SECURITIES AND EXCHANGE COMMISSION



Washington, D.C. 20549



Form 10-KSB



Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: December 31, 2005

FIRST NATIONAL POWER
CORPORATION

Formerly Capstone
International Corporation

(Exact name of
registrant as specified in its charter)



|Delaware                                                           | 333-62588                | 76-0819545                       
|------------------------------------------------------------------ | ------------------------ | ---------------------------------
|(State of other
    jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.)



#219 - 227 Bellevue
Way NE

Bellevue, WA 98004

(Address of principal
executive offices)



Registrant's telephone number:   (416) 918 6987

(Mark One)

[X] Annual report pursuant to Section 13 or 15(d) of the securities
    exchange act of 1934 for the fiscal year ended December 31, 2004.

> [ ] Transition report under Section 13 or 15(d) of the securities
>     exchange act of 1934

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



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

Common stock

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. [X] Yes [ ]
No

Check if there is no disclosure of delinquent filers in response to Item 405
or Regulation S-B contained in this form, and no disclosure will be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB [X]

Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act) Yes x  No

State issuer's revenues for its most recent fiscal year: As of December 31,
2005, the Company has not generated any revenues.

State the aggregate market value of the voting and non-voting common equity
held by non-affiliates computed by reference to the average bid and asked price
of such common equity, as of February 6, 2006: $12,204,281

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date. As of December 31, 2005 there
were 76,276,760 common shares issued and outstanding.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this annual report on Form 10-KSB contain or may
contain forward-looking statements that are subject to known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. These
forward-looking statements were based on various factors and were derived
utilizing numerous assumptions and other factors that could cause our actual
results to differ materially from those in the forward-looking statements. These
factors include, but are not limited to, our ability to consummate a merger or
business combination, economic, political and market conditions and
fluctuations, government and industry regulation, interest rate risk, U.S. and
global competition, and other factors. Most of these factors are difficult to
predict accurately and are generally beyond our control. You should consider the
areas of risk described in connection with any forward-looking statements that
may be made herein. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this report.
Readers should carefully review this annual report in its entirety, including
but not limited to our financial statements and the notes thereto. Except for
our ongoing obligations to disclose material information under the Federal
securities laws, we undertake no obligation to release publicly any revisions to
any forward-looking statements, to report events or to report the occurrence of
unanticipated events. For any forward-looking statements contained in any
document, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.

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PART I

Item 1. Description of Business

Business Development

First National Power Corporation (First National) was incorporated as
Capstone International Corporation on November 16, 2000, in the state of
Delaware. The Company has never declared bankruptcy, it has never been in
receivership, and it has never been involved in any legal action or proceedings.
During the period from its incorporation up until the end of the period covered
by this report, the Company has not made any significant purchase or sale of
assets.



Business of Issuer

First National is creating a business based on what the Company calls the
FNPR Green Energy Power Generation business model. It is designed to develop and
implement cutting edge technology not formerly utilized in the electrical power
generation industry and current technology configurations in new and exciting
commercial applications.

Principal Products and Services

First National's goal is to build a Power Company with capabilities to
provide proprietary-generating stations located on individual buildings, and
Portable units for rural and emergency services with applications for Third
World development.



The Market

Compact wind turbine technology offers a near term option of generating
electricity from clean sustainable renewable resources. First National believes
many homeowners, farmers, apartment and small business owners will be interested
in having the choice of how their electricity is produced and what environmental
impacts their consumption causes. The Company also believes many consumers want
the type of freedom of choice First National is seeking to supply with the
development of its products.

Looking at the bigger picture, there are currently over 2 billion people
around the world who have no access to electrical power. First National believes
the ability to provide electrical power to this emerging market has substantial
opportunity.

Wind power currently meets 2% of total European electricity demand. European
Wind Power Association (EWEA) chief executive Corin Millais stated, "This is
just the tip of the iceberg; the global wind power market could be worth e25
billion a year by 2010. That traunch will increase rapidly as the technology
continues to develop, costs continue to fall, and the need to secure and
diversify electrical energy becomes increasingly evident to decision makers,"
said EWEA (European Wind Power Association) chief executive Corin Millais.

Competition and Competitive Strategy

The environmentally friendly electrical power generation industry is in its
infancy and currently there is very little competition throughout the world and
virtually none in many regions.

The competitive strategy of the Company is to develop efficient products and
services and to bring them to market at a cost the will allow its customers to
save money while they become energy self-sufficient.



New and or Innovative Products and Services

The very nature of the environmentally friendly electrical power generation
industry is such that innovation is always being sought.

