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**U.S.      SECURITIES AND EXCHANGE COMMISSION **

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**FORM      10-QSB**

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**x QUARTERLY      REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE      ACT OF 1934**

**o TRANSITION      REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE      ACT OF 1934**

*Commission      file number: 0-11882 *

**B2DIGITAL,      INCORPORATED**

| Delaware                                       | 84-0916299                         |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |
|                                           |                               |

**x**
**o**

**o**
**x**

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**ITEM      1 - FINANCIAL STATEMENTS **

|                                                                                                                                                                 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Balance                Sheets (Unaudited) as of December 31,                2005                                                                                     | 3      |
|                                                                                                                                                                 |   |
| Statements                of Operations (Unaudited) for the Three Months and                Nine Months Ended December 31, 2005 and December 31,                2004 | 4      |
|                                                                                                                                                                 |   |
| Statements                of Stockholders' Equity (Unaudited) for the Nine                Months Ended December 31, 2005                                             | 5      |
|                                                                                                                                                                 |   |
| Statement                of Cash Flows (Unaudited) for the Nine Months Ended                December 31, 2005 and 2004                                               | 6      |
|                                                                                                                                                                 |   |
| Notes                to Financial Statements                (Unaudited)                                                                                              | 7      |

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**ITEM      1 - FINANCIAL STATEMENTS **

BALANCE      SHEETS (Unaudited)

|                                                                                                                                                                |   | December                31, |        | March                31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-------------|--------------------------|--------|
|                                                                                                                                                                |   | 2005                        |        | 2005                     |   |
| ASSETS                                                                                                                                                              |   |                        |        |                     |   |
| CURRENT                ASSETS                                                                                                                                       |   |                        |        |                     |   |
| Cash                                                                                                                                                                |   | $                           | 1,556       |                     | $      | 5,711 |   |
| Accounts                receivable                                                                                                                                  |   |                        | 128,665     |                     |   | 76,744 |   |
| Inventories                                                                                                                                                         |   |                        | 286,251     |                     |   | 287,301 |   |
| Prepaid                expenses                                                                                                                                     |   |                        | —     |                     |   | 12,790 |   |
| Total                current assets                                                                                                                                 |   |                        | 416,472     |                     |   | 382,546 |   |
|                                                                                                                                                                |   |                        |        |                     |   |   |   |
| PROPERTY                AND EQUIPMENT                                                                                                                               |   |                        |        |                     |   |   |   |
| Net                Equipment, net                                                                                                                                   |   |                        | 100,065     |                     |   | 120,258 |   |
| TOTAL                ASSETS                                                                                                                                         |   | $                           | 516,537     |                     | $      | 502,804 |   |
|                                                                                                                                                                |   |                        |        |                     |   |   |   |
| LIABILITIES                AND STOCKOLDERS' EQUITY                                                                                                                  |   |                        |        |                     |   |   |   |
| CURRENT                LIABILITIES                                                                                                                                  |   |                        |        |                     |   |   |   |
| Accounts                payable and accruals:                                                                                                                       |   | $                           | 823,580     |                     | $      | 528,049 |   |
| Related                party loans payable                                                                                                                          |   |                        | 37,500      |                     |   | 242,000 |   |
| Note                payable                                                                                                                                         |   |                        | 120,000     |                     |   | 120,000 |   |
| Bond                payable                                                                                                                                         |   |                        | 75,000      |                     |   | 75,000 |   |
| Total                Current Liabilities                                                                                                                            |   |                        | 1,056,080   |                     |   | 965,049 |   |
| Convertible                notes payable                                                                                                                            |   |                        | 1,038,678   |                     |   | 1,438,678 |   |
| Note                payable related party                                                                                                                           |   |                        | 800,000     |                     |   | 800,000 |   |
| TOTAL                LIABILITIES                                                                                                                                    |   |                        | 2,894,758   |                     |   | 2,238,678 |   |
| STOCKHOLDERS'                DEFICIENCY                                                                                                                             |   |                        |        |                     |   |   |   |
| Preferred                stock $.001 par value: 50,000,000 shares authorized, 2,000,000 and                1,200,000 shares issued;                                 |   |                        | 2,000       |                     |   | 1,200 |   |
| Additional                paid in capital preferred stock                                                                                                           |   |                        | 706,000     |                     |   | 514,800 |   |
| Common                stock $.001 par value: 900,000,000 shares authorized; 893,970,939                and                336,870,939 shares issued and outstanding |   |                        | 893,971     |                     |   | 336,870 |   |
| Additional                paid in capital                                                                                                                           |   |                        | 6,720,849   |                     |   | 6,332,140 |   |
| Accumulated                deficit                                                                                                                                  |   |                        | (10,661,041 | )                        |   | (9,835,933 | ) |
| Stock                subscription receivable                                                                                                                        |   |                        | (40,000     | )                        |   | (50,000 | ) |
| Total                stockholders' equity                                                                                                                           |   |                        | (2,378,221  | )                        |   | (2,700,923 | ) |
| TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                           |   | $                           | 516,537     |                     | $      | 502,804 |   |
|                                                                                                                                                                |   |                        |        |                     |   |   |   |
|                                                                                                                                                                |   |                        |        |                     |   |   |   |

