----

----

| (MARK              ONE) |   |
|-------------------------|--------|

| /X/ | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| DELAWARE                                                                    | 23-2442288                                             |
|-----------------------------------------------------------------------------|--------------------------------------------------------|
| (State                or other jurisdiction of corporation or organization) | (I.R.S.                Employer Identification Number) |
|                                                                        |                                                   |
| 4                Dutura St., West Palm Beach, FL                            | 33314                                                  |
| (Address                of principal executive offices)                     | (Zip                Code)                              |
|                                                                        |
| (561)                719-9841                                               |
| (Issuer's                Telephone Number)                                  |

----

|                          |                                                                                                                       | PAGE   |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------|--------|
| PART                I         | FINANCIAL                INFORMATION                                                                                       |   |
|                          |                                                                                                                       |   |
|                          | Consolidated                Balance Sheet-June 30,2005                                                                     | 1      |
|                          |                                                                                                                       |   |
|                          | Consolidated                Statements of Operations-Three and Nine Months Ended June 30,                2005              | 2-3    |
|                          |                                                                                                                       |   |
|                          | Consolidated                Statement of Cash Flows-Nine Months Ended June 30,2005                                         | 4      |
|                          |                                                                                                                       |   |
|                          | Notes                to the Consolidated Financial Statements                                                              | 5      |
|                          |                                                                                                                       |   |
|                          | Management’s                Discussion and Analysis of Financial Conditions and Results of                Operations | 10     |
|                          |                                                                                                                       |   |
| PART                II        | OTHER                INFORMATION                                                                                           |   |
|                          |                                                                                                                       |   |
| Item                1.        | Legal                Proceedings                                                                                           | 16     |
|                          |                                                                                                                       |   |
| Item                2.        | Changes                in Securities                                                                                       | 16     |
|                          |                                                                                                                       |   |
| Item                3.        | Defaults                Upon Senior Securities                                                                             | 16     |
|                          |                                                                                                                       |   |
| Item                4.        | Submission                of Matters to a Vote of Security Holders                                                         | 16     |
|                          |                                                                                                                       |   |
| Item                5.        | Other                Information                                                                                           | 16     |
|                          |                                                                                                                       |   |
| Item                6.        | Exhibits                on Reports on Form 8-K                                                                             | 16     |
|                          |                                                                                                                       |   |
| Signature                Page | 17                                                                                                                         |

----

| ASSETS                                                                                                                                                    |   |   |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
| Current                Assets                                                                                                                             |   |   |        |   |
| Cash                and equivalents                                                                                                                       |   | $      | 395,989     |   |
| Other                current assets                                                                                                                       |   |   | 19,842      |   |
| Deferred                production costs                                                                                                                  |   |   | 1,524,590   |   |
| Total                Current Assets                                                                                                                       |   |   | 1,940,421   |   |
|                                                                                                                                                      |   |   |        |   |
| Property                and equipment, net of accumulated depreciation of $383                                                                            |   |   | 767         |   |
|                                                                                                                                                      |   |   |        |   |
| Other                Assets:                                                                                                                              |   |   |        |   |
| Organizational                property rights                                                                                                             |   |   | 2,000,000   |   |
|                                                                                                                                                      |   |   |        |   |
| Total                Other Assets                                                                                                                         |   |   | 2,000,000   |   |
|                                                                                                                                                      |   |   |        |   |
| Total                Assets                                                                                                                               |   | $      | 3,941,188   |   |
|                                                                                                                                                      |   |   |        |   |
|                                                                                                                                                      |   |   |        |   |
| LIABILITIES                AND STOCKHOLDERS’ EQUITY                                                                                                 |   |   |        |   |
| Current                Liabilities:                                                                                                                       |   |   |        |   |
| Accounts                payable and accrued expense                                                                                                       |   | $      | 447,107     |   |
| Promissory                Notes                                                                                                                           |   |   | 86,165      |   |
| Convertible                promissory notes                                                                                                               |   |   | 850,000     |   |
| Convertible                promissory notes-officers                                                                                                      |   |   | 200,000     |   |
|                                                                                                                                                      |   |   |        |   |
| Total                Current Liabilities                                                                                                                  |   |   | 1,583,272   |   |
|                                                                                                                                                      |   |   |        |   |
| Other                liabilities                                                                                                                          |   |   | 161,139     |   |
|                                                                                                                                                      |   |   |        |   |
| Minority                interest in consolidated subsidiary                                                                                               |   |   | 1,003,753   |   |
|                                                                                                                                                      |   |   |        |   |
| Stockholders’                Equity:                                                                                                                |   |   |        |   |
| Common                stock, par value $.0015 per share; authorized 100,000,000 shares,                67,605,894 issued and outstanding                  |   |   | 101,409     |   |
| Convertible                preferred stock, authorized 1,000,000 shares, par value $10.00; no                shares                issued and outstanding |   |   | -           |   |
| Additional                paid in capital                                                                                                                 |   |   | 18,341,072  |   |
| Deficit                accumulated during development stage                                                                                               |   |   | (17,249,457 | ) |
|                                                                                                                                                      |   |   |        |   |
| Total                Stockholders’ Equity                                                                                                           |   |   | 1,193,024   |   |
|                                                                                                                                                      |   |   |        |   |
| Total                Liabilities and Stockholders’ Equity                                                                                           |   | $      | 3,941,188   |   |

