----

----

| [X] | QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|-----|-----------------------------------------------------------------------------------------------------------------|

| [                  ] | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|--------------------------------|------------------------------------------------------------------------------------------------------------------|

| DELAWARE                                                                    | 23-2442288                                           |
|-----------------------------------------------------------------------------|------------------------------------------------------|
| State                or other jurisdiction of incorporation or organization | I.R.S.                Employer Identification Number |
|                                                                        |                                                 |
| 6467                Zuma View Place, Suite 160, Malibu CA                   | 90265                                                |
| Address                of principal executive offices                       | Zip                Code                              |
|                                                                        |                                                 |
| (310)                589-3985                                               |
| Issuer's                Telephone Number                                    |

| Yes | X | No |   |
|-----|---|----|--------|

| Yes |   | No | X  |
|-----|--------|----|---------|

| Yes |   | No | X  |
|-----|--------|----|---------|

----

| **PART                I FINANCIAL STATEMENTS**                                                                                                                                                                                                       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                 |   |
| Item                1. Financial Statements (Unaudited):                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                 |   |
| Consolidated                Balance Sheet as of December 31, 2005                                                                                                                                                                                    | 2      |
|                                                                                                                                                                                                                                                 |   |
| Consolidated                Statements of Operations for the Three Months Ended December 31,                2005 and                December 31, 2004 (As Restated) and April 1, 1998 (Inception) to                December                31, 2005 | 3      |
|                                                                                                                                                                                                                                                 |   |
| Consolidated                Statement of Cash Flows for the Three Months Ended December 31, 2005                and                December 31, 2004 (As Restated) and April 1, 1998 (Inception) to                December                31, 2005  | 4      |
|                                                                                                                                                                                                                                                 |   |
| Notes                to the Consolidated Financial Statements                                                                                                                                                                                        | 6      |
|                                                                                                                                                                                                                                                 |   |
| Item                2. Management’s Discussion and Analysis or Plan of                Operations                                                                                                                                               | 12     |
|                                                                                                                                                                                                                                                 |   |
| Item                3. Controls and Procedures                                                                                                                                                                                                       | 14     |
|                                                                                                                                                                                                                                                 |   |
| PART                II OTHER INFORMATION                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                 |   |
|  Item 2. Unregistered Sales              of              Equity Securities                                                                                                                                                                      | 14     |
|                                                                                                                                                                                                                                                 |   |
| Item                6. Exhibits                                                                                                                                                                                                                      | 14     |
|                                                                                                                                                                                                                                                 |   |
| Signature                Page                                                                                                                                                                                                                        | 15     |

----

| ASSETS                                                                                                                                                   |   |   |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
| Current                Assets:                                                                                                                           |   |   |        |   |
| Cash                and cash equivalents                                                                                                                 |   | $      | 37,273      |   |
| Prepaid                financing costs                                                                                                                   |   |   | 98,180      |   |
| Other                current assets                                                                                                                      |   |   | 8,049       |   |
| Total                Current Assets                                                                                                                      |   |   | 143,502     |   |
|                                                                                                                                                     |   |   |        |   |
| Production                costs                                                                                                                          |   |   | 1,711,430   |   |
| Property                and equipment, net of accumulated depreciation of $575                                                                           |   |   | 575         |   |
|                                                                                                                                                     |   |   |        |   |
| Total                Assets                                                                                                                              |   | $      | 1,855,507   |   |
|                                                                                                                                                     |   |   |        |   |
| LIABILITIES                & NET CAPITAL DEFICIENCY                                                                                                  |   |   |        |   |
| Current                Liabilities:                                                                                                                      |   |   |        |   |
| Accounts                payable and accrued expenses                                                                                                     |   | $      | 85,517      |   |
| Accrued                salaries                                                                                                                          |   |   | 310,191     |   |
| Accrued                interest                                                                                                                          |   |   | 44,083      |   |
| Accrued                interest to officers                                                                                                              |   |   | 30,113      |   |
| Convertible                debentures, net of discount of $52,093                                                                                        |   |   | 1,283,680   |   |
| Convertible                debentures, payable to officers                                                                                               |   |   | 200,000     |   |
| Total                Current Liabilities                                                                                                                 |   |   | 1,953,584   |   |
|                                                                                                                                                     |   |   |        |   |
| Minority                Interest                                                                                                                         |   |   | 551,104     |   |
|                                                                                                                                                     |   |   |        |   |
| Net                Capital Deficiency                                                                                                                    |   |   |        |   |
| Common                stock, par value $.0015 per share; authorized 100,000,000 shares,                66,705,894 shares issued and outstanding          |   |   | 100,059     |   |
| Convertible                preferred stock, authorized 1,000,000 shares,par value $10.00; no                shares                issued and outstanding |   |   | --          |   |
| Additional                paid in capital                                                                                                                |   |   | 16,349,824  |   |
| Members’                capital                                                                                                                    |   |   | 1,367,660   |   |
| Stock                subscription receivable                                                                                                             |   |   | (216,633    | ) |
| Prepaid                consulting fees                                                                                                                   |   |   | (105,896    | ) |
| Deferred                compensation                                                                                                                     |   |   | (32,083     | ) |
| Deficit                accumulated during development stage                                                                                              |   |   | (18,112,112 | ) |
| Total                Net Capital Deficiency                                                                                                              |   |   | (649,181    | ) |
|                                                                                                                                                     |   |   |        |   |
| Total                Liabilities and Net Capital Deficiency                                                                                              |   | $      | 1,855,507   |   |

