UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   Form 10-QSB



(Mark one)
    X          Quarterly  Report  Under  Section  13 or 15(d) of the  Securities
               Exchange Act of 1934


               For the quarterly period ended September 30, 2007

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


               For the transition period from ______________ to _____________



                         Commission File Number: 0-21071

                               Nevstar Corporation
             (Exact name of registrant as specified in its charter)

         Nevada                                               88-0309578
------------------------                              --------------------------
(State of incorporation)                                (IRS Employer ID Number)

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

                                 (972) 233-0300
                                 --------------
              (Registrant's telephone number, including area code)



Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. YES X    NO

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act): YES X    NO


State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: October 17, 2007: 1,250,090
                                          ---------------------------

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




<PAGE>


                               Nevstar Corporation

              Form 10-QSB for the Quarter ended September 30, 2007

                                Table of Contents


                                                                            Page
                                                                            ----
Part I - Financial Information

  Item 1   Financial Statements                                                3

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

  Item 3   Controls and Procedures                                            13


Part II - Other Information

  Item 1   Legal Proceedings                                                  14

  Item 2   Unregistered Sales of Equity Securities and Use of Proceeds        14

  Item 3   Defaults Upon Senior Securities                                    14

  Item 4   Submission of Matters to a Vote of Security Holders                14

  Item 5   Other Information                                                  14

  Item 6   Exhibits                                                           14


Signatures                                                                    14







                                                                               2
<PAGE>
<TABLE>
<CAPTION>


Part I
Item 1 - Financial Statements

                               Nevstar Corporation
                        (a development stage enterprise)
                                 Balance Sheets
                           September 30, 2007 and 2006

                                   (Unaudited)


                                                               September 30,  September 30,
                                                                   2007          2006
                                                               -----------    -----------
<S>                                                            <C>            <C>
                                     Assets
Assets
   Cash in bank                                                $     3,115    $        29
                                                               -----------    -----------

Total Assets                                                   $     3,115    $        29
                                                               ===========    ===========


                      Liabilities and Stockholders' Deficit

Current Liabilities
   Current portion of long-term pre-petition tax liabilities   $      --      $   113,638
   Accounts payable - trade                                          7,545         61,547
   Accrued interest payable                                          1,925        119,475
   Line of credit payable to stockholder                            45,753        390,625
                                                               -----------    -----------
                                                                    55,223        685,285
                                                               -----------    -----------

Long-Term Liabilities
   Line of credit payable to stockholder                              --            8,500
                                                               -----------    -----------

   Total Liabilities                                                55,223        693,785
                                                               -----------    -----------


Commitments and contingencies


Stockholders' Deficit Preferred stock - $0.01 par value.
     10,000,000 shares authorized
     None issued and outstanding                                      --             --
   Common stock - $0.01 par value.
     150,000,000 shares authorized.
     1,250,090 and 419,449 shares
      issued and outstanding, respectively                          12,501          4,194
   Additional paid-in capital                                    2,925,425        577,956
   Accumulated deficit - prior to development stage             (1,001,679)    (1,001,679)
   Deficit accumulated during development stage                 (1,988,355)      (274,227)
                                                               -----------    -----------

     Total Stockholders' Deficit                                   (52,108)      (693,756)
                                                               -----------    -----------

Total Liabilities and Stockholders' Deficit                    $     3,115    $        29
                                                               ===========    ===========

</TABLE>


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



                                                                               3
<PAGE>
<TABLE>
<CAPTION>

                               Nevstar Corporation
                        (a development stage enterprise)
                 Statements of Operations and Comprehensive Loss
                      Three months ended September 30, 2007
               and 2006 and Period from November 22, 2002 (date of
                bankruptcy settlement) through September 30, 2007

                                   (Unaudited)

                                                                                              Period from
                                                                                              November 22,
                                                                                             2002 (date of
                                                                                              bankruptcy
                                                 Three months         Three months            settlement)
                                                    ended                ended                 through
                                                 September 30,        September 30,          September 30,
                                                     2007                 2006                  2007
                                                 -----------           -----------           -----------
<S>                                              <C>                   <C>                   <C>