----

|                                                                                                                                                      |   | FOR                    THE THREE MONTHS ENDEDJUNE                    30, |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|------------|
|                                                                                                                                                      |   | 2004                                                                     |       | 2005 |   |
|                                                                                                                                                      |   |                                                                     |       |   |   |
| Gross                  Earnings                                                                                                                           |   | $                                                                        | -          |   | $ | - |   |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Costs                  and Expenses:                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Development,                  production and distribution including non-cash related charges                  of $0 and                  $0, respectively |   |                                                                     | 50,594     |   |   | - |   |
| General                  and administrative including non-cash charges of $0 and $0,                  respectively                                        |   |                                                                     | 288,926    |   |   | 333,235 |   |
| Depreciation                  and amortization                                                                                                            |   |                                                                     | 2,025      |   |   | 95 |   |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Total                  Costs and Expenses                                                                                                                 |   |                                                                     | 341,545    |   |   | 333,330 |   |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Loss                  from operations before other expenses and provisions for income                  taxes                                              |   |                                                                     | (341,545   | ) |   | (333,330 | ) |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Other                  Operating Income (Expense):                                                                                                        |   |                                                                     |       |   |   |   |   |
| Interest                  income                                                                                                                          |   |                                                                     | 297        |   |   | 2,744 |   |
| Settlement                  and debt extinguishment income (expense)                                                                                      |   |                                                                     | (15,459    | ) |   | - |   |
| Interest                  expense (net)                                                                                                                   |   |                                                                     | (13,793    | ) |   | (100,296 | ) |
| Minority                  interest in consolidated loss                                                                                                   |   |                                                                     | -          |   |   | 9,101 |   |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Total                  Other Operating Income (Expense)                                                                                                   |   |                                                                     | (28,955    | ) |   | (88,451 | ) |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Operating                  loss before income taxes                                                                                                       |   |                                                                     | (370,500   | ) |   | (421,781 | ) |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Provision                  for income taxes                                                                                                               |   |                                                                     | -          |   |   | - |   |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Net                  loss                                                                                                                                 |   | $                                                                        | (370,500   | ) | $ | (421,781 | ) |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Loss                  per common share, basic and diluted                                                                                                 |   | $                                                                        | (.006      | ) | $ | (.006 | )  |
|                                                                                                                                                      |   |                                                                     |       |   |   |   |   |
| Weighted                  average common shares outstanding, basic and diluted                                                                            |   |                                                                     | 62,518,617 |   |   | 65,340,846 |   |

