SECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549

**FORM 10-QSB**

(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended – December 31, 2004

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACTFor the transition period from                                                            to                                                         

***AERO MARINE TECHNOLOGIES, INC.*******(Exact name of registrant as it appears in its charter)

000-49698Commission File Number)

| NEVADA                   | 000-49698                | 98-0353007                              |
|--------------------------|--------------------------|-----------------------------------------|
| (State of incorporation) | (Commission File Number) | (IRS Employer Identification No.)  |

| One World Trade Center, 121 S.W. Salmon Street, Suite 1100, Portland,Oregon | 97204      |
|-----------------------------------------------------------------------------|------------|
| (Address of principal executive office)                                     | (Zip Code) |

(503) 471-1348(Registrant’s telephone number, including area code)

199 Trade Zone Drive, Ronkonkoma, New York  11779(Former name, former address and former fiscal year, if changed since last report**)**

With Copy To:Patrick C. Clary, Esq.Patrick C. Clary, Chartered7201 West Lake Mead BoulevardSuite 503Las Vegas, Nevada 89128(702) 382-0813

Securities registered pursuant to Section 12 (b) of the Act:  None

Securities registered pursuant to Section 12 (b) of the Act:  Class A Common Stock$0.001 Par Value

Indicate by check mark whether the registrant (1) has filed all reports to be filed bySection 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that theregistrant was required to file such reports) and  (2) has been subject to such filing requirements for the past 90days.  Yes X No

At the end of the quarter ending December 31, 2004 there were 28,299,166 issued andoutstanding shares of the registrant’s common stock.

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PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE COMPANY) CONDENSEDCONDENSED CONSOLIDATED FINANCIALSDECEMBER 31, 2004 AND 2003**

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**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE COMPANY) CONDENSEDINDEX TO CONDENSED CONSOLIDATED FINANCIALS**

**(UNAUDITED)**
|                                                                                                                                                                                                                                                                    | **PAGE(S)** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
| Condensed Consolidated Financial Statements:                                                                                                                                                                                                                  |             |
|                                                                                                                                                                                                                                                                    |             |
|           Balance Sheet at December 31,2004                                                                                                                                                                 | 1           |
|                                                                                                                                                                                                                                                                    |             |
|           Statements of Operations forthe six and three months ended December 31, 2004 and 2003            (With Cumulative totals since Inception)  | 2           |
|                                                                                                                                                                                                                                                                    |             |
|            Statements of Cash Flowsfor the six months ended December 31, 2004 and 2003            (With Cumulative totals since Inception)      | 3           |
|                                                                                                                                                                                                                                                                    |             |
| Notice to the Condensed Consolidated Financial Statements                                                                                                                                                                                                          | 4-11        |

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**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE COMPANY)CONDENSED CONSOLIDATED BALANCE SHEETSDECEMBER 31, 2004 (UNAUDITED)**
| **ASSETS**                                                             |                                                               |
|------------------------------------------------------------------------|---------------------------------------------------------------|
| Current Assets:                                                        |                                                               |
|   Cash and cash equivalents                                       |   $        2,418 |
|   Prepaid expenses and other current assets                       |          22,670  |
|                                                                        |                                                               |
|     Total Current Assets                                |          25,088  |
|                                                                        |                                                               |
|   Property and equipment, net of depreciation                     |          11,456  |
|                                                                        |                                                               |
|   Intangible assets, net of impairment and amortization           |      3,050,000                            |
|                                                                        |                                                               |
| **TOTAL ASSETS**                                                       |   $  3,086,544                                      |
|                                                                        |                                                               |
| **LIABILITIES AND STOCKHOLDERS' EQUITY(DEFICIT)**                      |                                                               |
| **LIABILITIES**                                                        |                                                               |
| Current Liabilities:                                                   |                                                               |
|   Accounts payable and accrued expenses                           |   $  3,055,311                                      |
|   Due to shareholders                                             |         624,499            |
|   Due to related company                                          |         314,339            |
|                                                                        |                                                               |
|       Total Current Liabilities               |      3,994,149                            |
|                                                                        |                                                               |
| **       Total Liabilities**                  |      3,994,149                            |
|                                                                        |                                                               |
| **STOCKHOLDERS' EQUITY (DEFICIT)**                                     |                                                               |
|   Preferred stock, $.001 Par Value; 100,000,000 sharesauthorized  |                                                               |
|     no shares issued and outstanding                    |                                                               |
|   Common stock, $.001 Par Value; 100,000,000 sharesauthorized     |                                                               |
|     28,299,166 shares issued and outstanding            |          28,299  |
|   Additional paid-in capital                                      |      5,526,708                            |
|   Deficit accumulated during the development stage                |     (6,462,612)                                |
|                                                                        |                                                               |
| **      Total Stockholders' Equity(Deficit)** |        (907,605)                |
|                                                                        |                                                               |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)**               |   $  3,086,544                                      |

The accompanying notes are an integral part of the condensed consolidatedfinancial statements.

