to acquire a Target
Business  located  primarily  elsewhere.  While the Company may,  under  certain
circumstances,  seek to effect Business  Combinations  with more than one Target
Business,  as a  result  of its  limited  resources  the  Company  will,  in all
likelihood, have the ability to effect only a single Business Combination.

     The Company may effect a Business  Combination with a Target Business which
may be financially  unstable or in its early stages of development or growth. To
the  extent  the  Company  effects a  Business  Combination  with a  financially
unstable  company  or an  entity  in its early  stage of  development  or growth
(including  entities  without  established  records of revenue or  income),  the
Company  will become  subject to numerous  risks  inherent in the  business  and
operations of financially  unstable and early stage or potential emerging growth
companies.  In  addition,  to the  extent  that the  Company  effects a Business
Combination with an entity in an industry characterized by a high level of risk,
the Company will become subject to the currently  unascertainable  risks of that
industry.  An  extremely  high level of risk  frequently  characterizes  certain
industries which experience rapid growth.  Although  management will endeavor to
evaluate the risks inherent in a particular  industry or Target Business,  there
can be no  assurance  that the Company  will  properly  ascertain  or assess all
risks.

     Probable  Lack of  Business  Diversification.  As a result  of the  limited
resources of the Company, the Company, in all likelihood,  will have the ability
to effect only a single Business Combination. Accordingly, the prospects for the
Company's  success will be entirely  dependent upon the future  performance of a
single  business.  Unlike certain entities that have the resources to consummate

                                       6
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several Business  Combinations or entities  operating in multiple  industries or
multiple  segments of a single  industry,  it is highly  likely that the Company
will not have the  resources to  diversify  its  operations  or benefit from the
possible spreading of risks or offsetting of losses. The Company's probable lack
of diversification may subject the Company to numerous economic, competitive and
regulatory developments,  any or all of which may have a material adverse impact
upon the  particular  industry in which the Company  may operate  subsequent  to
consummation of a Business Combination.  The prospects for the Company's success
may become  dependent upon the  development or market  acceptance of a single or
limited number of products, processes or services. Accordingly,  notwithstanding
the possibility of capital investment in and management assistance to the Target
Business by the Company, there can be no assurance that the Target Business will
prove to be commercially viable.

     No Independent Appraisal of Potential Acquisition  Candidates.  The Company
does not anticipate that it will obtain an independent appraisal or valuation of
a Target Business. Thus, stockholders of the Company will need to rely primarily
upon  management  to evaluate a prospective  Business  Combination.  However,  a
Business  Combination  will not be  consummated  unless  it is  approved  by the
stockholders of the Company

     Limited Ability to Evaluate  Management of a Target  Business.  The role of
the present management of the Company, following a Business Combination,  cannot
be stated with any certainty. Although the Company intends to scrutinize closely
the  management  of  a  prospective  Target  Business  in  connection  with  its
evaluation of the  desirability  of effecting a Business  Combination  with such
Target Business, there can be no assurance that the Company's assessment of such
management  will prove to be correct.  While it is possible  that certain of the
Company's  directors or its executive  officers  will remain  associated in some
capacities with the Company following consummation of a Business Combination, it
is unlikely that any of them will devote a substantial  portion of their time to
the  affairs  of the  Company  subsequent  thereto.  Moreover,  there  can be no
assurance  that such  personnel  will have  significant  experience or knowledge
relating to the operations of the particular  Target Business.  The Company also
may seek to recruit additional  personnel to supplement the incumbent management
of the Target Business. There can be no assurance that the Company will have the
ability to recruit additional  personnel or that such additional  personnel will
have the requisite  skills,  knowledge or  experience  necessary or desirable to
enhance the incumbent  management.  In addition,  there can be no assurance that
the  future   management  of  the  Company  will  have  the  necessary   skills,
qualifications  or abilities to manage a public company intending to embark on a
program of business development.

     Selection of a Target Business and  Structuring of a Business  Combination.
Management of the Company will have  substantial  flexibility in identifying and
selecting a prospective  Target  Business  within the specified  businesses.  In
evaluating a prospective Target Business,  management will consider, among other
factors,  the  following:  (i) costs  associated  with  effecting  the  Business
Combination;  (ii) equity  interest in and opportunity for control of the Target
Business;  (iii) growth  potential of the Target  Business;  (iv) experience and
skill of  management  and  availability  of  additional  personnel of the Target
Business;  (v) capital  requirements of the Target  Business;  (vi)  competitive

                                       7
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position  of the  Target  Business;  (vii)  stage of  development  of the Target
Business;  (viii) degree of current or potential market acceptance of the Target
Business; (ix) proprietary features and degree of intellectual property or other
protection of the Target  Business;  (x) the financial  statements of the Target
Business;  and (xi) the  regulatory  environment  in which the  Target  Business
operates.

     The foregoing criteria are not intended to be exhaustive and any evaluation
relating to the merits of a particular  Target  Business  will be based,  to the
extent  relevant,  on the above factors as well as other  considerations  deemed
relevant by  management  in  connection  with  effecting a Business  Combination
consistent  with the  Company's  business  objectives.  In  connection  with its
evaluation of a prospective Target Business, management anticipates that it will
conduct a due diligence review which will encompass, among other things, meeting
with incumbent  management and inspection of facilities,  as well as a review of
financial,  legal and other  information  which  will be made  available  to the
Company.

     The time and  costs  required  to select  and  evaluate  a Target  Business
(including  conducting a due diligence  review) and to structure and  consummate
the  Business  Combination   (including   negotiating  relevant  agreements  and
preparing requisite documents for filing pursuant to applicable  securities laws
and state "blue sky" and corporation  laws) cannot presently be ascertained with
any degree of certainty.  The Company's current executive officers and directors
intend  to devote  only a small  portion  of their  time to the  affairs  of the
Company and,  accordingly,  consummation of a Business Combination may require a
greater period of time than if the Company's  management devoted their full time
to the Company's affairs. However, each officer and director of the Company will
devote such time as they deem reasonably necessary to carry out the business and
affairs of the Company,  including the evaluation of potential Target Businesses
and the negotiation of a Business  Combination  and, as a result,  the amount of
time devoted to the  business and affairs of the Company may vary  significantly
depending upon, among other things,  whether the Company has identified a Target
Business  or is engaged in active  negotiation  of a Business  Combination.  Any
costs  incurred  in  connection  with the  identification  and  evaluation  of a
prospective Target Business with which a Business  Combination is not ultimately
consummated  will  result in a loss to the  Company  and  reduce  the  amount of
capital  available  to  otherwise  complete  a Business  Combination  or for the
resulting entity to utilize.

     The Company  anticipates that various prospective Target Businesses will be
brought  to  its  attention  from  various  non-affiliated  sources,   including
securities  broker-dealers,  investment bankers,  venture capitalists,  bankers,
other members of the  financial  community and  affiliated  sources,  including,
possibly, the Company's executive officer, directors and their affiliates. While
the  Company has not yet  ascertained  how,  if at all,  it will  advertise  and
promote  itself,  it may elect to publish  advertisements  in financial or trade
publications seeking potential business acquisitions. While the Company does not
presently anticipate engaging the services of professional firms that specialize
in finding business acquisitions on any formal basis (other than the independent
investment  banker),  the Company may engage such firms in the future,  in which
event the Company may pay a finder's fee or other compensation.


