UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      DC 20549





**FORM
      10-QSB**





[X]
            Quarterly
                Report pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934For
                the quarterly period ended:June
                30, 2005[  
                 ]
            Transition
                Report pursuant to 13 or 15(d) of the Securities Exchange Act of
                1934For
                the transition period ________to__________Commission
                File Number:000-50762





CALIFORNIA
      NEWS TECH


(Exact
      name of small business issuer as specified in its charter)





Nevada
            88-0417389(State
                or other jurisdiction of incorporation or organization)
            (IRS
                Employer Identification No.)








825
                Van Ness Ave., Suite 406-407, San Francisco, California
                94109(Address
                of principal executive offices)





415-861-3421(Issuer’s
                telephone number)_______________________________________________________________(Former
                name, former address and former fiscal year, if changed since last
                report)





Check
      whether the issuer (1) 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 issuer was required to file such reports),
      and
      (2) has been subject to such filing requirements for the past 90 days [X] Yes
      [
      ] No





State
      the
      number of shares outstanding of each of the issuer’s classes of common stock, as
      of the latest practicable date: 2,756,333 common shares as of June 30,
      2005





Transitional
      Small Business Disclosure Format (check one): Yes [   ] No
      [X]





***Table
          of Contents***








**TABLE
                OF CONTENTS**
            PagePART
                I - FINANCIAL INFORMATIONItem
                1:
            Financial
                Statements
            3Item
                2:
            Plan
                of Operation
            4Item
                3:
            Controls
                and Procedures
            8PART
                II - OTHER INFORMATIONItem
                1:
            Legal
                Proceedings
            9Item
                2:
            Unregistered
                Sales of Equity Securities and Use of
                Proceeds
            9Item
                3:
            Defaults
                Upon Senior Securities
            9Item
                4:
            Submission
                of Matters to a Vote of Security
                Holders
            9Item
                5:
            Other
                Information
            10Item
                6:
            Exhibits
            10







2
 ***Table
          of Contents***


**PART
      I - FINANCIAL INFORMATION**





**Item
      1.** **Financial
      Statements**





Our
      unaudited financial statements included in this Form 10-QSB are as
      follows:





(a)
            Balance
                Sheet as of June 30, 2005.


(b)
            Statement
                of Operations for the three and six month periods ended June 30,
                2005 and
                2004;


(c)
            Statement
                of Cash Flows for the three and six month periods ended June 30,
                2005 and
                2004;


(d)
            Notes
                to Consolidated Financial
                Statements.





These
      unaudited financial statements have been prepared in accordance with accounting
      principles generally accepted in the United States of America for interim
      financial information and the SEC instructions to Form 10-QSB. In the opinion
      of
      management, all adjustments considered necessary for a fair presentation have
      been included. Operating results for the interim period ended June 30, 2005
      are
      not necessarily indicative of the results that can be expected for the full
      year.


3
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CALIFORNIA
          NEWS TECHBALANCE SHEET W/PREV YEAR
          COMPARISONAS OF JUNE 30, 2005
  **Jun
                      30, 05**
                  
                  **Jun
                      30, 04****ASSETS****Current
                      Assets****Checking/Savings****1000
                      · Bank of America Checking**
                  
                  
                  13,842
                  
                  
                  3,688**1005
                      · Bank of America - Escrow**
                  
                  
                  45,000
                  
                  
                  100**1007
                      · Bank of America-Expense Clear**
                  
                  
                  4,903
                  
                  
                  0**Total
                      Checking/Savings**
                  
                  
                  63,744
                  
                  
                  3,788**Total
                      Current Assets**
                  
                  
                  63,744
                  
                  
                  3,788**Fixed
                      Assets****1510
                      · Equipment & Computers**
                  
                  
                  9,811
                  
                  
                  9,099**1750
                      · Accumulated Depreciation**
                  
                  
                  (8,605
                  )
                  
                  (7,637
                  )**Total
                      Fixed Assets**
                  
                  
                  1,206
                  
                  
                  1,462**Other
                      Assets****1800
                      · Other Assets****1810
                      · Investment-Stra. Inf. Tec-USA**
                  
