UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C.  20549


                               FORM 10-QSB

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the quarterly period ended December 31, 2004

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

     For the transition period from ____________  to____________

                        Commission File No. 000-49671

                           BEAR LAKE RECREATION, INC.
                           --------------------------
        (Exact name of small business issuer as specified in its charter)


           NEVADA                                 87-0620495
           ------                                 ----------
(State or other jurisdiction of                (I.R.S. Employer I.D. No.)
incorporation or organization)

                        4685 S. Highland Drive #202
                         Salt Lake City, Utah 84117
                         --------------------------
                 (Address of principal executive offices)

                               (801) 278-9424
                               --------------
                        (Issuer's telephone number)

                                     N/A
                                     ---
            (Former name, former address and former fiscal year,
                       if changed since last report)

     Check whether the Company (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 Company was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.   Yes [X]
No [ ]   Yes [X]    No  [ ]

            APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                PROCEEDINGS DURING THE PRECEDING FIVE YEARS

                              Not applicable.

                   APPLICABLE ONLY TO CORPORATE ISSUERS

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

                            December 31, 2004

                            2,874,200 shares

Transitional Small Business Disclosure Format (Check one):  Yes  X  No
                                                                ---   ---

<PAGE>

                      PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.


                    BEAR LAKE RECREATION, INC.
                 [A Development Stage Company]
                          Balance Sheet
                        December 31, 2004


ASSETS

Current Assets:
    Cash in bank                                     $       76
                                                     ----------
      Total Current Assets                                   76
                                                     ----------
           Total Assets                              $       76
                                                     ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT

Liabilities:
  Current Liabilities:
  Accounts payable                                   $        0
  Accounts payable-related party                         18,412
                                                     ----------
      Total Current Liabilities                          18,412
                                                     ----------
           Total Liabilities                             18,412


Stockholders' Deficit:
  Common Stock -- 50,000,000 shares authorized
   having a par value of $.001 per share;
   2,874,200 shares issued and outstanding                2,874
  Additional Paid-in Capital                             79,704
  Deficit accumulated during the development stage     (100,914)
                                                     ----------
      Total Stockholders' Deficit                       (18,336)
                                                     ----------
           Total Liabilities and Stockholders' Deficit       76
                                                     ==========

         See accompanying notes to financial statements
<PAGE>
                    BEAR LAKE RECREATION, INC.
                 [A Development Stage Company]
                     Statements of Operations
 For the three and six month periods ended December 31, 2004 and 2003, and for
the Period from Inception [October 22, 1998] through December 31, 2004

                        Three     Three       Six      Six       October 22,
                       Months    Months     Months   Months         1998
                        Ended     Ended      Ended    Ended        through
                      12/31/04  12/31/03  12/31/04 12/31/03      12/31/04
Sales                 $    0    $    0    $     0   $      0           1,396
Cost of Sales              0         0          0          0             707
                      ------    ------    -------   --------      ----------
  Gross Profit             0         0          0          0             689

General and
administrative
expenses               4,544     1,417      8,862      1,417          81,892
                      ------    ------    -------   --------      ----------
  Net income/(loss)
  from operations     (4,544)   (1,417)    (8,862)    (1,417)        (81,203)

Other Income(Expense)
  Write off of
   inventory               -         -          -          -         (10,645)
  Loss on sale of
   assets                  -         -          -          -          (9,066)
                     -------   -------    -------   --------     -----------
Total Other
Income(Expense)            -         -          -          -         (19,711)

Net income/(loss)
before taxes          (4,544)   (1,417)    (8,862)    (1,417)       (100,914)

Income taxes               -         -          -          -              -
                     -------   -------   --------   --------    ------------
Net income/(loss)    $(4,544)  $(1,417)  $ (8,862)  $ (1,417)   $   (100,914)
                     =======   =======   ========   ========    ============
Income/(Loss) Per
Share-Basic and
Diluted                (0.01)    (0.01)     (0.01)     (0.01)          (0.07)
                     =======   =======   ========   ========    ============

Weighted Average
Shares Outstanding-
Basic and Diluted  2,874,200 1,374,200  2,144,692  1,374,200       1,402,705
                   ========= =========  =========  =========    ============

          See accompanying notes to financial statements
<PAGE>
                     BEAR LAKE RECREATION, INC.
                    [A Development Stage Company]
                      Statements of Cash Flows
For the six month periods ended December 31, 2004 and 2003, and for the
 Period from Inception [October 22, 1998] through December 31, 2004

                                           Six           Six         October
                                           Months        Months      22, 1998
                                           Ended         Ended       through
                                           12/31/04      12/31/03    12/31/04
Cash Flows from Operating Activities
Net Loss                                   $(8,862)  $    (1,417)   $(100,914)
Adjustments to reconcile net loss
to net cash used in operating
activities:
    Depreciation and amortization                -             -        4,799
    Loss on disposal of equipment                -             -        9,066
    Write off of related party receivable        -             -        1,000
    Write off of Website development costs       -             -        8,877
    Write off of inventory                       -             -       10,645
    Stock Issued for Services                1,500             -        1,500
Decrease (increase) in inventory                 -             -      (10,645)
Increase (decrease) in accounts payable     (1,751)        1,417            -
Increase in accounts payable-related party   9,113             -       18,412
Increase (decrease) in bank overdraft            -             -            -
                                           -------   -----------   ----------
   Net Cash provided by (used in)
   Operating activities                          -             -      (57,260)