----

|                                                                                                                                                      |   | FOR                THE NINE MONTHS ENDED JUNE 30, |       | FROM                APRIL 1, 1998(DATE                OF INCEPTION)TO                JUNE 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|------------|-----------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                      |   | 2004                                              |       | 2005                                                                                          |   | 2005 |   |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |
| Gross                Earnings                                                                                                                             |   | $                                                 | -          |                                                                                          | $      | 49,637 |   | $ | 49,637 |   |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Costs                and Expenses:                                                                                                                        |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Development,                production and distribution including non-cash related charges of                $0,                and $0, respectively |   |                                              | 50,594     |                                                                                          |   | 253,130 |   |   | 2,780,875 |   |
| General                and administrative including non-cash charges of $0 and $0,                respectively                                       |   |                                              | 794,759    |                                                                                          |   | 777,260 |   |   | 11,824,467 |   |
| Depreciation                and amortization                                                                                                              |   |                                              | 10,599     |                                                                                          |   | 287 |   |   | 139,380 |   |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Total                Costs and Expenses                                                                                                                   |   |                                              | 855,952    |                                                                                          |   | 1,030,677 |   |   | 14,744,722 |   |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Loss                from operations before other expenses and provisions for income                taxes                                                  |   |                                              | (855,952   | )                                                                                             |   | (981,040 | ) |   | (14,695,085 | ) |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Other                Operating Income (Expense):                                                                                                          |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Interest                income                                                                                                                            |   |                                              | 297        |                                                                                          |   | 7,736 |   |   | 10,477 |   |
| Settlement                and debt extinguishment income (expense)                                                                                        |   |                                              | (65,323    | )                                                                                             |   | (49,200 | ) |   | 847,059 |   |
| Interest                expense (net)                                                                                                                     |   |                                              | (18,794    | )                                                                                             |   | (231,876 | ) |   | (1,432,936 | ) |
| Minority                interest in consolidated loss                                                                                                     |   |                                              | -          |                                                                                          |   | 71,744 |   |   | 71,744 |   |
| Equity                in earnings of unconsolidated subsidiary                                                                                            |   |                                              | -          |                                                                                          |   | - |   |   | 96,774 |   |
| Loss                from termination of interest in unconsolidated subsidiary                                                                             |   |                                              | -          |                                                                                          |   | - |   |   | (1,985,901 | ) |
| Impairment                loss                                                                                                                            |   |                                              | -          |                                                                                          |   | - |   |   | (161,589 | ) |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Total                Other Operating Income (Expense)                                                                                                     |   |                                              | (83,820    | )                                                                                             |   | (201,596 | ) |   | (2,554,372 | ) |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Operating                loss before income taxes                                                                                                         |   |                                              | (939,772   | )                                                                                             |   | (1,182,636 | ) |   | (17,249,457 | ) |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Provision                for income taxes                                                                                                                 |   |                                              | -          |                                                                                          |   | - |   |   | - |   |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Net                loss                                                                                                                                   |   | $                                                 | (939,772   | )                                                                                             | $      | (1,182,636 | ) | $ | (17,249,457 | ) |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Loss                per common share, basic and diluted                                                                                                   |   | $                                                 | (.017      | )                                                                                             | $      | (.018 | ) |   |   |   |
|                                                                                                                                                      |   |                                              |       |                                                                                          |   |   |   |   |   |   |
| Weighted                average common shares outstanding, basic and diluted                                                                              |   |                                              | 54,293,395 |                                                                                          |   | 64,531,017 |   |   |   |   |