Revenues                                         $      --             $      --             $      --
Operating Expenses
   General and administrative expenses                13,497                11,867               177,048
   Consulting expense related to issuance
     of common stock at less than "fair value"          --                    --               1,736,738
                                                 -----------           -----------           -----------

   Total Operating Expenses                           13,497                11,767             1,913,786
                                                 -----------           -----------           -----------

Loss from Operations                                 (13,497)              (11,867)           (1,913,786)

Other Expense
   Other income                                         --                    --                  20,000
   Gain on settlement of liabilities                    --                    --                  54,566
   Interest expense                                     (692)              (19,548)             (149,135)
                                                 -----------           -----------           -----------

Loss before Provision for Income Taxes               (14,189)              (31,415)           (1,988,355)

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

Net Loss                                             (14,189)              (31,415)           (1,988,355)

Other Comprehensive Income                              --                    --                    --
                                                 -----------           -----------           -----------

Comprehensive Loss                               $   (14,189)          $   (31,415)          $(1,988,355)
                                                 ===========           ===========           ===========

Loss per weighted-average share
   of common stock outstanding,
   computed on Net Loss -
   basic and fully diluted                       $     (0.01)          $     (0.07)
                                                 ===========           ===========

Weighted-average number
   of shares of common
   stock outstanding                               1,250,090               419,449
                                                 ===========           ===========

</TABLE>



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


                                                                               4
<PAGE>
<TABLE>
<CAPTION>

                               Nevstar Corporation
                        (a development stage enterprise)
                            Statements of Cash Flows
                 Three months ended September 30, 2007 and 2006
                Period from November 22, 2002 (date of bankruptcy
                     settlement) through September 30, 2007

                                   (Unaudited)

                                                                                           Period from
                                                                                           November 22,
                                                                                          2002 (date of
                                                                                            bankruptcy
                                                            Three months    Three months    settlement
                                                                ended           ended        through
                                                            September 30,   September 30,  September 30,
                                                                 2007           2006           2007
                                                             -----------    -----------    -----------
<S>                                                          <C>            <C>            <C>

Cash Flows from Operating Activities
   Net Loss                                                  $   (14,189)   $   (31,415)   $(1,988,355)
   Adjustments to reconcile net income to net cash
     provided by operating activities
       Depreciation                                                 --             --             --
       Consulting expense related to issuance
         of common stock at less than "fair value"                  --             --        1,736,738
       Gain on negotiated debt reduction in
         pre-petition tax liabilities                               --             --          (54,566)
       Increase (Decrease) in
         Accounts payable - trade                                  7,270          8,750        (70,501)
         Pre-petition tax liabilities                               --             --         (132,234)
       Accrued interest payable                                      692         19,548        127,768
                                                             -----------    -----------    -----------
Net cash used in operating activities                             (6,227)        (3,117)      (381,150)
                                                             -----------    -----------    -----------


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


Cash Flows from Financing Activities
   Proceeds from sale of common stock                               --             --          292,092
   Proceeds from loans from stockholder                             --            1,000        213,753
   Cash paid on loans from stockholder                              --             --         (121,580)
                                                             -----------    -----------    -----------
Net cash provided by financing activities                           --            1,000        384,265
                                                             -----------    -----------    -----------


Increase (Decrease) in Cash and Cash Equivalents                  (6,227)        (2,117)         3,115

Cash and cash equivalents at beginning of period                   9,342          2,146           --
                                                             -----------    -----------    -----------

Cash and cash equivalents at end of period                   $     3,115    $        29    $     3,115
                                                             ===========    ===========    ===========

Supplemental Disclosures of Interest and Income Taxes Paid
   Interest paid during the period                           $      --      $      --      $    19,985
                                                             ===========    ===========    ===========
   Income taxes paid (refunded)                              $      --      $      --      $      --
                                                             ===========    ===========    ===========

