UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                             -------------------
                                   FORM 10-QSB

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

                 For the quarterly period ended June 30, 2003

                                       OR

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

              For        the transition period from ________ to ________

                          Commission File No. 333-86078

                               Conscious Intention, Inc.
            (Exact name of Registrant as specified in its charter)

                              -------------------

           Nevada                                               94-3409449
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                            Identification Number)


 6620 Lake Washington Blvd. NE, Ste 301
             Seattle, WA                                        98033
 (Address of principal executive offices)                (Zip/Postal Code)


                                 (425) 822-3040
                               (Telephone Number)
                              -------------------

     Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days: YES [ ]  NO [X]

     There were 4,000,000 shares of the Company's Common Stock, par value
$0.001, outstanding on August 1, 2003.

================================================================================
<PAGE>
                                        2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S>          <C>                                                                                      <C>
PART I.       FINANCIAL INFORMATION................................................................   3

Item 1        Financial Statements.................................................................   4

              Condensed Consolidated Balance Sheets.................................................  4
              Condensed Consolidated Statements Of Operations.......................................  5
              Condensed Consolidated Statements Of Cash Flows.......................................  6
              Notes To Condensed Consolidated Financial Statements..................................  7

Item 2        Plan of Operation....................................................................   8

Item 3        Controls and Procedures..............................................................  12

PART II       OTHER INFORMATION....................................................................  13

Item 1        Legal Proceedings....................................................................  13

Item 2        Changes in Securities................................................................  13

Item 3        Defaults upon Senior Securities......................................................  13

Item 4        Submission of Matters to a Vote of Security Holders..................................  13

Item 5        Other Information....................................................................  13

Item 6        Exhibits and Reports on Form 8-K.....................................................  13

Signature..........................................................................................  14

</TABLE>
<PAGE>
                                        3


                          PART I FINANCIAL INFORMATION

Cautionary Statement Regarding Forward-Looking Statements

     This Quarterly Report on Form 10-QSB contains forward-looking statements.
These statements relate to our, and in some cases our customers' or partners',
future plans, objectives, expectations, intentions and financial performance,
and the assumptions that underlie these statements. These forward-looking
statements include, but are not limited to, statements regarding the following:

    . the anticipated market trends and uncertainties;

    . our expectations concerning the timely receipt of financing proceeds;

    . our expectations concerning our sales and marketing expenses;

    . the anticipated increases in our operating expenditures, including
      research and development, sales and marketing expenses and general and
      administrative expenses; and

    . the adequacy of our capital resources to fund our operations;


     These statements involve known and unknown risks, uncertainties and other
factors that may cause industry trends or our actual results, level of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by these
statements. These factors include those listed under "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in this Quarterly
Report on Form 10-QSB.

     Although we believe that expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. We will not update any of the forward-
looking statements after the date of this Quarterly Report on Form 10-QSB to
conform these statements to actual results or changes in our expectations,
except as required by law. You should not place undue reliance on these forward-
looking statements, which apply only as of the date of this Report on Form
10-QSB.
<PAGE>
                                        4



ITEM 1.  FINANCIAL STATEMENTS




                           CONSCIOUS INTENTION, INC.
                        (A Development Stage Enterprises)
                      CONDENSED BALANCE SHEETS (UNAUDITED)

<TABLE>


                                                                      June 30,                   December 31,
                                                                        2003                        2002
                                                                      ----------                 -----------
<S>                                                                   <C>                         <C>
                             ASSETS

Current assets:
  Cash..........................................................      $       -                   $      13
  Receivable from related party.................................              -                       1,690
                                                                      ---------                   ---------
       Total current assets.....................................              -                       1,703

Deferred offering costs.........................................              -                      23,844
                                                                      ---------                   ---------
Total assets....................................................     $        -                   $  25,547
                                                                      =========                   =========

               LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
  Accounts payable..............................................      $  35,053                   $  30,553
  Note payable to related party.................................            520                           -
                                                                       ---------                   ---------
       Total current liabilities................................         35,573                      30,553
                                                                       ---------                   ---------

