UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   Form 10-QSB

--------------------------------------------------------------------------------

(Mark one)

   X     Quarterly  Report Under Section 13 or 15(d) of The Securities  Exchange
-------  Act of 1934


                  For the quarterly period ended March 31, 2005

         Transition Report Under Section 13 or 15(d) of The Securities  Exchange
         Act of 1934


     For the transition period from ______________ to _____________

--------------------------------------------------------------------------------

                        Commission File Number: 000-49649
                                                ---------

                             Donar Enterprises, Inc.
        (Exact name of small business issuer as specified in its charter)

       Delaware                                                23-3083371
------------------------                                ------------------------
(State of incorporation)                                (IRS Employer ID Number)

                      12890 Hilltop Road, Argyle, TX 76226
                      ------------------------------------
                    (Address of principal executive offices)

                                 (972) 233-0300
                                 --------------
                           (Issuer's telephone number)


--------------------------------------------------------------------------------

Check  whether the issuer (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 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: May 4, 2005: 928,964

Transitional Small Business Disclosure Format (check one): YES    NO X
                                                              ---   ---

<PAGE>

                             Donar Enterprises, Inc.

                Form 10-QSB for the Quarter ended March 31, 2005

                                Table of Contents


                                                                            Page
                                                                            ----
Part I - Financial Information

   Item 1  Financial Statements                                               3

   Item 2  Management's Discussion and Analysis or Plan of Operation         12

   Item 3  Controls and Procedures                                           14


Part II - Other Information

   Item 1  Legal Proceedings                                                 15

   Item 2  Unregistered Sales of Equity Securities and Use of Proceeds       15

   Item 3  Defaults Upon Senior Securities                                   15

   Item 4  Submission of Matters to a Vote of Security Holders               15

   Item 5  Other Information                                                 15

   Item 6  Exhibits                                                          15


Signatures                                                                   15








                                                                               2

<PAGE>

Part 1
Item 1 - Financial Statements

                             Donar Enterprises, Inc.
                          (a development stage company)
                                 Balance Sheets
                             March 31, 2005 and 2004

                                   (Unaudited)

                                                         March 31,    March 31,
                                                           2005         2004
                                                         ---------    ---------

                                     ASSETS
Current Assets
   Cash on hand and in bank                              $    --      $  55,009
   Accounts receivable - trade,
     net of allowance for doubtful accounts of $-0-           --          2,385
                                                         ---------    ---------

     Total current assets                                     --         57,394
                                                         ---------    ---------

Total Assets                                             $    --      $  57,394
                                                         =========    =========


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities
   Accounts payable - trade                              $    --      $   1,350
   Advances from officer/shareholder                        23,268        7,309
   Accrued officer compensation                               --         85,000
                                                         ---------    ---------
     Total current liabilities                              23,268       93,659
                                                         ---------    ---------


Commitments and contingencies

Stockholders' Equity (Deficit)
   Preferred stock - $0.001 par value
     20,000,000 shares authorized
     None issued and outstanding                              --           --
   Common stock - $0.001 par value
     100,000,000 shares authorized
     928,964 and 570,600 shares
       issued and outstanding, respectively                    929          571
   Additional paid-in capital                              477,923      371,602
   Deficit accumulated during the development stage       (502,120)    (408,438)
                                                         ---------    ---------

     Total Stockholders' Equity (Deficit)                  (23,268)     (36,265)
                                                         ---------    ---------

Total Liabilities and Stockholders' Equity               $    --      $  57,394
                                                         =========    =========






   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
   The accompanying notes are an integral part of these financial statements.
                                                                               3

<PAGE>
<TABLE>
<CAPTION>

                             Donar Enterprises, Inc.
                          (a development stage company)
                 Statements of Operations and Comprehensive Loss
                 Three months ended March 31, 2005 and 2004 and
       Period from May 25, 2001 (date of inception) through March 31, 2005

                                   (Unaudited)

                                                                                           Period from
                                                                                           May 25, 2001
                                             Three months           Three months       (date of inception)
                                                 ended                  ended                through
                                            March 31, 2005         March 31, 2004         March 31, 2005
                                         -------------------    -------------------    -------------------
<S>                                      <C>                    <C>                    <C>

Revenues                                 $              --      $             2,385    $            24,778
                                         -------------------    -------------------    -------------------

Operating expenses
   General and administrative costs                   23,268                 37,697                527,300
                                         -------------------    -------------------    -------------------

Loss from Operations                                 (23,268)               (35,312)              (502,522)

Other Income (Expense)
   Interest income                                      --                       48                    402
                                         -------------------    -------------------    -------------------

Loss before provision for income taxes               (23,268)               (35,264)              (502,120)

Provision for Income Taxes                              --                     --                     --
                                         -------------------    -------------------    -------------------

Net Loss                                             (23,268)               (35,264)              (502,120)

Other comprehensive income                              --                     --                     --
                                         -------------------    -------------------    -------------------