----

|                                                                                                     |   |  Three                Months EndedDecember                31, |       | April                1, 1998(Inception)To                December 31, |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|-----------------------------------------------------------------------|--------|
|                                                                                                     |   |  2005                                                         |       |  2004                                                            |   | 2005 |   |
|                                                                                                     |   |                                                               |       |  (As                Restated)                                    |   |   |   |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |
| Net                revenues                                                                              |   |                                                               | --         |                                                                  |   | -- |   |   | -- |   |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Direct                Costs and Expenses:                                                                |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Production                costs                                                                          |   |                                                               | --         |                                                                  |   | -- |   |   | 2,474,445 |   |
| General                and administrative                                                                |   |                                                               | 405,650    |                                                                  |   | 289,784 |   |   | 13,417,053 |   |
| Depreciation                and amortization                                                             |   |                                                               | 96         |                                                                  |   | 96 |   |   | 133,498 |   |
| Total                Costs and Expenses                                                                  |   |                                                               | 405,746    |                                                                  |   | 289,880 |   |   | 16,024,996 |   |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Loss                from operations before other expenses and provisions for income                taxes |   |                                                               | (405,746   | )                                                                     |   | (289,880 | ) |   | (16,024,996 | ) |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Other                Operating Income (Expense):                                                         |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Interest                income                                                                           |   |                                                               | 942        |                                                                  |   | 518 |   |   | 13,273 |   |
| Settlement                income                                                                         |   |                                                               | --         |                                                                  |   | -- |   |   | 1,345,490 |   |
| Interest                expense                                                                          |   |                                                               | (126,242   | )                                                                     |   | (281,300 | ) |   | (1,594,157 | ) |
| Equity                in earnings of unconsolidated subsidiary                                           |   |                                                               | --         |                                                                  |   | -- |   |   | 96,774 |   |
| Loss                from termination of interest in unconsolidated subsidiary                            |   |                                                               | --         |                                                                  |   | -- |   |   | (1,985,901 | ) |
| Minority                interest in consolidated loss                                                    |   |                                                               | 1,572      |                                                                  |   | -- |   |   | 83,027 |   |
| Loss                on disposal of assets                                                                |   |                                                               | --         |                                                                  |   | -- |   |   | (45,622 | ) |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Total                Other Operating Income (Expense)                                                    |   |                                                               | (123,728   | )                                                                     |   | (280,782 | ) |   | (2,087,116 | ) |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Operating                Loss Before Income Taxes                                                        |   |                                                               | (529,474   | )                                                                     |   | (570,662 | ) |   | (18,112,112 | ) |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Provision                for income taxes                                                                |   |                                                               | --         |                                                                  |   | -- |   |   | -- |   |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Net                Loss                                                                                  |   | $                                                                  | (529,474   | )                                                                     | $      | (570,662 | ) | $ | (18,112,112 | ) |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Weighted                average common shares outstanding, basic and diluted                             |   |                                                               | 66,705,894 |                                                                  |   | 63,118,173 |   |   |   |   |
|                                                                                                     |   |                                                               |       |                                                                  |   |   |   |   |   |   |
| Loss                per common share, basic and diluted                                                  |   | $                                                                  | (.01       | )                                                                     | $      | (.01 | ) |   |   |   |

