SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


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                                  SCHEDULE 13G

                        Information Statement pursuant to
                              Rule 13d-1 and 13d-2

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                                 Data Race, Inc.
                                (Name of Issuer)


                           COMMON STOCK, NO PAR VALUE
                         (Title of Class of Securities)


                                    237842109
                                 (CUSIP Number)

                                 August 21, 2001
             (Date of event which requires filing of this Statement)

Check the  appropriate box to designate the rule pursuant to which this Schedule
is filed:

                                [ ] Rule 13d-1(b)

                                [x] Rule 13d-1(c)

                                [ ] Rule 13d-1(d)


                         (Continued on following pages)

                               (Page 1 of 4 Pages)








                                                                                         Page 2 of 4 Pages
------- -----------------------------------------------------------------------------------------------------
                                                                                                        
1.      NAME OF REPORTING PERSON
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        Stonestreet, L.P.
        None
------- -----------------------------------------------------------------------------------------------------
2.      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP                                    (a) [  ]
                                                                                            (b) [  ]
------- -----------------------------------------------------------------------------------------------------
3.      SEC USE ONLY
------- -----------------------------------------------------------------------------------------------------
4.      CITIZENSHIP OR PLACE OF ORGANIZATION:     Canada
------------------------- ---- ------------------------------------------------------------------------------
                          5.   SOLE VOTING POWER
                               2,995,616 shares of Common Stock of the Issuer.
   NUMBER OF              ---- ------------------------------------------------------------------------------
    SHARES                6.   SHARED VOTING POWER
  BENEFICIALLY                 None.
   OWNED BY               ---- ------------------------------------------------------------------------------
     EACH                 7.   SOLE DISPOSITIVE POWER
   REPORTING                   2,995,616 shares of Common Stock of the Issuer.
 PERSON WITH              ---- ------------------------------------------------------------------------------
                          8.   SHARED DISPOSITIVE POWER
                               None.
------------------------- ---- ------------------------------------------------------------------------------
9.       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         2,995,616 shares of Common Stock of the Issuer.
-------- ----------------------------------------------------------------------------------------------------
10.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
         CERTAIN SHARES                                                                           [  ]
-------- ----------------------------------------------------------------------------------------------------
11.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
                                                   9.9 %
-------- ----------------------------------------------------------------------------------------------------
12.                        TYPE OF REPORTING PERSON
                                                   CO
-------- ----------------------------------------------------------------------------------------------------


Item 1(a).    Name of Issuer.
              Data Race, Inc.

Item 1(b).    Address of Issuer's Principal Executive Offices.
              6509 Windcrest Blvd., Suite 120
              Plano, TX 75024

Item 2(a).    Names of Person Filing.
              Stonestreet L.P.

Item 2(b).    Address of Principal Business Office, or if none, Residence.
              The address of the principal business office of Stonestreet
              L.P. is:
              260 Town Centre Blvd. Suite 201
              Markham, ON L3R 8H8
              Canada

Item 2(c).    Citizenship.
              Stonestreet L.P. is a Canadian Limited Partnership.

Item 2(d).    Title of Class of Securities.
              Common Stock, no par value per share.



                                                               Page 3 of 4 Pages

Item 2(e).    CUSIP Number.
              237842109
Item 3.       If this statement is filed pursuant to Rules 13d-1(b) or 13d-2(b),
              check whether the person filing is a:
              Not applicable. This statement is filed pursuant to Rule 13d-1(c)

Item 4.       Ownership.

         (a)  Amount  beneficially  owned by reporting  person,  are  2,995,616
              shares of Common Stock of the Issuer.

         (b)  Percent of Class: The reporting person holds 9.9% of the Issuer's
              issued and outstanding  Common Stock (based on 29,986,153  shares
              of Common Stock of the Issuer issued and  outstanding  as of June
              12, 2001 as stated in the  Convertible  Debentures  and  Warrants
              Purchase Agreement between the Company and the undersigned.)

         (c)  Number of shares as to which such person has:

              (i)  Sole  power to direct the vote:  2,995,616  shares of common
                   stock of the Issuer.

              (ii) Shared power to vote or to direct the vote: None.

              (iii)Sole  power to  dispose  or direct  the  disposition  of the
                   Common  Stock:  2,995,616  shares  of  Common  Stock  of the
                   Issuer.

              (iv) Shared power to dispose or direct the disposition of: None.

Item 5.        Ownership of Five Percent or Less of a Class.
               Not applicable.

Item 6.        Ownership of More than Five Percent on Behalf of Another Person.
               Not applicable.

Item 7.        Identification and Classification of the Subsidiary Which
               Acquired the Security  Being  Reported on By the Parent  Holding
               Company.  Not applicable.

Item 8.        Identification and Classification of Members of the Group.
               Not applicable.

Item 9.        Notice of Dissolution of Group.
               Not applicable.

Item 10.       Certification.
               By signing below, I certify that, to the best of my
               knowledge and belief, the securities referred to above were
               not acquired and are not held for the purpose of or with the
               effect of changing or influencing the control of the issuer
               of the securities and were not acquired and are not held in
               connection with or as a participant in any transaction which
               could have that purpose or effect.




                                                               Page 4 of 4 Pages


                                    SIGNATURE

     After  reasonable  inquiry and to the best of my  knowledge  and belief,  I
certify that the information  set forth in this statement is true,  complete and
correct.

                                                  August 21, 2001
                                          -------------------------------
                                                      (Date)

                                       By: /s/ Stonestreet L.P.
                                          -------------------------------
                                           Michael Finkelstein, President