June 30, 2004
 
        000-50762
  
 CALIFORNIA NEWS TECH
    NEVADA 88-0417389
  
  San Francisco, California 94102
  
 415-861-3421
  
   
 
   
  
 2,506,333 shares of common stock   as of August 16, 2004
 
   1
 
 PART I - FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 
       
 
   2


California News Tech Balance Sheet w/ Prior Year Comparison


As of June 30, 2004 (Unaudited)                                                                                                                                                                  Accrual Basis













Jun 30, 04


Dec 31, 03ASSETSCurrent AssetsChecking/Savings1000 · Bank of America Checking

3,688


8,5251005 · Bank of America - Escrow

100


0Total Checking/Savings

3,788


8,525Total Current Assets

3,788


8,525Fixed Assets1510 · Equipment & Computers

9,099


9,0991750 · Accumulated Depreciation

(7,637
)

(7,637)Total Fixed Assets

1,462


1,462Other Assets1800 · Other Assets1810 · Investment-Stra. Inf. Tec-USA

55,000


55,0001820 · Investment-Product Development

213,739


213,7391830 · Website Development

31,860


31,860Total 1800 · Other Assets

300,599


300,599Total Other Assets

300,599


300,599TOTAL ASSETS

305,850


310,586LIABILITIES & EQUITYLiabilitiesCurrent LiabilitiesAccounts Payable2000 · Accounts Payable-Trade2020 · Accounts Payable

53,562


38,913Total 2000 · Accounts Payable-Trade

53,562


38,913Total Accounts Payable

53,562


38,913Other Current Liabilities2500 · Notes Payable

48,500


43,500Total Other Current Liabilities

48,500


43,500Total Current Liabilities

102,062


82,413Long Term Liabilities2700 · LT Notes Payable

77,140


77,140Total Long Term Liabilities

77,140


77,140Total Liabilities

179,202


159,553Equity3000 · Capital Stock

7,519


7,5193030 · Additional Paid-In Capital

889,606


889,6063040 · Stock Registration Costs

(155,350
)

(155,350)3100 · Retained Earnings

(590,743
)

(456,679)Net Income

(24,385
)

(134,064)Total Equity

126,648


151,033TOTAL LIABILITIES & EQUITY

305,850


310,586








1


California News Tech


Profit & Loss w/ Prior Year Comparison


January through June 2004 (Unaudited)                                                                                                                                                     Accrual Basis







Jan - Jun 04               Apr - Jun 04              Jan - Jun 03             Apr - Jun 03Ordinary Income/ExpenseIncome4000 · Revenue

0


0


224


224Total Income

0


0


224


224Gross Profit

0


0


224


224Expense4500 · Website Development Costs

3,250


3,250


5,190


1,1504600 · Advertising

0


0


4,546


4,5465050 · Postage and Delivery

41


0


26


05060 · Office Expense

0


0


140


1345070 · Office Supplies

1,353


1,289


1,795


1,3685080 · Telephone

1,030


308


1,820


1,0165110 · Legal & Professional Fees

16,411


8,325


5,000


05117 · Professional /Dues

95


0


0


9,0005120 · Consulting Fees

0


105


18,000


1215130 · Interest Expense

210


0


226


05140 · Licenses and Permits

0


0


179


1795150 · Travel & Ent

20


0


273


2735158 · Business Meeting Expenses

0


0


130


05160 · Travel

73


0


2,022


1,9555170 · Company Automobile Expense

306


0


0


05180 · Repairs

101


0


0


05200 · Bank Service Charges

440


320


285


907010 · State Taxes (FTB)

1,055


0


1,005


0Total Expense

24,385


13,596


40,637


19,833Net Ordinary Income

(24,385
)

(13,596
)

(40,412
)

(19,608)Net Income

(24,385
)

(13,596
)

(40,412
)

(19,608)








2
California News Tech


Statement of Cash Flows w/Prior Year Comparison


January through June 2004 (Unaudited)









Jan - Jun 04              Jan - Jun 03OPERATING ACTIVITIESNet Income

(24,385
)

(40,412)Adjustments to reconcile Net Incometo net cash provided by operations:2000 · Accounts Payable-Trade:2020 · Accounts Payable

14,649


(6,165)2500 · Notes Payable

5,000


8,000Net cash provided by Operating Activities

(4,736
)

(38,577)FINANCING ACTIVITIES3000 · Capital Stock

0


1503030 · Additional Paid-In Capital

0


9,850Net cash provided by Financing Activities

0


10,000Net cash increase for period

(4,736
)

(28,577)Cash at beginning of period

8,524


48,874Cash at end of period

3,788


20,297








3





California News Tech


Notes to Financial Statements


As of June 30, 2004 (Unaudited)






Note 1.             Going Concern Uncertainty and Liquidity




Note 2.             Material Events
  Note 3.             Stock Options Plans




Grant Date
Exercise Price
Options Outstanding
Options Exercisable2001
$0.20
0
02001-2002
$0.80
328,900
328,9002002
$1.00
60,500
60,5002003
$1.00
179,200
179,2002004
$1.00
116,000
116,000








Note 4.             Net Loss per Common Share










YTD 6/30/04                                                             Y/E 12/31/03


Shares issuable under stock options
684,600
568,600Shares issuable pursuant to warrants
0
0









4




Item 2. Managements Discussion and Analysis or Plan of Operation.





Overview









Forward-Looking Statements









Product and Technology









3




































4

















Plan of Operation










Plan of Operation for Marketing Plan:




















5





Plan of Operations for Product Development















































- Position our company as a finely focused informational service provider, and

- Commence marketing of DNAshare by the end of the fourth quarter 2004













6







































Results of Operations for the Period Ending June 30, 2004















Liquidity and Capital Resources














7












Item 3. Controls and Procedures.















Limitations on the Effectiveness of Internal Controls









8




PART II  OTHER INFORMATION





Item 1. Legal Proceedings








Item 2. Changes in Securities









Item 3. Defaults upon Senior Securities








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








Item 5. Other Information








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









Exhibit Number
Description3.1
Articles of Incorporation 13.2
Articles of Incorporation as Amended 13.3
Bylaws 131.1
Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant
to Section 302 of the Sarbanes-Oxley Act of 200231.2
Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant
to Section 302 of the Sarbanes-Oxley Act of 200232.
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002





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SIGNATURES



















/s/ Marian Munz












/s/ Robert C. Jaspar









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