# 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, 2005
| |                                                      

|        |                                                                                                 
|------- | ------------------------------------------------------------------------------------------------
|[     ] | 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 March 31, 2005, there were 455,073 shares of common stock outstanding.

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

---



FORM 10-QSB
        RED HORSE ENTERTAINMENT CORPORATION

INDEX

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

|         |                                                                                                                                                              |   
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------ | --
|PART I.  | Item 1.  Financial Information                                                                                                                               | 3 
|         |                                                                                                                                                              |   
|         | Balance Sheets as of March 31, 2005 (Unaudited) and
         December 31, 2004                                                                               | 3 
|         |                                                                                                                                                              |   
|         | Statements of Operations for the Three MonthsEnded March 31, 2005 and 2004 and From Inception on December
        4, 1987 Through March 31, 2005 (Unaudited) | 4 
|         |                                                                                                                                                              |   
|         | Statements of Stockholders' Equity (Deficit) From Inception
        on December 4, 1987 through March 31, 2005                                               | 5 
|         |                                                                                                                                                              |   
|         | Statements of Cash Flows for the Three Months Ended
        March 31, 2005 and 2004 and From Inception onDecember 4, 1987 Through March 31, 2005 (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                                                                                                                             | 13
|         |                                                                                                                                                              |   
|PART II. | Other Information                                                                                                                                            | 13
|         |                                                                                                                                                              |   
|         | Item 6.  Exhibits                                                                                                                                            | 13
|         |                                                                                                                                                              |   
|         | Signatures                                                                                                                                                   | 14

2

---



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

ASSETS

|                                                     | March 31,2005 | December 31,2004
|---------------------------------------------------- | ------------- | ----------------
|
|CURRENT ASSETS                                       |               |                 
|                                                    
|Cash, deposits and cash equivalents                  |               |                 
|                                                    
|Total Current Assets                                 |               |                 
|                                                    
|TOTAL ASSETS                                         |               |                 
|                                                    
|                                                    
|LIABILITIES AND STOCKHOLDERS' EQUITY                
|                                                    
|CURRENT LIABILITIES                                  |               |                 
|                                                    
|Accounts payable                                     |               |                 
|Accrued interest - related party                     |               |                 
|Accrued compensation                                 |               |                 
|                                                    
|Total Current Liabilities                            |               |                 
|                                                    
|CONVERTIBLE NOTES PAYABLE - RELATED PARTY            |               |                 
|                                                    
|Total 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

---



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

|                           | For the Three Months EndedMarch 31, | FromInception onDecember 4,
        1987 toMarch 31,
|-------------------------- | ----------------------------------- | ----------------------------------------------------
|
|REVENUES                   |                                     |                                                     
|                          
|EXPENSES                   |                                     |                                                     
|                          
|Officer compensation       |                                     |                                                     
|Bad debt expense           |                                     |                                                     
|Outside services           |                                     |                                                     
|Professional fees          |                                     |                                                     
|Rent                       |                                     |                                                     
|Travel                     |                                     |                                                     
|Promotion                  |                                     |                                                     
|Administrative expenses    |                                     |                                                     
|Depreciation               |                                     |                                                     
|Amortization               |                                     |                                                     
|                          
|Total Expenses             |                                     |                                                     
|                          
|OPERATING LOSS             |                                     |                                                     
|                          
|OTHER INCOME               |                                     |                                                     
|                          
|Interest- related party    |                                     |                                                     
|Interest Income            |                                     |                                                     
|                          
|Total Other Income         |                                     |                                                     
|                          
|LOSS BEFORE                |                                     |                                                     
|DISCONTINUED OPERATIONS    |                                     |                                                     
|                          
|LOSS FROM DISCONTINUED     |                                     |                                                     
|OPERATIONS                 |                                     |                                                     
|                          
|GAIN ON DISPOSAL OF        |                                     |                                                     
|DISCONTINUED OPERATIONS    |                                     |                                                     
|                          
|NET LOSS                   |                                     |                                                     
|                          
|BASIC LOSS PER SHARE       |                                     |                                                     
|                          
|WEIGHTED AVERAGE NUMBER OF |                                     |                                                     
|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

