# 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
        September 30, 2004
| |                                                          

|        |                                                                                                 
|------- | ------------------------------------------------------------------------------------------------
|[     ] | 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
        Incorporation or Organization) |  | (IRS Employer Identification 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 September 30,
2004, there were 455,073 shares of common stock outstanding.

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

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FORM 10-QSB
        RED HORSE ENTERTAINMENT CORPORATION

INDEX

| |  |     
| |  | ----
| |  | Page
| |  |     

|         |                                                                                                                                                                               |   
|-------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --
|PART I.  | Item 1.  Financial Information                                                                                                                                                | 3 
|         |                                                                                                                                                                               |   
|         | Balance Sheets as of September 30, 2004 (Unaudited) and
         December 31, 2003                                                                                            | 3 
|         |                                                                                                                                                                               |   
|         | Statements of Operations for the Three Months and Nine Months Ended September
30, 2004 and 2003 and From Inception on December 4, 1987 Through September 30, 2004 (Unaudited) | 4 
|         |                                                                                                                                                                               |   
|         | Statements of Stockholders' Equity (Deficit) From Inception
        on December 4, 1987 through September 30, 2004                                                            | 5 
|         |                                                                                                                                                                               |   
|         | Statements of Cash Flows for the Nine Months Ended
        September 30, 2004 and 2003 and From Inception onDecember 4, 1987 Through September 30, 2004 (Unaudited)           | 8 
|         |                                                                                                                                                                               |   
|         | Notes to the Financial Statements                                                                                                                                             | 10
|         |                                                                                                                                                                               |   
|         | Item 2.  Management's Discussion and Analysis or
        Plan of Operation                                                                                                    | 11
|         |                                                                                                                                                                               |   
|         | Item 3.  Controls and Procedures                                                                                                                                              | 11
|         |                                                                                                                                                                               |   
|PART II. | Other Information                                                                                                                                                             | 12
|         |                                                                                                                                                                               |   
|         | Item 6.  Exhibits and Reports on Form 8-K                                                                                                                                     | 12
|         |                                                                                                                                                                               |   
|         | Signatures                                                                                                                                                                    | 12

2

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Part IItem 1.  Financial Statements

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

ASSETS

|                     | September 30,
2004 | December 31,
2003
|-------------------- | ------------------ | -----------------
|
|CURRENT ASSETS       |                    |                  
|                    
|Cash                 |                    | $ 212,546        
|                    
|Total Current Assets |                    | 212,546          
|                    
|TOTAL ASSETS         |                    | $ 212,546        
|                    
|                    

|                                    
|------------------------------------
|LIABILITIES AND STOCKHOLDERS' EQUITY

|CURRENT LIABILITIES                                  | 
|---------------------------------------------------- | 
|                                                    
|Accrued compensation                                 | 
|                                                    
|Total Current Liabilities                            | 
|                                                    
|STOCKHOLDERS' EQUITY                                 | 
|                                                    
|Common stock: 50,000,000 shares authorized at $0.001 | 
|par value; 455,073 shares issued and outstanding     | 
|Additional paid-in capital                           | 
|Deficit accumulated during the development stage     | 
|                                                    
|Total Stockholders' Equity                           | 
|                                                    
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           | 
|                                                    

