UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One) x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For ~~x QUARTERLY REPORT~~the ~~UNDER~~quarterly ~~SECTION~~period 13ended ORJune ~~15(d)~~30, OF2005 ~~THE SECURITIES EXCHANGE ACT OF 1934~~

For the quarterly period ended September 30, 2004

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _______________ to _______________

333-62786 (Commission file number)

CANADIAN ROCKPORT HOMES INTERNATIONAL, INC.
(Exact name of small business issuer as specified in its charter)

Delaware	98-0354610
(State or other jurisdiction	(IRS Employer
of incorporation or organization)	Identification No.)

700 W. Pender Street, Suite 507 Vancouver, BC Canada V6C 1G8 (Address of principal executive offices)

(604) 669-1081 (Issuer's telephone number)

________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report)

x Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares outstanding of each of the issuer's classes of common equity. As of ~~April~~November 422, 2005 there were 16,~~243~~290,~~889~~715 shares of Common Stock issued and outstanding.

Index

		Page Number
		Page
PART I.	FINANCIAL INFORMATION	1
		Number
Item 1.	Consolidated Financial Statements	1
PART I.	FINANCIAL INFORMATION	3
	Consolidated Balance Sheets	2
Item 1.	Consolidated Financial Statements	3
	Consolidated Statements of Operations Three-Months and Nine-Months Ended September 30, 2003 and 2004 and from the Company's inception (March 27, 1997) through September 30, 2004	4
	Consolidated Balance Sheets as of December 31, 2004 and June 30, 2005 (Unaudited)	3
	Consolidated Statements of Cash Flows Three-Months and Nine-Months Ended September 30, 2003 and 2004 and from the Company's inception (March 27, 1997) through September 30, 2004	5
	Consolidated Statements of Operations (Unaudited) Three-Months and Six-Months Ended June 30, 2004 and 2005 and from the Company's inception (March 27, 1997) through June 30, 2005	5
	Notes to (Unaudited) Consolidated Financial Statements	7
	Consolidated Statements of Cash Flows (Unaudited) Three-Months and Six-Months Ended June 30, 2004 and 2005 and from the Company's inception (March 27, 1997) through June 30, 2005	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14
	Notes to (Unaudited) Consolidated Financial Statements	8
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	15
Item 4.	Controls and Procedures	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	16
PART II.	OTHER INFORMATION	17
Item 4.	Controls and Procedures	18
Item 1.	Legal Proceedings	17
PART II.	OTHER INFORMATION	18
Item 2.	Change in Securities and Use of Proceeds	17
Item 1.	Legal Proceedings	18
Item 3.	Defaults Upon Senior Securities	17
Item 2.	Change in Securities and Use of Proceeds	18
Item 4.	Submission of Matters to a Vote of Security Holders	17
Item 3.	Defaults Upon Senior Securities	18
Item 5.	Other Information	17
Item 4.	Submission of Matters to a Vote of Security Holders	18
Item 6.	Exhibits and Reports on Form 8-K	17
Item 5.	Other Information	18
SIGNATURES		18
Item 6.	Exhibits and Reports on Form 8-K	18
SIGNATURES		19

~~PART I - FINANCIAL INFORMATION~~2

~~Item~~CANADIAN 1ROCKPORT HOMES INTERNATIONAL, INC. ~~Consolidated~~(A ~~Financial~~Development ~~Statements~~Stage Company) CONSOLIDATED BALANCE SHEETS

		December 31,			June 30,
		2004			2005
					(Unaudited)
Assets

Current assets
Cash and cash equivalents	$	31,358		$	577,065
Receivable - other		-			2,818
Prepaid expenses		1,652			672

Total current assets		33,010			580,555

Property and equipment
Land		400,000			400,000
Trucks		31,126			30,522
Furniture & equipment		286,357			478,970
Property held under capital leases		12,999			12,870
Leasehold improvements		1,688			1,655
		732,170			924,017
Less accumulated depreciation		(194,479	)		(219,447	)
		537,691			704,570
Construction in-progress		1,142,038			1,509,698

Total property and equipment - net		1,679,729			2,214,268

Other assets
Intangible assets subject to amortization
Patents		9,116			8,772

Total other assets		9,116			8,772

Total assets	$	1,721,855		$	2,803,595

~~CANADIAN~~The ~~ROCKPORT~~accompanying ~~HOMES~~notes ~~INTERNATIONAL,~~are ~~INC.~~an (Aintegral ~~Development~~part ~~Stage~~of ~~Company)~~these ~~CONSOLIDATED~~consolidated financial ~~BALANCE SHEETS~~statements.

