UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT
     OF 1934

                   For the quarterly period ended May 31, 2005

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT
     OF 1934

            For the transition period from            to
                                           -----------  ------------

                        Commission File Number: 333-64244


                             THE MACREPORT.NET, INC.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

            Delaware                                             11-3584538
 ------------------------------                               -----------------
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                              150 Broadhollow Road
                                   Suite PH11
                               Melville, NY 11747
           -----------------------------------------------------------
          (Address, including zip code, of principal executive offices)

                                 (631) 423-4222
               --------------------------------------------------
              (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

(1)  Yes  X     No
        -----     -----

(2)  Yes  X     No
        -----     -----

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

     The number of shares of Common Stock outstanding as of May 31, 2005 was
17,293,041.

<PAGE>



                          THE MACREPORT.NET, INC.

                                FORM 10-QSB

                               May 31, 2005

                                   INDEX

                      PART I - FINANCIAL INFORMATION

                                                                           Page
Item 1.                                                                    ----

              Unaudited Condensed Consolidated Balance Sheet                 3

              Unaudited Condensed Consolidated Statements of Operations      4

              Unaudited Condensed Consolidated Statements of Cash Flows      6

              Unaudited Notes to Condensed Consolidated Financial
              Statements                                                     7

Item 2.       Management's Discussion and Analysis of Financial
              Condition and Results of Operations                            9

Item 3.       Controls and Procedures                                        15


              PART II - OTHER INFORMATION

Item 1.       Legal Proceedings                                              16

Item 2.       Changes in Securities                                          16

Item 3.       Defaults by the Company upon Its Senior Securities             16

Item 4.       Submission of Matters to a Vote of Security Holders            17

Item 5.       Other Information                                              17

Item 6.       Exhibits and Reports on Form 8-K                               17

              Signatures                                                     18

                                       2

<PAGE>


                                     PART I.
                              FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS
         --------------------


                    THE MACREPORT.NET, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEET - UNAUDITED
                                  MAY 31, 2005



                                     ASSETS
                                     ------

CURRENT ASSETS:
Cash and cash equivalents                                           $   891,333
Marketable securities                                                   459,744
Accounts receivable                                                       6,440
Other current assets                                                      4,000
                                                                    -----------
Total current assets                                                  1,361,517

PROPERTY AND EQUIPMENT, net                                           1,752,397
OTHER ASSETS
Deposits                                                                 10,221
                                                                    -----------
Total other assets                                                       10,221
                                                                    -----------
Total assets                                                        $ 3,124,135
                                                                    ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

CURRENT LIABILITIES:
Accounts payable and accrued expenses                               $   249,314
Notes payable                                                         1,387,466
Current Portion of Loan Payable - Related Party                         229,737
Deferred revenue                                                         89,495
                                                                    -----------
Total current liabilities                                             1,956,012

Loan Payable - Related Party                                            638,619
                                                                    -----------
Total Liabilities                                                     2,594,631

COMMITMENTS
STOCKHOLDERS' EQUITY:
Preferred stock $.0001 par value, authorized 5,000,000
shares, no shares issued                                                   --
Common stock $.0001 par value, authorized 25,000,000
  shares, 17,293,041 shares issued and outstanding                        1,730
Additional paid-in-capital                                            3,731,872
Deficit                                                              (3,204,098)
                                                                    -----------
Total stockholders' equity
                                                                        529,504
                                                                    -----------
Total liabilities and stockholders' equity                          $ 3,124,135
                                                                    ===========


     See accompanying notes to condensed consolidated financial statements.