                  
                  55,000
                  
                  
                  55,000**1820
                      · Investment-Product Development**
                  
                  
                  213,739
                  
                  
                  213,739**1830
                      · Website Development**
                  
                  
                  31,860
                  
                  
                  31,860**1840
                      · Security Deposits**
                  
                  
                  1,500
                  
                  
                  0**Total
                      1800 · Other Assets**
                  
                  
                  302,099
                  
                  
                  300,599**Total
                      Other Assets**
                  
                  
                  302,099
                  
                  
                  300,599**TOTAL
                      ASSETS**
                  
                  
                  **367,049**
                  
                  
                  **305,849****LIABILITIES
                      & EQUITY****Liabilities****Current
                      Liabilities****Accounts
                      Payable****2000
                      · Accounts Payable-Trade****2020
                      · Accounts Payable**
                  
                  
                  19,829
                  
                  
                  53,602**Total
                      2000 · Accounts Payable-Trade**
                  
                  
                  19,829
                  
                  
                  53,602**Total
                      Accounts Payable**
                  
                  
                  19,829
                  
                  
                  53,602**Other
                      Current Liabilities****2100
                      · Deferred Revenue**
                  
                  
                  2,684
                  
                  
                  0**2500
                      · Notes Payable**
                  
                  
                  43,500
                  
                  
                  48,500**Total
                      Other Current Liabilities**
                  
                  
                  46,184
                  
                  
                  48,500**Total
                      Current Liabilities**
                  
                  
                  66,013
                  
                  
                  102,102**Long
                      Term Liabilities****2700
                      · LT Notes Payable**
                  
                  
                  77,140
                  
                  
                  77,140**Total
                      Long Term Liabilities**
                  
                  
                  77,140
                  
                  
                  77,140**Total
                      Liabilities**
                  
                  
                  143,153
                  
                  
                  179,242**Equity****3000
                      · Capital Stock**
                  
                  
                  8,269
                  
                  
                  7,519**3030
                      · Additional Paid-In Capital**
                  
                  
                  1,138,856
                  
                  
                  889,606**3040
                      · Stock Registration Costs**
                  
                  
                  (156,187
                  )
                  
                  (155,350
                  )**3100
                      · Retained Earnings**
                  
                  
                  (674,922
                  )
                  
                  (590,743
                  )**Net
                      Income**
                  
                  
                  (92,120
                  )
                  
                  (24,425
                  )**Total
                      Equity**
                  
                  
                  223,896
                  
                  
                  126,607**TOTAL
                      LIABILITIES & EQUITY**
                  
                  
                  **367,049**
                  
                  
                  **305,849**




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CALIFORNIA
      NEWS TECHPROFIT & LOSS YTD
      COMPARISONJANUARY THROUGH JUNE 2005 **Jan
                    - Jun 05**
                
                **Jan
                    - Jun 04**
                
                **Apr
                    - Jun 05**
                
                **Apr
                    - Jun 04****Ordinary
                    Income/Expense****Income****4000
                    · Revenue**
                
                
                8,661
                
                
                0
                
                
                6,680
                
                
                0**4060
                    · Revenue - Subscription Sales**
                
                
                215
                
                
                0
                
                
                215
                
                
                0**Total
                    Income**
                
                
                8,876
                
                
                0
                
                
                6,895
                
                
                0**Gross
                    Profit**
                
                
                8,876
                
                
                0
                
                
                6,895
                
                
                0**Expense****4500
                    · Website Development Costs**
                
                
                15,196
                
                
                3,250
                
                
                6,438
                
                
                3,250**4550
                    · Website Operating Expenses**
                
                
                1,635
                
                
                0
                
                
                600
                
                
                0**4600
                    · Advertising**
                
                
                750
                
                
                0
                
                
                (150
                )
                
                0**4620
                    · Commission Expense**
                
                
                3,057
                
                
                0
                
                
                2,404
                
                
                0**5005
                    · Recruiting**
                
                
                105
                
                
                0
                
                
                105
                
                
                0**5010
                    · Officers Salary****5015
                    · Executive Compensation-Direct**
                
                
                30,500
                
                
                0
                
                
                14,000
                
                
                0**5010
                    · Officers Salary - Other**
                
                
                2,500
                
                
                0
                
                
                2,500
                
                
                0**Total
                    5010 · Officers Salary**
                
                
                33,000
                
                
                0
                
                
                16,500
                
                
                0**5040
                    · Rent - Office**
                
                
                5,000
                
                
                0
                
                
                3,000
                
                
                0**5050
                    · Postage and Delivery**
                
                
                403
                
                
                41
                
                
                167
                
                
                0**5060
                    · Office Expense****5064
                    · Printing and Reproduction**
                