|                                 | Common Stock | AdditionalPaid-in | DeficitAccumulatedDuring the
        Development
|-------------------------------- | ------------ | ----------------- | ------------------------------------------------
|
|Balances, December 4, 1987       |              |                   |                                                 
|                                
|Shares issued to incorporators   |              |                  
|for cash $0.60 per share         |              |                   |                                                 
|                                
|Net loss for period ended        |              |                  
|December 31, 1987                |              |                   |                                                 
|                                
|Balances, 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                |              |                   |                                                 
|                                
|Balances, December 31, 1988      |              |                   |                                                 
|                                
|Net loss for year ended          |              |                  
|December 31, 1989                |              |                   |                                                 
|                                
|Balances, December 31, 1989      |              |                   |                                                 
|                                
|Net loss for year ended          |              |                  
|December 31, 1990                |              |                   |                                                 
|                                
|Balances, December 31, 1990      |              |                   |                                                 
|                                
|Net loss for year ended          |              |                  
|December 31, 1991                |              |                   |                                                 
|                                
|Balances, December 31, 1991      |              |                   | $                                               
|                                

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

5

---



RED HORSE ENTERTAINMENT
CORPORATION(A Development Stage Company)Statements of Stockholders' Equity (Deficit) (Continued)

|                                 | Common Stock | AdditionalPaid-in | DeficitAccumulatedDuring the
        Development
|-------------------------------- | ------------ | ----------------- | ------------------------------------------------
|
|Balances, December 31, 1991      |              |                   |                                                 
|                                
|Shares issued to acquire         |              |                  
|100% of 127 Main                 |              |                  
|Street, Inc.                     |              |                   |                                                 
|                                
|Net loss for year ended          |              |                  
|December 31, 1992                |              |                   |                                                 
|                                
|Balances, December 31, 1992      |              |                   |                                                 
|                                
|Adjustment for fractional shares |              |                  
|in 30-for-1 reverse split        |              |                   |                                                 
|                                
|Exercise of warrants             |              |                   |                                                 
|                                
|Net income for year ended        |              |                  
|December 31, 1993                |              |                   |                                                 
|                                
|Balances, December 31, 1993      |              |                   |                                                 
|                                
|Net income for year ended        |              |                  
|December 31, 1994                |              |                   |                                                 
|                                
|Balances, December 31, 1994      |              |                   |                                                 
|                                
|Net income for year ended        |              |                  
|December 31, 1995                |              |                   |                                                 
|                                
|Balances, December 31, 1995      |              |                   |                                                 
|                                
|Net income for year ended        |              |                  
|December 31, 1996                |              |                   |                                                 
|                                
|Balances, 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)

|                                 | Common Stock | AdditionalPaid-in | DeficitAccumulatedDuring 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       |              |                  
|(unaudited)                      |              |                   |                                                 
|                                
|Net loss for the year ended      |              |                  
|December 31, 2004                |              |                   |                                                 
|                                
|Balance, December 31, 2004       |              |                   |                                                 
|                                
|Net loss for the three months    |              |                  
|ended March 31, 2005 (unaudited) |              |                   |                                                 
|                                
|Balance, March 31, 2005          |              |                  
|(unaudited)                      |              |                   |                                                 
|                                

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

7

---



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

|                                                  | For the Three Months EndedMarch 31, | FromInception onDecember 4,
        1987 toMarch 31,
|------------------------------------------------- | ----------------------------------- | ----------------------------------------------------
|
|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 accrued expenses and accounts payable |                                     |                                                     
|                                                 
|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 AND CASH EQUIVALENTS AT BEGINNING            |                                     |                                                     
|OF PERIOD                                         |                                     |                                                     
|                                                 
|CASH AND CASH EQUIVALENTS AT END OF               |                                     |                                                     
|PERIOD                                            |                                     |                                                     
|                                                 

