U.S. SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB

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

     For the quarterly period ended March 31, 2001

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

     For the transition period from     to

                   Commission File No. 0-23015

               RED HORSE ENTERTAINMENT CORPORATION
     (Exact name of small business issuer as specified in its
                            charter)

            Nevada                          87-0450232
(State or other jurisdiction of    (IRS Employer Identification No.)
incorporation or organization)


         11828 La Grange Avenue, Los Angeles, CA  90025
             (Address of principal executive offices)

                         (310) 473-0213
                   (Issuer's telephone number)

                         Not Applicable
(Former name, address and fiscal year, if changed since last report)

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

APPLICABLE  ONLY  TO ISSUERS INVOLVED IN BANKRUPTCY  PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:

Check whether the registrant has filed all documents and reports
required  to  be  filed by Sections 12,  13,  or  15(d)  of  the
Exchange Act subsequent to the distribution of securities  under
a plan confirmed by a court. Yes [  ]  No  [  ]

APPLICABLE ONLY TO CORPORATE ISSUERS:
State  the number of shares outstanding of each of the  issuer's
classes of common equity, as of March 31, 2000:  455,073  shares
of common stock.

Transitional Small Business Format:  Yes [   ]  No [ X ]
<PAGE>


                           FORM 10-QSB
               RED HORSE ENTERTAINMENT CORPORATION

                              INDEX
                                                       Page
PART I.   Financial Information                           3

          Financial Statements                            3

          Management's Discussion and Analysis of        11
          Financial Condition and Plan of Operation

PART II.  Other Information                              12

          Signatures                                     12

                                2
<PAGE>

                             PART I.
                  Item 1. Financial Information


               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                         Balance Sheets


                             ASSETS

                                                    March 31,    December 31,
                                                    2001            2000
                                                  (Unaudited)
<TABLE>
<CAPTION>
<C>                                              <C>            <C>
CURRENT ASSETS

 Cash                                            $  237,238     $   237,671

  Total Current Assets                              237,238         237,671

PROPERTY AND EQUIPMENT (Note 3)                           -               -

  TOTAL ASSETS                                   $  237,238        $237,671


              LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

 Accounts payable                                $        -      $       -

  Total Current Liabilities                               -              -

STOCKHOLDERS' EQUITY

 Common stock: 50,000,000 shares authorized
 at $0.001 par value; 455,073 shares issued
 and outstanding  				               455           455
 Additional paid-in capital                          423,353       423,353
 Deficit accumulated during the development stage   (186,570)     (186,137)

  Total Stockholders' Equity              	    237,238        237,671

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $  237,238     $  237,671

</TABLE>
                                3
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                    Statements of Operations
                           (Unaudited)


                              					 From
                                                    	    Inception on
                                                    	    December 4,
                              For the Three Months Ended    1987 to
                                         March 31,         March 31,
                                    2001      2000           2001

REVENUES                       $        -     $      -    $        -

EXPENSES

 Bad debt expense                       -            -        35,000
 Outside services                     765          505        10,688
 Professional fees                  2,024        2,752        84,088
 Rent                                   -            -         6,545
 Travel                                 -            -        18,336
 Administrative expenses              855           46        29,717
 Depreciation                           -            -         1,546
 Amortization                           -            -           472
 Interest                               -            -           418

  Total Expenses                    3,644        3,303       186,810

OTHER INCOME

 Interest income                    3,211        2,866       135,364

  Total Other Income                3,211        2,866       135,364

NET LOSS BEFORE
 DISCONTINUED OPERATIONS             (433)        (437)      (51,446)

LOSS FROM DISCONTINUED
 OPERATIONS (Note 6)                    -            -      (911,314)

GAIN ON DISPOSAL OF
 DISCONTINUED OPERATIONS (Note 6)       -            -       776,190

NET LOSS                       $    (433)     $    (437) $  (186,570)

BASIC LOSS PER SHARE     	 $   (0.00)     $   (0.00)