Cash Flows from Investing Activities
Purchase of property and equipment               -             -      (12,433)
Website development costs                        -             -      (10,309)
                                           -------   -----------   ----------
  Net Cash used in Investing activities          -             -      (22,742)

Cash Flows from Financing Activities
Stock offering costs                             -             -       (6,072)
Related-party receivable                         -             -       (1,000)
Proceeds from the issuance of common stock       -             -       87,150
                                           -------   -----------   ----------
   Net Cash provided by Financing activities     -             -       80,078

Net increase (decrease) in Cash                  -             -           76
Beginning Cash Balance                          76           160            -
                                           -------   -----------   ----------
Ending Cash Balance                        $    76   $       160   $       76
                                           =======   ===========   ==========

Supplemental Disclosure of Cash Flow Information:
  Cash paid during the year for interest   $     0   $         0   $        0
  Cash paid during the year for income taxes     0             0            0

          See accompanying notes to financial statements
<PAGE>
                   BEAR LAKE RECREATION, INC.
                 [A Development Stage Company]
                 Notes to Financial Statements
                      December 31, 2004

Note 1    Organization and Summary of Significant Accounting Policies

          (a) Organization

          Bear Lake Recreation, Inc. (the Company) was organized under the
          laws of the State of Nevada on October 22, 1998, to engage in any
          lawful purpose. The Company is considered a development stage
          company as defined in Statement of Financial Accounting Standards
          No. 7.  The Company has at the present time, not paid any
          dividends and any dividends that may be paid in the future will
          depend upon the financial requirements of the Company and other
          relevant factors.

          Through the year ended June 30, 2001 the Company was seeking to
          rent out snowmobiles and all-terrain vehicles (ATV's).  In June of
          2000, the Company also purchased the rights to manufacture, use,
          market, and sell the Net Caddy, a backpack style bag used to
          transport fishing gear. The Company has abandoned both the
          snowmobile and ATV's  plans and the Net Caddy plans.

          Currently, managements plans include finding a well-capitalized
          merger candidate to recommence its operations.

          (b) Income Taxes

          The Company applies the provisions of Statement of Financial
          Accounting Standards No. 109 [the Statement], Accounting for
          Income Taxes.  The Statement requires an asset and liability
          approach for financial accounting and reporting for income taxes,
          and the recognition of deferred tax assets and liabilities for the
          temporary differences between the financial reporting basis and
          tax basis of the Company's assets and liabilities at enacted tax
          rates expected to be in effect when such amounts are realized or
          settled. Due to a loss from inception, the Company has no tax
          liability.  At this time the Company has no deferred taxes arising
          from temporary differences between income for financial reporting
          and income tax purposes.

          (c) Net Loss Per Common Share

          The Company has adopted Statement of Financial Accounting
          Standards  No. 128, Earnings Per Share.  Statement No. 128 revised
          the manner in which loss per share is calculated.  Basic loss per
          common share is computed by dividing net loss by the weighted
          average number of common shares outstanding during the period.
          Diluted loss per share is calculated to give effect to common
          stock equivalents.  There are no common stock equivalents
          outstanding as of December 31, 2004 or 2003 thus, basic and diluted
          loss per share calculations are the same.

          (d) Cash and Cash Equivalents

          For purposes of the statement of cash flows, the Company considers
          all highly liquid debt instruments purchased with a maturity of
          three months or less to be cash equivalents.  During the period
          ending December 31, 2004 the Company did not have non-cash investing
          or financing activities.

<PAGE>

                    BEAR LAKE RECREATION, INC.
                    [A Development Stage Company]
                    Notes to Financial Statements
                    December 31, 2004

Note 1    Organization and Summary of Significant Accounting Policies-
          (continued)

          (e) Inventories

          Inventories have subsequently been written off.

          (f) Use of Estimates in Preparation of Financial Statements

          The financial statements contained herein have been prepared by
          management and are unaudited.  It is believed that these financial
          statements conform with U. S. generally accepted accounting
          principles which require management to make estimates and
assumptions
          that affect the reported amounts of assets and liabilities and
          disclosure 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 Company is a development stage enterprise, has suffered losses
          from operations and has had negative cash flows from operating
          activities during the period from inception [October 22, 1998]
          through this reporting period.  Realization of a major portion of
          the assets is dependent upon the Company's ability to meet its
          future financing requirements, and the success of future
          operations. These factors raise substantial doubt  about the
          Company's  ability to continue as a going concern. The financial
          statements do not include any adjustment that might result from
          the outcome of this uncertainty. Currently, managements plans
          include finding a well-capitalized merger candidate to recommence
          its operations.

Note 3    Common Stock

          On October 25, 1998, the Company issued 1,000,000 shares to an
          officer of the Company for cash considerations of $1,000 or $.001
          per share.