                
                26
                
                
                0
                
                
                26
                
                
                0**Total
                    5060 · Office Expense**
                
                
                26
                
                
                0
                
                
                26
                
                
                0**5070
                    · Office Equipment & Supplies****5071
                    · Office Supplies**
                
                
                651
                
                
                0
                
                
                286
                
                
                0**5073
                    · Office Equipment**
                
                
                545
                
                
                0
                
                
                355
                
                
                0**5070
                    · Office Equipment & Supplies - Other**
                
                
                0
                
                
                1,353
                
                
                0
                
                
                1,289**Total
                    5070 · Office Equipment & Supplies**
                
                
                1,196
                
                
                1,353
                
                
                641
                
                
                1,289**5080
                    · Telephone**
                
                
                1,798
                
                
                1,070
                
                
                978
                
                
                348**5110
                    · Legal & Professional Fees****5111
                    · Legal Fees**
                
                
                21,742
                
                
                8,086
                
                
                11,650
                
                
                0**5115
                    · Accounting**
                
                
                8,500
                
                
                8,325
                
                
                8,500
                
                
                8,325**Total
                    5110 · Legal & Professional Fees**
                
                
                30,242
                
                
                16,411
                
                
                20,150
                
                
                8,325**5117
                    · Professional /Dues**
                
                
                8
                
                
                35
                
                
                0
                
                
                0**5150
                    · Travel & Ent****5152
                    · Meals**
                
                
                848
                
                
                20
                
                
                549
                
                
                0**Total
                    5150 · Travel & Ent**
                
                
                848
                
                
                20
                
                
                549
                
                
                0**5160
                    · Travel**
                
                
                336
                
                
                73
                
                
                315
                
                
                0**5170
                    · Company Automobile Expense**
                
                
                278
                
                
                306
                
                
                0
                
                
                0**5180
                    · Repairs****5183
                    · Computer Repairs**
                
                
                0
                
                
                101
                
                
                0
                
                
                0**Total
                    5180 · Repairs**
                
                
                0
                
                
                101
                
                
                0
                
                
                0**5200
                    · Bank Service Charges****5210
                    · Monthly Bank Service Fee**
                
                
                17
                
                
                195
                
                
                0
                
                
                120**5220
                    · Credit Card Access/ Processing**
                
                
                331
                
                
                270
                
                
                166
                
                
                105**5230
                    · Bank Wire/Service Fees**
                
                
                411
                
                
                245
                
                
                266
                
                
                200**Total
                    5200 · Bank Service Charges**
                
                
                759
                
                
                710
                
                
                432
                
                
                425**5310
                    · Prof. Dues and Subscriptions**
                
                
                5,500
                
                
                0
                
                
                0
                
                
                0**5400
                    · Stock Registration & Transfer**
                
                
                275
                
                
                0
                
                
                150
                
                
                0**7010
                    · State Taxes (FTB)****7011
                    · State of NV-Franchise Tax Board**
                
                
                585
                
                
                255
                
                
                0
                
                
                0**7012
                    · State of CA-Franchise Tax Brd**
                
                
                0
                
                
                800
                
                
                0
                
                
                0**Total
                    7010 · State Taxes (FTB)**
                
                
                585
                
                
                1,055
                
                
                0
                
                
                0**Total
                    Expense**
                
                
                100,997
                
                
                24,425
                
                
                52,304
                
                
                13,637**Net
                    Ordinary Income**
                
                
                (92,121
                )
                
                (24,425
                )
                
                (45,410
                )
                
                (13,637
                )**Net
                    Income**
                
                
                **(92,121**
                **)**
                
                **(24,425**
                **)**
                
                **(45,410**
                **)**
                
                **(13,637**
                **)**


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          of Contents***


**** CALIFORNIA
        NEWS TECHSTATEMENT OF CASH FLOWS W/PRIOR
        YEAR COMPARISONAS OF JUNE 30, 2005
  **Apr
                    - Jun 05**
                
                **Apr
                    - Jun 04****OPERATING
                    ACTIVITIES****Net
                    Income**
                
                
                (45,410
                )
                
                (13,637
                )**Adjustments
                    to reconcile Net Income****to
                    net cash provided by operations:****1240
                    · Accounts Receivable - Other**
                