Sources and Availability of Products and Supplies

First National is not reliant on other sources for products or supplies. The
Company is endeavoring to develop its own products and supplies through ongoing
relationships with inventors, institutions and suppliers such who work closely
with First National.

Dependence on One or a Few Major Customers

Virtually every North American, and European building owner is seeking the
types of products and services First National is developing. Such being the
case, First National is in no way dependant on either one or a few major
consumers.

Patent, Trademark, License & Franchise Restrictions and Contractual
Obligations & Concessions

There are no inherent factors or circumstances associated with this industry,
or any of the products or services that First National plans to provide that
would give cause for any greater exposure of patent, trademark or license
infringements or violations than with any other commonly available technology.
The Company has also not entered into any agreements or other contracts that
have given, or could give rise to obligations or concessions.

Governmental Controls and Approvals

The environmentally friendly energy generation sector does not come under any
special Government controls or approval processes. However, this being a
relatively new and growing sector, it is possible that Government could impose
new controls or approval processes in the future.



Existing or Probable Government Regulations

Many municipalities and some states and provinces have regulations concerning
the erection of windmills and other tall and cumbersome mechanical devices.
There are also the usual licensing requirements, however there are no government
regulations that we are aware of, either existing or being contemplated, that
would adversely affect the Company's ability to operate. Labor Standards Laws,
Workplace Occupational Health and Safety Regulations, and local government
business licensing requirements are the only other government regulations that
will affect the Company.

Research and Development Activities and Costs

First National has entered into an agreement to develop certain products, but
has not undertaken any research and development to date, but it does have any
plans to undertake research or development in the very near future. The Company
is in the final stages of forming a contractual relationship with two large
eminent institutions in North America, who will work with First National to
develop, patent and market innovative energy generating tools.

Compliance With Environmental Laws

The only environmental laws that pertain to the Company's operations concern
restrictions on windmills in some locations and also restrictions on the type of
structure that can be mounted on top of commercial buildings. Compliance with
these rules will not be a major issue for the Company.

Facilities

First National does not own or rent facilities of any kind. At present the
Company is operating from its official address that is located within the
offices of the Company's President. The Company intends to continue to operate
from this location for as long as possible and until it has sufficient revenues
from sales to support a facility. First National anticipates no need for
additional space during the next year of operations, however, if growth occurs
faster then expected the Company would make every effort to find facilities that
offer long-term adaptability to growth.

Employees

First National has no intention to hire employees in the foreseeable future.
The Company is a "Virtual Management" model corporation. First National has no
employees and management works under consulting contracts optimizing cash flow,
as well as other efficiencies such as facilities. The current Board of Directors
is made up of one individual who also act as the officer of the Company. The
Company has been searching for a new Chief Executive Officer since the previous
CEO, Mr. Darryl Mill, resigned in 2004. The Company hopes to appoint a new CEO
in the near future. Professionals in their respective fields provide all other
services on an as-needed basis. The Company also has an advisory Board chaired
by Mr. Alvin Snapper.

Reports to Security Holders

First National will voluntarily make available to securities holders an
annual report, including audited financials on Form 10-K or Form 10-KSB.

The public may read and copy any materials filed with the SEC at the SEC's
Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. The
public may obtain information about the operation of the Public Reference Room
by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that
contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC at http://www.sec.gov.

Item 2. Description of Property.

First National does not own any property, real or otherwise. For the next
year, the Company intends to operate from the President's office at his
residence, at no cost to the Company.

The Company does not have any investments or interests in any real estate.
First National does not invest in real estate mortgages, nor does it invest in
Securities of, or interests in, persons primarily engaged in real estate
activities.

Item 3. Legal Proceedings

First National is not a party to any pending legal proceedings.

Item 4. Submission of Matters to a Vote of Security Holders.

No matter was submitted during the fourth quarter of the fiscal year ended
December 31, 2004, to a vote of security holders, through the solicitation of
proxies or otherwise.



PART II



Item 5. Market for Common Equity and Related Stockholder Matters.