		December 31,			September 30,
		2003			2004
					(Unaudited)
Assets
Current Assets
Cash	$	143,718		$	8,786
Employee advance		2,317			-
Loan receivable - related party		2,492			3,275
Receivable - other		927			-
Prepaid expenses		1,792			1,632
Total current assets		151,246			13,693
Property and Equipment
Land		400,000			400,000
Trucks		28,957			29,525
Furniture and equipment		183,887			276,965
Property held under capital leases		12,094			12,331
Leasehold improvements		1,570			1,602
		626,508			720,423
Less accumulated depreciation		(141,137	)		(173,348	)
		485,371			547,075
Construction in progress		937,645			1,028,850
Total Property and Equipment - Net		1,423,016			1,575,925
Other Assets
Intangible assets subject to amortization:
Patents		9,758			9,263
Total Assets	$	1,584,020		$	1,598,881

~~The~~CANADIAN ~~accompanying~~ROCKPORT ~~notes~~HOMES ~~are~~INTERNATIONAL, anINC. ~~integral~~(A ~~part~~Development ofStage ~~the~~Company) ~~consolidated~~CONSOLIDATED ~~financial~~BALANCE ~~statements. 2~~SHEETS

CANADIAN ROCKPORT HOMES INTERNATIONAL, INC. (A Development Stage Company) CONSOLIDATED BALANCE SHEETS

		December 31,			June 30,
		2004			2005
					(Unaudited)
Liabilities and stockholders' equity

Current liabilities
Legal fees payable	$	166,047		$	165,334
Trade payables		34,364			37,055
Rent payable		292,465			-
Accrued compensation		618,560			763,742
Payroll taxes payable		43,018			32,809
Loans payable - related party		39,979			107,041
Loans payable - other		15,612			15,612
Current maturities of obligations under capital leases		3,364			3,189
Notes payable - current		127,594			127,888

Total current liabilities		1,341,003			1,252,670

Long-term debt payable to related party		-			521,026

Obligations under capital lease		4,909			3,361

Total liabilities		1,345,912			1,777,057

Stockholders' equity
Common stock, $.001 par value; authorized
100,000,000 shares; issued and outstanding
15,913,484 shares as of December 31, 2004, and
16,146,889 shares as of June 30, 2005		15,913			16,147
Additional paid-in capital		10,063,510			11,448,279
Deficit accumulated during the development stage		(9,709,327	)		(10,486,236	)
Other comprehensive income		5,847			48,348

Total stockholders' equity		375,943			1,026,538

Total liabilities and stockholders' equity	$	1,721,855		$	2,803,595

		December 31,			September 30,
		2003			2004
					(Unaudited)
Liabilities and Stockholders' Equity
Current Liabilities
Rent payable	$	290,366		$	283,985
Legal fees payable		133,412			146,770
Accounts payable		9,102			35,221
Accrued compensation		-			370,905
Payroll taxes payable		2,645			21,024
Loans payable - other		15,612			15,612
Current maturities of obligations under capital leases		2,539			2,800
Current maturities of long-term debt		113,450			119,693
Total Current Liabilities		567,126			996,010
Long-term debt and obligations under capital leases		7,697			5,743
Total Liabilities		574,823			1,001,753
Stockholders' Equity
Common Stock, $.001 par value ; authorized
100,000,000 shares; issued and outstanding
15,677,896 shares as of December 31, 2003, and
15,859,111 shares as of September 30, 2004		15,678			15,859
Additional paid-in capital		8,237,056			9,606,653
Deficit accumulated during the development stage		(7,252,781	)		(9,031,849	)
Other comprehensive income		9,244			6,465
Total Stockholders' Equity		1,009,197			597,128
Total Liabilities and Stockholders' Equity	$	1,584,020		$	1,598,881