                                       3

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<CAPTION>


                      THE MACREPORT.NET, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED



                                                        Three months    Three months
                                                           ending          ending
                                                           May 31,         May 31,
                                                            2005            2004
                                                        ------------    ------------
<S>                                                     <C>             <C>
REVENUES                                                $    441,590    $    789,911
COST OF REVENUES                                             187,590          75,261
                                                        ------------    ------------
GROSS PROFIT                                                 254,000         714,650
SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES                                    603,287         344,002
                                                        ------------    ------------
(LOSS) INCOME BEFORE OTHER INCOME (EXPENSE)                 (349,287)        370,648

OTHER INCOME (EXPENSE):

  Net Rental Loss                                            (67,500)           --

  Unrealized (loss) gain on non-marketable securities       (111,406)          6,770
  Gain on sale of marketable securities                          339          34,733
  Interest expense                                           (36,090)        (21,237)
  Interest income                                                 65            --
                                                        ------------    ------------
                                                            (214,592)         20,266
                                                        ------------    ------------
(LOSS) INCOME BEFORE PROVISION FOR
   INCOME TAXES                                             (563,879)        390,914

PROVISION FOR INCOME TAXES                                      --              --
                                                        ------------    ------------
NET (LOSS) INCOME                                       $   (563,879)   $    390,914
                                                        ============    ============

(LOSS) INCOME PER COMMON SHARE:
BASIC                                                   $      (0.03)   $       0.02
                                                        ============    ============
DILUTED                                                 $      (0.03)   $       0.02
                                                        ============    ============
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING:
BASIC                                                     17,293,041      16,283,809
                                                        ============    ============
DILUTED                                                   17,293,041      16,704,233
                                                        ============    ============


       See accompanying notes to condensed consolidated financial statements.

                                         4
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<TABLE>
<CAPTION>


                      THE MACREPORT.NET, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED



                                                         Six months      Six months
                                                           ending          ending
                                                           May 31,         May 31,
                                                            2005            2004
                                                        ------------    ------------
<S>                                                     <C>             <C>
REVENUES                                                $    919,240    $  1,118,519
COST OF REVENUES                                             303,983         128,660
                                                        ------------    ------------
GROSS PROFIT                                                 615,257         989,859
SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES                                  1,060,666         519,479
                                                        ------------    ------------
(LOSS) INCOME BEFORE OTHER INCOME (EXPENSE)                 (445,409)        470,380

OTHER INCOME (EXPENSE):

  Net Rental Loss                                           (191,133)           --
  Other income                                                 5,000
  Unrealized (loss) gain on non-marketable securities        (30,834)          8,860
  (Loss) gain on sale of marketable securities              (543,486)         39,867
  Interest expense                                           (62,686)        (42,704)

  Interest income                                              1,508            --
                                                        ------------    ------------
                                                            (821,631)          6,023
                                                        ------------    ------------
(LOSS) INCOME BEFORE PROVISION FOR
   INCOME TAXES                                           (1,267,040)        476,403
PROVISION FOR INCOME TAXES
                                                                 125            --
                                                        ------------    ------------
NET (LOSS) INCOME                                       $ (1,267,165)   $    476,403
                                                        ============    ============

(LOSS) INCOME PER COMMON SHARE:
BASIC                                                   $      (0.08)   $       0.03
                                                        ============    ============
DILUTED                                                 $      (0.08)   $       0.03
                                                        ============    ============

WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING:
BASIC                                                     16,869,964      16,278,524
                                                        ============    ============
DILUTED                                                   16,869,964      16,694,524
                                                        ============    ============


       See accompanying notes to condensed consolidated financial statements.

                                         5
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<TABLE>
<CAPTION>


                          THE MACREPORT.NET, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED



                                                                 Six months     Six months
                                                                   ending         ending
                                                                   May 31,        May 31,
                                                                    2005           2004
                                                                 -----------    -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                              <C>            <C>
  Net (loss) income                                              $(1,267,165)   $   476,403
                                                                 -----------    -----------
  Adjustments to reconcile net (loss) income to net cash
    used in operating activities:
      Depreciation and amortization                                   21,747          4,629
      Unrealized loss (gain) on non-marketable securities             30,834         (8,860)
      Realized loss (gain) on sale of securities                     543,486        (39,867)
      Marketable securities received for payment of services        (117,995)      (764,603)
      Changes in operating assets and liabilities:
      (Increase) decrease in assets:

