UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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, 2004
                                                ------------------

[ ]  Transition  report under Section 13 or 15(d) of the  Securities  Exchange
     Act of 1934 For the transition period from _____ to _____


                        Commission file number: 000-26095


                              ENVIROKARE TECH, INC.
        ---------------------------------------------------------------
        Exact name of small business issuer as specified in its charter)


            Nevada                                             88-0412549
-------------------------------                            ------------------
State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                            Identification No.)



             5850 T.G. Lee Blvd., Suite 535, Orlando, Florida 32822
             ------------------------------------------------------
                    (Address of principal executive offices)


                                 (407) 856-8882
                           --------------------------
                           (Issuer's telephone number)


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS


Check whether the issuer filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
under a plan confirmed by a court. Yes [ ] No [ ] NOT APPLICABLE


                      APPLICABLE ONLY TO CORPORATE ISSUERS


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest  practicable date: The total number of shares of Common
Stock,  par value  $.001 per  share,  outstanding  as of November 16,  2004, was
37,543,980.

Transitional Small Business Disclosure Format (Check one):  Yes [ ]  No [X]

<PAGE>


                                TABLE OF CONTENTS


Part I - FINANCIAL INFORMATION

         Item 1.  Financial Statements:

                   Consolidated Balance Sheets.................................4

                   Consolidated Statements of Operations.......................5

                   Consolidated Statements of Cash Flows.......................6

                   Condensed Notes to the Consolidated Financial Statements....7


         Item 2.  Management's Discussion and Analysis or Plan of Operations..11

         Item 3.  Control and Procedures......................................14


Part II - OTHER INFORMATION

         Item 1.    Legal Proceedings.........................................15

         Item 2.    Changes in Securities.....................................15

         Item 3.    Defaults Upon Senior Securities...........................15

         Item 4.    Submission of Matters to a Vote of Security Holders.......15

         Item 5     Other Information.........................................15

         Item 6.    Exhibits and Reports on Form 8-K..........................16


SIGNATURES....................................................................19




<PAGE>
             CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS


This document contains forward-looking  statements within the meaning of Section
27A of the Securities  Act and Section 21E of the Exchange Act. All  statements,
other than  statements  of  historical  facts,  included in or  incorporated  by
reference into this Form 10-QSB which address activities, events or developments
which the  Company  expects,  believes or  anticipates  will or may occur in the
future  are  forward-looking   statements.   The  words  "believes,"  "intends,"
"expects,"  "anticipates,"   "projects,"  "estimates,"  "predicts"  and  similar
expressions  are also  intended to identify  forward-looking  statements.  These
forward-looking   statements  include,  among  others,   statements  concerning:
expectations,   anticipations,  beliefs,  estimations,  projections,  and  other
similar matters that are not historical facts,  including such matters as future
capital  and  development  expenditures  and  expansion  and growth of  business
operations.

These  statements  are based on certain  assumptions  and  analysis  made by the
management of Envirokare  Tech Inc.,  ("ENVIROKARE")  in light of its experience
and its perception of historical trends,  current conditions and expected future
developments  as well as  other  factors  it  believes  are  appropriate  in the
circumstances.

Envirokare cautions the reader that these forward-looking statements are subject
to risks and  uncertainties,  including  those  associated  with:  the financial
environment,  general economic,  market and business conditions,  the regulatory
environment,  business  opportunities  that may be  presented  to and pursued by
Envirokare,  changes in laws or regulations,  availability to obtain  additional
financing on favorable conditions, trend projections, and other factors, many of
which are beyond the Company's control that could cause actual events or results
to differ  materially from those  expressed or implied by the  statements.  Such
risks and uncertainties include those risks and uncertainties  identified in the
Description of the Business and Management's Discussion and Analysis sections of
this  document and risk  factors  discussed  from time to time in the  Company's
filings with the Securities and Exchange Commission.

Significant  factors that could  prevent  Envirokare  from  achieving its stated
goals  include:  the  inability of  Envirokare  to obtain  financing for capital
expenditures and acquisitions,  declines or failure to develop in the market for
the Company's  products,  development of superior  products by competition,  and
adverse changes in the regulatory environment affecting the Company.

The cautionary  statements  contained or referred to in this document  should be
considered in connection  with any  subsequent  written or oral  forward-looking
statements  that may be issued by Envirokare  or persons  acting on its or their
behalf.

Envirokare  undertakes no  obligation  to release  publicly any revisions to any
forward-looking  statements to reflect  events or  circumstances  after the date
hereof or to reflect the occurrence of unanticipated events.





                                        2
<PAGE>

                         PART I - FINANCIAL INFORMATION



Item 1.           Financial Statements












                              ENVIROKARE TECH INC.
                              Financial Statements

                               September 30, 2004




















                                        3
<PAGE>
<TABLE>
<CAPTION>
                                              ENVIROKARE TECH, INC.
                                         (A Development Stage Company)
                                          CONSOLIDATED BALANCE SHEETS

                                                                             September 30,
                                                                                 2004            December 31,
                                                                              (unaudited)            2003
                                                                         -----------------     -----------------
<S>                                                                     <C>                    <C>
 ASSETS
     CURRENT ASSETS
          Cash                                                           $        322,741      $         65,809
          Deposits and retainers                                                   24,966                22,466
          Prepaid expenses                                                          7,521                 5,916
          Inventory                                                                43,216                43,216
                                                                         -----------------     -----------------
              TOTAL CURRENT ASSETS                                                398,444               137,407
                                                                         -----------------     -----------------
     PROPERTY AND EQUIPMENT
          Furniture and fixtures                                                    7,129                 7,129
          Office equipment                                                         24,300                18,167
          Molds                                                                   170,912               170,912
              Less accumulated depreciation                                       (13,151)               (8,050)
                                                                         -----------------     -----------------
              TOTAL PROPERTY AND EQUIPMENT                                        189,190               188,158
                                                                         -----------------     -----------------
     OTHER ASSETS
          License agreement                                                       525,000               525,000
          Patent acquisition costs and technology rights                        1,958,939             1,958,939
                                                                         -----------------     -----------------
              TOTAL OTHER ASSETS                                                2,483,939             2,483,939
                                                                         -----------------     -----------------
          TOTAL ASSETS                                                   $      3,071,573      $      2,809,504
                                                                         =================     =================

LIABILITIES & STOCKHOLDERS' EQUITY

     CURRENT LIABILITIES
          Accounts payable                                               $        322,019      $        327,285
          Accounts Payable - related party                                        168,765                47,085
          Deposits from customers                                                  61,215                61,215
          Deposit on exclusivity agreement                                        250,000
          Notes payable                                                            75,851                77,790
          Accrued interest                                                         36,226                31,579
          Accrued interest to stockholders                                              -                16,259
          Equipment lease payable, current portion                                  5,200                 3,144
          Notes payable to stockholders, current portion                           96,532                86,321
                                                                         -----------------     -----------------
              TOTAL CURRENT LIABILITIES                                         1,015,808               650,678
                                                                         -----------------     -----------------
       LONG TERM LIABILITIES
          Equipment lease payable, net of current portion                           5,791                 5,196
          Notes payable to stockholders, net current portion                    1,510,950             1,584,566
                                                                         -----------------     -----------------
              TOTAL LONG TERM LIABILITIES                                       1,516,741             1,589,762
                                                                         -----------------     -----------------
      COMMITMENTS AND CONTINGENCIES                                                     -                     -

