U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 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 SEPTEMBER 30, 2005

[ ]    Transition report under Section 13 or 15(d) of the Exchange Act
       For the transition period from __________ to

                          Commission File No. 333-33890

                         POWER SAVE INTERNATIONAL, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

            NEVADA                                       88-0227424
-------------------------------             ------------------------------------
(State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
Incorporation or Organization)

                4333 ADMIRALTY WAY, SUITE 100P, DEL REY, CA 90292
                -------------------------------------------------
                    (Address of Principal Executive Offices)

                                 (310) 821-2244
                 -----------------------------------------------
                 (Issuers Telephone Number, Including Area Code)

                                       N/A
   --------------------------------------------------------------------------
   (Former Name, Former Address and Former Fiscal Year, if Changed Since Last
                                    Report)

      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.

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 last practicable date.

      Common Stock, $.001 par value per share, 9,676,311 shares were issued and
outstanding at November 7, 2005

      Transitional Small Business Disclosure Format (check one)

      Yes [ ] No [X]

<PAGE>


                         POWER SAVE INTERNATIONAL, INC.

                                TABLE OF CONTENTS

PAGE(S)     3      PART I - FINANCIAL INFORMATION

PAGE(S)     3      ITEM 1. FINANACIAL STATEMENTS

PAGE(S)     4      CONDENSED BALANCE SHEET AS OF SEPTEMBER 30, 2005 (UNAUDITED)

PAGE(S)     5      CONDENSED STATEMENTS OF OPERATION'S FOR THE THREE AND NINE
                      MONTHS ENDED SEPTEMBER 30, 2005 AND 2004 (UNAUDITED)

PAGE(S)    6-7     CONDENSED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED
                      SEPTEMBER 30, 2005 AND 2004 (UNAUDITED)

PAGE(S)   8-11     CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE NINE
                      MONTHS ENDED SEPTEMBER 30, 2005 AND 2004 AND FROM
                      INCEPTION MAY 8, 1987 THROUGH THE PERIOD ENDED SEPTEMBER
                      30, 2005 (UNAUDITED)

PAGE(S)    12      NOTES TO CONDENSED FINANCIAL STATEMENTS AS OF SEPTEMBER 30,
                      2005 (UNAUDITED)

PAGE(S)  13-14     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
                      OPERATION

PAGE(S)  14-15     ITEM 3. CONTROLS AND PROCEDURES

PAGE(S)    15      PART II - OTHER INFORMATION

PAGE(S)    15      ITEM 1. LEGAL PROCEEDINGS

PAGE(S)    15      ITEM 2. CHANGES IN SECURITIES

PAGE(S)    15      ITEM 3. DEFAULTS UPON SENIOR SECURITIES

PAGE(S)    15      ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

PAGE(S)    15      ITEM 5. OTHER INFORMATION

PAGE(S)    15      ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
                        (a) Exhibits

PAGE(S)  17-18     CERTIFICATION

<PAGE>
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

As used herein, the term "Company" refers to Power Save International, Inc., a
Nevada corporation, and predecessors unless otherwise indicated. Unaudited,
condensed interim financial statements including a balance sheet for the Company
as of the quarter ended September 30, 2005 and statements of operations, and
statements of cash flows for the interim period up to the date of such balance
sheet and the comparable period of the preceding year are attached hereto and
are incorporated herein by this reference.

BASIS OF PRESENTATION

The accompanying unaudited financial statements are presented in accordance with
accounting principles generally accepted in the United States of America for
interim financial information and the instructions for Form 10-QSB and Item 300
under subpart A of Regulation S-B. Accordingly, they do not include all of the
information and footnotes required by accounting principles generally accepted
in the United States of America for complete financial statements. The
accompanying statements should be read in conjunction with the audited financial
statements for the years ended December 31, 2004. In the opinion of management,
all adjustments (consisting only of normal occurring accruals) considered
necessary in order to make the financial statements not misleading have been
included. Operating results for the nine months ended September 30, 2005 are not
necessarily indicative of results that may be expected for the year ended
December 31, 2005. The financial statements are presented on the accrual basis.