WEIGHTED AVERAGE SHARES
 OUTSTANDING                     455,073        455,073

                                4
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                    Statements of Cash Flows
                           (Unaudited)
<TABLE>
<CAPTION>                                                              	        From
                                                         			Inception on
                                                         			December 4,
                                	    For the Three Months Ended        1987 to
                                        	    March 31,                  March 31,
                                     	    2001         2000            2001

CASH FLOWS FROM OPERATING ACTIVITIES
<C>                                           <C>        <C>         <C>
 Net loss                                     $ (433)    $  (437)    $     (186,570)
 Adjustments to reconcile net loss to net cash
  provided (used) by operating activities:
  Depreciation                                     -           -              1,546
  Amortization                                     -           -                472
  Loss on disposal of discontinued operations      -           -           (776,190)
 Changes in operating assets and liabilities:
  Increase in accounts payable                     -       2,405                  -
  Increase in accrued expenses                     -           -            286,334

   Net Cash Provided (Used) by Operating
    Activities                                  (433)      1,968           (674,408)

CASH FLOWS FROM INVESTING ACTIVITIES

 Organization expenses                             -           -            (10,925)
 Sale of fixed assets                              -           -              4,000
 Purchase of equipment and leasehold
  improvements                                     -           -         (1,255,237)

   Net Cash (Used) by Investing Activities         -           -         (1,262,162)

CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from debentures                            -           -        1,750,000
 Proceeds from stock issuance                        -           -          212,984
 Sale warrants                                       -           -              100
 Exercise of warrants                                -           -          210,724

   Net Cash Provided by Financing Activities         -           -        2,173,808

INCREASE (DECREASE) IN CASH AND
 CASH EQUIVALENTS                                 (433)      1,968          237,238

CASH AND CASH EQUIVALENTS AT
 BEGINNING OF PERIOD                           237,671     232,783               -

CASH AND CASH EQUIVALENTS AT END OF
 PERIOD                                       $237,238    $234,751     $    237,238
</TABLE>

                                5
<PAGE>


               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
              Statements of Cash Flows (Continued)
                           (Unaudited)


                                                                   From
                                                              Inception on
                                                       	   December 4,
                               For the Three Months Ended        1987 to
                                       March 31,                 March 31,
                                   2001         2000               2001

SUPPLEMENTAL CASH FLOW INFORMATION

 Cash paid for interest           $    -         $    -         $     418
 Cash paid for taxes              $    -         $    -         $       -

NON-CASH INVESTING ACTIVITIES

 Sale of subsidiary (Note 6)      $    -         $    -        $2,023,767


                                6
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
              March 31, 2001 and December 31, 2000


NOTE 1 - ORGANIZATION AND CORPORATE HISTORY

       The Company was incorporated in the State of Nevada on
       December 4, 1987, under the name of Quantus Capital, Inc.
       Since its inception it has not engaged in a significant
       business activity and is considered to be a development
       stage company.  The articles of incorporation of the
       Company state that its purpose is to engage in the
       business of making investments and acquisition of assets,
       properties and businesses and to engage in any and all
       other lawful business.

       Pursuant to a special meeting of shareholders held on
       March 9, 1992, the Company made the following changes:
       (1) To issue 1,556,000 shares of stock to acquire 100% of
       the outstanding shares of 127 Main Street Corporation,
       (the former Subsidiary) a Delaware Corporation.  (2)
       Adopted a plan of recapitalization whereby the issued and
       outstanding shares of the Company were reverse split on a
       one for five basis.  The shares outstanding were reduced
       from 7,780,000 to 1,556,000.  (3) The articles of
       incorporation were amended changing the name to Red Horse
       Entertainment Corporation.  All references to number of
       shares have been retroactively restated to reflect the
       reverse stock split.

       During September 1992, the former Subsidiary began
       operating a casino in Central City, Colorado,
       subsequently operations were terminated (Note 6).