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STATEMENTS      OF OPERATIONS (Unaudited)

|                                                      |   | For                the Three Months Ended |        |
|-----------------------------------------------------------|--------|-------------------------------------------|-------------|
|                                                      |   | December                31,               |        | December                31, |   |
|                                                      |   | 2005                                      |        | 2004 |   |
|                                                      |   |                                      |        |   |   |
| REVENUES                                                  |   | $                                         | 148,398     |   | $ | 167,233 |   |
|                                                      |   |                                      |        |   |   |   |   |
| EXPENSES                                                  |   |                                      |        |   |   |   |   |
| Cost                of sales                              |   |                                      | 43,390      |   |   | 87,669 |   |
| Selling,                general and administration        |   |                                      | 389,774     |   |   | 1,679,284 |   |
| Interest                                                  |   |                                      | 33,750      |   |   | 72,610 |   |
| Total                expenses                             |   |                                      | 466,914     |   |   | 1,839,563 |   |
| NET                INCOME (LOSS)                          |   | $                                         | (318,516    | ) | $ | (1,672,330 | ) |
| Basic                and diluted earnings per share       |   |                                      |        |   |   |   |   |
| Net                income (loss)                          |   | $                                         | (.000       | ) | $ | (.008 | ) |
|                                                      |   |                                      |        |   |   |   |   |
| WEIGHTED-AVERAGE                COMMON SHARES OUTSTANDING |   |                                      | 878,970,939 |   |   | 186,697,000 |   |

|                                                      |   | December                31, |        | December                31, |   |
|-----------------------------------------------------------|--------|-----------------------------|-------------|-----------------------------|--------|
| Nine                Months Ended:                         |   | 2005                        |        | 2004                        |   |
|                                                      |   |                        |        |                        |   |
| REVENUES                                                  |   | $                           | 419,005     |                        | $      | 533,648 |   |
|                                                      |   |                        |        |                        |   |   |   |
| EXPENSES                                                  |   |                        |        |                        |   |   |   |
| Cost                of sales                              |   |                        | 150,487     |                        |   | 248,012 |   |
| Research                and development                   |   |                        | 10,000      |                        |   | — |   |
| Selling,                general and administration        |   |                        | 1,000,876   |                        |   | 3,188,916 |   |
| Interest                                                  |   |                        | 82,750      |                        |   | 133,950 |   |
| Total                expenses                             |   |                        | 1,244,113   |                        |   | 3,570,878 |   |
| NET                INCOME (LOSS)                          |   | $                           | (825,108    | )                           | $      | (3,037,230 | ) |
| Basic                and diluted earnings per share       |   |                        |        |                        |   |   |   |
| Net                income (loss)                          |   | $                           | (.001       | )                           | $      | (.015 | ) |
|                                                      |   |                        |        |                        |   |   |   |
| WEIGHTED-AVERAGE                COMMON SHARES OUTSTANDING |   |                        | 631,093,646 |                        |   | 191,152,000 |   |
|                                                      |   |                        |        |                        |   |   |   |
|                                                      |   |                        |        |                        |   |   |   |

