UNITED STATES
         SECURITIES AND EXCHANGE COMMISSION
               Washington, D.C. 20549

                    FORM 10-KSB
[X]  Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

       FOR THE YEAR ENDED DECEMBER 31, 2005

        Commission File Number 0-49725

        CRAFTY ADMIRAL ENTERPRISES, LTD.
  ---------------------------------------------
(Exact name of registrant as specified in its charter)

        Nevada                        88-0455809
--------------------------------------------------------
 (State or other jurisdiction of    (I.R.S. Employer
 incorporation or organization)   Identification No.)

    Suite 601 - 1383 Marinaside Crescent
         Vancouver, BC, Canada                   V6Z 2W9
------------------------------------------------------------
     (Address of principal executive offices)  (Zip Code)

Registrant's telephone number, including area code:(604) 612-4847

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

Securities registered pursuant to Section 12(g) of the Act:
Common Stock, par value $.001 per share

Indicate by check mark:

If the Registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act. Yes __ No X

If the  Registrant  is not  required to file reports pursuant to
Section 13 or Section 15(d) of the Act. Yes __ No X

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, and (2) has been subject to such filing
requirements for the past 90 days.  YES: [X] NO: [ ]

If the disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or
any amendment to this Form 10-KSB. [X]

Whether the registrant is a large  accelerated  filer, an accelerated
filer or a non-accelerated  filer (as defined in Rule 12b-2 of the Act).
Large  accelerated filer. Accelerated filer [ ] Non-accelerated filer [X].

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).  Yes [X]  No [ ]

The number of shares outstanding of Registrant's common stock as
of December 31, 2005 was 42,000,000. Registrant had no revenues
for the year ended December 31, 2005.

Registrant's common stock is listed on the OTCBB under the symbol
CFTY; however no active trading market has yet commenced.

DOCUMENTS INCORPORATED BY REFERENCE: NONE

                               1

<PAGE>
                        TABLE OF CONTENTS

<TABLE>
<S>           <C>                                                              <C>
PART I

  ITEM 1.     DESCRIPTION OF BUSINESS                                            3

  ITEM 1A.    RISK FACTORS                                                       5

  ITEM 2.     PROPERTIES                                                         8

  ITEM 3.     LEGAL PROCEEDINGS                                                  8

  ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                8

PART II

  ITEM 5.     MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED
              STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY
              SECURITIES                                                         8

  ITEM 6.     SELECTED FINANCIAL DATA                                            8

  ITEM 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
              AND RESULTS OF OPERATIONS                                          9

  ITEM 8.     FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                       13

  ITEM 9.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
              AND FINANCIAL DISCLOSURE                                          28

  ITEM 9A.    CONTROLS AND PROCEDURES                                           28

 PART III

  ITEM 10.    DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT                29

  ITEM 11.    EXECUTIVE COMPENSATION                                            30

  ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
              MANAGEMENT AND RELATED STOCKHOLDER MATTERS                        31

  ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                    31

  ITEM 14.    PRINCIPAL ACCOUNTING FEES AND SERVICES                            32

PART IV

  ITEM 15.    EXHIBITS, LISTS AND REPORTS ON FOR 8-K                            32
</TABLE>

                                       2
<PAGE>


                               PART I
                               ======

ITEM 1.  DESCRIPTION OF BUSINESS
--------------------------------
General
-------
Crafty Admiral Enterprises, Inc. was incorporated in the State of Nevada on
March 6, 2000. The corporation was originally organized to engage in the
business of the sale of classic autoparts to classic auto owners all over
the world through its Internet site/online store; however, we were
unsuccessful in implementing the online store and were unable to afford the
cost of purchasing, warehousing and shipping the initial inventory required to
get the business started.  As a result, we ceased operations in July 2002.
We are presently inactive and have not conducted any business since that time.
Our sole officer and director determined that it would be in the best interest
of the shareholders of the corporation that we should actively seek potential
operating businesses and business opportunities with the intent to acquire or
merge with such businesses. We are considered a development stage company and
due to our status as a "shell" corporation, our principal business purpose is
to locate and consummate a merger or acquisition with a private entity.

Management believes that being a reporting company under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), could provide a
prospective merger or acquisition candidate with additional information
concerning the corporation. In addition, management believes that this may
make our company more attractive to an operating business opportunity as a
potential business combination candidate. We intend to continue to voluntarily
file these periodic reports with the U.S. Securities and Exchange Commission.
Any target acquisition or merger candidate will immediately become subject to
the same reporting requirements upon consummation of any such business
combination.

Thus, in the event we are able to successfully complete an acquisition or
merger with another operating business, the resulting combined business must
provide audited financial statements for at least the two most recent fiscal
years, or in the event that the combined operating business has been in
business less than two years, audited financial statements will be required
from the period of inception of the target acquisition or merger candidate.

Source of Business Opportunities
--------------------------------
We use various resources in our search for potential business opportunities,
including referrals by our officers and directors, consultants, advisors,
securities broker-dealers, venture capitalists, members of the financial
community, business acquaintances and any others who may present management
with unsolicited proposals. We may investigate and ultimately acquire a
venture that is in its preliminary or development stage, is already in
operation, or is in various stages of its corporate existence or development.
Management cannot predict at this time the status or nature of any venture in
which it may participate. The most likely scenario for a possible business
arrangement would involve the acquisition of or merger with an operating
business which does not need additional capital, but which merely desires to
establish a public trading market for its securities. Management believes that
we could provide a potential public vehicle for a private entity interested in
becoming a publicly-held corporation without the time and expense typically
associated with an initial public offering.

                                   3
<PAGE>

Evaluation Criteria
-------------------
Once we have identified a particular entity as a potential acquisition or
merger candidate, management will seek to determine whether acquisition or
merger is warranted or whether further investigation is necessary. Such
determination will generally be based on management's knowledge and experience,
or with the assistance of outside advisors and consultants evaluating the
preliminary information available to them.

Management may elect to engage outside independent consultants to perform
preliminary analyses of potential business opportunities. However, because of
our lack of and access to substantial capital, we may not have the funds
necessary for a complete and exhaustive investigation of any particular
opportunity we may find. Further, no member of management is a professional
business analyst and management will rely on its own business judgment in
formulating the types of businesses that we may acquire. It is quite possible
that management will not have any business experience or expertise in
the type of business engaged in by any potential acquisition or merger
candidate.

In evaluating such potential business opportunities, we will consider, to the
extent relevant to the specific opportunity, several factors including
potential benefits to the company and its shareholders; working capital,
financial requirements and availability of additional financing; history of
operation, if any; nature of present and expected competition; quality and
experience of management; need for further research, development or
exploration; potential for growth and expansion; potential for profits; and
other factors deemed relevant to the specific opportunity. Because we have
not located or identified any specific business opportunity to date, there
are certain unidentified risks that cannot be adequately expressed prior to
the identification of a specific business opportunity. There can be no
assurance following consummation of any acquisition or merger that the
business venture will develop into a going concern or, if the business is
already operating, that it will continue to operate successfully. Many of
the potential business opportunities available to us may involve new and
untested products, processes or market strategies, which may not ultimately
prove successful.

Presently, we cannot predict the manner in which we might participate in a
prospective business opportunity. Each separate potential opportunity will
be reviewed and, upon the basis of that review, a c legal structure
or method of participation will be chosen. The particular manner in which
we participates in a specific business opportunity will depend upon the
nature of that opportunity, the respective needs and desires of our company
and management of the opportunity, and the relative negotiating strength
of the parties involved. Actual participation in a business venture may
take the form of an asset purchase, lease, joint venture, license,
partnership, stock purchase, reorganization, merger or consolidation. We
may act directly or indirectly through an interest in a partnership,
corporation, or other form of organization; however, we do not intend to
participate in opportunities through the purchase of minority stock
positions.