          On March 4, 1999, the Company received $45,000 cash considerations
          for the issuance of 45,000 shares  of common stock at a price of
          $1.00 per share.

          In July and August 2000, the Company issued 329,200 shares of its
          common stock for $41,150 or $.125 per share.

          On September 28, 2004, the Company issued 1,500,000 shares of its
          common stock at par value to its officers and directors for
          services rendered.

<PAGE>
                    BEAR LAKE RECREATION, INC.
                  [A Development Stage Company]
                  Notes to Financial Statements


 Note 4   Related Party Transactions

          The Company has received advances from an investor in order to
          fund operating expenses.  The  loan is interest free, unsecured
          and payable on demand. The balance of the loan as of December 31,
          2004 is $18,412.


<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

Plan of Operation.
------------------

     Our Company's plan of operation for the next 12 months is to:(i)
consider guidelines of industries in which our Company may have an interest;
(ii) adopt a business plan regarding engaging in business in any selected
industry; and (iii) to commence such operations through funding and/or the
acquisition of a "going concern" engaged in any industry selected.

     Our Company's only foreseeable cash requirements during the next 12
months will relate to maintaining our Company in good standing in the State
of Nevada, as well as legal and accounting fees.  Management does not
anticipate that our Company will have to raise additional funds during the
next 12 months.

Results of Operations.
----------------------

Three Months Ended December 31, 2004 compared to Three Months Ended December
31, 2003.
---------

          In the quarterly period ended December 31, 2004, we had sales of $0,
compared to the quarterly period ended December 31, 2003, with sales of $0.
General and administrative expenses were $1,417 for the December 31, 2003
period compared to $4,544 for the December 31, 2004 period.  We had net loss
of $1,417 for the December 31, 2003 period compared to a net loss of $4,544
for the December 31, 2004 period.

Six Months Ended December 31, 2004 compared to Six Months Ended December 31,
2003.
-----

          In the six months ended December 31, 2004, we had sales of $0,
compared to the six months ended December 31, 2003, with sales of $0.
General and administrative expenses were $1,417 for the December 31, 2003
period compared to $8,862 for the December 31, 2004 period.  We had net loss
of $1,417 for the December 31, 2003 period compared to a net loss of $8,862
for the December 31, 2004 period.

Liquidity and Capital Resources.
--------------------------------

          Our total assets as of December 31, 2004, were $76.  We do depend
on a shareholder being able to loan us money to fund our attempt to get and
maintain our Company current in its filings and if this shareholder is not
able to loan us the money our ability to continue in our attempt to get and
maintain our Company current would be substantially reduced.

Forward-Looking Statements.
---------------------------

          The foregoing discussion contains forward-looking statements that
discuss, among other things, future expectations and projections regarding
future developments, operations and financial conditions. All forward-looking
statements are based on management's existing beliefs about present and future
events outside of management's control and on assumptions that may prove to be
incorrect. If any underlying assumptions prove incorrect, Birch Financial's
actual results may vary materially from those anticipated, estimated,
projected or intended.

Item 3.   Controls and Procedures.

     As of the end of the period covered by this Quarterly Report, we carried
out an evaluation, under the supervision and with the participation of our
President and Secretary, of the effectiveness of our disclosure controls and
procedures.  Based on this evaluation, our President and Secretary concluded
that our disclosure controls and procedures are effective in timely alerting
them to material information required to be included in our periodic
Securities and Exchange Commission reports.  It should be noted that the
design of any system of controls is based in part upon certain assumptions
about the likelihood of future events, and there can be no assurance that any
design will succeed in achieving its stated goals under all potential future
conditions, regardless of how remote.  In addition, we reviewed our internal
controls over financial reporting, and there have been no changes in our
internal controls or in other factors in the last fiscal quarter that has
materially affected or is reasonably likely to materially affect our internal
control over financial reporting.

                        PART II - OTHER INFORMATION

Item 1.   Legal Proceedings.

     None; not applicable.

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

     None; not applicable.

Item 3.   Defaults Upon Senior Securities.

     None; not applicable.

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

     None; not applicable.

Item 5.   Other Information.

     None; not applicable.

Item 6.   Exhibits and Reports on Form 8-K.

     (a) Exhibits.

         31.1 302 Certification of Wayne Bassham

         31.2 302 Certification of Todd Albiston

         32 906 Certification

     (b) Reports on Form 8-K.

         8-K Current Report dated September 28, 2004, and filed with the
Securities and Exchange Commission on September 29, 2004, regarding the
issuance of 1,500,000 shares to members of management.

         8-K Current Report dated March 5, 2004, and filed with the Securities
and Exchange Commission on November 12, 2004, regarding the change of our
accountants.

<PAGE>

                                SIGNATURES

          In accordance with the requirements of the Exchange Act, the
Registrant has caused this Quarterly Report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                         BEAR LAKE RECREATION, INC.


Date: 1/31/2005                          By:/s/Wayne Bassham
      ---------                             ------------------------
                                            Wayne Bassham
                                            President and Director

Date: 1/31/2005                          By:/s/Todd Albiston
      ---------                             ------------------------
                                            Todd Albiston,
                                            Secretary/Treasurer and Director
<PAGE>