                
                653**2000
                    · Accounts Payable-Trade:2020 · Accounts Payable**
                
                
                (1,495
                )
                
                7,183**2100
                    · Deferred Revenue**
                
                
                2,684
                
                
                0**2500
                    · Notes Payable**
                
                
                0
                
                
                5,000**Net
                    cash provided by Operating Activities**
                
                
                (43,568
                )
                
                (1,454
                )**FINANCING
                    ACTIVITIES****3000
                    · Capital Stock**
                
                
                (105
                )
                
                0**3030
                    · Additional Paid-In Capital**
                
                
                (34,895
                )
                
                0**Net
                    cash provided by Financing Activities**
                
                
                (35,000
                )
                
                0**Net
                    cash increase for period**
                
                
                (78,568
                )
                
                (1,454
                )**Cash
                    at beginning of period**
                
                
                142,312
                
                
                5,242**Cash
                    at end of period**
                
                
                **63,744**
                
                
                **3,788**








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          of Contents***




**California
        News Tech**
 **Notes
        to Financial Statements**
 **As
        of June 30, 2005 (Unaudited)**
 
 Note
        1. Going Concern Uncertainty and Liquidity
 
 Having
        raised additional capital the Company will continue as a going concern.
        Historically, the Company has incurred significant losses and negative cash
        flows from operations. As of December 31, 2004, the accumulated deficit was
        $674,922 and positive working capital was $124,851. As of June 20, 2005,
        the
        accumulated deficit was $767,042 and the negative working capital was $2,269.
        The Company has primarily funded operations through private placements and
        recently a public offering. To the extent that sources of financing are
        available, the Company will promote its software, maintain its processing
        system
        and continue to enhance its service. Management expects that future subscription
        revenue will be sufficient to fund operations.
 
 Note
        2. Material Events
 
 On
        May 17, 2005, the company announced that it had entered into a
        non-binding letter of intent to acquire intellectual property, including
        intangible assets, programming code, and patents, as created by well known
        software industry inventor, Seymour I. Rubinstein. Mr. Rubinstein was the
        founder of MicroPro International Corporation and developer of WordStar and
        QuattroPro. It is anticipated that Mr. Rubinstein will become an active member
        of senior management of the company once the acquisition is completed.
        Discussions are ongoing. Mr Rubinstein was elected to the Board of Directors
        of
        the company at the stockholders annual meeting held June 18, 2005.
 
 Of
        the $19,829 shown on the Balance Sheet as Accounts Payable-Trade, $10,000
        is
        compensable in stock of the corporation valued @ $1.00 per share based upon
        a
        3rd quarter 2004 agreement .
 
 There
        have been no other material or significant events subsequent to the issuance
        of
        the audited year-end 2004 financial statements.
 
 Note
        3. Stock Options Plans
 
 Directors
        and consultants have been granted options to purchase common shares The granting
        of options is administered by the board of directors with grant and vesting
 provisions,
        term and exercise price subject to the discretion of the board. The following table
        summarizes information about stock options outstanding at June 30, 2005
  
 Grant
                  Date
              Exercise
                  Price
              Options
                  Outstanding
              Options
                  Exercisable2001-2002
              $0.80
              
              328,900
              
              328,9002002
              
              $1.00
              
              60,500
              
              60,5002003
              
              $1.00
              
              179,200
              
              179,2002004
              
              $1.00
              
              146,000
              
              146,0002005
              
              $1.00
              
              74,500
              
              74,5002005
              
              $2.00
              
              37,875
              
              47,8752005
              
              $3.00
              
              75,000
              
              75,000
 
 According
        to SFAS 123, options granted to nonemployees are accounted for based on the
        fair
        value of the goods or services received or the fair value of the equity
        instrument issued, whichever can be more reliably measured.
 
 As
        the
        value of services rendered by related parties is a matter of conjecture,
        the
        fair value of the options granted is the more reliable measure. The exercise
        price of the
   F
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 ***Table
            of Contents***
   options
        was the market price of the shares at the grant date, thus giving the options
        no
        value and no expense has been recorded.
 
 Note
        4
        Net Loss per Common Share
 
 The
        following potential common shares should be excluded from any calculation
        of
        diluted net loss per share for the periods presented because the effect would
        have been antidilutive:
 
 YTD
                  6/30/05
              Y/E
                  12/31/04Shares
                  issuable under stock options
              898,075
              
              710,700Shares
                  issuable pursuant to warrants
              250,000
              
              288,500
 
 The
        weighted average exercise price of stock options was $1.081 and $0.909 at
        June
        30, 2005 and December 31, 2004, respectively.