      STOCKHOLDERS' EQUITY
          Convertible preferred stock, 10,000,000 shares authorized,
              $.001 par value; 0 shares issued and outstanding                          -                     -
          Common stock, 200,000,000 shares authorized,
              $.001 par value; 37,543,980 and 32,992,390 shares
              issued and outstanding, respectively                                 37,544                32,992
          Additional paid-in capital                                            5,838,496             5,060,660
          Stock options and warrants                                            1,255,458               994,896
          Accumulated deficit during development stage                         (6,592,474)           (5,519,484)
                                                                         -----------------     -----------------
              TOTAL STOCKHOLDERS' EQUITY                                          539,024               569,064
                                                                         -----------------     -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                               $      3,071,573      $      2,809,505
                                                                         =================     =================



        The accompanying condensed notes are an integral part of these consolidated financial statements.

                                                       4
</table>
<PAGE>
<TABLE>
<CAPTION>



                                                        ENVIROKARE TECH, INC.
                                                   (A Development Stage Company)
                                               CONSOLIDATED STATEMENTS OF OPERATIONS




                                                                                                                  Period from
                                         Three Months       Three Months       Nine Months       Nine Months      June 15,1998
                                            Ended              Ended             Ended             Ended          Inception) to
                                         September 30,      September 30,     September 30,     September 30,     September 30,
                                             2004              2003               2004              2003              2004
                                         (unaudited)        (unaudited)       (unaudited)       (unaudited)       (unaudited)
                                        --------------     --------------    --------------    --------------    --------------
<S>                                 <C>                   <C>               <C>
REVENUES                                $          -        $        -        $         -       $    37,150      $    62,150
COST OF GOODS SOLD                                 -                 -                  -           (17,500)         (17,500)
                                        --------------     --------------    --------------    --------------    --------------
 GROSS PROFIT                                      -                 -                  -            19,650           44,650
                                        --------------     --------------    --------------    --------------    --------------

EXPENSES

     Consulting fees - related parties        88,461            15,750            267,117            89,084        1,331,223
     Other consulting fees                     4,560            25,926             61,340            75,581        1,106,778
     Financing costs                               -            42,000                  -            42,000           42,000
     Board of directors fees                  89,420                 -             89,420                 -          457,109
     Rent                                     27,034            19,693             65,346            60,376          148,205
     General and administrative               65,677            68,886            169,914           138,822          962,212
     Depreciation                              3,054               636              5,102             2,000           16,114
     Professional fees                        46,884            91,671            191,822           229,474        1,027,571
     Research and development                  1,850               500              6,909            59,873          305,374
     Wages, salaries, and payroll taxes        5,843            15,307             45,236            26,622          220,740
                                        --------------     --------------    --------------    --------------    --------------
          TOTAL EXPENSES                     332,783           238,369            902,206           723,832        5,617,326
                                        --------------     --------------    --------------    --------------    --------------

LOSS FROM OPERATIONS                        (332,783)         (238,369)          (902,206)         (704,182)      (5,999,966)

OTHER INCOME (EXPENSE)
     Financing costs                               -                 -                  -                 -         (469,290)
     Gain on sale of assets                        -                 -                  -               577              577
     Interest expense                        (55,465)          (51,014)          (170,786)         (134,350)        (593,085)
                                        --------------     --------------    --------------    --------------    --------------
           TOTAL OTHER INCOME (EXPENSE)      (55,465)          (93,014)          (170,786)         (133,773)      (1,061,798)
                                        --------------     --------------    --------------    --------------    --------------

LOSS BEFORE PROVISION FOR INCOME TAXES      (388,248)         (331,383)        (1,072,992)         (837,955)      (6,592,474)

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

NET LOSS                                $   (388,248)       $ (331,383)       $(1,072,992)     $   (837,955)     $(6,592,474)
                                        ==============     ==============    ==============    ==============    ==============

 BASIC AND DILUTED NET LOSS
  PER COMMON SHARE                      $      (0.01)       $    (0.01)       $     (0.03)      $     (0.03)
                                        ==============     ==============    ==============    ==============

 WEIGHTED AVERAGE NUMBER OF BASIC
  AND DILUTED COMMON STOCK SHARES
  OUTSTANDING                              36,659,197        31,739,880         35,112,010        31,269,306
                                        ==============     ==============    ==============    ==============





        The accompanying condensed notes are an integral part of these consolidated financial statements.

                                                       5


</table>
<PAGE>
<TABLE>
<CAPTION>
                                                   ENVIROKARE TECH, INC.
                                              (A Development Stage Company)
                                           CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                                                Period from
                                                                     Nine Months          Nine Months           June 15,1998
                                                                        Ended                Ended             (Inception) to
                                                                    September 30,         September 30,         September 30,
                                                                         2004                 2003                  2004
                                                                     (unaudited)           (unaudited)           (unaudited)
                                                                  ------------------    ------------------    ------------------
<S>                                                             <C>                     <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net loss                                                    $     (1,072,992)      $      (837,955)      $    (6,592,476)
      Adjustments to reconcile net loss
        to net cash used by operating activities:
      Depreciation                                                           5,102                 2,000                16,114
      Gain on disposal or impairment of assets                                   -                     -                35,943
      Stock options and warrants issued for fees and expenses               89,420                42,000             1,815,572
      Common stock issued for consulting fees                               38,780                     -               150,780
      Common stock issued for retirement of debt                           134,000                     -               134,000
      Interest paid with issuance of debt                                        -                     -               350,890
      Deposits                                                              (2,500)                    -                58,715
      Inventory                                                                  -               (42,200)              (43,216)
      Prepaid expenses                                                      (1,605)               (6,537)               (7,521)
      Accounts payable - related parties                                   121,682                     -               322,029
      Accounts payable and accrued expenses                                 (5,266)              223,557               168,760
      Accrued interest                                                     (11,612)              129,071                50,978
      Deposit on exclusivity agreement                                     250,000                     -               250,000
                                                                  ------------------    ------------------    ------------------
      Net cash used by operating activities                               (454,991)             (490,064)           (3,289,432)
                                                                  ------------------    ------------------    ------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
      Deposits and retainers                                                     -                43,538               (22,465)
      Purchase of equipment and molds                                            -              (116,247)             (214,187)
      Payments of license agreement                                              -                     -              (525,000)
      Patent costs                                                               -                     -               (10,129)
      Proceeds from sale of equipment                                            -                 1,275                 1,275
                                                                  ------------------    ------------------    ------------------
      Net cash used by investing activities                                      -               (71,434)             (770,506)
                                                                  ------------------    ------------------    ------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
      Payment on equipment lease                                            (3,483)                    -                (4,606)
      Payment of notes payable                                              (1,939)                    -                (7,243)
      Proceeds from sale of preferred stock                                      -                     -               250,000
      Proceeds from sale of common stock and
        exercise of warrants                                               780,750               278,000             2,861,799
      Repurchase of common stock                                                 -                     -                (7,500)
      Proceeds from (payment of) notes payable to
        related parties                                                    (63,405)              290,000             1,290,230
                                                                  ------------------    ------------------    ------------------
      Net cash provided by financing activities                            711,923               568,000             4,382,680
                                                                  ------------------    ------------------    ------------------
Increase in cash                                                           256,932                 6,502               322,741