----

|                                                                                                                           |   | Three                Months EndedDecember                31, |     | April                1, 1998(Inception)To                December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|----------|-----------------------------------------------------------------------|--------|
|                                                                                                                           |   | 2005                                                         |     | 2004                                                                  |   | 2005 |   |
|                                                                                                                           |   |                                                         |     | (As                Restated)                                          |   |   |   |
| Cash                flows from operating activities:                                                                           |   |                                                         |     |                                                                  |   |   |   |
| Net                Loss                                                                                                        |   | $                                                            | (529,474 | )                                                                     | $      | (570,662 | ) | $ | (18,112,112 | ) |
| Adjustments                to reconcile net loss to net cash and cash equivalents used in operating                activities: |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Depreciation                and amortization                                                                                   |   |                                                         | 96       |                                                                  |   | 96 |   |   | 133,497 |   |
| Amortization                of prepaid consulting fees paid with equity                                                        |   |                                                         | 71,037   |                                                                  |   | 70,204 |   |   | 294,447 |   |
| Amortization                of deferred compensation paid with equity                                                          |   |                                                         | 17,500   |                                                                  |   | 17,500 |   |   | 87,500 |   |
| Amortization                of loan discount                                                                                   |   |                                                         | 22,661   |                                                                  |   | 251,671 |   |   | 1,078,857 |   |
| Amortization                of prepaid financing costs                                                                         |   |                                                         | 68,000   |                                                                  |   | -- |   |   | 173,820 |   |
| Loan                fees                                                                                                       |   |                                                         | --       |                                                                  |   | -- |   |   | 25,000 |   |
| Loss                on abandonment of equipment                                                                                |   |                                                         | --       |                                                                  |   | -- |   |   | 45,622 |   |
| Stock                based compensation and expenses paid with equity                                                          |   |                                                         | --       |                                                                  |   | 52,500 |   |   | 8,633,122 |   |
| Minority                interest in loss of consolidated subsidiary                                                            |   |                                                         | (1,572   | )                                                                     |   | -- |   |   | (83,027 | ) |
| Equity                in earnings of unconsolidated subsidiary                                                                 |   |                                                         | --       |                                                                  |   | -- |   |   | (96,774 | ) |
| Settlement                income relating to stock                                                                             |   |                                                         | --       |                                                                  |   | -- |   |   | (1,504,150 | ) |
| Loss                on termination of interest in unconsolidated subsidiary                                                    |   |                                                         | --       |                                                                  |   | -- |   |   | 1,985,909 |   |
| Changes                in assets and liabilities:                                                                              |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Deferred                charges and other current assets                                                                       |   |                                                         | 3,282    |                                                                  |   | (16,355 | ) |   | 493,434 |   |
| Production                costs                                                                                                |   |                                                         | (89,473  | )                                                                     |   | (25,117 | ) |   | (1,689,246 | ) |
| Accounts                payable and accrued expenses                                                                           |   |                                                         | 35,337   |                                                                  |   | (25,162 | ) |   | 781,437 |   |
| Other                liabilities                                                                                               |   |                                                         | 136,420  |                                                                  |   | 71,850 |   |   | 1,008,968 |   |
| Net                cash and cash equivalents used in operating activities                                                      |   |                                                         | (266,186 | )                                                                     |   | (173,475 | ) |   | (6,743,696 | ) |
|                                                                                                                           |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                                           |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Investment                in intangible assets                                                                                 |   |                                                         | --       |                                                                  |   | -- |   |   | (90,481 | ) |
| Investment                in property and equipment                                                                            |   |                                                         | --       |                                                                  |   | -- |   |   | (68,528 | ) |
| Advance                on production rights                                                                                    |   |                                                         | --       |                                                                  |   | -- |   |   | (337,500 | ) |
| Investment                in subsidiary paid through warrants                                                                  |   |                                                         | --       |                                                                  |   | -- |   |   | (1,850,000 | ) |
| Net                cash and cash equivalents used in investing activities                                                      |   |                                                         | --       |                                                                  |   | -- |   |   | (2,346,509 | ) |
|                                                                                                                           |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Cash                flows from financing activities:                                                                           |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Net                proceeds from issuance of common stock                                                                      |   |                                                         | --       |                                                                  |   | -- |   |   | 4,798,911 |   |
| Proceeds                from investment in subsidiary                                                                          |   |                                                         | --       |                                                                  |   | -- |   |   | 2,477,075 |   |
| Proceeds                from loans                                                                                             |   |                                                         | 170,000  |                                                                  |   | 50,000 |   |   | 1,830,213 |   |
| Advances                from officers and stockholders                                                                         |   |                                                         | --       |                                                                  |   | -- |   |   | 400,954 |   |
| Repayment                of loans                                                                                              |   |                                                         | --       |                                                                  |   | -- |   |   | (379,675 | ) |
| Net                cash and cash equivalents provided by financing activities                                                  |   |                                                         | 170,000  |                                                                  |   | 50,000 |   |   | 9,127,478 |   |
|                                                                                                                           |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                                            |   |                                                         | (96,186  | )                                                                     |   | (123,475 | ) |   | 37,273 |   |
|                                                                                                                           |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Cash                and cash equivalents, Beginning of Period                                                                  |   |                                                         | 133,459  |                                                                  |   | 142,734 |   |   | -- |   |
|                                                                                                                           |   |                                                         |     |                                                                  |   |   |   |   |   |   |
| Cash                and cash equivalents, End of Period                                                                        |   | $                                                            | 37,273   |                                                                  | $      | 19,259 |   | $ | 37,273 |   |