         Accounts receivable                                           8,268           --
      Deposits                                                        (2,650)
      Increase (decrease) in liabilities:
      Accounts payable and accrued expenses                          (27,665)       (17,263)
      Deferred revenue                                              (274,538)       268,591
                                                                 -----------    -----------
    Total adjustments                                                181,487       (557,373)
                                                                 -----------    -----------
    Net cash used in operating activities                         (1,085,678)       (80,970)
                                                                 -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from sale of marketable securities                        252,945        488,524
  Purchase of property and equipment                              (1,048,477)        (6,000)
                                                                 -----------    -----------
    Net cash (used in) provided by investing activities             (795,532)       482,524
                                                                 -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net proceeds from issuance of common stock                       2,000,000           --
  Repayments of notes payable                                        (78,491)          --
                                                                 -----------    -----------
    Net cash provided by financing activities                      1,921,509           --
                                                                 -----------    -----------
Net increase in cash and cash equivalents                             40,299        401,554
Cash and cash equivalents at beginning of period                     851,034          1,868
                                                                 -----------    -----------
Cash and cash equivalents at end of period                       $   891,333    $   403,422
                                                                 ===========    ===========


           See accompanying notes to condensed consolidated financial statements.

                                             6
</TABLE>

<PAGE>


                     THE MACREPORT.NET, INC. AND SUBSIDIARY
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
             FOR THE SIX MONTHS ENDED MAY 31, 2005 AND MAY 31, 2004


ITEM 1.  NOTES TO FINANCIAL STATEMENTS
-------  -----------------------------

1. The Condensed Consolidated Balance Sheet as of May 31, 2005, the Condensed
Consolidated Statements of Operations and the Condensed Consolidated Statements
of Cash Flows for the six months ended May 31, 2005 and May 31, 2004 have been
prepared by us without audit. All unaudited amounts are subject to year-end
adjustments and audit, but the Company believes all adjustments, consisting only
of normal and recurring adjustments, necessary to present fairly the financial
condition, results of operations and changes in cash flows for all interim
periods have been made. The results of operations for interim periods are not
necessarily indicative of the operating results for the full year

Footnote disclosures normally included in the financial statements prepared in
accordance with generally accepted accounting principles have been omitted in
accordance with published rules and regulations of the Securities and Exchange
Commission. These financial statements should be read in conjunction with the
audited financial statements and notes thereto included in the Company's form
10-KSB for the most recent fiscal year ended November 30, 2004.

The results of operations and cash flows for the three months ended May 31, 2005
are not necessarily indicative of the results to be expected for the full year.

2. Summary of Significant Accounting Policies:
   -------------------------------------------

Principles of consolidation

The consolidated financial statements include the accounts of the Company and
three subsidiaries. All significant intercompany transactions have been
eliminated in consolidation. The subsidiaries are as follows:

The Marcellus Group, LLC - A company owned 100% by the MacReport.Net that was
formed in 2004 to acquire, renovate, and lease out commercial properties. As of
May 31, 2005, the Marcellus Group LLC owned six buildings in the town of
Marcellus, New York.

MacNetworks Inc. - A company owned 100% by the MacReport.Net that was formed in
2004. As of May 31, 2005, there has been no material activity in this
corporation.

Spring Bay Oil Company Inc. - A company owned 77% by the MacReport.Net that was
formed in 2004 to develop a product that can be used in the production of oil.
As of May 31, 2005, there has been no material activity in this corporation.

JA Spa, LLC - A company owned 100% by the MacReport.Net that was formed in 2005.
As of May 31, 2005, there has been no material activity in this corporation.

Use of estimates
----------------

The preparation of financial statements in conformity with generally accepted
accounting principles 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.

Revenue recognition
-------------------

Revenues from fee-based contracts with terms greater than one month are
recognized ratably over the life of the contract. Advertising revenues are
recognized over the period of the related ad.

                                       7

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<CAPTION>


Certain agreements with customers provide for payment in the form of restricted
equity securities of publicly traded companies. In accordance with Financial
Accounting Standards Board Statement No. 123(R), "Accounting for Stock Based
Compensation", revenue recognized from these transactions is based on the value
of similar services rendered to other customers for whom the Company receives
payment in cash.