----

|                                                                                                      |   | FOR                THE NINE MONTHS ENDEDJUNE                30, |     | FROM                APRIL 1, 1998(DATE                OF INCEPTION) TOJUNE                30,  |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|----------|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   | 2004                                                            |     | 2005                                                                                                |   | 2005 |   |
| Cash                flows from operating activities:                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Net                Loss                                                                                   |   | $                                                               | (939,772 | )                                                                                                   | $      | (1,182,636 | ) | $ | (17,249,457 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Depreciation                and amortization                                                              |   |                                                            | 10,599   |                                                                                                |   | 287 |   |   | 139,380 |   |
| Interest                expense paid with equity                                                          |   |                                                            | -        |                                                                                                |   | 152,312 |   |   | 169,812 |   |
| Loan                fees                                                                                  |   |                                                            | -        |                                                                                                |   | - |   |   | 25,000 |   |
| Loss                on abandonment of equipment                                                           |   |                                                            | -        |                                                                                                |   | - |   |   | 39,547 |   |
| Stock                based compensation and expenses paid by stock                                        |   |                                                            | 342,002  |                                                                                                |   | 86,294 |   |   | 9,774,697 |   |
| Minority                interest in consolidated loss                                                     |   |                                                            | -        |                                                                                                |   | (71,744 | ) |   | (71,744 | ) |
| Equity                in earnings of unconsolidated subsidiary                                            |   |                                                            | -        |                                                                                                |   | - |   |   | (96,774 | ) |
| Settlement                (income) expense relating to stock                                              |   |                                                            | 27,400   |                                                                                                |   | 49,200 |   |   | (1,317,169 | ) |
| Loss                on termination of interest in unconsolidated subsidiary                               |   |                                                            | -        |                                                                                                |   | - |   |   | 1,985,909 |   |
| Changes                in assets and liabilities:                                                         |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Deferred                charges and other current assets                                                  |   |                                                            | (55,016  | )                                                                                                   |   | (1,524,566 | ) |   | (921,822 | ) |
| Other                liabilities                                                                          |   |                                                            | (202,025 | )                                                                                                   |   | - |   |   | 447,727 |   |
| Accounts                payable and accrued expenses                                                      |   |                                                            | 73,003   |                                                                                                |   | 262,099 |   |   | 981,519 |   |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Net                cash used in operating activities                                                      |   |                                                            | (743,809 | )                                                                                                   |   | (2,228,754 | ) |   | (6,093,375 | ) |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Investment                in intangible assets                                                            |   |                                                            | -        |                                                                                                |   | - |   |   | (90,481 | ) |
| Investment                in property and equipment                                                       |   |                                                            | (1,150   | )                                                                                                   |   | - |   |   | (68,528 | ) |
| Advance                on production rights                                                               |   |                                                            | -        |                                                                                                |   | - |   |   | (337,500 | ) |
| Investment                in MPI                                                                          |   |                                                            | -        |                                                                                                |   | - |   |   | (1,850,000 | ) |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Net                cash used in investing activities                                                      |   |                                                            | (1,150   | )                                                                                                   |   | - |   |   | (2,346,509 | ) |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Cash                flows from financing activities:                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Net                proceeds from issuance of common stock                                                 |   |                                                            | 179,730  |                                                                                                |   | - |   |   | 4,803,911 |   |
| Cash                investment in LLC Membership                                                          |   |                                                            | -        |                                                                                                |   | 2,491,008 |   |   | 2,491,008 |   |
| Proceeds                from loans                                                                        |   |                                                            | 800,000  |                                                                                                |   | 50,000 |   |   | 1,500,213 |   |
| Advances                from officers and stockholders                                                    |   |                                                            | -        |                                                                                                |   | (59,000 | ) |   | 341,954 |   |
| Repayment                of loans                                                                         |   |                                                            | (2,500   | )                                                                                                   |   | - |   |   | (301,213 | ) |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Net                cash provided by financing activities                                                  |   |                                                            | 977,230  |                                                                                                |   | 2,482,008 |   |   | 8,835,873 |   |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Net                increase in cash and cash equivalents                                                  |   |                                                            | 232,271  |                                                                                                |   | 253,254 |   |   | 395,989 |   |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Cash                and cash equivalents, Beginning of Period                                             |   |                                                            | 86,316   |                                                                                                |   | 142,735 |   |   | - |   |
|                                                                                                      |   |                                                            |     |                                                                                                |   |   |   |   |   |   |
| Cash                and cash equivalents, End of Period                                                   |   | $                                                               | 318,587  |                                                                                                | $      | 395,989 |   | $ | 395,989 |   |