Stockholder's deficit:
  Common stock, $0.001 par value, 10,000,000 shares
  authorized, 4,000,000 shares issued and
  outstanding ..................................................          4,000                       4,000
Deficit accumulated during the development stage................        (39,573)                     (9,006)
                                                                       ---------                   ---------
       Total Stockholder's deficit                                      (35,573)                     (5,006)
                                                                       ---------                   ---------
       Total liabilities and stockholders' deficit .............      $       -                   $  25,547
                                                                      =========                   =========


          The accompanying notes are an integral part of these condensed financial statements.
</TABLE>


<PAGE>
                                        5



                           CONSCIOUS INTENTION, INC.
                        (A Development Stage Enterprise)
                 CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>

                                                                                                                           For the
                                                                                                                          Cumulative
                                                                                                                         Period From
                                                                                                                    October 12, 2001
                                                                                                                 (Date of inception)
                                      For the three months ended June 30,    For the six months ended June 30,               through
                                      -----------------------------------    ---------------------------------              June 30,
                                                2003                 2002             2003                2002                  2003
                                      -----------------------------------    ---------------------------------    ------------------
<S>                                              <C>                  <C>              <C>                  <C>                  <C>

Revenue                                 $          -         $          -       $        -            $       -          $        -
General and administrative expenses          (25,343)                (590)         (30,597)              (2,781)            (39,603)
Interest income                                    -                    -               30                    -                  30
                                        ------------         ------------       ----------            ---------          -----------
Net Loss                                $    (25,343)        $       (590)      $  (30,567)           $  (2,781)         $  (39,573)
                                        ------------         ------------       ----------            ---------          -----------
Basic Loss Per Share                    $      (0.01)        $          -       $    (0.01)           $       -
                                        ------------         ------------       ----------            ---------
Weighted Average Number of Shares
Outstanding                                4,000,000            4,000,000        4,000,000            4,000,000
                                        ------------         ------------       ----------            ---------

                        The accompanying notes are an integral part of these condensed financial statements.
</TABLE>


<PAGE>
                                        6


                            CONSCIOUS INTENTION, INC.
                        (A Development Stage Enterprise)
                 CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                       .

<TABLE>

                                                                                                                   For the
                                                                                                                Cumulative
                                                                                                               Period From
                                                                                                          October 12, 2001
                                                                                                        (Date of inception)
                                                                 For the six months ended June 30,                 through
                                                                 ---------------------------------                 June 30,
                                                                        2003                 2002                     2003
                                                                 ---------------------------------      -------------------
<S>                                                                      <C>                   <C>                     <C>
Cash Flows from Operating Activities
Net Loss                                                         $   (30,567)          $   (2,781)             $   (39,573)
Adjustments to reconcile net loss to net cash
  provided by operating activities:
  Change in assets and liabilities:
    Deferred offering costs                                           23,844                    -                   23,844
    Accounts payable                                                   4,500                2,727                   11,209
                                                                 -----------           ----------               ----------
Net Cash Used In Operating Activities                                 (2,223)                 (54)                  (4,520)
                                                                 -----------           ----------               ----------
Cash Flows from Financing Activities
Increase in receivable from related party                                  -               (1,690)                  (1,690)
Proceeds from receivable from related party                            1,690                    -                    1,690
Proceeds from payable to related party                                   520                    -                    5,220
Payments on payable to related party                                       -                 (810)                  (4,700)
Proceeds from issuance of common stock                                     -                    -                    4,000
                                                                ------------           ----------               ----------
Net Cash Provided By (Used in) Financing
Activities                                                             2,210               (2,500)                   4,520
                                                                ------------           ----------               ----------
Net Increase (Decrease) In Cash                                          (13)              (2,554)                       -

Cash at Beginning of period                                               13                2,615                        -
                                                                ------------           ----------               ----------
Cash at End of period                                                      -                   61                        -
                                                                ------------           ----------

