---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, 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, 2007**

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 August 29, 2007: 63,000,000

Authorized share capital of the registrant: 300,000,000 common
shares and 25,000,000 preferred shares, par value of $0.001

The Company recorded $nil revenue for the quarter ended July 31,
2007.

---

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 INADEQUATE TO CARRY OUT ITS BUSINESS PLAN
AND THAT THERE WILL BE INADEQUATE 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 | 7-12       

2

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POINTSTAR ENTERTAINMENT CORP.(A
Development Stage Company)

BALANCE SHEETS

|                                                                      |   | July
      31, 2007 |   |   | April
      30, 2007 |  
|--------------------------------------------------------------------- | - | ------------------- | - | - | -------------------- | -
|                                                                      |   | (unaudited)         |   |   |                      |  
|                                                                      |   |                     |   |   |                      |  
|ASSETS                                                                |   |                     |   |   |                      |  
|                                                                      |   |                     |   |   |                      |  
|Current assets                                                        |   |                     |   |   |                      |  
|                                                                      |   |                     |   |   |                      |  
|Cash and bank accounts                                                | $ | 6,245               |   | $ | 17,741               |  
|                                                                      |   |                     |   |   |                      |  
|Total current assets                                                  |   | 6,245               |   |   | 17,741               |  
|                                                                      |   |                     |   |   |                      |  
|Property and equipment net of accumulated
      amortization (Note 6) |   | 15,080              |   |   | 15,345               |  
|                                                                      |   |                     |   |   |                      |  
|Total assets                                                          | $ | 21,325              |   | $ | 33,086               |  
|                                                                      |   |                     |   |   |                      |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                  |   |                     |   |   |                      |  
|                                                                      |   |                     |   |   |                      |  
|Current liabilities                                                   |   |                     |   |   |                      |  
|                                                                      |   |                     |   |   |                      |  
|Accounts payable                                                      | $ | 1,976               |   | $ | 7,893                |  
|                                                                      |   |                     |   |   |                      |  
|Total liabilities                                                     |   | 1,976               |   |   | 7,893                |  
|                                                                      |   |                     |   |   |                      |  
|Stockholders equity (Note 4, 5)                                      |   |                     |   |   |                      |  
|                                                                      |   |                     |   |   |                      |  
|Authorized:                                                           |   |                     |   |   |                      |  
|300,000,000 common shares                                             |   |                     |   |   |                      |  
|25,000,000 preferred
      shares                                     |   |                     |   |   |                      |  
|Par value $0.001                                                      |   |                     |   |   |                      |  
|                                                                      |   |                     |   |   |                      |  
|Issued and outstanding:                                               |   |                     |   |   |                      |  
|270,000,000 common
      shares                                       |   | 270,000             |   |   | 270,000              |  
|Additional paid-in capital                                            |   | (205,000            | ) |   | (205,000             | )
|Deficit accumulated
      during the development stage                |   | (45,651             | ) |   | (39,807              | )
|                                                                      |   |                     |   |   |                      |  
|Total stockholders equity                                            |   | 19,349              |   |   | 25,193               |  
|                                                                      |   |                     |   |   |                      |  
|Total liabilities and stockholders' equity                            | $ | 21,325              |   | $ | 33,086               |  

SEE NOTE 10 SUBSEQUENT EVENTS

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

3

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POINTSTAR ENTERTAINMENT CORP.(A
Development Stage Company)

STATEMENT OF OPERATIONS(UNAUDITED)