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STATEMENTS      OF STOCKHOLDERS’ DEFICIENCY (Unaudited)

|                                                                                                        |   |                        |                           |                   |   | Additional                     |   |                   |                     |        |   | Additional               |   |    |                     |
|-------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------------------------------|------------------------|--------|--------------------------------|--------|------------------------|--------------------------|-------------|--------|--------------------------|--------|---------|--------------------------|
|                                                                                                        |   | Common                Stock |                           | Paid                in |   | Preferred                Stock |   | Paid                in |                     | Accumulated |   |
|                                                                                                        |   | Shares                      |                           | Amount                 |   | Capital                        |   | Shares                 |                     | Amount      |   | Capital                  |   | Deficit |                     |
| Balance,                March 31, 2005                                                                      |   |                        | 336,870,939                    |                   | $      | 336,870                        |   | $                      | 6,332,140                |        |   | 1,200,000                |   | $       | 1,200                    |   | $ | 514,800 |   | $ | (9,835,933 | ) |
| Issuance                of common stock for services based on value of services                performed    |   |                        | 117,100,000                    |                   |   | 117,101                        |   |                   | 388,709                  |        |   |                     |   |    |                     |   |   |   |   |   |   |   |
| Issuance                of common stock for retirement of note payable and                interest          |   |                        | 440,000,000                    |                   |   | 440,000                        |   |                   |                     |        |   |                     |   |    |                     |   |   |   |   |   |   |   |
| Issuance                of preferred stock for services based on value of services                performed |   |                        |                           |                   |   |                           |   |                   |                     |        |   | 800,000                  |   |    | 800                      |   |   | 191,200 |   |   |   |   |
| Net                loss for the period                                                                      |   |                        |       |                   |   |            |   |                   |      |        |   |      |   |    |      |   |   |      |   |   | (825,108 | ) |
| Balance,                Dec. 30, 2005                                                                       |   |                        | 893,970,939                    |                   | $      | 893,971                        |   | $                      | 6,720,849                |        |   | 2,000,000                |   | $       | 2,000                    |   | $ | 706,000 |   |   | (10,661,041 | ) |
|                                                                                                        |   |                        |                           |                   |   |                           |   |                   |                     |        |   |                     |   |    |                     |   |   |   |   |   |   |   |
|                                                                                                        |   |                        |                           |                   |   |                           |   |                   |                     |        |   |                     |   |    |                     |   |   |   |   |   |   |   |

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STATEMENTS      OF CASH FLOWS (Unaudited)

|                                                                                                            |   | For                the Nine Months Ended |     |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|----------|
|                                                                                                            |   | December                31,              |     | December                31, |   |
|                                                                                                            |   | 2005                                     |     | 2004 |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                             |   |                                     |     |   |   |
| Net                income (loss)                                                                                |   | $                                        | (825,108 | ) | $ | (3,037,230 | ) |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                     |     |   |   |   |   |
| Depreciation                                                                                                    |   |                                     | 20,193   |   |   | 87,675 |   |
| Stock                issued for services and interest                                                           |   |                                     | 737,810  |   |   | 775,700 |   |
| Increase                in accounts receivable                                                                  |   |                                     | (51,921  | ) |   | (14,918 | ) |
| Inventory                                                                                                       |   |                                     | 1,050    |   |   | (16,104 | ) |
| Prepaid                expenses                                                                                 |   |                                     | 12,790   |   |   | - |   |
| Decrease                in accrued expenses and accounts payable                                                |   |                                     | 91,031   |   |   | (9,571 | ) |
| Total                cash used provided by operating activities                                                 |   |                                     | (14,155  | ) |   | (2,214,448 | ) |
|                                                                                                            |   |                                     |     |   |   |   |   |
| CASH                FROM INVESTING ACTIVITIES                                                                   |   |                                     |     |   |   |   |   |
| Payment                for product development                                                                  |   |                                     | —  |   |   | (215,973 | ) |
| Payment                for B2Network                                                                            |   |                                     | —  |   |   | (50,000 | ) |
| Purchase                of equipment                                                                            |   |                                     | —  |   |   | (5,573 | ) |
| Total                cash used by operating activities                                                          |   |                                     | —  |   |   | (271,546 | ) |
|                                                                                                            |   |                                     |     |   |   |   |   |
| CASH                FROM FINANCING ACTIVITIES                                                                   |   |                                     |     |   |   |   |   |
| Issuance                of common stock                                                                         |   |                                     | —  |   |   | 1,978,892 |   |
| Decrease                in stock subscription receivable                                                        |   |                                     | 10,000   |   |   | — |   |
| Increase                in notes payable                                                                        |   |                                     | —  |   |   | 512,500 |   |
| Total                cash provided by Financing activities                                                      |   |                                     | 10,000   |   |   | 2,491,392 |   |
|                                                                                                            |   |                                     |     |   |   |   |   |
| Increase                in cash                                                                                 |   |                                     | (4,155   | ) |   | 5,398 |   |
|                                                                                                            |   |                                     |     |   |   |   |   |
| Beginning                cash balance                                                                           |   |                                     | 5,711    |   |   | 1,093 |   |
| Ending                cash balance                                                                              |   | $                                        | 1,556    |   | $ | 6,491 |   |
|                                                                                                            |   |                                     |     |   |   |   |   |
| SUPPLEMENTAL                SCHEDULE OF NON-CASH AND INVESTING ACTIVITIES                                       |   |                                     |     |   |   |   |   |
| Preferred                stock converted notes payable                                                          |   | $                                        | —  |   | $ | 800,000 |   |
| Issuance                of shares for services and interest                                                     |   | $                                        | 737,810  |   | $ | 775,700 |   |
| Issuance                of shares for B2network                                                                 |   | $                                        | —  |   | $ | 100,000 |   |
| Issuance                of shares for notes payable                                                             |   | $                                        | 400,000  |   | $ | — |   |
|                                                                                                            |   |                                     |     |   |   |   |   |
|                                                                                                            |   |                                     |     |   |   |   |   |