                  The accompanying notes are an integral part of these condensed financial statements.
</TABLE>

<PAGE>
                                        7



 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Statements - The accompanying unaudited financial statements
have been condensed and, therefore, do not include all disclosures normally
required by accounting principles generally accepted in the United States of
America. These statements should be read in conjunction with the Company's
annual financial statements included in the Company's Registration Statement on
Form SB-2, as amended and last filed with the Commission on May 14, 2003. In the
opinion of management, all adjustments necessary to present fairly the financial
position, results of operations and cash flows for the periods presented have
been included in the accompanying condensed financial statements and consist of
only normal recurring adjustments. The results of operations for the six months
ended June 30, 2003 are not necessarily indicative of the results that may be
expected for the full year ending December 31, 2003.

Use of Estimates - 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 in the financial statements and accompanying notes. Actual results could
differ from those estimates.

Business Condition - The Company has not yet been able to execute its business
plan. As a result, the Company has negative working capital, negative equity,
and recurring operating losses and negative cash flows from operations since
inception. This situation raises substantial doubt about its ability to continue
as a going concern. The Company plans to fund its operations by any of the
following: issue debt securities, issue equity securities, or loans from related
parties. Success in these efforts is not assured. The financial statements do
not include any adjustments relating to the recoverability and classification of
asset carrying amounts or the amount and classification of liabilities that
might result should the Company be unable to continue as a going concern.

NOTE 2 -RELATED PARTY TRANSACTIONS

During the year ended December 31, 2002 the Company advanced $1,690 to Turning
Point NW, LLC, a company commonly controlled by the officer and director. The
advance had an interest rate of 8% and was repaid in March 2003. During the six
months ended June 30, 2003, the Company received a $520 advance from an officer
of the Company. The advance is non-interest bearing and repayment terms have not
been determined.

NOTE 3 - DEFERRED OFFERING COSTS

As of December 31, 2002, the Company had deferred direct and incremental costs
associated with the planned offering of its common stock with an investor who is
no longer available. The deferred costs were charged to operations as legal
expense during the three months ended June 30, 2003 when it was determined that
the contemplated investment was no longer available. The Company continues to
seek alternatives to finance its business plan.





<PAGE>
                                        8


     The following information should be read in conjunction with the Company's
Registration Statement on Form SB-2, as amended on May 14, 2003 with the
Securities and Exchange Commission.

ITEM 2.   PLAN OF OPERATION


   The following discussion and analysis of our financial condition and results
of our operations should be read in conjunction with our financial statements
and related notes appearing elsewhere in this report. This discussion and
analysis contains forward-looking statements that involve risks, uncertainties
and assumptions. The actual results may differ materially from those anticipated
in these forward-looking statements.


Overview

   We currently have no full-time employees, one part time employee, less than
$1000 in cash, no customers, no completed product offering, no completed website
and have not received any financing proceeds from our offering of common stock
which we commenced on May 15, 2003.

   We have every expectation of securing $250,000 in gross proceeds or $225,000
in aggregate net proceeds from our offering of common stock. However, we do not
currently have any subscribers for the offering and no assurance can be given
that we will complete our offering or that we will secure any financing.

     Even though we are confident that an investor for the offering will be
forthcoming, we have elected to recognize deferred offering costs of $23,844 in
this quarter as we have not secured an investment to date. We have accelerated
our planned expansion of our business concept from services primarily for
executive coaches to services which also include the small business owners and
professionals who are clients of such coaches. We believe that this accelerated
expansion will assist us in our short and long term growth.

     Conscious Intention is a development stage company which desire to provide
services to executive coaches, small business owners and professionals. Our
initial plan had been to design services for executive coaches and then grow
gradually to provide such services to other small business owners and
professionals. In June, 2003, we began to expand our planned product offering
accordingly.

     Executive coaching consists of rendering professional development advice,
guidance, leadership, organizational development, communication and human
resources advice to individual professionals, groups and organizations.