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**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE COMPANY)CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE SIX AND THREE MONTHS ENDED DECEMBER 31, 2004 AND 2003 (UNAUDITED)(WITH CUMULATIVE TOTALS SINCE INCEPTION)**
|                                                                  | **SIX MONTHS ENDED**                                                                                           | **THREE MINTHS ENDED** | **CUMULATIVE TOTALS**                                                                                                                              |
|------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                  | **DECEMBER 31**                                                                                                |                        | **DECEMBER 31**                                                                                                                                    | **DECEMBER 30, 2002 through** |
|                                                                  | **2004**                                                                                                       |                        | **2003**                                                                                                                                           |  | **2004** |  | **2003** |  | **DECEMBER 31, 2004** |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **OPERATING REVENUES**                                           |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
|   Sales                                                     |  $                -            |                        |  $                  -                                    |  |  $                 - |  |  $                 - |  |  $                    - |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **COST OF SALES**                                                |                  -   |                        |                        -   |  |                  -   |  |                  -   |  |                      -   |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **GROSS PROFIT**                                                 |                  -   |                        |                       -    |  |                  -   |  |                  -   |  |                      -   |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **OPERATING EXPENSES**                                           |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
|    Compensation expense                                |                  -             |                        |              170,407                                                                   |  |                    - |  |           78,833 |  |             432,969 |
|    Professional and consulting fees                    |       174,500                                                                         |                        |              132,885                                                                   |  |           82,000 |  |           38,836 |  |         3,838,526 |
|    Advertising and promotions                          |                  -             |                        |                    955                              |  |                    - |  |                 955 |  |               44,891 |
|    Rent                                                |                   -       |                        |                26,683                                                        |  |                     - |  |           26,683 |  |               42,783 |
|    General and administrative expenses                 |        40,062                                                                    |                        |                66,672                                                        |  |           24,562 |  |           45,787 |  |             155,505 |
|    Depreciation and amortization                       |             287                                         |                        |                24,888                                                        |  |                 287 |  |           12,444 |  |               39,127 |
| **       Total OperatingExpenses** |      214,849                                                                               |                        |              422,490                                                                   |  |         106,849 |  |         203,538 |  |         4,553,801 |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **NET LOSS BEFORE OTHER (EXPENSES)**                             |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **   AND PROVISION FOR INCOME TAXES**                  |     (214,849)                                                                                   |                        |             (422,490)                                                                       |  |        (106,849) |  |        (203,538) |  |        (4,553,801) |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **OTHE (EXPENSES)**                                              |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
|    Interest expense                                    |        (3,351)                                                                   |                        |                         -  |  |           (1,851) |  |                  -   |  |             (20,481) |
|    Impairment of property and equipment                |                   -       |                        |                         -  |  |                  -   |  |                  -   |  |          (107,964) |
|    Impairment of goodwill and intangibles              |     (812,500)                                                                                   |                        |                         -  |  |                  -   |  |                  -   |  |        (1,513,847) |
|    Impairment of inventory                             |                   -       |                        |                         -  |  |                  -   |  |                  -   |  |          (266,519) |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **       Total Other Expenses**    |     (815,851)                                                                                   |                        |                         -  |  |           (1,851) |  |                    - |  |        (1,908,811) |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **NET LOSS BEFORE PROVISION**                                    |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **     FOR INCOME TAXES**                    |   (1,030,700)                                                                                             |                        |             (422,490)                                                                       |  |        (108,700) |  |        (203,538) |  |        (6,462,612) |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
|   Provision for income taxes                                |                   -       |                        |                         -  |  |                    - |  |                    - |  |                        - |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **NET LOSS**                                                     |   $ (1,030,700)                                                                                           |                        |   $        (422,490)                                                                                  |  |   $    (108,700) |  |   $    (203,538) |  |   $    (6,462,612) |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **WEIGHTED AVERAGE COMMON SHARES**                               |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **   OUTSTANDING**                                     |        19,764,859                                                           |                        |        49,994,922                                                                                               |  |     28,234,413 |  |     49,994,922 |  |  |
|                                                                  |                                                                                                                |                        |                                                                                                                                                    |  |  |  |  |  |  |
| **NET LOSS PER COMMON SHARE OUTSTANDING**                        |  $           (0.0521)                                   |                        |  $           (0.0085)                                                                       |  |   $      (0.0038) |  |   $      (0.0041) |  |  |

****

The accompanying notes are an integral part of the condensed consolidatedfinancial statements.