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

~~The accompanying notes are an integral part of the consolidated financial statements. 3~~4

CANADIAN ROCKPORT HOMES INTERNATIONAL, INC. (A Development Stage Company) CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT

														From Inception
		For the Three						For the Six						From Inception
		For the Three-Months Ended						For the Nine-Months Ended						March 27, 1997
		Months Ended						Months Ended						(March 27, 1997)
		September 30,						September 30,						Through
		June 30,						June 30,						Through
		2003			2004			2003			2004			Sept. 30, 2004
		2004			2005			2004			2005			June 30, 2005
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Income	$	-		$	-		$	-		$	-		$	-
Operating Expenses
Operating expenses
General and administrative expenses		(~~245~~491,~~235~~086	)		(~~272~~340,~~695~~603	)		(~~743~~964,~~370~~717	)		(1653,~~237,412~~768	)		(56,~~037~~141,~~950~~392	)
Compensation and consulting expense
incurred on stock option grants		-			(178,747	)		-			(536,241	)		(3,550,115	)
incurred on option grants		(178,747	)		(190,071	)		(357,494	)		(380,142	)		(4,150,205	)
Loss on disposition of assets		-			-			-			-			(358,361	)
Gain (loss) on disposition of assets		-			29			-			29			(356,783	)
Loss on impairment of goodwill		-			-			-			-			(30,000	)
Loss From Operations		(245,235	)		(451,442	)		(743,370	)		(1,773,653	)		(8,976,426	)
Loss from operations		(669,833	)		(530,645	)		(1,322,211	)		(1,033,881	)		(10,678,380	)
Other Income (Expenses)
Other income (expenses)
Commission income		-			-			2,917			-			2,917
Gain on extinguishment of lease liability		-			-			-			283,985			283,985
Interest income		-			18183			~~180~~-			18270			4,~~258~~550
Interest expense		(141,~~945~~784	)		(16,~~793~~451	)		(263,~~532~~640	)		(527,~~433~~283	)		(6296,~~598~~391	)
	$	(260,180	)	$	(453,217	)	$	(766,805	)	$	(1,779,068	)	$	(9,031,849	)
		(1,784	)		(6,268	)		(3,640	)		256,972			192,144
Basic and Diluted Loss Per Share	$	(0.02	)	$	(0.03	)	$	(0.05	)	$	(0.11	)
Net loss before income taxes		(671,617	)		(536,913	)		(1,325,851	)		(776,909	)		(10,486,236	)
Weighted Average Common
Income taxes		-			-			-			-			-
Shares Outstanding		15,544,509			15,841,843			15,499,889			15,786,285
Net loss	$	(671,617	)	$	(536,913	)	$	(1,325,851	)	$	(776,909	)	$	(10,486,236	)
Basic and diluted loss per share	$	(0.04	)	$	(0.03	)	$	(0.08	)	$	(0.05	)
Weighted average common
shares outstanding		15,797,732			16,094,579			15,758,201			16,032,269

The accompanying notes are an integral part of ~~the~~these consolidated financial statements. 4

~~CANADIAN ROCKPORT HOMES INTERNATIONAL, INC. (A Development Stage Company) CONSOLIDATED STATEMENTS OF CASH FLOWS~~5

