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

                                   FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the quarter ended July 31, 2006

                                       OR

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

    For the transition period from __________ to ______________

                        Commission File Number 333-134990


                          POINTSTAR ENTERTAINMENT CORP.
             (Exact name of registrant as specified in its charter)


         Nevada                                                  98-0494003
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


Loft Office Building 3, Suite # 104, P.O. Box 500449 Dubai, United Arab Emirates
               (Address of principal executive offices) (Zip Code)


     Registrant's telephone number, including area code: 011-971-4-367-1342

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

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

Number of shares  outstanding  of the  registrant's  class of common stock as of
September 5, 2006: 4,000,000

Authorized share capital of the registrant: 25,000,000 common shares , par value
of $0.001

The Company recorded $nil revenue for the quarter ended July 31, 2006.
<PAGE>
                           FORWARD-LOOKING STATEMENTS

THIS QUARTERLY REPORT ON FORM 10-QSB CONTAINS PREDICTIONS, PROJECTIONS AND OTHER
STATEMENTS ABOUT THE FUTURE THAT ARE INTENDED TO BE "FORWARD-LOOKING STATEMENTS"
WITHIN THE MEANING OF SECTION 21E OF THE  SECURITIES  EXCHANGE  ACT OF 1934,  AS
AMENDED (COLLECTIVELY, "FORWARD-LOOKING STATEMENTS"). FORWARD-LOOKING STATEMENTS
INVOLVE  RISKS AND  UNCERTAINTIES.  A NUMBER OF  IMPORTANT  FACTORS  COULD CAUSE
ACTUAL  RESULTS  TO  DIFFER   MATERIALLY  FROM  THOSE  IN  THE   FORWARD-LOOKING
STATEMENTS. IN ASSESSING FORWARD-LOOKING  STATEMENTS CONTAINED IN THIS QUARTERLY
REPORT ON FORM  10-QSB,  READERS  ARE  URGED TO READ  CAREFULLY  ALL  CAUTIONARY
STATEMENTS  - INCLUDING  THOSE  CONTAINED  IN OTHER  SECTIONS OF THIS  QUARTERLY
REPORT ON FORM 10-QSB.  AMONG SAID RISKS AND  UNCERTAINTIES IS THE RISK THAT THE
COMPANY WILL NOT SUCCESSFULLY  EXECUTE ITS BUSINESS PLAN, THAT ITS MANAGEMENT IS
ADEQUATE TO CARRY OUT ITS BUSINESS PLAN AND THAT THERE WILL BE ADEQUATE  CAPITAL
OR THEY MAY BE UNSUCCESSUFL FOR TECHNICAL, ECONOMIC OR OTHER REASONS.

                         PART I - FINANCIAL INFORMATION


ITEM 1.   FINANCIAL STATEMENTS

                                                                  Page Number
                                                                  -----------

Balance Sheets......................................................   3

Statements of Operations............................................   4

Statement of Stockholder's Equity...................................   5

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

Notes to the Financial Statements...................................   7

                                       2
<PAGE>
                          POINTSTAR ENTERTAINMENT CORP.
                          (A Development Stage Company)

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                         July 31, 2006      April 30, 2006
                                                         -------------      --------------
                                                           (unaudited)
<S>                                                         <C>                <C>
ASSETS

Current assets
  Cash and bank accounts                                    $  2,744           $ 10,923
                                                            --------           --------
      Total current assets                                     2,744             10,923

Total assets                                                $  2,744           $ 10,923
                                                            ========           ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable                                          $  1,149           $     --
                                                            --------           --------

      Total liabilities                                        1,149                 --
                                                            --------           --------
Stockholders' equity (Note 4, 5)
  Authorized:
    25,000,000 common shares
    25,000,000 preferred shares
    Par value $0.001
  Issued and outstanding:
    4,000,000 common shares                                    4,000              4,000
  Additional paid-in capital                                  11,000             11,000
  Deficit accumulated during the development stage           (13,405)            (4,077)
                                                            --------           --------
      Total stockholders' equity                               1,595             10,923
                                                            --------           --------