Market Information

The Company's stock trades on the Over-the Counter Bulletin Board (OTCBB)
under the symbol FNPR. During 2005, the high and low trading price for each
quarter was as follows:

Year ended December 31, 2005 High Low

1st quarter, ended March 31, 2005 $0.42 $0.07

2nd quarter, ended June 30, 2005 $0.41 $0.25

3rd quarter, ended September 30, 2005 $0.335 $0.075

4th quarter, ended December 31, 2005 $0.10 $0.049

Year ended December 31, 2004 High Low

1st quarter, ended March 31, 2004 $0.80 $0.26

2nd quarter, ended June 30, 2004 $0.41 $0.21

3rd quarter, ended September 30, 2004 $0.35 $0.18

4th quarter, ended December 31, 2004 $0.27 $0.07

In 2005, the Board of Directors for the Company created and approved an
Employee Stock Incentive Plan (2005 ESIP). The 2004 ESIP was for 3 million
shares and is disbursed by the Board as compensation for services by officers,
contractors and consultants.

In 2005, the Board granted Peter Wanner a total of 400,000 shares for his
role as CFO. In the financial statements, those shares are valued at $80,000.
During the year, the company also issued 150,000 for legal services and 280,000
to various consultants who have been working on developing various projects for
First National.

Holders.

As of December 31, 2005, the Company had thirty-six (39) shareholders of
record of its common stock.

Dividends.

As of December 31, 2005, registrant has not paid any dividends to its
shareholders. There are no restrictions which would limit the ability of First
National to pay dividends on common equity or that are likely to do so in the
future. First National does not intend to pay dividends to its shareholders in
the foreseeable future.

Recent Sales of Unregistered Securities

The Company has not sold securities during the fiscal year ended December 31,
2005, without registering the securities under the Securities Act of 1933.

Item 6. Management's Discussion and Analysis or Plan of Operation.

First National Power Corporation is a developmental stage Green Power company
with 3 principal projects: a Propless Wind Power Generator (PWPG), which is
under development with world renown inventor Mr. Alvin Snaper and his team of
scientists at Impactive Technology; the Green Oasis, our portable electrical
generation and storage, water purification and satellite communication unit;
and, our biomass waste energy project, which is still on the drawing board and
conceptual stage.

The Company believes that compact wind turbine technology offers a near term
option of generating electricity from clean sustainable renewable resources.
First National believes many homeowners, farmers, apartment and small business
owners will be interested in having the choice of how their electricity is
produced and what environmental impacts their consumption causes. The Company
also believes many consumers want the type of freedom of choice First National
is seeking to supply with the development of its products.

Looking at the bigger picture, there are currently over 2 billion people
around the world who have no access to electrical power. First National believes
the ability to provide electrical power to this emerging market has substantial
opportunity. We believe that that share will increase rapidly as the technology
continues to develop, costs continue to fall, and the need to secure and
diversify energy supply becomes increasingly evident to decision makers.

Wind power currently meets 2% of total European electricity demand. European
Wind Power Association (EWEA) chief executive Corin Millais stated, "This is
just the tip of the iceberg; the global wind power market could be worth e25
billion a year by 2010. That tranch will increase rapidly as the technology
continues to develop, costs continue to fall, and the need to secure and
diversify electrical energy becomes increasingly evident to decision makers,"
said EWEA (European Wind Power Association) chief executive Corin Millais.

Green Energy Power Generation, Green Oasis - and "Project Biomass"

The Green Energy Power Generation (GEPG) business unit is designed to
implement cutting edge technology not formerly utilized in the electrical power
generation industry. The goal is to build a Power company with proprietary
generating stations located on customers' buildings. The continuing failure of
international power grids underlines the need for the technology that is
currently being developed by First National. The Company's plan calls for
individualized power generation units to support small industry and high-rise
commercial and residential complexes. The Company expects that buildings powered
by First National power systems will be the only buildings with electrical power
during local and regional power failures.

The Green Oasis - is an Oasis of services providing direct and stored Green
energy, water purification capabilities, internet and telephony by a mobile
units designed to go anywhere on a temporary or permanent basis, to become the
Local Utility, to support or become the principal source of survival in times of
disaster. Each unit will be pre-designed on an individualized basis in a modular
format to custom fit the environment in which it will be deployed to allow for
maximum utilization. They will also carry pre-charged portable satellite battery
modules that will allow individuals to transport power to specific areas on an
"as needed" basis to support temporary usage in emergencies.

The "Green Oasis" is the company's development stage project. The initial
base model has been decided upon, and consultants are working to bring together
the components to determine the power draw, hence the required power generation
requirements. Once that base model is actually designed and prototyped, the
company has identified the first customer for the unit.

Organizational Structure

First National is a "Virtual Management" model corporation. The Company has
no employees and Management works under consulting contracts optimizing cash
flow and infrastructure efficiencies. The current Board is made up of one
individual who also acts as the Officer of the company. Professionals in their
individual fields supply all other services on an "as needed" basis.