     Conscious Intention plans to offer support services to small businesses,
executive coaches, and professionals which consist of:

o a series of texts and on-line materials providing aspiring small business
owners, professionals and executive coaches with resources to assist in business
productivity, marketing and revenue improvement;
o an on-line business, professional and coaching club which provides community,
interaction and client referrals;
o a software product which helps business owners to manage their business and
clients;
o other technology and internet based products which can improve small business
productivity

    We intend to develop these texts, materials, communities, referral systems
and software products ourselves, through the efforts of our Chief Executive
Officer, Sylva Leduc, through materials that she has already prepared and via
the use of consultants. These services will be offered to coaches directly
through the Internet. We intend to charge a monthly or yearly subscription fee
payable by business owners for unlimited use of the basic site resources. We
intend to derive additional revenue by eventually adding premium services to our
basic product offering. We plan to advertise our products at industry trade
shows, in trade publications and on-line at various existing websites for small
business owners, professionals and executive coaches.


<PAGE>

                                        9



     With respect to product and website development, we have identified $50,000
of proceeds of our  offering  which will be used for this  purpose.  We estimate
that:

- $20,000 will be used for texts and on-line materials,
- $25,000 will be used for development of the on-line small business content,
- $5,000 for integration of the Client Compass product

     Texts and on-line  materials are approximately 75% developed to date by our
chief executive officer, Sylva Leduc. We believe that it will cost an additional
$20,000 to complete  our offering of texts and on-line  materials.  We intend to
accomplish  this by means of use of outside  consultants  and by the  efforts of
Sylva Leduc. We believe that these materials will be completed within 90 days of
receipt of $20,000 for  development.  We have no present  source for these funds
other than the proceeds of the  offering.  It is our hope that the  materials be
completed no later than October 1, 2003.

     We have not yet  begun  work on our  on-line  small  business  content.  We
estimate that it will cost  $250,000 to complete and will include  within it all
of the  functional  elements  of our  website,  including  the ability to secure
membership  transactions  on-line,  accept  credit  card  payments  and  provide
software products,  services and materials for download over the Internet.  Most
of the elements that compose the website an on-line small  business  content are
available  from  multiple  third  party  providers.  This item could be complete
within 30 days of funds being  available  for this  purpose.  We have no present
source for these funds other than the proceeds of the  offering.  It is our hope
that the website and community be completed no later than October 1, 2003.

     We believe that we will be able to offer for sale or use on-line a software
product  which helps  small  businesses  to manage  their  customers.  Our chief
executive  officer,  Sylva Leduc has already  developed  such a product which is
currently  being  sold by  Turning  Point NW LLC  under the  trade  name  Client
Compass.  We do not believe  that we will have to pay Ms. Leduc any upfront fees
for the use of this  product.  We  expect  that we will  spend  about  $5,000 on
outside  consultants  to integrate  the software into our website  presence.  It
should  take no more  than 30 days from the time our  website  is  completed  to
integrate the Client Compass software.  We have not yet reached an understanding
with Ms. Leduc  regarding the terms and  conditions of licensing  Client Compass
for use on our site. We believe that an arrangement with Ms. Leduc, or a similar
provider of third party client  management  software  will be  achievable  under
which such a product would be sold by us on a revenue  share basis,  without the
need for  significant up front  expenditures,  except for the $5000 in technical
integration. . We have no present source for these funds other than the proceeds
of the  offering.  It is our hope that  software  product or a similar  software
product be available for sale on our website no later than October 1, 2003.

     With respect to sales and  marketing,  we have  identified  $100,000 of our
offering  which  will be used for this  purpose.  We  estimate  that the  annual
marketing  budget will be $85,000.  Therefore,  we would have  approximately  14
months  of this  budget  available  if we  received  the  full  proceeds  of the
offering.