Comprehensive Loss                       $           (23,268)   $           (35,264)   $          (502,120)
                                         ===================    ===================    ===================


Net loss per weighted-average share
   of common stock outstanding,
   computed on Net Loss
   - basic and fully diluted             $             (0.03)   $             (0.05)   $             (0.79)
                                         ===================    ===================    ===================

Weighted-average number of shares
   of common stock outstanding -
   basic and fully diluted                           928,964                722,960                639,056
                                         ===================    ===================    ===================
</TABLE>








   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
   The accompanying notes are an integral part of these financial statements.
                                                                               4

<PAGE>
<TABLE>
<CAPTION>

                             Donar Enterprises, Inc.
                          (a development stage company)
                            Statements of Cash Flows
                 Three months ended March 31, 2005 and 2004 and
       Period from May 25, 2001 (date of inception) through March 31, 2005

                                   (Unaudited)

                                                                                                  Period from
                                                                                                  May 25, 2001
                                                     Three months           Three months       (date of inception)
                                                         ended                  ended                through
                                                    March 31, 2005         March 31, 2004         March 31, 2005
                                                 -------------------    -------------------    -------------------
<S>                                              <C>                    <C>                    <C>
Cash Flows from Operating Activities
   Net loss for the period                       $           (23,268)   $           (35,264)   $          (502,120)
   Adjustments to reconcile net loss
     to net cash provided by
     operating activities
       Depreciation and amortization                            --                     --                     --
       Common stock issued for
         Services                                               --                   16,040                334,373
         Salaries, wages and bonuses                            --                     --                   86,350
         Operating expenses                                     --                     --                      297
       (Increase) Decrease in
         Accounts receivable - trade                            --                   (1,508)                  --
       Increase (Decrease) in
         Accounts payable                                       --                     --                     --
         Other accrued liabilities                              --                     --                     --
         Accrued officers compensation                          --                   21,250                   --
                                                 -------------------    -------------------    -------------------

   Net cash used in operating activities                     (23,268)                   518                (81,100)
                                                 -------------------    -------------------    -------------------


Cash Flows from Investing Activities                            --                     --                     --
                                                 -------------------    -------------------    -------------------


Cash Flows from Financing Activities
   Proceeds from sale of common stock                           --                     --                   37,800
   Cash contributed to support operations                       --                     --                   13,020
   Advances from shareholder/officer                          23,268                    297                 30,280
                                                 -------------------    -------------------    -------------------

     Net cash provided by financing activities                23,268                    297                 81,100
                                                 -------------------    -------------------    -------------------

Increase in Cash                                                --                      815                   --

Cash at beginning of period                                     --                   54,194                   --
                                                 -------------------    -------------------    -------------------

Cash at end of period                            $              --      $            55,009    $              --
                                                 ===================    ===================    ===================

Supplemental Disclosure of
   Interest and Income Taxes Paid
     Interest paid during the period             $              --      $              --      $              --
                                                 ===================    ===================    ===================
     Income taxes paid during the period         $              --      $              --      $              --
                                                 ===================    ===================    ===================
</TABLE>







   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
   The accompanying notes are an integral part of these financial statements.
                                                                               5

<PAGE>

                             Donar Enterprises, Inc.
                          (a development stage company)

                          Notes to Financial Statements


NOTE A - Organization and Description of Business

Donar Enterprises, Inc. (Company) was incorporated on May 25, 2001 in accordance
with the Laws of the State of Delaware.

The Company's  initial business plan was to provide the conversion and filing of
various documents prepared in accordance with either the Securities Act of 1933,
as amended,  or the  Securities  Exchange Act of 1934, as amended,  for small to
mid-sized  public  companies with the U.S.  Securities  and Exchange  Commission
(SEC)  electronically  through  EDGAR,  the  SEC's  Electronic  Data  Gathering,
Analysis,  and Retrieval system.  The Company has never been affiliated with the
SEC in any manner.

On February 27, 2002,  the  Company's  Registration  Statement on Form SB-2 (SEC
File No. 333-68702),  registering  2,000,000 pre-reverse split shares to be sold
at a price of $0.05 per share, was declared effective. Between July and December
2002, the Company sold an aggregate  656,000  pre-reverse  split shares of stock
under this Registration Statement.

The Company has been in the  development  stage since its formation and has been
unable to become profitable within any segment of its initial business plan.

In June 2004 and December 2004,  respectively,  the Company experienced separate
changes in  control  and  abandoned  its  business  plan  related  to  providing
electronic  filing services for small to mid-sized  public companies and began a
search to seek a suitable reverse  acquisition  candidate  through  acquisition,
merger or other suitable business combination method.


Note B - Preparation of Financial Statements

The  Company  follows  the  accrual  basis  of  accounting  in  accordance  with
accounting principles generally accepted in the United States of America and has
a year-end of December 31.

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  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.