Cash, beginning of period                                                   65,809                 9,506                     -
                                                                  ------------------    ------------------    ------------------
Cash, end of period                                               $        322,741       $        16,008       $       322,741
                                                                  ==================    ==================    ==================
SUPPLEMENTAL CASH FLOW INFORMATION:
      Interest paid                                               $          1,072       $         1,782       $        16,061
                                                                  ==================    ==================    ==================
      Income taxes paid                                           $              -       $             -       $             -
                                                                  ==================    ==================    ==================

NON-CASH TRANSACTIONS:
      Common stock issued for acquisition of subsidiary           $              -       $             -       $     1,925,000
      Note issued for pending patent to related party
       and for deposit for stock                                  $              -       $             -       $       136,965
      Warrants issued for financing activities                    $              -       $             -       $       469,291
      Stock options issued for consulting fees                    $         89,420       $        42,000       $     1,815,572
      Stock options issued for directors fees                     $         38,780       $             -       $       150,780
      Common stock issued for retirement of debt                  $        134,000       $             -       $       134,000
      Stockholder's contribution for equipment                    $              -       $             -       $         1,847
      Equipment acquired via capital lease                        $          6,132       $             -       $        15,595


                    The accompanying condensed notes are an integral part of these consolidated financial statements.

                                                                    6
</table>
<PAGE>
                             ENVIROKARE TECH, INC.
                         (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               SEPTEMBER 30, 2004


NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Envirokare  Tech,  Inc.   (hereinafter,   "the  Company"  or  "Envirokare")  was
incorporated  in June 1998  under the laws of the State of Nevada.  In  December
1998, the Company  acquired assets of a business  engaged in developing a rubber
mold technology and patent rights  potentially  applicable to future development
of a pallet made of recycled  materials.  The Company  believes the  early-stage
rubber mold technology to be of marginal commercial value.

During 2001, the Company acquired, via license agreement,  extensive rights to a
proprietary thermoplastic processing technology,  the Thermoplastic Flow forming
process  (variously  referred to herein as "TPF Process",  the "Process" or "TPF
technology").  The licensing  agreement provides the Company with the ability to
utilize the TPF technology to design, develop, manufacture,  market, license and
sublicense  a wide range of large  structural  parts,  including  the  Company's
proprietary  pallet.  The  pallet  is  now  composed  of  long-fiber  reinforced
thermoplastic  composite  and  will  be  manufactured  using  the  acquired  TPF
technology.

The Company's current operating  strategy is based on developing  products to be
manufactured  by the TPF Process,  as well as marketing  the TPF  technology  to
potential sublicensees of the Company. The Company maintains offices in Orlando,
Florida. The Company has elected a fiscal year-end of December 31.

The  Company  includes  the assets and  investment  in  Electroship  Acquisition
Corporation  and  Envirokare   Composite   Corp.,   wholly-owned   non-operating
subsidiaries, in these financial statements.

The Company is in the  development  stage as of  September  30, 2004 and has not
realized any significant revenues from planned operations.

Basis of Preparation
--------------------

The  accompanying   interim  condensed  financial  statements  are  prepared  in
accordance  with rules set forth in Regulation SB of the Securities and Exchange
Commission.  As said, these  statements do not include all disclosures  required
under generally  accepted  principles and should be read in conjunction with the
audited  financial  statements  for the year ended  December  31,  2003.  In the
opinion  of  management,   all  required   adjustments,   consisting  of  normal
reoccurring  accruals,  have been made to the  Company's  financial  statements.
Operating  results  for the  nine  months  ended  September  30,  2004,  are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2004.



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Going Concern
-------------

The  accompanying  financial  statements  have been  prepared  assuming that the
Company will continue as a going concern.

As shown in the accompanying  financial statements,  the Company has incurred an
accumulated  deficit of $6,592,474,  which includes a net loss of $1,072,992 for
the nine months ended  September 30, 2004, and has a working capital deficit and
limited  revenues.  The  Company,  being  a  development  stage  enterprise,  is
currently marketing the TPF technology which will, if successful, mitigate these
factors which raise substantial doubt about the Company's ability to continue as
a going concern.  Management plans to fund operations from sales of its debt and
equity in the near-term and from product sales,  product development  agreements
and proceeds realized from licensing the TPF technology on an ongoing basis. The
Company has  historically  raised equity capital  through the sale of its common
and preferred  stock.  The Company has also raised debt capital  through private
placement  offerings.  Management  has  proceeded  as  planned  in  the  ongoing
development of numerous  products,  including a proprietary  pallet  composed of
long-fiber reinforced thermoplastic composite.  Management is also marketing the
TPF  technology  to various  potential  clients with the intent of  establishing
product  development  agreements,  with the agreements to include provisions for
manufacturing  and  marketing   successfully   developed  products.   Management
anticipates  that the Company  will realize  licensing  fee revenues in the near
future. The financial  statements do not include any adjustments relating to the
recoverability  and  classification  of  recorded  assets,  or the  amounts  and
classification  of liabilities  that might be necessary in the event the Company
cannot continue in its present form.

                                       7
<PAGE>
                             ENVIROKARE TECH, INC.
                         (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               SEPTEMBER 30, 2004


Revenue Recognition
-------------------

The Company recognizes revenue from sales when there is persuasive evidence that
an arrangement  exists,  services have been rendered,  the seller's price to the
buyer is determinable,  and  collectibility is reasonably  assured.  No revenues
have been recognized during the period ended September 30, 2004.


NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment are stated at cost.  Depreciation  is provided  using the
straight line method over the estimated useful lives of the assets,  which range
from three to seven years. Molds will be depreciated over their estimated useful
lives once placed in  service.  Depreciation  expense for the nine months  ended
September 30, 2004 and 2003 was $5,102 and $2,000, respectively.


NOTE 4 - NOTES PAYABLE - RELATED PARTIES

During the year ended December 31, 2003,  the Company  entered into a promissory
note  arrangement  with two Company  shareholders,  in the  principal  amount of
$100,000.  The note bears an interest  rate of 15% per annum with  principal and
interest payment payable in 36 equal monthly  installments of $3,467  commencing
September 1, 2003.  Three  common stock  warrants are attached to each dollar of
debt,  with an  exercise  price of $0.20 per  share.  These  warrants  are fully
exercisable for up to three years from the dates of issuance.

During the year ended December 31, 2003,  the Company  entered into a promissory
note with a director and shareholder,  in the principal amount of $200,000.  The
note  bears an  interest  rate of 15% per annum,  with  principal  and  interest
payment payable in 36 equal monthly  installments of $6,933,  commencing January
1, 2003.  Three common stock warrants are attached to each dollar of debt,  with
an exercise price of $0.20 per share.  These warrants are fully  exercisable for
up to three years from the dates of issuance.