     Sales and marketing  will be critical to the success of our  business.  Our
business model relies heavily on our ability to cause executive coaches to visit
our  website  and  become  subscribing  members  at a very  low  per  subscriber
acquisition  cost.  We intend to accomplish  this goal through a combination  of
methods.  We intend to hire a full-time sales and marketing  director as soon as
funding  permits.  We believe  that we can obtain a  suitable  candidate  for an
annual salary of $50,000,  without having to offer  insurance or other benefits.
We  would  need  to  support  this  individual   with  a  marketing   budget  of
approximately $35,000. This budget would be used for travel to and attendance at
industry trade shows and for  advertisements in trade publications and websites.
We believe that this  combination  of efforts  together  with the efforts of our
chief executive officer,  Sylva Leduc, in approaching  colleagues and leaders in
the  field of  executive  coaching  will be  sufficient  to  attract  as  paying
subscribers,  whom we intend to charge an  average of $40 per month each for use
of our  website  and  materials.  We intend to  commence  hiring  the  marketing
director  and  beginning  sales and  marketing  activities  as soon as funds are
available.  We have no present source for these funds other than the proceeds of
the offering.

     We believe it will take 3 months from the date of our  obtaining  financing
for us to identify and hire such an individual.  We believe it will take another
6 to 8 months for the sales and marketing  efforts to yield paying  subscribers.
We hope to have hired  this  individual  by  October 1, 2003 and to have  paying
subscribers  by January  2004.  As we do not yet have a product,  sales force or
subscribers,  it is difficult  for us to project how many  subscribers  we might
realize from these efforts.

     In the  event  that  only a  nominal  amount  of stock is sold  during  the
offering and there are insufficient proceeds to accomplish our plan of operation
as noted above, then we will seek alternative sources of funding,  products, and
customers,  including:  " Loans  from  our  chief  executive  officer  or  other
stockholders; " Credit from consultants, suppliers, vendors and advertisers; " A
business  combination with an organization  that has financing and customers and
would like to enter the field of executive coaching.

     We believe  that we could  successfully  deploy a product  offering  on our
website and begin to attract  customers  with $37,500 in additional  cash. If we
were able to spend an  additional  $10,000 on sales and marketing and $25,000 on
the website and product, we believe that this less robust version of our product
and limited marketing plan could allow us to commence  operations.  If we cannot
raise at least $37,500, we believe that we could still produce a limited version
of our product and attract some customers, but our plan in this case would be to
rely on  uncompensated  labor from our chief  executive  officer  and a low cost
commercial web-hosting provider to maintain the limited product on the Internet.
We would rely in this case on direct  marketing by our chief  executive  officer
for new customers.

     There can be no assurance that any of the above alternative strategies will
achieve our intended goals. If we are  unsuccessful in securing any resources by
any of the above outlined means,  then our organization will cease to be able to
carry  out any  alternative  plan of  operation  and we will  cease  operations,
resulting in a total loss of investment for all shareholders.

<PAGE>
                                       10


Results of Operations

     Revenues were $0 during the six months ended June 30, 2003 and $0 during
the six months ended June 30, 2002. Revenues were $0 during the three months
ended June 30, 2003 and $0 during the three months ended June 30, 2002. As our
product offering is not complete and we have not yet received any proceeds from
our financing, we have not yet begun to have customers or revenue. We were able
to commence our financing offering in May 2003 and anticipate that we will have
our first revenues from operations during the three month period beginning
October 1, 2003, but that we will not have any revenues from operations during
the three month period beginning July 1, 2003.

     Currently Conscious Intention has no complete product offering, no revenue,
no customers and we do not believe we will have such a product offering
completed until October 2003. Conscious Intention anticipates that its future
revenue will come from the direct sales efforts of chief executive officer Sylva
Leduc until sufficient financing proceeds are received to hire a salesperson to
assist in securing customers for Conscious Intention's planned offering of
customer services to executive coaches, professionals and small businesses.

     Cost of revenue. Cost of revenues were $0 during the six months ended June
30, 2003 and $0 during the six months ended June 30, 2002. Cost of revenues were
$0 for the periods ended June 30, 2003 and 2002 as we do not yet have a
completed product for sale.