<Page> 2

****

**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE COMPANY)CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE THREE MONTHS ENDED DECEMBER 31, 2004 AND 2003 (UNAUDITED)(WITH CUMULATIVE TOTALS SINCE INCEPTION)**
|                                                                                   |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |                                                                                                                                                                                                                       | **Cumulative Totals**                                                                                                                                                                                                                              |
|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                   |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |                                                                                                                                                                                                                       | **December 30, 2002 through**                                                                                                                                                                                                                      |
|                                                                                   |                                                                                                                                       | **2004**                                                                                                                              |                                                                                                                           | **2003**                                                                                                                  |                                                                                                                                                                                                                       | **December 31, 2004**                                                                                                                                                                                                                              |
|                                                                                   |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                    |
| **CASH FLOWS FROM OPERATING ACTIVITIES**                                          |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |
|    Net loss                                                             |                                                                                                                                       |   $    (1,030,700)                                                                                                |                                                                                                                           |   $     (203,538)                                                                                |                                                                                                                                                                                                                       |  $                     (6,462,612)                                                                                                   |
|    Adjustments to reconcile net loss to net cash                        |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |
|      used in operating activities                             |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                    |
|       Prior period adjustment                            |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |        (137,283)                                                                       |                                                                                                                                                                                                                       |                            (137,283)                                                                        |
|      Common stock issued for services                         |             109,000                                                            |                                                                                                                                       |                     - |                                                                                                                           |                          3,459,000                                                       |
|      Depreciation and amortization                            |                                                                                                                                       |                    287                      |                                                                                                                           |            12,444                                                       |                                                                                                                                                                                                                       |                               39,127                                                         |
|      Impairment of property and equipment                     |                       - |                                                                                                                                       |                     - |                                                                                                                           |                             107,964                                       |
|      Impairment of goodwill and intangibles                   |             812,500                                                            |                                                                                                                                       |                     - |                                                                                                                           |                          1,513,847                                                       |
|      Impairment of inventory                                  |                                                                                                                                       |                       - |                                                                                                                           |                     - |                                                                                                                                                                                                                       |                             266,519                                                                    |
| **  Changes in assets and liabilities**                                      |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                    |
|      (Increase) in inventory                                  |                                                                                                                                       |                       - |                                                                                                                           |        (266,519)                                                                       |                                                                                                                                                                                                                       |                            (266,519)                                                                        |
|      Decrease in prepaid expenses and other currentassets     |                       - |                                                                                                                                       |                     - |                                                                                                                           |                                    599 |
|      Increase in accounts payable and accruedexpenses         |         2,998,351                                                                             |                                                                                                                                       |           49,159                                                        |                                                                                                                           |                          3,515,419                                                       |
|      Total adjustments                                        |                                                                                                                                       |         3,920,138                                                                             |                                                                                                                           |        (342,199)                                                                       |                                                                                                                                                                                                                       |                          8,498,673                                                                                    |
| **     Net cash (used in) operatingactivities**               |         2,889,438                                                                             |                                                                                                                                       |        (545,737)                                                                       |                                                                                                                           |                          2,036,061                                                       |
| **CASH FLOWS FROM INVESTING ACTIVITIES**                                          |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |
|    Acquisition of business                                              |                                                                                                                                       |                       - |                                                                                                                           |                     - |                                                                                                                                                                                                                       |                         (1,018,814)                                                                                        |
|    Acquisitions of fixed assets                                         |                                                                                                                                       |        (3,011,743)                                                                                      |                                                                                                                           |        (870,821)                                                                       |                                                                                                                                                                                                                       |                         (3,038,510)                                                                                        |
| **      Net cash (used in) investingactivities**         |        (3,011,743)                                                                                      |                                                                                                                                       |        (870,821)                                                                       |                                                                                                                           |                         (4,057,324)                                                           |
| **CASH FLOWS FROM FINANCING ACTIVITES**                                           |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |
|    Proceeds from the sale of stock                                      |                                                                                                                                       |                     -   |                                                                                                                           |       1,196,977                                                                                  |                                                                                                                                                                                                                       |                          1,084,843                                                                                    |
|    Advances from shareholders, net                                      |                                                                                                                                       |             124,723                                                            |                                                                                                                           |         425,859                                                                   |                                                                                                                                                                                                                       |                             624,499                                                                    |
|    Advances from related company, net                                   |                     -   |                                                                                                                                       |           28,875                                                        |                                                                                                                           |                             314,339                                       |
| **       Net cash provided by financingactivities** |             124,723                                                            |                                                                                                                                       |       1,651,711                                                                                  |                                                                                                                           |                          2,023,681                                                       |
| **NET INCREASE IN**                                                               |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                    |
| **    CASH AND CASH EQUIVALENTS**                                  |                                                                                                                                       |                 2,418                                      |                                                                                                                           |         235,153                                                                   |                                                                                                                                                                                                                       |                                 2,418                                              |
| **CASH AND CASH EQUIVALENTS -**                                                   |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                    |
| **    BEGINNING OF YEAR**                                          |                                                                                                                                       |                       - |                                                                                                                           |                     - |                                                                                                                                                                                                                       |                                          - |
| **CASH AND CASH EQUIVALENTS - END OF YEAR**                                       |  $             2,418                                                 |                                                                                                                                       |   $      235,153                                                                            |                                                                                                                           |  $                             2,418                            |
| **SUPPLEMENTAL CASH FLOW INFORMATION**                                            |                                                                                                                                       |                                                                                                                                       |                                                                                                                           |                                                                                                                           |
|   Cash paid during the year for interest                                     |                                                                                                                                       |  $                  -             |                                                                                                                           |   $                -            |                                                                                                                                                                                                                       |  $                                190                                         |
| **SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION**                                |                                                                                                                                       |                                                                                                                                       |
|    Common stock issued for services                                     |                                                                                                                                       |   $        109,000                                                                       |                                                                                                                           |  $                -             |                                                                                                                                                                                                                       |  $                      3,459,000                                                                                               |
|      Impairment of property and equipment                     |  $                  -             |                                                                                                                                       |  $                -             |                                                                                                                           |  $                         107,964                                                  |
|      Impairment of goodwill and intangibles                   |   $        812,500                                                                       |                                                                                                                                       |  $                -             |                                                                                                                           |  $                      1,513,847                                                                  |
|      Impairment of inventory                                  |                                                                                                                                       |  $                  -             |                                                                                                                           |  $                -             |                                                                                                                                                                                                                       |  $                         266,519                                                                               |
|      Conversion of payables to equity                         |                                                                                                                                       |  $                  -             |                                                                                                                           |  $                -             |                                                                                                                                                                                                                       |  $                         170,285                                                                               |

The accompanying notes are an integral part of the condensed consolidatedfinancial statements.