F
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**Item
        2.     Plan of
        Operation**
 
 **Forward-Looking
        Statements**
  Historical
        results and trends should not be taken as indicative of future operations.
        Management’s statements contained in this report that are not historical facts
        are forward-looking statements within the meaning of Section 27A of
        the
        Securities Act of 1933, as amended, and Section 21E of the Securities and
        Exchange Act of 1934 (the “Exchange Act”), as amended. Actual results may differ
        materially from those included in the forward-looking statements. The Company
        intends such forward-looking statements to be covered by the safe-harbor
        provisions for forward-looking statements contained in the Private Securities
        Litigation Reform Act of 1995, and is including this statement for purposes
        of
        complying with those safe-harbor provisions. Forward-looking statements,
        which
        are based on certain assumptions and describe future plans, strategies and
        expectations of the Company, are generally identifiable by use of the
        words “believe,”“expect,”“intend,”“anticipate,”“estimate,”“project,”“prospects,”
        or similar expressions. The Company’s ability to predict results or the actual
        effect of future plans or strategies is inherently uncertain. Factors which
        could have a material adverse affect on the operations and future prospects
        of
        the Company on a consolidated basis include, but are not limited to: changes
        in
        economic conditions, legislative/regulatory changes, availability of capital,
        interest rates, competition, and generally accepted accounting principles.
        These
        risks and uncertainties should be considered in evaluating forward-looking
        statements and undue reliance should not be placed on such statements. Further
        information concerning the Company and its business, including additional
        factors that could materially affect the Company’s financial results, is
        included herein and in the Company’s other filings with the SEC.
 
 **Plan
        of Operation**
 
 Our
        business model relies on the capability of giving our customers near real-time
        measurement and trend analysis of the media sentiment about the public companies
        they may wish to track. We believe that our customers are interested in media
        sentiment because they may believe that media sentiment either reflects public
        sentiment, drives public sentiment, or both, and that public sentiment affects
        the economy and particular companies. We created our research product, Media
        SentimentTM, by using our computer systems to search the Internet for publicly
        available media reports about publicly traded companies. We use a proprietary
        Internet search engine technology that is focused on searching strictly news
        and
        publicly traded corporate websites. Our computer systems analyze the news
        reports published on the Internet using our proprietary software to measure
        the
        sentiment. Our systems measure sentiment by searching each media report for
        certain key words and phrases that we have previously identified both as
        significant to determining sentiment and as indicative of either positive
        or
        negative sentiment. By quantifying the number of words or phrases in a media
        report that indicate positive or negative sentiment, we then classify each
        report as a whole as positive, negative or neutral. Next we total the number
        of
        each of the positive, negative and neutral reports and then calculate the
        percentage each category represents of the overall media coverage for the
        requested period of time. The results are then displayed graphically for
        the
        benefit of our customers on our password protected website. Our computers
        have
        been collecting and analyzing media reports since June of 2002, which allows
        us
        to present both historical and current information so that our customers
        can
        also observe any trends. Our system further allows our customers to access
        the
        source media reports and abstracts of the source reports, also prepared by
        our
        software, should they wish to review any of the media reports that underlie
        our
        graphs.
  4
 ***Table
            of Contents***
 
 For
        the
        next twelve months, we plan to implement the first and second phases of our
        marketing plan and make efforts to continually improve our technology systems
        and product. The execution of our business plan in the next twelve months
        is
        contingent upon us obtaining additional financing through another debt or
        equity
        financing arrangement or through increased sales. If we are unable to obtain
        additional financing, the implementation of our business plan will be impaired.
 
 Marketing
        Plan
 
 We
        have
        recently released our new website www.MediaSentiment.com and have
        begun the marketing and sales programs.
 
 We
        are in
        the process of implementing the following actions as a part of the first
        phase
        of our market plan:
 
 ·
              Purchasing
                  keyword advertising from online providers such as Google, Yahoo
                  and others
                  who offer such online services.
 ·
              Seeking
                  affiliate relationships with other websites that would place on
                  their
                  website information about our product and links and/or images to
                  our
                  website.
 ·
              Future
                  purchases of banner and text advertising space on other
                  financial/investment companies’ web
                  sites.
 ·
              Marketing
                  directly via focused e-mail campaigns by purchasing lists that
                  focus on
                  our target customer.
 ·
              Recruitment
                  and use of a sales force of independent sales
                  representatives.
 