Management further acknowledges that it is solely responsible for adopting sound
accounting  practices,   establishing  and  maintaining  a  system  of  internal
accounting  control and preventing and detecting  fraud. The Company's system of
internal  accounting  control is designed to assure,  among other items, that 1)
recorded  transactions  are valid; 2) valid  transactions  are recorded;  and 3)
transactions  are  recorded in the proper  period in a timely  manner to produce
financial  statements which present fairly the financial  condition,  results of
operations  and cash  flows of the  Company  for the  respective  periods  being
presented


Note C - Going Concern Uncertainty

Donar Enterprises,  Inc.  (Company) was originally  incorporated in 2001 for the
purpose of providing the conversion and filing of various documents  prepared in
accordance with either the Securities Act of 1933, as amended, or the Securities
Exchange Act of 1934, as amended,  for small to mid-sized  public companies with
the SEC  electronically  through EDGAR,  the SEC's  Electronic  Data  Gathering,
Analysis,  and Retrieval system.  The Company has never been affiliated with the
SEC in any manner.


                                                                               6

<PAGE>

                             Donar Enterprises, Inc.
                          (a development stage company)

                    Notes to Financial Statements - Continued


NOTE C - Going Concern Uncertainty

The Company's current principal  business activity is to seek a suitable reverse
acquisition  candidate  through  acquisition,  merger or other suitable business
combination method.

The Company has been in the  development  stage since its formation and has been
unable to become profitable within any segment of its initial business plan.

The  Company's  continued  existence is  dependent  upon its ability to generate
sufficient cash flows from operations to support its daily operations as well as
provide sufficient resources to retire existing liabilities and obligations on a
timely basis.

The Company  anticipates  future sales of equity securities to facilitate either
the  consummation  of a business  combination  transaction  or to raise  working
capital to support and preserve the integrity of the corporate entity.  However,
there is no assurance that the Company will be able to obtain additional funding
through the sales of additional  equity  securities  or, that such  funding,  if
available, will be obtained on terms favorable to or affordable by the Company.

If no additional  operating  capital is received  during the next twelve months,
the  Company  will be  forced  to rely on  existing  cash in the  bank  and upon
additional  funds  loaned  by  management  and/or  significant  stockholders  to
preserve the integrity of the corporate  entity at this time. In the event,  the
Company  is  unable to  acquire  advances  from  management  and/or  significant
stockholders, the Company's ongoing operations would be negatively impacted.

It  is  the  intent  of  management  and  significant  stockholders  to  provide
sufficient  working  capital  necessary to support and preserve the integrity of
the corporate entity.  However, no formal commitments or arrangements to advance
or loan funds to the Company or repay any such advances or loans exist. There is
no legal obligation for either management or significant stockholders to provide
additional future funding.

While the Company is of the opinion that good faith  estimates of the  Company's
ability to secure additional  capital in the future to reach its goals have been
made, there is no guarantee that the Company will receive  sufficient funding to
sustain operations or implement any future business plan steps.


Note D - Summary of Significant Accounting Policies

1.   Cash and cash equivalents
     -------------------------

     For  Statement of Cash Flows  purposes,  the Company  considers all cash on
     hand  and  in  banks,  certificates  of  deposit  and  other  highly-liquid
     investments with maturities of three months or less, when purchased,  to be
     cash and cash equivalents.

2.   Income Taxes
     ------------

     The Company uses the asset and liability  method of  accounting  for income
     taxes. At March 31, 2005 and 2004, respectively, the deferred tax asset and
     deferred tax liability accounts, as recorded when material to the financial
     statements,  are entirely the result of  temporary  differences.  Temporary
     differences   represent  differences  in  the  recognition  of  assets  and
     liabilities for tax and financial reporting purposes, primarily accumulated
     depreciation and amortization, allowance for doubtful accounts and vacation
     accruals.

                                                                               7

<PAGE>

                             Donar Enterprises, Inc.
                          (a development stage company)

                    Notes to Financial Statements - Continued


Note D - Summary of Significant Accounting Policies - Continued

2.   Income Taxes - continued
     ------------

     As of March 31,  2005 and 2004,  the  deferred  tax  asset  related  to the
     Company's net operating loss  carryforward  is fully  reserved.  Due to the
     provisions  of Internal  Revenue  Code Section 338, the Company may have no
     net operating loss carryforwards available to offset financial statement or
     tax  return  taxable  income in future  periods  as a result of a change in
     control   involving  50  percentage  points  or  more  of  the  issued  and
     outstanding securities of the Company.

3.   Earnings (loss) per share
     -------------------------

     Basic  earnings  (loss) per share is computed  by  dividing  the net income
     (loss) available to common shareholders by the  weighted-average  number of
     common shares  outstanding  during the respective  period  presented in our
     accompanying financial statements.

     Fully diluted earnings (loss) per share is computed similar to basic income
     (loss) per share  except that the  denominator  is increased to include the
     number of common  stock  equivalents  (primarily  outstanding  options  and
     warrants).