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**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE ENTERPRISE)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 2004 AND 2003**
```

```

1.             ORGANIZATIONAND BASIS OF PRESENTATION

The accompanying unaudited interim condensed consolidated financial statements have beenprepared without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission.  Certaininformation and footnote disclosures normally included in financial statements prepared in accordance with accounting principlesgenerally accepted in the United States of America have been condensed or omitted, pursuant to such rules and regulations. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto of theCompany included in the Company's Annual Report on Form 10-KSB for the year ended June 30, 2004.  In the opinion ofManagement, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financialposition, results of operations and cash flows for the interim periods presented have been included. Operating results for theinterim periods are not necessarily indicative of the results that may be expected for the respective full year.

Princeton Ventures, Inc. (the "Company") was incorporated in the State of Nevada on May10, 2001.  The Company had not commenced operations.  On May 30, 2003, the Company exchanged 37,944,922 shares of itscommon stock for all of the issued and outstanding shares of Aero Marine Engine Corp. ("Aero").  Aero was formed on December30, 2002.  Aero had no operations and was formed to acquire the assets of Dyna-Cam Engine Corporation.  The Companychanged its name from Princeton Ventures, Inc. to Aero Marine Engine, Inc.

At the time that the transaction was agreed to, the Company had 20,337,860 common sharesissued and outstanding.  In contemplation of the transaction with Aero, the Company's two primary shareholders cancelled9,337,860 shares of the Company's common stock held by them, leaving 11,000,000 shares issued and outstanding.  As a result ofthe acquisition of Aero, there were 48,944,922 common shares outstanding, and the former Aero stockholders held approximately 78%of the Company's voting stock.  For financial accounting purposes, the acquisition was a reverse acquisition of the Company byAero, under the purchase method of accounting, and was treated as a recapitalization with Aero as the acquirer.  Accordingly,the historical financial statements have been restated after giving effect to the May 30, 2003, acquisition of the Company. The financial statements have been prepared to give retroactive effect to December 30, 2002, the date of inception of Aero, of thereverse acquisition completed on May 30, 2003, and represent the operations of Aero.  Consistent with reverse acquisitionaccounting: (i) all of Aero's assets, liabilities, and accumulated deficit, are reflected at their combined historical cost (as theaccounting acquirer) and (ii) the preexisting outstanding shares of the Company (the accounting acquiree) are reflected at theirnet asset value as if issued on May 30, 2003.

<Page> 4

```
**AERO MARINE ENGINE, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND 2003 (Continued)**
```

Additionally, on June 30, 2003, the Company acquired the operating assets of Dyna-CamEngine Corp. ("Dyna-Cam").  Dyna-Cam was a development stage enterprise developing a unique, axial cam-drive, free piston,internal combustion engine.  Dyna-Cam intended to produce and sell the engine primarily for aircraft and marineapplications.  Dyna-Cam had not generated significant revenues at the time of the Company's acquisition.

The accompanying financial statements represent the consolidated financial position andresults of operations of the Company and include the accounts and results of operations of the Company and Aero, its wholly ownedsubsidiary.  The purchase of the operating assets of Dyna-Cam occurred on June 30, 2003, and the effect of that purchase isincluded in the accompanying balance sheet at September 30, 2004 and 2003. The consolidated entity is considered a developmentstage enterprise as of September 30, 2004.

The accompanying condensed consolidated financial statements have been prepared assumingthat the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilitiesin the normal course of business.  The Company faces many operating and industry challenges.  The Company intends to dobusiness in a highly competitive industry.  Future operating losses for the Company are anticipated and the proposed plan ofoperations, even if successful, may not result in cash flow sufficient to finance the initiation and continued expansion of itsbusiness.  These factors raise substantial doubt about the Company's ability to continue as a going concern.  Realizationof assets is dependent upon continued operations of the Company, which in turn is dependent upon management's plans to meet itsfinancing requirements, as discussed below, and the success of its future operations.  The condensed consolidated financialstatements do not include any adjustments that might result from this uncertainty.

The Company, under its new management, has raised over $1,200,000 in cash to effect theacquisition of Dyna-Cam.  Management believes that significant capital is required to adequately develop the Dyna-Cam engineand begin operations.  In the six months ended December 31, 2004, shareholders of the Company have advanced a net of $124,723to assist in funding the operations.

The Company will require additional capital.  Although the current majoritystockholders of the Company, as well as an affiliate, have made verbal commitments, with no guarantees, to continue to fund thedevelopment and sales and marketing efforts of the Company, if alternate financing cannot be obtained, there can be no assurancethat any new capital would be available to the Company or that adequate funds for the Company's operations, whether from theCompany's revenues, financial markets, or other arrangements will be available when needed or on terms satisfactory to the Company.The failure of the Company to obtain adequate additional financing will require the Company to delay, curtail or scale back some orall of its research and development programs, sales, marketing efforts and manufacturing operations.