Total liabilities and stockholders' equity                  $  2,744           $ 10,923
                                                            ========           ========
</TABLE>

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

                                       3
<PAGE>
                          POINTSTAR ENTERTAINMENT CORP.
                          (A Development Stage Company)

                             STATEMENT OF OPERATIONS
                                   (UNAUDITED)


                                                                  Cumulative
                                                                 Amounts From
                                                                   Date of
                                                               Incorporation on
                                            3 Months Ended      March 8 2006 to
                                             July 31, 2006       July 31, 2006
                                             -------------       -------------

REVENUE                                       $        --         $        --
                                              -----------         -----------

OPERATING EXPENSES
  General & Administrative                            464               2,683
  Legal and Accounting Fees                         8,200               8,200
  Organization                                         --               1,858
  Website                                             664                 664
                                              -----------         -----------

Loss before income taxes                           (9,328)            (13,405)

Provision for income taxes                             --                  --
                                              -----------         -----------

Net loss                                      $    (9,328)        $   (13,405)
                                              ===========         ===========
Basic and diluted loss per Common share (1)

Weighted average number of common shares
 outstanding (Note 4)                           4,000,000
                                              ===========

----------
(1) Less than $0.01


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

                                       4
<PAGE>
                          POINTSTAR ENTERTAINMENT CORP.
                          (A Development Stage Company)

                        STATEMENT OF STOCKHOLDERS' EQUITY
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                              Deficit
                                                                            Accumulated
                                          Common Stock        Additional     During the       Total
                                       -------------------      Paid in     Development   Stockholders'
                                       Shares       Amount      Capital        Stage         Equity
                                       ------       ------      -------        -----         ------
<S>                                 <C>           <C>          <C>            <C>            <C>
Inception, March 8, 2006                    --      $   --      $    --      $     --       $     --

Initial capitalization
  Sale of common stock               4,000,000       4,000       11,000                       15,000

Net loss for the year                       --          --           --        (4,077)        (4,077)
                                     ---------      ------      -------      --------       --------
Balance April 30, 2006               4,000,000       4,000       11,000        (4,077)        10,923

Net loss for the 3 months ended
July 31, 2006                               --          --           --        (9,328)        (9,328)
                                     ---------      ------      -------      --------       --------
Balance July 31, 2006                4,000,000      $4,000      $11,000      $(13,405)      $  1,595
                                     =========      ======      =======      ========       ========
</TABLE>

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

                                       5
<PAGE>
                          POINTSTAR ENTERTAINMENT CORP.
                          (A Development Stage Company)
                             STATEMENT OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                               Cumulative
                                                                              Amounts From
                                                                                Date of
                                                                            Incorporation on
                                                          3 Months Ended    March 8, 2006 to
                                                          July 31, 2006      July 31, 2006
                                                          -------------      -------------
<S>                                                          <C>                <C>
CASH FLOWS USED IN OPERATING ACTIVITIES
  Net loss for the period                                    $ (9,328)          $(13,405)
  Adjustments to Reconcile Net Loss to Net Cash
   Used by Operating Activities
     Increase in accounts payable                               1,149              1,149
                                                             --------           --------

Net cash used in operating activities                          (8,179)           (12,256)
                                                             --------           --------

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of common stock                           --             15,000
                                                             --------           --------

Net cash provided by financing activities                          --             15,000
                                                             --------           --------

CASH FLOWS USED IN INVESTING ACTIVITIES                            --                 --
                                                             --------           --------

Change in cash during the period                               (8,179)             2,744


Cash, beginning of the period                                  10,923                 --
                                                             --------           --------

Cash, end of the period                                      $  2,744           $  2,744
                                                             ========           ========

Supplemental disclosure with respect to cash flows:
  Cash paid for income taxes                                 $     --           $     --
  Cash paid for interest                                     $     --           $     --
</TABLE>

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

                                       6
<PAGE>
                          POINTSTAR ENTERTAINMENT CORP.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

                                  July 31, 2006


NOTE 1. GENERAL ORGANIZATION AND BUSINESS

The Company was originally incorporated under the laws of the state of Nevada on
March 8, 2006. The Company has limited  operations  and in accordance  with SFAS
#7, is  considered a  development  stage  company,  and has had no revenues from
operations to date.