----

| (1) | Satisfy                its current obligations, |
|-----|-------------------------------------------------|

| (2) | Continue                its development of properties and projects, and |
|-----|-------------------------------------------------------------------------|

| (3) | Successfully                implement its plans to market the properties and                projects. |
|-----|-------------------------------------------------------------------------------------------------------|

| (1) | The                Company presently has ongoing negotiations regarding financing                alternatives. The Company also plans to/and has been able to settle                many                prior obligations with equity and extended payment terms, and partial                payments. The Company received bridge financing of $800,000 during                the                fiscal year ended September 30, 2004, and $50,000 during the quarter                ended                December 2004, from private investors. The Company will now focus                on the                next phase of its financing initiative, which is to further fund                the                production of its existing entertainment properties. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | In                addition to the above financing activities, the following business                initiatives are also ongoing and are expected to provide additional                working capital to the Company: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | On                December 31, 2003, the Company’s Board of Directors approved an agreement                with Peter Keefe, the Company’s president, pursuant to a deal memorandum                dated December 1, 2003, which was intended to be binding and subject                to                definitive agreements whereby in exchange for the issuance of 10,000,000                restricted shares of the Company’s common stock; based upon the Company’s                share price as of December 1, 2003; which was $.20, or $2,000,000,                to                acquire the rights to certain entertainment properties. On January                20,                2004, the Company executed a definitive agreement and acquired the                rights                to certain properties, including direct profit participation, sales                and                marketing rights, merchandise licensing rights, home video distribution                rights and television distribution rights in connection with the                Nine Dog                and Z-Force animated show                properties. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (B) | The                Company has established a platform to launch its properties and products                in the global television, home video/DVD and merchandise licensing                marketplace. The Company is currently marketing seven animated                entertainment properties including the Nine Dog Christmas, Corneil&                Bernie, Kiddo the Supertruck, The Little Reindeer,  The Plonsters,                Little Suzy’s Zoo, and Z-Force. The Company is also in negotiations to                secure other properties that it has determined to have a high potential                for success. The Company has valuable and unique business relationships                with leading production, distribution and licensing groups in the                global                entertainment market. The Company has built working alliances with                several                outside production studios and talent pools and the Company has identified                several projects it plans to implement on a property by property                basis                during fiscal 2005 and beyond. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | In                January                2005 the Company’s majority owned subsidiary, Z-Force Enterprises, LLC,                received approximately $2.25 million, net of transaction costs, to                provide                funding for the production of the initial episodes of its Z-Force                animated                children’s television series. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The                Company has begun the process of a private placement of $2,000,000                in                Senior Secured Convertible Notes. The notes carry interest at 8%                per                annum, compounded daily, and convert into shares of common stock                at $.20                per share. The private placement is expected to occur during the                fourth                quarter ending September 2005. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                        |   | FOR                THE NINE MONTHSENDED                JUNE 30, |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|-----------|
|                                                                                                                                                                                                        |   | 2004                                                            |      | 2005 |   |
|                                                                                                                                                                                                        |   |                                                            |      |   |   |
| Issuance                of 200,000 and 590,000 shares of common stock for repayment of a                defaulted                notes payable and accrued interest                                         |   | $                                                               | 40,334    |   | $ | 123,900 |   |
|                                                                                                                                                                                                        |   |                                                            |      |   |   |   |   |
| Issuance                of 500,000 shares of common stock to two officers to settle unpaid                expenses and compensation due from a prior settlement                                             |   | $                                                               | 103,196   |   | $ | - |   |
|                                                                                                                                                                                                        |   |                                                            |      |   |   |   |   |
| Issuance                of 10,000,000 shares of common stock to Company president for acquisition                of rights to certain entertainment properties                                              |   | $                                                               | 2,000,000 |   | $ | - |   |
|                                                                                                                                                                                                        |   |                                                            |      |   |   |   |   |
| Issuance                of 793,531 shares for exercise of warrants previously outstanding                in                exchange for a corresponding offset to additional paid in                capital |   | $                                                               | -         |   | $ | 197,633 |   |
|                                                                                                                                                                                                        |   |                                                            |      |   |   |   |   |
| Issuance                of 300,000 shares of common stock to investors to convert bridge                notes and                accrued interest                                                           |   | $                                                               | 75,000    |   | $ | - |   |
|                                                                                                                                                                                                        |   |                                                            |      |   |   |   |   |
| Issuance                of 877,625 shares of common stock in conjunction with a settlement                agreement                                                                                         |   | $                                                               | -         |   | $ | 78,986 |   |