                                        3

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             CONDENSED BALANCE SHEET
                               SEPTEMBER 30, 2005
                                   (UNAUDITED)

<TABLE>
<S>                                                                                 <C>
                                     ASSETS
   Cash                                                                             $      6,967
   Note receivable                                                                        15,000
   Available for sale securities                                                          13,605
                                                                                    ------------
CURRENT ASSETS                                                                            35,572

   Inventory                                                                           4,000,000
   Investment                                                                            500,000
   Intellectual property                                                                 400,000
                                                                                    ------------
TOTAL ASSETS                                                                        $  4,935,572
                                                                                    ============

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
   Accounts payable                                                                 $    173,598
   Wages payable                                                                          42,780
   Loans -related parties                                                                  1,805
   Current loan payable                                                                  289,000
                                                                                    ------------

         Total Current Liabilities                                                       507,182
                                                                                    ------------

STOCKHOLDERS' EQUITY (DEFICIT)
   Preferred stock; 50,000,000 shares authorized; $.001 Par Value; 296,300 shares
      issued and outstanding                                                                 296
   Capital stock, $.001 Par Value; 50,000,000 shares authorized; 9,676,311 shares
      issued and outstanding                                                               9,676
   Additional paid-in capital                                                          6,949,941
   Deficit accumulated during the development stage                                   (2,479,046)
   Accumulated other comprehensive loss                                                  (52,477)
                                                                                    ------------

         Total Stockholders' Equity                                                    4,428,390
                                                                                    ------------

TOTAL LIABILITIES AND STOCKHOLDERS'  DEFICIT                                        $  4,935,572
                                                                                    ============
</TABLE>

     See accompanying notes to the unaudited condensed financial statements.

                                        4

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                         (A DEVELOPMENT STAGE COMPANY)
                 CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
                                           For the       For the       For the       For the
                                            Three         Three          Nine         Nine
                                            Months        Months        Months        Months      Inception
                                            Ended         Ended         Ended         Ended        through
                                          September     September     September     September     September
                                           30, 2005      30, 2004      30, 2005      30, 2004      30, 2005
                                         -----------   -----------   -----------   -----------   ------------
<S>                                      <C>           <C>           <C>           <C>           <C>
NET SALES                                $         -   $         -   $         -   $         -   $    591,656

COST OF SALES                                      -             -             -             -        352,207
                                         -----------   -----------   -----------   -----------   ------------

GROSS MARGIN                                       -             -             -             -        239,449
                                         -----------   -----------   -----------   -----------   ------------

EXPENSES
   Research and Development                        -             -             -             -        119,554
   Reserve Against Product Rights                  -             -             -             -        244,000
   Impairment of Intellectual Property             -             -             -             -        100,000
   Depreciation and Amortization                   -             -             -             -        550,510
   General and Administrative
      Expenses                                37,737         7,967       166,679        38,592      1,438,630
                                         -----------   -----------   -----------   -----------   ------------

TOTAL OPERATING EXPENSES                      37,737         7,967       164,892        38,592      2,452,694
                                         -----------   -----------   -----------   -----------   ------------

NET LOSS FROM OPERATIONS                     (37,737)       (7,967)     (164,892)      (38,592)    (2,213,245)
                                         -----------   -----------   -----------   -----------   ------------

OTHER INCOME (EXPENSE)
   Gain (loss) on Sale of Marketable
      Securities                             (29,857)            -       (15,096)            -        152,110
   Write down of Marketable
      Securities                                   -             -             -             -       (364,326)
   Nonrefundable Option Income                     -             -             -             -         23,000
   Interest Expense                                -             -        (1,264)            -       (116,398)
   Dividend and Interest Income                   11             -            22             -         13,026
   Other Income                                    -             -             -             -          1,684
   Forgiveness of Debt                             -             -             -             -         25,103
                                         -----------   -----------   -----------   -----------   ------------

TOTAL OTHER INCOME (LOSS)                    (29,846)            -       (16,338)            -       (265,801)
                                         -----------   -----------   -----------   -----------   ------------

NET LOSS BEFORE INCOME TAXES                 (67,583)       (7,967)     (183,017)      (38,592)    (2,479,046)
                                         -----------   -----------   -----------   -----------   ------------

PROVISION FOR INCOME TAXES                         -             -             -             -              -
                                         -----------   -----------   -----------   -----------   ------------

NET LOSS                                 $   (67,583)  $    (7,967)  $  (183,017)  $   (38,592)  $ (2,479,046)
                                         -----------   -----------   -----------   -----------   ------------

BASIC AND DILUTED
   LOSS PER SHARE                        $     (0.01)  $         -   $     (0.02)  $         -   $      (0.26)
                                         -----------   -----------   -----------   -----------   ------------

WEIGHTED AVERAGE SHARES OUTSTANDING        9,676,311     6,414,149     9,676,311     6,414,149      9,676,311
                                         ===========   ===========   ===========   ===========   ============
</TABLE>

     See accompanying notes to the unaudited condensed financial statements.