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     As a  general  rule,  Federal  and state  tax laws and  regulations  have a
significant  impact upon the structuring of business  combinations.  The Company
will  evaluate  the  possible  tax  consequences  of  any  prospective  Business
Combination  and will  endeavor  to  structure a Business  Combination  so as to
achieve the most favorable tax treatment to the Company, the Target Business and
their  respective  stockholders.  There can be no  assurance  that the  Internal
Revenue Service or relevant state tax authorities will ultimately  assent to the
Company's tax treatment of a particular consummated Business Combination. To the
extent the  Internal  Revenue  Service  or any  relevant  state tax  authorities
ultimately  prevail  in  recharacterizing   the  tax  treatment  of  a  Business
Combination,  there may be adverse tax  consequences to the Company,  the Target
Business and their respective stockholders.  Tax considerations as well as other
relevant  factors will be evaluated in  determining  the precise  structure of a
particular Business  Combination,  which could be effected through various forms
of a merger, consolidation or stock or asset acquisition.

     There currently are no limitations on the Company's ability to borrow funds
to effect a Business  Combination.  However, the Company's limited resources and
lack of operating  history may make it difficult to borrow funds. The amount and
nature of any borrowings by the Company will depend on numerous  considerations,
including the Company's capital  requirements,  potential lenders' evaluation of
the Company's ability to meet debt service on borrowings and the then prevailing
conditions in the financial markets, as well as general economic conditions. The
Company does not have any arrangements with any bank or financial institution to
secure additional financing and there can be no assurance that such arrangements
if  required or  otherwise  sought,  would be  available  on terms  commercially
acceptable or otherwise in the best  interests of the Company.  The inability of
the  Company  to  borrow  funds  required  to effect or  facilitate  a  Business
Combination,  or to provide funds for an  additional  infusion of capital into a
Target Business,  may have a material adverse effect on the Company's  financial
condition  and  future  prospects,  including  the  ability to effect a Business
Combination.  To  the  extent  that  debt  financing  ultimately  proves  to  be
available, any borrowings may subject the Company to various risks traditionally
associated with indebtedness,  including the risks of interest rate fluctuations
and  insufficiency  of cash flow to pay principal and interest.  Furthermore,  a
Target Business may have already incurred debt financing and, therefore, all the
risks inherent thereto.

Proposed Change of Control

     In October,  2001,  the Company  entered into an agreement with PIL S.A., a
Switzerland  Corporation,  under  which  PIL S.A.  would  move to  increase  the
company's  capital and bring in new majority  shareholders.  Total capital to be
brought to the Company was to be $500,000 by October 31, 2001, and an additional
$500,000  by  December  31,  2001,  at a rate of $0.20 per  share.  The  various
transactions scheduled for completion during the fourth quarter of 2001 have not
yet been completed.  The Company received  $149,898 between October and December
2001. The agreement has not been  terminated by either party,  and new terms are
still being negotiated.



                                      9

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Competition

     The Company expects to encounter  intense  competition  from other entities
having  business  objectives  similar  to that  of the  Company.  Many of  these
entities are well  established and have extensive  experience in connection with
identifying and effecting business  combinations directly or through affiliates.
Many of these competitors possess greater financial,  technical, human and other
resources  than the Company and there can be no assurance  that the Company will
have the ability to compete successfully. The Company's financial resources will
be limited in  comparison  to those of many of its  competitors.  Further,  such
competitors  will  generally not be required to seek the prior approval of their
own  stockholders,  which may enable them to close a Business  Combination  more
quickly than the Company.  This inherent  competitive  limitation may compel the
Company to select certain less attractive Business Combination prospects.  There
can be no assurance  that such  prospects will permit the Company to satisfy its
stated business objectives.

Uncertainty of Competitive Environment of Target Business

     In the event that the Company succeeds in effecting a Business Combination,
the Company will, in all likelihood,  become subject to intense competition from
competitors of the Target  Business.  In particular,  certain  industries  which
experience  rapid  growth  frequently  attract an  increasingly  large number of
competitors   including   competitors  with  increasingly   greater   financial,
marketing,  technical, human and other resources than the initial competitors in
the  industry.  The degree of  competition  characterizing  the  industry of any
prospective  Target  Business cannot  presently be ascertained.  There can be no
assurance that, subsequent to a Business Combination,  the Company will have the
resources  to compete  effectively,  especially  to the  extent  that the Target
Business is in a high-growth industry.

Certain Securities Laws Considerations

     Under  the  Federal   securities   laws,   public  companies  must  furnish
stockholders   certain   information  about  significant   acquisitions,   which
information may require  audited  financial  statements for an acquired  company
with respect to one or more fiscal  years,  depending  upon the relative size of
the  acquisition.  Consequently,  the  Company  will  only be able to  effect  a
Business  Combination  with a  prospective  Target  Business  that has available
audited financial statements or has financial statements which can be audited.

Shareholder Approval

     The Company  will not effect any merger  unless it first  obtains  approval
from its shareholders.  In connection with obtaining  shareholder  approval of a
proposed  merger,  the Company  will  distribute  a Proxy,  Notice of Meeting of
Stockholders and Proxy Statement which contains  information  about the proposed
acquisition transaction.  Such information will likely include audited financial
statements and other financial  information  about the acquisition  target which
meets the requirements of Form 8-K as promulgated under the Securities  Exchange
of 1934,  as  amended,  resumes of  potential  new  management,  description  of

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<PAGE>

potential risk factors which  shareholders  should  consider in connection  with
their  voting on the  proposed  acquisition  and a  description  of the business
operations of the acquisition target.

     Troika and its  affiliate  will vote all of their  shares of the  Company's
common  stock for or against  any merger  proposal  in the same ratio  which the
shares  owned  by  other   shareholders  are  voted.   This  will  permit  other
shareholders to be able to effectively  determine  whether the Company  acquires
any particular Operating Company. The merger will be effected only if a majority
of the other shareholders attending the meeting of shareholders in person and/or
by proxy,  vote in favor of such proposed  merger.  The shares of Troika and its
affiliates  will be included  for  purposes of  determining  whether a quorum of
shareholders is present at the meeting.

Employees

     As of the date of this Prospectus, the Company has no full time employees.

ITEM 2.  PROPERTIES

     The Company's offices are located at 1661 Lakeview Circle, Ogden, UT 84403.
The Company, pursuant to an oral agreement,  utilizes an office at the residence
of Mark A. Scharmann, a stockholder of the Company and the Company's President.

ITEM 3.  LEGAL PROCEEDINGS

     None.

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

     No matters were presented to the Company's  Shareholders  for a vote during
the last quarter of 2001.


                                    PART II

ITEM 5. MARKET FOR THE  REGISTRANT'S  COMMON STOCK AND RELATED  SECURITY  HOLDER
        MATTERS

     There is no active  market for the Company's  common  stock.  The Company's
common stock is sporadically  traded on a workout basis in the  over-the-counter
market.

Shares Issued in Unregistered Transactions


                                      11

<PAGE>



Shares Issued Prior to Confirmation Date

     Immediately   prior  to  the   confirmation   of  the  Company's   Plan  of
Reorganization  by the Bankruptcy  Court on May 28, 1997,  there were a total of
12,594,422 shares of the Company's common stock issued and outstanding. The Plan
of  Reorganization,  called  for a  1-for-6  reverse  split  of the  issued  and
outstanding shares which reduced the 12,594,422 shares to 2,099,125 shares.

Shares Issued to Troika

     Pursuant to the Plan of  Reorganization,  5,000,000 shares of the Company's
common stock,  calculated  after the reverse stock split,  were issued to Troika
Capital Investment.  The shares issued to Troika were issued pursuant to Section
4(2) of the Securities Act of 1993, as amended (the "Securities Act").