Supplemental Disclosures of
   Non-Cash Investing and Financing Activities
   Conversion of note payable and accrued interest
     to stockholder into common stock                        $      --      $      --      $   301,946
                                                             ===========    ===========    ===========

</TABLE>

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


                                                                               5
<PAGE>

                               Nevstar Corporation
                        (a development stage enterprise)
                          Notes to Financial Statements
                           September 30, 2007 and 2006


Note A - Organization and Description of Business

Nevstar  Corporation  (Company) was incorporated  under the laws of the State of
Nevada on December  2, 1993 as Mesquite  Gaming  Corp.  On October 3, 1995,  the
Company changed its name to NevStar Gaming Corporation and on September 18, 1997
changed its name to NevStar Gaming & Entertainment Corporation.

The  Company  was  formed  to  acquire,  develop,   construct,  own  and  manage
hotel/casino  projects. The Company's strategy was to concentrate its efforts on
"niche" markets, such as "local" or "neighborhood" casinos. The Company obtained
its license and related  approvals from the Nevada Gaming  Commission to conduct
gaming at its initial hotel/casino, Mesquite Star Hotel and Casino (The Mesquite
Star) in Mesquite,  Nevada,  pursuant to an Order of Registration dated June 23,
1998.  On July 1, 1998,  the  Mesquite  Star opened for business and the Company
began receiving  revenues from  operations.  The Mesquite Star was located on an
approximately 25-acre property in Mesquite, Nevada.

On December 1, 1999,  the Company  filed a voluntary  petition  for relief under
Chapter 11 (the First Chapter 11  Proceeding)  in the United  States  Bankruptcy
Court, District of Nevada (Bankruptcy Court), Case No. 99-19566RCJ.  The Company
acted as debtor in possession during the First Chapter 11 Proceeding. In part as
a result of the objections of certain of the Company's secured creditors and the
Bankruptcy Court's belief that the Company could not be successfully reorganized
in view of such objections,  the Bankruptcy Court dismissed the First Chapter 11
Proceeding on or about March 2, 2000.

On March 3, 2000,  Randy Black  (Black) was  appointed by the District  Court of
Clark  County,  Nevada as receiver for the  Company.  On or about March 8, 2000,
Black caused the casino to cease all  meaningful  operations  and the casino was
closed.  The Company has not  engaged in  business  operations  since that date.
Subsequently,  Black  acquired  the first trust deed on the casino from the bank
and he began foreclosure proceedings against the casino.

On July 10, 2000, the Company again filed a voluntary  petition for relief under
Chapter 11 (the Second Chapter 11 Proceeding) in the Bankruptcy  Court, Case No.
BK-S-00-15075-LBR. During the Second Chapter 11 Proceeding, the Company acted as
debtor in possession. During the course of the Second Chapter 11 Proceeding, the
Bankruptcy  Court permitted Black to foreclose on the casino,  which occurred on
November 13, 2000. In April,  2001, the Company and W/F Investment  Corp.  (W/F)
submitted to the Bankruptcy  Court a plan of  reorganization,  which was amended
from  time to time (the Plan of  Reorganization).  On  February  20,  2002,  the
Bankruptcy  Court  issued an order  confirming  the Plan of  Reorganization.  On
November 22, 2002,  the Plan of  Reorganization  became  effective.  The Company
issued 15,141,674 shares of common stock to holders of unsecured claims; 156,428
shares of common stock to certain  administrative  claimants and to a previously
secured  claim  holder,  and  27,807,219  shares  of  common  stock  to the Plan
Proponents.   The  7,583,687   shares  of  Common  Stock  that  were  previously
outstanding  were retained by the holders of those shares.  There was a total of
50,715,008 shares of common Stock outstanding after the issuance of shares under
the Plan of  Reorganization.  The Plan of  Reorganization  authorized  a reverse
split of the Common Stock, which occurred on January 12, 2006. The effect of the
reverse stock split is reflected in the accompanying  financial statements as of
the first day of the first period presented.