Marketable securities

The Company reports its investment in marketable securities under the provisions
of Financial Accounting Standards Board Statement No. 115 "Accounting for
Certain Investments in Debt and Equity Securities." In accordance with this
standard, securities which are classified as "trading securities" are recorded
in the Company's balance sheet at fair market value, with the resulting
unrealized gain or loss reflected in the Company's statement of operations in
the current period. Securities which are classified as "available for sale" are
also reported at fair market value, however, the unrealized gain or loss on
these securities is listed as a separate component of stockholders' equity.

Net (loss) income per common share and per common share equivalent share

The reconciliations for the six and three months ended May 31, 2005 and May 31,
2004 are as follows:

Six Months Ended May 31, 2005                 Loss            Shares       Per Share
-----------------------------              -----------     -----------    -----------
<S>                                        <C>              <C>           <C>
Basic EPS                                  $(1,267,165)     16,869,964    $     (0.08)
Effect of Dilutive Securities                     --              --          --
                                           -----------     -----------    -----------
Diluted EPS                                $(1,267,165)     16,869,964    $     (0.08)
                                           ===========     ===========    ===========

Six Months Ended May 31, 2004                 Income          Shares       Per Share
-----------------------------              -----------     -----------    -----------


Basic EPS                                  $   476,403      16,278,524    $      0.03
Effect of Dilutive Securities                     --           416,000        --
                                           -----------     -----------    -----------
Diluted EPS                                $   476,403      16,694,524    $      0.03
                                           ===========     ===========    ===========


Three Months Ended May 31, 2005                Loss           Shares       Per Share
-------------------------------            -----------     -----------    -----------

Basic EPS                                  $  (563,879)     17,293,041    $     (0.03)
Effect of Dilutive Securities                     --              --          --
                                           -----------     -----------    -----------
Diluted EPS                                $  (563,879)     17,293,041    $     (0.03)
                                           ===========     ===========    ===========

Three Months Ended May 31, 2004               Income          Shares       Per Share
-------------------------------            -----------     -----------    -----------

Basic EPS                                  $   390,914      16,283,809    $      0.02
Effect of Dilutive Securities                     --           420,424        --
                                           -----------     -----------    -----------
Diluted EPS                                $   390,914      16,704,233    $      0.02
                                           ===========     ===========    ===========

Comprehensive (loss) Income
---------------------------

Other comprehensive income refers to revenues, expenses, gains and losses that
under generally accepted accounting principles are included in comprehensive
income but are excluded from net income as these amounts are recorded directly
as an adjustment to stockholders' equity. Comprehensive (loss) income
approximated (loss) net income for all periods presented.

                                       8
</TABLE>

<PAGE>


ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------

The following discussion and analysis should be read in conjunction with our
financial statements and the notes thereto appearing elsewhere in this report.
This report contains statements that constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by the use of forward-looking
terminology, such as "may", "will", "should", "expect", "anticipate",
"estimate", "project", "continue", "plans", "intends" or other similar
terminology. We caution you that forward-looking statements are not guarantees
of future performance and involve risks and uncertainties, and that actual
results may differ materially from the statements that constitute
forward-looking statements as a result of various factors.

Introduction and Nature of Business

Our core strategy is to be a leading Web portal for financial professionals and
business decision makers and worldwide provider of multimedia production and
distribution services to corporations and other organizations. Our revenues have
been generated from the sale of package services to public and private
companies. The packages range from merely exposure on our web site to a
comprehensive service package, including press release services and in certain
cases, client exposure in "Institutional Investor" magazine.

Overview

The MacReport.Net, Inc. was incorporated as a Delaware corporation in December
2000. We commenced operations at such time. The Company is an internet
information and media company formed to allow publicly and privately held
companies to communicate relevant corporate information directly with the
investing public. This is done through the use of a web site that provides the
user with key information via management interviews, press releases, and other
information.

Prior to the fourth quarter of fiscal 2004, our activities had been primarily
devoted to business development, proof of concept activities, recruiting
personnel and other start-up activities, however, recently, our revenues have
grown substantially through sales of our services and products and the Company's
focus has shifted to growing its customer base.

General

The Macreport.net, Inc.

We are an information and media company that provides a Web-based forum for
public and private issuers to communicate corporate audio news content to the
business, financial and investing community through our Web site, located at
www.macreport.net. We have built a user friendly, highly effective Web site that
aggregates and disseminates information from multiple sources.