Shares Issued to Creditors

     A total 1,458,005  shares of the Company's common stock  (calculated  after
the 1-for-6  reverse stock split) were issued to creditors  pursuant to the Plan
of  Reorganization.  In exchange for every $1.00 of Allowed Unsecured Claims (as
defined in the Plan of Reorganization) a creditor was issued one share of common
stock,  one  Class A  Warrant  and One  Class B  Warrant.  Each  Class A Warrant
entitles the holder to purchase one share of the Company's common stock at $2.50
per share for a period of three years  commencing on the  Effective  Date of the
Plan.  Class A Warrants  expired in 2000 and none were  exercised.  Each Class B
Warrant  entitles the holder to purchase one share of the Company's common stock
at 5.00 per share for a period of five years commencing on the Effective Date of
the Plan. The Effective Date of the Plan was June 8, 1997. The 1,458,005  shares
and the Class A and Class B Warrants issued to claim holders,  were issued under
Section 1145 of the United States  Bankruptcy  Code (the  "Code").  Section 1145
provides that the securities  registration  requirements  of federal,  state and
local  laws do not apply to the offer or sale of  securities  issued by a debtor
(or  its   successor)  if  (i)  the  offer  or  sale  occurs  under  a  plan  of
reorganization   and  (ii)  the  securities  are  transferred  in  exchange  (or
principally  in  exchange)  for a  claim  against  or  interest  in the  debtor.
Accordingly,  under  Section  1145 of the Code,  the issuance of common stock in
exchange  for a Claim  against  the  Company  was exempt  from the  registration
requirements  of Section 5 of the  Securities Act of 1933, as amended (the "1933
Act")  and from the  registration  requirements  of any state  securities  laws.
Approximately 86 creditors were issued shares in exchange for claims against the
Company.

     Resales  or  Transfers  of  Plan  Securities.  Any  person  who  is  not an
"underwriter"  under  Section 1145 of the Code or a "dealer"  under the 1933 Act
and who transfers  shares received under the Plan ("Plan  Securities")  need not
comply  with the  registration  requirements  of the  1933  Act or of any  state
securities laws. The term "underwriter",  as used in Section 1145, includes four
categories  of persons,  which are referred to in this  Disclosure  Statement as
"Controlling  Persons",  "Accumulators",   "Distributors"  and  "  Syndicators".
"Dealers" and the four types of underwriters are discussed below.


                                      12

<PAGE>



          a. Controlling Persons.  "Controlling  Persons" are persons who, after
     the Effective Date, have the power,  whether direct or indirect and whether
     formal  or  informal,  to  control  the  management  and  policies  of  the
     reorganized debtor.  Whether a person has such power depends on a number of
     factors,  including the person's equity in the reorganized  debtor relative
     to other equity holders, and whether the person, acting alone or in concert
     with others,  has a contractual  or other  relationship  giving that person
     power over management policies and decisions. In order to transfer the Plan
     Securities without registration,  a Controlling Person would be required to
     comply  with the  restrictions  set forth in SEC Rule 144,  other  than the
     holding period requirement set forth in that Rule. The restrictions of Rule
     144 are complicated. In general, in order for the resale of Plan Securities
     by a Controlling  Person to be permissible  under Rule 144, the Controlling
     Person must not sell during any three-month  period,  more than one percent
     of the Company's  common stock (or, if greater,  the average  weekly report
     volume of trading in such securities).

          b.  Accumulators  and  Distributors.  "Accumulators"  are  persons who
     purchase  a  Claim  against  or  Interest  in the  Company  with a view  to
     distribution  of any  Plan  Securities  to be  received  under  the Plan in
     exchange for such Claim or Interest.  "Distributors"  are persons who offer
     to sell Plan Securities for the holders of those securities.  In a 1986 SEC
     No- Action Letter  (Manville  Corp.),  the SEC staff took the position that
     resales by Accumulators and Distributors of securities  distributed under a
     plan are exempt from the registration  requirements of the 1933 Act if made
     in "ordinary trading transactions".  The SEC staff took the position that a
     transaction is an ordinary trading transaction if it is made on an exchange
     or in the over-the-counter  market at a time when the issuer is a reporting
     company  under  the  1934 Act and does  not  involve  any of the  following
     factors:

               (i)  concerted   action  by  recipients  of  Plan  Securities  in
          connection  with  the sale of such  securities,  concerted  action  by
          distributors  on behalf of one or more such  recipients  in connection
          with such sales, or both;

               (ii)  informational  documents  concerning  the  offering  of the
          securities prepared or used to assist in the resale of such securities
          other than this Disclosure  Statement and any  supplements  hereto and
          documents  filed with the SEC by the issuer  pursuant to the 1934 Act;
          or

               (iii) special  compensation  to brokers and dealers in connection
          with the sale of such  securities  designed as a special  incentive to
          resell such  securities,  other than  compensation  that would be paid
          pursuant to arm's length negotiations between a seller and a broker or
          dealer,   each  acting   unilaterally,   and  not  greater   than  the
          compensation that would be paid for a routine  similar-sized sale of a
          similar issue.

          c.  Syndicators.  "Syndicators"  are  persons  who  offer  to buy Plan
     Securities from the holders with a view to distribution, under an agreement
     made in connection with the Plan, with consummation of the Plan or with the
     offer or sale of securities under the Plan.


                                      13

<PAGE>



          d. Dealers. "Dealers" are persons who engage either for all or part of
     their time, directly or indirectly,  as agent, broker, or principal, in the
     business of offering,  buying,  selling, or otherwise dealing or trading in
     securities.  Section 4(3) of the 1933 Act exempts  transactions in the Plan
     Securities  by dealers  taking place more than 40 days after the  Effective
     Date.  Within the 40-day period after the Effective  Date,  transactions by
     dealers  who are  stockbrokers  are exempt  from the 1933 Act  pursuant  to
     Section  1145 (a) (4) of the Code,  as long as the  stockbrokers  deliver a
     copy of this Disclosure Statement (and periodic supplements hereto, if any,
     as  ordered  by the  Court)  at or  before  the  time of  delivery  of Plan
     Securities to their  customers.  This requirement  specifically  applies to
     trading and other after- market  transactions in such  securities.  In this
     regard,  however,  in the 1986 SEC No-Action Letter (Manville  Corp.),  the
     staff of the SEC took the position  that it would not  recommend  action if
     stockbrokers  did  not  comply  with  the  Disclosure   Statement  delivery
     requirements  of  Section  1145  (a)  (4)  as  long  as the  issuer  of the
     securities  was a reporting  person  under the 1934 Act and was current and
     timely in its reporting obligations.

Shares Issued Subsequent to Confirmation Date

     As part of the Plan, the Company issued  5,000,000 shares to Troika Capital
for  $25,000.  Subsequent  to the  Confirmation  Date,  the  Company  issued its
securities in non-registered  transactions pursuant to the exemption provided by
Section 4(2) of the Securities  Act. The Company did not pay a commission or any
finders fees in connection with such transactions. The securities issued in such
transactions were as follows:

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

                          Number of
       Issued To           Shares        Date              Consideration
       ---------           ------        ----              -------------
Harold Spector             16,000      5/28/98   Consulting services valued at $80

Workout Specialists, Inc.  200,000     6/29/98   Consulting services valued at $1,000

William M. Hynes, II       80,078      9/30/98   These shares were issued to Mr.
                                                 Hynes as payment in full for
                                                 $80,077.57 in IRS tax credits
                                                 transferred to the Company by Mr.
                                                 Hynes.

