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UNITED STATES

SECURITIES AND
EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-QSB



QUARTERLY REPORT UNDER
SECTION 13 OR 15(f) OF THE SECURITIES EXCHANGE ACT

OF 1934 FOR THE
QUARTERLY PERIOD ENDED MARCH 31, 2005



Commission file number
333-62588



First National Power
Corporation

#219, 227 Bellevue Way
NE

Bellevue, WA 98004

416-918-6987



IRS TAX ID #
66-0349372

State of
Incorporation: Delaware



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] [ ]

As of March 31, 2005, there were 75,447,260 shares issued and outstanding of
the issuer's common stock.

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PART I: FINANCIAL INFORMATION

Item 1. Financial Statements:









FIRST NATIONAL POWER CORPORATION



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FIRST NATIONAL POWER CORPORATION

TABLE OF CONTENTS

Interim Balance Sheets as of March 31, 2005 and December 31,
2004                                
1

Interim Statements of Operations for the three month period
ended 
March 31, 2005 and March 31, 2004                                                        
2

Interim Statements of Cash Flows for the three month period
ended 
March 31, 2005 and March 31, 2004                                                                                
3

Interim Statements of Changes in Stockholders' Deficiency for
the 
three month period ended March 31, 2005 and the year ended December 31, 2004
4

Condensed Notes to Interim Financial Statements                                                            
5







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FIRST NATIONAL POWER
CORPORATION

(Formerly Capstone
International Corporation)
(A Development Stage Company)
Interim Balance Sheets
As of March 31, 2005 and December 31, 2004
(Amounts expressed in US Dollars)
(Unaudited)



|                         |                                                       | March 31, 2005 |   | December 31, 2004
|------------------------ | ----------------------------------------------------- | -------------- | - | -----------------
|                         |                                                       |                |   |                  
|                         |                                                       | $              |   | $                
|ASSETS                   |                                                       |                | .
|                         | CURRENT ASSETS                                        |                |   |                  
|                         |                                                       |                |   |                  
|                         | Cash                                                  | 7,401          |   | 8,645            
|                         | Prepaid expenses and deposits                         | 1,500          |   | 1,500            
|                         |                                                       | 8,901          |   | 10,145           
|                         |                                                       |                |   |                  
|                         |                                                       |                |   |                  
|LIABILITIES              |                                                       |                |  
|                         | CURRENT LIABILITIES                                   |                |   |                  
|                         | Accounts payable and accrued liabilities              | 14,984         |   | 19,821           
|                         | Loans from shareholders                               | 20,581         |   | 20,581           
|                         |                                                       | 35,565         |   | 40,402           
|                         |                                                       |                |   |                  
|                         |                                                       |                |   |                  
|STOCKHOLDERS' DEFICIENCY |                                                       |                |  
|                         |                                                       |                |   |                  
|                         | CAPITAL STOCK                                         | 75,938         |   | 75,448           
|                         |                                                       |                |   |                  
|                         | CAPITAL STOCK SUBSCRIBED                              | 146            |   | 146              
|                         |                                                       |                |   |                  
|                         | ADDITIONAL PAID-IN-CAPITAL                            | 293,286        |   | 127,777          
|                         |                                                       |                |   |                  
|                         | DEFICIT, ACCUMULATED DURING THE
    DEVELOPMENT STAGE | (396,034)      |   | (233,628)        
|                         |                                                       | (26,664)       |   | (30,257)         
|                         |                                                       |                |   |                  
|                         |                                                       | 8,901          |   | 10,145           

-See condensed notes to the interim financial
                statements



|APPROVED ON BEHALF OF THE BOARD |         
|------------------------------- | --------
|                                | Director
|                                | Director

1

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FIRST NATIONAL POWER CORPORATION