 During
        this first phase of our marketing plan, we are targeting on-line investors.
        We
        have started the use of a sales force of independent sales representatives
        which
        we anticipate paying with stock options and/or commissions to generate
        subscription sales. In addition, we plan to generate subscription sales by
        seeking affiliate relationships with other websites that would place on their
        website information about our product with links and/or images to our website.
        We anticipate completing the first phase of our marketing plan during the
        third
        and fourth quarters of 2005.
 
 We
        have
        hired a team of contractors to help us with in-house marketing activities,
        including subscription sales, and the development and production of E-motions,
        a
        newsletter complementing our product line. To house the new marketing team,
        we
        have expanded our leased office space and acquired new equipment.
 During
        the second phase of our marketing plan, we will target corporations with
        an
        online presence, small to medium size online broker companies, financial
        portals, and financial data distributors. We are still in the process of
        developing detailed plans to implement this second phase of marketing.
 
 For
        the
        third phase of our marketing plan, we intend to target major corporations,
        online broker firms, financial portals and financial data distributors. We
        are
        still in the process of developing detailed plans to implement this third
        phase
        of marketing. We do not anticipate being able to begin the third phase for
        at
        least twelve months.
 
 Product
        Development
 
 At
        the
        present time, we have released the first version of the Media SentimentTM product
        which offers the following:
  5
 ***Table
            of Contents***
  
 (1)
        A
        Heads Up: measures media sentiment resulting from the analysis of corporate
        earnings releases. As soon as the releases are posted on the corporate web
        site,
        we capture the media sentiment and give the release a thumbs up or thumbs
        down
        rating.
 
 (2)
        Media
        sentiment trend measures and graphs the analysis for Nasdaq and NYSE public companies
        based on searches of 6,000 plus news web sites, including the news sections
        of
        the individual
        company web sites.
 
 (3)
        The
        tracking of media sentiment indices for three (3) major indices including
        the
        following:
 
 (a)
              Media
                  SentimentTM 100 (based on measurements of the media sentiment of the 100
                  companies which are part of the Nasdaq 100
                  index);
 
 (b)
              Media
                  SentimentTM 30 (based on measurements of the media sentiment of the 30
                  companies that are part of the Dow Jones Industrial Index); and
 
 (c)
              Media
                  SentimentTM 500 (based on measurements of the media sentiment of the 500
                  companies that are part of the S&P 500 index).
 
 (4) E-motions:
        a newsletter, which aims to arm readers with self-knowledge about the emotions
        behind their own investing so that they can improve their financial strategies.
        E-motions addresses financial and media psychology in an entirely new way,
        focusing on the companies featured each week on MediaSentiment.com. Our
        newsletter explores case studies high-lighting any correlation between price
        moves in MediaSentiment TM featured
        stocks, news coverage and media sentiment. Each week's topic strives to provide
        unique insight into the behaviour of other investors and movement in the
        market.
 
 The
        basis
        of the research behind each E-motions newsletter is the thumbs up / thumbs
        down
        recommendations MediaSentiment's A Heads Up service produces for NYSE and
        NASDAQ
        companies. These ratings measure the sentiment company earnings reports create
        in the media.
 
 We
        have
        determined that our first version of Media SentimentTM could be improved to offer
        more powerful search capabilities and cover more news sources and public
        companies. During the next twelve months, we also plan to continually improve
        our technology systems and product. We plan to develop future versions of
        Media
        SentimentTM that will increase the number of news sources to be interrogated by
        our search engine, seek to implement more user friendly tools to enhance
        the
        performance of our product, and improve and further develop the trend graphs.
        We
        also plan, with updated versions of our product, to enable real-time processing
        of increased news sources.
 
 We
        intend
        to increase staffing to handle the additional demands associated with expansion
        of our customer base when needed. We may hire additional employees and/or
        contractors to assist us with sales, customer service, technical support,
        website management and development, as well as administration. If we hire
        additional employees and/or contractors, we will then need to lease additional
        office space to accommodate the associated growth in the number of employees
        and
        computer servers.
 