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

8

---



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

|                                   | For the Three Months EndedMarch 31, | FromInception onDecember 4,
        1987 toMarch 31,
|---------------------------------- | ----------------------------------- | ----------------------------------------------------
|
|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

---



RED HORSE
ENTERTAINMENT CORPORATION(A Development Stage Company)Notes to the Financial
StatementsMarch 31, 2005 and
December 31, 2004

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 includes 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,
2004 Annual Report on Form 10-KSB. Operating results for the three months ended March 30,
2005 are not necessarily indicative of the results that may be expected for the year
ending December 31, 2005.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NOTE 2  STOCK
EXCHANGE AGREEMENT

| | On
March 22, 2005 the final signatures were obtained on a Stock Exchange Agreement dated
March 8, 2005, pursuant to which Red Horse will acquire all of the issued and outstanding
capital stock of Silverstrand International Holdings Limited for 10,102,333 shares of Red
Horse common voting stock, par value $0.001. The Red Horse common stock issued to the
stockholders of Silverstrand International and their designees will represent
approximately 95.7 percent of the issued and outstanding common stock of Red Horse
immediately following the exchange. The transaction has not yet been closed.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NOTE 3  NOTES
PAYABLE  RELATED PARTY

| | At
December 31, 2004, the Company was indebted to two officers and directors of the Company
in the amount of $36,000 each for accrued compensation over the past several years. On
March 5, 2005, the Company issued to each of the officers a convertible promissory note
in the principal amount of $36,000 that matures March 5, 2007 in complete payment of
accrued compensation at December 31, 2004. Each note bears interest at the rate of six
percent per annum, and the principal is convertible to common stock of the Company at the
rate of one share for each $0.163614 of principal. Consequently, each note is convertible
to a total of 220,030 common shares of the Company. Accrued interest on the notes totaled
$320 at March 31, 2005.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

---



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

# Recent Development

| | For
the past seven years the Red Horse has had no active business operations, and has been
seeking to acquire an interest in a business with long-term growth potential. On March
22, 2005 the final signatures were obtained on a Stock Exchange Agreement dated March 8,
2005, pursuant to which Red Horse will acquire all of the issued and outstanding capital
stock of Silverstrand International Holdings Limited for 10,102,333 shares of Red Horse
common voting stock, par value $0.001. The Red Horse common stock issued to the
stockholders of Silverstrand International and their designees will represent
approximately 95.7 percent of the issued and outstanding common stock of Red Horse
immediately following the exchange.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Silverstrand
International is a closely held limited liability company organized in the Hong Kong
Special Administrative Region in The Peoples Republic of China. Through its wholly
owned operating subsidiary, Silverstrand International is engaged in the business of
private property development primarily in the city of Shenyang. Shenyang, a city in
Liaoning Province of the Peoples Republic of China, is located in the central area
of northeastern Asia, and is the central city of northeastern China. Shenyang is one of
the major cities and key industrial bases in China.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
closing of the transaction is subject to a number of conditions, including, but not
limited to:
| | ---------------------------------------------------------------------------------------------------

| |  |                                                                                                                                                                  
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Each party completing and being satisfied with the due diligence review of the other,                                                                            
| |  |                                                                                                                                                                  
| |  | Silverstrand International preparing and delivering audited financial statements in
accordance with US GAAP for the most recent year ended December 31, 2004, and
| |  |                                                                                                                                                                  
| |  | The absence prior to closing of any material change in the assets, operations, or
financial condition of either party.                                           

| | Consequently,
there is no assurance the proposed acquisition will close. Should the acquisition be
completed, there will be a substantial change in the financial condition and results of
operations of Red Horse, which can not be predicted at this time. As of the filing of
this report the transaction has not closed and is still pending.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
following discussion assumes that the acquisition of Silverstrand does not close, and Red
Horse will continue with its search for a business opportunity.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