The accompanying notes are an integral part of these financial statements

3

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

|                        | For the Three
Months Ended
September 30, | For the Nine
Months Ended
September 30, | From
Inception on
December 4,
1987 to
September 30,
|----------------------- | ---------------------------------------- | --------------------------------------- | ---------------------------------------------------
|
|REVENUES                |                                          |                                         | $                                                  
|                       
|EXPENSES                |                                          |                                        
|                       
|Officer compensation    |                                          |                                         |                                                    
|Bad debt expense        |                                          |                                         |                                                    
|Outside services        |                                          |                                         |                                                    
|Professional fees       |                                          |                                         |                                                    
|Rent                    |                                          |                                         |                                                    
|Travel                  |                                          |                                         |                                                    
|Administrative expenses |                                          |                                         |                                                    
|Depreciation            |                                          |                                         |                                                    
|Amortization            |                                          |                                         |                                                    
|Interest                |                                          |                                         |                                                    
|                       
|Total Expenses          |                                          |                                         |                                                    
|                       
|OTHER INCOME            |                                          |                                        
|                       
|Interest income         |                                          |                                         |                                                    
|                       
|Total Other Income      |                                          |                                         |                                                    
|                       
|NET LOSS BEFORE         |                                          |                                        
|DISCONTINUED            |                                          |                                        
|OPERATIONS              |                                          |                                         |                                                    
|                       
|LOSS FROM               |                                          |                                        
|DISCONTINUED            |                                          |                                        
|OPERATIONS              |                                          |                                         |                                                    
|                       
|GAIN ON DISPOSAL OF     |                                          |                                        
|DISCONTINUED            |                                          |                                        
|OPERATIONS              |                                          |                                         |                                                    
|                       
|NET LOSS                |                                          |                                         | $                                                  
|                       
|BASIC LOSS PER SHARE    |                                          |                                         | $                                                  
|                       
|WEIGHTED AVERAGE        |                                          |                                        
|SHARES OUTSTANDING      |                                          |                                         |                                                    
|                       

The accompanying notes are an integral part of these financial statements

4



RED HORSE ENTERTAINMENT
CORPORATION(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)(From Inception on December 4, 1987 through September 30, 2003

|                                 | Common Stock | Additional
Paid-in | Deficit
Accumulated
During The
Development
|-------------------------------- | ------------ | ------------------ | ------------------------------------------
|
|Balance, December 4, 1987        |              |                    |                                           
|                                
|Shares issued to incorporators   |              |                   
|for cash $0.60 per share         |              |                    |                                           
|                                
|Net loss for period ended        |              |                   
|December 31, 1987                |              |                    |                                           
|                                
|Balance, December 31, 1987       |              |                    |                                           
|                                
|Shares issued at public offering |              |                   
|$7.50 per share restated         |              |                    |                                           
|                                
|Cost of public offering          |              |                    |                                           
|                                
|Sale of warrants                 |              |                    |                                           
|                                
|Net loss for year ended          |              |                   
|December 31, 1988                |              |                    |                                           
|                                
|Balance, December 31, 1988       |              |                    |                                           
|                                
|Net loss for year ended          |              |                   
|December 31, 1989                |              |                    |                                           
|                                
|Balance, December 31, 1989       |              |                    |                                           
|                                
|Net loss for year ended          |              |                   
|December 31, 1990                |              |                    |                                           
|                                
|Balance, December 31, 1990       |              |                    |                                           
|                                
|Net loss for year ended          |              |                   
|December 31, 1991                |              |                    |                                           
|                                
|Balance, December 31, 1991       |              |                    |                                           
|                                

The accompanying notes are an integral part of these financial statements

5

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RED HORSE ENTERTAINMENT
CORPORATION(A Development Stage Company)
Statements of Stockholders' Equity (Deficit) (Continued)(From Inception on December 4, 1987 through September 30, 2003

|                                 | Common Stock | Additional
Paid-in | Deficit
Accumulated
During the
Development
|-------------------------------- | ------------ | ------------------ | ------------------------------------------
|
|Balance, December 31, 1991       |              |                    |                                           
|                                
|Shares issued to acquire 100% of |              |                   
|127 Main Street, Inc.            |              |                    |                                           
|                                
|Net loss for year ended          |              |                   
|December 31, 1992                |              |                    |                                           
|                                
|Balance, December 31, 1992       |              |                    |                                           
|                                
|Adjustment for fractional        |              |                   
|shares in 30-for-1 reverse split |              |                    |                                           
|                                
|Exercise of warrants             |              |                    |                                           
|                                
|Net income for year ended        |              |                   
|December 31, 1993                |              |                    |                                           
|                                
|Balance, December 31, 1993       |              |                    |                                           
|                                
|Net income for year ended        |              |                   
|December 31, 1994                |              |                    |                                           
|                                
|Balance, December 31, 1994       |              |                    |                                           
|                                
|Net income for year ended        |              |                   
|December 31, 1995                |              |                    |                                           
|                                
|Balance, December 31, 1995       |              |                    |                                           
|                                
|Net income for year ended        |              |                   
|December 31, 1996                |              |                    |                                           
|                                
|Balance, December 31, 1996       |              |                    |                                           
|                                
|Net loss for the year ended      |              |                   
|December 31, 1997                |              |                    |                                           
|                                
|Balance, December 31, 1997       |              |                    |                                           
|                                