Also in December 2003, the Company rolled all of its  outstanding  notes payable
and accrued  interest  to related  parties  into new notes.  These notes bear an
interest  rate of 12% per annum,  with  interest  only payable in equal  monthly
installments  of varying  amounts,  commencing on January 1, 2004.  Common stock
warrants totaling 5,125,000 were attached to these loans, with an exercise price
of $0.20 per share.  These warrants are fully  exercisable for up to three years
from the dates of issuance. Accrued interest on these notes totaled $123,822 for
the period ended September 30, 2004.


NOTE 5 - COMMON STOCK

During the nine months ended September 30, 2004, the Company  received  $780,750
from the  private  sale of  3,903,750  shares of its  common  stock at $0.20 per
share.  In  addition,   these  purchasers  received  warrants  to  purchase  one
additional share of common stock for each share purchased,  exercisable at $0.40
per  share for a period  of two to three  years.  The  warrants  were  valued at
$132,362. See Note 6. Additionally,  647,836 shares were issued in consideration
for $34,000 in accounts  payable  debt and $100,000 in related  party debt.  The
fair market  value of the share issued for  accounts  payable and related  party
debt were $0.23 and $0.18, respectively.

                                       8
<PAGE>
                             ENVIROKARE TECH, INC.
                         (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               SEPTEMBER 30, 2004

During the nine months ended September 30, 2003,  existing  warrant holders were
offered a reduction in their  respective  warrant  exercise prices from $0.50 to
$0.15 per share if exercised on or before February 14, 2003. This offer resulted
in the Company raising  $198,000 in cash and issuing  1,320,000 shares of common
stock.  Participants  were  issued  replacement  warrants,  exercisable  over  a
two-year period,  for the same number of shares of the Company's common stock as
issued on exercise of the amended warrants.  Additionally,  the Company received
$110,000  from the private  sale of 550,000  shares of its common stock at $0.20
per share. The purchasers  received warrants to purchase one additional share of
common  stock for each  share  purchased,  exercisable  at $0.40 per share for a
period of one year.


NOTE 6 - STOCK OPTIONS AND WARRANTS

Financial   Accounting   Standards   No.  123,   "Accounting   for   Stock-Based
Compensation" (hereinafter "SFAS No. 123"), defines a fair value-based method of
accounting  for stock  options  and other  equity  instruments.  The Company has
adopted this method,  which measures  compensation  costs based on the estimated
fair value of the award and  recognizes  that cost over the service  period.  In
accordance  with SFAS No.  123,  the fair value of stock  options  and  warrants
granted are estimated  using the  Black-Scholes  Option Price  Calculation.  The
following  assumptions were made to value the stock options and warrants for the
nine months ended September 30, 2004:  risk-free interest rate of 4%, volatility
of 53%, and terms of two to three years.

Options
-------

During the nine months ended  September 30, 2004,  the Company  granted  200,000
common stock  options,  exercisable  at $0.24 per share,  in  consideration  for
consulting services received. The Company has recorded a $38,780 expense related
to this  transaction.  Additionally,  the Company  granted  850,000 common stock
options,  exercisable at $0.23 per share, in consideration  for director's fees.
The Company has recorded a $89,420 expense related to this transaction.

Warrants
--------

During the nine months ended  September 30, 2004, the Company  issued  9,103,172
warrants valued at $132,362. See Note 5.


NOTE 7 - COMMITMENTS AND CONTINGENCIES

Lease Agreements
----------------

The  Company  entered  into a lease for  office  space in  Orlando,  Florida  on
September  16,  2002 for a period of 36 months.  Lease  payments  are  currently
$3,021 per month,  with additional  charges for common area. A security  deposit
was paid in the amount of $2,600.  Total  Orlando  lease  payments  for the nine
months ended September 30, 2004 and 2003 were $26,273 and $25,164 respectively.

The Company  entered  into a lease for office  space in Boca  Raton,  Florida on
February 7, 2001 for sixty  months.  Lease  payments  are  currently  $3,023 per
month,  with  additional  charges for common area of $1,472.  This amount totals
$4,495 per month.  A security  deposit  and last  month's  rent were paid in the
amount of $8,412. A portion of this office space was being  subleased,  with the
sublessee  reimbursing  the  Company  $3,000,  and the  Company's  share  of the
sublease  totaling  $1,764.  Total  net lease  payments  for nine  months  ended
September 30, 2004 and 2003 were $12,348 and $13,399,  respectively.  The future
minimum lease  payments  below for the Boca Raton office are the total amount of
the payments as if there was no sublease.  The Company  anticipates the sublease
to continue through the end of the lease term.

Future annual minimum  operating lease payments for the terms of the Orlando and
Boca Raton lease agreements are as follows for the years ending December 31:

                 Orlando Office    Boca Raton Office        Total
            --------------------  --------------------  ----------------
     2004   $             9,063   $             5,292   $         14,355
     2005   $            36,252   $            21,168   $         57,420
     2006   $                 -   $             8,990   $          8,990


                                       9
<PAGE>
                             ENVIROKARE TECH, INC.
                         (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               SEPTEMBER 30, 2004


Litigation
----------

The  Company is a named  defendant  in an action  filed by Mr. Real Morel in May
2000 in the Supreme Court of British Columbia, Canada. In this action, Mr. Morel
alleges non-payment by the Company of amounts due pursuant to the aforementioned
demand promissory notes.  After consultation with British Columbia legal counsel
and a review of the  circumstances  surrounding  the issuance of the notes,  the
Company  has  resolved  to dispute  this  liability.  Management  of the Company
believes  that the  outcome  will  not have a  material  adverse  effect  on the
financial position of the Company.

The Company has been made a defendant along with others  including Steve Pappas,
a Director  of the  Company,  in a  proceeding  filed in the  Superior  Court of
Cumberland County, Maine by former employees of Sports Quest of New England LLC,
for back wages and penalties  which could total more than $300,000.  The Company
has denied all liability,  ownership or other  involvement with Sport Quest LLC.
The matter is in the pleading stage.

Capital Leases
--------------

During the year ended December 31, 2003, the Company acquired computer equipment
through two capital leases. The Company recognizes the value of the equipment in
property,  plant  and  equipment  in the  financial  statements  and  the  lease
liability in both current liabilities and long-term liabilities on the financial
statements.  The leases,  totaling $9,463, are for 36 months,  with interest and
principal payments of $345 per month.  Interest of $737 was paid during the nine
months ended September 30, 2004. Future minimum lease payments for the remainder
of 2004 are $1,034.  For 2005 and 2006,  lease  payments  are $4,137 and $2,668,
respectively.

During the nine months ended September,  2004, the Company  acquired  additional
computer  equipment  under capital  lease  agreements.  These  leases,  totaling
$6,132,  are for 36 months,  with  interest and  principal  payments of $222 per
month.  Interest  of $335 was paid during the nine months  ended  September  30,
2004. Future minimum lease payments for the remainder of 2004 are $665. For 2005
and 2006, lease payments are $2,661 and $2,661, respectively.