 Further,
        we plan to continue our current efforts in market research and development.
        As
        part of this process, we will continuously survey the online investor community
        to gain an understanding of investors’ likes and dislikes. Based upon this
        feedback, we will consider the merits of offering additional products and
        services and of proceeding with anticipated expansions. These anticipated
        expansions include moving into new facilities and hiring additional employees
        provided we are successful in increasing our sales of Media SentimentTM.
  6
 ***Table
            of Contents***
  We
        do not
        anticipate purchasing any real property during the next twelve (12) months.
        We
        anticipate purchasing computers, computer servers, and computer software
        for an
        estimated cost of $10,000 to $20,000 over the next twelve months.
 
 **Assets**
 
 Our
        total
        assets as of June 30, 2005 were $367,049, including cash in the amount of
        $63,744.
 
 **Liabilities
        and Stockholders Equity**
 
 Our
        total
        liabilities as of June 30, 2005 were $143,153, consisting of accounts payable
        in
        the amount of $19,829, short term notes payable in the amount of $43,500,
        and
        long term notes payable in the amount of $77,140.
 
 As
        of
        June 30, 2005, Stockholders’ Equity was $223,896.
  **Results
        of Operations**
 
 We
        generated revenue in the amount of $6,895 during the three month period ended
        June 30, 2005, compared to $0 for the three month period ended June 30, 2004.
        Our revenue for the reporting period was generated primarily through the
        receipt
        of rental fees for the use of our mailing lists. Beginning in June 2005,
        we sold
        $2,899 in subscriptions. We report subscription revenue over the life of
        the
        subscription, with $215 reported as revenue earned in the quarter ended June
        30,
        2005, and $2,684 carried on the balance sheet as unearned revenue, for
        recognition in future periods.
  We
        incurred operating expenses in the amount of $52,304 for the three months
        ended
        June 30, 2005, compared to operating expenses of $13,637 for the three months
        ended June 30, 2004. The increase in our operating expenses for the three
        months
        ended June 30, 2005 was primarily attributable to expenditures for the legal
        fees and the payment of executive compensation. During the reporting period,
        we
        incurred $11,650 in legal costs and paid $14,000 in executive compensation.
  **Liquidity
        and Capital Resources**
 
 On
        June
        30, 2005, we had cash in the amount of $63,774, which primarily resulted
        from
        funds raised in our public equity offering that closed in the last quarter
        of
        2004. As of June 30, 2005, we had total current assets in the amount of $63,744
        and total current liabilities of $66,013. As a result, our working capital
        on
        June 30, 2005 was ($2,269).
 
 We
        intend
        to fund operations over the next twelve months through increased subscription
        sales, and debt and/or equity financing arrangements, which may be insufficient
        to fund our capital expenditures, working capital or other cash requirements
        for
        the next twelve months. The completion of our business plan for the next
        12
        months is contingent upon us obtaining additional financing. If we are unable
        to
        obtain additional financing, the full implementation of our business plan
        will
        be impaired.
 
 **Off
        Balance Sheet Arrangements**
 
 As
        of
        June 30, 2005, there were no off balance sheet arrangements .
  7
 ***Table
            of Contents***
  **Item
        3. Controls and Procedures**
 
 We
        carried out an evaluation of the effectiveness of the design and operation
        of
        our disclosure controls and procedures (as defined in Exchange Act Rules
        13a-15(e) and 15d-15(e)) as of June 30, 2005. This evaluation was carried
        out
        under the supervision and with the participation of our Chief Executive Officer,
        Mr. Marian Munz, and Chief Financial Officer, Mr. Robert C. Jaspar. Based
        upon
        that evaluation, our Chief Executive Officer and Chief Financial Officer
        concluded that, as of June 30, 2005, our disclosure controls and procedures
        are
        effective. There have been no significant changes in our internal controls
        over
        financial reporting during the quarter ended June 30, 2005 that have materially
        affected or are reasonably likely to materially affect such controls.
 
 Disclosure
        controls and procedures are controls and other procedures that are designed
        to
        ensure that information required to be disclosed in our reports filed or
        submitted under the Exchange Act are recorded, processed, summarized and
        reported, within the time periods specified in the SEC's rules and forms.
        Disclosure controls and procedures include, without limitation, controls
        and
        procedures designed to ensure that information required to be disclosed in
        our
        reports filed under the Exchange Act is accumulated and communicated to
        management, including our Chief Executive Officer and Chief Financial Officer,
        to allow timely decisions regarding required disclosure.
 