                                   4
<PAGE>

Competition
-----------
Because we have not yet identified any potential acquisition or merger
candidate, we are unable to evaluate the type and extent of our likely
competition. We are aware that there are several other public companies
with only nominal assets that are also searching for operating businesses
and other business opportunities as potential acquisition or merger
candidates. We will be in direct competition with these other public
companies in our search for business opportunities and, due to our lack
of substantial funds, may find it difficult to successfully compete with
these other companies.

Employees
---------
As of the date of this filing, we do not have any employees and has no plans
for retaining employees until such time as our business warrants the expense,
or until we successfully acquire or merge with an operating business.

Principal Business Offices
--------------------------
Our principal business office is located at Suite 601-1383 Marinaside Crescent,
Vancouver, BC, Canada, the home of our President and CEO, Lawrence Siccia,
which we occupy on a rent-free basis.

ITEM 1A. RISK FACTORS
---------------------
Investing in our securities involves risks. You should carefully consider the
following risk factors and the other information in this report, including
our consolidated financial statements and related notes, before you decide to
purchase our common stock. If any of the following risks occur, our business,
financial condition and operating results could be adversely affected. As a
result, the trading price of our common stock could decline and you could lose
part or all of your investment. We may amend or supplement the risk factors
described below from time to time by other reports we file with the SEC in the
future.

AS WE HAVE NO OPERATING HISTORY OR REVENUE AND ONLY MINIMAL ASSETS, THERE IS A
RISK THAT WE WILL BE UNABLE TO CONTINUE AS A GOING CONCERN AND CONSUMMATE A
BUSINESS COMBINATION.
------------------------------------------------------------------------------
We have had no operating history nor any revenues or earnings from
operations since inception. We have no significant assets or financial
resources. We will, in all likelihood, sustain operating expenses without
corresponding revenues, at least until the consummation of a business
combination. This may result in our incurring a net operating loss that will
increase continuously until we can consummate a business combination with a
profitable business opportunity. We cannot assure you that we can identify a
suitable business opportunity and consummate a business combination.

THE REPORT OF OUR INDEPENDENT AUDITORS INDICATES UNCERTAINTY CONCERNING OUR
ABILITY TO CONTINUE AS A GOING CONCERN AND THIS MAY IMPAIR OUR ABILITY TO
CONSUMMATE A BUSINESS COMBINATION.
---------------------------------------------------------------------------
Our independent auditors have raised substantial doubt about our
ability to continue as a going concern. We cannot assure you that this will
impair our ability to consummate a business combination. Additionally, we
cannot assure you that we will ever achieve significant revenues and therefore
remain a going concern.


                                   5
<PAGE>

THE NATURE OF OUR OPERATIONS IS HIGHLY SPECULATIVE AND THERE IS A CONSEQUENT
RISK OF LOSS OF YOUR INVESTMENT.
----------------------------------------------------------------------------
The success of our plan of operation will depend to a great extent on
the operations, financial condition and management of the identified business
opportunity. While management intends to seek business combination(s) with
entities having established operating histories, we cannot assure you that we
will be successful in locating candidates meeting that criteria. In the event
we complete a business combination, the success of our operations may be
dependent upon management of the successor firm or venture partner firm and
numerous other factors beyond our control.

WE ARE IN A HIGHLY COMPETITIVE MARKET FOR A SMALL NUMBER OF BUSINESS
OPPORTUNITIES WHICH COULD REDUCE THE LIKELIHOOD OF CONSUMMATING A SUCCESSFUL
BUSINESS COMBINATION.
----------------------------------------------------------------------------
We are and will continue to be an insignificant participant in the
business of seeking mergers with, joint ventures with and acquisitions of small
private and public entities. A large number of established and well-financed
entities, including small public companies and venture capital firms, are active
in mergers and acquisitions of companies that may be desirable target candidates
for us. Nearly all these entities have significantly greater financial
resources, technical expertise and managerial capabilities than we do;
consequently, we will be at a competitive disadvantage in identifying possible
business opportunities and successfully completing a business combination. These
competitive factors may reduce the likelihood of our identifying and
consummating a successful business combination.

WE HAVE NO EXISTING AGREEMENT FOR A BUSINESS COMBINATION OR OTHER TRANSACTION
AND THEREFORE CANNOT GUARANTEE THAT WE WILL BE ABLE TO NEGOTIATE A BUSINESS
COMBINATION ON FAVORABLE TERMS.
-----------------------------------------------------------------------------
We have no arrangement, agreement or understanding with respect to
engaging in a merger with, joint venture with or acquisition of, a private or
public entity. No assurances can be given that we will successfully identify and
evaluate suitable business opportunities or that we will conclude a business
combination. Management has not identified any particular industry or specific
business within an industry for evaluation. We cannot guarantee that we will be
able to negotiate a business combination on favorable terms, and there is
consequently a risk that funds allocated to the purchase of our shares will not
be invested in a company with active business operations.

IF WE CONSUMMATE A BUSINESS COMBINATION WITH A FOREIGN CORPORATION, WE MAY BE
SUBJECT TO SIGNIFICANT RISKS, INCLUDING WORLDWIDE POLITICAL, ECONOMIC, LEGAL AND
OTHER UNCERTAINTIES.
--------------------------------------------------------------------------------
We may consummate a business consummation with a foreign corporation.
If so, our international operations may be subject to significant political and
economic risks and legal uncertainties, including:

      o     changes in economic and political conditions and in governmental
            policies,

      o     changes in international and domestic customs regulations,

      o     wars, civil unrest, acts of terrorism and other conflicts,

      o     natural disasters,

      o     changes in tariffs, trade restrictions, trade agreements and
            taxation,

      o     difficulties in managing or overseeing foreign operations,

      o     limitations on the repatriation of funds because of foreign exchange
            controls,

      o     different liability standards, and

      o     uncertainties related to foreign currency fluctuations.

The occurrence or consequences of any of these factors may harm our
profitability in the future.

                                  6
<PAGE>

In addition, outside the United States it may be difficult for investors and
stockholders to enforce judgments against a foreign corporation obtained in the
United States in any such actions, including actions predicated upon civil
liability provisions of the United States securities laws. If we consummate a
business combination with a foreign corporation, it is likely that some, if not
all, of the officers and directors of that corporation will become officers and
directors of our company. Such officers and directors may reside outside the
United States and the assets of these persons may be located outside of the
United States. As a result, it may not be possible for investors to
effect service of process within the United States upon such persons, or to
enforce against such persons judgments obtained in the United States courts
predicated upon the liability provisions of the United States securities laws.

MANAGEMENT INTENDS TO DEVOTE ONLY A LIMITED AMOUNT OF TIME TO SEEKING A TARGET
COMPANY WHICH MAY ADVERSELY IMPACT OUR ABILITY TO IDENTIFY A SUITABLE
ACQUISITION CANDIDATE.
------------------------------------------------------------------------------
While seeking a business combination, management anticipates devoting only a
few hours per week to our affairs in total. None of our officers have entered
into written employment agreements with us and none is expected to do so in
the foreseeable future. This limited commitment may adversely impact our
ability to identify and consummate a successful business combination.

NONE OF OUR OFFICERS OR DIRECTORS HAS ANY EXPERIENCE WITH "SHELL" COMPANIES
THAT YOU CAN USE TO EVALUATE OUR FUTURE POTENTIAL.
-----------------------------------------------------------------------
None of our officers or directors have any experience with "blank check/
shell" companies and are not currently involved with other "blank check/
shell company" offerings. We cannot assure you that our management's lack of
experience will not adversely affect our ability to identify a suitable
acquisition candidate and successfully negotiate a business combination. If we
are unable to successfully attract an acquisition target, our common stock will
have no value.