NOTE 8 - EXCLUSIVITY AGREEMENT

In June 2004,  the  Company  entered  into an  exclusivity  agreement  with Nova
Chemicals,  Inc.  (hereinafter "Nova").  Under the terms of this agreement,  the
Company has agreed to not participate in any discussion or negotiations with any
third party regarding  transactions related to the use, license or sublicense of
the TPF  Technology.  The  term of the  agreement  ends  August  31,  2004.  The
agreement   requires  Nova  to  pay  the  Company  $250,000  as   consideration.
Additionally,  the Company must issue Nova a common stock  purchase  warrant for
1,250,000  shares at purchase price of $0.20 per share. If the  negotiations and
discussions  detailed in the agreement result in a definitive  agreement between
the parties for a  transaction,  Nova will receive  shares in the Company  worth
$250,000.  In this event, the warrants issued may be cancelled at the discretion
of the Company.

During the nine months  ended  September  30,  2004,  the Company  received  the
aforementioned  $250,000. The transaction has been recorded and is classified as
a current liability in the financial statements. In October of 2004, the Company
announced that the term of its exclusivity  agreement with Nova Chemicals,  Inc.
has been  extended to December 1, 2004.  The Company has received an  additional
$30,000 from Nova in connection with the agreement. See Note 8.


NOTE 9 - SUBSEQUENT EVENTS

In October of 2004, the Company issued an extension offer to existing holders of
the Company's  warrants that expire after January 1, 2004. The extension  offer,
provided at a price of $0.02 per warrant,  increases the exercise  period of the
related  warrants by fifteen  months from the current  date of  expiration.  The
Company raised $96,325 from participants to the extension offer.



                                       10
<PAGE>
ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.


     Envirokare  Tech,  Inc. (the "Company" or  "Envirokare")  is engaged in the
application  design,   development  and  manufacturing,   utilizing  proprietary
thermoplastic  composite  technologies  including Thermo Plastic Flowforming for
TPF(TM).

     Technology:  The TPF Process is a proprietary  process  developed by Thermo
Composite Designs,  Inc., that enables the manufacture of large structural parts
using long-fiber reinforced  thermoplastic resins. The Process utilizes recycled
or virgin resins and  immediately  reuses process scrap,  virtually  eliminating
production waste. TPF Process patent number 6719551 has been issued covering the
central  component of the TPF system,  its automated  discrete material delivery
system.  Two further Notices of Allowances  have been received for  applications
related to system and utility.

     Historically, advanced composite materials were utilized almost exclusively
by  the  military  and  aerospace  industries  where  such  usage  was  normally
restricted to the  manufacture of small parts due to the inordinate cost of hand
application,  i.e.,  the  process  of  manually  applying  layers  of  composite
materials to a mold or shape. The TPF Process  provides a  cost-effective  means
for the in-line production of larger, long-fiber reinforced plastic parts at low
processing  costs.  The  Process  has key  advantages  over  many  manufacturing
processes  currently in use such as compression  molding,  injection molding and
rotational  molding,  including  significantly,  cost  savings  realized  in the
reduced  labor  required  to create  larger  parts made  using the TPF  Process.
Material  costs will  typically  also be lower  because  of its use of  recycled
material,  reuse of its own production scrap and in-line  compounding,  which is
the  process  of  mixing  raw  material  components  as an  actual  part  of the
production process.

     The TPF Process has  application in a broad range of industries  including:
agriculture,  automotive,  material handling,  transportation,  marine, medical,
waste  management  and  aerospace.  TPF  composite  products  are an  advantaged
replacement for many wood, aluminum,  steel, other metal alloys, concrete, other
plastic and  fiberglass  products,  by providing  products  that have  corrosion
resistance,  are  lighter  and  cost  less to  manufacture.  As a  thermoplastic
process,  TPF has an  additional  advantage  in that it does not  emit  volatile
organic contaminants (VOCs).

     The  Company  is  acquiring  this  technology  through  License  and Merger
Agreements with Thermo Composite  Designs,  Inc. On March 30, 2001, the Company,
through its wholly-owned subsidiary, Envirokare Composite Corp. ("ECC"), entered
into a licensing  agreement  with TCD that  allows the  Company to  commercially
exploit the TPF Process.  The agreement provides the Company with the ability to
utilize the TPF technology to design, develop, manufacture,  market, license and
sublicense a wide range of  applications  including  the  Company's  proprietary
Pallet,  manufactured  through the joint  efforts of the Company and TCD, or the
Company's  sublicensees,   for  use  in  agriculture,   aerospace,   automotive,
construction,  marine, medical,  military,  transportation and waste management.
The Company paid TCD a one time license fee of $525,000 under the agreement. The
Company  entered  into  an  Amendment  ("Amendment")  signed  the  28th  day  of
September,  2003, amending that certain License Agreement  ("Agreement") entered
into on the 30th day of March,  2001 between  Thermoplastic  Composite  Designs,
Inc.,  a Florida  corporation  ("Licensor"),  having a business  address of 7400
State Road, #46, Mims, Florida 32754, and Envirokare Composite Corp., a Delaware
corporation, ("Licensee"). This amendment provided for the extension of the term
of the exclusive agreement to and including March 1, 2005

     To complete this  acquisition,  the Company entered into a merger agreement
with TCD,  which  provides that TCD will merge with ECC if  Envirokare's  shares
achieve an average of the closing bid asked  prices at or above five dollars per
share  at any  point  in time  during  the  thirty-month  period  following  the
agreement date, with Envirokare paying merger consideration to TCD in the amount
of 3,000,000 shares of its common stock. In the event that  Envirokare's  shares
have not traded at such specified  level of five dollars per share by the end of
the thirty-month  period,  Envirokare has the option to effect the merger of TCD
with  ECC  by   Envirokare's   paying  to  TCD's   shareholders   a  $15,000,000
consideration,  either in shares of Envirokare  or in a combination  of cash and
shares, with the cash payment to be no greater than $7,500,000. The date of such
payment  would be no later than March 30, 2004.  The Company has entered into an
Amendment  ("Amendment")  signed  September  28,  2003  to that  certain  Merger
Agreement dated March 30, 2001  ("Agreement"),  by and among,  Envirokare  Tech,
Inc.,  a Nevada  corporation  ("Parent"),  and  Envirokare  Composite  Corp.,  a
Delaware  corporation  and wholly owned  subsidiary of Parent ("Merger Sub"), on
the one hand, and Thermoplastic  Composite Designs,  Inc., a Florida corporation
("TCD"),  Dale Polk,  Sr., an individual  ("Polk Sr."),  and Dale Polk,  Jr., an
individual ("Polk Jr." and, together with Polk Sr., the "Shareholders"),  on the

                                       11
<PAGE>
other hand. This Amendment  provides for the extension of the term of the Merger
Agreement to and  including  March 1, 2005. A provision  was added which permits
TCD to  incur  debt in an  amount  greater  than  originally  provided,  for the
purposes  of capital  improvements.  An  additional  provision  was added  which
limited the debt  Envirokare  could carry forward at the time of closing  except
for debt related to capital expenditures.

