UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, DC 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 September 30, 2004





[   ] TRANSITION REPORT PURSUANT TO 13 OR 15( d ) OF THE SECURITIES


EXCHANGE ACT OF 1934





For the transition period from __________ 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)                                                                               (IRS Employer Identification No.)





529 Buchanan St.


San Francisco, California 94102


(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 Section13 or 15(d) of the Exchange Act during the 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes [X] No [ ]





State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:





2,506,333 shares of common stock as of August 16, 2004





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


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**PART I - FINANCIAL INFORMATION**





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





Our general unaudited financial statements included with the Form 10QSB are as follows:





a)     Balance Sheets as of September 30, 2004, and December 31, 2003;


b)     Statements of Operations for the three and nine months ended September 30, 2004, and September 30, 2003;


c)     Statement of Cash Flow-nine months ended September 30, 2004 and 2003;


d)     Notes to Unaudited Financial Statements.




The unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-QSB. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for this interim period are not necessarily indicative of the results that can be expected for the full year.


2




**California News Tech**


**Balance Sheet Prev Year Comparison**


**As of September 30, 2004 (Unaudited)**


****


**Dec 31, 03****Sep 30, 04****ASSETS****Current Assets****Checking/Savings****1000 · Bank of America Checking**

8,525


3,389**1005 · Bank of America - Escrow**

0


100**Total Checking/Savings**

8,525


3,489**Total Current Assets**

8,525


3,489**Fixed Assets****1510 · Equipment & Computers**

9,099


9,099**1750 · Accumulated Depreciation**

(7,637)


(7,637)**Total Fixed Assets**

1,462


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**Total 1800 · Other Assets**

300,599


300,599**Total Other Assets**

300,599


300,599**TOTAL ASSETS**

**310,586**


**305,550****LIABILITIES & EQUITY****Liabilities****Current Liabilities****Accounts Payable****2000 · Accounts Payable-Trade****2020 · Accounts Payable**

38,913


75,363**Total 2000 · Accounts Payable-Trade**

38,913


75,363**Total Accounts Payable**

38,913


75,363**Other Current Liabilities****2500 · Notes Payable**

43,500


53,500**Total Other Current Liabilities**

43,500


53,500**Total Current Liabilities**

82,413


128,863**Long Term Liabilities****2700 · LT Notes Payable**

77,140


77,140**Total Long Term Liabilities**

77,140


77,140**Total Liabilities**

159,553


206,003**Equity****3000 · Capital Stock**

7,519


7,519**3030 · Additional Paid-In Capital**

889,606


889,606**3040 · Stock Registration Costs**

(155,350
)

(155,350)**3100 · Retained Earnings**

(456,679
)

(590,743)**Net Income**

(134,064
)

(51,484)**Total Equity**

151,033


99,548**TOTAL LIABILITIES & EQUITY**

**310,586**


**305,551**




F-1  **California News Tech**


**Profit & Loss w/ Prior Year Comparison**
 **January through September 2004 (Unaudited)**


**Jan - Sep 04****Jul - Sep 04****Jan - Sep 03****Jul - Sep 03****Ordinary Income/Expense****Income****4000 · Revenue**

0


0


314


90**Total Income**

0


0


314


90**Gross Profit**

0


0


314


90**Expense****4500 · Website Development Costs**

5,450


2,200


5,990


800**4600 · Advertising**

2,564


2,564


4,546


0**4620 · Commission Expense**

0


0


80


80**5050 · Postage and Delivery**

237


196


54


28**5060 · Office Expense**

0


0


140


0**5070 · Office Supplies**

2,158


804


1,859


64**5080 · Telephone**

2,428


1,357


2,582


762**5110 · Legal & Professional Fees**

34,298


17,888


29,257


24,257**5117 · Professional /Dues**

95


0


0


0**5120 · Consulting Fees**

0


0


27,000


9,000**5130 · Interest Expense**

414


204


551


325**5140 · Licenses and Permits**

0


0


179


0**5150 · Travel & Ent**

277


257


273


0**5158 · Business Meeting Expenses**

513


513


344


214**5160 · Travel**

871


798


2,022


0**5170 · Company Automobile Expense**

306


0


0


0**5180 · Repairs**

100


0


0


0**5200 · Bank Service Charges**

685


245


385


100**5310 · Prof. Dues and Subscriptions**

33


33


0


0**7010 · State Taxes (FTB)**

1,055


0


1,005


0**Total Expense**

51,484


27,059


76,267


35,630**Net Ordinary Income**

(51,484
)

(27,059
)

(75,953
)

(35,540)**Net Income**

**(51,484**
**)**

**(27,059**
**)**

**(75,953**
**)**

**(35,540)**


F-2  **California News Tech**


**Statement of Cash Flows w/Prior year Comparions**
 **As of September 30, 2004 (Unaudited)**
 ****
**Jan - Sep 03****Jan - Sep 04****OPERATING ACTIVITIES****Net Income**

(75,953)


(51,484)**Adjustments to reconcile Net Income****to net cash provided by operations:****1210 · Accounts Receivable - Trade**

32,028


0**1245 · Allowance for Doubtful Accounts**

(32,028)


0**2000 · Accounts Payable-Trade:2020 · Accounts Payable**

9,812


36,450**2500 · Notes Payable**

17,000


10,000**Net cash provided by Operating Activities**

(49,141)


(5,034)**FINANCING ACTIVITIES****3000 · Capital Stock**

150


0**3030 · Additional Paid-In Capital**

9,850


0**Net cash provided by Financing Activities**

10,000


0**Net cash increase for period**

(39,141)


(5,034)**Cash at beginning of period**

48,874


8,524**Cash at end of period**

**9,733**


**3,490**



F-3

**California News Tech**
****Notes to Financial Statements****
****As of September 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 Exercisable

























Note 4. Net Loss per Common Share







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













F-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 first quarter 2005








6
























Results of Operations for the Period Ending September 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. Unregistered Sales of Equity Securities and Use of Proceeds









Item 3. Defaults upon Senior Securities








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









Item 5. Other Information








Item 6. Exhibits





|**Exhibit Number**
**** | **Description**                                                                                                                                                              
|----------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1                     | Articles of Incorporation 1                                                                                                                                                  
|3.2                     | Articles of Incorporation as Amended 1                                                                                                                                       
|3.3                     | Bylaws 1                                                                                                                                                                     
|31.1                    | 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 2002  
|31.2                    | 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 2002  
|32.                     | 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




1


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SIGNATURES



















/s/ Marian Munz












/s/ Robert C. Jaspar









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