THERE MAY BE AN ABSENCE OF A TRADING MARKET, WHICH WOULD ELIMINATE OR ADVERSELY
IMPACT YOUR ABILITY TO SELL OUR STOCK.
-------------------------------------------------------------------------------
There currently is no trading market for our stock and a trading market
will not develop for our common stock unless and until we successfully acquire
a target company, commence business operations and are able to develop a market
for our securities.

WE CANNOT GUARANTEE THAT A BUSINESS COMBINATION WILL MEET THE STATUTORY
REQUIREMENTS OF A TAX-FREE REORGANIZATION OR THAT THE PARTIES WILL OBTAIN THE
INTENDED TAX-FREE TREATMENT UPON A TRANSFER OF STOCK OR ASSETS AND YOU MAY
THEREFORE BE SUBJECT TO TAXATION.
------------------------------------------------------------------------------
If a business combination does not meet the statutory requirements of a
tax-free reorganization, the business combination could result in the
imposition of both federal and state taxes that may have an adverse effect on
both parties to the transaction, including holders of our common stock.

THERE WILL BE ADDITIONAL DILUTION AS ADDITIONAL SHARES ARE ISSUED IN CONNECTION
WITH A BUSINESS ACQUISITION OR COMBINATION, WHICH MAY DECREASE THE MARKET PRICE
OF OUR COMMON STOCK.
------------------------------------------------------------------------------
Once a business combination is consummated, additional securities offerings will
likely have to be made in the future to meet additional cash flow needs. Such
offerings may include warrants for issuance of additional common stock, further
diluting the common stock outstanding. An increase in the number of our shares
of common stock in the marketplace may result in a decrease of the market price
for our common stock.
                                      7
<PAGE>

ITEM 2.  DESCRIPTION OF PROPERTY
--------------------------------
We do not own any property and currently conduct business operations from the
home of our President and Chairman of the Board on a rent-free basis.

ITEM 3.  LEGAL PROCEEDINGS
--------------------------
We are not a party to any legal proceedings and are unaware of any pending or
threatened legal proceedings.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
------------------------------------------------------------
No matter was submitted for a vote of the security holders during the fiscal
quarter ended December 31, 2005.


                               PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER
         MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
-------------------------------------------------------------------------------
Our Common Stock is listed on the OTCBB under the symbol CFTY, however, there
is currently no active trading market for our securities.

We have adopted the policy to reinvest earnings to fund future growth.
Accordingly, we have not paid dividends and do not anticipate declaring
dividends on our common stock in the foreseeable future.


ITEM 6.  SELECTED FINANCIAL DATA
--------------------------------
Since we have been inactive since 2002 and has not generated any revenues
since inception, no selected historical financial and operating data for each
of the five years through fiscal year 2005 are included herein. The only
expenses incurred since inception have been in connection with the preparation
and filing of documents used for our initial public offering and in subsequent
registration statement and periodic report filings with the U.S. Securities
and Exchange Commission. Our Consolidated Financial Statements and notes
thereto for the fiscal year ended December 31, 2005 are included in their
entirety in this Annual Report.


                                   8
<PAGE>

ITEM 8. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS
------------------------------------------------------------------------
This Management's Discussion and Analysis of Financial Condition and
Results of Operations, as well as other sections of this report, contain
forward-looking statements, including, without limitation, statements relating
to our plans, strategies, objectives, and expectations, that are based on
management's current opinions, beliefs, or expectations as to future results or
future events and are made pursuant to the "safe harbor" provisions of Section
27A of the Securities Act and Section 21E of the Securities Exchange Act. Any
such forward-looking statements involve known and unknown risks and
uncertainties and our actual results may differ materially from those
forward-looking statements. While made in good faith and with a reasonable
basis in information currently available to management, we cannot assure you
that such opinions or expectations will be achieved or accomplished. We do not
undertake to update, revise or correct any of the forward-looking information
contained in this report.

The following factors, in addition to those discussed elsewhere in this
report, are representative of those factors that could affect our future results
and could cause results to differ materially from those expressed in such
forward-looking statements:

            -     the timely development and market acceptance of new products;

            -     the financial resources of competitors and the impact of
                  competitive products and pricing;

            -     changes in general and industry specific economic conditions
                  on a national, regional, or international basis;

            -     changes in laws and regulations, including changes in
                  accounting standards;

            -     the timing and success of the implementation of changes in our
                  operations to effect cost savings;

            -     opportunities that may be presented to and pursued by us;

            -     our financial resources, including our ability to access
                  external sources of capital; and

            -     such risks and uncertainties as are detailed from time to time
                  in our reports and filings with the Securities and Exchange
                  Commission.

The following discussion should be read in conjunction with our Consolidated
Financial Statements and Notes thereto contained elsewhere in this report.


                                   9
<PAGE>

Results of Operations
---------------------
We currently have no business operations, are diligently seeking a business
opportunity and have not realized any revenues since inception.

We had a net loss of $18,338 for the year ended December 31, 2005, as compared
to a net loss of $6,451 for the year ended December 31, 2004. The increase in
net loss was a result of increased professional fees, including legal and
accounting fees, and operating costs incurred in connection with the
preparation and filing of our period reports and day-to-day business operations.
From inception on March 6, 2000 to December 31, 2005, we have had a total net
loss of $60,767.

General and administrative expenses at December 31, 2005 were $18,338, compared
to $6,451 at December 31, 2004. These expenses consisted of $17,048 and $6,239,
respectively, in professional fees, including legal and accounting fees to
prepare and file our quarterly and annual reports when due; operating expenses
in the amount of $815 and $212, respectively; and interest on convertible
debentures in the amount of $475 and $0, respectively.

Liquidity and Capital Resources
-------------------------------
At December 31, 2005, our only source of liquidity was our cash and cash
equivalents in the amount of $17,531, which represents the balance of proceeds
raised in our public offering in 2001.

We believe that our existing cash balance will be sufficient for near term
operating needs; however, the extent to which such sources will be sufficient
to meet our anticipated cash requirements for the balance of fiscal year ended
December 31, 2006 is subject to a number of uncertainties, the most important
of which is our ability to locate a suitable business to acquire in order to
generate sufficient revenues and cash flow to support and continue operations.

There were no cash flows generated by investing activities for the year ended
December 31 2005.

Cash flows generated by financing activities for the year ended December 31,
2005 were $20,475, representing convertible debentures issued in September 2005
in the amount of $20,000. At December 31, 2005, the balance of convertible
debentures payable was $20,475, consisting of $20,000 principal, plus $475 in
accrued interest. The holders of the convertible debentures have the right to
convert any portion of the unpaid principal sum and/or accrued interest into
our restricted common stock at any time within 24 months from the issue date on
the basis of $0.02 per share for each dollar of principal and/or interest due
and payable under the convertible debenture. At December 31, 2005, the existing
balance of $20,475 was convertible into 1,023,750 shares of our common stock.
The debentures bear interest at the rate of 9.5% per annum on any unpaid
principal balances and have no fixed terms of repayment.

In the next 12 months, we do not intend to spend any substantial funds
on research and development and do not intend to purchase any major
equipment.


                                   10
<PAGE>

We do not intend to hire any new employees during the ensuing year

We do not anticipate any material commitments for capital expenditures
in the near term. We are not aware of any trend in our industry or
capital resources which may have a negative impact on our income or
revenues.

Off-Balance Sheet Arrangements
------------------------------
We have no off-balance sheet arrangements.

Plan of Operation
-----------------
During the next twelve months, we will actively continue to seek out and
investigate possible business opportunities with the intent to acquire and
merge with one or more business ventures. In our search for business
opportunities, management will follow the procedures outlined in Item 1 above.
Because we lack substantial working capital funds, it may be necessary for our
sole officer and director to either advance funds to us or to accrue expenses
until such time as a successful business consolidation can be made. Management
intends to hold expenses to a minimum and to obtain services on a contingency
basis whenever possible.