The Company,  TCD and its shareholders have signed a Memorandum of Understanding
which,  when  reduced to a  definitive  agreement  will  change the terms of the
existing Merger  Agreement to provide for  consideration to be paid in cash over
8-12 years with a  continuing  payment  after the seventh  year of 1% of the net
revenues of the Company's  anticipated  Joint Venture with NOVA  Chemicals.  The
closing  date is  accelerated  providing  for the  merger to be  effectuated  by
January 1, 2005.

During the Six Month  Period Ended June 30,  2004,  the Company  entered into an
Exclusivity Agreement with NOVA Chemicals Inc., (hereinafter "NOVA") .Envirokare
Tech, Inc. (ENVK) ( hereinafter "Envirokare") dated June 1, 2004 which generally
states that until August 31, 2004,  Envirokare will not undertake,  encourage or
institute any proposed  transaction related to the use, license or sublicense of
the  TPF(tm)  Technology  (the  "technology")  with  other  companies  except as
otherwise provided in that agreement and will exclusively negotiate with NOVA to
secure an agreement for such use, license and sublicense of the technology.  The
Exclusivity Agreement in its entirety is filed as Exhibit 10.26.

In Exchange for this Agreement and the Warrant  Agreement  described  below Nova
has paid to Envirokare the sum of  $250,000.00.  The Agreement has been extended
to December 1, 2004. The Company has received an additional $30,000 from Nova.

As part of this  transaction,  Envirokare  has  issued  to NOVA a  Common  Stock
Purchase  Warrant dated June 1, 2004 which  entitles Nova to purchase  1,250,000
shares  of  Envirokare  common  stock at a price of $.20 per  share  until  June
2014.In the event that Envirokare and NOVA enter into a definitive agreement for
a  transaction,  NOVA will receive  $250,000 in Envirokare  common shares at the
then market price. In that event, the Common Stock Purchase  Warrant  referenced
above will at the option of Envirokare be cancelled.

Product Research, Development and Testing
-----------------------------------------

     General Product Technology Testing:  During the second quarter of 2002, the
Company engaged the Metis Design  Corporation,  Inc. ("Metis Design"),  formerly
Horizon  Defense and Aerospace  Solutions,  Inc., to conduct a review of the TPF
technology.  Metis  Design,  based in Cambridge,  Massachusetts,  is an advanced
technology firm  specializing in composites  consulting,  damage  monitoring and
structural concept design and analysis.

In September 2002,  Metis Design  presented the Company's  management with final
findings regarding the TPF technology.  In its report,  Metis Design noted that,
as the utilization of advanced  thermoplastic  composite  materials has extended
into market  segments such as military and aerospace,  commercial  manufacturers
are  increasingly  demanding  lower cost,  quicker and more flexible  reinforced
thermoplastic processing techniques. Metis Design found that the TPF Process has
significant  potential to address this need. In addition,  Metis Design reported
that the TPF Process could represent a solution to a  long-standing  need in the
long-fiber  reinforced composite  manufacturing  process the TPF Process enables
manufacturers to mass-produce at high rates and labor  efficiencies  compared to
many current production techniques,  while retaining accuracy and the ability to
utilize  low  molding  pressures.  The report  also  noted that the TPF  Process
provides economic advantages over other thermoplastic  composite molding methods
through reduced labor, material, tooling and machine costs.

Metis  conducted  narrow  coupon  tensile  tests on composite  material  samples
produced  from the TPF  Process.  These  tests are the  standard  procedure  for
determining  certain  mechanical  properties  of a  material.  The test  results
demonstrated that the material properties exhibited in the product, as formed by
the  TPF  Process,   are  comparable  to  those  from  products  formed  through
traditional  processes,  and  are  similar  to  those  properties  published  by
commercially available materials.

     Product  Development  - E Pallet:  Since  inception,  the  Company has been
engaged in the development of the Pallet. In December 1998,  acquired equipment,
early-stage  rubber mold  technology  and patent  rights to the  development  of
rubber mold  technology  for  creating a pallet made of recycled  materials.  In
1999,  the Company and TCD entered  into a  product/technology  contract for the
continued  development  of the pallet.  TCD  undertook  to assist the Company in
optimizing  earlier versions of the Pallet design.  The contract required TCD to
deliver a pallet that would meet design specifications  including specified size
and weight  requirements and a customized  composition matrix. The contract also
provided  that TCD  would  supply an  engineered  mold for the  Company's  first
production  facility.  The  Company's  payments for the  development  of a first
generation Pallet mold totaled $50,800 in 1999 and $83,000 in 2000.

                                       12
<PAGE>
Commencing in May 2000,  additional  Pallet testing and evaluation was conducted
by  the  Pallet  and  Container  Research  Laboratory  of  Virginia  Polytechnic
Institute and State University, located in Blacksburg, Virginia. This laboratory
is  recognized  for its work in the area of testing  and  analysis  of  products
designed for use in the materials handling  industry.  Based on the initial test
results,  the  Company  and its  product  design  contractor,  TCD,  made design
adjustments to the Pallet.  Further  Pallet testing and evaluation  through 2001
resulted in further design  adjustments.  As a result of the design  adjustments
and  modifications,  the first generation mold was deemed to be of no commercial
value.  The Company  built a second  generation  mold during 2001,  at a cost of
$43,000,  incorporating  design  modifications  based on  technical  information
derived from tests of the previous  mold.  Pallets  produced from this mold were
tested and evaluated at the Pallet and Container Research  Laboratory during the
second  quarter of 2002.  The study of the second mold  evaluated  the strength,
stiffness and durability of the Pallet as a general  purpose pallet with a 2,800
pound weight capacity set as the standard.

The study findings included the following:

a.   The Pallet could safely support a 2,800 pound,  uniformly  distributed load
     in warehouse storage racks as well as on conveyors;
b.   The  Pallet  was found to be  highly  resistant  to damage  caused by rough
     handling,  based on the drop test  protocol  carried  out,  which  involved
     dropping empty Pallets from various  heights after the Pallets were chilled
     to a temperature of -13 degrees Fahrenheit; and
c.   Because  the  Pallet's   performance  was  found  to  significantly  exceed
     requirements for a 2,800-pound uniform load standard, the study recommended
     that the Company  consider  reducing the Pallet's  glass loading (i.e.  the
     percentage of glass fiber used in the  composite),  or refining its design,
     to further reduce Pallet weight and cost.

Based on the results of testing  conducted  on the second  generation  E Pallet,
during the second quarter of 2002, the Company  engaged Metis Design to optimize
this Pallet  redesign.  The Pallet  design  modifications,  as proposed by Metis
Design, allow for a significant weight reduction of the Pallet making the Pallet
more  cost-effective  and easier to handle,  while  structural  features are not
anticipated  to be  materially  affected.  The Company is presently  negotiating
product  development  agreements with  prospective  partners to produce the next
generation  Pallet  prototypes  which  the  Company  believes  will  lead  to  a
comprehensive production agreement for Pallet manufacture.