The accompanying notes are an integral part of these financial statements

6



RED HORSE ENTERTAINMENT
CORPORATION(A Development Stage Company)
Statements of Stockholders' Equity (Deficit) (Continued)(From Inception on December 4, 1987 through September 30, 2003

|                                   | Common Stock | Additional
Paid-in | Deficit
Accumulated
During the
Development
|---------------------------------- | ------------ | ------------------ | ------------------------------------------
|
|Balance, December 31, 1997         |              |                    |                                           
|                                  
|Net income for the year ended      |              |                   
|December 31, 1998                  |              |                    |                                           
|                                  
|Balance, December 31, 1998         |              |                    |                                           
|                                  
|Net income for the year ended      |              |                   
|December 31, 1999                  |              |                    |                                           
|                                  
|Balance, December 31, 1999         |              |                    |                                           
|                                  
|Net income for the year ended      |              |                   
|December 31, 2000                  |              |                    |                                           
|                                  
|Balance, December 31, 2000         |              |                    |                                           
|                                  
|Net loss for the year ended        |              |                   
|December 31, 2001                  |              |                    |                                           
|                                  
|Balance, December 31, 2001         |              |                    |                                           
|                                  
|Net loss for the year ended        |              |                   
|December 31, 2002                  |              |                    |                                           
|                                  
|Balance, December 31, 2002         |              |                    |                                           
|                                  
|Net loss for the year ended        |              |                   
|December 31, 2003                  |              |                    |                                           
|                                  
|Balance, December 31, 2003         |              |                    |                                           
|                                  
|Net loss for the nine months ended |              |                   
|September 30, 2004 (unaudited)     |              |                    |                                           
|                                  
|Balance, September 30, 2004        |              |                   
|(unaudited)                        |              |                    |                                           
|                                  

The accompanying notes are an integral part of these financial statements

7

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

|                                              | For the Nine Months Ended
September 30, | From
Inception on
December 4,
1987 to
September 30,
|--------------------------------------------- | --------------------------------------- | ---------------------------------------------------
|
|CASH FLOWS FROM OPERATING ACTIVITIES          |                                         |                                                    
|                                             
|Net loss                                      |                                         |                                                    
|Adjustments to reconcile net loss to net      |                                         |                                                    
|cash provided (used) by operating activities: |                                         |                                                    
|Depreciation                                  |                                         |                                                    
|Amortization                                  |                                         |                                                    
|Loss on disposal of discontinued operations   |                                         |                                                    
|Changes in operating assets and liabilities:  |                                         |                                                    
|Increase in accounts payable - related party  |                                         |                                                    
|Increase in accrued expenses                  |                                         |                                                    
|                                             
|Net Cash Used by Operating Activities         |                                         |                                                    
|                                             
|CASH FLOWS FROM INVESTING ACTIVITIES          |                                         |                                                    
|                                             
|Organization expenses                         |                                         |                                                    
|Sale of fixed assets                          |                                         |                                                    
|Purchase of equipment and leasehold           |                                         |                                                    
|improvements                                  |                                         |                                                    
|                                             
|Net Cash Used by Investing Activities         |                                         |                                                    
|                                             
|CASH FLOWS FROM FINANCING ACTIVITIES          |                                         |                                                    
|                                             
|Proceeds from debentures                      |                                         |                                                    
|Proceeds from stock issuance                  |                                         |                                                    
|Sale warrants                                 |                                         |                                                    
|Exercise of warrants                          |                                         |                                                    
|                                             
|Net Cash Provided by Financing Activities     |                                         |                                                    
|                                             
|INCREASE (DECREASE) IN CASH                   |                                         |                                                    
|                                             
|CASH AT BEGINNING OF PERIOD                   |                                         |                                                    
|                                             
|CASH AT END OF PERIOD                         |                                         |                                                    
|                                             