Management's discretion is unrestricted, and we may participate in any business
whatsoever that may, in the opinion of management, meet the business objectives
discussed herein. We may effectuate a business combination with a business
outside the United States. We have not limited the scope of our search to any
particular region.

We do not intend to utilize any notices or advertisements in our search for
business opportunities.

Our sole officer and director will be primarily responsible for searching
for an appropriate merger or acquisition candidate. However, to the extent that
the existing stockholders are aware of any potential business acquisition
candidates, they may also refer these to Registrant. We recognize that
as a result of our limited financial, managerial or other resources, the number
of suitable potential businesses that may be available to us will be extremely
limited.

Our principal business objective will be to seek long-term growth potential in
the business in which we participate rather than immediate, short-term
earnings. In seeking to attain its business objectives Registrant will not
restrict our search to any particular industry. Rather, we may investigate
businesses of essentially any kind or nature, including but not limited to
finance, high technology, manufacturing, service, research and development,
communications, insurance, brokerage, transportation and others. Management
may also seek to become involved with other development-stage companies or
companies that could be categorized as "financially troubled." At the present
time, we have not chosen the particular area of business in which we proposes
to engage and have not conducted any market studies with respect to business
property or industry.
                                   11
<PAGE>

As of the date hereof, we have not made any arrangements or definitive
agreements to use outside advisors or consultants to raise any capital. In
the event we do need to raise capital, most likely the only method available
to us would be through the private sale of its securities. Because of our
status as a development-stage company, it is unlikely we could make a public
sale of securities or be able to borrow any significant sum, from either a
commercial or private lender. There can be no assurance that we will be able
to obtain additional funding when and if needed, or that such funding, if
available, can be obtained on terms acceptable to us.

We do not intend to use any employees, with the exception of part-time
clerical assistance on an as-needed basis. Outside advisors, attorneys or
consultants will only be used if they can be obtained for a minimal cost or
for a deferred payment basis. Management is confident that it will be able
to operate in this manner and continue its search for business opportunities
during the next twelve months.

Critical Accounting Policies
----------------------------
The financial statements included herein have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission. Management
believes the disclosures made are adequate to make the information not
misleading. The financial statements and accompanying notes are prepared in
accordance with generally accepted accounting principles. Preparing financial
statements requires Management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. These
estimates and assumptions are affected by Management's application of
accounting policies. These important accounting policies include the
successful efforts method of accounting for property and equipment, revenue
recognition, accounting for income taxes and foreign currency translation.

Management maintains disclosure controls and procedures designed to ensure
that we are able to timely collect the information we are required to disclose
in our reports filed with the U.S. Securities and Exchange Commission. Within
the 90 days prior to the date of this report, we performed an evaluation,
under the supervision and with the participation of our Management, of the
effectiveness of the design and operation of our disclosure controls and
procedures pursuant to Exchange Act Rule 13a-14. Based upon the evaluation,
our Principal Executive Officer and Principal Financial Officer concluded
that the current disclosure controls are effective in timely alerting us to
any material information required to be included in our periodic SEC filings.

We also maintain a system of internal controls designed to provide reasonable
assurance that (i) transactions are executed in accordance with Management's
general and specific authorization; (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain accountability for
assets; (ii) access to assets is permitted only in accordance with
Management's general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. We
believe that our internal controls are effective to provide reasonable
assurance that our financial statements are fairly presented in conformity
with generally accepted accounting principals. Since our most recent
evaluation, there have been no changes in our internal controls or in other
factors that could significantly affect our internal controls, nor were any
corrective actions required with regard to significant deficiencies and
material weaknesses.


                                   12
<PAGE>

ITEM 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
----------------------------------------------------
Our financial statements for the year ended December 31, 2005, audited by
James Stafford Chartered Accountants, an independent registered certified
accounting firm, immediately follow.







































                                     13

<PAGE>










                    CRAFTY ADMIRAL ENTERPRISES, LTD.
                   (A Development Stage Company)




                       Financial Statements
                     (Expressed in U.S. Dollars)


                          31 December 2005














                                    14

<PAGE>

James Stafford
Chartered Accountants*
Suite 350 - 1111 Melville Street
Vancouver, British Columbia
Canada V6E 3V6
Telephone +1 604 669 0711
Facsimile +1 604 669 0754
* Incorporated professional

   Report of Independent Registered Public Accounting Firm

To The Board of Directors and Stockholders of
   Crafty Admiral Enterprises, Ltd.
   (A Development Stage Company)

We have audited the balance sheet of Crafty Admiral Enterprises, Ltd. as of
31 December 2005 and the related statements of operations, cash flows and
changes in stockholders' equity for the year then ended.  We have also audited
the statements of operations, cash flows and changes in stockholders' equity
for the period from the date of inception on 6 March 2000 through 31 December
2005, except that we did not audit these financial statements for the period
from the date of inception on 6 March 2000 through 31 December 2004; those
statements were audited by other auditors whose report dated 13 April 2005,
expressed an unqualified opinion on those statements.  These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based
on our audit.  Our report, insofar as it relates to the amounts for the period
from the date of inception on 6 March 2000 through 31 December 2004, is based
solely on the report of the other auditors.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States of America).  Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation.  We believe that our audit provides a reasonable basis for
our opinion.

In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Company as of 31
December 2005 and the results of its operations, its cash flows and its
changes in stockholders' equity for the year then ended and for the period from
the date of inception on 6 March 2000 to 31 December 2005 in conformity with
accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.  As discussed in Note 1 to the
financial statements, conditions exist which raise substantial doubt about
the Company's ability to continue as a going concern unless it is able to
generate sufficient cash flows to meet its obligations and sustain its
operations.  Management's plans in regard to these matters are also
described in Note 1. The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.

/s/ James Stafford
Chartered Accountants
Vancouver, Canada

8 March 2006
                                  15
<PAGE>

<TABLE><CAPTION>
                        CRAFTY ADMIRAL ENTERPRISES, INC.
                          (A Development Stage Company)
                                 Balance Sheets
                          (Expressed in U.S. Dollars)
                               As at 31 December

                                            --------------------------
                                                2005            2004
                                            -------------   ----------
<S>                                               <C>          <C>
ASSETS
------
Current
-------
Cash and cash equivalents                     $     17,531  $    9,869
                                              ============  ==========

LIABILITIES
-----------
Current
-------
Accounts payable and accrued
  liabilities (Note 3)                               5,525            -
Due to related party (Note 4)                        2,298        2,298
Convertible debentures (Note 5)                     20,475            -
                                              ------------    ---------
                                                    28,298        2,298
                                              ------------    ---------
STOCKHOLDERS' EQUITY
--------------------
Capital Stock (Note 6)

  Authorized
   2005 - 300,000,000 of common shares,
   par value $0.001 and 50,000,000 of
   preferred shares, par value $0.001
   2004 - 50,000,000 of common shares,
   par value $0.001

  Issued and outstanding
   2005 - 42,000,000 common shares, par
   value $0.001
   2004 - 21,000,000 common shares, par
   value $0.001                                     42,000       21,000
Additional Paid-in-Capital                           8,000       29,000
Deficit, accumulated during the
  development stage                                (60,767)     (42,429)
                                              ------------   ----------
                                                   (10,767)       7,571
                                              ------------   ----------
                                               $    17,531   $    9,869
                                               ===========   ==========
</TABLE>

Nature and Continuance of Operations (Note 1), Commitment (Note 9)
and Subsequent Event (Note 10)

On behalf of the Board
/s/ Lawrence Siccia, Director

    The accompanying notes are integral part of these financial statements.