----

| SUPPLEMENTAL                CASH FLOW INFORMATION:                                                                                                        |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Interest                paid                                                                                                                              |   | $      | --     |   | $      | --     |   | $ | -- |   |
|                                                                                                                                                      |   |   |        |   |   |        |   |   |  |   |
| Income                taxes paid                                                                                                                          |   | $      | --     |   | $      | --     |   | $ | -- |   |
|                                                                                                                                                      |   |   |        |   |   |        |   |   |  |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| SCHEDULE                OF NONCASH INVESTING AND FINANCING ACTIVITIES:                                                                                    |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| During                the three months ended December 31, 2005, the Company had the following                non-cash investing and financing activity:   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Debt                discount relating to issuance of warrants and beneficial conversion                of                convertible debentures payable   |   |   |   |   | $      | 47,779 |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| During                the three months ended December 31, 2004, the Company had the following                non-cash investing and financing activities: |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Issuance                of 590,000 shares of common stock to settle bridge notes and accrued                interest                                      |   |   |   |   | $      | 71,775 |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Issuance                of 250,000 shares of common stock and 1,300,000 warrants for prepaid                consulting                                    |   |   |   |   | $      | 52,500 |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Debt                discount relating to issuance of warrants and beneficial conversion                of                convertible debentures payable   |   |   |   |   | $      | 46,040 |   |   |   |   |

----

**NOTE      1 BASIS OF PRESENTATION:**

**NOTE      2 GOING CONCERN**

----

**NOTE      2 GOING CONCERN (CONTINUED)**

**NOTE      3 RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS**

|                               |   | Three                Months EndedDecember                31, 2004 |        |
|------------------------------------|--------|-------------------------------------------------------------------|-------------|
|                               |   | As                Reported                                        |        | As                Restated |   |
|                               |   |                                                              |        |   |   |
| Net                Revenues        |   | $                                                                 | --          |   | $ | -- |   |
| Accumulated                Deficit |   | $                                                                 | (16,404,524 | ) | $ | (15,643,093 | ) |
| Net                Loss            |   | $                                                                 | (337,803    | ) | $ | (570,662 | ) |
| Loss                Per Share      |   | $                                                                 | (.01        | ) | $ | (.01 | ) |
| Total                Assets        |   | $                                                                 | 2,056,589   |   | $ | 68,606 |   |