Initial operations have included capital formation,  organization, target market
identification  and  marketing  plans.  Management  is  planning  to  conduct  a
registered  offering of the Company's common stock, and if successful,  start an
ethnic and  cultural  interest  video and  television  programming  distribution
business over the internet.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES

The  Company's  only  significant  asset at July 31, 2006 is cash.  The relevant
accounting  policies and procedures are listed below.  The company has adopted a
April 30 year end.

ACCOUNTING BASIS

The basis is generally accepted accounting principles.

EARNINGS PER SHARE

In February  1997,  the FASB issued SFAS No. 128,  "Earnings  Per Share",  which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities  with  publicly  held common  stock.  SFAS No. 128
supersedes the provisions of APB No. 15, and requires the  presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective its inception.

The basic earnings  (loss) per share is calculated by dividing the Company's net
income available to common shareholders by the weighted average number of common
shares during the year. The diluted  earnings  (loss) per share is calculated by
dividing the Company's net income (loss) available to common shareholders by the
diluted  weighted  average  number of shares  outstanding  during the year.  The
diluted  weighted  average  number of shares  outstanding  is the basic weighted
number  of  shares  adjusted  as of the  first of the  year for any  potentially
dilutive debt or equity.

The Company has not issued any options or warrants or similar  securities  since
inception.

                                       7
<PAGE>
                          POINTSTAR ENTERTAINMENT CORP.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

                                  July 31, 2006


NOTE 2. (CONTINUED)

DIVIDENDS

The Company has not yet adopted any policy  regarding  payment of dividends.  No
dividends have been paid during the periods shown.

CASH EQUIVALENTS

The Company  considers  all highly  liquid  investments  with  maturity of three
months or less when purchased to be cash equivalents.

INCOME TAXES

Income taxes are provided in accordance  with Statement of Financial  accounting
Standards No. 109 (SFAS 109),  Accounting for Income Taxes. A deferred tax asset
or liability is recorded for all temporary differences between financial and tax
reporting and net operating loss  carryforwards.  Deferred tax expense (benefit)
results  from  the net  change  during  the  year of  deferred  tax  assets  and
liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management,  it is more likely than not that some portion of all of the deferred
tax assets will be realized.  Deferred tax assets and  liabilities  are adjusted
for the effects of changes in tax laws and rates on the date of enactment.

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.

                                       8
<PAGE>
                          POINTSTAR ENTERTAINMENT CORP.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

                                  July 31, 2006


NOTE 3. GOING CONCERN

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue as a going  concern.  The Company has net losses for the
period  from  inception  to July 31,  2006 of  $13,405.  This  condition  raises
substantial  doubt about the Company's  ability to continue as a going  concern.
The  Company's  continuation  as a going  concern is dependent on its ability to
meet its  obligations,  to obtain  additional  financing  as may be required and
ultimately to attain profitability.  The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

Management is planning to raise  additional  funds  through an equity  offering.
There is no guarantee that the Company will be successful in these efforts.

NOTE 4. STOCKHOLDERS' EQUITY

AUTHORIZED

The Company is authorized to issue 25,000,000  shares of $0.001 par value common
stock and  25,000,000  shares of $0.001 par value  preferred  stock.  All common
stock shares have equal voting rights,  are non-assessable and have one vote per
share. Voting rights are not cumulative and, therefore, the holders of more than
50% of the  common  stock  could,  if they  choose  to do so,  elect  all of the
directors of the Company. The preferred shares may be issued in series, with the
powers,  rights and limitations of the preferred  shares to be determined by the
Board.

ISSUED AND OUTSTANDING

On March 8, 2006 (inception),  the Company issued 4,000,000 shares of its common
stock to its Directors for cash of $15,000. See Note 5.