                                16
<PAGE>

<TABLE><CAPTION>
                        CRAFTY ADMIRAL ENTERPRISES, INC.
                        (A Development Stage Company)
                           Statements of Operations
                          (Expressed in U.S. Dollars)

                                   Cumulative
                                      amounts
                                     from the
                                      date of
                                 inception on
                                 6 March 2000   For the year  For the year  For the year
                                           to          ended         ended         ended
                                  31 December    31 December   31 December   31 December
                                         2005           2005          2004          2003
                                 -------------------------------------------------------

                                      <c>            <c>           <c>           <c>

Expenses
--------
Interest on convertible debentures $     475       $     475     $       -     $       -
Operating                             15,024             815           212            25
Professional Fees                     45,268          17,048         6,239        10,994
                                 -------------------------------------------------------

Net loss for the period            $ (60,767)      $ (18,338)    $  (6,451)    $ (11,019)
                                ========================================================

Basic and Diluted Earnings Per
Common Share                                         (0.0004)      (0.0003)      (0.0005)
                                                   =====================================
Weighted Average number of
Common Shares used in per
share calculations (Note 2)                       42,000,000    21,000,000    21,000,000
                                                  ======================================
</TABLE>








The accompanying notes are integral part of these financial statements.




                                  17
<PAGE>
<TABLE><CAPTION>
                         CRAFTY ADMIRAL ENTERPRISES, LTD.
                         (A Development Stage Company)
                           Statements of Cash Flows

                                   Cumulative
                                      amounts
                                     from the
                                      date of
                                 inception on
                                 6 March 2000   For the year  For the year  For the year
                                           to          ended         ended         ended
                                  31 December    31 December   31 December   31 December
                                         2005           2005          2004          2003
                                 -------------------------------------------------------

                                      <c>            <c>           <c>           <c>

Cash Flows from Operating
Activities
-------------------------
Net loss for the period           $ (60,767)     $  (18,338)    $  (6,451)    $  (11,019)
  Changes in operating assets
  and liabilities:
      Increase(decrease)in
      accounts payable                5,525           5,525             -         (1,600)
      Increase in due to
         related party                2,298               -             -              -
                                  ------------------------------------------------------
                                    (52,944)        (12,813)       (6,451)       (12,619)
                                  ------------------------------------------------------
Cash Flows from Investing
Activities                                -               -             -              -
-------------------------         ------------------------------------------------------

Cash Flows from Financing
Activities
-------------------------
 Convertible debentures              20,475          20,475             -              -
 Common shares issued for cash       50,000               -             -              -
                                  ------------------------------------------------------
                                     70,475          20,475             -              -
                                  ------------------------------------------------------

Increase (decrease) in cash
and cash equivalents                 17,531           7,662        (6,451)       (12,619)
                                  ------------------------------------------------------
Cash and cash equivalents,
beginning of period                       -           9,869        16,320         28,939
                                  ------------------------------------------------------
Cash and cash equivalents,
end of period                       17,531           17,531         9,869         16,320
                                  ======================================================

Supplemental Disclosures with
Respect to Cash Flows (Note 11)

</TABLE>

   The accompanying notes are integral part of these financial statements.

                                     18
<PAGE>

<TABLE><CAPTION>
                      CRAFTY ADMIRAL ENTERPRISES, LTD.
                      (A Development Stage Company)
               Statements of Changes in Stockholders' Equity
                        (Expressed in U.S. Dollars)


                                                     Deficit,
                      Number           Additional Accumulated     Total
                        of      Share   Paid-In   During the   Stockholders'
                      Shares   Capital  Capital   Development     Equity
                      Issued                        Stage
                                  $        $          $              $
                   ---------------------------------------------------------
<S>                    <C>       <C>       <C>        <C>           <C>
Balance at
6 March
2000 (Inception)

Common shares
issued - cash
($0.001 per share)  2,000,000    2,000     1,000           -         3,000

Net loss for
the period                  -        -         -      (2,291)       (2,291)
                   ---------------------------------------------------------
Balance at
31 December
2000                2,000,000    2,000     1,000      (2,291)          709

Common shares
issued - cash
($0.001 per share)  5,000,000    5,000     42,000          -        47,000

Net loss for
the year                    -        -          -    (10,571)      (10,571)
                   ----------------------------------------------------------
Balance at
31 December
2001                7,000,000    7,000     43,000    (12,862)       37,138

Net loss for
the year                    -        -          -    (12,097)      (12,097)
                   ----------------------------------------------------------
Balance at
31 December
2002                7,000,000    7,000     43,000    (24,959)       25,041

Net loss for
the year                    -        -          -    (11,019)      (11,019)
                   ----------------------------------------------------------
Balance at
31 December
2003                7,000,000    7,000    43,000     (35,978)       14,022

3 for 1 forward
split              14,000,000   14,000   (14,000)          -             -

Net loss for
the year                    -        -         -      (6,451)       (6,451)
                  -----------------------------------------------------------
Balance at
31 December
    2004           21,000,000   21,000    29,000     (42,429)        7,571

2 for 1 forward
split (Note 6)     21,000,000   21,000   (21,000)          -             -

Net loss for
the year                    -        -         -     (18,338)      (18,338)
                  -----------------------------------------------------------
Balance at
31 December
   2005           42,000,000   42,000     8,000     (60,767)      (10,767)

</TABLE>

The accompanying notes are integral part of these financial statements.

                                    19
<PAGE>



                      CRAFTY ADMIRAL ENTERPRISES, LTD.
                       (A Development Stage Company)
                       Notes to Financial Statements
                        (Expressed in U.S. Dollars)
                             31 December 2005

1.	Nature and Continuance of Operations

Crafty Admiral Enterprises, Ltd. (the "Company") was incorporated under the
laws of the State of Nevada on 6 March 2000.  The Company is in the
development stage as its operations principally involve research and
development, market analysis, and other business planning activities, and
no revenue has been generated to date.

The Company is a development stage Company, as defined in Statement of
Financial Accounting Standards ("SFAS") No. 7. The Company is devoting all of
its present efforts in securing and establishing a new business, and its
planned principle operations have not commenced, and, accordingly, no
revenue has been derived during the organization period.

The Company's financial statements as at 31 December 2005 and for the year
then ended have been prepared on a going concern basis, which contemplates
the realization of assets and the settlement of liabilities and commitments
in the normal course of business.  The Company has a loss $18,338 for the
year ended 31 December 2005 (2004 - $6,451, 2003 - $11,019) and has working
capital deficit of $10,767 at 31 December 2005 (2004 - working capital of
$7,571).

Management cannot provide assurance that the Company will ultimately achieve
profitable operations or become cash flow positive, or raise additional debt
and/or equity capital.  Management believes that the Company's capital
resources should be adequate to continue operating and maintaining its
business strategy during the fiscal year ending 31 December 2006.  However,
if the Company is unable to raise additional capital in the near future, due
to the Company's liquidity problems, management expects that the Company will
need to curtail operations, liquidate assets, seek additional capital on
less favourable terms and/or pursue other remedial measures.  These financial
statements do not include any adjustments related to the recoverability and
classification of assets or the amounts and classification of liabilities
that might be necessary should the Company be unable to continue as a going
concern.

At 31 December 2005, the Company was not currently engaged in a business and
had suffered losses from development stage activities to date.  Although
management is currently attempting to implement its business plan, and is
seeking additional sources of equity or debt financing, there is no
assurance these activities will be successful.  Accordingly, the Company
must rely on its president to perform essential functions without
compensation until a business operation can be commenced.  These factors
raise substantial doubt about the ability of the Company to continue as a
going concern.  The financial statements do not include any adjustments that
might result from the outcome of this uncertainty.