     Common  stock  equivalents  represent  the  dilutive  effect of the assumed
     exercise of the outstanding stock options and warrants,  using the treasury
     stock method, at either the beginning of the respective period presented or
     the date of  issuance,  whichever  is later,  and only if the common  stock
     equivalents  are  considered  dilutive  based upon the Company's net income
     (loss) position at the calculation date.

     At March 31,  2005,  and  subsequent  thereto,  the  Company's  issued  and
     outstanding   warrants,   options  and  convertible   debt  are  considered
     antidilutive due to the Company's net operating loss position. At March 31,
     2004,  the  Company's  had  no  outstanding  stock  warrants,   options  or
     convertible  securities  which could be considered as dilutive for purposes
     of the loss per share calculation.


Note E - Fair Value of Financial Instruments

The carrying amount of cash,  accounts  receivable,  accounts  payable and notes
payable, as applicable,  approximates fair value due to the short term nature of
these items  and/or the current  interest  rates  payable in relation to current
market conditions.

Interest  rate risk is the risk  that the  Company's  earnings  are  subject  to
fluctuations  in interest  rates on either  investments  or on debt and is fully
dependent  upon  the  volatility  of  these  rates.  The  Company  does  not use
derivative instruments to moderate its exposure to interest rate risk, if any.

Financial  risk  is  the  risk  that  the  Company's  earnings  are  subject  to
fluctuations in interest rates or foreign exchange rates and are fully dependent
upon the  volatility  of  these  rates.  The  company  does  not use  derivative
instruments to moderate its exposure to financial risk, if any.


Note F - Loans from Shareholder/Officer

As of December  31,  2003,  the Company and it's  then-controlling  shareholder,
William  Tay,  agreed that  additional  funds may be  necessary in the future to
support  the  corporate  entity.  As  of  April  22,  2004,  Mr.  Tay  was  owed
approximately$7,012,  which was repaid on April 22, 2004 as a  component  of the
issuance of an aggregate  1,846,180  shares of restricted,  unregistered  common
stock.


                                                                               8

<PAGE>

                             Donar Enterprises, Inc.
                          (a development stage company)

                    Notes to Financial Statements - Continued


Note F - Advances from Shareholder - Continued

During the first quarter of 2005, the Company's controlling shareholder, Timothy
P. Halter,  advanced the Company approximately $23,000 to support operations and
provide working capital. These advances are due upon demand and are non-interest
bearing.


Note G - Income Taxes

The  components  of income tax  (benefit)  expense  for each of the three  month
periods ended March 31, 2005 and 2004 and for the period from May 25, 2001 (date
of inception) through March 31, 2005:

                                                               Period from
                                                                 May 25, 2001
                     Three months          Three months      (date of inception)
                         ended                 ended                through
                    March 31, 2005        March 31, 2004        March 31, 2005
                 -------------------   -------------------   -------------------
  Federal:
    Current      $              --     $              --     $              --
    Deferred                    --                    --                    --
                 -------------------   -------------------   -------------------
                                --                    --                    --
                 -------------------   -------------------   -------------------
  State:
    Current                     --                    --                    --
    Deferred                    --                    --                    --
                 -------------------   -------------------   -------------------
                                --                    --                    --
                 -------------------   -------------------   -------------------

Total            $              --     $              --     $              --
                 ===================   ===================   ===================

As a result of the July 2004 and  December  2004  changes in control the Company
has a nominal net  operating  loss  carryforward  for income tax  purposes.  The
amount and availability of any net operating loss  carryforwards  may be subject
to  limitations  set forth by the  Internal  Revenue  Code.  Factors such as the
number of shares ultimately issued within a three year look-back period; whether
there is a deemed  more  than 50  percent  change  in  control;  the  applicable
long-term  tax  exempt  bond  rate;  continuity  of  historical  business;   and
subsequent  income of the  Company  all enter  into the  annual  computation  of
allowable annual utilization of the carryforwards.

The Company's  income tax expense  (benefit) for each of the three month periods
ended  March 31,  2005 and 2004 and for the  period  from May 25,  2001 (date of
inception) through March 31, 2005:
<TABLE>
<CAPTION>

                                                                                                       Period from
                                                                                                        May 25, 2001
                                                          Three months           Three months       (date of inception)
                                                              ended                  ended                through
                                                         March 31, 2005         March 31, 2004         March 31, 2005
                                                      -------------------    -------------------    -------------------
<S>                                                   <C>                    <C>                    <C>
Statutory rate applied to
   income before income taxes                         $            (7,900)   $           (12,000)   $          (171,000)
Increase (decrease) in income taxes resulting from:
     State income taxes                                              --                     --                     --
     Other, including reserve for deferred tax
     asset and application of net operating loss
     carryforward                                                   7,900                 12,000                171,000
                                                      -------------------    -------------------    -------------------