Mark Scharmann             300,000     2/29/00   Repayment of $15,000 loan from
                                                 Mark Scharmann

William M. Hynes, II       150,000     5/20/00   Consulting Services valued at
                                                 $15,000

Total:                     746,078
</TABLE>

                                       14
<PAGE>

Shares Issued for Services

     Those persons who have been serving as the Company's officers and directors
since 1996 have been issued shares of common stock for services rendered in lieu
of cash compensation.  Total compensation shares issued to each of the Company's
officers and directors is as follows:

      Mark A. Scharmann             601,000
      Dan Price                      32,250
      David Knudson               1,033.551

Holders

     As of March  30,  2001,  there  were  10,970,009  shares  of  common  stock
outstanding and approximately 152 stockholders of record of common stock.

Dividends

     The Company has not paid any cash dividends to date and does not anticipate
or contemplate  paying  dividends in the foreseeable  future.  It is the present
intention of management to utilize all available  funds for the  development  of
the Company's business.

ITEM 6. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATION

     The Company is currently  inactive.  The Company was previously  engaged in
the business of distributing television programming.  On September 23, 1995, the
Company filed for  protection  under Chapter 11 of the United States  Bankruptcy
Code (Case No. BK.  No. SV  95-14737  KL).  On May 28,  1997 (the  "Confirmation
Date"),  the  United  States  Bankruptcy  Court  for  the  Central  District  of
California  Confirmed the Company's Modified Plan of Reorganization (the "Plan")
and  First  Amended  Disclosure  Statement  (the  "Disclosure  Statement").  The
Effective Date of the Plan was June 8, 1997. On February 23, 2000, United States
Bankruptcy  Judge  Kathleen T. Lax  entered a "Final  Decree  Order  Pursuant to
Bankruptcy  Code Section  350",  and thereby  issued a final decree  closing the
bankruptcy case. The claim by the Internal Revenue Service was not discharged by
the Final Decree Order.

     The Plan of Operation of the Company is further described in Item 2 of this
Form 10-KSB.

Liquidity and Capital Resources

     As of December  31, 2001,  the Company had total assets of $88.  Therefore,
the Company had no usable cash as of  December  31, 2001 and is  dependent  upon
loans and  advances  from its  management  and  affiliates  to fund its expenses

                                       15
<PAGE>

pending the completion of an merger or acquisition. As of December 31, 2001, the
Company  had  total  liabilities  of  $527,878  of  which  $152,154  was for tax
liabilities and $149,898 was for a stock subscription received.

        The Company intends to pay for various filing fees and professional fees
relating to its reporting obligations and to fund the costs which may arise from
seeking new business opportunities.

     It is likely that the Company will be required to raise additional  capital
in order to  attract  and  potential  acquisition  partner  but  there can be no
assurance that the Company will be able to raise any additional  capital.  It is
also likely that any future  acquisition  will be made  through the  issuance of
shares of the  Company's  common  stock which will result in the dilution of the
percentage ownership of the current shareholders.

     The  auditors'  report  on  the  Company's   December  31,  2001  financial
statements  contains a going  concern  qualification,  which  provides  that the
Company's  ability to continue as a going  concern is dependent  upon it raising
additional  capital.  The Company will continue to be an inactive company unless
and until it raises additional capital and acquires an operating company.  There
can be no assurance that either will occur.

Results of Operations

     The Company has not commenced any active  operations since its Confirmation
Date and  generated no revenue for the year ended  December 31, 2001 or the year
ended  December 31, 2000. The Company had total expenses of $79,503 for the year
ended  December 31, 2001.  For the year ended December 31, 2000, the Company had
no revenue and expenses of $174,164.  The Company  anticipates  that it will not
generate any revenues until, it acquires or merges with another company.

Plan of Operation

     The  Company's  current plan of operation is to acquire  another  operating
company. (See "Item 1 - Description of Business - Current Business Plan.")

     It is likely that any acquisition  will be a "reverse  merger"  acquisition
whereby the Company acquires a larger company by issuing shares of the Company's
common stock to the  shareholders  of the larger  company.  Although the Company
would be the surviving or parent  company from a corporate law  standpoint,  the
shareholders of the larger company would be the controlling  shareholders of the
Company  and the  larger  company  would be treated  as the  survivor  or parent
company from an  accounting  point of view.  It can be expected that any company
which  may  desire  to be  acquired  by the  Company  will  do so as  method  of
potentially  becoming a public company more quickly and less expensively than if
such company  undertook its own public offering.  Even if the Company is able to
acquire  another  company,  there can be no assurance that the Company will ever
operate at a profit.


                                      16

<PAGE>



Inflation

     The Company  does not believe that  inflation  will  negatively  impact its
business plans.

Forward-looking Statements

     The  foregoing  discussion  in  "Management's  Discussion  and  Analysis of
Financial  Condition  and  Results  of  Operations"   contains   forward-looking
statements,  within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act, which reflect  Management's  current
views with  respect to future  events and  financial  performance.  Such forward
looking  statements  may be deemed to include,  among other  things,  statements
relating to the Company's plan of operation.  These  forward-looking  statements
are subject to certain risks and uncertainties,  including,  but not limited to,
future  financial  performance  and  future  events,   competitive  pricing  for
services,  costs of obtaining  capital as well as  national,  regional and local
economic conditions. Actual results could differ materially from those addressed
in the forward looking statements.  Due to such uncertainties and risks, readers
are cautioned  not to place undue  reliance on such  forward-looking  statement,
which speak only as of the date whereof.

ITEM 7.  FINANCIAL STATEMENTS

                         Index to Financial Statements

Pacific Alliance Corporation  Financial Statements                        Page

      Report of Independent Accountants ....................................18

      Balance Sheet.........................................................19
        December 31, 2001 and 2000

      Statements of Operations..............................................20
        Years ended December 31, 2001 and 2000

      Statements of Stockholders' Deficit...................................21
        Years ended December 31, 2001 and December 31, 2000

      Statements of Cash Flows..............................................22
         Years ended December 31, 2001 and 2000

      Notes to Financial Statements.........................................23



                                      17

<PAGE>







                         INDEPENDENT AUDITORS' REPORT



To the Stockholders of
Pacific Alliance Corporation

We have audited the accompanying  balance sheets of Pacific Alliance Corporation
(a Delaware  corporation in the  Development  Stage) as of December 31, 2001 and
2000, and the related statements of operations,  stockholders' deficit, and cash
flows for the years then ended and the period from inception of the  development
stage (December 21, 1995) through December 31, 2001. These financial  statements
are the responsibility of the Corporation's management. Our responsibility is to
express an opinion on these financial statements based on our audits.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Pacific Alliance Corporation (a
Development  Stage Company) as of December 31, 2001 and 2000, and the results of
its  operations  and its cash flows for the years then ended and the period from
inception of the  development  stage  (December 21, 1995)  through  December 31,
2001, in conformity with accounting  principles generally accepted in the United
States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 1 to the
financial  statements,  the  Company  does not  generate  revenue  and has a net
capital deficiency that raise substantial doubt about its ability to continue as
a going  concern.  Management's  plans  in  regard  to  these  matters  are also
described in Note 1. The  financial  statements  do not include any  adjustments
that might result from the outcome of this uncertainty.