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       a.  Recognition of Income

       The Company recognizes income and expenses on the accrual
       basis of accounting.  The fiscal year of the Company ends
       on December 31.

       b.  Basic Loss Per Share

The  computation of basic loss per share of common stock is based
on  the  weighted average number of shares issued and outstanding
during the period of the financial statements as follows:

                                                 	  March 31,
                                         		       2001      2000

        Numerator - loss                            $   (433)  $  437)
        Denominator - weighted average number of
          shares outstanding                         455,073   455,073

        Loss per share                              $  (0.00) $ (0.00)

                                7
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
              March 31, 2001 and December 31, 2000


NOTE  2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

        c.  Provision for Taxes

        No provision for taxes has been recorded due to
        operating losses at December 31, 1994, 1993 and 1992.
        The Company has net operating loss carryovers for both
        book and tax purposes of approximately $191,000 which
        expire in 2007 and 2008.  The potential tax benefit of
        the loss carryovers has been offset in full by a
        valuation allowance.

        d.  Cash and Cash Equivalents

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

        e.  Estimates

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

        f.  Unaudited Financial Statements

        The accompanying unaudited financial statements include
        all of the adjustments, which, in the opinion of
        management, are necessary for a fair presentation.  Such
        adjustments are of a normal recurring nature.

NOTE 3 - PROPERTY AND EQUIPMENT

        Property and equipment consists of the following:

                                             March 31,       December 31,
                                              2001              2000
                                           (Unaudited)

        Office equipment                    $ 1,071    	   $ 1,071

        Less accumulated depreciation        (1,071)            (1,071)

               Total Property and Equipment $     -            $     -

        Equipment is being depreciated over eight years using
        the straight-line method.  Depreciation expense for the
        year ending December 31, 2000 and the period ending
        March 31, 2001 was $-0- and $-0-, respectively.

                                8
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
              March 31, 2001 and December 31, 2000

NOTE 4 - PUBLIC OFFERING

        In 1988, the Company sold 38,537 units to the general
        public.  Each unit consisted of one share of common
        stock and one "A" warrant that could be used to purchase
        one share of common stock for $22.50 per share within
        two years of the effective date of the offering, and one
        "B" warrant that could have been used to purchase one
        share of common stock for $37.50 per share, which
        expired November 8, 1993.  The Company received cash of
        $289,040 as a result of this public offering.

NOTE 5 - WARRANTS OUTSTANDING

        As a result of the Company's public offering, the
        underwriter purchased a warrant that entitles him to
        purchase 3,853 units at a price of $9.375 per unit.

        In conjunction with the Company's acquisition of 127
        Main Street Corporation, the shareholders of 127 Main
        Street Corporation were granted warrants or options to
        purchase an aggregate of 453,093 shares of common stock
        of the parent Company for a period of five years at a
        price of $9.00 per share.  As of December 31, 1996,
        351,212 warrants have been exercised and the Company has
        received cash of $210,724.

NOTE 6 - DISCONTINUED OPERATIONS

        On September 17, 1993, the Company decided to terminate
        the operations of its former subsidiary, 127 Main Street
        Corporation, and the casino operations located at 127
        Main Street, Central City, Colorado.  Cost over runs
        resulting from site conditions made it economically
        unfeasible to continue operations.  Consequently, the
        facility was abandoned and all lease options and
        improvements were lost.  The following is a summary of
        income (loss) from operations of 127 Main Street
        Corporation:

               Revenue - 1992                              $   40,029
               Revenue - 1993                                   4,982

                Total Revenue                                  45,011

               Operating expenses - 1992                      670,363
               Operating expenses - 1993                      285,962

                Total Operating Expenses                      956,325

                  Loss from Discontinued Operations        $ (911,314)

               Write off of assets - 1992                  $(1,246,097)
               Gain on assumption of debt - 1993             2,022,287

                Gain on Disposal of Discontinued Operations  $ 776,190

                                9
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
              March 31, 2001 and December 31, 2000


NOTE 7 - DISPOSAL OF SUBSIDIARY-RELATED PARTY TRANSACTION

        On March 19, 1994, the Company entered into a stock
        purchase agreement whereby two officers of the Company
        purchased all of the outstanding shares of the Company's
        former subsidiary, 127 Main Street Corporation.  The
        shares were sold for the nominal amount of $500.