                                        5

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                           For the Nine      For the Nine        Inception
                                                           Months Ended      Months Ended         Through
                                                           September 30,     September 30,     September 30,
                                                               2005              2004              2005
                                                          --------------    --------------    --------------
<S>                                                       <C>               <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Loss                                               $     (183,017)   $      (38,592)       (2,479,046)
   Adjustments to reconcile net loss from net cash
      used in operating activities:
      Depreciation and amortization                                    -                 -           550,510
      Impairment of Intellectual Property                              -                 -           100,000
      Common Stock Issued for Lease                                    -                 -           225,000
      Common Stock Issued for Services                                 -                 -             4,700
      (Gain) Loss on Sale of Securities                           29,857                 -          (137,349)
      Write down of Marketable Securities                              -                 -           364,326
      Contributed Interest                                             -                 -            70,018
      Contributed Rent and Officer Compensation                        -                 -           110,000
      Reserve against Assets and Liabilities                           -                 -           244,000
   Changes in Assets and Liabilities:
      Increase (Decrease) in Accounts and Loans Payable          (26,315)           38,592            59,058
      Increase in Accrued Interest                                     -                 -            32,382
      Increase (Decrease) in Wages Payable                         8,025                 -            45,525
      Increase (Decrease) in Advances from Shareholder                 -                 -            93,863
                                                          --------------    --------------    --------------

         Net Cash Used By Operating Activities                  (171,450)                -          (717,013)
                                                          --------------    --------------    --------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Product Rights, Development Costs and Intangibles                   -                 -          (244,000)
   Purchase of Fixed Assets                                            -                 -           (15,478)
   Notes Receivable                                              (15,000)                -           (15,000)
   Increase in Organization Costs                                      -                 -           (36,408)
   Purchase of Marketable Securities                            (301,617)                -          (321,673)
   Proceeds from Sale of Marketable Securities                   205,679                 -           609,945
                                                          --------------    --------------    --------------
         Net Cash Provided  By  Investing Activities            (110,938)                -           (22,614)
                                                          --------------    --------------    --------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from Issuance of Common Stock, net                         -                 -           369,212
   Proceeds from Debt                                            289,000                 -           289,000
   Contributed Capital                                                 -                 -            88,382
                                                          --------------    --------------    --------------

         Net Cash Provided By Financing Activities               289,000                 -           746,594
                                                          --------------    --------------    --------------

NET INCREASE (DECREASE) IN CASH                                    6,612                 -             6,967

CASH - BEGINNING OF PERIOD                                           355                 -                 -
                                                          --------------    --------------    --------------

CASH - END OF PERIOD                                      $        6,967    $            -             6,967
                                                          ==============    ==============    ==============
</TABLE>

     See accompanying notes to the unaudited condensed financial statements.

                                        6

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                          For the Nine      For the Nine        Inception
                                                          Months Ended      Months Ended         Through
                                                          September 30,     September 30,     September 30,
                                                              2005              2004              2005
                                                         --------------    --------------    --------------
<S>                                                      <C>               <C>               <C>
SUPPLEMENTAL CASH FLOW INFORMATION:

   Stock Issued In Exchange for Goods and Services and
   Marketable Securities                                 $            -    $            -    $    6,185,900
                                                         ==============    ==============    ==============

   Stock Issued In Exchange for License Fee              $            -    $            -    $      500,000
                                                         ==============    ==============    ==============

   Cash Paid for Interest                                $            -    $            -    $        1,302
                                                         ==============    ==============    ==============

   Cash Paid for Income Taxes                            $            -    $            -    $            -
                                                         ==============    ==============    ==============
</TABLE>

     See accompanying notes to the unaudited condensed financial statements.