Operating Expenses

     Sales and marketing. Sales and marketing expenses were $0 during the six
months ended June 30, 2003 and $0 during the six months ended June 30, 2002.
Sales and marketing expenses were $0 during the three months ended June 30, 2003
and $0 during the three months ended June 30, 2002. We expect sales and
marketing expenses to increase sharply to $50,000 by December 31, 2003, assuming
that we receive sufficient proceeds from our offering to complete our product
offering and to commence sales.

     General and administrative. General and administrative expenses were
$30,597 during the six months ended June 30, 2003 and $2,781 during the six
months ended June 30, 2002. General and administrative expenses were $25,343
during the three months ended June 30, 2003 and $590 during the three months
ended June 30, 2002. General and administrative expenses increased during the
six months ended June 30, 2003 as well as the three months ended June 30, 2003
as compared to the comparable fiscal 2002 periods due mainly to the recognition
of expenses related to our planned offering. General and administrative expenses
during the three months ended June 30, 2003 comprised mainly of recognition of
$23,844 in deferred offering costs. We expect our general and administrative
costs in the next fiscal quarter to be less than in the current quarter due to
the extraordinary nature of the deferred offering expenses.


Financial Condition

     For the period ended June 30, 2003, Conscious Intention had a net loss of
$25,343 while for the period ended June 30, 2002, the Company had a net loss of
$590. Also, for the period ended June 30, 2003, the Company had a working
capital deficit of $35,573 while for the period ended June 30, 2002, the Company
had a working capital deficit of $28,850.

     Conscious Intention's current financial condition makes it difficult to
commence product offering or derive revenue until proceeds from our offering are
received. Although our chief executive officer is willing to continue product
development and marketing without a salary until proceeds are received, we will
not have the resources to begin our product offering until we receive such
proceeds.


Liquidity and capital resources

     Net cash used in operating activities for the six months ended June 30,
2003 and 2002 was $2,223 and $54 respectively. As of June 30, 2003, we had $0
cash . Net cash used in operating activities for the six months ended June 30,
2003 was primarily the result of a net loss offset by an increase in accounts
payable and a recognition of deferred offering costs. Net cash used in operating
activities for the six months ended June 30, 2002 was primarily the result of a
net loss offset by an increase in accounts payable.

     Net cash provided by financing activities was $2,210 for the six months
ended June 30, 2003. Net cash used in financing activities was $2,500 for the
six months ended June 30, 2002. Net cash provided by financing activities for
the six months ended June 30, 2003 was the result of proceeds from receivable
from a related party and proceeds from payable to a related party. Financing
activities for the six months ended June 30, 2002 were attributable to an
increase in a receivable to a related party and payments on payable to a related
party.

     As of June 30, 2003 our principal commitments consisted of our obligations
outstanding under accounts payable. We have no material commitments for capital
expenditures. In the next fiscal quarter, we expect no significant capital
expenditures or lease commitments.

     We believe that our current cash balances, including cash and cash
equivalents, are insufficient to meet our working capital and capital
expenditure requirements. We have exhausted all of our working capital. We will
need to receive an infusion of capital from our chief executive officer or
receive proceeds from our financing in order to continue operations.


<PAGE>
                                       11


     We need to secure additional cash as soon as possible. We will seek to
obtain financing through our contemplated offering. If we are not successful, we
may seek to sell additional equity or debt securities or to obtain a credit
facility; however, at the present time, we have not entered into any
arrangements or understandings with respect to any such financings. The sale of
additional equity or convertible debt securities could result in additional
dilution to our stockholders. The incurrence of indebtedness would result in an
increase in our fixed obligations and could result in operating covenants that
would restrict its operations. There can be no assurance that financing will be
available in amounts or on terms acceptable to us, if at all. If financing is
not available when required or is not available on acceptable terms, we may be
unable to develop or enhance our products or services. In addition, we may be
unable to take advantage of business opportunities or respond to competitive
pressures. Any of these events could have a material and adverse effect on our
business, results of operations and financial condition.