<Page> 5

```
**AERO MARINE ENGINE, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND 2003 (Continued)**
```

 

2.             SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES

Cash includes all short-term highly liquid investments that are readily convertible toknown amounts of cash and have original maturities of three months or less.

Principles of Consolidation: The condensed consolidated financial statements include theaccounts of the Company and its wholly owned subsidiary, Aero Marine Engine Corp.  All significant inter-company accounts andtransactions are eliminated.

Inventories consisted of raw materials and purchased parts used in the manufacturing ofengines.  The Company records its inventory at the lower of cost (first-in, first-out) or market. The Company has determinedthat all of the inventory is obsolete and has been written off.

Property and equipment is stated at cost less accumulated depreciation.

Depreciation is recorded on a straight-line basis over the estimated useful lives of theassets ranging from three to seven years.  The depreciation expense was $287 and $24,888 for the six months ended December 31,2004 and 2003. All remaining amounts had been written off as of June 30, 2004.  Depreciation for the six months ended December31, 2004 is attributed to the new acquisitions made during the period.

Income taxes: The Company provides for income taxes based on the provisions of Statementof Financial Accounting Standards No. 109, Accounting for Income Taxes, which, among other things, requires that recognition ofdeferred income taxes be measured by the provisions of enacted tax laws in effect at the date of financial statements.

Financial Instruments: Financial instruments consist primarily of cash and obligationsunder accounts payable and accrued expenses.  The carrying amounts of cash, accounts payable and accrued expenses approximatefair value because of the short maturity of those instruments. The Company has applied certain assumptions in estimating these fairvalues. The use of different assumptions or methodologies may have a material effect on the estimates of fair values.

Net loss per share is calculated using the weighted average number of shares of commonstock outstanding during the year as prescribed by the provisions of SFAS No. 128 Earnings Per Share.

Use of Estimates:  The preparation of financial statements in conformity withaccounting principles generally accepted in the United States of America requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results coulddiffer from those estimates.

<Page> 6
```
**AERO MARINE ENGINE, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND 2003 (Continued)**
```

Intangible Assets: Intangible assets are comprised of goodwill, certain finite lifeintangible assets purchased in the acquisition of the Dyna-Cam operating assets, and intellectual property.  These assetsrepresent the value of the difference between the purchase price of the acquired business and the fair value of the identifiabletangible net assets.  The Company adopted Statement of Financial Accounting Standard ("SFAS") No. 142, Goodwill and OtherIntangible Assets.  The Company does not amortize goodwill but rather annually evaluates the carrying value of goodwill forimpairment, in accordance with the provisions of SFAS No. 142.  The finite life of the intangibles will be amortized over 7 to10 years.

Recently Issued Accounting Pronouncements:

In July 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated With Exit orDisposal Activities".  This Standard requires costs associated with exit or disposal activities to be recognized when they areincurred.  The requirements of SFAS No. 146 apply prospectively after June 30, 2003, and as such, the Company cannotreasonably estimate the impact of adopting these new rules.

In October 2002, the FASB issued SFAS No. 147, "Acquisitions of Certain FinancialInstitutions". SFAS No. 147 is effective October 1, 2002. The adoption of SFAS No. 147 did not have a material effect on theCompany's financial statements.

In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on DerivativeInstruments and Hedging Activities," effective for contracts entered into or modified after June 30, 2003. This amendment clarifieswhen a contract meets the characteristics of a derivative, clarifies when a derivate contains a financing component and amendscertain other existing pronouncements. The Company believes the adoption of SFAS No. 149 will not have a material effect on theCompany's financial statements.

In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial Instrumentswith Characteristics of both Liabilities and Equity." SFAS No. 150 is effective for financial instruments entered into or modifiedafter May 31, 2003, and otherwise is effective at the beginning of the first interim period beginning after June 15, 2003. SFAS No.150 requires the classification as a liability of any financial instruments with a mandatory redemption feature, an obligation torepurchase equity shares, or a conditional obligation based on the issuance of a variable number of its equity shares. The Companydoes not have any authorized preferred shares or other financial instruments with a mandatory redemption feature. The Companybelieves the adoption of SFAS No. 150 will not have a material effect on the Company's financial statements.

<Page> 7

**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE ENTERPRISE)|NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 2004 AND 2003 (Continued)**

In November 2002, the FASB issued FASB Interpretation No. 45, "Guarantor's Accounting andDisclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others" (FIN 45).  FIN 45 clarifiesthe requirements for a guarantor's accounting for and disclosure of certain guarantees issued and outstanding. The initialrecognition and initial measurement provisions of FIN 45 are applicable to guarantees issued or modified after December 31,2002.  The disclosure requirements of FIN 45 are effective for financial statements for periods ending after December 15,2002. The adoption of FIN 45 did not impact the Company's financial statements.

In January 2003, the FASB issued FIN No. 46, "Consolidation of Variable Interest Entities"(FIN 46). FIN No. 46 states that companies that have exposure to the economic risks and potential rewards from another entity'sassets and activities have a controlling financial interest in a variable interest entity and should consolidate the entity,despite the absence of clear control through a voting equity interest. The consolidation requirements apply to all variableinterest entities created after January 31, 2003. For variable interest entities that existed prior to February 1, 2003, theconsolidation requirements are effective for annual or interim periods beginning after June 15, 2003. Disclosure of significantvariable interest entities is required in all financial statements issued after January 31, 2003, regardless of when the variableinterest was created. The adoption of FIN No. 46 did not have a material impact on the Company's financial statements.