         Income tax expense                           $              --      $              --      $              --
                                                      ===================    ===================    ===================
</TABLE>





                                                                               9

<PAGE>

                             Donar Enterprises, Inc.
                          (a development stage company)

                    Notes to Financial Statements - Continued


Note G - Income Taxes  - Continued

Temporary  differences,  consisting primarily of statutory deferrals of expenses
for organizational costs and statutory  differences in the depreciable lives for
property and equipment, between the financial statement carrying amounts and tax
basis of assets and liabilities give rise to deferred tax assets and liabilities
as of March 31, 2005 and 2004, respectively:

                                                        March 31,    March 31,
                                                           2005         2004
                                                        ---------    ---------
     Deferred tax assets
       Net operating loss carryforwards                 $   7,900    $ 139,000
       Less valuation allowance                            (7,900)    (139,000)
                                                        ---------    ---------

       Net Deferred Tax Asset                           $    --      $    --
                                                        =========    =========

During  each of the three  month  periods  ended  March 31,  2005 and 2004,  the
reserve  for  the  deferred   current  tax  asset   increased   (decreased)   by
approximately $7,900 and $12,000, respectively.


Note H - Common Stock Transactions

On  February  21,  2005,  by written  consent in lieu of  meeting,  stockholders
representing  78.9% of the issued  and  outstanding  shares of our common  stock
approved a  recommendation  of our Board of  Directors to effect a one share for
ten shares  reverse stock split of our common stock,  par value $.001 per share,
with all fractional  shares rounded down to the nearest whole share. The reverse
split became  effective on April 15, 2005. As a result of the reverse split, the
total number of issued and outstanding shares of our common stock decreased from
9,289,647  shares  to  928,964  shares,  after  giving  effect to  rounding  for
fractional shares. In the reverse split calculation,  all fractional shares were
rounded down to the nearest whole share.  Holders of less than ten shares, prior
to the reverse split, shall receive $0.30 per share as compensation.  The effect
of this action is  reflected in the  Company's  financial  statements  as of the
first day of the first period.

In  conjunction  with  the  above  discussed  reverse  stock  split,  all  share
references in the following  paragraphs  reflect the post-April 15, 2005 reverse
split action.

On May 25, 2001, in connection  with the Company's  formation and  organization,
our the Company's  then-  President,  William Tay, was issued  475,000 shares of
restricted,   unregistered   common   stock   as   consideration   for   various
organizational expenses and for his first year of executive services.

On February 27, 2002,  the  Company's  Registration  Statement on Form SB-2 (SEC
File No.  333-68702),  registering  200,000  shares to be sold at a post-reverse
split effective price of $0.50 per share, was declared  effective.  Between July
and December  2002,  the Company sold an aggregate  65,600 shares of stock under
this Registration Statement.

On January 3, 2003, the Company issued an aggregate of 20,000  restricted shares
of common stock to U.S.  Capital  Partners,  Inc., a financial  services company
that provides  investment  banking and brokerage  services,  as compensation for
financial services to be provided by U.S. Capital Partners, Inc. to the Company.
The Company  estimated the value of these services at $10,000.  The issuance was
accomplished  in reliance  upon Section 4(2) of the  Securities  Act of 1933, as
amended, and is subject to the resale provisions of Rule 144 and may not be sold
or  transferred  without  registration  except  in  accordance  with  Rule  144.
Certificates representing the shares bear such a legend.

On June 27, 2003,  the Company's  Board of Directors  authorized the issuance of
141,666  restricted,  unregistered shares of common stock to William Tay for his
past services rendered aggregating  $70,833.33 (or $0.50 per post- reverse split
share).  These  securities  were sold  under the  exemptions  from  registration
provided by Section 4(2) of the Securities Act of 1933, as amended.

                                                                              10

<PAGE>

                             Donar Enterprises, Inc.
                          (a development stage company)

                    Notes to Financial Statements - Continued


Note H - Common Stock Transactions - Continued

In February 2003,  the Company sold an aggregate  10,000 shares of common stock,
pursuant  to the  Registration  Statement  on Form SB-2,  for cash  proceeds  of
approximately $5,000.

On March 10, 2004, the Company issued 32,080 shares of restricted,  unregistered
common stock to Michael Tay, son of then-President and controlling  shareholder,
William Tay, as compensation for various services provided to the Company.  This
transaction  was valued at  approximately  $16,040 (or $0.50 per  reverse  split
share).  The Company relied upon the exemptions  provided by Section 4(2) of the
Securities Act of 1933, as amended, for this transaction.

On April 22,  2004,  the Company  issued an aggregate  184,618  shares of common
stock to William Tay as consideration of approximately  $85,000 in accrued,  but
unpaid,  officer  compensation,  reimbursement of trade accounts payable paid by
Mr. Tay on behalf of the Company and in  repayment  of  approximately  $7,000 in
unsecured  advances made to the Company for working capital.  The Company relied
upon the  exemptions  provided by Section 4(2) of the Securities Act of 1933, as
amended, for this transaction.