On September 6, 2005, the United States  Bankruptcy  Court,  District of Nevada,
issued a final  decree in the  Chapter  11  proceeding,  formally  removing  the
Company from the  oversight of the  Bankruptcy  Court and ending all  bankruptcy
proceedings.

On October 11 2005,  the Company  entered into a Stock  Purchase  Agreement with
Halter Financial  Investments,  L.P., a Texas limited partnership (HFI) pursuant
to which the Company sold 250,000 newly issued,  restricted  post-reverse  split
shares  (75,000,000  pre-reverse  split  shares)  of its  common  stock  to HFI,
constituting a change of control of the Company.

The Company's emergence from Chapter 11 of Title 11 of the United States Code on
November 22, 2002 created the combination of a change in majority  ownership and
voting control - that is, loss of control by the then-existing  stockholders,  a
court-approved reorganization, and a reliable measure of the entity's fair value
- resulting in a fresh start,  creating,  in substance,  a new reporting entity.
Accordingly,   the  Company,   post  bankruptcy,   has  no  significant  assets,
liabilities or operating activities.  Therefore, the Company, as a new reporting
entity, qualifies as a "development stage enterprise" as defined in Statement of
Financial Accounting Standard No. 7, as amended.


                                                                               6
<PAGE>

                               Nevstar Corporation
                        (a development stage enterprise)
                    Notes to Financial Statements - Continued
                           September 30, 2007 and 2006


Note A - Organization and Description of Business - Continued

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

As of the date of the accompanying  financial statements and subsequent thereto,
the Company does not have any operations.


Note B - Preparation of Financial Statements

The  Company  follows  the  accrual  basis  of  accounting  in  accordance  with
accounting principles generally accepted in the United States of America and has
a year-end of June 30.

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting period. Actual results could differ from those estimates.

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

During interim periods, the Company follows the accounting policies set forth in
its annual  audited  financial  statements  filed with the U. S.  Securities and
Exchange  Commission on its Annual Report on Form 10-KSB for the year ended June
30, 2007. The information  presented within these interim  financial  statements
may not  include  all  disclosures  required by  generally  accepted  accounting
principles and the users of financial  information  provided for interim periods
should refer to the annual  financial  information  and footnotes when reviewing
the interim financial results presented herein.

In the opinion of management,  the accompanying  interim  financial  statements,
prepared in  accordance  with the U. S.  Securities  and  Exchange  Commission's
instructions   for  Form  10-QSB,   are   unaudited  and  contain  all  material
adjustments,  consisting  only of  normal  recurring  adjustments  necessary  to
present fairly the financial condition,  results of operations and cash flows of
the Company for the respective  interim  periods  presented.  The current period
results of operations are not necessarily indicative of results which ultimately
will be reported for the full fiscal year ending June 30, 2008.


Note C - Going Concern Uncertainty

The Company has no post-bankruptcy  operating history,  limited cash on hand, no
other  operating  assets and has a business plan with inherent risk.  Because of
these  factors,  the  Company's  auditors  have  issued an audit  opinion on the
Company's  financial  statements  for each of the years  ended June 30, 2007 and
2006,  respectively,  which includes a statement  describing the Company's going
concern status.  Accordingly,  in the Company's  auditor's  opinion  substantial
doubt exists about the  Company's  ability to continue as a going concern at the
date of their opinion.



                                                                               7
<PAGE>

                               Nevstar Corporation
                        (a development stage enterprise)
                    Notes to Financial Statements - Continued
                           September 30, 2007 and 2006


Note C - Going Concern Uncertainty - Continued

The Company's majority stockholder maintains the corporate status of the Company
and has provided all nominal  working  capital  support on the Company's  behalf
since the bankruptcy  discharge date. Because of the Company's lack of operating
assets,  its  continuance  is fully  dependent  upon the majority  stockholder's
continuing support.  The majority stockholder intends to continue the funding of
nominal necessary expenses to sustain the corporate entity.