														From Inception
		For the Three-Months Ended						For the Nine-Months Ended						March 27, 1997
		September 30,						September 30,						Through
		2003			2004			2003			2004			Sept. 30, 2004
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cash Flows from Operating Activities
Net loss	$	(260,180	)	$	(453,217	)	$	(766,805	)	$	(1,779,068	)	$	(9,031,849	)
Adjustments to reconcile net loss to net cash
used in operating activities:
Issuance of common stock for services		-			-			3,000			5,875			22,375
Issuance of common stock in
Company's organization		-			-			-			-			1,000
Compensation recognized on stock option grants		-			178,747			-			536,241			3,550,115
Loss on disposition of assets		-			-			-			-			358,749
Loss on impairment of goodwill		-			-			-			-			30,000
Depreciation and amortization		12,102			7,550			34,724			29,979			162,486
(Increase) decrease in assets
(Increase) decrease in prepaid expenses		-			63			12,130			189			(1,611	)
(Increase) decrease in other assets		3,347			(83	)		-			3,113			22
Increase (decrease) in liabilities
Increase in accrued compensation		-			76,221			-			370,905			370,905
Increase in trade and other payables		1,208			13,333			57,090			88,069			517,508
Net Cash Used in Operating Activities		(243,523	)		(177,386	)		(659,861	)		(744,697	)		(4,020,300	)
Cash Flows from Investing Activities
Net proceeds from sale of timber and truss plant		-			-			-			-			211,639
Insurance proceeds on equipment theft		-			-			-			-			252
Acquisition of equipment and other property		(21,481	)		(2,385	)		(167,764	)		(212,304	)		(1,129,542	)
Net Cash Used in Investing Activities		(21,481	)		(2,385	)		(167,764	)		(212,304	)		(917,651	)
Cash Flows from Financing Activities
Gross proceeds from private stock offerings		271,865			168,199			754,359			877,631			5,185,303
Costs incurred in stock offerings		(10,026	)		(7,367	)		(53,557	)		(49,970	)		(352,144	)
Advances from officer		110			-			-			-			129,810
Principal reduction on obligation under capital leases		(279	)		(652	)		(685	)		(1,837	)		(3,553	)
Proceeds from loans		-			-			3,363			-			144,668
Loan repayments to officer		-			-			-			-			(127,382	)
Purchase of treasury stock		-			-			-			-			(35,000	)
Net Cash Provided by Financing Activities		261,670			160,180			703,480			825,824			4,941,702
Effect of Exchange Rates on Cash		(93	)		254			7,616			(3,755	)		5,035
Net Increase (Decrease) in Cash and Cash
Equivalents		(3,427	)		(19,337	)		(116,529	)		(134,932	)		8,786
Beginning Balance - Cash and Cash Equivalents		68,229			28,123			181,331			143,718			-
Ending Balance - Cash and Cash Equivalents	$	64,802		$	8,786		$	64,802		$	8,786		$	8,786

CANADIAN ROCKPORT HOMES INTERNATIONAL, INC.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

The accompanying notes are an integral part of the consolidated financial statements. 5

		For the Three						For the Six						From Inception
		Months Ended						Months Ended						March 27, 1997
		June 30,						June 30,						Through
		2004			2005			2004			2005			June 30, 2005
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cash flows from operating activities
Net loss	$	(671,617	)	$	(536,913	)	$	(1,325,851	)	$	(776,909	)	$	(10,486,236	)
Adjustments to reconcile net loss to net cash
used in operating activities:
Issuance of common stock for services		-			-			5,875			-			22,375
Issuance of common stock in Company's
organization		-			-			-			-			1,000
Compensation recognized on stock option grants		178,747			190,071			357,494			380,142			4,150,205
(Gain) loss on disposition of assets		-			(29	)		-			(29	)		357,171
(Gain) loss on extinguishment of lease liability		-			-			-			(283,985	)		(283,985	)
Loss on impairment of goodwill		-			-			-			-			30,000
Depreciation and amortization		11,146			16,681			22,429			29,654			205,952
(Increase) decrease in assets
(Increase) decrease in prepaid expenses		126			57			126			955			(590	)
(Increase) decrease in other assets		(99	)		325			3,196			(2,834	)		(2,672	)
Increase (decrease) in liabilities
Increase (decrease) in trade and other payables		69,712			(14,617	)		74,736			(13,804	)		451,688
Increase in accrued compensation		149,537			59,014			294,684			145,181			763,741
Increase in notes payable		-			13,929			-			27,756			88,182

Net cash used in operating activities		(262,448	)		(271,482	)		(567,311	)		(493,873	)		(4,703,169	)