Impairment of long-lived assets are assessed by the Company for impairment whenever thereis an indication that the carrying amount of the asset may not be recoverable.  Recoverability of these assets is determinedby comparing the forecasted undiscounted cash flows generated by those assets to the assets' net carrying value.  The amountof impairment loss, if any, is measured as the difference between the net book value of the assets and the estimated fair value ofthe related assets.  The Company revalued its long-term assets at September 30, 2004 and charged earnings $812,500.

3.             STOCKHOLDERS'EQUITY (DEFICIT)

The Company has 100,000,000 shares of common stock authorized, par value $.001. As ofDecember 31, 2004, the Company has 28,299,166 shares of common stock issued and outstanding.

The Company issued 37,944,922 shares of its common stock in connection with theacquisition of Aero Marine Engine Corp.  Under reverse acquisition accounting, these shares are reflected as issued on thedate of inception and valued at the book value of the net assets of as of the date of the transaction.

<Page> 8

```
**AERO MARINE ENGINE, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND 2003 (Continued)**
```

Aero was incorporated in contemplation of the reverse acquisition of the Company as wellas the Dyna-Cam acquisition.  A total of 38,944,922 common shares were issued in the reverse merger transaction. However, 1,000,000 of those shares were designated for the Dyna-Cam acquisition.  (See Subsequent Event Footnote.) The Companyraised $1,218,598 as part of its initial capitalization.  This capital was raised among four individuals in contemplation oftheir receiving the 37,944,922 shares of the Company's common stock in connection with the acquisition of Aero Marine EngineCorp.  The value of the 1,000,000 shares issued in connection with the Dyna-Cam purchase was determined to be $0.032 pershare, which is the price per share paid by the investors that acquired the 37,944,922 shares for cash.

In connection with the reverse acquisition transaction with Aero, the Company's twocontrolling shareholders at that time cancelled 9,337,860 shares of common stock held by them.  Upon completion of thiscancellation, the Company had 11,000,000 shares of common stock remaining outstanding prior to the reverse acquisitiontransaction.

On January 22, 2004, the Company issued 5,000,000 shares of its common stock in exchangefor consulting services rendered to the company pursuant to an S-8 registration statement. These shares were valued at $3,350,000($.67 per share), the fair value of the stock at the date of issuance.

On July 30, 2004 with an effective date of August 9, 2004 the Board of Directors adopted aresolution authorizing and approving a 100 to 1 reverse stock split and the new trading symbol of the company is AOME.

On August 24, 2004 International Equity Partners, SA purchased Transporter, Inc., acompany developing video conferencing software allowing the creation of virtual private networks that are PC based, have no need touse servers or special equipment, and operate on any broadband connection. The purchase price was $3,000,000, $100,000 of which ispayable within 60 days of the date of the Exclusive Purchase Agreement with the balance payable in intervals over 24 months. Inaddition, the former stockholders of Transporter, Inc. are to be issued 1,000,000 shares of the common stock of the Company. At theend of a two-year period the shares are guaranteed to be worth at least $2.00 per share, and, if worth less, additional shares ofstock will then be issued to make up the difference. The value of the shares is $50,000 ($.05 per share).

On August 24, 2004 the Company acquired through an assignment by International EquityPartners, SA all rights, title, and interest in the aforesaid Exclusive Purchase Agreement in exchange for 25,000,000 shares ofcommon stock of the Registrant. All certificates issued will bear the appropriate 2-year restrictive legend.  The value of theissuance is $812,500, which was the fair value of the stock at the date the transaction was negotiated.

<Page> 9

**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE ENTERPRISE)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS|DECEMBER 31, 2004 AND 2003 (Continued)**

On August 25, 2004 the Company entered into a Consulting Fee Agreement with CarlyleFinancial Consulting Group, which will continue to provide consulting services for all of the Company’s businesses and willalso continue to coordinate prospective acquisitions in European countries and the Arabian Gulf.  The consulting fee wasnegotiated for 1,400,000 shares of common stock, which the Company has registered with the Securities and Exchange Commission onForm S-8 Registration Statement under the Securities Act of 1933.

On September 9, 2004 the Company issued 200,000 shares of common stock of the Company inexchange for legal and professional services rendered and to be rendered. 

On November 8, 2004 the Company issued 157,788 shares of common stock of the Company inexchange for consulting services rendered.

The Company, at December 31, 2004, has 100,000,000 shares of preferred stock authorizedand no shares issued and outstanding.

 

4.             RELATED PARTYTRANSACTIONS

Certain shareholders of the Company have advanced funds to the Company to cover cash flowdeficiencies.  During the six months ended December 31, 2004, these shareholders advanced a net of $124,723 to theCompany.  The advances have no stated repayment terms.  The advances will bear interest at the Federal Reserve prime rateplus 1.25% and interest will be payable annually.  In addition, an affiliated entity is providing office space to the Companyat no charge, and is providing funds for payroll, moving and other general expenses.  As of December 31, 2004, the Companyincurred and accrued $314,339 in liabilities to this entity.  The advances and funding are based on verbal commitments with noguarantees of future advances or funding.