----

----

----

| ITEM                6. | MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF                OPERATIONS. |
|------------------------|-------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Rights                Acquired Allocation                                                                                                                                                          |   | Property                Name     | $      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                                                                                                               |   |                             |   |
| Profit                Participation Ownership (originally 45%)                                                                                                                                     |   | Z-Force                          | 42.5%  |
|                                                                                                                                                                                               |   |                             |   |
| Global                Management & Control of TV & Home Video/DVD Sales, Toys and                Merchandise Licensing, Distribution, Production and all Related                Activities |   | Z-Force                          | 100%   |
|                                                                                                                                                                                               |   |                             |   |
| TOTAL                Z-FORCE $ ALLOCATION                                                                                                                                                          |   | $1,700,000                       |   |
|                                                                                                                                                                                               |   |                             |   |
| Gross                Royalty Revenue from all World Wide Merchandise Licensing                Activities                                                                                           |   | Nine                Dog Property | 10%    |
|                                                                                                                                                                                               |   |                             |   |
| Gross                Royalty Revenue from all Toy & Licensing Agreements negotiated by                Earthworks Entertainment, Inc.                                                           |   | Nine                Dog Property | 25%    |
|                                                                                                                                                                                               |   |                             |   |
| Gross                Royalty Revenue World Wide Home Video/DVD Sales                                                                                                                               |   | Nine                Dog Property | 10%    |
|                                                                                                                                                                                               |   |                             |   |
| TOTAL                NINE DOG $ ALLOCATION                                                                                                                                                         |   | 300,000                          |   |
|                                                                                                                                                                                               |   |                             |   |
| Total                                                                                                                                                                                              |   | $2,000,000                       |   |

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|   | Television                (pay, free, cable & satellite) | School                Supplies                                               |   |
|--------|--------------------------------------------------------------|------------------------------------------------------------------------------|--------|
|   | Home                Video/DVD                                | Educational                Licensing                                         |   |
|   | Merchandise                Licensing                         | Music                & Book Publishing                                   |   |
|   | Toys                & Video Games                        | Direct                Marketing (to retail chains) & through catalogues) |   |
|   | Apparel                                                      |                                                                         |   |
|   | Theme                Park Licensing                          | Internet                Applications                                         |   |
|   | Fast                Food Promotions                          | Gifts                & Novelties                                         |   |

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| (1) | Satisfy                its current obligations, |
|-----|-------------------------------------------------|

| (2) | Continue                its development of properties and projects,                and |
|-----|----------------------------------------------------------------------------------------|

| (3) | Successfully                implement its plans to market the properties and                projects. |
|-----|-------------------------------------------------------------------------------------------------------|