Cash flows from investing activities
Net proceeds on sale of timber and truss plant		-			-			-			-			211,639
Net proceeds on disposition of equipment		-			164			-			164			164
Insurance proceeds on equipment theft		-			-			-			-			252
Acquisition of equipment and other property		(50,984	)		(202,797	)		(209,919	)		(510,226	)		(1,706,781	)

Net cash used in investing activities		(50,984	)		(202,633	)		(209,919	)		(510,062	)		(1,494,726	)

Cash flows from financing activities
Gross proceeds from private offerings		268,440			408,526			709,432			1,025,274			6,452,145
Costs incurred in stock offerings		(8,791	)		(11,271	)		(42,603	)		(20,413	)		(377,161	)
Proceeds from related party loans		-			565,000			-			589,895			761,754
Proceeds from other loans		-			-			-			-			144,668
Repayments on officer loans		-			(9,359	)		-			(14,221	)		(141,603	)
Principal reduction on obligations under capital leases		(602	)		(801	)		(1,185	)		(1,577	)		(5,838	)
Payment of deferred loan costs		-			(12,274	)		-			(12,274	)		(12,274	)
Purchase of treasury stock		-			-			-			-			(35,000	)

Net cash provided by financing activities		259,047			939,821			665,644			1,566,684			6,786,691

Effect of exchange rates on cash		(197	)		(21,516	)		(4,009	)		(17,042	)		(11,731	)

Net increase (decrease) in cash and cash
equivalents		(54,582	)		444,190			(115,595	)		545,707			577,065

Cash and cash equivalents - beginning of period		82,705			132,875			143,718			31,358			-

Cash and cash equivalents - end of period	$	28,123		$	577,065		$	28,123		$	577,065		$	577,065

~~CANADIAN~~The ~~ROCKPORT~~accompanying ~~HOMES~~notes ~~INTERNATIONAL,~~are ~~INC.~~an (Aintegral ~~Development~~part ~~Stage~~of ~~Company)~~these ~~STATEMENTS~~consolidated financial ~~OF CASH FLOWS~~statements.

~~Supplemental Information:~~6

~~Non-cash~~CANADIAN ~~Investing~~ROCKPORT ~~and~~HOMES ~~Financing~~INTERNATIONAL, ~~Activities:~~INC. (A Development Stage Company) CONSOLIDATED STATEMENTS OF CASH FLOWS

~~During~~Supplemental the three-months ended September 30, 2004, the Company issued 1,569 shares of its common stock in consideration for services rendered in connection with the Company's public offering. The issued shares were valued at $7,845.Information:

~~During the three~~Non-~~months~~Cash ~~ended~~Investing ~~September 30,~~and ~~2003,~~Financing the Company financed the entire purchase of computer equipment with a total cost of $7,748. In addition, during the same three months, the Company issued 300 shares on connection with its public offering. The shares were valued at $1,500.Activities:

~~Cash~~During ~~Paid~~the ~~For:~~six-months ended June 30, 2004, the Company issued 3,554 shares of its common stock for services rendered in connection with its private offerings. The services were valued at $17,770, the estimated value of the shares issued.The $17,770 was charged against the proceeds received.

										From Inception
		For the Three-Months Ended				For the Nine-Months Ended				March 27, 1997
		September 30,				September 30,				Through
		2003		2004		2003		2004		Sept. 30, 2004
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Interest Expense	$	198	$	459	$	506	$	1,518	$	3,523
Income Taxes	$	-	$	-	$	-	$	-	$	-

During the six-months ended June 30, 2005, the Company issued 28,360 shares of its common stock for services rendered in connection with its private offerings. The services were valued at $141,800, the estimated value of the shares issued. The $141,800 was charged against the proceeds received.