                                        7

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                  CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
      FOR THE PERIODS ENDED SEPTEMBER 30, 2004 AND 2005 AND FOR THE PERIOD
          FROM DATE OF INCEPTION MAY 8, 1987 THROUGH SEPTEMBER 30, 2005

<TABLE>
<CAPTION>
                                                                                  Deficit
                                                                                Accumulated   Accumulated                   Compre-
                                                                    Additional  During the       Other          Total       hensive
                             Preferred Stock       Capital Stock      Paid-in    Development Comprehensive  Shareholders    Income
                             Shares    Amount     Shares    Amount    Capital      Stage     Income (Loss)     Equity        (Loss)
                           ---------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
<S>                        <C>        <C>       <C>        <C>      <C>         <C>          <C>            <C>            <C>
Issuance of shares for
   cash May 1987                   -  $      -    100,000  $   100  $    2,900            -              -  $       3,000
Issuance of shares for
   cash August 1987                -         -     63,433       63     279,877            -              -        279,940
Issuance of shares for
   product rights and
   other intangible
   assets                          -         -         33        -           -            -              -              -
Sale of shares to the
   public for $.30 per
   share-restated                  -         -     74,334       74      22,226            -              -         22,300
Deferred offering costs            -         -          -        -      (7,892)           -              -         (7,892)
Exchange of shares
   regarding pooling of
   interest of
   subsidiaries:
   Cancellation                    -         -    (63,467)     (63)         63            -              -              -
   Re-issuance                     -         -    396,767      397        (397)           -              -              -
Issuance of shares for
   services                        -         -     30,500       31         884            -              -            915
Cancellation of
   shares-former officer           -         -    (30,000)     (30)     (9,970)           -              -        (10,000)
Issuance of shares to
   A.P.S.I. merger                 -         -  5,144,000    5,144      39,856            -              -         45,000
Issuance of shares for
   prepaid lease and
   working capital                 -         -    449,000      449     249,551            -              -        250,000
Issuance of shares for
   services                        -         -     95,000       95       2,755            -              -          2,850
Conversion of debt to
   preferred stock            50,000        50          -        -     499,950            -              -        500,000
Exchange of preferred
   shares for oil and
   gas properties          2,000,000     2,000          -        -   9,998,000            -              -     10,000,000
Issuance of shares for
   services                        -         -    154,549      154       4,483            -              -          4,637
Additional contributed
   capital                         -         -          -        -      70,318            -              -         70,318
Net Loss from inception
   through December 31,
   1996                            -         -          -        -           -     (979,024)             -       (979,024) (979,024)
                           ---------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance-December 31,
   1996                    2,050,000     2,050  6,414,149    6,414  11,152,604     (979,024)             -     10,182,044
Net Loss for the year
   ended December 31,
   1997                                                                             (53,554)             -        (53,554)  (53,554)
                           ---------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance-December 31,
   1997                    2,050,000     2,050  6,414,149    6,414  11,152,604   (1,032,578)             -     10,128,490
</TABLE>

     See accompanying notes to the unaudited condensed financial statements.

                                        8

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                  CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
      FOR THE PERIODS ENDED SEPTEMBER 30, 2004 AND 2005 AND FOR THE PERIOD
          FROM DATE OF INCEPTION MAY 8, 1987 THROUGH SEPTEMBER 30, 2005

<TABLE>
<CAPTION>
                                                                                  Deficit
                                                                                Accumulated   Accumulated                  Compre-
                                                                    Additional   During the      Other          Total      hensive
                             Preferred Stock       Capital Stock      Paid-in   Development  Comprehensive  Shareholders    Income
                            Shares     Amount     Shares    Amount    Capital      Stage     Income (Loss)      Equity     (Loss)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
<S>                       <C>         <C>       <C>        <C>      <C>         <C>          <C>            <C>            <C>
Additional contributed
   capital                         -         -          -        -      24,000            -              -         24,000
Cancellation of
   preferred shares for
   oil and gas
   properties and other
   outstanding preferred
   shares                 (2,050,000)   (2,050)         -        -  (9,997,950)           -              -    (10,000,000)
Net loss for the year
   ended December 31,
   1998                            -         -          -        -           -     (315,441)             -       (315,441) (315,441)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance- December 31,
   1998                            -         -  6,414,149    6,414   1,178,654   (1,348,019)             -       (162,951)
Additional contributed
   capital                         -         -          -        -      35,545            -              -         35,545
Issuance of preferred
   shares for
   marketable securities     296,300       296          -        -     592,304            -              -        592,600
Comprehensive income:
   Net loss for the
      year ended
      December 31, 1999            -         -          -        -           -      (98,337)             -        (98,337)  (98,337)
   Other comprehensive
      income (loss)
      Unrealized gain
      on securities                -         -          -        -           -            -        339,060        339,060   339,060
                                                                                                                           --------
Comprehensive income               -         -          -        -           -            -              -              -   240,723
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance-December 31,
   1999                      296,300       296  6,414,149    6,414   1,806,503   (1,446,356)       339,060        705,917