NOTE 5. RELATED PARTY TRANSACTIONS

The  Company's  neither  owns nor  leases  any real or  personal  property.  The
Company's  Directors  provides  office  space free of charge.  The  officers and
directors of the Company are involved in other  business  activities and may, in
the future,  become  involved  in other  business  opportunities.  If a specific

                                       9
<PAGE>
                          POINTSTAR ENTERTAINMENT CORP.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

                                  July 31, 2006


NOTE 5. (CONTINUED)

business  opportunity  becomes  available,  such  persons may face a conflict in
selecting  between the Company and their other business  interests.  The Company
has not formulated a policy for the resolution of such conflicts.

On March 8, 2006 (inception),  the Company issued 4,000,000 shares of its common
stock to its Directors for cash of $15,000. See Note 4.

NOTE 6. INCOME TAXES

Net  deferred  tax  assets  are $nil.  Realization  of  deferred  tax  assets is
dependent  upon  sufficient   future  taxable  income  during  the  period  that
deductible temporary  differences and carryforwards are expected to be available
to reduce taxable  income.  As the achievement of required future taxable income
is uncertain, the Company recorded a valuation allowance.

NOTE 7. NET OPERATING LOSSES

As of April 30,  2006,  the Company has a net  operating  loss  carryforward  of
approximately  $2,200,  which  will  expire 20 years  from the date the loss was
incurred.  The Company has also additionally  incurred an interim loss of $9,328
for the three months ended July 31, 2006.

NOTE 8. OPERATING LEASES AND OTHER COMMITMENTS:

The  Company   currently  has  no  operating  lease  commitments  or  any  other
commitments.

                                       10
<PAGE>
ITEM 2. MANAGEMENT'S PLAN OF OPERATION

Pointstar  Entertainment  Corp.  (referred to in this prospectus as "Pointstar",
"us", "we" and "our") was incorporated on March 8, 2006, in the State of Nevada.
Pointstar'  principal  executive  offices are located at Loft Office Building 3,
Suite # 104,P.O. Box 500449,  Dubai, United Arab Emirates.  Our telephone number
is 011-971-4-367-1342.

We are a development  stage company.  We have commenced very limited  operations
and we currently have no business revenue and no significant  assets.  There can
be no assurance that we will generate revenues in the future, or that we will be
able to operate profitably in the future, if at all. We have incurred net losses
in  each  fiscal  year  since  inception  of  our  operations.   Since  becoming
incorporated,  we have not made any significant  purchase or sale of assets, nor
have we been  involved  in any  mergers,  acquisitions  or  consolidations.  Our
company has never declared bankruptcy, it has never been in receivership, and it
has never been involved in any legal action or proceedings.

On June 30, 2006 our registration statement on Form SB-2 was declared effective,
enabling a  registered  offering  of a minimum of  500,000  common  shares and a
maximum of 700,000 shares at a price of $0.10 per share.  Prior to the offering,
our principal activities consisted only of initial organizational activities and
the  issuance  of  common  shares to our  original  affiliate  shareholders.  At
present,  we have not accepted any  subscriptions  under the  offering,  and our
common shares are not posted for trading or listed on any  exchange.  All of our
4,000,000  outstanding  common  shares are  currently  held by our  officers and
directors.

Since  incorporation,  we have  not made any  significant  purchases  or sale of
assets,   nor  have  we  been   involved  in  any   mergers,   acquisitions   or
consolidations.  Pointstar  has never  declared  bankruptcy,  has never  been in
receivership, and has never been involved in any legal action or proceedings.

Subsequent  to our  incorporation,  we have been in the process of  establishing
ourselves as a company that seeks to obtain  distribution  rights for television
programming  and movies from film studios,  television  network  companies,  and
independent  production houses. We plan to focus on securing distribution rights
for ethnic and  special  interest  programming  and movies.  This would  include
special  interest  programming  from smaller studios in North America and Europe
and programming  for Arabic,  Hindi or Asian ethnic  communities.  We would then
distribute  these  movies and  programs to digital  television  and pay per view
service  providers,  who in turn  distribute  their  programming  offerings over
Internet networks to their own subscribers.