NOTE 8 - REVERSE STOCK SPLIT

        On August 2, 1993, the shareholders of the Company
        approved a 1-for-30 reverse stock split.  The financial
        statements have been restated to reflect this change
        retroactively to the beginning of the periods presented.

NOTE 9 - GOING CONCERN

        The Company's financial statements are prepared using
        generally accepted accounting principles applicable to a
        going concern which contemplates the realization of
        assets and liquidation of liabilities in the normal
        course of business.  However, the Company does not have
        significant cash or other material assets, nor does it
        have an established source of operating revenues
        sufficient to cover its operating costs and to allow it
        to continue as a going concern.  It is the intent of the
        Company to seek a merger with an existing, operating
        company.  In the interim, shareholders of the Company
        have committed to meeting its minimal operating
        expenses.

NOTE 10 - STOCK OPTIONS

        On February 1, 1994, the Company issued options to two
        of its officers, for each one to purchase 25,000 shares
        of common stock at a price of $0.50 per share.  The
        option is for a term of five years.  At March 31, 2001,
        all options have expired.

NOTE 11 -      CONCENTRATIONS OF RISK

        The Company maintains a money market investment account
        which accounts for $230,880 of the balance of cash.  The
        account is not insured by the FDIC, nor is it guaranteed
        by the bank.  The investment is subject to investment
        risk, including potential principle loss.

                               10
<PAGE>

                             ITEM 2.

             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION OR PLAN OF OPERATION


Three Month periods Ended March 31, 2001 and 2000

The Company had no revenue from continuing operations for the
three-month periods ended March 31, 2001 and 2000.

General and administrative expenses for the three month periods
ended March 31, 2001 and 2000, were $3,644 and $3,303,
respectively, which consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs.

Interest income in the three-month periods ended March 31, 2001
and 2000, was $3,211 and $2,866, respectively.  As a result of
the foregoing factors, the Company realized a net loss of $433
for the three months ended March 31, 2001, as compared to a net
loss of $437 for the same period in 2000.

Liquidity and Capital Resources

At March 31, 2001, the Company had working capital of
approximately $237,238, as compared to $237,671 at December 31,
2000.  Working capital as of both dates consisted substantially
of short-term investments, and cash and cash equivalents.
Management believes that the Company has sufficient cash and
short-term investments to meet the anticipated needs of the
Company's operations through at least the next 12 months.
However, there can be no assurances to that effect, as the
Company has no significant revenues and the Company's need for
capital may change dramatically if it acquires an interest in a
business opportunity during that period.

The Company's current operating plan is to (i) handle the
administrative and reporting requirements of a public company,
and (ii) search for potential businesses, products, technologies
and companies for acquisition.  At present, the Company has no
understandings, commitments or agreements with respect to the
acquisition of any business venture, and there can be no
assurance that the Company will identify a business venture
suitable for acquisition in the future.  Further, there can be no
assurance that the Company would be successful in consummating
any acquisition on favorable terms or that it will be able to
profitably manage any business venture it acquires.

Forward-Looking Statement Notice

     When used in this report, the words "may," "will," "expect,"
"anticipate," "continue," "estimate," "project," "intend," and
similar expressions are intended to identify forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934 regarding events, conditions, and financial trends that may
affect the Company's future plans of operations, business
strategy, operating results, and financial position.  Persons
reviewing this report are cautioned that any forward-looking
statements are not guarantees of future performance and are
subject to risks and uncertainties and that actual results may
differ materially from those included within the forward-looking
statements as a result of various factors.

                               11
<PAGE>

                   PART II.  OTHER INFORMATION

Exhibits and Reports on Form 8-K.

     Exhibits:  none

     Reports on Form 8-K:  none

                         SIGNATURES

     In accordance with the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.

                         RED HORSE ENTERTAINMENT CORPORATION

Date:  May 10, 2001      By: /s/ Jack Gertino, Secretary

                               12
<PAGE>