----

**NOTE      4 LOSS PER COMMON SHARE, BASIC AND DILUTED**

|                                          |   | December                31, |       | December                31, |   |
|-----------------------------------------------|--------|-----------------------------|------------|-----------------------------|--------|
|                                          |   | 2005                        |       | 2004                        |   |
| Stock                Options                  |   |                        | 950,000    |                        |   | 750,000 |   |
| Stock                Warrants                 |   |                        | 16,025,075 |                        |   | 7,455,615 |   |
| Convertible                debt, if converted |   |                        | 19,338,834 |                        |   | 16,875,000 |   |
|                                          |   |                        |       |                        |   |   |   |
| Total                                         |   |                        | 36,313,909 |                        |   | 25,080,615 |   |

**NOTE      5 REVENUE RECOGNITION**

|   | · | Persuasive                evidence of sale or licensing arrangement with customer                exists; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | the                television programming is complete and, in accordance with the terms                of                the arrangement, has been delivered or is available for immediate                and                unconditional delivery; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                license period of the arrangement has begun and customer can begin                its                exploitation, exhibition or sale; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                arrangement fee is fixed or determinable;                and |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | the                collection of arrangement fee is reasonably                assured. |
|--------|--------|----------------------------------------------------------------------------------------|

----

**NOTE      6 PRODUCTION COSTS**

**NOTE      7 STOCK OPTIONS**

|                                            |   | NUMBER                OFOPTIONS |    | WEIGHTEDAVERAGEEXERCISEPRICE |   |
|-------------------------------------------------|--------|---------------------------------|---------|------------------------------|--------|
|                                            |   |                            |    |                         |   |
| Outstanding                at October 1, 2004   |   |                            | 950,000 |                         | $      | .250 |   |
| Granted                                         |   |                            | --      |                         |   | -- |   |
| Exercised                                       |   |                            | --      |                         |   | -- |   |
| Canceled                                        |   |                            | --      |                         |   | -- |   |
| Outstanding                at December 31, 2004 |   |                            | 950,000 |                         | $      | .250 |   |
|                                            |   |                            |    |                         |   |   |   |
| Outstanding                at October 1, 2004   |   |                            | 950,000 |                         | $      | .250 |   |
| Granted                                         |   |                            | --      |                         |   | -- |   |
| Exercised                                       |   |                            | --      |                         |   | -- |   |
| Canceled                                        |   |                            | --      |                         |   | -- |   |
| Outstanding                at December 31, 2004 |   |                            | 950,000 |                         | $      | .250 |   |
|                                            |   |                            |    |                         |   |   |   |
| Exercisable                at December 31, 2005 |   |                            | 950,000 |                         | $      | .250 |   |

----

**NOTE          7 STOCK OPTIONS (CONTINUED)**

|                                 |   | December                  31, |     | December                  31, |   |
|--------------------------------------|--------|-------------------------------|----------|-------------------------------|--------|
|                                 |   | 2005                          |     | 2004                          |   |
|                                 |   |                          |     |                          |   |
| Net                  loss:           |   |                          |     |                          |   |
| As                  reported         |   | $                             | (529,474 | )                             | $      | (570,662 | ) |
| Proforma                             |   | $                             | (532,049 | )                             | $      | (573,223 | ) |
|                                 |   |                          |     |                          |   |   |   |
| Earnings                  Per Share: |   |                          |     |                          |   |   |   |
| As                  reported         |   | $                             | (.01     | )                             | $      | (.01 | ) |
| Proforma                             |   | $                             | (.01     | )                             | $      | (.01 | ) |