                              Rose, Snyder & Jacobs
                              A Corporation of Certified Public Accountants

Encino, California
March 25, 2002






                                      18

<PAGE>




                         PACIFIC ALLIANCE CORPORATION
                         (A DEVELOPMENT STAGE COMPANY)
                                BALANCE SHEETS
                          December 31, 2001 AND 2000


                                    ASSETS

                                                             2001       2000
                                                          ---------  ---------
CURRENT ASSETS
      Cash                                                $      88  $      86
                                                          ---------  ---------

        TOTAL ASSETS                                      $      88  $      86
                                                          =========  =========



                     LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
   Accrued interest                                       $  20,533  $  18,503
   Other accrued expenses                                     6,538     18,640
   Advance from officer, note 6                             132,755    171,476
   Current portion of tax liabilities, note 2                92,398     88,655
   Notes payable, note 4                                     60,000     50,000
                                                          ---------  ---------

      TOTAL CURRENT LIABILITIES                             312,224    347,274

LONG TERM LIABILITIES
   Tax liabilities, note 2                                   59,756     71,099
   Notes payable, note 4                                          -     30,000
   Management compensation liability, note 5                  6,000          -
   Common stock subscription deposit, note 5                149,898          -
                                                         ----------  ---------

      TOTAL LIABILITIES                                     527,878    448,373
                                                         ----------  ---------

STOCKHOLDERS' DEFICIT
   Common stock, par value $.001,
     30,000,000 shares authorized,
     10,970,009 shares issued and outstanding, note 5       424,371    424,371
   Additional paid in capital                             2,223,472  2,223,472
   Accumulated deficit prior to the development stage    (2,632,447)(2,632,447)
   Accumulated deficit during the development stage        (543,186)  (463,683)
                                                        -----------  ---------

      TOTAL STOCKHOLDERS' DEFICIT                          (527,790)  (448,287)
                                                        -----------  ---------

        TOTAL LIABILITIES AND
           STOCKHOLDERS' DEFICIT                        $        88  $      86
                                                        ===========  =========

       See independent auditors' report and notes to financial statements.

                                      19

<PAGE>




                         PACIFIC ALLIANCE CORPORATION
                        (A DEVELOPMENT STAGE COMPANY)
                           STATEMENTS OF OPERATIONS
                FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000


                                                              From Inception
                                                              of the Development
                                                              Stage, December
                                                              21, 1995, Through
                                       2001          2000     December 31, 2001
                                   --------------------------------------------

SALES                              $      -       $       -   $              -
   -

GROSS MARGIN                              -               -                  -

OPERATING EXPENSES                        -               -                  -

OTHER INCOME (EXPENSES)
   Professional fees                (24,763)        (70,312)          (160,679)
   Management compensation, note 5   (6,000)        (67,597)          (172,679)
   Other expenses                   (12,164)         (7,538)           (25,433)
   Taxes                                  -               -            (26,000)
   Interest expense                 (36,576)        (28,717)          (136,325)
   Loss on investments in securities     -                -             (6,844)
   Reorganization fees                   -                -            (84,301)
                                   --------       ---------   ----------------

      LOSS BEFORE
         EXTRAORDINARY ITEM         (79,503)       (174,164)          (612,261)

EXTRAORDINARY ITEM
   Gain on forgiveness of tax
    debt, Note 7                          -          69,075             69,075
                                  ---------       ---------   ----------------

        NET LOSS                  $ (79,503)      $(105,089)  $       (543,186)
                                  =========       =========   ================


BASIC NET LOSS PER SHARE
   Loss before extraordinary item $   (0.01)      $   (0.02)
   Extraordinary item                     -            0.01
                                  ---------       ---------

        NET LOSS                  $   (0.01)      $  ( 0.01)
                                  =========       =========


WEIGHTED AVERAGE NUMBER
    OF SHARES                    10,735,368      10,325,467
                                  =========       =========

       See independent auditors' report and notes to financial statements.

                                      20

<PAGE>



                         PACIFIC ALLIANCE CORPORATION
                        (A DEVELOPMENT STAGE COMPANY)
                     STATEMENTS OF STOCKHOLDERS' DEFICIT
                FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<TABLE>
<S>                         <C>          <C>       <C>         <C>          <C>         <C>
                                                               Accumulated  Accumulated
                                                                 Deficit      Deficit
                             Shares of             Additional     Prior        After
                              Common      Common     Paid-in   to December   December
                               Stock       Stock     Capital     21, 1995    21, 1995     Total
                            ------------ --------- ----------- ------------ ---------- ------------
Balance at
 December 21, 1996           12,594,422  $415,500  $  471,500  $(2,632,447) $ (57,965) $(1,803,412)

Reverse split 1-for-6,
note 5                      (10,495,297)        -           -            -          -            -

Conversion of trade
 accounts payable, note 5     1,458,005     1,458   1,456,547            -          -    1,458,005

Issuance of
 common stock, note 5         5,000,000     5,000      20,000            -          -       25,000

Issuance of common stock,
  note 5                        216,000       216         864            -          -        1,080

Issuance of common stock for
 IRS claim reduction, note 5     80,078        80      79,998            -          -       80,078

Net loss                              -         -           -            -   (300,629)    (300,629)
                            ------------ --------- ----------- ------------ ---------- ------------

Balance at
  December 31, 1999           8,853,208   422,254   2,028,909   (2,632,447)  (358,594)    (539,878)

Issuance of common
 stock, note 5                2,116,801     2,117     194,563            -          -      196,680

Net loss                              -         -           -            -   (105,089)    (105,089)
                           ------------- --------- ----------- ------------ ---------- ------------

Balance at
  December 31, 2000          10,970,009   424,371   2,223,472   (2,632,447)  (463,683)    (448,287)

Net loss                              -         -           -            -    (79,503)     (79,503)
                           ------------- --------- ----------- ------------ ---------- ------------

Balance at
  December 31, 2001          10,970,009  $424,371  $2,223,472  $(2,632,447) $(543,186) $  (527,790)
                           ============= ========= =========== ============ ========== ============

</TABLE>

                      See independent auditors' report and
                         notes to financial statements.

                                       21

<PAGE>



                          PACIFIC ALLIANCE CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED December 31, 2001 AND 2000

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

                                                                         From Inception of
                                                                         the Development
                                                                         Stage, December
                                                                         21, 1995, Through
                                                      2001       2000    Dec.  31, 2001
                                                    --------- ---------- -----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                         $(79,503) $(105,089) $      (543,186)
   Adjustment to reconcile net loss to net cash
      used in operating activities:
       Loss on investments in securities                   -          -            6,844
       Gain on forgiveness of tax debt                     -    (69,075)         (69,075)
       Change in assets and liabilities
       Decrease in accounts receivable                     -          -           95,841
       Increase (decrease) in accrued expenses       (10,072)    16,217           55,919
       Increase in management compensation liability   6,000     67,597          172,680
       Decrease in tax liabilities                    (7,600)   (23,261)         (79,390)
                                                    --------- ---------- -----------------

      NET CASH USED IN OPERATING ACTIVITIES          (91,175)  (113,611)        (360,367)
                                                    --------- ---------- -----------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of investments                                 -          -          (30,180)
   Proceeds from sale of investments                       -          -           23,336
                                                    --------- ---------- -----------------

      NET CASH USED IN
        INVESTING ACTIVITIES                               -          -           (6,844)
                                                    --------- ---------- -----------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Bank overdraft                                          -          -           (2,586)
   Proceeds from notes payable                        10,000     50,000           90,000
   Repayment of notes payable                        (30,000)         -          (30,000)
   Advance from officer                               89,250    154,030          355,293
   Repayment of advance from officer                (127,971)   (90,335)        (220,306)
   Proceeds from issuance of common stock                  -          -           25,000
   Proceeds from common stock subscription           149,898          -          149,898
                                                    --------- ---------- -----------------

      NET CASH PROVIDED BY FINANCING ACTIVITIES       91,177    113,695          367,299
                                                    --------- ---------- -----------------

       NET INCREASE IN CASH                                2         84               88

CASH AT BEGINNING OF PERIOD                               86          2                -
                                                    --------- ---------- -----------------

CASH AT END OF PERIOD                               $     88  $      86  $            88
                                                    ========= ========== =================

Supplementary disclosures:
 Interest paid in cash                              $ 34,546  $  24,260  $       103,024
                                                    ========= ========== =================
</TABLE>

                      See independent auditors' report and
                         notes to financial statements.