Additional contributed
   capital                         -         -          -        -      14,000            -              -         14,000
Comprehensive income:
   Net loss for the
      year ended
      December 31, 2000            -         -          -        -           -     (288,381)             -       (288,381) (288,381)
   Other comprehensive
      income (loss)
      Unrealized loss
         on securities             -         -          -        -           -            -       (339,060)      (339,060) (339,060)
                                                                                                                           --------
Comprehensive income
   (loss)                          -         -          -        -           -            -              -              -  (627,441)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance-December 31,
   2000                      296,300       296  6,414,149    6,414   1,820,503   (1,734,737)             -         92,476

Additional contributed
   capital                         -         -          -        -      24,000            -              -         24,000
Comprehensive income:
   Net loss for the
      year ended
      December 31, 2001            -         -          -        -           -      (67,250)             -        (67,250)  (67,250)
</TABLE>

     See accompanying notes to the unaudited condensed financial statements.

                                        9

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                  CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
      FOR THE PERIODS ENDED SEPTEMBER 30, 2004 AND 2005 AND FOR THE PERIOD
          FROM DATE OF INCEPTION MAY 8, 1987 THROUGH SEPTEMBER 30, 2005

<TABLE>
<CAPTION>
                                                                                  Deficit
                                                                                Accumulated   Accumulated                   Compre-
                                                                    Additional   During the      Other         Total        hensive
                            Preferred Stock       Capital Stock      Paid-in    Development  Comprehensive  Shareholders    Income
                            Shares     Amount    Shares    Amount    Capital       Stage     Income (Loss)     Equity       (Loss)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
<S>                       <C>         <C>       <C>        <C>      <C>         <C>          <C>            <C>            <C>
   Other comprehensive
      income (loss)
      Unrealized loss on
         securities                -         -          -        -           -            -         (2,992)        (2,992)   (2,992)
                                                                                                                           --------
Comprehensive income
   (loss)                          -         -          -        -           -            -              -              -   (70,242)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------
Balance-December 31, 2001    296,300       296  6,414,149    6,414   1,844,503   (1,801,987)        (2,992)        46,234

Additional contributed
   capital                         -         -          -        -      24,000            -              -         24,000
Comprehensive income:
   Net loss for the year
      ended December 31,
      2002                         -         -          -        -           -      (58,689)             -        (58,689)  (58,689)
   Other comprehensive
      income (loss)
      Unrealized loss on
         securities                -         -          -        -           -            -         (6,840)        (6,840)   (6,840)
                                                                                                                           --------
Comprehensive income
   (loss)                          -         -          -        -           -            -              -              -   (65,529)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance-December 31, 2002    296,300       296  6,414,149    6,414   1,868,503   (1,860,676)        (9,832)         4,705
   Other comprehensive
      income (loss)
      Realized loss on
         securities                -         -          -        -           -            -          9,832          9,832     9,832
   Net loss for the year
      ended December 31,
      2003                         -         -          -        -           -      (68,152)             -        (68,152)  (68,152)
                                                                                                                           --------
   Comprehensive income
      (loss)                       -         -          -        -           -            -              -              -   (58,320)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance - December 31,
   2003                      296,300  $    296  6,414,149    6,414   1,868,503   (1,928,828)             -        (53,615)
   Stock issued for
      Related party debt           -         -  2,162,162    2,162      77,838            -              -         80,000
   Stock issued
      for assets                   -         -  1,000,000    1,000   4,999,000            -              -      5,000,000
   Stock issued
      for services                 -         -    100,000      100       4,600            -              -          4,700
   Net loss for the year
      ended December 31,
      2004                         -         -          -        -           -     (367,201)             -       (367,201)
   Comprehensive income
      (loss)                       -         -          -        -           -            -              -              -  (367,201)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance - December 31,
   2004                      296,300  $    296  9,676,311  $ 9,676  $6,949,941  $(2,296,029)             -  $   4,663,884
                          ==========  ========  =========  =======  ==========  ===========  =============  =============  ========
</TABLE>

     See accompanying notes to the unaudited condensed financial statements.