|                           |   |                |   |   |                |   |   | Cumulative    |  
|-------------------------- | - | -------------- | - | - | -------------- | - | - | ------------- | -
|                           |   |                |   |   |                |   |   | Amounts From  |  
|                           |   |                |   |   |                |   |   | Date of       |  
|                           |   |                |   |   |                |   |   | Incorporation |  
|                           |   |                |   |   |                |   |   | on March 8    |  
|                           |   | 3 Months       |   |   | 3 Months       |   |   | 2006 to       |  
|                           |   | Ended July 31, |   |   | Ended July 31, |   |   | July 31,      |  
|                           |   | 2007           |   |   | 2006           |   |   | 2007          |  
|                           |   |                |   |   |                |   |   |               |  
|REVENUE                    | $ | -              |   | $ | -              |   | $ | -             |  
|                           |   |                |   |   |                |   |   |               |  
|OPERATING EXPENSES         |   |                |   |   |                |   |   |               |  
|Amortization               |   | 265            |   |   | -              |   |   | 442           |  
|General & administrative   |   | 1,679          |   |   | 464            |   |   | 14,053        |  
|Legal and accounting fees  |   | 3,900          |   |   | 8,200          |   |   | 21,669        |  
|Marketing and advertising  |   | -              |   |   | -              |   |   | 6,000         |  
|Organization               |   | -              |   |   | -              |   |   | 1,858         |  
|Website                    |   | -              |   |   | 664            |   |   | 1,629         |  
|                           |   |                |   |   |                |   |   |               |  
|Loss before income taxes   |   | (5,844         | ) |   | (9,328         | ) |   | (45,651       | )
|                           |   |                |   |   |                |   |   |               |  
|Provision for income taxes |   | -              |   |   | -              |   |   | -             |  
|                           |   |                |   |   |                |   |   |               |  
|Net loss                   | $ | (5,844         | ) | $ | (9,328         | ) | $ | (45,651       | )
|                           |   |                |   |   |                |   |   |               |  
|                           |   |                |   |   |                |   |   |               |  
|Basic and diluted loss per |   |                |   |   |                |   |   |               |  
|Common share (1)           |   |                |   |   |                |   |   |               |  
|                           |   |                |   |   |                |   |   |               |  
|                           |   |                |   |   |                |   |   |               |  
|Weighted average number    |   | 270,000,000    |   |   | 240,000,000    |   |   |               |  
|of common shares           |   |                |   |   |                |   |   |               |  
|outstanding (Note
      4) |   |                |   |   |                |   |   |               |  
|(1) less than $0.01        |   |                |   |   |                |   |   |               |  

SEE NOTE 10 SUBSEQUENT EVENTS

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

4

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POINTSTAR ENTERTAINMENT CORP. |(A
Development Stage Company)

STATEMENT OF STOCKHOLDERS' EQUITY(UNAUDITED)

DeficitAccumulatedCommon
        Stock
      
      
      Additional
      
      
      During the
      
      
      TotalPaid in
      
      
      Development
      
      
      Stockholders'Shares
      
      
      Amount
      
      
      Capital
      
      
      Stage
      
      
      EquityInception, March 8, 2006
      
      -
      
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -Initial capitalizationSale of common stock
      
      240,000,000
      
      
      240,000
      
      
      (225,000
      )
      
      
      
      
      15,000Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      (4,077
      )
      
      (4,077
      )Balance April 30, 2006
      
      240,000,000
      
      
      240,000
      
      
      (225,000
      )
      
      (4,077
      )
      
      10,923Sale of common stockNovember 7, 2006
      
      30,000,000
      
      
      30,000
      
      
      20,000
      
      
      
      
      
      50,000Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      (35,730
      )
      
      (35,730
      )Balance April 30, 2007
      
      270,000,000
      
      
      270,000
      
      
      (205,000
      )
      
      (39,807
      )
      
      25,193Net loss for the period
      
      -
      
      
      -
      
      
      -
      
      
      (5,844
      )
      
      (5,844
      )Balance July 31, 2007
      
      270,000,000
      
      $
      270,000
      
      $
      (205,000
      )
      $
      (45,651
      )
      $
      19,349


SEE NOTE 10 SUBSEQUENT EVENTS

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

5

---

POINTSTAR ENTERTAINMENT CORP.(A
Development Stage Company)

STATEMENT OF CASH FLOWS(UNAUDITED)