                                       22

<PAGE>



                          PACIFIC ALLIANCE CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 AND 2000


1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization and Going Concern

     Pacific Alliance  Corporation (the "Company"),  whose name was changed from
     Pacific Syndication,  Inc. in 1997, was originally incorporated in December
     1991 under the laws of the State of  Delaware.  It also became a California
     corporation in 1991. Pacific Syndication,  Inc. was engaged in the business
     of videotape  duplication,  standard  conversion and delivery of television
     programming.  In  1994,  Pacific  Syndication,   Inc.  merged  with  Kaiser
     Research, Inc.

     The Company  filed a petition for Chapter 11 under the  Bankruptcy  Code in
     June 1995. The debtor in possession kept operating until December 21, 1995,
     when all assets, except cash and accounts receivable,  were sold to a third
     party, Starcom. The purchaser assumed all post-petition liabilities and all
     obligations collateralized by the assets acquired.

     In 1997, a  reorganization  plan was approved by the Bankruptcy  Court, and
     the remaining creditors of all liabilities subject to compromise, excluding
     tax claims,  were issued  1,458,005 shares of the Company's common stock in
     March  1998,   which   corresponds   to  one  share  for  every  dollar  of
     indebtedness.  Each share of common stock issued was also accompanied by an
     A warrant and a B warrant (see note 5). The IRS portion of tax  liabilities
     was payable in cash by quarterly  installments  (see note 2).  Repayment of
     other taxes is still being negotiated.

     The accompanying financial statements have been prepared on a going concern
     basis,  which  contemplates the realizations of assets and the satisfaction
     of liabilities  in the normal course of business.  As shown in the December
     31, 2001  financial  statements,  the Company did not generate any revenue,
     and has a net capital  deficiency.  These factors among others may indicate
     that the  Company  will be  unable to  continue  as a going  concern  for a
     reasonable  period of time.  For the year  ended  December  31,  2001,  the
     Company funded its  disbursements  using loans from an officer and proceeds
     from common stock subscription (see note 5).

     The  financial  statements do not include any  adjustments  relating to the
     recoverability  of assets and  classification  of liabilities that might be
     necessary should the Company be unable to continue as a going concern.

     The Company is no longer operating, and will attempt to locate new business
     (operating  company),  and offer  itself as a merger  vehicle for a company
     that may desire to go public  through a merger  rather than through its own
     public stock offering (see note 8).

     Cash Flows

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

     Estimates

     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions   that  affect  certain   reported   amounts  and  disclosures.
     Accordingly, actual results may differ from those estimates.

     Fair Value of Financial Instruments

     The carrying amount of the Company's financial instruments approximate fair
     value.



                             See independent auditors' report.


                                       23

<PAGE>



                          PACIFIC ALLIANCE CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 AND 2000


1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     Statement of Financial Accounting Standards No. 128

     The Company adopted Statement of Financial  Standards  ("SFAS") No. 128 for
     the  calculation  of earnings  per share.  This SFAS was issued in February
     1997, and supersedes APB Opinion No. 15 previously  applied by the Company.
     SFAS No. 128 dictates the  calculation of basic  earnings  (loss) per share
     and diluted earnings (loss) per share. The Company's diluted loss per share
     is the same as the basic  loss per share for the year  ended  December  31,
     2001 and 2000.

2.   TAX LIABILITIES

     The  Company  owes  back  taxes  to the  IRS,  California  State  Board  of
     Equalization and other tax authorities. The IRS portion of tax liabilities,
     $92,398, bears interest at 9%, and was payable in quarterly installments of
     $11,602,  final payment due in January 2002. Several payments have not been
     made and the Company is  renegotiating  the  payment  terms.  In 2000,  the
     Company  entered  into a settlement  agreement  with  California  EDD which
     reduced their claim by $69,075, to $7,600, which was paid in 2001 (see note
     7). Other tax claim repayment schedules have not yet been set.

     Interest  paid during the year ended  December 31, 2001 and 2000 on the IRS
     liability totaled $0 and $14,641, respectively.


3.   INCOME TAXES

     The Company  has loss  carryforwards  available  to offset  future  taxable
     income.  The total loss carryforwards at December 31, 2001 are estimated at
     approximately $830,000 and expire between 2013 and 2021. Loss carryforwards
     are  limited  in  accordance  with the  rules of  change  in  ownership.  A
     valuation  allowance is recorded for the full amount of deferred tax assets
     of approximately $285,000, which relates to these loss carryforwards, since
     future profits are  indeterminable.  The valuation  allowance  increased by
     $25,000 during the year ended December 31, 2001.


4.   NOTES PAYABLE

     During the year ended December 31, 2001, the Company collected $10,000 from
     PIL S.A. (see note 8) under a note payable bearing interest at 10%, with no
     maturity date.  During the year 2001, the Company also repaid $30,000 under
     a note payable to a minority shareholder.

     Notes payable to minority  shareholders  amounted to $50,000 and $80,000 at
     December 31, 2001 and 2000,  respectively.  $50,000 of these notes  payable
     was  contracted  in 2000.  These notes bear  interest at 10% and are due on
     demand.

     Stock  options were issued with  respect to some of these notes.  The stock
     options matured in 2001, and none were exercised.





                        See independent auditors' report.

                                       24

<PAGE>



                          PACIFIC ALLIANCE CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 AND 2000



5.   COMMON STOCK AND WARRANTS

     On May 28,  1997,  a  reorganization  plan was  approved by the  Bankruptcy
     Court.  As a result,  existing  shares of the Company  were  reverse  split
     1-for-6  and  pre-bankruptcy  creditors  were  issued  1,458,005  shares of
     Company's  common  stock.  On November 13, 1997,  an  additional  5,000,000
     shares of common stock were issued (after  reverse  split) to an officer of
     the Company in return for proceeds of $25,000 ($.005 per share).

     In accordance with the reorganization  plan, the  pre-bankruptcy  creditors
     were also issued  1,458,005  class "A"  warrants  and  1,458,005  class "B"
     warrants.  The class "A" warrants allowed the purchase of a share of common
     stock at an exercise price of $2.50 per share.  The "A" warrants expired in
     June  2000 and none  were  exercised.  The  class  "B"  warrants  allow the
     purchase  of a share of  common  stock at an  exercise  price of $5.00  per
     share, and the warrants must be exercised before June 8, 2002.

     In May and June 1998,  the  Company  issued  16,000 and  200,000  shares of
     common  stock  respectively,   for  professional   services  received  from
     non-related individuals. These shares were valued at $0.005 per share.

     In June 1998,  the IRS applied a personal tax refund from a former  officer
     of the Company against the Company's tax liability, reducing it by $80,078.
     In  accordance  with an  agreement  between the  management  and the former
     officer, 80,078 shares of common stock were issued to the former officer in
     exchange for the loss of his personal tax refund.

     In February  2000,  the  Company  issued  300,000  shares to an officer for
     repayment  of $15,000 in  advances  the  officer  loaned to the Company and
     accrued interest.

     In May 2000,  the Company issued 150,000 shares for repayment of consulting
     services  rendered to the Company from a former officer.  These shares were
     valued at $0.10 per share.