Note I - Stock Warrant

As a result of the December 15, 2004 change in control and in consideration  for
agreeing to serve as an officer and director of the  Company,  Timothy P. Halter
was granted a stock warrant to purchase up to 100,000  post-reverse split shares
of the Company's restricted,  unregistered common stock at an effective price of
$0.60 per share, in reliance upon the exemption from  registration  set forth in
Section 4(2) of the Securities Act of 1933, as amended.  Mr. Halter may exercise
the  warrants,  in whole  or in part,  at any time  after  the  issuance  of the
warrants and prior to the  expiration of the warrants on December 15, 2007.  Due
to the uncertainty  related to the ultimate  exercise for purchase of any shares
covered by this  warrant,  the Company did not assign any  compensation  expense
upon the issuance of this warrant.

The following table presents warrant activity through March 31, 2005:

                                                                     Weighted
                                                                      Average
                                                  Number of          Exercise
                                                    Shares             Price
                                                  ---------          ---------
    Balance at December 31, 2003                       --                 --
      Issued                                      1,000,000            $0.06
      Effect of April 15, 2005 reverse split       (900,000)           $0.54
      Exercised                                        --
                                                  ---------
    Balance at December 31, 2004                    100,000            $0.60
      Issued                                           --
      Exercised                                        --
                                                  ---------
    Balance at March 31, 2005                       100,000            $0.60
                                                  =========            =====


Note J - Commitment

In  March  2003,  the  Company   executed  an  employment   agreement  with  its
then-President  and majority  stockholder,  William Tay. This  agreement,  which
originally was scheduled to expire  January 1, 2006,  required the payment of an
annual base  compensation  of $85,000 and various fringe benefits (as defined in
the agreement).  Concurrent with the July 2004 change in control, this Agreement
was cancelled and the Company has no further performance requirements.



                                                                              11

<PAGE>

Part I - Item 2

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations

(1)  Caution Regarding Forward-Looking Information

Certain  statements  contained  in this  quarterly  filing,  including,  without
limitation, statements containing the words "believes", "anticipates", "expects"
and  words  of  similar  import,  constitute  forward-looking  statements.  Such
forward-looking  statements  involve known and unknown risks,  uncertainties and
other factors that may cause the actual results,  performance or achievements of
the Company,  or industry  results,  to be materially  different from any future
results,   performance   or   achievements   expressed   or   implied   by  such
forward-looking statements.

Such factors include, among others, the following:  international,  national and
local general economic and market conditions:  demographic  changes; the ability
of the Company to sustain,  manage or  forecast  its growth;  the ability of the
Company to successfully  make and integrate  acquisitions;  existing  government
regulations  and  changes  in,  or  the  failure  to  comply  with,   government
regulations;  adverse  publicity;  competition;  changes in business strategy or
development  plans;  business  disruptions;  the  ability to attract  and retain
qualified personnel; and other factors referenced in this and previous filings.

Given these uncertainties, readers of this Form 10-QSB and investors are
cautioned not to place undue reliance on such forward-looking statements. The
Company disclaims any obligation to update any such factors or to publicly
announce the result of any revisions to any of the forward-looking statements
contained herein to reflect future events or developments.

(2)  General

Donar Enterprises, Inc. (Company) was incorporated on May 21, 2001 in accordance
with the Laws of the State of Delaware.

The Company's  initial business plan was to provide the conversion and filing of
various documents prepared in accordance with either the Securities Act of 1933,
as amended,  or the  Securities  Exchange Act of 1934, as amended,  for small to
mid-sized  public  companies with the U.S.  Securities  and Exchange  Commission
(SEC)  electronically  through  EDGAR,  the  SEC's  Electronic  Data  Gathering,
Analysis,  and Retrieval system.  The Company has never been affiliated with the
SEC in any manner.

On February 27, 2002,  the  Company's  Registration  Statement on Form SB-2 (SEC
File No. 333-68702), registering 2,000,000 shares to be sold at a price of $0.05
per share, was declared  effective.  Between July and December 2002, the Company
sold an aggregate 656,000 shares of stock under this Registration Statement.

The Company has been in the  development  stage since its formation and has been
unable to become profitable within any segment of its initial business plan.

In June 2004 and December 2004,  respectively,  the Company experienced separate
changes in  control  and  abandoned  its  business  plan  related  to  providing
electronic  filing services for small to mid-sized  public companies and began a
search to seek a suitable reverse  acquisition  candidate  through  acquisition,
merger or other suitable business combination method.

(3)  Results of Operations

The  Company had no revenue for the three  month  period  ended March 31,  2005.
During the three  month  period  ended  March 31,  2004,  the  Company  realized
revenues of  approximately  $2,400 for services  provided to the former business
activity of providing  EDGAR filing  services  for other  third-party  companies
filing reports with the Securities Exchange Act of 1934, as amended. ('34 Act).