|                                                          |   |                |   |   |                |   |   | Cumulative    |  
|--------------------------------------------------------- | - | -------------- | - | - | -------------- | - | - | ------------- | -
|                                                          |   |                |   |   |                |   |   | Amounts       |  
|                                                          |   |                |   |   |                |   |   | From          |  
|                                                          |   |                |   |   |                |   |   | Date of       |  
|                                                          |   |                |   |   |                |   |   | Incorporation |  
|                                                          |   |                |   |   |                |   |   | on March 8    |  
|                                                          |   | 3 Months       |   |   | 3 Months       |   |   | 2006 to       |  
|                                                          |   | Ended July     |   |   | Ended July     |   |   | July 31,      |  
|                                                          |   | 31,
      2007 |   |   | 31,
      2006 |   |   | 2007          |  
|                                                          |   |                |   |   |                |   |   |               |  
|CASH FLOWS USED IN OPERATING ACTIVITIES                   |   |                |   |   |                |   |   |               |  
|Net loss for the period                                   | $ | (5,844         | ) | $ | (9,328         | ) | $ | (45,651       | )
|Adjustments To Reconcile Net Loss To Net Cash Used By     |   |                |   |   |                |   |   |               |  
|Operating Activities                                      |   |                |   |   |                |   |   |               |  
|Amortization                                              |   | 265            |   |   | -              |   |   | 442           |  
|Changes in operating assets and
      liabilities:        |   |                |   |   |                |   |   |               |  
|Accounts payable                                          |   | (5,917         | ) |   | 1,149          |   |   | 1,976         |  
|                                                          |   |                |   |   |                |   |   |               |  
|Net cash used in operating activities                     |   | (11,496        | ) |   | (8,179         | ) |   | (43,233       | )
|                                                          |   |                |   |   |                |   |   |               |  
|                                                          |   |                |   |   |                |   |   |               |  
|CASH FLOWS FROM FINANCING ACTIVITIES                      |   |                |   |   |                |   |   |               |  
|Proceeds from issuance of common stock                    |   | -              |   |   | -              |   |   | 65,000        |  
|                                                          |   |                |   |   |                |   |   |               |  
|Net cash provided by financing activities                 |   | -              |   |   | -              |   |   | 65,000        |  
|                                                          |   |                |   |   |                |   |   |               |  
|CASH FLOWS USED IN INVESTING ACTIVITIES                   |   |                |   |   |                |   |   |               |  
|Purchase of property and
      equipment                  |   | -              |   |   | -              |   |   | (15,522       | )
|                                                          |   |                |   |   |                |   |   |               |  
|                                                          |   | -              |   |   | -              |   |   | (15,522       | )
|                                                          |   |                |   |   |                |   |   |               |  
|Change in cash during the period                          |   | (11,496        | ) |   | (8,179         | ) |   | 6,245         |  
|                                                          |   |                |   |   |                |   |   |               |  
|                                                          |   |                |   |   |                |   |   |               |  
|Cash, beginning of the period                             |   | 17,741         |   |   | 10,923         |   |   | -             |  
|                                                          |   |                |   |   |                |   |   |               |  
|                                                          |   |                |   |   |                |   |   |               |  
|Cash, end of the period                                   | $ | 6,245          |   | $ | 2,744          |   | $ | 6,245         |  
|                                                          |   |                |   |   |                |   |   |               |  
|Supplemental disclosure with respect to
      cash flows: |   |                |   |   |                |   |   |               |  
|Cash paid for income taxes                                | $ |                |   | $ | -              |   | $ | -             |  
|Cash paid for interest                                    | $ |                |   | $ | -              |   | $ | -             |  

SEE NOTE 10 SUBSQUENT EVENTS

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

6

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POINTSTAR ENTERTAINMENT CORP.(A
Development Stage Company) NOTES TO FINANCIAL STATEMENTSJuly 31, 2007 (UNAUDITED)

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, marketing plans and software
development. On November 7, 2006 management closed on a registered offering of
the Companys common stock, and raised $50,000 to start an ethnic and cultural
interest video and television programming distribution business over the
Internet. See Note 10.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES

The companys relevant accounting policies and procedures are
listed below.

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

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POINTSTAR ENTERTAINMENT CORP.(A Development Stage Company) NOTES TO FINANCIAL STATEMENTSJuly 31, 2007 
  (UNAUDITED)

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.

Software Development Costs

Software development costs representing capitalized costs of
design, configuration, coding, installation and testing of the Companys website
and video distribution and billing system up to its initial implementation. Upon
implementation, these assets will be

8

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POINTSTAR ENTERTAINMENT CORP.(A Development Stage Company) NOTES TO FINANCIAL STATEMENTSJuly 31, 2007 
  (UNAUDITED)

NOTE 2. (continued)

amortized to expense over their estimated useful life of three
years using the straight-line method. Ongoing post-implementation costs of
operation, including training and application maintenance, will be charged to
expense as incurred. As of the date of these financial statements, the company
has not yet implemented these systems and is continuing with development and
testing. See Note 6.

NOTE 3. GOING CONCERN

The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern, which contemplates,
among other things, the realization of assets and satisfaction of liabilities in
the normal course of business. The Company has net losses for the period from
inception to July 31,2007 of $(45,651). The Company intends to fund operations
through sales and equity financing arrangements, which may be insufficient to
fund its capital expenditures, working capital and other cash requirements for
the year ended April 30, 2008.