The  Company's  continued  existence is  dependent  upon its ability to generate
sufficient cash flows from operations to support its daily operations as well as
provide sufficient resources to retire existing liabilities and obligations on a
timely basis.  The Company faces  considerable  risk in its business plan. If no
additional  operating  capital is received  during the next twelve  months,  the
Company will be forced to rely on existing cash in the bank and additional funds
loaned by management and/or significant stockholders.  In the event, the Company
is unable to acquire advances from management and/or  significant  stockholders,
the Company's ongoing operations would be negatively impacted.

The Company's  business plan is to seek an  acquisition or merger with a private
operating   company  which  offers  an  opportunity   for  growth  and  possible
appreciation of our stockholders'  investment in the then issued and outstanding
common stock.  However,  there is no assurance  that the Company will be able to
successfully  consummate  an  acquisition  or merger  with a  private  operating
company or, if  successful,  that any  acquisition  or merger will result in the
appreciation  of our  stockholders'  investment in the then  outstanding  common
stock.

The Company  remains  dependent upon additional  external  sources of financing;
including being dependent upon its management and/or significant stockholders to
provide   sufficient   working  capital  in  excess  of  the  Company's  initial
capitalization to preserve the integrity of the corporate entity.

The Company  anticipates  offering future sales of equity  securities.  However,
there is no assurance that the Company will be able to obtain additional funding
through the sales of additional  equity  securities  or, that such  funding,  if
available, will be obtained on terms favorable to or affordable by the Company.

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


Note D - Summary of Significant Accounting Policies

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

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

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

     The Company uses the asset and liability  method of  accounting  for income
     taxes. At September 30, 2007 and 2006, respectively, the deferred tax asset
     and deferred  tax  liability  accounts,  as recorded  when  material to the
     financial  statements,  are entirely  the result of temporary  differences.
     Temporary  differences  represent  differences in the recognition of assets
     and liabilities for tax and financial reporting purposes.

     As of September  30, 2007 and 2006,  the deferred tax asset  related to the
     Company's net operating loss  carryforward  is fully  reserved.  Due to the
     provisions of Internal  Revenue Code, the Company may have no net operating
     loss  carryforwards  available to offset financial  statement or tax return
     taxable  income  in  future  periods  as a result  of a change  in  control
     involving  50  percentage  points  or more of the  issued  and  outstanding
     securities of the Company.



                                                                               8
<PAGE>

                               Nevstar Corporation
                        (a development stage enterprise)
                    Notes to Financial Statements - Continued
                           September 30, 2007 and 2006


Note D - Summary of Significant Accounting Policies - Continued

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

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

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

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

     At September 30, 2007 and 2006, and subsequent thereto,  the Company had no
     outstanding common stock equivalents.

4.   Pending and/or New Accounting Pronouncements
     --------------------------------------------

     In July 2006,  the  Financial  Accounting  Standards  Board  (FASB)  issued
     Interpretation  No. 48,  "Accounting  for  Uncertainty in Income Taxes (FIN
     48).  This  interpretation  requires the  recognition  and  measurement  of
     uncertain income tax positions using a "more-likely-than-not" approach. The
     provisions  of  FIN 48 are  effective  for  fiscal  years  beginning  after
     December 15, 2006. The adoption of this  accounting  pronouncement  did not
     have a material effect on its financial statements.

     The  Company  is also of the  opinion  that any  other  pending  accounting
     pronouncements,  either in the  adoption  phase or not yet  required  to be
     adopted,  will not have a  significant  impact on the  Company's  financial
     position or results of operations.


Note E - Fair Value of Financial Instruments

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

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

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


Note F - Pre-Petition Tax Liabilities

Certain  pre-petition tax liabilities to the Nevada  Department of Taxation were
agreed to be retired,  pursuant to the Bankruptcy Code and stipulations  entered
into  between the  parties and the  Company,  plus  interest at 5% in  quarterly
payments  ending  September 2009. The Company settled this debt for $85,000 cash
on  April  9,  2007  and  recognized  an   approximate   $44,580  gain  on  debt
extinguishment.