We will either obtain these programs and movies in digital  format  suitable for
storage on computers and transmission  over the internet.  If we are not able to
obtain the programs and movies in an appropriate  format, we will undertake this
task with our own equipment. We will then store this media on a computer storage
network.  We plan to rent space on a third party shared storage  network located
in a data center (a data  center is a facility  that is equipped to host a large
number of computers) which would be connected to the Internet. When a subscriber
requests a video  rental from their  respective  service  provider,  the service
provider   would  contact  our   authentication   and  billing   server,   which
authenticates the request,  and authorizes the storage network server to deliver
the  appropriate  video.  The video server would then stream the program back to
the service  provider,  who in turn will  deliver it to their  subscriber.  This
event is logged for revenue and billing purposes.  We will then earn revenue for
our company  from the service  provider as either a fixed  charge for each video
provided or a percentage of the total revenue ultimately paid by the subscribe

PLAN OF OPERATION

The following discussion of the plan of operation,  financial condition, results
of  operations,  cash flows and  changes in  financial  position  of our Company
should be read in  conjunction  with our most recent  financial  statements  and
notes  appearing  elsewhere in this Form 10-QSB;  and our SB-2 filed on June 13,
2006.

As of the  date  hereof,  we have  not  accepted  any  subscriptions  under  our
registered  offering  and as  such,  have  not yet  proceeded  with  our Plan of
Operation as set out in our prospectus.

                                       11
<PAGE>
We currently  have no revenue from  operations,  we are in a start-up phase with
our existing assets and we have no significant  assets,  tangible or intangible.
There can be no assurance that we will generate  revenues in the future, or that
we will be able to operate profitably in the future, if at all. We have incurred
net losses in each fiscal year since inception of our operations.  We have never
declared bankruptcy, have never been in receivership, and never been involved in
any legal action or proceedings.  Since becoming incorporated,  we have not made
any  significant  purchase or sale of assets,  nor have we been  involved in any
mergers, acquisitions or consolidations.

During the first stages of  Pointstar'  growth the officers and  directors  will
provide all the labor required to execute our business plan at no charge.  Since
we intend to operate with very limited administrative  support, the officers and
directors will continue to be responsible  for all labor required to procure and
market our product for at least the first year of operations.  Management has no
intention of hiring any employees during the first year of operations.

How long Pointstar will be able to satisfy its cash requirements, and whether we
will require  additional  outside funding in the next twelve (12) months depends
on how  quickly our company  can  generate  revenue and how much  revenue can be
generated.  At the present  time we only have funds  available  to maintain  the
company  for 3-4  months.  However,  should we raise the  entire  $70,000 we are
seeking from our  Offering,  management  is of the opinion that no further funds
need be required for the operation of  Pointstar'  business for the twelve month
period  following  completion.  If we fail to raise any portion of the  $70,000,
then we may have to find other methods to raise additional  funds. At this time,
there are no anticipated  sources of additional funds in place. We are confident
we can meet our  financial  obligations  and pursue our plan of operations if we
can either raise the minimum additional funding through this Offering,  or begin
collecting  revenues  from  operations  within  the  next  six  months  of  this
prospectus becoming effective.

There are also no plans or  expectations  to  purchase  or sell any  significant
equipment in the first year of operations.

During the first year of operations, we will concentrate our efforts exclusively
on locations within Western Canada. At present, we have no plans to move outside
of Canada.

We  currently  do not have the  $70,000  needed to conduct  operations,  procure
content,  develop our website, or market our product, nor do we have a source to
supply the  necessary  funding if we are  unsuccessful  in raising  the  capital
through this Offering.

MILESTONES

Once the Offering is closed,  we plan to complete the design and construction of
a comprehensive  information  website and customer  portal.  The customer portal
will allow direct  customer  access for the selection of programming and movies.
We have already registered several domain names for use in our business.

We  plan  to use  the  domain  http://www.PointStarCorp.com  initially.  We have
already made  arrangements  for web and email hosting at a nominal cost. We have
also  acquired  telephone  and fax service.  Our  preliminary  web site has been
completed  for  $400.  A more  professional  web site  will be  developed  after
securing  financing  and should be completed by within 2 months of completion of
financing.          The         domains          http://www.PointStarOnline.com,
http://www.PointStarHome.com  and  http://www.PointStarLive.com  will be used as
the customer portal when completed.