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**B2DIGITAL,      INC.**

**NOTES      TO FINANCIAL STATEMENTS (Unaudited) **

**NINE      MONTHS ENDING DECEMBER 31, 2005**

| 1. | The                accompanying unaudited condensed interim financial statements have                been                prepared in accordance with the rules and regulations of the Securities                and Exchange Commission for the presentation of interim financial                information, but do not include all the information and footnotes                required                by generally accepted accounting principles for complete financial                statements. The audited financial statements for the two years ended                March                31, 2005 and 2004 were filed on August 11, 2005 with the Securities                and                Exchange Commission and is hereby referenced. In the opinion of                management, all adjustments considered necessary for a fair presentation                have been included. Operating results for the nine-month periods                ended                December 31, 2005 are not necessarily indicative of the results that                may                be expected for the year ended March 31, 2006. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES |
|----|-----------------------------------------------------------|

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| 3. | DESCRIPTION                OF BUSINESS |
|----|----------------------------------------|

**General      **

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**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**

**CAUTIONARY      STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS **

**THREE      MONTH AND NINE MONTH PERIOD ENDED DECEMBER 31, 2005 AS COMPARED TO THREE MONTH      AND NINE MONTHS ENDED DECEMBER 31, 2004**

**RESULTS      OF OPERATIONS **

**NET      REVENUE **

**COST      OF SALES **

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**GROSS      PROFIT **

**GENERAL,      ADMINISTRATIVE AND SELLING EXPENSES **

**NET      INCOME (LOSS) **

**BASIC      AND DILUTED INCOME (LOSS) PER SHARE **

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**LIQUIDITY      AND CAPITAL RESOURCES **

**ITEM      3. CONTROLS AND PROCEDURES **

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**Part      II - OTHER INFORMATION **