                                                                               9
<PAGE>

                               Nevstar Corporation
                        (a development stage enterprise)
                    Notes to Financial Statements - Continued
                           September 30, 2007 and 2006


Note F - Pre-Petition Tax Liabilities - Continued

During the quarter  ended  December 31, 2005,  the Company  reached a settlement
agreement with the Nevada Gaming Commission and paid approximately  $51,220 as a
"settlement in full" on the outstanding debt, resulting in an approximate $9,985
gain on debt extinguishment.


Note G - Line of Credit Notes Payable to Shareholders

W/F Investment Corp.
--------------------

The Company had a $250,000  revolving  line of credit with W/F  Investment  Corp
(W/F),  a company  stockholder  and key  participant  in the  Company's  Plan of
Reorganization  in the Second Chapter 11 Proceeding.  Proceeds from this Line of
Credit were used to pay the  Company's  obligations,  including  the  bankruptcy
related allowed administrative expenses, accounting, legal and related expenses.
The Line of Credit bore interest at prime plus 2%, payable monthly.  The Line of
Credit was due October 31, 2007.

On November  17,  2006,  the Company  satisfied  the terms and  conditions  of a
Settlement  and Stock  Issuance  Agreement with W/F with the payment of $100,000
cash and the issuance of 107,000 shares of restricted common stock to settle the
Company's  aggregate debt  obligation of  approximately  $501,946.  The form and
terms of the  agreement  were agreed upon as part of the October  2005 change in
control  transaction  as disclosed in the Company's  Current  Report on Form 8-K
filed with the SEC on October 12, 2005.

Halter Financial Investments, LP
--------------------------------

The Company and Halter Financial Investments,  LP (HFI), an entity controlled by
the Company's  President and Chief Executive  Officer,  have  acknowledged  that
outside funds are necessary to support the corporate  entity and comply with the
periodic  reporting  requirements  of the  Securities  Exchange Act of 1934,  as
amended.  To this end,  HFI has agreed to lend the Company up  to$50,000  with a
maturity  period not to exceed two (2) years from the initial funding date at an
interest  rate  of  6.0%  per  annum.  Through  September  30,  2007  and  2006,
respectively,  HFI has advanced approximately $45,753 and $8,500,  respectively,
under this agreement, with an initial scheduled maturity date in May 2008.


Note H - Income Taxes

The  components  of income tax  (benefit)  expense  for each of the three  month
periods  ended  September 30, 2007 and 2006 and for the period from November 22,
2002 (date of bankruptcy settlement) through September 30, 2007 is as follows:


                                                          Period from
                                                        November 22, 2002
                         Three months    Three months  (date of bankruptcy
                             ended           ended     settlement) through
                         September 30,   September 30,   September 30,
                             2007            2006            2007
                           -------         -------         -------
       Federal:
         Current           $    --         $    --         $    --
         Deferred               --              --              --
                           -------         -------         -------
                                --              --              --
                           -------         -------         -------
       State:
         Current                --              --              --
         Deferred               --              --              --
                           -------         -------         -------
                                --              --              --
                           -------         -------         -------
         Total             $    --         $    --         $    --
                           =======         =======         =======




                                                                              10
<PAGE>
<TABLE>
<CAPTION>

                               Nevstar Corporation
                        (a development stage enterprise)
                    Notes to Financial Statements - Continued
                           September 30, 2007 and 2006


Note H - Income Taxes - Continued

As a result of a October  28,  2005  change in  control,  the  Company has a net
operating loss  carryforward of  approximately  $55,000 to offset future taxable
income.  The amount and availability of any net operating loss carryforwards may
be subject to limitations set forth by the Internal  Revenue Code.  Factors such
as the number of shares  ultimately issued within a three year look-back period;
whether  there is a deemed  more than 50  percent  change in  control  involving
holders of 5.0% or more of the issued and  outstanding  shares of common  stock;
the  applicable  long-term  tax  exempt  bond  rate;  continuity  of  historical
business;  and  subsequent  income  of the  Company  all enter  into the  annual
computation of allowable annual utilization of the carryforwards.