~~The~~Cash ~~accompanying~~Paid ~~notes are an integral part of the consolidated financial statements. 6~~For:

CANADIAN ROCKPORT HOMES INTERNATIONAL, INC. (A Development Stage Company)

		For the Three				For the Six				From Inception
		Months Ended				Months Ended				(March 27, 1997)
		June 30,						June 30,		Through
		2004		2005		2004		2005		June 30, 2005
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Interest Expense	$	511	$	7,750	$	1,059	$	13,619	$	18,221

Income Taxes	$	-	$	-	$	-	$	-	$	-

The ~~NOTES~~accompanying TOnotes ~~(UNAUDITED)~~are ~~CONSOLIDATED~~an ~~FINANCIAL~~integral ~~STATEMENTS~~part of these consolidated financial statements.

Note 1 Summary of Significant Accounting Policies Basis of Presentation The Company's consolidated financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. However, the Company has not generated any income and continues to have recurring operating losses. This matter raises substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Realization of a major portion of the assets in the accompanying consolidated balance sheet is dependent upon the Company’s ability to meet its financing requirements, and the success of its future operations. Management continues to raise funds through private offerings and is still seeking manufacturing contracts. Management believes that these sources of funds and current liquid assets will allow the Company to continue as a going concern. However, no assurances can be made that current or anticipated sources of funds will enable the Company to finance future periods’ operations. In the opinion of the Company's management, the accompanying unaudited consolidated financial statements contain all adjustment (consisting of normal recurring accruals) necessary to present fairly the financial position of the Company as of September 30, 2004, and the results of its operations and cash flows for the three-month and nine-month periods ended September 30, 2003 and 2004. The operating results of the Company on a quarterly basis may not be indicative of operating results for the full year. Reference should be made to Canadian Rockport Homes International, Inc.’s (the "Company") Form 10-K for the year ended December 31, 2003, for additional disclosures including a summary of the Company's accounting policies, which have not significantly changed. Business Activities and Related Risks Canadian Rockport Homes International, Inc was incorporated in Delaware on January 10, 1996 under the name, Lenz Products, Inc. The Company changed its name to Canadian Rockport Homes International, Inc. in early 2001. The Company is in the development stage as defined in FASB Statement 7 and currently has plans to manufacture and erect low cost concrete modular buildings. The Company has not paid any dividends and any dividends which may be paid in the future will depend on the financial requirements of the Company and other relevant factors.

7CANADIAN ROCKPORT HOMES INTERNATIONAL, INC. (A Development Stage Company) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note ~~CANADIAN~~1 ~~ROCKPORT~~– ~~HOMES~~Summary ~~INTERNATIONAL,~~of ~~INC. (A~~Significant ~~Development~~Accounting ~~Stage Company)~~ Policies

Basis ~~NOTES~~of ~~TO (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS~~ Presentation