The ability of the Company to emerge from the development stage
is dependent upon the Companys successful efforts to raise sufficient capital
and then attaining profitable operations. In response to these problems,
management has planned the following actions:

- Management intends to raise additional funds through public or private
  placement offerings as required.
- Management is currently completing development of its proposed services to
  generate sales. There can be no assurances, however, that managements
  expectations of future sales will be realized.

These factors, among others, raise substantial doubt about the
Companys ability to continue as a going concern. These financial statements do
not include any adjustments that might result from the outcome of this
uncertainty.

NOTE 4. STOCKHOLDERS EQUITY

Authorized

The Company is authorized to issue 300,000,000 shares of $0.001
par value common stock and 25,000,000 shares of $0.001 par value preferred
stock. All common stock

9

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POINTSTAR ENTERTAINMENT CORP.(A Development Stage Company) NOTES TO FINANCIAL STATEMENTSJuly 31, 2007 
  (UNAUDITED)

NOTE 4. (continued)

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.

On May 21, 2007 the companys officers and directors, holding
88.88% of the issued and outstanding common shares in the company, approved an
increase in the authorized common shares from 25,000,000 to 300,000,000 by
consent resolution. The companys articles were amended with the State of Nevada
on June 14, 2007.

Issued and Outstanding

On March 8, 2006 (inception), the Company issued 240,000,000
shares of its common stock to its Directors for cash of $15,000. See Note 5.

On November 7, 2006 the Company accepted subscriptions for
30,000,000 common shares, or an aggregate of $50,000, from 40 investors under
its registered offering.

On July 31, 2007, the Company effected a 60 for 1 forward stock
split of its 4,500,000 issued and outstanding common shares, resulting in
270,000,000 common shares on a post split basis. All shares and per share
amounts have been retroactively restated to reflect the 60 for 1 forward stock
split.

See Note 10.

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 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 240,000,000
shares of its common stock to its Directors for cash of $15,000. See Note 4.

See Note 10 Subsequent Events.

10

---

POINTSTAR ENTERTAINMENT CORP.(A Development Stage Company) NOTES TO FINANCIAL STATEMENTSJuly 31, 2007 
  (UNAUDITED)

NOTE 6. PROPERTY AND EQUIPMENT

**Cost**
    Accumulated amortization
    Net book valueComputer hardware
    $ 3,185
    $ 442
    $ 2,743Software development costs- video distribution and
      billing
    10,337
    -
    10,337Software development costs  website
    2,000
    -
    2,000$15,522
    $442
    $15,080


The company amortizes its computer equipment on a straight line
basis over 3 years. The company plans to amortize all of its software on a
straight line basis over 3 years, its estimated useful life when development and
testing is complete and the software is implemented .

NOTE 7. 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 8. NET OPERATING LOSSES

As of April 30, 2007, the Company has a net operating loss
carryforward of approximately $38,000, of which $2,200 will expire in 2026 and
the balance in 2027, or 20 years from the date the loss was incurred.

NOTE 9. OPERATING LEASES AND OTHER
COMMITMENTS:

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

11

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POINTSTAR ENTERTAINMENT CORP.(A Development Stage Company) NOTES TO FINANCIAL STATEMENTSJuly 31, 2007 
  (UNAUDITED)

NOTE 10. SUBSEQUENT EVENTS

On August 14, 2007 the companys board of directors decided to
explore and evaluate alternatives for the companys business.

On August 21, 2007 the companys president and the companys
secretary and a director returned 141,000,000 and 69,000,000 common shares
respectively to the treasury for cancellation. Subsequent to the cancellation,
there were 60,000,000 shares outstanding.

On August 22, 2007, the company closed a private placement,
consisting of 3,000,000 units at a price of $0.50 per unit, for aggregate
proceeds of US$1,500,000. Each unit consists of one common share, a share
purchase warrant entitling the holder thereof to purchase one common share for
$0.55 for a period of twenty-four months commencing from the closing of the
private placement, and a second share purchase warrant entitling the holder
thereof to purchase one common share for $0.60 for a period of thirty-six months
commencing from the closing of the private placement.

Subsequent to these transactions, there are 63,000,000 common
shares outstanding.

12

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Item 2. Managements Plan of Operation

Pointstar Entertainment Corp. was incorporated on March 8,
2006, in the State of Nevada. Pointstars 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. As of the date
hereof, we have no revenue, limited operations and no significant assets.

