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 June 30, 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
incorporation or organization)                 No.)

           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 June 30, 2001, there were 455,073
shares of common stock outstanding.

Transitional Small Business Format:  Yes [   ]  No [ X ]

<PAGE>
                           FORM 10-QSB
               RED HORSE ENTERTAINMENT CORPORATION

                              INDEX
                                                                 Page

PART I.   Financial Information                                    3

          Balance Sheets as of June 30, 2001 and December 31, 2000 3

          Statements  of Operations for  the  Three Months and     4
          Six  Months Ended June 30, 2001 and  2000 and
          From Inception on December 4, 1987 Through June 30, 2001

          Statements of Stockholders' Equity From Inception        5
          on December 4, 1987 through June 30, 2001

          Statements  of  Cash Flows  for  the  Six Months Ended   8
          June 30, 2001 and 2000 and From Inception on
          December 4, 1987 Through June 30, 2001

          Notes to the Financial Statements                       10

          Management's Discussion and Analysis of Financial       14
          Condition

PART II.  Other Information                                       14

          Exhibits and Reports on Form 8-K                        14

          Signatures                                              15

                                     2
<PAGE>


                             PART I.
                 Item 1.  Financial Information

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


                             ASSETS

                                         June 30,          December 31,
                                           2001               2000
                                         (Unaudited)

CURRENT ASSETS

 Cash                                    $  238,257    $ 237,671

  Total Current Assets                      238,257      237,671

PROPERTY AND EQUIPMENT (Note 3)                   -             -

  TOTAL ASSETS                           $  238,257     $ 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                         (185,551)   (186,137)

  Total Stockholders' Equity                 238,257     237,671

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $238,257   $ 237,671

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

                                     3
<PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                      Statements of Operations
                             (Unaudited)
<TABLE>
<CAPTION>
                                                                            From
                                                                        Inception on
                                 For the                For the          October 24,
                           Three Months Ended      Six Months Ended     1986 Through
                                 June 30,               June 30,          June 30,
                              2001      2000        2001        2000        2001
<S>                       <C>        <C>        <C>         <C>         <C>
REVENUES                  $      -   $      -   $       -   $       -   $        -

EXPENSES

 Bad debt expense                -          -           -           -       35,000
 Outside services                -          -         765         505       10,688
 Professional fees           2,123        863       4,147       3,615       86,211
 Rent                            -          -           -           -        6,545
 Travel                          -          -           -           -       18,336
 Administrative expenses        41         49         896          95       29,758
 Depreciation                    -          -                       -        1,546
 Amortization                    -          -           -           -          472
 Interest                        -          -           -           -          418

  Total Expenses             2,164        912       5,808       4,215      188,974

OTHER INCOME

 Interest income             3,183      3,116       6,394       5,982      138,547

  Total Other Income         3,183      3,116       6,394       5,982      138,547

Income (Loss) Before
 Discontinued Operations     1,019      2,204         586       1,767      (50,427)

Loss From Discontinued
 Operations (Note 6)             -          -           -           -     (911,314)

Gain on Disposal of
 Discontinued Operations         -          -           -           -      776,190

NET INCOME (LOSS)         $  1,019   $  2,204   $     586   $   1,767   $ (185,551)

NET INCOME PER SHARE      $   0.00   $   0.00   $    0.00   $    0.00

WEIGHTED AVERAGE
 SHARES OUTSTANDING        455,073    455,073     455,073     455,073
</TABLE>

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

                                     4
<PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                 Statements of Stockholders' Equity
      From Inception on December 4, 1987 through June 30, 2001
<TABLE>
<CAPTION>
                                                                        Deficit
                                                                      Accumulated
                                                           Additional  During The
                                       Common Stock         Paid-in   Development
                                    Shares      Amount      Capital       Stage
  <S>                               <C>       <C>         <C>         <C>
  Balances, December 4, 1987              -   $       -   $       -   $        -

  Shares issued to
   incorporators for cash
   $0.60 per share - restated        13,333          13       7,987            -

  Net loss for period ended
   December 31, 1987                      -           -           -         (690)

  Balances, December 31, 1987        13,333          13       7,987         (690)

  Shares issued at public offering
   $7.50 per share restated          38,537          39     289,001            -

  Cost of public offering                 -           -     (84,056)           -

  Sale of warrants                        -           -         100            -

  Net loss for year ended
   December 31, 1988                      -           -           -       (4,538)

  Balances, December 31, 1988        51,870          52     213,032       (5,228)

  Net loss for year ended
   December 31, 1989                      -           -           -       (5,073)

  Balances, December 31, 1989        51,870          52     213,032      (10,301)

  Net loss for year ended
   December 31, 1990                      -           -           -      (46,921)

  Balances, December 31, 1990        51,870          52     213,032      (57,222)

  Net loss for year ended
   December 31, 1991                      -           -           -       (8,472)

  Balances, December 31, 1991     $  51,870   $      52   $ 213,032    $ (65,694)
</TABLE>


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

                                     5
<PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                   (A Development Stage Company)
      Statements of Stockholders' Equity (Deficit) (Continued)
      From Inception on December 4, 1987 through June 30, 2001
<TABLE>
<CAPTION>

                                                                   Deficit
                                                                 Accumulated
                                                     Additional   During The
                              Common Stock            Paid-in    Development
                               Shares     Amount      Capital       Stage
<S>                           <C>       <C>       <C>           <C>
Balances, December 31, 1991    51,870   $    52   $   213,032   $  (65,694)