|                                           |                                           | Cumulative |                          | Three Months   |                        | Three Months  
|------------------------------------------ | ----------------------------------------- | ---------- | ------------------------ | -------------- | ---------------------- | --------------
|                                           |                                           | Since      |                          | ended          |                        | ended         
|                                           |                                           | Inception  |                          | March 31, 2005 |                        | March 31, 2004
|                                           |                                           | $          |                          | $              |                        | $             
|OPERATING EXPENSES                         |                                           |            |                          |                |                       
|                                           |                                           |            |                          |                |                       
|                                           | Forgiveness of accounts payable and loans | (47,394)   |                          | -              |                        | -             
|                                           | General and administrative expenses       | 261,010    |                          | 34,402         |                        | 37,817        
|                                           | Project Development Costs                 | 179,351    |                          | 128,000        |                        | 21,000        
|                                           | Interest                                  | 3,067      |                          | 4              |                        | 58            
|                                           |                                           | 396,034    |                          | 162,406        |                        | 58,875        
|                                           |                                           |            |                          |                |                        |               
|NET LOSS                                   | (396,034)                                 |            | (162,406)                |                | (58,875)              
|                                           |                                           |            |                          |                |                        |               
|Net loss per share, basic and diluted      |                                           |            | $            
    (0.00) |                | $          
    (0.00)
|                                           |                                           |            |                          |                |                        |               
|Weighted average common shares outstanding |                                           |            | 75,839,424               |                | 75,396,178            

See condensed notes to the interim financial statements.

2

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FIRST NATIONAL POWER CORPORATION

|                                     |                                           |                                           | Cumulative |           | Three Months   |          | Three Months  
|------------------------------------ | ----------------------------------------- | ----------------------------------------- | ---------- | --------- | -------------- | -------- | --------------
|                                     |                                           |                                           | .Since     |           | ended          |          | ended         
|                                     |                                           |                                           | Inception  |           | March 31, 2005 |          | March 31, 2004
|                                     |                                           |                                           | $          |           | .$             |          | $             
|CASH FLOWS FROM OPERATING ACTIVITIES |                                           |                                           |            |           |               
|                                     |                                           |                                           |            |           |                |          |               
|CASH FLOWS FROM OPERATING ACTIVITIES |                                           |                                           |            |           |               
|                                     |                                           |                                           |            |           |                |          |               
|                                     | Net loss                                  | (396,034)                                 |            | (162,406) |                | (58,875)
|                                     | Adjustments for items not affecting cash  |                                           |            |           |                |         
|                                     |                                           | Shares issued for services rendered       | 271,899    |           | 165,999        |          | 15,900        
|                                     |                                           | Depreciation                              |            |           |                |          | 104           
|                                     |                                           | Forgiveness of accounts payable and loans | (47,394)   |           |                |          |               
|                                     |                                           | (Increase) in prepaid expenses            | (1,500)    |           | -              |          | (4,736)       
|                                     |                                           | (Increase) in deposits                    |            |           |                |          | (5,000)       
|                                     |                                           | Increase (decrease) in accounts payable   |            |           |                |          |               
|                                     |                                           | and accrued
    liabilities               | 18,984     |           | (4,837)        |          | 20,601        
|                                     |                                           |                                           |            |           |                |          |               
|                                     | Net cash used in operating activities     | (154,045)                                 |            | (1,244)   |                | (32,006)
|                                     |                                           |                                           |            |           |                |          |               
|CASH FLOWS FROM INVESTING ACTIVITIES |                                           |                                           |            |           |               
|                                     |                                           |                                           |            |           |                |          |               
|                                     | Automobile Purchase                       |                                           |            |           |                | (3,122) 
|                                     |                                           |                                           |            |           |                |          |               
|CASH FLOWS FROM FINANCING ACTIVITIES |                                           |                                           |            |           |               
|                                     | Loans from Shareholders                   | 63,975                                    |            |           |                |         
|                                     | Proceeds from sale of capital stock       | 26,954                                    |            |           |                |         
|                                     | Proceeds from capital stock subscriptions | 70,517                                    |            | -         |                | 50,000  
|                                     |                                           |                                           |            |           |                |          |               
|                                     | Net cash provided by financing activities | 161,446                                   |            | -         |                | 50,000  
|                                     |                                           |                                           |            |           |                |          |               
|NET INCREASE IN CASH                 | 7,401                                     |                                           | .(1,244)   |           | 14,872        
|                                     |                                           |                                           |            |           |                |          |               
|                                     | Cash, beginning of period                 | -                                         |            | 8,645     |                | -       
|CASH, END OF PERIOD                  | 7,401                                     |                                           | .7,401     |           | 14,872        
|                                     |                                           |                                           |            |           |                |          |               
|INCOME TAXES PAID                    | -                                         |                                           | -          |           | -             
|                                     |                                           |                                           |            |           |                |          |               
|INTEREST PAID                        | 3,067                                     |                                           | .4         |           | 58            

See condensed notes to the interim financial statements.