InThe ~~February~~Company's ~~2001,~~consolidated ~~the~~financial statements ~~Company~~are ~~acquired~~prepared ~~all~~using of the ~~outstanding~~accrual ~~shares~~method of ~~Canadian~~accounting ~~Rockport~~in ~~Homes,~~accordance with ~~Ltd.,~~accounting ~~(“CRH”),~~principles agenerally ~~company~~accepted ~~incorporated~~ in the ~~Province~~United ofStates ~~British Columbia on March 26, 1997, in exchange for issuing 11,300,000 shares~~ of ~~its~~America and ~~common~~have ~~stock. For financial reporting purposes, the acquisition was treated as a reverse acquisition whereby CRH’s operations continue to be reported as if it had actually~~ been ~~the~~prepared ~~acquirer.~~on Assets and liabilities continue to be reported at the Acquiree’s historical cost because before the reverse acquisition, the Company had nominal assets, liabilities and operations. The Company also formed a ~~subsidiary~~going inconcern ~~2001 in Chile under the name Rockport Homes Chile Limitada (“RHCL”). The Company and CRH are the sole shareholders of this Chilean company. In 2002~~basis, ~~the Company acquired certain assets of 598546 BC Ltd.,~~ which ~~included~~contemplates ~~100% of~~ the realization ~~outstanding shares~~ of ~~Canadian~~assets ~~Rockport~~and ~~Trading Limitada, a Chilean corporation, formerly Maderas Doradas Canadienses, S.A. (“RT”). At~~ the ~~time~~settlement of ~~its~~liabilities ~~acquisition,~~in ~~RT had no operations. During~~ the ~~year,~~normal ~~the~~course ~~Company sold all~~ of ~~the assets of RT except for the acquired building and land on which the Company is building its Chilean plant and offices~~ business. ~~For ease in administration and to reduce costs~~However, the Company inhas ~~2003~~not ~~decided~~generated toany ~~dissolve~~income ~~RHCL~~ and ~~operate~~continues ~~its~~to have ~~Chilean~~recurring ~~operations~~operating ~~solely~~losses. ~~through~~This ~~RT,~~matter ~~which~~raises ~~currently~~substantial ~~owns~~doubt ~~significantly~~about ~~all of~~ the Company’'s ~~Chilean~~ability ~~assets.~~to ~~The~~continue ~~dissolution~~as ofa ~~RCHL~~going ~~was finalized on January 15, 2005~~concern. ~~Principles~~These ~~of Consolidation The accompanying~~ financial statements do not include ~~the~~any ~~accounts~~adjustments ~~and~~relating ~~transactions~~to ofthe ~~Canadian~~recoverability ~~Rockport Homes International, Inc.~~ and ~~its~~classification ~~wholly~~of recorded ~~owned~~asset ~~subsidiaries~~amounts, ~~Canadian~~or ~~Rockport~~amounts ~~Homes, Ltd. Rockport Homes Chile Limitada~~ and ~~Canadian~~classification Rockport Trading, Limitada. Intercompany transactions and balances have been eliminated in consolidation. Foreign Currency Translations For foreign operations whose functional currency is the local foreign currency, balance sheet accounts are translated at exchange rates in effect at the end of ~~the~~liabilities ~~year~~that ~~and~~might be ~~income~~necessary ~~statement~~should ~~accounts are translated at average exchange rates for~~ the ~~year.~~Company ~~Translation~~be ~~gains~~unable ~~and~~to ~~losses~~continue ~~are included~~ as a ~~separate~~going ~~component of stockholders’ equity~~concern. Property and Equipment The cost of property and equipment is depreciated over the estimated useful lives of the related assets that range from 3 to 7 years. Depreciation is computed on the straight-line method for financial reporting purposes and for income tax reporting purposes. Depreciation expense for the three months ended September 30, 2003 and 2004 was $ 11,597 and $7,907, respectively. Depreciation expense for the nine months ended September 30, 2003 and 2004 was $ 33,882 and $29,565, respectively.

8Realization of a major portion of the assets in the accompanying consolidated balance sheet is dependent upon the Company’s ability to meet its financing requirements, and the success of its future operations. Management continues to raise funds through private offerings and is in the process of purchasing land on which it plans to construct modular homes for the retail market. Management believes that these sources of funds and current liquid assets will allow the Company to continue as a going concern. However, no assurances can be made that current or anticipated sources of funds will enable the Company to finance future periods’ operations.

In ~~CANADIAN~~the ~~ROCKPORT~~opinion ~~HOMES~~of ~~INTERNATIONAL~~the Company's management, ~~INC.~~the accompanying unaudited consolidated financial statements contain all adjustments (Aconsisting ~~Development~~of ~~Stage~~normal recurring accruals) necessary to present fairly the financial position of the Company as of June 30, 2005 and the results of its operations and cash flows for the three-month and six-month periods ended June 30, 2005 and 2004. The operating results of the Company on a quarterly basis may not be indicative of operating results for the full year. Reference should be made to Canadian Rockport Homes International, Inc.’s (the "Company") Form 10-K for the year ended December 31, 2004, for additional disclosures including a summary of the Company's accounting policies, which have not significantly changed.