     Pursuant to the  provisions of the modified  joint plan of  reorganization,
     Pacific Alliance Corporation  compensates its management on an hourly basis
     at $75 per  hour for the  time  actually  devoted  to the  business  of the
     Company.  Payment for services is made through issuance of shares of common
     stock  until  such  time  as the  Company's  net  worth  reaches  $350,000.
     According to the modified  joint plan of  reorganization,  the stock issued
     for  services  shall be valued at $0.10 per  share.  During  the year ended
     December 31, 2000, the Company issued  1,666,801 shares of common stock for
     compensation  expense that had been  accrued up to December  31,  2000.  In
     2001, the Company accrued $6,000 of management compensation.  Corresponding
     shares of common stock were not yet issued at December 31, 2001.

     In October  2001,  the Company  entered into an  agreement  under which PIL
     S.A., would make a capital infusion and bring in new majority shareholders.
     At  December  31,  2001,  $149,898  had been  received  from  PIL  S.A.  as
     subscription of shares of common stock. The related 750,000 shares were not
     yet issued at December 31, 2001,  but are  included in the  computation  of
     weighted  average  number of shares  for the  purpose of the basic loss per
     share for the year ended December 31, 2001.

                        See independent auditors' report.

                                       25

<PAGE>



                          PACIFIC ALLIANCE CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 AND 2000


6.   RELATED PARTY

     An officer of the Company  advanced  $89,250 to the Company during the year
     ended  December  31, 2001 and $154,030  during the year ended  December 31,
     2000.  The  Company  repaid  $127,971  and  $90,335  during the years ended
     December  31,  2001 and 2000,  respectively.  Shares of common  stock  were
     issued to this officer in 2000 for partial  repayment of advances (see note
     5). These  advances  bear  interest at 10% and have no maturity  date.  The
     balance of advances is $132,755 and $171,476 at December 31, 2001 and 2000,
     respectively.


7.   EXTRAORDINARY ITEM

     On December 19, 2000, the Employment  Development  Department of California
     (EDD)  accepted an "Offer in Compromise" in the amount of $7,600 to satisfy
     in full, all  outstanding  liabilities  due to the EDD by Pacific  Alliance
     Corporation.   The   balance  of  the   liabilities   was  $76,675  and  an
     extraordinary  gain of $69,075 was  recognized.  The settlement  amount was
     paid in January 2001.


8.   PROPOSED ACQUISITION

     In October,  2001,  the Company  entered into an agreement with PIL S.A., a
     Switzerland  Corporation,  under which PIL S.A.  would move to increase the
     Company's capital and bring in new majority shareholders.  Total capital to
     be brought to the Company  amounted to $500,000 by October 31, 2001, and an
     additional $500,000 by December 31, 2001, at a rate of $0.20 per share. The
     various transactions  scheduled for completion during the fourth quarter of
     2001 have not yet been completed.  The Company  received  $149,898  between
     October and December 2001. The agreement has not been  terminated by either
     party, and new terms are still being negotiated.

























                       See independent auditors' report.

                                      26

<PAGE>



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

     During the period from the time the petition for bankruptcy  protection was
filed  and the  date of the  Confirmation  of the  Plan,  no firm  acted  as the
Company's certifying accountant.  On August 31, 1997, the new Board of Directors
of the  Company  appointed  Rose,  Snyder & Jacobs as the  Company's  certifying
accountant.  To the best knowledge of the new Board,  there was no dispute as to
accounting  principles or any other matter  between the Company and its previous
accountants.

                                   PART III

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

     A.  Identification  of  Directors  and  Executive  Officers.   The  current
directors  and  officers  of the  Company,  who will serve until the next annual
meeting of shareholders  or until their  successors are elected or appointed and
qualified, are set forth below:

      Name                        Age               Position

Mark Scharmann                    43                President/Director
Dan Price                         47                Vice President/Director
David Knudson                     42                Secretary/Treasurer/Director

     Mark  Scharmann.  Mr.  Scharmann  has been a private  investor and business
consultant since 1981. Mr. Scharmann became involved in the consulting  business
following his compilation and editing in 1980 of a publication  called Digest of
Stocks  Listed on the  Intermountain  Stock  Exchange.  In 1981 he compiled  and
edited an 800 page publication  called the OTC Penny Stock Digest. Mr. Scharmann
has  rendered  consulting  services  to public and private  companies  regarding
reverse  acquisition  transactions  and other  matters.  Mr.  Scharmann was vice
president of OTC Communications, Inc. from March 1984 to January 1987. From 1982
to 1996, he was the president of Royal Oak Resources Corporation. In 1996, Royal
Oak Resources completed and acquisition and in connection  therewith changed its
name to Hitcom  Corporation.  Mr. Scharmann was the President of Norvex,  Inc.,a
blank check company which completed an acquisition and in connection  therewith,
changed its name to Capital Title.  Mr.  Scharmann is a promoter of Nightingale,
Inc.,  a  publicly-held  corporation  blank check  company.  He has also been an
officer and director of several other blind pool companies.

     Dan O. Price. Mr. Price has worked for five (5) years as  Vice-President of
Corporate  Development for Troika Capital  Investment.  Prior to that, Mr. Price
worked  for  seven (7)  years as the  National  Sales  Director  for a  business
providing  electronic bankcard processing and other merchant services.  For four
(4) years he worked as an  Organizational  Manager  involved in direct  sales of
educational  material,  with 50 sales  people in the  western  states  under his
management.  Mr. Price has been in sales and marketing for twenty (20) years and
sales  management  and business  management  for fifteen  (15) years.  Mr. Price
received his B.A.  from Weber State College in 1983. He has served as an officer
and director on two (2) small publicly traded companies.


                                      27

<PAGE>



     David Knudson.  Mr. Knudson has worked as a business consultant since 1985.
He earned his B.S. Degree in Finance from Weber State College in 1984 and a B.S.
Degree in  Information  Systems and  Technologies  at Weber State  University in
1996.  He has been an  officer  and  director  of  several  small  publicly-held
"blind-pool"  companies.  Mr. Knudson was also employed as an adjunct  professor
and from 1992 to 1996 was employed as a computer  information systems consultant
at  Weber  State  University.   Mr.  Knudson  is  an  officer  and  director  of
Nightingale, Inc., an inactive publicly-held corporation.

     B. Significant Employees. None

     C. Family  Relationships.  There  are no  family  relationships  among the
Company's officers and directors.

     D. Other  Involvement  in  Certain  Legal  Proceedings.  There have been no
events under any  bankruptcy  act, no criminal  proceedings  and no judgments or
injunctions  material to the  evaluation  of the ability  and  integrity  of any
director or executive officer during the last five years.

     E. Compliance With Section 16(a).  The Company is not a reporting  company
under either  Section 12(b) or Section 12(g) of the  Securities  Exchange Act of
1934 and accordingly, is not subject to Section 16(a) of such Act.

ITEM 10.  EXECUTIVE COMPENSATION

     The  following  table sets  forth the  aggregate  compensation  paid by the
Company for services rendered during the last three years to the Company's Chief
Executive  Officer  and to  the  Company's  most  highly  compensated  executive
officers other than the CEO, whose annual salary and bonus exceeded $100,000:

                                      28

<PAGE>



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

                             SUMMARY COMPENSATION TABLE
                                 Annual Compensation
                                 -------------------
                                         Commissions               Restrict
                                             and     Other Annual   Stock    Options/
Name and Principal                        Bonuses    Compensation   Awards    SAR's
 Position                 Year   Salary     ($)          ($)         ($)       (#)
------------------------  ----   ------  -----------  -----------  --------  --------
Mark Scharmann (1)        2001      -0-          -0-          -0-      $899       -0-
President                 2000      -0-          -0-          -0-   $22,450       -0-
                          1999      -0-          -0-          -0-   $19,025       -0-

</TABLE>


     (1)  Mr.  Scharmann was  appointed  President of the Company on the date of
          the Conformation of the Plan, June 8, 1997.