Development  of our marketing and promotion  materials has begun.  Our marketing
package will include  development of a company logo. The  information  brochures
and bulletins  should be ready for our promotional use within the first 2 months
after the financing is completed.

We expect that we would have  negotiated  an agreement  with a video storage and
streaming  partner with two months from the  completion of financing.  We expect
that we will have a test system  completed after 8 months and a fully commercial
system  operational  by month 10. We anticipate  being able to generate  revenue

                                       12
<PAGE>
before the end of the 12 month period.  Whether we are successful in raising the
minimum or maximum  under our  Offering  will  impact  our  marketing,  sale and
advertising  effort.  This will directly  impact the number of customers and the
cost of video streaming.

Our President, Mr. Alimohamed will begin to secure programming and movie content
from content owners by the third month. He will focus initially on content (such
as movies) from the Arab-speaking world and from India.

We anticipate that we will spend  $4,000-$6,000 on travel. We have also budgeted
$4,000-$5,000  for  advertising  in  industry   publications  aimed  at  content
providers if we are to raise median and maximum levels of financing.

We plan to spend $5,000 to $20,000 on advertising our service,  depending on the
level of financing raised under our Offering. Advertising will start in month 10
concurrent with the launch of service.

Expenditures

The  following  chart  provides  an overview of our  budgeted  expenditures,  by
significant area of activity,  for Pointstar to begin operations upon completion
of the Offering.  In the following chart, the left column,  totaling $50,000, is
the minimum funds  required for Pointstar to remain  operational  for the twelve
months following the Offering. The right column, totaling $70,000, is our budget
for the twelve  month period if we are able to raise the maximum  Offering.  All
costs  leading  up to the  completion  of the  Offering  will be  funded  by our
Officers and Directors through the sale of common shares to date and shareholder
loans if further funds are required.

                                        Minimum          Median         Maximum
                                        -------          ------         -------
Legal/Accounting                      $ 8,000.00      $ 8,000.00      $ 8,000.00
Transfer Agent                          2,000.00        2,000.00        2,000.00
Marketing and Corporate Collateral      4,000.00        4,000.00        4,000.00
Website Development                     2,000.00        2,000.00        2,000.00
Travel                                  3,500.00        3,500.00        5,500.00
Telephone and Web Hosting               2,000.00        2,000.00        2,000.00
Authentication and Billing Server       2,000.00        2,000.00        2,000.00
Video storage and streaming cost        4,000.00        4,000.00        6,000.00
Authentication and Billing Software
Development                            10,000.00       10,000.00       10,000.00
Advertising (content providers)                -        3,000.00        5,000.00
Advertising (Service Providers)         5,000.00       12,000.00       15,000.00
Office Equipment                        2,000.00        2,000.00        2,000.00
Office Supplies                         1,750.00        1,750.00        1,750.00
Miscellaneous Administrative cost       1,750.00        1,750.00        1,750.00
Shipping                                2,000.00        2,000.00        3,000.00
                                      ----------      ----------      ----------
Total                                 $50,000.00      $60,000.00      $70,000.00
                                      ==========      ==========      ==========

The above expenditure items are defined as follows:

LEGAL/ACCOUNTING:   This  expenditure  item  refers  to  the  normal  legal  and
accounting costs associated with maintaining a publicly traded company.  It will
also cover the cost of preparation of appropriate agreements and documents.

MARKETING AND CORPORATE COLLATERAL: This include the design of logo, letterhead,
stationeries,  brochures in both  electronic  and printed  formats,  power point
presentation  and a polished  corporate  web site will be  completed  within the

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first 2 months after the financing is completed. We estimate that it will cost a
minimum of $4,000 to produce.

WEBSITE  DEVELOPMENT:  This will  includes  our own  corporate  website  and the
development of the customer portal on the website. This will enable the customer
to interact with the site and order programming  directly over the internet.  We
are  planning to  customize  the  interface  to provide for a brand name for the
different  service  providers.  Larger service providers will likely build their
own  custom  interface  and will  connect  to our  side  via  APIs  (Application
Programmable  Interfaces).  This will be completed by the launch of the service.
Depending on the level of financing, the complexity, functionality and usability
of the interface can be refined.