                                   20
<PAGE>
                     CRAFTY ADMIRAL ENTERPRISES, LTD.
                       (A Development Stage Company)
                       Notes to Financial Statements
                        (Expressed in U.S. Dollars)
                             31 December 2005

2. Significant Accounting Policies

The following is a summary of significant accounting policies used in the
preparation of these financial statements.

Basis of presentation

The accounting and reporting policies of the Company conform to the
accounting principles generally accepted in the United States of America
applicable to development stage enterprises and are expressed in U.S.
dollars.  The Company's fiscal year-end is 31 December.

Cash and cash equivalents

Cash and cash equivalents include highly liquid investments with original
maturities of three months or less.

Financial instruments

The carrying value of cash, accounts payable and accrued liabilities, amounts
due to related parties and convertible debentures payable approximates their
fair value because of the short maturity of these instruments.  The Company's
operations are in Canada and virtually all of its assets and liabilities are
giving rise to significant exposure to market risks from changes in foreign
currency rates.  The Company's financial risk is the risk that arises from
fluctuations in foreign exchange rates and the degree of volatility of these
rates.  Currently, the Company does not use derivative instruments to reduce
its exposure to foreign currency risk.

Derivative financial instruments

The Company has not, to the date of these financial statements, entered into
derivative instruments to offset the impact of foreign currency fluctuations.

Income taxes

Deferred income taxes are reported for timing differences between items of
income or expense reported in the financial statements and those reported for
income tax purposes in accordance with SFAS No. 109, Accounting for Income
Taxes, which requires the use of the asset/liability method of accounting for
income taxes.  Deferred income taxes and tax benefits are recognized for the
future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases, and for tax losses and credit carry-forwards. Deferred
tax assets and liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled.  The Company provides for deferred
taxes for the estimated future tax effects attributable to temporary
differences and carry-forwards when realization is more likely than not.

                                   21
<PAGE>

                      CRAFTY ADMIRAL ENTERPRISES, LTD.
                       (A Development Stage Company)
                       Notes to Financial Statements
                        (Expressed in U.S. Dollars)
                             31 December 2005

Basic and diluted net loss per share

The Company computes net income (loss) per share in accordance with SFAS No.
128, Earnings per Share.  SFAS No. 128 requires presentation of both basic
and diluted earnings per share ("EPS") on the face of the income statement.
Basic EPS is computed by dividing net income (loss) available to common
shareholders (numerator) by the weighted average number of shares outstanding
(denominator) during the period.  Diluted EPS gives effect to all dilutive
potential common shares outstanding during the period using the treasury
stock method and convertible preferred stock using the if-converted method.
In computing diluted EPS, the average stock price for the period is used in
determining the number of shares assumed to be purchased from the exercise
of stock options or warrants.  Diluted EPS excluded all dilutive potential
shares if their effect is anti-dilutive.

Comprehensive loss

SFAS No. 130, Reporting Comprehensive Income, establishes standards for the
reporting and display of comprehensive loss and its components in the
financial statements.  As at 31 December 2005, the Company has no items that
represent a comprehensive loss and, therefore, has not included a schedule
of comprehensive loss in the financial statements.

Segments of an enterprise and related information

SFAS No. 131, Disclosures about Segments of an Enterprise and Related
Information, supersedes SFAS No. 14, Financial Reporting for Segments of a
Business Enterprise.  SFAS No. 131 establishes standards for the way that
public companies report information about operating segments in annual
financial statements and requires reporting of selected information about
operating segments in interim financial statements issued to the public.
It also establishes standards for disclosures regarding products and
services, geographic areas and major customers.  SFAS No. 131 defines
operating segments as components of a company about which separate financial
information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing
performance.  The Company has evaluated this SFAS and does not believe it
is applicable at this time.


Start-up expenses

The Company has adopted Statement of Position No. 98-5, Reporting the Costs
of Start-up Activities, which requires that costs associated with start-up
activities be expensed as incurred.  Accordingly, start-up costs associated
with the Company's formation have been included in the Company's expenses
for the period from the date of inception on 6 March 2000 to 31 December
2005.

                                   22
<PAGE>

                      CRAFTY ADMIRAL ENTERPRISES, LTD.
                       (A Development Stage Company)
                       Notes to Financial Statements
                        (Expressed in U.S. Dollars)
                             31 December 2005
Foreign currency translation

The Company's functional and reporting currency is U.S. dollars.  The
financial statements of the Company are translated to U.S. dollars in
accordance with SFAS No. 52, Foreign Currency Translation.  Monetary assets
and liabilities denominated in foreign currencies are translated using the
exchange rate prevailing at the balance sheet date.  Gains and losses
arising on translation or settlement of foreign currency denominated
transactions or balances are included in the determination of income. The
Company has not, to the date of these financial statements, entered into
derivative instruments to offset the impact of foreign currency fluctuations.

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 amounts of
assets and liabilities and disclosures of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenditures during the reporting period.  Actual results could differ
from these estimates.

Comparative figures

Certain comparative figures have been adjusted to conform to the current
period's presentation.

Recent accounting pronouncements

In May 2005, the Financial Accounting Standards Board (the "FASB") issued
SFAS No. 154, Accounting Changes and Error Corrections - A Replacement of
APB Opinion No. 20 and SFAS No. 3.  SFAS No. 154 changes the requirements
for the accounting for and the reporting of a change in accounting principle
and applies to all voluntary changes in accounting principle. It also
applies to changes required by an accounting pronouncement in the unusual
instance that the pronouncement does not include specific transition
provisions.  SFAS No. 154 requires retrospective application to prior
periods' financial statements of changes in accounting principle, unless it
is impracticable to determine either the period-specific effects or the
cumulative effect of the change.  The provisions of SFAS No. 154 are
effective for accounting changes and correction of errors made in fiscal
years beginning after 15 December 2005.  The adoption of this standard is
not expected to have a material effect on the Company's results of operations
or financial position.

In March 2005, the SEC staff issued Staff Accounting Bulletin ("SAB") No. 107
to give guidance on the implementation of SFAS No. 123R.  The Company will
consider SAB No. 107 during implementation of SFAS No. 123R.

In December 2004, the FASB issued SFAS No. 153, Exchanges of Nonmonetary
Assets - An Amendment of APB Opinion No. 29.  The guidance in APB Opinion
No. 29, Accounting for Nonmonetary Transactions, is based on the principle
that exchanges of nonmonetary assets should be measured based on the fair
value of the assets exchanged.  The guidance in that Opinion, however,
included certain exceptions to that principle.  SFAS No. 153 amends Opinion

                                   23
<PAGE>
                      CRAFTY ADMIRAL ENTERPRISES, LTD.
                       (A Development Stage Company)
                       Notes to Financial Statements
                        (Expressed in U.S. Dollars)
                             31 December 2005

No. 29 to eliminate the exception for nonmonetary exchanges of similar
productive assets and replaces it with a general exception for exchanges of
nonmonetary assets that do not have commercial substance.  A nonmonetary
exchange has commercial substance if the future cash flows of the entity
are expected to change significantly as a result of the exchange.  The
provisions of SFAS No. 153 are effective for nonmonetary asset exchanges
occurring in fiscal periods beginning after 15 June 2005.  Early
application is permitted and companies must apply the standard
prospectively.  The adoption of this standard is not expected to have a
material effect on the Company's results of operations or its financial
position.