Stock Options

     The following table sets forth certain information concerning stock options
granted during fiscal 2001 to the named executive officers.


              Options Grants in the Year Ended December 31, 2001

                                          Percentage
                       Number of           of Total       Exercise or
                       Securities      Options Granted to Base Price
                       Underlying        Employees in     Per Share   Expiration
Name                 Options Granted (#) Fiscal Year         ($)         Date
----                 ------------------- ---------------- ----------- ----------

Mark Scharmann                       -0-              -0-         N/A        N/A


      The following table sets forth information concerning the number and value
of options held at December 31, 2001 by each of the named executive officers. No
options held by such executive officers were exercised during 2001.

                      Option Values at December 31, 2001

                 Number of Unexercised     Value of Unexercised
                       Options at          In-the-Money Options
                 December 31, 2001 (#)     At(December 31, 2001($)
                 ------------------------- -------------------------
Name             Exercisable Unexercisable Exercisable Unexercisable
----             ----------- ------------- ----------- -------------
Mark Scharmann           -0-           -0-         N/A           N/A




                                      29

<PAGE>



Compensation of Directors

     The Company  does not  currently  compensate  its  directors  for  director
services to the Company.

Employment Agreements

     The Company is currently not a party to any employment agreement.  The Plan
of  Reorganization  provides that the Company's  officers will be compensated at
the rate of $75.00 per hour for  services  rendered to the  Company.  Until such
time as the  Company's  shareholder's  equity  reaches  $350,000,  the Company's
officers shall be issued shares of its common stock for services rendered.  Such
shares shall be valued at $.10 per share. At such time as the Company effects an
acquisition or merger,  the Board of Directors,  as then constituted,  shall set
the compensation of officers, directors and employees.

     For the year ended December 31, 2001 the Company  compensated  its officers
as follows:

      Name                    Compensation            Shares to be Issued
      --------------          ------------            -------------------
      Mark Scharmann                   -0-                          8,991
      Dan Price                        -0-                            -0-
      David Knudson                    -0-                         51,000

     The Company's Plan of Reorganization also provides that upon the completion
of an  acquisition  or merger,  the  Company's  management  group will be issued
shares of the  Company's  common  stock which  amount to 1% of the total  shares
issued in connection with such acquisition or merger.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Security Ownership of Certain Beneficial Owners

     The  following  table  sets  forth  information  regarding  shares  of  the
Company's  common  stock  beneficially  owned as of March 31,  2002 by: (i) each
officer and  director of the Company;  (including  and (ii) each person known by
the Company to beneficially  own 5 percent or more of the outstanding  shares of
the Company's common stock.




                                      30

<PAGE>




Name                                              Amount and
and Address                                       Nature of        Percent of
of Beneficial                                     Beneficial        Class(1)
Owner                                             Ownership         Ownership
--------------------------------------------- ------------------ ---------------
Mark Scharmann(1)                                 6,050,338           55.15%
1661 Lakeview Circle
Ogden, UT 84403
Dan Price(1)                                         33,250            0.30%
1661 Lakeview Circle
Ogden, UT 84403
David Knudson(1)                                  1,037,218            9.46%
1661 Lakeview Circle
Ogden, UT 84403
William M. Hynes, II                                230,078            2.10%
11112 Ventura Boulevard
Studio City, CA   91602
All Officers and Directors                        7,120,806           64.91%
as a Group (3 Persons)
--------------------------------------------- ------------------ ---------------
Total Shares Issued                              10,970,009          100%
--------------------------------------------- ------------------ ---------------

      (1)These individuals are the officers and directors of the Company.

     Unless  otherwise  indicated in the footnotes  below,  the Company has been
advised that each person  above has sole voting power over the shares  indicated
above.  All of the  individuals  listed above are officers and  directors of the
Company.

Security Ownership of Management

     See Item 4(a) above.

Changes in Control

     The Company will have a change of control of the  transaction  described in
note 8 of the financial statements is completed.



                                      31

<PAGE>



ITEM 12. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

     As part of its Plan of Reorganization,  the Company issued 5,000,000 shares
of its common stock to Troika Capital in  consideration  of $25,000 and Troika's
agreement to provide an additional  $75,000 in equity or debt funding to pay the
Company's tax obligations.

     During 1998, Troika Capital loaned $50,263 to the Company. Such loan is due
on demand and bears interest at the rate of 10% per annum.

     During 1999,  Troika  Capital  loaned  $56,250 to the Company.  The Company
repaid $2,000 during 1999.  Such loan is due on demand and bears interest at the
rate of 10% per annum.

     During 2000,  Troika  Capital loaned  $154,030 to the Company.  The Company
repaid $90,335 during 2000. Such loan is due on demand and bears interest at the
rate of 10% per annum.

     During 2001,  Troika  Capital  loaned  $89,250 to the Company.  The Company
repaid  $127,971.  during 2001. Such loan is due on demand and bears interest at
the rate of 10% per annum

     The Company's  officers and  directors  were issued shares of the Company's
common stock for services  rendered during the last three years in the following
amounts:

Year        Officer                 Shares Issued     Value of Services
----        -----------------       --------------    -----------------
2001        Mark A. Scharmann                  -0-    $             899
2001        Dan Price                          -0-    $             -0-
2001        David Knudson                      -0-    $           5,100
2000        Mark A. Scharmann              262,750    $          26,275
2000        Dan Price                          -0-    $             -0-
2000        David Knudson                  413,226    $          41,323
1999        Mark A. Scharmann              198,000    $          19,800
1999        Dan Price                          -0-    $             -0-
1999        David Knudson                  447,000    $          44,700
1998        Mark A. Scharmann              140,250    $          14,025
1998        Dan Price                       32,250    $           3,250
1998        David Knudson                  173,325    $          17,333

Parents of Company

     The only parents of the  Company,  as defined in Rule 12b-2 of the Exchange
Act, are the officers and directors of the Company.  For  information  regarding
the share holdings of the Company's officers and directors, see Item 11.

ITEM 13. EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON
         FORM 8-K

     A.   The   Exhibits   which  are  filed  with  this  Report  or  which  are
          incorporated  herein by reference are set forth in the Exhibits  Index
          which appears on page 36.

                                      32

<PAGE>



     B.   The Company filed no Form 8-K during the fourth  quarter of the fiscal
          year ended December 31, 2001.

Exhibits to Form 10-KSB
                                                                  Sequentially
        Exhibit                                                     Numbered
        Number    Exhibit                                            Page
        ------    -------                                        --------------


         3.1      Amended and Restated Articles of Incorporation       (1)

         3.2      Bylaws                                               (1)

        21.1      Subsidiaries of Registrant                           None


        (1) Previously Filed





                                      33

<PAGE>



                                  SIGNATURES

     In accordance  with Section 13 or 15(d) of the  Securities  Exchange Act of
1934,  the  Registrant  caused  this  report to be  signed on its  behalf by the
undersigned, thereunto duly authorized.

                                       Pacific Alliance Corporation


Date: April 12, 2002                   By: /s/ Mark A. Scharmann
                                           Mark A. Scharmann
                                           President/Principal Executive Officer


Date: April 12, 2002                   By: /s/ David Knudson
                                            David Knudson
                                            Secretary/Treasurer
                                            Principal Financial Officer

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

Signature                           Capacity                Date

/s/ Mark A. Scharmann               President/Director      April 12, 2002
---------------------
Mark A. Scharmann

                                    Vice President/Director ___________, 2002
---------------------
Dan Price

/s/ David Knudson                   Secretary/Treasurer     April 12, 2002
-----------------                   Director
David Knudson


                                       34