3

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FIRST NATIONAL POWER CORPORATION 
(Formerly Capstone International Corporation)
(A Development Stage Company)
Interim Statements of Changes in Stockholders' Deficiency
For the three month period ended March 31, 2005 and the year ended December 31,
2004
(Amounts expressed in US Dollars)







|                                    |                                         |        |            |            |     |            |         |            |           | Deficit    
|----------------------------------- | --------------------------------------- | ------ | ---------- | ---------- | --- | ---------- | ------- | ---------- | --------- | -----------
|                                    |                                         |        |            | Common     |     |            |         | Additional |           | accumulated
|                                    |                                         | Common |            | Stock      |     | Common     |         | Paid-in    |           | during the 
|                                    |                                         | Stock  |            | Number of  |     | Stock      |         | Capital    |           | development
|                                    |                                         | Amount |            | Shares     |     | Subscribed |         | (Discount) |           | stage      
|                                    |                                         | $      |            | $          |     | $          |         | $          |           | $          
|Balance at November 16, 2000        |                                         |        |            |            |     |            |         |            |          
|                                    | Issuance of common stock for cash       | 100    |            | 100,000    |     |            |         | 900        |           |            
|                                    | Net Loss for the Period                 |        |            |            |     |            |         |            |           | (968)      
|                                    |                                         |        |            |            |     |            |         |            |           |            
|Balance as of December 31, 2000     | 100                                     |        | 100,000    |            | -   |            | 900     |            | (968)    
|                                    |                                         |        |            |            |     |            |         |            |           |            
|                                    | Issuance of stock for cash              | 400    |            | 400,000    |     |            |         | 3,600      |           |            
|                                    | Issuance of stock for cash              | 700    |            | 700,000    |     |            |         | 6,300      |           |            
|                                    | Issuance of stock for cash              | 850    |            | 850,000    |     |            |         | 7,650      |           |            
|                                    | Currency Translation                    |        |            |            |     |            |         | 100        |           |            
|                                    | Net Loss for the Year                   |        |            |            |     |            |         |            |           | (23,954)   
|                                    |                                         |        |            |            |     |            |         |            |           |            
|Balance as of December 31, 2001     | 2,050                                   |        | 2,050,000  |            | -   |            | 18,500  |            | (24,922) 
|                                    |                                         |        |            |            |     |            |         |            |           |            
|                                    | Expiration of rescission offer for      |        |            |            |     |            |         |            |           |            
|                                    | of stock                                | 64     |            | 63,536     |     |            |         | 6,290      |           |            
|                                    | Net Loss for the Year                   |        |            |            |     |            |         |            |           | (26,047)   
|                                    |                                         |        |            |            |     |            |         |            |           |            
|Balance as of December 31, 2002     | 2,114                                   |        | 2,113,536  |            | -   |            | 24,840  |            | (50,969) 
|                                    |                                         |        |            |            |     |            |         |            |          
|                                    | Stock split 5:1                         | 8,454  |            | 8,454,144  |     |            |         | (8,454)    |           |            
|                                    | Shares issued for services
    rendered | 200    |            | 200,000    |     |            |         | 79,800     |           |            
|                                    | Net Loss for the Year                   |        |            |            |     |            |         |            |           | (107,245)  
|                                    |                                         |        |            |            |     |            |         |            |           |            
|Balance as of
    December 31, 2003 | 10,768                                  |        | 10,767,680 |            | -   |            | 96,186  |            | (158,214)
|                                    |                                         |        |            |            |     |            |         |            |           |            
|                                    | Stock split 7:1                         | 64.606 |            | 64,606,080 |     |            |         | (64,606)   |           |            
|                                    | Shares issued for services
    rendered | 30     |            | 30,000     |     |            |         | 15,870     |           |            
|                                    | Shares subscribed                       |        |            |            |     | 146        |         | 70,371     |           |            
|                                    | Shares issued for services
    rendered | 44     |            | 43,500     |     |            |         | 9,956      |           |            
|                                    | Net Loss for the Year                   |        |            |            |     |            |         |            |           | (75,414)   
|                                    |                                         |        |            |            |     |            |         |            |           |            
|Balance as of
    December 31, 2004 | 75,488                                  |        | 75,447,260 |            | 146 |            | 127,777 |            | (233,628)
|                                    |                                         |        |            |            |     |            |         |            |           |            
|                                    | Shares issued for services
    rendered | 490    |            | 490,000    |     |            |         | 165,509    |           |            
|                                    | Conversion of subscriptions             |        |            |            |     |            |         |            |           |            
|                                    | Net Loss for the period                 |        |            |            |     |            |         |            |           | (162,406)  
|                                    |                                         |        |            |            |     |            |         |            |           |            
|Balance as of March
    31, 2005    | 75,938                                  |        | 75,937,260 |            | 146 |            | 293,286 |            | (396,034)