The Company is also  reevaluating  pallets and other material  handling  devices
incorporating  wireless tracking  capabilities,  based on technology acquired in
the Company's 2000  acquisition of  Electroship  (N.Y.) Inc. The  feasibility of
further development is being assessed.

     Product Development - Beam: The Company has initiated a product development
for a structural beam having application in the housing and marine industries. A
prototype  mold was built by TCD for the  company in 2002 at a cost of  $16,000.
The  Beam is  designed  to carry  specific  weights  or  loads  and to act as an
interconnector  for structural  components for modular  structures an docks. The
beam  has  been  used  successfully  by  TCD,  Inc.  in  the  construction  of a
specialized structure for the Department of Defense.

     Product  Development - Schaefer  Systems  International,  Inc. On March 28,
2003, the Company entered into a product development and purchase agreement with
SSI replacing a earlier  agreement dated August 6, 2002. Under the terms of this
agreement and pursuant to performance and dimensional  criteria provided by SSI,
the Company  will design and  develop and produce a quantity of  prototypes  for
field testing,  field trials and related approvals.  Payments to the Company for
successful  completion of product development will aggregate  $185,500,  with an
additional  $300,000  to be payable  if SSI  elects to  develop  an  additional,
similar product with different  dimensions.  The initial term of the contract is
26 weeks.  A payment of $61,215  was made by SSI to the  Company (at the time of
the August 6, 2002  agreement) to facilitate the  development of the proprietary
product.  The balance of the development fee is payable:  47% upon completion of
first parts off of the product and verification of performance and 20% within 30
days after Development  Completion.  SSI continued its right to order additional
development  for an additional  payment of $300,000.  This  development has been
suspended pending development of Envirokare's production capability.

                                       13
<PAGE>
     Product Marketing and Market Exploitation:

     The Company's plan for the marketing and  exploitation of its  technologies
over the next twelve (12) months includes:

     a.   direct   development  and  manufacturing  of  products  for  materials
          handling (pallets),  construction (beams),  housing,  marine and other
          commercial and consumer applications.
     b.   3rd party licensing of TPF(TM)Technology for specific applications and
          products as well as for specific geographic areas.
     c.   product   development  for  3rd  parties   applications  and  licensed
          manufacturing.

The Company expects to continue to market its technology  both directly  through
officers and directors and through third party marketing agreements.

The  Company  expects  additional  results  from a  broad  range  of  continuing
marketing and sales activities. As well, the Company expects to close its merger
with TCD during the next quarter and with it acquire  additional  marketing  and
sales opportunities.

Expected Purchase of Plant and Significant Equipment and
Expected Significant Changes in Number of Employees
--------------------------------------------------------

     During the first  quarter of 2005,  the Company  expects to close it Merger
Agreement with TCD combining that company with its wholly owned  subsidiary ECC.
This will  bring  into the  Company  an  existing  TPF(TM)  production  facility
including  equipment and leased  premises.  The size of this facility is limited
and is used primarily for product  development  and small  production  runs. The
Company has continued preliminary  development work toward the end of creating a
full scale  production  facility  for  manufacture  of Company  and third  party
products,  however,  no specific site has yet been  contracted  for. The Company
continues to consider the option of assisting a prospective third party licensee
in the construction of a manufacturing facility in exchange for access to such a
facility but no decisions has been made.  There is no assurance  that funds will
be  available  for the  development  of such a  facility  or that a third  party
licensee can be located for the alternative.

     During the balance of the fiscal  year,  the Company  expects to add one to
three  people to its existing  staff.  As well,  the Company will add  personnel
required for the operation of the existing TCD facility  upon the  completion of
the merger with that company.  The schedule for any new production facility will
dictate the addition of any personnel associated with that facility.

Liquidity
---------

The Company has  budgeted  expenditures  of  $960,000  for the 12 months  ending
June 30, 2005.

During the nine month period ended  September  30,  2004,  the Company  received
$780,750 from the private placement of 3,903,750 shares of its common stock.

In addition, the Company received $250,000 and $30,000 from NOVA Chemicals, Inc.
pursuant to the terms of the Agreement referenced above.

In July 2004, the Company  commenced a private  placement  offering of 1,725,000
"units" at the price of $0.20 per unit. Each unit offered consisted of one share
of Company common stock and two three-year warrants entitling the warrant holder
to purchase  another  share of Company  common  stock at $0.40 per share.  Under
these same terms,  the  Company  converted  $100,000  in related  party debt for
500,000 shares.

Although  management  believes  these  sources  to be  sufficient,  there  is no
assurance that the Company will be successful in raising  additional  capital to
fund operations.


ITEM 3.  CONTROL AND PROCEDURES

Within the 90 days prior to the filing date of this Quarterly Report, the issuer
carried out an evaluation,  under the supervision and with the  participation of
our  Principal  Executive  Officer  and  Principal  Accounting  Officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  as defined in Rule  13a-14(a) and Rule  15d-14(c) of the  Securities
Exchange  Act of 1934.  Based  upon that  evaluation,  the  Principal  Executive
Officer and the  Principal  Accounting  Officer  concluded  that our  disclosure
controls  and  procedures  are  effective  in timely  alerting  them to material
information relating to us (including our consolidated subsidiaries) required to
be included in this Quarterly Report.  There have been no significant changes in
our internal controls or in other factors, which could significantly affect such
internal controls, subsequent to the date we carried out our evaluation.

                                       14
<PAGE>
                           PART II -OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

Reference  is made to the  Company's  Annual  Report on Form 10-KSB for the year
ended  December 31, 2003 (the "2003  Annual  Report"),  for a  discussion  of an
action  filed by Mr. Real Morel  against  the  Company in the  Supreme  Court of
British  Columbia,  Canada.  The  status  of this  matter  remains  the  same as
discussed in the 2003 Annual Report.

The Company has been made a defendant along with others  including Steve Pappas,
a Director  of the  Company,  in a  proceeding  filed in the  Superior  Court of
Cumberland County, Maine by former employees of Sports Quest of New England LLC,
for back wages and penalties  which could total more than $300,000.  The Company
has denied all liability,  ownership or other  involvement with Sport Quest LLC.
The matter is in the pleading stage.


ITEM 2. CHANGES IN SECURITIES

During the nine months ended  September 30, 2004,  the Company  granted  200,000
common stock  options,  exercisable  at $0.24 per share,  in  consideration  for
consulting services received. The Company has recorded a $38,780 expense related
to this  transaction.  Additionally,  the Company  granted  850,000 common stock
options,  exercisable at $0.23 per share, in consideration  for director's fees.
The Company has recorded a $89,420 expense related to this transaction.

During the nine months ended  September 30, 2004, the Company  issued  9,103,172
warrants valued at $132,362.