**NOTE      8 COMMON STOCK WARRANTS**

|                                            |   | NUMBER                OF WARRANTS |       | WEIGHTED                AVERAGE EXERCISE PRICE |   |
|-------------------------------------------------|--------|-----------------------------------|------------|------------------------------------------------|--------|
|                                            |   |                              |       |                                           |   |
| Outstanding                at October 1, 2004   |   |                              | 10,939,189 |                                           |   | .61 |   |
| Granted                                         |   |                              | 166,667    |                                           |   | .15 |   |
| Exercised                                       |   |                              | --         |                                           |   | -- |   |
| Canceled                or Expired              |   |                              | (3,650,241 | )                                              |   | 1.50 |   |
| Outstanding                at December 31, 2004 |   |                              | 7,455,615  |                                           | $      | .16 |   |
|                                            |   |                              |       |                                           |   |   |   |
| Outstanding                at October 1, 2005   |   |                              | 15,713,075 |                                           |   | .18 |   |
| Granted                                         |   |                              | 312,000    |                                           |   | .13 |   |
| Exercised                                       |   |                              | --         |                                           |   | -- |   |
| Canceled                or Expired              |   |                              | --         |                                           |   | -- |   |
| Outstanding                at December 31, 2005 |   |                              | 16,025,075 |                                           | $      | .18 |   |
|                                            |   |                              |       |                                           |   |   |   |

**NOTE      9 CONVERTIBLE DEBENTURES**

***CONVERTIBLE      DEBENTURES TO RELATED PARTIES***

***CONVERTIBLE          DEBENTURES TO OUTSIDE INVESTORS***

***INTEREST        EXPENSE AND VALUATION***

----

**NOTE          9 CONVERTIBLE DEBENTURES (CONTINUED)**

***INTEREST          EXPENSE AND VALUATION (CONTINUED)***

**NOTE      10 SUBSEQUENT EVENTS**

----

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATIONS**

***OVERVIEW***

***FORWARD-LOOKING      STATEMENTS***

|   | A. | Earthworks                lacks the capital necessary to expand its                operations. |
|--------|----|------------------------------------------------------------------------------------------------|

|   | B. | Earthworks                has only one marketing relationship to date that assures it of                revenue. |
|--------|----|------------------------------------------------------------------------------------------------------------------|

|   | C. | Earthworks                is dependent on the efforts of the current management team to develop                revenue-generating business relationships for the Company. If the                team is                unsuccessful in its efforts, the business could                fail. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | The                entertainment industry is highly competitive, and it is dominated                by a                small number of multinational corporations. We will be able to compete                successfully only if we establish our brand in a niche of the                market. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***RESULTS      OF OPERATIONS***

***THREE      MONTHS ENDED DECEMBER 31, 2005 VS. THREE MONTHS ENDED DECEMBER 31,      2004***

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***PLAN      OF OPERATIONS***

***LIQUIDITY      AND CAPITAL RESOURCES***

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***OFF-BALANCE      SHEET ARRANGEMENTS***

**ITEM      3. CONTROLS AND PROCEDURES**

**PART      II OTHER INFORMATION**

**ITEM        2. UNREGISTERED SALES OF EQUITY SECURITIES**

**ITEM      6. EXHIBITS**

| EXHIBIT                NUMBERREFERENCE | DESCRIPTION                                                           |
|----------------------------------------|-----------------------------------------------------------------------|
| 31a                                    | Rule                13a-14(a) Certification - Chief Executive Officer |
|                                   |                                                                  |
| 31b                                    | Rule                13a-14(b) Certification - Chief Financial Officer |
|                                   |                                                                  |
| 32b                                    | Rule                13a-14(b) Certification - Chief Executive Officer |
|                                   |                                                                  |
| 32b                                    | Rule                13a-14(b) Certification - Chief Financial Officer |
|                                   |                                                                  |

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**SIGNATURES**

| Dated:                February 13, 2006 |   | By:                /s/ Peter                Keefe                                        |
|-----------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |   | Peter                Keefe, CEO/President                                                                                                                                                                                                                                                   |
|                                    |   |                                                                                                                                                                                                                                                                                        |
|                                    |   |                                                                                                                                                                                                                                                                                        |

| Dated:                  February 13, 2006 |   | By:                  /s/ William                  H.                  Campbell                          |
|-------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                      |   | William                  H. Campbell, Chief Financial                  Officer                                                                                                                                                       |

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