In December 2004, the FASB issued SFAS No. 123R, Share Based Payment.
SFAS No. 123R is a revision of SFAS No. 123, Accounting for Stock-Based
Compensation, and supersedes APB Opinion No. 25, Accounting for Stock
Issued to Employees and its related implementation guidance.  SFAS No.
123R establishes standards for the accounting for transactions in which
an entity exchanges its equity instruments for goods or services.  It also
addresses transactions in which an entity incurs liabilities in exchange
for goods or services that are based on the fair value of the entity's
equity instruments or that may be settled by the issuance of those equity
instruments.  SFAS No. 123R focuses primarily on accounting for
transactions in which an entity obtains employee services in share-based
payment transactions.  SFAS No. 123R requires a public entity to measure
the cost of employee services received in exchange for an award of equity
instruments based on the grant-date fair value of the award (with limited
exceptions).  That cost will be recognized over the period during which an
employee is required to provide service in exchange for the award - the
requisite service period (usually the vesting period).  SFAS No. 123R
requires that the compensation cost relating to share-based payment
transactions be recognized in the financial statements.  That cost will
be measured based on the fair value of the equity or liability
instruments issued.  Public entities that file as small business issuers
will be required to apply SFAS No. 123R in the first interim or annual
reporting period that begins after 15 December 2005.  The adoption of this
standard is not expected to have a material effect on the Company's
results of operations or its financial position.

The FASB has also issued SFAS No. 151 and 152, but they will not have
relationship to the operations of the Company.  Therefore a description
and its impact for each on the Company' s operations and financial
position have not been disclosed.

3. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities are non-interest bearing,
unsecured and have settlement dates within one year.

4. Due to Related Party

As at 31 December 2005, the amount due to related parties consists of
$2,298 (2004 - $2,298) payable to a sole officer and director of the
Company.  This balance is non-interest bearing, unsecured and has no
fixed terms of repayment.

                                   24
<PAGE>
                      CRAFTY ADMIRAL ENTERPRISES, LTD.
                       (A Development Stage Company)
                       Notes to Financial Statements
                        (Expressed in U.S. Dollars)
                             31 December 2005

5. Convertible Debentures

The Company issued convertible debentures totaling $20,000 in September
2005.  At 31 December 2005, the balance of convertible debentures
payable was $20,475, consisting of $20,000 principle plus $475 accrued
interest.  The holders of the convertible debentures have the right to
convert any portion of the unpaid principal sum and/or accrued interest
into restricted common shares of the Company at any time within twenty
four (24) months from the issue date on the basis of $0.02 per share
for each dollar of principal and/or interest due and payable under the
convertible debentures.  At 31 December 2005, the existing balance of
$20,475 was convertible into 1,023,750 common shares of the Company.
The convertible debentures bear interest at the rate of nine and a
half percent (9.5%) per annum on any unpaid principal balances, are
unsecured and have no fixed terms of repayment.

6.  Capital Stock

Authorized

The total authorized capitals consist of:

-  300,000,000 of common shares with par value of $0.001
-   50,000,000 of preferred shares with par value of $0.001

On 30 September 2005, the Company altered its authorized capital by
increasing authorized common shares with par value of $0.01 from
50,000,000 to 300,000,000 and adding 50,000,000 of preferred shares
with par value of $0.001.

Issued and outstanding

The total issued and outstanding capital stock is 42,000,000 common
shares with a par value of $0.001 per share.

On 30 September 2005, the Company completed a two for one forward
split of its issued and outstanding common shares. This resulted in
an increase of 21,000,000 issued and outstanding common shares at
this date.

7.	Income Taxes

The Company has losses carried forward for income tax purposes to 31
December 2005.  There are no current or deferred tax expenses for the
period ended 31 December 2005 due to the Company's loss position. The
Company has fully reserved for any benefits of these losses.  The
deferred tax consequences of temporary differences in reporting items
for financial statement and income tax purposes are recognized, as
appropriate.  Realization of the future tax benefits related to the
deferred tax assets is dependent on many factors, including the
Company's ability to generate taxable income within the net operating
loss carryforward period.  Management has considered these factors in
reaching its conclusion as to the valuation allowance for financial
reporting purposes.

                                   25
<PAGE>
                     CRAFTY ADMIRAL ENTERPRISES, LTD.
                       (A Development Stage Company)
                       Notes to Financial Statements
                        (Expressed in U.S. Dollars)
                             31 December 2005

The provision for refundable federal income tax consists of the following:

<TABLE><CAPTION>
		                              For the year    For the year     For the year
                                                     ended           ended            ended
                                               December 31     December 31      December 31
                                                      2005            2004             2003
                                                         $               $                $
                                              ---------------------------------------------

                                                <c>             <c>               <c>
Refundable federal income tax attributable to:
Current operations                                   6,235           2,193            3,746
Less: Change in valuation allowance                 (6,235)         (2,193)          (3,746)
                                              ---------------------------------------------
Net refundable amount                                    -               -                -
                                              =============================================
</TABLE>

The composition of the Company's deferred tax assets as at 31 December 2005
and 2004 are as follows:

<TABLE><CAPTION>
                                              31 December    31 December
                                                     2005           2004
                                                        $              $
                                              --------------------------
<S>                                                <C>             <C>
Net income tax operating loss carryforward       (60,767)        (42,429)

Statutory federal income tax rate                     34%             34%
Effective income tax rate                              0%              0%

Deferred tax asset
Tax loss carryforward                             20,661          14,426
Less: Valuation allowance                        (20,661)        (14,426)
                                              --------------------------
Net deferred tax asset                                 -               -
                                              ==========================
</TABLE>

The potential income tax benefit of these losses has been offset by a full
valuation allowance.

As at 31 December 2005, the Company has an unused net operating loss carry-
forward balance of approximately $60,767 that is available to offset future
taxable income.  This unused net operating loss carry-forward balance expires
in 2020.

                                   26
<PAGE>
                      CRAFTY ADMIRAL ENTERPRISES, LTD.
                       (A Development Stage Company)
                       Notes to Financial Statements
                        (Expressed in U.S. Dollars)
                             31 December 2005

8.  Supplemental Disclosures with Respect to Cash Flows

<TABLE><CAPTION>
                                   Cumulative
                                      amounts
                                     from the
                                      date of
                                 inception on
                                 6 March 2000   For the year  For the year  For the year
                                           to          ended         ended         ended
                                  31 December    31 December   31 December   31 December
                                         2005           2005          2004          2003
                                 -------------------------------------------------------

                                      <c>            <c>           <c>           <c>

Cash paid during the year
for interest		                    -              -             -             -
Cash paid during the year
for income taxes	                    -              -             -             -
</TABLE>

9. Commitment

The Company is committed to issuing common shares of the Company under the
terms of existing convertible debentures (Note 5).

10. Subsequent Event

Subsequent to 31 December 2005, the Company authorized the issue of up to
4,000,000 common shares of the Company at a price of $0.02 per common share
for total proceeds of $80,000.








                                   27
<PAGE>


ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE.

There have been no disagreements with our accountants on accounting
or other financial disclosures.

Item 9a. Accounting Controls and Procedures
-------------------------------------------
Accounting Policies
-------------------
The financial statements included herein have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission. Management
believes the disclosures made are adequate to make the information not
misleading. The financial statements and accompanying notes are prepared in
accordance with generally accepted accounting principles. Preparing financial
statements requires Management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. These
estimates and assumptions are affected by Management's application of
accounting policies. These important accounting policies include the
successful efforts method of accounting for property and equipment, revenue
recognition, accounting for income taxes and foreign currency translation.

Management maintains disclosure controls and procedures designed to ensure
that we are able to timely collect the information we are required to
disclose in our reports filed with the U.S. Securities and Exchange
Commission. Within the 90 days prior to the date of this report, we performed
an evaluation, under the supervision and with the participation of our
Management, of the effectiveness of the design and operation of our
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based
upon the evaluation, our Principal Executive Officer and Principal Financial
Officer concluded that the current disclosure controls are effective in
timely alerting us to any material information required to be included in our
periodic SEC filings.