Growth, Revenue & Financial Plans

The Company is currently exploring its options for additional financing which
is needed for operating expenses, marketing, and the acquisition of additional
synergistic technology. The Company's first priority is to complete our
proprietary product development, establish brand awareness, and to launch
effective marketing efforts for its product. The Company also intends to
actively pursue partnerships with other Green Energy developers, leveraging its
technology, intellectual properties, and to make its position known as quickly
as possible amongst the other players on the world stage. The Company has
identified other potential acquisitions and will aggressively pursue the
opportunities as part of its strategic growth strategy. First National Power is
growth-focused on a corporate strategy of Build, Buy or Partner with premier
industry individuals and companies with visionary management.

During 2004, the company sold share subscriptions to outgoing directors and
officers providing some of the funding for the year. Certain non-auditing
professional fees were covered through the issuance of shares.. The 2005 ESIP
provided shares that paid for the officer and director for 2004 and for a
portion of 2005. An unrelated party lent the Company $20,581, which paid a
number of administrative expenses. That loan is non-interest bearing and has no
specific repayment date.

In the current year, the company is anticipating moving gradually from the
development stage to one of operations. To accomplish that transformation, the
company will be forced to raise funds. If the company does solidify a plan that
will require funding, they will be seeking either partners that will provide the
funding or they will be offering debt financing, depending on the completion of
the Company's business plan. Other expenses administrative in nature will be
paid by related and unrelated parties through loans or other means, possibly the
sale of subscriptions.



The Company had no off balance sheet transactions during 2005, and does not
anticipate any such transactions in 2006.

Item 7. Financial Statements

Schwartz Levitsky Feldman llp

CHARTERED ACCOUNTANTS

TORONTO, MONTREAL, OTTAWA







REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



> To the Board of
>     Directors and Stockholders of
>     First National
>     Power Corporation
>     (A Development
>     Stage Company)



We have audited the accompanying balance sheets of First
    National Power Corporation (incorporated in Delaware) as at December 31,
    2005 and 2004 and the related statements of operations, cash flows and
    stockholders' deficiency for the years ended December 31, 2005 and 2004.
    These financial statements are the responsibility of the Company's
    management. We did not audit the financial statements of the Company from
    the date of inception to December 31, 2003, which statements reflect
    cumulative total assets of $Nil as of December 31, 2003 and cumulative
    expenses of $158,215 for the period form inception to December 31, 2003.
    Those statements were audited by another auditor whose report has been
    furnished to us, and our opinion, insofar as it relates to the cumulative
    financial information from inception to December 31, 2003, is based solely
    on the report of the other auditor.



We conducted our audits in accordance with the standards
    of the Public Company Accounting Oversight Board (United States). 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 and the report of the
    other auditor provides a reasonable basis for our opinion.



In our opinion, based on our audits and the report of the
    other auditor, the financial statements referred to above present fairly, in
    all material respects, the financial position of First National Power
    Corporation as at December 31, 2005 and 2004 and the results of its
    operations and its cash flows for the years ended December 31, 2005 and 2004
    and for the period from inception to December 31, 2005 in accordance with
    generally accepted accounting principles in the United States of America.

The accompanying financial statements have been prepared
    assuming the Company will continue as a going concern. As discussed in note
    2 to the financial statements, the Company is a development stage company
    and has no established source of revenues. These conditions raise
    substantial doubt about its ability to continue as going concern. The
    financial statements do not include any adjustments that might result from
    the outcome of this uncertainty.



> "SCHWARTZ LEVITSKY FELDMAN LLP"

Toronto, Ontario, Canada

February 3, 2006                                                                                                                          
    Chartered Accountants

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Item 8. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosures.

Effective June 15, 2004, David E. Coffey resigned as the Company's
independent auditors. There were no disagreements with Mr. Coffey on any matter
of accounting principles or practices, financial statement disclosure or
auditing or auditing scope or procedure.

On August 3, 2004, the Company retained the services of Schwartz-Levitsky
Feldman, LLP, Certified Public Accountants, to act as the new auditor for the
Company.

Item 8A. Disclosure Controls and Procedures

As of December 31, 2005, the Company carried out an evaluation of the
effectiveness of the Company's disclosure controls and procedures (as defined by
Rule 13a-14(c) under the Securities Exchange Act of 1934) under the supervision
and with the participation of the Company's Chief Executive Officer and Chief
Financial Officer. Based on and as of the date of such evaluation, the
aforementioned officers have concluded that the Company's disclosure controls
and procedures were effective.