General and administrative  expenses for the three month periods ended March 31,
2005 were approximately $23,000 and $38,000, respectively. These costs relate to
the  maintenance of the Company and compliance  with the filing  requirements of
the '34 Act.  Earnings per share for the  respective  three month  periods ended
March 31, 2005 and 2004,  on the adjusted  post-reverse  split  weighted-average
shares  issued  and  outstanding,   was   approximately   $(0.03)  and  $(0.05),
respectively.


                                                                              12

<PAGE>

The  Company  does not  expect  to  generate  any  meaningful  revenue  or incur
operating  expenses for purposes  other than  fulfilling  the  obligations  of a
reporting  company  under the  Securities  Exchange Act of 1934 unless and until
such time that the Company's operating subsidiary begins meaningful operations.

At March 31, 2005 and 2004,  respectively,  the  Company had working  capital of
approximately $(23,288) and $(36,265), respectively.

It is the belief of management  and  significant  stockholders  that  sufficient
working capital necessary to support and preserve the integrity of the corporate
entity  will be  present.  However,  there is no  legal  obligation  for  either
management or significant  stockholders  to provide  additional  future funding.
Should this pledge fail to provide financing, the Company has not identified any
alternative  sources.  Consequently,   there  is  substantial  doubt  about  the
Company's ability to continue as a going concern.

The Company's need for working  capital may change  dramatically  as a result of
any business acquisition or combination  transaction.  There can be no assurance
that the Company will identify any such business, product, technology or company
suitable for acquisition in the future.  Further, there can be no assurance that
the Company would be successful in  consummating  any  acquisition  on favorable
terms  or that it will be able  to  profitably  manage  the  business,  product,
technology or company it acquires.

Plan of Business

General

The  Company  intends to locate and  combine  with an  existing,  privately-held
company which is profitable  or, in  management's  view,  has growth  potential,
irrespective of the industry in which it is engaged.  However,  the Company does
not  intend  to  combine  with a  private  company  which may be deemed to be an
investment  company subject to the Investment Company Act of 1940. A combination
may be structured as a merger,  consolidation,  exchange of the Company's common
stock for stock or assets or any other form which  will  result in the  combined
enterprise's becoming a publicly-held corporation.

Pending  negotiation and consummation of a combination,  the Company anticipates
that it will have, aside from carrying on its search for a combination  partner,
no business  activities,  and, thus, will have no source of revenue.  Should the
Company incur any significant  liabilities prior to a combination with a private
company, it may not be able to satisfy such liabilities as are incurred.

If the Company's management pursues one or more combination opportunities beyond
the  preliminary  negotiations  stage and those  negotiations  are  subsequently
terminated,  it is  foreseeable  that such efforts  will  exhaust the  Company's
ability to continue to seek such combination opportunities before any successful
combination can be consummated.  In that event,  the Company's common stock will
become  worthless  and  holders of the  Company's  common  stock will  receive a
nominal distribution, if any, upon the Company's liquidation and dissolution.

Combination Suitability Standards

In its pursuit for a combination  partner,  the Company's  management intends to
consider only  combination  candidates  which are profitable or, in management's
view, have growth potential.  The Company's management does not intend to pursue
any  combination  proposal  beyond the  preliminary  negotiation  stage with any
combination  candidate which does not furnish the Company with audited financial
statements  for at least its most  recent  fiscal year and  unaudited  financial
statements for interim periods  subsequent to the date of such audited financial
statements, or is in a position to provide such financial statements in a timely
manner.  The Company will, if necessary  funds are available,  engage  attorneys
and/or accountants in its efforts to investigate a combination  candidate and to
consummate a business  combination.  The Company may require  payment of fees by
such combination  candidate to fund the investigation of such candidate.  In the
event such a combination candidate is engaged in a high technology business, the
Company may also obtain  reports from  independent  organizations  of recognized
standing  covering the technology  being developed and/or used by the candidate.
The  Company's  limited  financial  resources may make the  acquisition  of such
reports  difficult  or even  impossible  to obtain  and,  thus,  there can be no
assurance  that the Company  will have  sufficient  funds to obtain such reports
when considering combination proposals or candidates.  To the extent the Company
is  unable to  obtain  the  advice or  reports  from  experts,  the risks of any
combined enterprise's being unsuccessful will be enhanced.  Furthermore,  to the
knowledge of the Company's officers and directors, neither the candidate nor any
of  its  directors,   executive  officers,  principal  shareholders  or  general
partners:

                                                                              13

<PAGE>



     (1)  will not have been  convicted of  securities  fraud,  mail fraud,  tax
          fraud, embezzlement,  bribery, or a similar criminal offense involving
          misappropriation  or theft of funds,  or be the  subject  of a pending
          investigation or indictment involving any of those offenses;

     (2)  will not have been subject to a temporary or permanent  injunction  or
          restraining  order arising from unlawful  transactions  in securities,
          whether as issuer, underwriter, broker, dealer, or investment advisor,
          may be the subject of any pending  investigation  or a defendant  in a
          pending  lawsuit  arising from or based upon  allegations  of unlawful
          transactions in securities; or

     (3)  will not have been a defendant in a civil  action which  resulted in a
          final judgement against it or him awarding damages or rescission based
          upon unlawful practices or sales of securities.