| (1) | The                Company has been able to settle many prior obligations with equity,                extended payment terms, and partial payments. The Company plans to                continue to settle its prior                obligations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | During                the fiscal year ended September 30, 2004, the Company received $800,000                and during the quarter ended December 2004, $50,000, in bridge financing                from private investors. The Company will now focus on the next phase                of                its financing initiative, which is to further fund the production                of its                existing entertainment properties. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The                Company has begun the process of a private placement of $2,000,000                in                Senior Secured Convertible Notes. The notes carry interest at 8%                per                annum, compounded daily, and convert into shares of common stock                at $.20                per share. The private placement is expected to occur during the                fourth                quarter ending September 2005. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | In                addition to the above financing activities, the following business                initiatives are ongoing and are expected to provide additional working                capital to the Company: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | On                December 31, 2003, the Company’s Board of Directors approved an agreement                with Peter Keefe, the Company’s president, pursuant to a deal memorandum                dated December 1, 2003, which was intended to be binding and subject                to                definitive agreements whereby in exchange for the issuance of 10,000,000                restricted shares of the Company’s common stock; based upon the Company’s                share price as of December 1, 2003; which was $.20, or $2,000,000,                to                acquire the rights to certain entertainment properties. On January                20,                2004, the Company executed a definitive agreement and acquired the                rights                to certain properties, including direct profit participation, sales                and                marketing rights, merchandise licensing rights, home video distribution                and television distribution rights in connection with the Nine Dog                and                Z-Force animated show properties. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | The                Company has established a platform to launch its properties and products                in the global television, home video/DVD and merchandise licensing                marketplace. The Company is currently marketing seven animated                entertainment properties including the Nine Dog Christmas, Corneil&                Bernie, Kiddo the Supertruck, The Little Reindeer, The Plonsters,                Little Suzy’s Zoo, and Z-Force. The Company is also in negotiations to                secure other properties that it has determined to have a high potential                for success. The Company also has valuable and unique business                relationships with leading production, distribution and licensing                groups                in the global entertainment market. The Company has built working                alliances with several outside production studios and talent pools                and the                Company has identified several projects that it plans to develop                on a                property by property basis during fiscal 2006 and                beyond. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5) | In                January 2005, the Company’s majority owned subsidiary, Z-Force                Enterprises, LLC, received approximately $2.25 million, net of transaction                costs, to provide funding for the production of the initial episodes                of                its Z-Force animated children’s television series. Z-Force Enterprises,                LLC holds the Company’s interest in the Z-Force                project. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As                a result of the aforementioned funding, the Company’s profit participation                in the project decreased from 45% to 42.5%, when taking into account                profit participation with Z-Force Enterprises, LLC minority members                of                approximately 21.2% and other co-participants. The Company’s interest in                the licensing rights representation and management remains at                100%. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM                  3. | CONTROLS                  AND PROCEDURES |
|--------------------------|------------------------------------------|

| ITEM                    1.  | LEGAL                    PROCEEDINGS. |
|----------------------------------|---------------------------------------|

| ITEM                        2.  | CHANGES                        IN SECURITIES. |
|--------------------------------------|-----------------------------------------------|

| ITEM                            3. | DEFAULTS                                UPON SENIOR SECURITIES. |
|------------------------------------|-----------------------------------------------------------------|

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

| ITEM                                    5. | OTHER                                    INFORMATION. |
|--------------------------------------------|-------------------------------------------------------|

| ITEM                                        6. | EXHIBITS                                        AND REPORTS ON FORM 8-K. |
|------------------------------------------------|--------------------------------------------------------------------------|

|                          A. | Exhibit                31.1a 31.2 32.1 32.2 - Officer                Certifications |
|---------------------------------------------------------------------|-------------------------------------------------------------------------------------|

|                        B. | Form                8-K Regarding Event Dated December 29,                2004. |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------|

----

| Dated:                August 10, 2005 |                                                                        |
|---------------------------------------|-----------------------------------------------------------------------------|
|                                  |                                                                        |
|                                  | By:/s/                PETER KEEFE        |
|                                  |                      Peter Keefe                   |

| NAME                                                                                                                                                                                             | TITLE                                                                                         | DATE                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                                                                                             |                                                                                          |                           |
| By:/s/                PETER                KEEFE                         | CEO,                President                                                                 | August                10, 2005 |
| Peter                Keefe                                                                                                                                                                       |                                                                                          |                           |
|                                                                                                                                                                                             |                                                                                          |                           |
| By:/s/                WILLIAM H. CAMPBELL      William                H. Campbell                                                                                  | Acting                Chief Financial Officer, Corporate                  Secretary, Director | August                10, 2005 |
|                                                                                                                                                                                             |                                                                                          |                           |
|                                                                                                                                                                                             |                                                                                          |                           |
| By:                /s/ CATHERINE MALATESTA                                                                                                                                        | Director                                                                                      | August                10, 2005 |
| Catherine                Malatesta                                                                                                                                                               |                                                                                          |                           |

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