Through content partnerships, we also provide Web-based financial information to
professionals who need quick access to reliable corporate, industry and market
intelligence. By visiting our website, users are able to access comprehensive
and up-to-the minute business and financial information on public and private
companies from several information providers drawing upon multiple sources of
content. Our services enable timely, online access to a wide array of
proprietary and partner content. These sources include both textual information,
such as news, trade press, SEC filings, executive biographies and analyst
reports, and numeric information, such as company financial results, stock
quotes and industry statistics.

                                       9

<PAGE>


We expect that visitors to our Web site use our information for their
professional endeavors, including financial and competitive research, as well as
for their personal activities. We believe that we provide advertisers with a
large, demographically desirable business audience.

We market and sell package services to public and private companies. The
packages range from merely exposure on our web site to a comprehensive service
package, including press release services as well as client exposure on our
website. Also, the Company purchases advertising pages from "Institutional
Investor" magazine and, within these pages, highlights its clients and
information regarding such client's business. The press release services can
range from a set amount of client press releases per month to unlimited.

Subsidiaries

The Company incorporated Macnetworks, Inc., a Delaware corporation that is
wholly-owned by the Company. In February 2004, Macnetworks was appointed as a
General Partner for Van Pfeiffer, L.P., a New York limited partnership and hedge
fund that primarily invests in private investments in public companies. For its
services, Macnetworks will receive 1.5% of the net assets and 20% of profits, if
any, of Van Pfeiffer. Macnetworks has not, as of May 31, 2005, received any
compensation from Van Pfeiffer.

In 2004, the Company incorporated The Marcellus Group, LLC, a New York limited
liability company. As of May 31, 2005, The Marcellus Group purchased six
commercial building properties in Marcellus, New York for the purposes of office
space for the Company. The buildings are currently being renovated for use by
the Company. A certain portion of the property will be rented for retail
commercial use.

In 2004, the Company also incorporated SpringBay Oil Company, Inc., a New York
corporation. SpringBay Oil Company was formed in 2004 to develop a product that
can be used in the production monitoring of oil wells. As of May 31, 2005, there
has been no material activity in this limited liability company.

In February 2005, the Company incorporated JA Spa, LLC., a New York limited
liability company. JA Spa, LLC was formed to develop a health spa concept within
one of the properties owned by the Company in Marcellus, New York. The business
plans for JA Spa, LLC are currently being prepared.

Subsequent History

In June 2005, the Company formed Monolith Athletic Club, LLC, a New York limited
liability company. Monolith was formed to purchase a franchise and operate a
professional soccer team in the Syracuse, New York area. Monolith has not as of
the date of this report entered into an agreement in furtherance of its business
plans.

On June 29, 2005, Springbay Oil Company, Inc. merged with Monolith Athletic
Club, LLC to form a new corporation, Monolith Athletic Club, Inc.

                                       10

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<CAPTION>


Selected Financial Data


                                                              Six Months ended,
                                                              -----------------
RESULTS OF OPERATIONS:                                  May 31, 2005    May 31, 2004
                                                        ------------    ------------
<S>                                                     <C>             <C>
Total revenues                                          $    919,240    $  1,118,519
Net (loss) income                                       $ (1,267,165)   $    476,403
Net (loss) income attributable to common stockholders   $ (1,267,165)   $    476,403


Basic (loss) income per common share                    $      (0.08)   $       0.03
Diluted (loss) income per common share                  $      (0.08    $       0.03


Weighted average common shares outstanding  Basic         16,869,964      16,278,524
Weighted average common shares outstanding  Diluted       16,869,964      16,964,524



Results of Operations

Three Months ended May 31, 2005 compared with three months ended May 31, 2004.

