SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   FORM 10QSB


                  Quarterly Report under Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


For Quarter Ended                           Commission File Number
December 31, 1999                                  33-5203-D



                                The Entity, Inc.

             (Exact name of registrant as specified in its charter)
                               Colorado 84-0953839
                               -------- ----------
                    (State of incorporation) (I.R.S. Employer
                               Identification No.)

             10200 W. 44th Avenue, Suite 400, Wheat Ridge, CO 80033
             ------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

        Registrant's telephone number, including area code:(303) 422-8127



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2)  has  been  subject  to the  filing
requirements for at least the past 90 days.

                                  Yes ____ No X

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

                       81,400,000 as of December 31, 1999


<PAGE>
<TABLE>
<CAPTION>


                                THE ENTITY, INC.
                          (A Development Stage Company)


                                  BALANCE SHEET
                                   (unaudited)

                                    December 31,       September 30,
                                                          1999                  1999
                                                          ----                  ----

<S>                                                           <C>                     <C>

Current Assets:

Cash and cash equivalents                                           $0                      $0


TOTAL ASSETS                                                        $0                      $0

              LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:


Accounts payable, related parties                               $9,624                  $9,624


Retained Earnings (deficit)                                   (71,374)                (71,374)


TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                          $(0)                    $(0)
</TABLE>


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

                                       F-1


<PAGE>
<TABLE>
<CAPTION>


                                THE ENTITY, INC.
                          (A Development Stage Company)


                             STATEMENT OF OPERATIONS
                                   (unaudited)



                                     Three Months Ending Dec.         Three Months Ending Dec.
                                                     31, 1999                         31, 1998
<S>                                                <C>                              <C>

Revenue & interest                                         $0                               $0

Rent & Office                                              $0                               $0

Travel                                                     $0                               $0

Weighted average number of                         81,400,000                       81,400,000
common shares

The accompanying notes are an integral part of the financial statements.
                                       F-2
</TABLE>


<PAGE>
<TABLE>
<CAPTION>



                                THE ENTITY, INC.
                          (A Development Stage Company)


                             STATEMENT OF CASH FLOWS
                                   (unaudited)


                                                     Three Months          Three Months Ending
                                                           Ending                Dec. 31, 1998
                                                    Dec. 31, 1999
<S>                                                            <C>                          <C>

Cash flows from operating
activities:

Cash provided (used) by operating                              $0                           $0
activities

Cash at beginning of period                                    $0                           $0

Cash at end of period                                          $0                           $0


The accompanying notes are an integral part of the financial statements.
                                       F-3
</TABLE>


<PAGE>


                                THE ENTITY, INC.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE QUARTER ENDED DECEMBER 31, 1999

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

               The  following  is  a  summary  of  The  Entity,  Inc.  (Company)
               significant accounting policies:

               Organizations

               The  Company  was  incorporated  July 7,  1983  under the laws of
               Colorado  under  the  name of  Moonstone,  Inc.  for the  primary
               purpose  of  seeking  acquisitions  of  business  or  properties,
               without limitation as to geographic location or type of business.
               Moonstone,  Inc.,  a  publicly  traded  entity,  merged  with The
               Entity,  Inc.  Moonstone,  Inc.,  the surviving  entity after the
               merger, changed its name to The Entity, Inc.

               On December  23,  1997,  an  application  for  Reinstatement  and
               Corporate  Report  was  approved  and  submitted  after a special
               stockholders'  meeting.  Many of the corporate  records have been
               lost or destroyed.  Since the completion of the initial offering,
               the  Company  has  not  engaged  in  any  operations  nor  has it
               generated  any  revenue.  The  Company  has been  engaged  in the
               identification  and  evaluation  of target  business  entities or
               assets for possible acquisition.

               Cash and Cash Equivalents

               For  purpose  of the  statement  of cash  flows,  cash  and  cash
               equivalents include cash in banks and money market accounts.  The
               Company has no cash accounts at the present time.