 

5.     GOING CONCERN UNCERTAINTY

As shown in the accompanying financial statements, as is typical of companies goingthrough the development stage, the Company incurred net loss for the six months ended December 31, 2004 and 2003, and sinceinception. The Company is currently in the development stage, and there is no guarantee whether the Company will be able togenerate enough revenue and/or raise capital to support current operations and generate anticipated sales.  This raisessubstantial doubt about the Company’s ability to continue as a goingconcern.               

Management believes that the Company’s capital requirements will depend on manyfactors including the success of the Company’s product development efforts.

The financial statements do not include any adjustments that might result from the outcomeof these uncertainties.

<Page> 10

**AERO MARINE ENGINE, INC.(A DEVELOPMENT STAGE ENTERPRISE)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 2004 AND 2003 (Continued)**

6.            COMMITMENT

The Company is a party to a lawsuit involving a past due claim. This amount has beenincluded in its accounts payable at September 30, 2004, and the Company plans on making full payment on the outstandingliability.

On August 24 2004 the Company entered into a Joint Venture Agreement with AdaptivePropulsion Systems, LLC (“Adaptive”), a wholly owned subsidiary of Tactronics.  Adaptive will provide 100% of thecapital and labor to build military grade engines based on the Registrant’s Dyna-Cam engine design.  Adaptive will paythe Company a 20% gross royalty on all orders of the engines sold to the United States Government.  The Company will have therest of the world military market and all civilian commercial applications, and the Company will pay a five (5%) percent royalty onsuch orders to Adaptive.

7.             PROVISION FORINCOME TAXES

Deferred income taxes will be determined using the liability method for the temporarydifferences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes will be measured based on the tax rates expected to be in effect when the temporary differences are includedin the Company’s tax return.  Deferred tax assets and liabilities are recognized based on anticipated future taxconsequences attributable to differences between financial statement carrying amounts of assets and liabilities and theirrespective tax bases.

At December 31, 2004 and 2003, deferred tax assets consist of the following:

 

                                                           2004               2003Deferred TaxAssets                  $2,132,662        $184,725Less:  valuation allowance:       (2,132,662)       (184,725)                                                       $      -0-             $     -0-                                                     ========        ========

At December 31, 2004 and 2003, the Company had federal net operating loss carry forwardsin the approximate amounts of $6,462,612 and $559,772, respectively available to offset future taxable income through 2021. The Company established valuation allowances equal to the full amount of the deferred tax assets due to the uncertainty of theutilization of the operating losses in future periods.

<Page> 11

Item2.                    MANAGEMENT'SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

Forward-looking Statements

This Report on Form 10-QSB contains certain forward-looking statements.These forward-looking statements include statements regarding (i) marketing plans, capital and operations expenditures, and resultsof operations; (ii) potential financing arrangements; (iii) potential utility and acceptance of the Company's existing and proposedservices; and (iv) the need for, and availability of, additional financing.

The forward-looking statements included herein are based on currentexpectations and involve a number of risks and uncertainties. These forward-looking statements are based on assumptions regardingthe business of the Company which involve judgments with respect to, among other things, future economic and competitive conditionsand future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond thecontrol of the Company. Although the Company believes that the assumptions underlying the forward-looking statements arereasonable, any of the assumptions could prove inaccurate and, therefore, actual results may differ materially from those set forthin the forward-looking statements. In light of the significant uncertainties inherent in the forward-looking information containedherein, the inclusion of such information should not be regarded as any representation by the Company or any other person that theobjectives or plans of the Company will be achieved.

Princeton Ventures, Inc. (the "Company") was incorporated in the State of Nevada on May10, 2001.  The Company had not commenced operations.  On May 30, 2003, the Company exchanged 37,944,922 shares of itscommon stock for all of the issued and outstanding shares of Aero Marine Engine Corp. ("Aero").  Aero was formed on December30, 2002.  Aero had no operations and was formed to acquire the assets of Dyna-Cam Engine Corporation.  The Companychanged its name from Princeton Ventures, Inc. to Aero Marine Engine, Inc.

At the time that the transaction was agreed to, the Company had 20,337,860 common sharesissued and outstanding.  In contemplation of the transaction with Aero, the Company's two primary shareholders cancelled9,337,860 shares of the Company's common stock held by them, leaving 11,000,000 shares issued and outstanding.  As a result ofthe acquisition of Aero, there were 48,944,922 common shares outstanding, and the former Aero stockholders held approximately 78%of the Company's voting stock.  For financial accounting purposes, the acquisition was a reverse acquisition of the Company byAero, under the purchase method of accounting, and was treated as a recapitalization with Aero as the acquirer.  Accordingly,the historical financial statements have been restated after giving effect to the May 30, 2003, acquisition of the Company. The financial statements have been prepared to give retroactive effect to December 30, 2002, the date of inception of Aero, of thereverse acquisition completed on May 30, 2003, and represent the operations of Aero.  Consistent with reverse acquisitionaccounting: (i) all of Aero's assets, liabilities, and accumulated deficit, are reflected at their combined historical cost (as theaccounting acquirer) and (ii) the preexisting outstanding shares of the Company (the accounting acquiree) are reflected at theirnet asset value as if issued on May 30, 2003.