TRAVEL: This expenditure includes travel costs incurred promoting our service to
content owners.

TELEPHONE  AND WEB HOSTING:  This is the cost of hosting our email and corporate
web site as well as our telephone and fax expenses.

AUTHENTICATION AND BILLING SERVER:  This server will host the Authentication and
billing Software that authenticates  users and keeps track of billings.  It also
includes a database that stores information related to the programming,  service
providers,  accounting and billing  information.  This server will also host the
customer portal software.

VIDEO STORAGE AND STREAMING COST: We are aware of several companies that provide
video storage and  streaming.  We intend to enter into an agreement  with one of
these companies to store and stream the video  programming to our customers.  We
have budgeted  between  $4,000-$6,000  for this item. The variance is due to the
increased  traffic cost associated with  increasing  number of service  provider
customers that would materialize with increased advertising expenditure.

AUTHENTICATION  AND BILLING SOFTWARE  DEVELOPMENT:  This software will reside on
the   authentication  and  billing  server.  It  will  store  all  the  client's
information  and those of the video  programming  and their  locations.  It will
authenticate  the service  provider and instruct the Video storage and streaming
partner to deliver the programming to the desired audience.

ADVERTISING (CONTENT PROVIDERS): If we raise at least the median amount, we plan
on advertising in publications targeting content providers.

ADVERTISING  (SERVICE  PROVIDERS):  Depending on the amount of money raised,  we
will be spending  between $12,000 to $15,000 on advertising  targeted at service
providers  and  to  highlight  our  brand  name.  The  advertising  will  be  in
publications targeting the service provider markets.

OFFICE EQUIPMENT:  This include the purchase of one laptop and associated S/W, a
printer,  two filing  cabinets  and a storage unit for the DVDs from the content
providers.

OFFICE SUPPLIES: This include stationary, printer cartridges, folders, and other
office supplies.

MISCELLANEOUS  ADMINISTRATIVE  COST:  This expense  refers to any  miscellaneous
costs that have not been otherwise listed, such as bank service charges.

SHIPPING:  Represents  expense  for  shipping  content,  most of  which  will be
overseas.  We expect to spend more money on  shipping if we raise the higher sum
since this will mean more content  providers.  This also cover  shipping cost of
information packages to the different content providers.

IF THE MINIMUM  OFFERING IS SOLD:  we will still be able to execute our business
plan. However, we will have less money to spend on advertising.

IF THE  MEDIAN  OFFERING  IS  SOLD:  We  will be able to  spend  more  money  on
advertising. We believe this will yield a higher number of customers.

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<PAGE>
IF THE  MAXIMUM  OFFERING  IS  SOLD:  We will be able to  spend  more  money  on
advertising,  which may attract a higher  number of  customers.  We believe that
this sum will enable us to effectively execute on our business plan.

As  previously  noted,  we  have  raised  $15,000  from  the  sale of  stock  to
affiliates,  officers  and  directors.  To  date we have  paid  $13,405  for our
incorporation and operating  expenses.  At July 31, 2006 we have $2,744 of cash.
We  have  paid  all  of the  expenses  associated  with  the  completion  of our
registration  statement.  Should we raise the entire $70,000 we are seeking from
our  Offering,  and should we be able to generate  minimal  revenue  within this
twelve-month period,  management is of the opinion that no further funds need be
required for the  operation of  Pointstar'  business for the twelve month period
following the completion of the Offering. Our budgeted expenditures for the next
twelve months is $50,000 if the minimum amount is raised and $70,000 if we raise
the  maximum.  If we fail to raise at least the  minimum  amount we will have to
find  other  methods  to raise  additional  funds.  At this  time,  there are no
anticipated sources of additional funds in place.

We are  confident we can meet our financial  obligations  and pursue our plan of
operations if we can raise the minimum amount of funding as  contemplated by our
Offering,  and begin  collecting  revenue  from  operations  within the first 10
months of this prospectus becoming effective.