**Item      1. Legal Proceedings. **

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds**

**Equity      **

**Item      3. Defaults Upon Senior Securities. **

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

**Item      5. Other Information. **

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**Item      6. Exhibits **

| (a) | Exhibits |
|-----|----------|

| EXHIBIT                NO. |   | DESCRIPTION                                                                                                                                                                                                                                     |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                            |
| 2.1                        |   | Asset                Purchase Agreement between the Company and Hotel Movie Network, Inc.,                dated March 31, 2003 (incorporated by reference to Exhibit 10 of                the Form                8-K filed on April 18, 2003). |
|                       |   |                                                                                                                                                                                                                                            |
| 3.1(a)                     |   | Restated                Articles of Incorporation (filed as an exhibit to the company's Form                8-K                filed on October 19, 2001 and incorporated by reference                herein)                                   |
|                       |   |                                                                                                                                                                                                                                            |
| 3.1(b)                     |   | Amendment                to Certificate of Incorporation (Incorporated by reference from 10QSB                dated December 31, 2004).                                                                                                         |
|                       |   |                                                                                                                                                                                                                                            |
| 3.1(c)                     |   | Certificate                of Designation of Series A Convertible Preferred Stock                                                                                                                                                               |
|                       |   |                                                                                                                                                                                                                                            |
| 3.1(d)                     |   | Amendment                to Certificate of Incorporation (Incorporated by reference from Schedule                14C filed November 28, 2005).                                                                                                  |
|                       |   |                                                                                                                                                                                                                                            |
| 3.2                        |   | Bylaws                (incorporated by reference to Exhibit 3.2 of the company's Registration                Statement on Form S-18, Registration No. 2-86781-D)                                                                                |
|                       |   |                                                                                                                                                                                                                                            |
| 4.1                        |   | 2005                Non-Qualified Stock Compensation Plan (filed as Exhibit 10.1 to the                Company's Form S-8 filed on January 11, 2005 and incorporated by                reference                herein).                        |
|                       |   |                                                                                                                                                                                                                                            |
| 10.1                       |   | Marketing                and Services Agreement between the company and InnNovations Multimedia                Systems Inc dated April 12, 2004 (Incorporated by reference to 8-K                filed                April 12, 2004).          |
|                       |   |                                                                                                                                                                                                                                            |
| 10.2                       |   | Member                Interest Purchase Agreement between the company and B2Networks, Inc.                dated                April 23, 2004 (Incorporated by reference to 8-K filed April 23,                2004).                           |
|                       |   |                                                                                                                                                                                                                                            |
| 10.3                       |   | Consultant                Agreement with Marcia A. Pearlstein (Incorporated by reference from                Form                10-QSB dated December 31, 2004).                                                                               |
|                       |   |                                                                                                                                                                                                                                            |
| 10.4                       |   | Membership                Interest Agreement with B2 Networks, LLC, as amended (Incorporated                by                reference to Form 8-K filed August 12, 2004)                                                                      |
|                       |   |                                                                                                                                                                                                                                            |
| 10.5                       |   | Operations                Agreement with B2 Networks LLC (Incorporated by reference from 10QSB                dated                December 31, 2004).                                                                                          |
|                       |   |                                                                                                                                                                                                                                            |
| 10.6                       |   | Employment                Agreement with Robert Russell (Effective January 25, 2005) (Incorporated                by reference from 10QSB dated December 31, 2004).                                                                             |
|                       |   |                                                                                                                                                                                                                                            |
| 10.7                       |   | August                2005 Non-Qualified Stock Compensation Plan (Incorporated by reference                from                Exhibit 10.1 of Form S-8, filed August 19, 2005).                                                                |
|                       |   |                                                                                                                                                                                                                                            |
| 10.8                       |   | Settlement                Agreement between B2Digital and Coast Communications dated 9-12-05                (incorporated by reference from Exhibit 16.1 with Form 8-K dated                10-25-05)                                           |
|                       |   |                                                                                                                                                                                                                                            |
| 14.1                       |   | Code                of Ethics (Incorporated by reference to 10KSB filed June 19,                2004)                                                                                                                                           |
|                       |   |                                                                                                                                                                                                                                            |
| 31.1                       |   | Section                302 Certification of the Chief Executive Officer.                                                                                                                                                                        |
|                       |   |                                                                                                                                                                                                                                            |
| 31.2                       |   | Section                302 Certification of the Interim Chief Financial                Officer.                                                                                                                                                 |
|                       |   |                                                                                                                                                                                                                                            |
| 32.1                       |   | Section                906 Certification of the Chief Executive Officer and Interim Chief                Financial Officer                                                                                                                      |

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**SIGNATURES**

**Dated      February 21, 2006**

| **B2DIGITAL,              INC.**                                                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                   |
| *By:                /s/ Robert Russell**Robert                Russell, President, Chief Executive Officer* */s/                Marcia Pearlstein**Marcia                Pearlstein, Secretary and Interim Chief Financial                Officer* |

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