We also maintain a system of internal controls designed to provide reasonable
assurance that (i) transactions are executed in accordance with Management's
general and specific authorization; (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain accountability for
assets; (ii) access to assets is permitted only in accordance with Management's
general or specific authorization; and (iv) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. We believe that
our internal controls are effective to provide reasonable assurance that our
financial statements are fairly presented in conformity with generally accepted
accounting principals. Since our most recent evaluation, there have been no
changes in our internal controls or in other factors that could significantly
affect our internal controls, nor were any corrective actions required with
regard to significant deficiencies and material weaknesses.

                                 28
<PAGE>
                             PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT.

Each of our directors is elected by the stockholders to a term of one year and
serves until his or her successor is elected and qualified. Each of the
officers is elected by the Board of Directors to a term of one year and serves
until his or her successor is duly elected and qualified, or until he or she
is removed from office. The Board of Directors has no nominating, auditing or
compensation committees.

The names, addresses, ages and positions of the current officers and directors
is set  forth  below:
<TABLE><CAPTION>
<S>                         <C>      <C>
Name and Address            Age      Position(s)
----------------           ----      -------------
Lawrence Siccia	            34	     President, CEO,
1608 Yew Street #403	             Secretary, CFO,
Vancouver, BC, Canada   V6K 3E7      Treasurer and Director
</TABLE>

Background of Officers and Directors
------------------------------------
Lawrence Siccia has been the President, Secretary, Treasurer and Director of
Crafty Admiral Enterprises, Ltd. since May 3, 2001. Since 1995, he has also
been a Finance Broker and the Retail Lease Manager for Totem Ford in
Vancouver, B.C., Canada.  Mr. Siccia has been in the automobile industry since
1994 and has extensive knowledge of automobiles, parts and the automobile
industry in general.  He devotes his time as required to our business.

Section 16(a) Beneficial Ownership Reporting Compliance
-------------------------------------------------------
Section 16(a) of the Securities Exchange Act of 1934 requires our directors
and executive officers, and persons who own more than ten percent of our
Common Stock, to file with the Securities and Exchange Commission initial
reports of ownership and reports of changes of ownership of our Common Stock.
Officers, directors and greater than ten percent stockholders are required
by SEC regulation to furnish us with copies of all Section 16(a) forms they
file.

To the best of our knowledge, during the year ended December 31, 2005, all
Section 16(a) filing requirements applicable to our officers, directors and
greater than ten percent beneficial owners were complied with. In making these
disclosures, we have relied solely on a review of the copies of such reports
furnished to us and written representations by our directors, executive
officers and greater than ten percent stockholders.

                                   29
<PAGE>
Code of Ethics
--------------
At this time, we have not adopted a formal Code of Ethics that applies to
the Chief Executive Officer and Chief Financial Officer, but expect to adopt
a formal Code of Ethics once a merger candidate is identified and business
operations are commenced. We have, however, followed an informal Code of
Ethics requiring Board of Director approval of any material transaction
involving the Chief Executive Officer and/or Chief Financial Officer. We
believe this procedure will deter material wrongdoing and promote honest and
ethical conduct from the executive officers.

Item 11.  Executive Compensation
          ----------------------
The officers and directors do not presently receive any cash or non-cash
compensation for their services and there are currently no plans to implement
any such compensation. They are, however, reimbursed for any out-of-pocket
expenses incurred.

<TABLE><CAPTION>
-----------------------------------------------------------------
                  SUMMARY COMPENSATION TABLE
-----------------------------------------------------------------
                        Annual Compensation     Long-Term Comp.
                                       Other    Awards    Payouts
Name and                               Annual
Position(s)       Year  Salary  Bonus  Comp.
-----------------------------------------------------------------

                <c>  <c>      <c>    <c>       <c>      <c>
Lawrence Siccia   2005  None    None   None      None      None
President, CEO,   2004  None    None   None      None      None
CFO, Secretary,
Treasurer and
Director
-----------------------------------------------------------------
</TABLE>

Employment Agreements
---------------------
The officers and directors are not currently party to any employment
agreements and we do not presently have any pension, health, annuity,
insurance, stock options, profit sharing or similar benefit plans;
however, it may adopt such plans in the future. There are presently
no personal benefits available to directors, officers or employees.



                                   30
<PAGE>

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.

The following table sets forth the total number of shares owned
beneficially by each of Registrant's directors, officers and key
employees, individually and as a group, and the present owners
of 5% or more of total outstanding shares. The stockholders listed
below have direct ownership of their shares and possess sole voting
and dispositive power with respect to the shares.

<TABLE><CAPTION>
<S>                     <C>                <C>
-------------------------------------------------------------------
Title of Class  Name and Address           Amount and
                of Beneficial              Nature of      Percent
                    Owner                  Beneficial     of Class
                                           Ownership
-------------------------------------------------------------------
Common Stock    Lawrence Siccia             6,000,000       29%
                #403 - 1608 Yew St.
                Vancouver, BC,
                Canada V2S7C9
-------------------------------------------------------------------
All Officers and
Directors as a
Group (1 person)                            6,000,000       29%
</TABLE>

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

We are currently using the home of our President and CEO, Lawrence Siccia,
on a rent-free basis to conduct our business operations. There is no
written lease agreement or other material terms or arrangements relating
to our agreement with Mr. Siccia to use his home.

At December 31, 2005, there was $2,298 payable to the sole officer and
director of the Company. This balance is non-interest bearing, unsecured
and has no fixed term of repayment.

We do not have any other related transactions and has not yet formulated a
policy for the resolution of any related transaction conflicts, should they
arise.


                                   31
<PAGE>
Item 14. Principal Accountant Fees and Services
-----------------------------------------------
Audit Fees
----------
The aggregate fees billed for professional services rendered by our
principal accountant for the audit of our annual financial statements
for the fiscal years ended December 31, 2005 and 2004 were $2,685
and $1,500, respectively, and the review for the financial statements
included in our quarterly reports on Form 10-QSB during the fiscal years
ended December 31, 2005 and 2004, were $2,827 and $750, respectively.

Audit Related Fees
------------------
We incurred no fees for the fiscal years ended December 31, 2005 and 2004
for assurance and related services by our principal accountant that were
reasonably related to the performance of the audit or review of our
financial statements, and not reported under Audit Fees above.

Tax Fees
--------
The aggregate fees billed for professional services rendered by our
principal accountant for tax compliance, tax advice, preparation and
filing of tax returns and tax planning for the fiscal years ended
December 31, 2005 and 2004 were nil.

All Other Fees
--------------
We incurred no other fees during the fiscal years ended December 31, 2005
and 2004 for products and services rendered by our principal accountant.


ITEM 15.  EXHIBITS, LISTS AND REPORTS ON FORM 8-K.

(a) 1 & 2.  Registrant's financial statement for the years ended December 31,
2005 are included herein.

(a) 3. Registrant filed no reports on Form 8-K during the fourth quarter ended
December 31, 2005.

The following exhibits are included herein, except for the exhibits marked
with an asterisk, which are incorporated herein by reference and can be found
in Registrant's original Form 10-SB Registration Statement, filed on May 6,
2003, under SEC File Number 0-49725 at the U.S. Securities and Exchange
Commission's website (www.sec.gov).

<TABLE><CAPTION>
<S>                     <C>
Exhibit Number     Description
--------------     -----------
    3(i) *         Articles of Incorporation
    3(ii)*         Bylaws
   31.1            Sec. 302 Certification
   32.1            Sec. 906 Certifications

</TABLE>
                                    32
<PAGE>




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


Dated:  March 26, 2006     Crafty Admiral Enterprises, Ltd.
                           by: /s/ Lawrence Siccia, President


Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of Registrant and in the capacities and on the dates
indicated:

Dated:  March 26, 2006     Crafty Admiral Enterprises, Ltd.
                           by: /s/ Lawrence Siccia, President









                                   33
<PAGE>