                                       10

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                  CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
      FOR THE PERIODS ENDED SEPTEMBER 30, 2004 AND 2005 AND FOR THE PERIOD
          FROM DATE OF INCEPTION MAY 8, 1987 THROUGH SEPTEMBER 30, 2005

<TABLE>
<CAPTION>
                                                                                  Deficit
                                                                                Accumulated   Accumulated                   Compre-
                                                                    Additional   During the      Other         Total        hensive
                             Preferred Stock       Capital Stock     Paid-in    Development  Comprehensive  Shareholders    Income
                            Shares     Amount    Shares    Amount    Capital       Stage     Income (Loss)     Equity        (Loss)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
<S>                       <C>         <C>       <C>        <C>      <C>         <C>          <C>            <C>            <C>
   Net Loss for the Six
      Months Ended
      September 30, 2005           -         -          -        -           -     (183,017)             -       (183,017) (183,017)
   Unrealized Loss on
      Securities                   -         -          -        -           -            -        (52,477)       (52,477)  (52,477)
                                                                                                                           --------
   Comprehensive income
      (loss)                       -         -          -        -           -            -              -              -  (235,494)
                          ----------  --------  ---------  -------  ----------  -----------  -------------  -------------  --------
Balance - September 30,
   2005                      296,300  $    296  9,676,311  $ 9,676  $6,949,941  $(2,479,046)       (52,477) $   4,428,390
                          ==========  ========  =========  =======  ==========  ===========  =============  =============  ========
</TABLE>

     See accompanying notes to the unaudited condensed financial statements.

                                       11

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1  BASIS OF PRESENTATION
------  ---------------------

        The interim financial statements at September 30, 2005 and for the three
        month and nine month periods ended September 30, 2005 and 2004 are
        unaudited, but include all adjustments which the Company considers
        necessary for a fair presentation. The accompanying unaudited financial
        statements are for the interim periods and do not include all
        disclosures normally provided in annual financial statements, and should
        be read in conjunction with the Company's Form 10-KSB for the year ended
        December 31, 2004. The accompanying unaudited interim financial
        statements for the three month and nine month periods ended September
        30, 2005 and 2004, are not necessarily indicative of the results which
        can be expected for the entire year.

        The preparation of financial statements in conformity with generally
        accepted accounting principles in the United States of America requires
        management to make estimates and assumptions that affect the reported
        amounts of 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.

NOTE 2  DISPOSITION OF ASSETS
------  ---------------------

        In August 2004, Scott Balmer, the majority shareholder accepted all the
        assets of the Company as settlement of all the debt owed him. This
        resulted in the Company recording forgiveness of debt in the amount of
        $25,103.

NOTE 3  GOING CONCERN
------  -------------

        The Company's condensed consolidated financial statements have been
        presented on the basis that it is a going concern, which contemplates
        the realization of assets and the satisfaction of liabilities in the
        normal course of business. The Company has a net loss from operations of
        $183,017, negative working capital of $471,610 for the period ended
        September 30, 2005. These matters raise substantial doubt about its
        ability to continue as a going concern. The consolidated financial
        statements do not include any adjustments that might be necessary if the
        Company is unable to continue as a going concern.

        Management believes that actions presently taken to expand its future
        operations and raise capital provide the opportunity for the Company to
        continue as a going concern.

                                       12

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

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

The following discussion and analysis should be read in conjunction with our
financial statements and the accompanying notes. The following discussion and
analysis contains forward-looking statements, which involve risks and
uncertainties in the forward-looking statements. These forward-looking
statements may be impacted, either positively or negatively, by various factors.

Our actual results may differ significantly from the results, expectations and
plans discussed. This Report contains "forward looking statements" relating to
our company's current expectations and beliefs. These include statements
concerning operations, performance, financial condition, anticipated
acquisitions and anticipated growth.