               Deferred Organization Expenses

               Cost incurred in connection with the organization were charged to
               expenses using the straight-line method over 60 months.

               Income Taxes

               The  Financial  Accounting  Standards  Board  (FASB)  has  issued
               Statement of  Financial  Accounting  Standards  Number 109 ("SFAS
               109"),  "Accounting  for Income  Taxes," which  requires a change
               from the  deferred  method to the  assets and  liability  method,
               deferred income taxes are recognized for the tax  consequences of
               "temporary  differences" by applying enacted  statutory tax rates
               applicable to future years to  differences  between the financial
               statement  carrying  amounts and the tax basis of existing assets
               and liabilities.

               At  September  30,  1999,  the  Company  had net  operating  loss
               carryforwards  of  approximately  $71,370 for federal  income tax
               purposes. These carryforwards,  if not utilized to offset taxable
               income,  will expire at the end of 2002. There is no provision or
               benefit for income taxes in fiscal 1999.

                                       F-4


<PAGE>



                                THE ENTITY, INC.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE QUARTER ENDED DECEMBER 31, 1999



NOTE 1 -       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

               Use of Estimates in the Preparation of Financial Statements

               The  preparation  of  financial  statements  in  conformity  with
               generally accepted  accounting  principles requires management to
               make estimates and assumptions that affect the reported amount of
               assets and liabilities  and disclosures of contingent  assets and
               liabilities  at the  date  of the  financial  statements  and the
               reported  amounts of revenues and expenses  during the  reporting
               period. Actual results could differ from those estimates.

NOTE 2 -       GOING CONCERN

               The  accompanying  financial  statements  have been  prepared  in
               conformity with generally accepted accounting  principles,  which
               contemplates  continuation  of the  Company  as a going  concern.
               However,  the Company has sustained an operation  loss this year.
               As shown in the financial statements,  the Company incurred a net
               loss of $3,000 for 1999 and had  incurred net losses in the prior
               years. At December 31, 1999,  current  liabilities exceed current
               assets by $9,624.  These  factors  indicate  that the Company has
               substantial  doubt  about  its  ability  to  continue  as a going
               concern.  The financial statements do not include any adjustments
               relating to the  recoverability  and  classification  of recorded
               assets,  or the amounts and  classification  of liabilities  that
               might be  necessary in the event the Company  cannot  continue in
               existence.

               In view of these  matters,  realization of a major portion of the
               assets  in the  accompanying  balance  sheet  is  dependent  upon
               continued  operations of the Company,  which in turn is dependent
               upon the Company's  ability to meet its  financial  requirements,
               and the success of its future operations.

                                       F-5





<PAGE>


ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS
       -----------------------------------------------------------------------

RESULTS OF OPERATIONS

The Company has  experienced  no expenses for the three month period in 1999 and
1998.  The Company had no revenues  for the period in 1999 or 1998.  The Company
had no profit or loss for the period in 1999 or 1998.  The Company will continue
to have no income and losses until income can be achieved.  While the company is
seeking capital  sources for investment;  there is no assurance that sources can
be found.

LIQUIDITY AND CAPITAL RESOURCES

The  Company  had no cash  capital at the end of the  period and no assets.  The
Company will be forced to either  borrow or make private  placements of stock in
order to fund operations. No assurance exists as to the ability to achieve loans
or make private placements of stock.


                           PART II - OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

               None

ITEM 2.    CHANGES IN SECURITIES

               None

ITEM 3.    DEFAULT UPON SENIOR SECURITIES

               None

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

               None

ITEM 5.    OTHER INFORMATION

               None

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K

          No reports on Form 8-K were made for the period for which this  report
is filed.


<PAGE>


                                THE ENTITY, INC.
                          (A Development Stage Company)


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                    THE ENTITY, INC.



Date: June 11, 2000                     /s/Larry Carr
                                        ---------------------
                                        Larry Carr, President