4

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|FIRST NATIONAL POWER CORPORATION                                                                                         
|-------------------------------------------------------------------------------------------------------------------------
|(Formerly Capstone International Corporation)
    (A Development Stage Company)
    Notes to Interim Financial Statements
|March 31, 2005                                                                                                           
|(Amounts expressed in US Dollars)
    (Unaudited)                                                                        
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Item 2: Management's Discussion and Analysis:

The company is continuing its review and exploration of opportunities in the
power generation and utilities industry. As previously announced, First National
has a number of projects in various stages of development: the Prop-less Wind
Powered Generator currently under development by way of a proprietary contract
with world-renown inventor Alvin Snaper and his team at Impactive Technology of
Las Vegas Nevada; the Green Oasis Project with inventor Chaz Haba of Lithium
House in California; and several biomass power generation projects, one in the
North Eastern United States and one in the Caribbean area.  While the
Company is still dealing with both Mr. Snaper and Mr. Haba, the focus of the
Company at the emergence of its development stage is going to be as a financing
tool for various power development projects.  It is still the intention of
the Company to roll the technology related ventures into a wholly owned
subsidiary and while the deal announced this summer to sell 15% of that
subsidiary is not likely going to close, we believe that as the technology nears
commercial viability, we will be able to revive the sale possibility.

Management intends to continue to work closely with each of these projects,
provide encouragement and support and to make timely and efficient strategic
choices when it comes to resource allocation. We are currently completing a
management audit that will determine a strategic timetable. Once this has been
determined, we will be better able to focus our attention and resources where
best spent. Management completed a trip to Las Vegas in May where the progress
of the Snaper Project was reviewed. The Green Oasis Project is currently being
reviewed and further details of our plans for that project are expected to be
released soon.

As mentioned previously, First National is in the midst of discussions
concerning two biomass power generation projects, one in the North Eastern
United States and one in the Caribbean region. The US project is an existing
privately held facility with all necessary licensing and permits in place. We
are in negotiations to purchase the land and facility.

The final project is a new project. We are in preliminary discussions with
the national government in that jurisdiction and have a meeting planned with
them later this year. While this project is only in its infancy, we are very
encouraged by the progress of the discussions.

We recently reached an agreement with a Western European group to purchase
15% of the shares of a soon-to-be-formed subsidiary company that will develop
one or more specific projects. That agreement is worth $1,000,000 to FNPR. As of
the date of this report, those funds had not been received.

Item 3. Effectiveness of the registrant's disclosure controls and procedures

Within the 90-day period prior to the filing of this report, the Company
carried out an evaluation of the effectiveness of the Company's disclosure
controls and procedures (as defined by Rule 13a-14(c) under the Securities
Exchange Act of 1934) under the supervision and with the participation of the
Company's chief executive officer and chief financial officer. Based on and as
of the date of such evaluation, the aforementioned officers have concluded that
the Company's disclosure controls and procedures were effective.

The Company also maintains a system of internal accounting controls that is
designed to provide assurance that assets are safeguarded and that transactions
are executed in accordance with management's authorization and properly
recorded. This system is continually reviewed and is augmented by written
policies and procedures, the careful selection and training of qualified
personnel and an internal audit program to monitor its effectiveness. During the
second quarter of fiscal year 2004, there were no significant changes to this
system of internal controls or in other factors that could significantly affect
those controls.

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PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

Exhibits:

|Exhibit No. | Document                                  | Location        
|----------- | ----------------------------------------- | ----------------
|3.1         | Articles of
    Incorporation             | Previously Filed
|3.2         | Bylaws                                    | Previously Filed
|31          | Rule
    13a-41(a)/15d-14(a) Certificates | Included        
|32          | Section 1350
    Certifications           | Included        

Reports on Form 8-K

None.

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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.

FIRST NATIONAL POWER CORPORATION

DATE: May 12, 2005





/s/ Peter Wanner

Peter Wanner

Chief Financial Officer

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