In October of 2004, the Company issued an extension offer to existing holders of
the Company's  warrants that expire after January 1, 2004. The extension  offer,
provided at a price of $0.02 per warrant,  increases the exercise  period of the
related  warrants by fifteen  months from the current  date of  expiration.  The
Company raised $96,325 from participants to the extension offer.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None


ITEM 5. OTHER INFORMATION

     None


                                       15

<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits
            Item 6. Exhibits and Reports on Form 8-K

Exhibit
Number         Description of Document
-----
3.1     Company's Articles of Incorporation, as amended October 12, 1999     (1)

3.2     Company's By-laws as amended and restated December 11, 2000          (2)

10.1    Merger Agreement by and among the Company, Electroship Acquisition   (3)
        Corp., Electroship (N.Y.) Inc., Electroship Partners, John Gremmo,
        John A. Notarianni, Leo J. Mangan, Raymond Anthony Joao and
        Richard Reichler, dated as of December 1, 2000

10.2    Assignment of Patent Application from Electroship Partners to        (3)
        Electroship (N.Y.) Inc. and Defined Field of Use License Agreement
        between Electroship Partners and Electroship (N.Y.) Inc. dated
        as of September 20, 2000

10.3    License Agreement between Envirokare Composite Corp. and             (2)
        Thermoplastic Composite Designs, Inc., dated March 30, 2001

10.4    Merger Agreement by and among the Company, Envirokare Composite      (2)
        Corp., Thermoplastic Composite Designs, Inc., Dale Polk, Sr.
        and Dale Polk, Jr., dated March 30, 2001

10.5    Letter Agreement between the Company and Charles H. Stein,           (4)
        dated May 8, 2001

10.6    Agreement and General Release between the Company and                (5)
        Charles H. Stein, dated November 27, 2001

10.7    SSI Product Development and Purchase Agreement, dated August 6, 2002 (6)

10.8    New Age Shelters Letter Agreement, dated October 1, 2002             (6)

10.9    New Age Shelters Letter Agreement, dated March 20, 2003              (7)

10.10   Promissory Note between the Company and Leo and Betty Kapakos        (8)

10.11   Warrant Agreement between the Company and Leo and Betty Kapakos      (8)

10.12   Amendment signed the 28th day of September, 2003, amending that      (9)
        certain License Agreement entered into on the 30th day of March,
        2001 between Thermoplastic Composite Designs, Inc., a Florida
        corporation, having a business address of 7400 State Road, #46,
        Mims, Florida 32754, and Envirokare Composite Corp., a Delaware
        corporation.
10.13   Amendment signed September 28, 2003 to that certain Merger           (9)
        Agreement dated March 30, 2001, by and among, Envirokare Tech, Inc.,
        a Nevada corporation, and Envirokare Composite Corp., a Delaware
        corporation and wholly owned subsidiary of Parent, on the one hand,
        and Thermoplastic Composite Designs, Inc., a Florida corporation,
        Dale Polk, Sr., an individual, and Dale Polk, Jr., an individual
        and, together with Polk Sr.,

10.14   Nick Pappas, Executive Chairman of the Board of                     (10)
        Directors Letter Agreement

10.15   Nick Pappas, Executive Chairman of the Board of                     (10)
        Directors  Warrant Agreement

10.16   E. Gary Cook, Director Letter Agreement                             (10)

10.17   E. Gary Cook, Director Warrant Agreement                            (10)

10.18   John Verbicky, Director/Chief Executive Officer                     (10)
        Compensation Agreement

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<PAGE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (CONTINUED)

10.19   John Verbicky, Director/Chief Executive Officer Warrant Agreement   (10)

10.20   George Kazantzis, Director/Chief Operating Officer                  (10)
        Compensation Agreement

10.21   George Kazantzis, Director/Chief Operating Officer                  (10)
        Warrant Agreement

10.22   Jonathan Edelstein, Director Warrant Agreement                      (10)

10.23   Leo Kapakos, Former Director Warrant Agreement                      (10)

10.24   Erwin Pruefer,  Director of Operations Compensation Agreement       (10)

10.25   Erwin Pruefer,  Director of Operations Warrant Agreement            (10)

21      Subsidiaries of the Company (incorporated herein by reference to
        Exhibit 21 to the Company's Annual Report on Form 10-KSB for the year
        ended December 31, 2000, filed with the Commission on April 16, 2001)

31.1    Section 302 Certification of Chief Executive Officer, dated May 21, 2004

31.2    Section 302 Certification of Chief Operating Officer and acting Chief
        Financial Officer, dated May 21, 2004

32.1    Section 906 Certification of President, dated May 21, 2004

32.2    Section 906 Certification of Chief Operating Officer and acting Chief
        Financial Officer, dated May 21, 2004
----------------------------
(1)      Filed as an exhibit to the Company's Annual Report on Form 10-KSB for
         the year ended December 31, 1999, filed with the Commission on April 7,
         2000, and incorporated herein by reference.
(2)      Filed as an exhibit to the Company's Annual Report on Form 10-KSB for
         the year ended December 31, 2000, filed with the Commission on April
         16, 2001, and incorporated herein by reference.
(3)      Filed as an exhibit to the Company's Current Report on Form 8-K, filed
         with the Commission on January 3, 2001, and incorporated herein by
         reference.
(4)      Filed as an exhibit to the Company's Quarterly Report on Form 10-QSB
         for the period ended March 31, 2001, filed with the Commission on June
         15, 2001, and incorporated herein by reference.
(5)      Filed as an exhibit to the Company's Annual Report on Form 10-KSB for
         the year ended December 31, 2001, filed with the Commission on March
         28, 2002, and incorporated herein by reference.
(6)      Filed as an exhibit to the Company's Annual Report on Form 10-KSB for
         the year ended December 31, 2002, filed with the Commission on April
         14, 2003, and incorporated herein by reference.
(7)      Filed as an exhibit to the Company's Quarterly Report on Form 10-QSB
         for the period ended March 31, 2003, filed with the Commission on
         May 15, 2003, and incorporated herein by reference.
(8)      Filed as an exhibit to the Company's Current Report on Form 8-K,
         filed with the Commission on September 26, 2003, and incorporated
         herein by reference.
(9)      Filed as an exhibit to the Company's Current Report on Form 8-K,
         filed with the Commission on October 3, 2003,and incorporated
         herein by reference.
(10)     Filed as an exhibit to the Company's Current Report on Form 8-K,
         filed with the Commission on October 20, 2003, and incorporated
         herein by reference.

                                       17
<PAGE>

(b)      Reports on Form 8-K

          A report on Form 8-K regarding Item 5 was filed by the Company on
          February 20, 2003.

          A report on Form 8-K regarding Item 5 was filed by the Company on
          August 27, 2003.

          A report on Form 8-K regarding Item 5 was filed by the Company on
          September 18, 2003.

          A report on Form 8-K regarding Item 5 was filed by the Company on
          September 26, 2003.

          A report on Form 8-K regarding Item 5 was filed by the Company on
          October 3, 2003.

          A report on Form 8-K regarding Item 5 was filed by the Company on
          October 20, 2003.

          A report on Form 8-K regarding Item 5 was filed by the Company on
          June 15, 2004.


                                       18
<PAGE>
                                    SIGNATURE

In accordance  with Section 13 or 15(d) of the Exchange Act, the  Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on November 16, 2004.

                                       ENVIROKARE TECH INC.


                                       By:  /s/  John W. Verbicky, Jr.
                                          ----------------------------
                                           Name:  John W. Verbicky, Jr.
                                           Title:  President, CEO




















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