Shares issued to acquire
 100% of 127 Main
 Street, Inc.                  51,869        52          (52)            -

Net loss for year ended
 December 31, 1992                  -         -            -     (1,877,973)

Balances, December 31, 1992   103,739       104      212,980     (1,943,667)

Adjustment for fractional
 shares in 30-for-1
 reverse split                    122         -            -              -

Exercise of warrants          351,212       351      210,373              -

Net income for year ended
 December 31, 1993                 -          -            -      1,731,675

Balances, December 31, 1993  455,073        455      423,353       (211,992)

Net income for year ended
 December 31, 1994                 -          -            -          2,917

Balances, December 31, 1994  455,073        455      423,353       (209,075)

Net income for year ended
 December 31, 1995                 -          -            -          8,222

Balances, December 31, 1995  455,073        455      423,353       (200,853)

Net income for year ended
 December 31, 1996                 -          -            -          7,486

Balances, December 31, 1996  455,073        455      423,353       (193,367)

Net loss for the year ended
 December 31, 1997                 -          -            -           (683)

Balance, December 31, 1997   455,073   $    455   $  423,353   $   (194,050)
</TABLE>


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

                                     6
<PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                   (A Development Stage Company)
      Statements of Stockholders' Equity (Deficit) (Continued)
      From Inception on December 4, 1987 through June 30, 2001
                                                                  Deficit
                                                                Accumulated
                                                  Additional     During The
                                  Common Stock      Paid-in     Development
                               Shares     Amount    Capital         Stage

Balance, December 31, 1997     455,073   $   455   $ 423,353   $ (194,050)

Net income for the year ended
 December 31, 1998                   -         -           -        2,753

Balance, December 31, 1998     455,073       455     423,353     (191,297)

Net income for the year ended
 December 31, 1999                   -         -           -           83

Balance, December 31, 1999     455,073       455     423,353     (191,214)

Net income for the year ended
 December 31, 2000                   -         -           -        5,077

Balance, December 31, 2000     455,073       455     423,353     (186,137)

Net income for the six months
 ended June 30, 2001,
 (unaudited)                         -         -           -          586

Balance, June 30, 2001
 (unaudited)                   455,073   $   455   $ 423,353   $ (185,551)


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

                                     7
<PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                      Statements of Cash Flows
                             (Unaudited)
<TABLE>
<CAPTION>
                                                                               From
                                                                            Inception on
                                                                             December 4,
                                                 For the Six Months Ended     1987 to
                                                         June 30,             June 30,
                                                    2001         2000           2001
<S>                                            <C>           <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES

 Net loss                                      $       586   $     1,767   $  (185,551)
 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 (decrease) in accounts payable                -           311             -
  Increase in accrued expenses                           -             -       286,334

   Net Cash Provided (Used) by Operating
    Activities                                         586         2,078      (673,389)

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                                      586         2,078       238,257

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

CASH AND CASH EQUIVALENTS AT END OF
 PERIOD                                          $ 238,257   $   234,861   $   238,257
</TABLE>

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

                                     8
<PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                Statements of Cash Flows (Continued)
                             (Unaudited)
                                                                From
                                                            Inception on
                                                            December 4,
                                  For the Six Months Ended    1987 to
                                          June 30,            June 30,
                                      2001         2000         2001

SUPPLEMENTAL CASH FLOW INFORMATION

 Cash paid for interest            $       -   $      -   $      2,133
 Cash paid for taxes               $       -   $      -   $          -

NON-CASH INVESTING ACTIVITIES

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


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

                                     9
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
               June 30, 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  an  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 Earnings Per Share

       The  computation  of basic earnings 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:

                                              June 30
                                           2001      2000

Numerator - loss                        $    586  $   1,767
Denominator - weighted average number of
 shares outstanding                      455,073    455,073

 Earnings per share                     $   0.00  $    0.00

                                     10
<PAGE>


               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
               June 30, 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:

                                         June 30, 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  June  30,
       2001 was $-0- and $-0-, respectively.

                                     11
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
               June 30, 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


                                     12
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
               June 30, 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 June 30,  2001,
        all options have expired.

NOTE 11 - CONCENTRATIONS OF RISK

        The  Company maintains a money market investment  account
        which accounts for $238,000 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.

                                     13
<PAGE>

                             ITEM 2.
             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION OR PLAN OF OPERATION

Six-Month Periods Ended June 30, 2001 and 2000

The Company had no revenue from continuing operations for the six-
month periods ended June 30, 2001 and 2000.

General and administrative expenses for the six-month periods
ended June 30, 2001 and 2000, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs.  These expenses were $5,808 and $4,215 for
the six-month periods ended June 30, 2001 and 2000, respectively.

Interest income in the six-month periods ended June 30, 2001 and
2000, was $6,394 and $5,982, respectively.  As a result of the
foregoing factors, the Company realized a net gain of $586 for
the six months ended June 30, 2001, as compared to a net gain of
$1,767 for the same period in 2000.

Liquidity and Capital Resources

At June 30, 2001, the Company had working capital of
approximately $238,257, 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.

                   PART II.  OTHER INFORMATION

Exhibits and Reports on Form 8-K.

     Reports on Form 8-K:  No reports on Form 8-K were filed by
the Company during the quarter ended June 30, 2001.

     Exhibits:  None.

                                     14
<PAGE>

                           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:  July 31, 2001          By: /s/ Jack Gertino,Secretary

                                     15
<PAGE>