     Overall Financial Situation. The Company had revenues of $441,590 for the
three month period ended May 31, 2005, a decrease of $348,321 or 44% from the
three month period ended May 31, 2004. The Company's revenues consisted mainly
of the selling of the packages of its services. The Company has cost of revenues
of $187,590 for the three month period ended May 31, 2005, an increase of
$112,329 or 149% from the three month period ended May 31, 2004. The Company's
cost of revenues includes the costs and expenses of its vendors and
subcontractors that provide services on behalf of the Company in connection with
its packages of services. The Company had stockholders' equity at May 31, 2005
in the amount of $529,504, an increase of $1,552,621 from the stockholders'
deficiency at May 31, 2004 of ($1,023,117). This increase is primarily due to
the company's sale of unregistered securities during the second quarter.
Selling, general and administrative expenses increased from the three month
period ended May 31, 2004 by $259,285 or 75% resulting in a loss from operations
of ($349,287) for the three month period ended May 31, 2005. These expenses
consist primarily of professional fees and other corporate expenses, including
business development and general legal activities. Interest expense increased by
$14,853 for the three month period ended May 31, 2005 from $21,237 for the three
month period ended May 31, 2004 primarily due to the Company's debt financing in
October 2004.

     Revenues. The Company had revenues of $441,590 for the three month period
ended May 31, 2005, a decrease of $348,321 or 44% from the three month period
ended May 31, 2004.

     Selling, General and Administrative Expenses. Selling general and
administrative expenses increased from the three month period ended May 31, 2004
by $259,285 or 75%, resulting in a loss from operations of $349,287 for the
three month period ended May 31, 2005. These expenses consist primarily of
professional fees and other corporate expenses, including business development
and general legal activities.



Six Months ended May 31, 2005 compared with six months ended May 31, 2004.

     Overall Financial Situation. The Company had revenues of $919,240 for the
six month period ended May 31, 2005, a decrease of $199,279 or 18% from the six
month period ended May 31, 2004. The Company's revenues consisted mainly of the
selling of the packages of its services. The Company has cost of revenues of
$303,983 for the six month period ended May 31, 2005, an increase of $175,323 or
136% from the six month period ended May 31, 2004. The Company's cost of

                                       11
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<PAGE>


revenues includes the costs and expenses of its vendors and subcontractors that
provide services on behalf of the Company in connection with its packages of
services. The Company had stockholders' equity at May 31, 2005 in the amount of
$529,504, an increase of $1,552,621 from the stockholders' deficiency at May 31,
2004 of ($1,023,117). This increase is primarily due to the company's sale of
unregistered securities during the second quarter. Selling, general and
administrative expenses increased from the six month period ended May 31, 2004
by $541,187 or 104%, resulting in a loss from operations of $445,409 for the six
month period ended May 31, 2005. Interest expense increased by $19,982 for the
six month period ended May 31, 2005 from $42,704 for the six month period ended
May 31, 2004 primarily due to the Company's debt financing in October 2004.

     Revenues. The Company had revenues of $919,240 for the six month period
ended May 31, 2005, a decrease of $199,279 or 18% from the six month period
ended May 31, 2004.

     Selling, General and Administrative Expenses. Selling, general and
administrative expenses decreased from the six month period ended May 31, 2004
by $541,187 or 104%, resulting in a loss from operations of $445,409 for the six
month period ended May 31, 2005. These expenses consist primarily of
professional fees and other corporate expenses, including business development
and general legal activities]


Summary of Critical Accounting Policies; Significant Judgments and Estimates

Our discussion and analysis of our financial condition and results of operations
are based upon our Consolidated Financial Statements, which have been prepared
in accordance with accounting principles generally accepted in the United
States. The preparation of these financial statements requires us to make
significant estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent assets
and liabilities. These items are regularly monitored and analyzed by management
for changes in facts and circumstances, and material changes in these estimates
could occur in the future. Changes in estimates are recorded in the period in
which they become known. We base our estimates on historical experience and
various other assumptions that we believe to be reasonable under the
circumstances. Actual results may differ from our estimates if past experience
or other assumptions do not turn out to be substantially accurate.

A summary of those accounting policies that we believe are most critical to
fully understanding and evaluating our financial results is set forth below.
This summary should be read in conjunction with our Annual Report on Form 10-KSB
for the year ended November 30, 2004.