Our company has never declared bankruptcy, it has never been in
receivership, and it has never been involved in any legal action or proceedings.
Subsequent to incorporation, Pointstar has been in the developmental stage. Our
initial operations with respect to our business plan only commenced late in the
third quarter of our last fiscal year, concurrent with the completion of our
public offering.

Subsequent to our incorporation, we had been in the process of
establishing ourselves as a company that seeks to obtain distribution rights for
ethnic and special interest television programming and movies from film studios,
television network companies, and independent production houses.

In the fourth quarter of our last fiscal year, we purchased all
necessary development and deployment servers and completed our video server and
a working prototype of our client software. Early in this quarter, we discovered
that the software was unstable and that further work was required to make it
feasible, which was beyond our existing financial resources. The development of
the software was proving to be more challenging than initially anticipated, and
we estimated that we required an additional $15,000 to complete development and
approximately $40,000 to continue operations for the current fiscal year. Our
Directors also held discussions with several content providers in North America.
the Middle East and Europe. They did not conclude any agreement because of our
current lack of a completed delivery platform. Therefore, we were forced to look
at various alternatives to ensure the viability and solvency of our company.

On August 14, 2007, Mr. Altaf Alimohamed resigned as director
  but remained as our President. Mr. Imad Yassine was appointed as his replacement.
  Mr. Yassine also acquired 18,000,000 common shares from Mr. Alimohamed and Hulays,
  enabling him to become our largest stockholder subsequent to the transactions
  described herein (See Other Information). Subsequent to his appointment,
  Mr. Yassine has focused his efforts on the identification of business alternatives
  and additional financing. While he has identified promising prospects that are
  related to the environmental industry, at this stage there can be no assurance
  that we will be able to complete a transaction, or on terms acceptable to our
  company. On August 22, 2007 we were successful in completing a private placement
  for $1,500,000 which we now have available for working capital purposes.

Management Discussion and Analysis

At July 31, 2007, we had working capital of $4,269, compared to
working capital of $9,848 at April 30, 2007. At July 31, 2007, our total assets
consisted of cash of $6,245 and capital assets of $15,080, compared to cash of
$17,741 and capital assets of $15,345 at April 30, 2007.

At July 31, 2007, our total current liabilities, all accounts
payable, decreased to $1,976 from $7,893 at April 30, 2007.

Our company posted losses of $5,844 for the first quarter ended
July 31, 2007, compared to $9,328 for the comparable quarter in 2006. From
inception to July 31, 2007 we have incurred losses of $45,651. The principal
component of our 2007 first quarter losses were professional fees of $3,900
(2006 - $8,200), general and administration expenses of $1,679 (2006 - $464) and
amortization of $265 (2006 - $nil). In 2006 we also incurred website expenses of
$664.

Prior to the completion of the private placement on August 22,
2007 we were insolvent and had no remaining cash. As of the date of this report,
our cash balance is now approximately $1,500,000. Cash on hand is currently our
only source of liquidity. 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.

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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.

Cash balances required to carry our corporate existence are
dependent on our future business activities, which are still under review. 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 required by Rule 13a-15 under the Securities Exchange Act of
1934, as of the end of the period covered by the quarterly report, being July
31, 2007, we have carried out an evaluation of the effectiveness of the design
and operation of our companys disclosure controls and procedures. This
evaluation was carried out under the supervision and with the participation of
our companys management, including our companys president and chief executive
officer and our chief financial officer. Based upon that evaluation, our
companys president and chief executive officer and our chief financial officer
concluded that our companys disclosure controls and procedures are effective as
at the end of the period covered by this report. There have been no changes in
our internal controls over financial reporting that occurred during our most
recent fiscal quarter that have materially affected, or are reasonably likely to
materially affect our internal controls over financial reporting.

Disclosure controls and procedures and other procedures that
are designed to ensure that information required to be disclosed in our reports
filed or submitted under the Securities Exchange Act of 1934 is recorded,
processed, summarized and reported, within the time period specified in the
Securities and Exchange Commissions rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed in our reports filed under the
Securities Exchange Act of 1934 is accumulated and communicated to management,
including our president and chief executive officer and our chief financial
officer as appropriate, to allow timely decisions regarding required disclosure.

PART II  OTHER INFORMATION

ITEM
1.              
 LEGAL PROCEEDINGS

None.