 Limitations
        on the Effectiveness of Internal Controls
 
 Our
        management does not expect that our disclosure controls and procedures or
        our
        internal control over financial reporting will necessarily prevent all fraud
        and
        material error. An internal control system, no matter how well conceived
        and
        operated, can provide only reasonable, not absolute, assurance that the
        objectives of the control system are met. Further, the design of a control
        system must reflect the fact that there are resource constraints, and the
        benefits of controls must be considered relative to their costs. Because
        of the
        inherent limitations in all control systems, no evaluation of controls can
        provide absolute assurance that all control issues and instances of fraud,
        if
        any, within the Company have been detected. These inherent limitations include
        the realities that judgments in decision-making can be faulty, and that
        breakdowns can occur because of simple error or mistake. Additionally, controls
        can be circumvented by the individual acts of some persons, by collusion
        of two
        or more people, or by management override of the internal control. The design
        of
        any system of controls also 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.
        Over time, control may become inadequate because of changes in conditions,
        or
        the degree of compliance with the policies or procedures may deteriorate.
 
 
 
  8
 ***Table
            of Contents***
  **PART
        II - OTHER INFORMATION**
 
 **Item
        1.     Legal
        Proceedings**
 
 We
        are
        not currently a party to any legal proceedings.
 
 **Item
        2.    Unregistered Sales of Equity
        Securities and Use of Proceeds**
 
 During
        the three month period ended June 30, 2005, we have not made any unregistered
        sales of equity securities.
 
 **Item3.     Defaults
        upon Senior
        Securities**
 
 None
 
 **Item
        4.    Submission of Matters to a
        Vote of Security Holders**
 
 During
        the second quarter of the fiscal year ended June 30, 2005 an annual meeting
        of
        shareholders was held on June 18, and matters for consideration by shareholders
        were submitted to our shareholders for a vote through the solicitation of
        proxies.
 
 The
        matters voted upon at the meeting were as follows:
 
 ·
              To
                  elect directors;
 
 ·
              To
                  approve changes in the composition of the compensation program
                  for
                  internal officers of the corporation who served without compensation
                  through October, 2004; and
 
 ·
              To
                  transact such other business as may properly come before the
                  meeting
 
 The
        total
        number of shares outstanding at the record date, May 23, 2005 was 2,756,333
        shares. The number of votes represented at this meeting was 1,332,865 or
        37.5%
        of shares eligible to vote.
 
 All
        of
        the nominees for director recommended by the board of directors were elected
        and
        the results of the voting were as follows:
 
 Name
              Votes
                  for
              Votes
                  Against
              AbstentionsMarian
                  Munz
              1,332,865
              0
              0Robert
                  C. Jaspar
              1,332,865
              0
              0Dave
                  Dunn
              1,332,865
              0
              0David
                  A. Hotchkiss
              1,332,865
              0
              0Seymour
                  Rubenstein
              1,332,865
              0
              0
 
 The
        change in composition of compensation for internal officers who served without
        compensation through October 2004 was approved. The results of the voting
        were
        as follows:
 
 Votes
                  for
              Votes
                  against
              Abstentions1,332,865
              0
              0
 
  9
 ***Table
            of Contents***
  
 **Item
        5.     Other
        Information**
 
 None
 
 **Item
        6.    Exhibits**
 
 **Exhibit
                  Number**
              **Description
                  of Exhibit**31.1
              Certification
                  of Chief Executive Officer pursuant to
                  18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 200231.2
              Certification
                  of Chief Financial Officer pursuant to
                  18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 200232.1
              Certification
                  of Chief Executive Officer and Chief
                  Finanical Officer pursuant to 18 U.S.C. Section 1350, as adopted
                  pursuant
                  to Section 906 of the Sarbanes-Oxley Act of
                  2002
 
 
  10
 ***Table
            of Contents***
  
 **SIGNATURES**
 
 In
        accordance with the requirements of the Securities and Exchange Act of 1934,
        the
        Registrant has duly caused this report to be signed on its behalf by the
        undersigned, thereunto duly authorized.
 
 **CALIFORNIA
                  NEWS TECH**Date:
              August
                  15 , 2005By:/s/  
                  Marian
                  Munz**Marian Munz**
                Title:**Chief
                  Executive Officer**
 
 
   11