The Company's  officers and directors will make these  determinations  by asking
pertinent  questions of the  management of prospective  combination  candidates.
Such persons will also ask pertinent  questions of others who may be involved in
the combination proceedings.  However, the officers and directors of the Company
will not generally take other steps to verify independently information obtained
in this manner which is favorable.  Unless  something  comes to their  attention
which  puts  them on  notice  of a  possible  disqualification  which  is  being
concealed  from them,  such persons will rely on  information  received from the
management of the prospective  combination  candidate and from others who may be
involved in the combination proceedings.

(4)  Liquidity and Capital Resources

During the first quarter of 2005, the Company's controlling stockholder, Timothy
P. Halter,  advanced the Company approximately $23,000 to support operations and
provide working capital. These advances are due upon demand and are non-interest
bearing.

It is the belief of management  and  significant  stockholders  that  sufficient
working capital necessary to support and preserve the integrity of the corporate
entity  will be  present.  However,  there is no  legal  obligation  for  either
management or significant  stockholders  to provide  additional  future funding.
Should this pledge fail to provide financing, the Company has not identified any
alternative  sources.  Consequently,   there  is  substantial  doubt  about  the
Company's ability to continue as a going concern.

The Company has no current plans, proposals, arrangements or understandings with
respect to the sale or issuance of additional  securities  prior to the location
of a merger or  acquisition  candidate.  Accordingly,  there can be no assurance
that sufficient  funds will be available to the Company to allow it to cover the
expenses related to such activities.

Regardless of whether the  Company's  cash assets prove to be inadequate to meet
the Company's  operational needs, the Company might seek to compensate providers
of services by issuances of stock in lieu of cash.

Item 3 - Controls and Procedures

As required by Rule 13a-15 under the Exchange  Act,  within the 90 days prior to
the filing date of this report,  the Company  carried out an  evaluation  of the
effectiveness of the design and operation of the Company's  disclosure  controls
and  procedures.  This evaluation was carried out under the supervision and with
the  participation  of  the  Company's   management,   including  the  Company's
President,  Chief  Executive  and  Chief  Financial  Officer.  Based  upon  that
evaluation, the Company's President, Chief Executive and Chief Financial Officer
concluded that the Company's  disclosure  controls and procedures are effective.
There have been no significant  changes in the Company's internal controls or in
other factors,  which could significantly affect internal controls subsequent to
the date the Company carried out its evaluation.

Disclosure  controls and procedures are controls and other  procedures  that are
designed to ensure that information  required to be disclosed in Company reports
filed or submitted under the Exchange Act is recorded, processed, summarized and
reported,  within the time  periods  specified  in the  Securities  and Exchange
Commission's  rules and  forms.  Disclosure  controls  and  procedures  include,
without limitation,  controls and procedures designed to ensure that information
required to be  disclosed  in Company  reports  filed under the  Exchange Act is
accumulated  and  communicated  to  management,  including the  Company's  Chief
Executive and Chief Financial Officer as appropriate,  to allow timely decisions
regarding required disclosure.

                                                                              14

<PAGE>

Part II - Other Information

Item 1 - Legal Proceedings

None

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

None

Item 3 - Defaults on Senior Securities

None

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

On  February  21,  2005,  by written  consent in lieu of  meeting,  stockholders
representing  78.9% of the issued  and  outstanding  shares of our common  stock
approved a  recommendation  of our Board of  Directors to effect a one share for
ten shares  reverse stock split of our common stock,  par value $.001 per share,
with all fractional  shares rounded down to the nearest whole share. The reverse
split became  effective on April 15, 2005. As a result of the reverse split, the
total number of issued and outstanding shares of our common stock decreased from
9,289,647  shares  to  928,964  shares,  after  giving  effect to  rounding  for
fractional shares. In the reverse split calculation,  all fractional shares were
rounded down to the nearest whole share.  Holders of less than ten shares, prior
to the reverse split, shall receive $0.30 per share as compensation.  The effect
of this action is  reflected in the  Company's  financial  statements  as of the
first day of the first period.

Item 5 - Other Information

See Item 4.

Item 6 - Exhibits

     31.1 Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002
     32.1 Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002

--------------------------------------------------------------------------------

                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized. Donar Enterprises, Inc.

Dated: May 9, 2005                                   /s/ Timothy P. Halter
       -----------                          ------------------------------------
                                                               Timothy P. Halter
                                              President, Chief Executive Officer
                                            Chief Financial Officer and Director







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