The Company's  income tax expense  (benefit) for each of the three month periods
ended  September  30,  2007 and 2006 and for the period from  November  22, 2002
(date  of  bankruptcy  settlement)  through  September  30,  2007  respectively,
differed from the statutory federal rate of 34 percent as follows:

                                                                                                 Period from
                                                                                               November 22, 2002
                                                           Three months       Three months    (date of bankruptcy
                                                               ended              ended       settlement) through
                                                           September 30,      September 30,      September 30,
                                                               2007               2006               2007
                                                            ---------          ---------          ---------
<S>                                                         <C>                <C>                <C>

Statutory rate applied to income before income taxes        $  (4,800)         $ (10,700)         $(675,700)
Increase (decrease) in income taxes resulting from:
     State income taxes                                          --                 --                 --
     Compensation expense related to common
     stock issuances at less than "fair value"                   --                 --              590,500
     Other, including reserve for deferred tax asset
       and application of net operating loss carryforward       4,800             10,700             85,200
                                                            ---------          ---------          ---------

     Income tax expense                                     $    --            $    --            $    --
                                                            =========          =========          =========


</TABLE>

The  Company's  available  net operating  loss  carryforward,  subsequent to the
October 28, 2005 change in control, is approximately $55,000 and gives rise to a
deferred  tax asset of  approximately  $18,700 as of September  30,  2007.  This
deferred tax asset is fully  reserved due to the  uncertainty  of it's  ultimate
utilization, if any, in future periods.


Note I - Common Stock Transactions

On November  17,  2006,  the Company  sold to HFI 723,641  shares of  restricted
common stock for approximately  $217,000 or $0.30 per share. The transaction was
effected pursuant to the terms of a Stock Purchase Agreement entered into by the
Company and HFI on October 11,  2005.  The  purchase  transaction  was  effected
without  registration  in reliance  upon Section 4(2) of the  Securities  Act of
1933.  The form and terms of the purchase  agreement were agreed upon as part of
the October 2005 change in control  transaction  as  disclosed in the  Company's
Current  Report on Form 8-K filed  with the SEC on  October  12,  2005.  As this
selling   price  was   substantially   below  the  "fair  value"  of  comparable
transactions,  the Company  recognized  a charge to  operations  for  consulting
expense of  approximately  $1,736,700  equivalent to the difference  between the
established "fair value" of $2.70 per share (as determined by the quoted closing
price of the  Company's  common  stock on the date of the  transaction)  and the
selling price of $0.30 per share.

On November  17,  2006,  the Company  satisfied  the terms and  conditions  of a
Settlement  and Stock  Issuance  Agreement with W/F with the payment of $100,000
cash and the issuance of 107,000 shares of restricted common stock to settle the
Company's debt obligation to W/F of approximately  $501,946.  The form and terms
of the agreement  were agreed upon as part of the October 2005 change in control
transaction as disclosed in the Company's  Current Report on Form 8-K filed with
the SEC on October 12, 2005.



                                                                              11
<PAGE>


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

(1)  Caution Regarding Forward-Looking Information

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

Such factors include, among others, the following:  international,  national and
local general economic and market conditions:  demographic  changes; the ability
of the Company to sustain,  manage or  forecast  its growth;  the ability of the
Company to successfully make and integrate acquisitions;  raw material costs and
availability;  new product  development and  introduction;  existing  government
regulations  and  changes  in,  or  the  failure  to  comply  with,   government
regulations;  adverse publicity;  competition; the loss of significant customers
or suppliers;  fluctuations  and  difficulty in forecasting  operating  results;
changes in business strategy or development  plans;  business  disruptions;  the
ability  to attract  and  retain  qualified  personnel;  the  ability to protect
technology; and other factors referenced in this and previous filings.