Without limiting the generality of the foregoing, words such as "may", "will",
"would", "expect", "believe", "anticipate", "intend", "could", "estimate", or
"continue", or the negative or other variation thereof or comparable terminology
are intended to identify forward-looking statements. These statements by their
nature involve substantial risks and uncertainties which are beyond our
company's control. Should one or more of these risks or uncertainties
materialize or should our company's underlying assumptions prove incorrect,
actual outcomes and results could differ materially from those indicated in the
forward-looking statements.

General

Management is formulating the basis for acquisitions to complete its previously
announced business plan. Additional opportunities have arisen that may allow the
Company to expand the scope of business operations and more readily allow it to
acquire the capital it requires. No actual operations other than these have been
performed and none are anticipated until the first quarter of 2006.

Results of Operations

There were no revenues for the three and nine months ended September 30, 2005 or
the three and nine months ended September 30, 2004.

General and administrative expenses increased for the three and nine months
ended September 30, 2005 compared to the same periods in 2004. These expenses
were $37,737 and $166,679 for the three and nine months ended September 30, 2005
and $7,967 and $38,592 for the same periods in 2004, respectively. The increase
for the three months ended September 30, 2005 over the same period in 2004 came
from an increase of $2,700 in office expenses, $2,700 in contract labor, $12,500
in wages, $6,686 in auditing fees and $1,763 in employee benefits. The increase
for the nine months ended September 30, 2005 came from increases of $87,500 in
wages, $13,300 in contract services, $6,686 in

                                       13

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

auditing fees, $4,500 in office expenses, $5,700 in advertising and $7,054 in
employee benefits.

For the three and nine months ended September 30, 2005 we recorded net losses of
$67,583 and $183,017, respectively. This compares with a net loss $7,967 and
$38,592 during the corresponding prior periods in 2004. The Company is still in
the developmental stage and is expected to continue to have losses until
operational businesses are introduced during fiscal year 2005 and 2006.

Liquidity

During the nine months ended September 30, 2005, the Company's working capital
decreased. The Company received a loan of $289,000 during the nine months ended
September 30, 2005. The Company does not currently have sufficient capital in
its accounts, nor sufficient firm commitments for capital to assure its ability
to meet its current obligations or to continue its planned operations. The
Company is continuing to pursue working capital and additional revenue through
the active search for the capital it needs to carry on its planned operations.
There is no assurance that any planned activities will be successful.

Capital Resources

As a result of its limited liquidity, the Company has limited access to
additional capital resources. The Company does not have the capital to totally
fund the obligations that have matured to any of its creditors and shareholders.

Though the obtaining of the additional capital is not guaranteed, the management
of the Company believes it will be able to obtain the capital required to meet
its current obligations and actively pursue its planned business activities
through the sale of its registered securities.

Operations

The operations of the Company are currently dormant. Until the Company obtains
the capital required to develop any properties or businesses and obtains the
revenues needed from its future operations in order to meet its obligations, the
Company will be dependent upon sources other than operating revenues to meet its
operating and capital needs.

Item 3. Controls and Procedures

Based on an evaluation by Mr. Smith, the chief financial officer of the company,
conducted as of a date within 90 days of the filing date of this quarterly
report, of the effectiveness of the company's disclosure controls and procedures
it has been concluded that, as of the evaluation date, (i) there were no
significant deficiencies or material weaknesses of the company's disclosure
controls and procedures, (ii) there were no

                                       14

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

significant changes in the internal controls or in other factors that could
significantly affect internal controls subsequent to the evaluation date, and
(iii) no corrective actions were required to be taken. The Company had no
revenue during the first three quarters of 2005 and 2004. The Company has been
dormant in its operations and is currently pursuing business combinations or the
required capital needed to have current operations.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

      None

Item 2. Change in Securities

      No changes in securities have occurred since the Company's last report as
      of June 30, 2005.

Item 3. Defaults Upon Senior Securities.

      None

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.
          ---------

          31.01  President and CFO certification Pursuant to 18 USC Section
                 1350, as adopted pursuant to Section 302 of Sarbanes-Oxley Act
                 of 2004

          32.01  President and CFO certification pursuant to section 906

      (b) Reports on From 8-K.
          --------------------

          None

                                       15

<PAGE>

                         POWER SAVE INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

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.

Power Save International, Inc.

/s/ Russell L. Smith
-----------------------
BY: Russell L. Smith, President, Chief Financial Officer and Director
Dated: This 8th day of November 2005

                                       16