Revenue Recognition and Allowance for Doubtful Accounts. We recognize revenue
from the provision of professional services under written service contracts with
our clients. We derive our revenue from fixed-price, fixed-time contracts.
Revenue generated from these contracts is recognized based on the ratio of labor
hours incurred to estimated total labor hours. This method is used because
reasonably dependable estimates of the revenues and costs applicable to various
stages of a contract can be made, based on historical experience and milestones
set in the contract.

Revenues from fee-based contracts with terms greater than one month are
recognized ratably over the life of the contract. Advertising revenues are
recognized over the period of the related ad.

Certain agreements with customers provide for payment in the form of restricted
equity securities of publicly traded companies. In accordance with Financial
Accounting Standards Board Statement No. 123(R), "Accounting for Stock Based

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<PAGE>


Compensation", revenue recognized from these transactions is based on the value
of similar services rendered to other customers for whom the Company receives
payment in cash.

If we do not accurately estimate the resources required or the scope of work to
be performed for a contract or we do not manage the project properly within the
planned time period, then we may recognize a loss on the contract. Provisions
for estimated losses on uncompleted contracts are made on a contract-by-contract
basis and are recognized in the period in which such losses are determined. We
have committed unanticipated additional resources to complete projects in the
past, which has resulted in lower than anticipated profitability or losses on
those contracts. We expect that we will experience similar situations in the
future. In addition, we may fix the price for some projects at an early stage of
the process, which could result in a fixed price that turns out to be too low
and, therefore, could adversely affect our business, financial condition and
results of operations.

In some instances during the quarter ended May 31, 2005, we provided services to
clients in exchange for equity instruments of the client. We measure the fair
value of the equity instrument on the date the parties come to a mutual
understanding of the terms of the arrangement and a commitment for performance
by us to earn the equity instruments is reached, or when the equity is earned,
whichever occurs earlier.

Liquidity and Capital Resources

In February 2005, the Company sold 1,000,000 shares of its common stock to one
individual for two million dollars ($2,000,000). The shares of common stock are
restricted. The issuance of the securities in the transaction were deemed to be
exempt from registration under the Securities Act of 1933, as amended, in
reliance on Section 4(2) of the Securities Act and Regulation D promulgated
thereunder as transactions by an issuer not involving any public offering.

In October 2004, Marcellus Group, LLC, the Company's wholly owned subsidiary,
borrowed one million dollars ($1,000,000) from Crown Mill Restoration
Development LLC, a New York limited liability company wholly owned by V. William
Lucchetti, Jr., the Company's Chief Executive Officer, Chairman of the Board of
Directors and 92% shareholder of the Company, pursuant to a promissory note. The
terms of the promissory note provides that interest accrues at a rate of eight
percent (8%) and the principal and interest is payable as follows: (i) monthly
installments of $25,947 (representing accrued interest and $500,000 of
principal) up to and including November 1, 2006; and (ii) $500,000 payment due
on November 1, 2006.

As of May 31, 2005, we had $891,333 in cash and cash equivalents.

Current and Future Financing Needs

We have spent, and expect to continue to spend, substantial amounts in
connection with growing our customer base. We have 33 full time employees and 39
part time employees. We do not engage any consultants.

Based on our current plans, we believe that our cash and cash equivalents and
cash flows (from increasing revenues) will be sufficient to enable us to meet
our planned operating needs. However, the actual amount of funds we may need to
operate is subject to many factors, some of which are beyond our control.

                                       13

<PAGE>


These factors include the following:

     o    costs associated with any acquisitions targets;

     o    costs associated with marketing our services; and

     o    our ability to grow our customer base and retain our current
          customers.

We have based our belief of not requiring any additional funds on assumptions
that may prove to be wrong.

                                       14

<PAGE>


ITEM 3.     CONTROLS AND PROCEDURES
            -----------------------

Within the 90-days prior to the filing of this quarterly report, we carried out
an evaluation, under the supervision and with the participation of our Chief
Executive Officer and Executive Vice President/Director, of the effectiveness of
the design and operation of our disclosure controls and procedures. Based on
this evaluation, our Chief Executive Officer and Vice President/Director
concluded that our disclosure controls and procedures are effective in timely
alerting them to material information required to be included in this quarterly
report.