Additionally, on June 30, 2003, the Company acquired the operating assets of Dyna-CamEngine Corp. ("Dyna-Cam").  Dyna-Cam was a development stage enterprise developing a unique, axial cam-drive, free piston,internal combustion engine.  Dyna-Cam intended to produce and sell the engine primarily for aircraft and marineapplications.  Dyna-Cam had not generated significant revenues at the time of the Company's acquisition.

The Company, under its new management, has raised over $1,200,000 in cash to effect theacquisition of Dyna-Cam.  Management believes that significant capital is required to adequately develop the Dyna-Cam engineand begin operations.  In the six months ended December 31, 2004, shareholders of the Company have advanced a net of $124,723to assist in funding the operations.

The Company will require additional capital.  Although the current majoritystockholders of the Company, as well as an affiliate, have made verbal commitments, with no guarantees, to continue to fund thedevelopment and sales and marketing efforts of the Company, if alternate financing cannot be obtained, there can be no assurancethat any new capital would be available to the Company or that adequate funds for the Company's operations, whether from theCompany's revenues, financial markets, or other arrangements will be available when needed or on terms satisfactory to the Company.The failure of the Company to obtain adequate additional financing will require the Company to delay, curtail or scale back some orall of its research and development programs, sales, marketing efforts and manufacturing operations.

****Item 3. Controls and Procedures****

Within 90 days prior to the date of filing of this report, the Companycarried out an evaluation, under the supervision and with the participation of the Company's management, including the ChiefExecutive Officer and the Chief Financial Officer, of the design and operation of the Company's disclosure controls and procedures.Based on this evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosurecontrols and procedures are effective for gathering, analyzing and disclosing the information the Company is required to disclosein the reports it files under the Securities Exchange Act of 1934, within the time periods specified in the SEC's rules and forms.There have been no significant changes in the Company's internal controls or in other factors that could significantly affectinternal controls subsequent to the date of this evaluation.

PARTII.                OTHER INFORMATION

Item 1.   Legal Proceedings.

The Company is a party to a lawsuit involving a past due claim. This amount has been included in its accounts payable at December 31, 2004, and the Company plans on making full payment on the outstanding liability.

Item 2.   Changes in Securities

None

Item 3.   Default Upon Senior Securities

None

Item 4.   Submission of matters To a Vote of Security Holders

None

Item 5.  Other Events.

On August 24, 2004 International Equity Partners, SA purchased Transporter, Inc., acompany developing video conferencing software allowing the creation of virtual private networks that are PC based, have no need touse servers or special equipment, and operate on any broadband connection. The purchase price was $3,000,000, $100,000 of which ispayable within 60 days of the date of the Exclusive Purchase Agreement with the balance payable in intervals over 24 months. Inaddition, the former stockholders of Transporter, Inc. are to be issued 1,000,000 shares of the common stock of the Company. At theend of a two-year period the shares are guaranteed to be worth at least $2.00 per share, and, if worth less, additional shares ofstock will then be issued to make up the difference. The value of the shares is $50,000 ($.05 per share).

On August 24, 2004 the Company acquired through an assignment by International EquityPartners, SA all rights, title, and interest in the aforesaid Exclusive Purchase Agreement in exchange for 25,000,000 shares ofcommon stock of the Registrant. All certificates issued will bear the appropriate 2-year restrictive legend.  The value of theissuance is $812,500, which was the fair value of the stock at the date the transaction was negotiated.

On August 25, 2004 the Company entered into a Consulting Fee Agreement with CarlyleFinancial Consulting Group, which will continue to provide consulting services for all of the Company’s businesses and willalso continue to coordinate prospective acquisitions in European countries and the Arabian Gulf.  The consulting fee wasnegotiated for 1,400,000 shares of common stock, which the Company has registered with the Securities and Exchange Commission onForm S-8 Registration Statement under the Securities Act of 1933.

On September 9, 2004 the Company issued 200,000 shares of common stock of the Company inexchange for legal and professional services rendered and to be rendered. 

On November 8, 2004 the Company issued 157,788 shares of common stock of the Company inexchange for consulting services rendered.

Effective January 6, 2005, Benjamin Langford resigned as President; Donald Whiteheadresigned as Secretary-Treasurer and Director; and Jeffrey Floyd resigned as Director of the Registrant

Effective January 6, 2005, Dr. Raymond Brouzes was elected as President, Chief ExecutiveOfficer; Samuel J. Higgins was elected as Secretary-Treasure of the Registrant. Dr. Raymond Brouzes, Samuel J. Higgins and BenjaminLangford were elected to the Board of Directors of the Registrant.

Item 6.   Exhibits and Reports.

(a)           EXHIBITS.
| **EXHIBIT NUMBER** | **DESCRIPTION**                                                                                                                                  | **LOCATION** |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| 31.1               | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Attached     |
| 32.2               | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Attached     |

REPORTS ON FORM 8-K.

Form 8-K filed on October 5, 2004, Current Report, Item 4.01 and incorporatedherein.

Form 8-K filed on January 26, 2005, Current Report, Item 5.01 and incorporatedherein.

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunder dulyauthorized.
|                                | **AERO MARINE ENGINE, INC.**                                                                                                                                   |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Dated:  February 11, 2005 | By: /s/    Raymond Brouzes                 Raymond Brouzes,President |