The accompanying notes are an integral part of these financial statements

8

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

|                                   | For the Nine Months Ended
September 30, | From
Inception on
December 4,
1987 to
September 30,
|---------------------------------- | --------------------------------------- | ---------------------------------------------------
|
|SUPPLEMENTAL CASH FLOW INFORMATION |                                         |                                                    
|                                  
|Cash paid for interest             |                                         |                                                    
|Cash paid for taxes                |                                         |                                                    
|                                  
|NON-CASH INVESTING ACTIVITIES      |                                         |                                                    
|                                  
|Sale of subsidiary                 |                                         |                                                    

The accompanying notes are an integral part of these financial statements

9

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RED HORSE ENTERTAINMENT
CORPORATION(A Development Stage Company)
Notes to the Financial Statements September 30, 2004 and
December 31, 2003

NOTE  1 -
    BASIS OF FINANCIAL STATEMENT PRESENTATION

| | The
accompanying unaudited financial statements have been prepared by the Company pursuant to
the rules and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States of America have been
condensed or omitted in accordance with such rules and regulations. The information
furnished in the interim financial statements include normal recurring adjustments and
reflects all adjustments, which, in the opinion of management, are necessary for a fair
presentation of such financial statements. Although management believes the disclosures
and information presented are adequate to make the information not misleading, it is
suggested that these interim financial statements be read in conjunction with the
Companys most recent audited financial statements and notes thereto included in its
December 31, 2003 Annual Report on Form 10-KSB. Operating results for the nine months
ended September 30, 2004 are not necessarily indicative of the results that may be
expected for the year ending December 31, 2004.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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# Item 2.
Managements Discussion and Analysis or Plan of Operation

# Nine-Month Periods Ended
September 30, 2004 and 2003

| | The Company had no revenue from continuing operations for the nine-month periods ended September 30,
2004 and 2003.
| | -------------------------------------------------------------------------------------------------------------------

| | General and administrative expenses for the nine-month periods ended September 30, 2004 and 2003,
consisted of general corporate administration, officer compensation, legal and
professional expenses, and accounting and auditing costs. These expenses were $28,099 and
$26,716 for the nine-month periods ended September 30, 2004 and 2003, respectively.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Interest income in the nine-month periods ended September 30, 2004 and 2003, was $1,171 and $656,
respectively. As a result of the foregoing factors, the Company realized a net loss of
$26,928 for the nine months ended September 30, 2004, as compared to a net loss of
$26,060 for the same period in 2003.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Liquidity and Capital
Resources

| | At September 30, 2004, the Company
had working capital of approximately $146,546, as compared to $173,474 at December 31,
2003. Working capital as of both dates consisted of cash and cash equivalents.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Management believes that the Company
has sufficient cash 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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Item 3. Controls and
Procedures

| | As of September 30, 2004 an
evaluation was performed under the supervision and with the participation of the
Companys management, including the Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the design and operation of the Companys disclosure
controls and procedures. Based on that evaluation, the Companys management,
including the Chief Executive Officer and Chief Financial Officer, concluded that the
Companys disclosure controls and procedures were effective. There have been no
significant changes in the Companys internal controls or in other factors that could
significantly affect internal controls subsequent to the date of the evaluation.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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# PART II. OTHER
INFORMATION

# Item 6. Exhibits and
Reports on Form 8-K

| | Reports on
Form 8-K: None.
| | --------------------------

| | Exhibits: Copies of the
following documents are included or furnished as exhibits to this report pursuant to Item
601 of Regulation S-B.
| | ----------------------------------------------------------------------------------------------------------------------------------------

|           |                                                                                                                                                                  
|---------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|          
|ExhibitNo. | Title of Document                                                                                                                                                
|           |                                                                                                                                                                  
|31.1       | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
                      Act of 2002                                     
|           |                                                                                                                                                                  
|32.1       | Certifications  of the Chief  Executive  Officer  and Chief  Financial  Officer  pursuant  to
                      Section 906 of the Sarbanes-Oxley Act of 2002

# 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:  November 12, 2004 |  | By: /s/ Wayne M. Rogers              
|                         |  | Chief Executive and Financial Officer

12

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