There have been no significant changes in our internal controls or in other
factors that could significantly affect internal controls subsequent to our most
recent evaluation of our internal controls.

                                       15

<PAGE>


                                    PART II.
                                OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS
            -----------------

The Company is involved in various legal proceedings and claims incident to the
normal conduct of its business. The Company believes that such legal proceedings
and claims, individually and in the aggregate, are not likely to have a material
adverse effect on its financial position or results of operations.

ITEM 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS
            -----------------------------------------

In February 2005, the Company sold 1,000,000 shares of its common stock to one
accredited individual for two million dollars ($2,000,000). The shares of common
stock are restricted. The issuance of the securities in the transaction were
deemed to be exempt from registration under the Securities Act of 1933, as
amended, in reliance on Section 4(2) of the Securities Act and Regulation D
promulgated thereunder as transactions by an issuer not involving any public
offering.

ITEM 3.     DEFAULTS BY THE COMPANY UPON ITS SENIOR SECURITIES
            --------------------------------------------------

During March, April and May 2003, pursuant to a loan restructuring of the
$100,000 February 28, 2003 six month promissory note, the $100,000 January 14,
2002 120-day promissory note (as amended), the $100,000 November 16, 2001 60-day
promissory note (as amended), and other notes (as included below) with an
aggregate principal amount of $97,997, the Company received an additional
$355,000 from the holder of the notes who is also a shareholder of the Company.
Pursuant to the restructuring, the Company issued this shareholder (the holder
of the notes) a convertible promissory note with an aggregate principal amount
of $752,997 plus interest accrued pursuant to the terminated notes. In addition,
pursuant to the loan restructuring, the holder of the note is entitled to be
issued warrants to purchase common stock of the Company in an amount to be
agreed upon between the Company and such holder. The convertible note bears
interest at a rate of 8% per annum with a maturity date of May 30, 2004.
Pursuant to the terms of the convertible note, prior to May 30, 2004, we may
convert the balance due together with accrued interest into shares of common
stock. The conversion ratio is 2.50. Each of the prior notes, the $100,000
February 28, 2003 six month promissory note, the $100,000 January 14, 2002
10-day promissory note (as amended), the $100,000 November 16, 2001 60-day
promissory note (as amended), and the other notes with an aggregate principal
amount of $97,997, have been cancelled. As of July 1, 2005, the note has not
been repaid, but the Company is in the process of restructuring the note with
the individual.

Convertible promissory notes totaling $174,059 bear interest at a rate of 8% per
annum with maturity dates that have expired. Pursuant to the terms of the
convertible notes, if the Company does not prepay the notes prior to their
expiration, on the expiration date, the Company may convert the balance due
together with accrued interest into shares of the Company's common stock. The
conversion ratio for these notes is the greater of : (i) the amount that is
equal to the product of the closing bid price per share for the Common Stock, as
reported on the over-the-counter electronic bulletin board, or such other public
market that the Company's Common Stock is then traded and seventy-five percent
(75%); and (ii) 3.50. The Company is currently in negotiations with these note
holders with respect to the conversion of notes into common stock and expects to
convert the notes within 30 days.

                                       16

<PAGE>


ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
            ---------------------------------------------------
None.

ITEM 5.     OTHER INFORMATION
            -----------------
None.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K
            --------------------------------
a)  Exhibits

Exhibit 31.1        Certification of V. William Lucchetti pursuant to Rule
                    13-14(a) and Item 307 of Regulation SB

Exhibit 32.1        Certification by V. William Lucchetti Pursuant to the 18
                    U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
                    the Sarbanes-Oxley Act of 2002

b) Reports on Form 8-K

     None

                                       17

<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                            THE MACREPORT.NET, INC.
                                            -----------------------
                                                 (Registrant)


                                            By:  /s/  Vito W. Lucchetti, Jr.
                                              ---------------------------------
                                                      Vito W. Lucchetti, Jr.
                                                      Chairman,
                                                      Chief Executive Officer
                                                      and President
                                                      (Principal Executive
                                                      Officer and Principal
                                                      Accounting and Financial
                                                      Officer)


Date:  July 15, 2005

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