     Conscious Intention's short-term prospects are very good, provided that
cash from the offering, from the chief executive officer, or another source, is
received sufficient to complete our contemplated product offering. Management
has substantial doubt about its ability to maintain even the presently minimal
level of operations should the liquidity situation not improve. Without raising
any additional cash or being approached by a strategic partner willing to
finance further product development, Conscious Intention's short-term and
long-term prospects for growth are minimal.

Cash requirements

     Presently, without additional cash, we will not be able to continue
operations. We have exhausted all of our working capital. Our continued
operation is therefore dependent upon our ability to secure additional cash. We
need to raise additional funds as soon as practicable, through the sale of
equity or debt securities in the company. We presently have no arrangements or
understandings with any investors or potential investors with respect to an
investment in Conscious Intention. Other than the contemplated offering
contained in our SB-2 filing, we have not decided at what price or under what
terms we will raise such additional funds. The factors that we will utilize in
making such a decision include, our success in raising proceeds under our
contemplated offering, our success in developing strategic partners for
Conscious Intention, the market valuation of our competitors, the availability
of investments generally for development stage start-up companies and the
feedback that we receive from potential investors. We intend to target potential
customers and potential strategic partners as possible investors in Conscious
Intention, though we have not received any indications of interest so far.
Conscious Intention has identified acquaintances of our officers and directors
who are interested in providing debt or equity financing for Conscious
Intention. Conscious Intention has not reached any terms with such prospective
investors in which such financing would be forthcoming.

<PAGE>
                                       12



Research and development

     We have a present intention to spend substantial resources on research or
development over the next 12 months. We believe it is critical for us to
complete at least the first phase of our planned product offering, which we
believe we could do with an additional $50,000 in cash. Although this product
offering would not be as robust as what we could offer were we to receive the
full proceeds of the offering, we believe it would be sufficient to begin
revenue development.


Plant and equipment

    We currently have an office in Kirkland, WA. We believe our currently
available space should be sufficient for our needs for the next twelve months.

Employees

     We have no current plans to hire any additional employees, other than a
sales and marketing person whom we would hire on a consultant/independent
contractor basis. We believe our revenue and growth will be derived primarily
through strategic partners, the efforts of our chief executive officer and a
salesperson, should we be able to afford, identify and retain such an
individual. If such growth materializes, we would need to increase our customer
service capability in proportion to the amount of product sales supplied by our
strategic partners or solicited by the company directly in direct sales.


ITEM 3.   Controls and Procedures


(a) The Company maintains controls and procedures designed to ensure that
information required to be disclosed in the reports that the Company files or
submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the Securities and Exchange Commission. Based upon their evaluation of those
controls and procedures performed within 90 days of the filing date of this
report, the chief executive officer and the principal financial officer of the
Company concluded that the Company's disclosure controls and procedures were
adequate.

(b) Changes in internal controls. The Company made no significant changes in its
internal controls or in other factors that could significantly affect these
controls subsequent to the date of the evaluation of those controls by the chief
executive officer and principal financial officer.


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                                       13


                            PART II OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

     None.


ITEM 2.   CHANGES IN SECURITIES

     None.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

     None.

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

     None.

ITEM 5.   OTHER INFORMATION

     None.


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     (a)  List of Exhibits

      99.1 - CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
             PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

      99.2 - CERTIFICATION PURSUANT TO SECTION 302

     (b)  Reports on Form 8-K.

     The Company filed no reports on Form 8-K during the period.



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                                       14


                                    SIGNATURE

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

                                         Conscious Intention, Inc.

                                         /s/ Sylva Leduc
                                         -----------------------------
                                         Sylva Leduc
                                         Chief Executive Officer
                                         (Duly Authorized Officer and Principal
                                         Financial and Accounting Officer)

Dated:  August 14, 2003