The Company also maintains a system of internal accounting controls that is
designed to provide assurance that assets are safeguarded and that transactions
are executed in accordance with management's authorization and properly
recorded. This system is continually reviewed and is augmented by written
policies and procedures, the careful selection and training of qualified
personnel and an internal audit program to monitor its effectiveness. During the
fiscal year ended December 31, 2005, there were no significant changes to this
system of internal controls or in other factors that could significantly affect
those controls.

Item 8B. Other Information

No events required to be reported on Form 8K occurred during the fourth
quarter of the fiscal year ended December 31, 2005.



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PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act

Peter Wanner, Director, Treasurer, Chief Financial Officer. Mr. Wanner,
age 52, has 13 years experience as a business consultant to start-up companies,
as well as companies in refinancing and turnaround. He also has 14 years of
experience in financing accounting, including 2 years in public accounting as
well as international experience working in Mexico, United Kingdom and United
States. Mr. Wanner has served as a director since May 4, 2004. The term of
office for any director is for a period of one year, or until the next annual
meeting (or special meeting in lieu of an annual) of the shareholders.

Significant Employees. Other than it's executive officer and director,
the Company has no other employees.

No officer or director of the Company has been, within the past five years,
involved in any legal proceedings, including bankruptcy, criminal proceedings or
civil, nor are they subject to any order, judgment or decree, not subsequently
reversed, suspended or vacated, of an court of competent jurisdiction,
permanently or temporarily enjoining, barring, suspending or otherwise limiting
his involvement in any type of business, securities or banking activities.

The Board of Directors does not have an audit committee financial expert
serving on its audit committee.

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

As of the date of filing this report, the Company is not aware of any person
who, at any time during the year ended December 31, 2005, was a director,
officer, beneficial owner of more than ten percent of any class of equity
securities of the registrant that failed to file on a timely basis reports
required by Section 16(a) during the most recent fiscal year or prior years.

Code of Ethics

As of the date of filing this report, the Company has not adopted a Code of
Ethics.

.

Item 10. Executive Compensation.

First National's Executive officers do not currently receive and are not
accruing any compensation.

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

The following is a table detailing the current shareholders of our stock as
of December 31, 2005, who own 5% or more of the common stock, and shares owned
by our Directors and Officers:

|Title ofClass | Name and Address of
    Beneficial Owner  | Amount andNature
    of
    Beneficial
    Ownership | Percentof Class
|------------- | ----------------------------------------- | ---------------------------------------------------- | ---------------
|Common        | Peter Wanner***                           | 165,000                                              | 0.002%         
|Common        | Directors and
    officers as a group (3) | 165,000                                              | 0.002%         

Item 12. Certain Relationships and Related Transactions.

No persons who may, in the future, be considered a promoter will receive or
expect to receive assets, services or other consideration from the Company. No
assets will be or are expected to be acquired from any promoter on behalf of our
company. We have not entered into any agreements that require disclosure to our
shareholders.

Item 13. Exhibits

Exhibits

|Exhibit No. | Document                      | Location        
|----------- | ----------------------------- | ----------------
|3.1         | Articles of
    Incorporation | Previously Filed
|3.2         | Bylaws                        | Previously filed
|31          | Sect. 302
    Certification   | Included        
|32          | Sect. 906
    Certification   | Included        



Item 14. Principal Accountant Fees and Services

1. Audit Fees: Aggregate fees billed for each of the last two (2) fiscal
years for professional services rendered by the principal accountant for the
audit of the annual financial statements and review of financial statements
included on Form 10-QSB:



2004: $10,934

> 2005: $9,391

2. Audit-Related Fees: Aggregate fees billed in each of the last two (2)
fiscal years for assurance and related services by the principal accountant that
are reasonably related to the performance of the audit or review of the
financial statements and are not reported previously.

2004: $0

> 2005: $0

3. Tax Fees: Aggregate fees billed in each of the last two (2) fiscal years
for professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning.



2004: $0

> 2005: $0

4. All Other Fees: Aggregate fees billed in each of the last two (2) fiscal
years for products and services provided by the principal accountant, other than
the services previously reported.

2004: $0

> 2005: $0

5. Audit Committee Pre-Approval Procedures. The Board of Directors has not,
to date, appointed an Audit Committee.

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Signatures

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

FIRST NATIONAL POWER CORPORATION



/s/ Peter Wanner

Peter Wanner, CFO

Dated: Feb 21, 2006



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



/s/ Peter Wanner

Peter Wanner, CFO, Treasurer,
Director

Dated: Feb 21, 2006

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