# Plan of Operation

| | The
Company had no revenue from continuing operations for the quarters ended March 31, 2005
and 2004. The Companys plan is to seek a business venture in which to participate.
The selection of a business opportunity in which to participate is complex and extremely
risky and will be made by management in the exercise of its business judgment. There is
no assurance that the Company will be able to identify and acquire any business
opportunity that will ultimately prove to be beneficial to the Company and its
shareholders.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company anticipates that businesses for possible acquisition will be referred by various
sources, including its officers and directors, professional advisors, securities
broker-dealers, venture capitalists, members of the financial community, and others who
may present unsolicited proposals. The Company will not engage in any general
solicitation or advertising for a business opportunity, and will rely on personal
contacts of its officers and directors and their affiliates, as well as indirect
associations between them and other business and professional people. By relying on word
of mouth, the Company may be limited in the number of potential acquisitions it can
identify. While it is not presently anticipated that the Company will engage unaffiliated
professional firms specializing in business acquisitions or reorganizations, such firms
may be retained if management deems it in the best interest of the Company.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

---



| | Compensation
to a finder or business acquisition firm may take various forms, including one-time cash
payments, payments based on a percentage of revenues or product sales volume, payments
involving issuance of securities (including those of the Company), or any combination of
these or other compensation arrangements. Consequently, the Company is currently unable
to predict the cost of utilizing such services.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
activities of the Company are subject to several significant risks that arise primarily
as a result of the fact that the Company has no specific business and may acquire or
participate in a business opportunity based on the decision of management which will, in
all probability, act without the consent, vote, or approval of the Companys
shareholders. A description of the manner in which the Company will pursue the search for
and participation in a business venture is described under Item 1. Business, above.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Although
the Company has no operations, it does incur expenses in connection with complying with
reporting requirements under the Securities Exchange Act of 1934. General and
administrative expenses for the three months ended March 31, 2005 and 2004, consisted of
general corporate administration, officer compensation, legal and professional expenses,
accounting and auditing costs, and interest expense (related party) of $320. These
expenses were $14,684 and $10,514 for 2005 and 2004, respectively.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Interest
income resulted from the investment of funds in short-term, liquid cash equivalents.
Interest income was $1,037 in the first quarter of 2005 and $211 for the three months
ended March 31, 2004.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As
a result of the foregoing factors, the Company realized a net loss of $13,647 for the
three-month period ended March 31, 2005, as compared to a net loss of $10,303 for the
same period in 2004.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | At
December 31, 2004, the Company was indebted to each of Wayne M. Rogers and Jack Gertino,
both officers and directors of the Company, in the amount of $36,000 for accrued
compensation over the past several years. On March 5, 2005, the Company issued to each of
Messrs. Rogers and Gertino a convertible promissory note in the principal amount of
$36,000 that matures March 5, 2007 in complete payment of accrued compensation at
December 31, 2004. Each note bears interest at the rate of six percent per annum, and the
principal is convertible to common stock of the Company at the rate of one share for each
$0.163614 of principal. Consequently, each note is convertible to a total of 220,030
common shares of the Company. The Company recognized an expense for interest  related
party in the total amount of $320 at March 31, 2005.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | At
March 31, 2005, the Company had working capital of $197,456, compared to $139,103 at
December 31, 2004. This improvement is a result of issuing long term notes to two of our
officers and directors for current compensation payable, thereby converting $72,000 of
current liabilities to long term liabilities.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Working
capital at March 31, 2005 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 handle the administrative and reporting
requirements of a public company and 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, if at
all, or that it will be able to profitably manage the business venture it acquires.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

---



# 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 March 31, 2005 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.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PART II. OTHER
INFORMATION

# Item 6. Exhibits.

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

|        |          |                                                                                           
|------- | -------- | ------------------------------------------------------------------------------------------
|Exhibit | SEC Ref. | Title of Document                                                                         
|No.     | No.      |                                                                                           
|       
|31.1    | 31       | The certification required by Rule 13a-14(a) or Rule 15d-14(a)                            
|       
|32.1    | 32       | The certifications required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350

13

---



# 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 11, 2005 |  | By: |  | /s/ Wayne M. Rogers                                  | 
|                   |  |     |  | Wayne M. RogersChief
Executive and Financial Officer | 

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