MANAGEMENT DISCUSSION AND ANALYSIS

At July 31, 2006, we had working capital of $1,595,  compared to working capital
of $10,923 at April 30,  2006.  At July 31,  2006,  our total  assets  consisted
solely of cash, as did total assets at April 30, 2006.

At July 31, 2006, our total current liabilities, all accounts payable, increased
to $1,149 from $nil at April 30, 2006.

We have not had revenues  from  inception.  Our short and long term  survival is
dependent  on funding  from  sales of  securities  and,  as  necessary,  or from
shareholder loans.

RESULTS OF OPERATIONS

Our company  posted  losses of $9,328 for the first quarter ended July 31, 2006.
Comparisons  are not meaningful in this case as our company was  incorporated on
March 8,  2006.  From  inception  to July 31,  2006 we have  incurred  losses of
$13,405.   The  principal  component  of  our  2006  first  quarter  losses  was
professional fees of $8,200 for our offering, office and administration expenses
of $464 and website expenses of $664.

As of the date of this  report,  our net cash balance is  approximately  $1,200.
Cash on hand is  currently  our only  source  of  liquidity.  We do not have any
lending  arrangements in place with banking or financial  institutions and we do
not anticipate that we will be able to secure these funding  arrangements in the
near future.

We believe our existing  cash  balances are  sufficient  to carry our  corporate
existence  for the  next  3-4  months,  if we  cannot  complete  our  registered
offering.  To the  extent  that we  require  additional  funds  to  support  our
operations or the expansion of our business,  we may attempt to sell  additional
equity  shares or issue debt.  Any sale of  additional  equity  securities  will
result  in  dilution  to  our  stockholders.  There  can  be no  assurance  that
additional  financing,  if  required,  will be  available  to our  company or on
acceptable terms.

ITEM 3. CONTROLS AND PROCEDURES

As of the end of the period covered by this report,  we conducted an evaluation,
under the supervision and with the  participation of our chief executive officer
and chief  financial  officer of our  disclosure  controls  and  procedures  (as
defined in Rule 13a-15(e) of the Exchange Act). Based upon this evaluation,  our

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<PAGE>
chief  executive   officer  and  chief  financial  officer  concluded  that  our
disclosure  controls and  procedures  are  effective to ensure that  information
required to be  disclosed  by us in the reports that we file or submit under the
Exchange Act is recorded,  processed,  summarized and reported,  within the time
periods specified in the Commission's rules and forms.

There has been no change in our internal control over financial reporting during
the current  quarter that has materially  affected,  or is reasonably  likely to
materially affect, our internal control over financial reporting.

                          PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

ITEM. OTHER INFORMATION

None.

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

 (a) Pursuant to Rule 601 of Regulation SB, the following  exhibits are included
herein or incorporated by reference.

    Exhibit
    Number                              Description
    ------                              -----------
     3.1      Articles of Incorporation*
     3.2      By-laws*
     31.1     Certification of CEO Pursuant to 18 U.S.C. ss. 1350, Section 302
     31.2     Certification  of CFO Pursuant to 18 U.S.C. ss. 1350, Section 302
     32.1     Certification  Pursuant  to 18 U.S.C.  ss.1350,  Section 906
     32.2     Certification  Pursuant  to 18 U.S.C.  ss. 1350, Section 906

----------
*    Incorporated by reference to our SB2  Registration  Statement,  File Number
     333-134990

(b) Reports on Form 8-K

None.

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                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf  by the  undersigned,  thereunto  duly  authorized,  on  this  6th day of
September, 2006.

                               POINTSTAR ENTERTAINMENT CORP.


Date: September 6, 2006        By: /s/ Altaf Alimohamed
                                  ----------------------------------------------
                               Name:  Altaf Alimohamed
                               Title: President/CEO, principal executive officer



Date September 6, 2006         By: /s/ Rafeh Hulays
                                  ----------------------------------------------
                               Name:  Rafeh Hulays
                               Title: Chief Financial Officer, principal
                                      financial officer

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