ITEM
2.                UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On August 22, 2007, we closed a private placement consisting of
3,000,000 units of our securities at a price of $0.50 per unit for aggregate
proceeds of $1,500,000. Each unit consists of (i) one common share, (ii) one
share purchase warrant entitling the holder thereof to purchase one common share
for a period of twenty-four months commencing from the closing of the private
placement, at an exercise price of $0.55 per common share and (iii) one share
purchase warrant entitling the holder thereof to purchase one common share for a
period of thirty-six months commencing from the closing of the private
placement, at an exercise price of $0.60 per common share.

We issued the units to a non-U.S. person (as that term is
defined in Regulation S of the Securities Act of 1933) in an offshore
transaction relying on Regulation S and/or Section 4(2) of the Securities Act of
1933.

ITEM
3.                DEFAULTS
UPON SENIOR SECURITIES

None.

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

On May 21, 2007, our two officers and directors, collectively
holding 88.88% of the issued and outstanding common shares of our company,
approved by consent resolution an amendment to our articles to increase the
authorized common stock of our company from 25,000,000 to 300,000,000 shares.
There were no other matters submitted to stockholders during the period.

ITEM
5.                OTHER
INFORMATION

On August 14, 2007 Mr. Alimohamed resigned as a director and
  Mr. Imad Yassine was appointed as his replacement. Concurrent with the resignation,
  on August 20, 2007 Mr. Yassine acquired 9,000,000 common shares from each of
  Mr. Alimohamed and Mr. Hulays at a price of $0.001 per share to hold 18,000,000
  shares, for an aggregate of $18,000. The source of the funds used to acquire
  the 18,000,000 common shares was Mr. Yassine's personal funds.

On August 21, 2007 Mr. Altaf Alimohamed and Mr. Rafeh Hulays
returned 141,000,000 and 69,000,000 common shares respectively to our treasury
for cancellation. Subsequent to the cancellation, there were 60,000,000 shares
outstanding.

Subsequent to the cancellation on August 21, 2007 and the
private placement on August 22, 2007, Mr Yassine became our largest single
stockholder holding 28.57% of our total outstanding common shares.

ITEM
6.                EXHIBITS

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

|Exhibit | Description                                                                                                                                                                                                    
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |                                                                                                                                                                                                                
|(3)     | Articles of Incorporation
        and Bylaws                                                                                                                                                                   
|3.1     | Articles of Incorporation (incorporated
        by reference from our Registration Statement on Form SB-2 filed on June
        13, 2006)                                                                      
|3.2     | By-laws (incorporated by reference
        from our Registration Statement on Form SB-2 filed on June 13, 2006)                                                                                                
|3.3     | Certificate of Amendment (incorporated
        by reference from our Current Report on Form 8-K filed on August 6, 2007)                                                                                       
|(10)    | Material Contracts                                                                                                                                                                                             
|10.1    | Form of Subscription Agreement
        (incorporated by reference from our Current Report on Form 8-K filed on
        August 24, 2007).                                                                       
|10.2    | Affiliate Stock Purchase Agreement
        dated August 20, 2007 between Imad Yassine, Altaf Alimohamed and Rafeh
        Hulays (incorporated by reference from Schedule 13D filed on August 24,
        2007)
|(31)    | Section 302 Certification                                                                                                                                                                                      
|31.1*   | Section
        302 Certification under Sarbanes-Oxley Act of 2002 of Altaf Alimohamed                                                                                                                         
|31.2*   | Section
        302 Certification under Sarbanes-Oxley Act of 2002 of Rafeh Hulays                                                                                                                             
|(32)    | Section 906 Certification                                                                                                                                                                                      
|32.1*   | Section
        906 Certification under Sarbanes-Oxley Act of 2002 of Altaf Alimohamed                                                                                                                         
|32.2*   | Section 906 Certification
      under Sarbanes-Oxley Act of 2002 of Rafeh Hulays                                                                                                                               

*filed herewith

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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 11th day
  of September , 2007.

POINTSTAR ENTERTAINMENT CORP.

|Date: September 11 , 2007 | By: */s/ Altaf Alimohamed*                                       
|------------------------- | -----------------------------------------------------------------
|                          | Name: Altaf Alimohamed                                           
|                          | Title: President/CEO, principal executive
      officer          
|                          |                                                                  
|                          |                                                                  
|Date: September 11 , 2007 | By: */s/ Rafeh Hulays*                                           
|                          | Name: Rafeh Hulays                                               
|                          | Title: Chief Financial Officer, principal
      financial officer

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