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

(2)  Results of Operations, Liquidity and Capital Resources

Quarter Ended September 30, 2007 compared to September 30, 2006
---------------------------------------------------------------

The  Company  had no  revenue  for the  respective  three  month  periods  ended
September 30, 2007 and 2006, respectively.

During each of the three month  periods ended  September 30, 2007 and 2006,  the
Company  recognized  general  operating  expenses of  approximately  $13,500 and
$11,900,  respectively,  which were directly related to the Company's compliance
with the periodic reporting requirements of the Securities Exchange Act of 1934,
as amended.

The Company accrued  interest  expense on  pre-petition  tax liabilities and the
Line of Credit notes  payable to  stockholders  totaled  approximately  $700 and
$19,500 for each of the three month periods  ended  September 30, 2007 and 2006,
respectively.

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

At  September  30,  2007,  the  Company  had  working  capital of  approximately
$(52,000).

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

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

Plan of Business
----------------

General
-------

The  Company  intends to locate and  combine  with an  existing,  privately-held
company which is profitable  or, in  management's  view,  has growth  potential,
irrespective of the industry in which it is engaged.  However,  the Company does
not  intend  to  combine  with a  private  company  which may be deemed to be an
investment  company subject to the Investment Company Act of 1940. A combination



                                                                              12
<PAGE>

may be structured as a merger,  consolidation,  exchange of the Company's common
stock for stock or assets or any other form which  will  result in the  combined
enterprise's becoming a publicly-held corporation.

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

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

Combination Suitability Standards
---------------------------------

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

(1)  will have been  convicted  of  securities  fraud,  mail  fraud,  tax fraud,
     embezzlement,   bribery,   or  a   similar   criminal   offense   involving
     misappropriation  or  theft  of  funds,  or be  the  subject  of a  pending
     investigation or indictment involving any of those offenses;

(2)  will  have  been  subject  to  a  temporary  or  permanent   injunction  or
     restraining order arising from unlawful transactions in securities, whether
     as issuer,  underwriter,  broker, dealer, or investment advisor, may be the
     subject of any pending  investigation  or a defendant in a pending  lawsuit
     arising  from  or  based  upon  allegations  of  unlawful  transactions  in
     securities; or

(3)  will have been a  defendant  in a civil  action  which  resulted in a final
     judgement  against  it or him  awarding  damages or  rescission  based upon
     unlawful practices or sales of securities.

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


Item 3 - Controls and Procedures

(a)  Evaluation of Disclosure Controls and Procedures

     Under  the  supervision  and  with  the  participation  of our  management,
     including our principal  executive officer and principal financial officer,
     we conducted an evaluation of our disclosure  controls and  procedures,  as
     such term is defined under Rule 13a-15(e)  promulgated under the Securities
     Exchange Act of 1934, as amended  (Exchange Act), as of September 30, 2007.
     Based on this  evaluation,  our principal  executive  officer and principal
     financial officer concluded that our disclosure controls and procedures are
     effective  in  alerting  them on a  timely  basis to  material  information



                                                                              13
<PAGE>

     relating  to our Company  required  to be included in our reports  filed or
     submitted under the Exchange Act.

(b)  Changes in Internal Controls

     There were no significant changes (including corrective actions with regard
     to  significant  deficiencies  or  material  weaknesses)  in  our  internal
     controls over financial  reporting  that occurred  during the quarter ended
     September 30, 2007 that has materially affected, or is reasonably likely to
     materially affect, our internal control over financial reporting.


Part II - Other Information

Item 1 - Legal Proceedings

     None

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

     None

Item 3 - Defaults on Senior Securities

     None

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

     The Company has held no regularly scheduled,  called or special meetings of
     stockholders during the reporting period.

Item 5 - Other Information

     None

Item 6 - Exhibits

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



                                   SIGNATURES

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

                                                             Nevstar Corporation

Dated: October 29, 2007                             /s/ Timothy P. Halter
       ----------------                    -------------------------------------
                                                               Timothy P. Halter
                                              President, Chief Executive Officer
                                            Chief Financial Officer and Director