Business ~~NOTES~~Activities TOand ~~(UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS~~Related Risks

~~Intangible~~Canadian ~~Assets~~Rockport ~~Patents~~Homes ~~are~~International, Inc ~~being~~was ~~amortized~~incorporated ~~over~~in ~~their~~Delaware ~~respective~~on ~~remaining~~January ~~lives~~10, of1996 18under ~~years. Amortization expense for~~ the ~~three-months ended September 30~~name, ~~2003 and 2004 was $167~~Lenz Products, ~~and $173, respectively~~Inc. ~~Amortization~~The ~~expense~~Company ~~for~~changed ~~the~~its ~~nine-months~~name ~~ended~~to ~~September~~Canadian ~~30,~~Rockport ~~2003 and 2004 was $501and $508~~Homes International, ~~respectively~~Inc. ~~Intangible~~in ~~assets~~early ~~consist~~2001. ~~of the following:~~

		September 30, 2004
							Weighted
		Gross				Net	Average
		Intangible		Accumulated		Intangible	Life
		Assets		Amortization		Assets	(Years)
Patents	$	11,578	$	2,316	$	9,263	18

The Company is in the development stage as defined in FASB Statement 7 and currently has plans to manufacture and erect low cost concrete modular buildings. The Company has not paid any dividends and any dividends which may be paid in the future will depend on the financial requirements of the Company and other relevant factors.

		September 30, 2003
							Weighted
		Gross				Net	Average
		Intangible		Accumulated		Intangible	Life
		Assets		Amortization		Assets	(Years)
Patents	$	11,545	$	1,787	$	9,758	18

In February 2001, the Company acquired all of the outstanding shares of Canadian Rockport Homes, Ltd., (“CRH”), a company incorporated in the Province of British Columbia on March 26, 1997, in exchange for issuing 11,300,000 shares of its common stock. For financial reporting purposes, the acquisition was treated as a reverse acquisition whereby CRH’s operations continue to be reported as if it had actually been the acquirer. Assets and liabilities continue to be reported at the Acquiree’s historical cost because before the reverse acquisition, the Company had nominal assets, liabilities and operations.

~~Estimated~~The ~~amortization~~Company ~~expense~~also ~~for~~formed ~~each~~a ofsubsidiary in 2001 in Chile under the ~~next~~name ~~five~~Rockport ~~years~~Homes ~~ended~~Chile ~~September~~Limitada ~~30,~~(“RHCL”). isThe asCompany and ~~follows:~~CRH are the sole shareholders of this Chilean company.

2005	$	674
2006		674
2007		674
2008		674
2009		674
Total	$	3,370

In 2002, the Company acquired certain assets of 598546 BC Ltd., which included 100% of the outstanding shares of Canadian Rockport Trading Limitada, a Chilean corporation, formerly Maderas Doradas Canadienses, S.A. (“RT”). At the time of its acquisition, RT had no operations. During the year, the Company sold all of the assets of RT except for the acquired building and land on which the Company is building its Chilean plant and offices.

~~Net~~For ~~Loss~~ease ~~Per~~in ~~Share~~administration ~~The Company adopted Statement of Financial Accounting Standards No. 128 that requires the reporting of both basic~~ and ~~diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available~~ to ~~common~~reduce costs, ~~stockholders by~~ the ~~weighted~~Company ~~average~~in ~~number~~2003 ofdecided ~~common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts~~ to ~~issue~~dissolve ~~common~~RHCL ~~stock~~and ~~were~~operate ~~exercised~~its orChilean operations ~~converted~~solely ~~into~~through ~~common stock. In accordance with SFAS 128~~RT, ~~any~~which ~~anti-dilutive~~currently ~~effects~~owns onsignificantly ~~net~~all ~~earnings (loss) per share are excluded. Issuances Involving Non-cash Consideration All issuances~~ of the Company’s ~~stock~~Chilean ~~for non-cash consideration have been assigned a dollar amount equaling either the market value of the shares issued or the value of consideration received, whichever is more readily determinable~~assets. The ~~majority~~dissolution of ~~the~~RHCL ~~non-cash~~was ~~consideration~~finalized ~~received~~on ~~pertains~~January 15, to2005 ~~services~~(see ~~rendered~~Note ~~by consultants and others~~6).

On ~~CANADIAN~~March ~~ROCKPORT~~24, ~~HOMES~~2004 ~~INTERNATIONAL~~the Company formed CRH of Nevada, ~~INC~~Inc. , a Nevada corporation (A“CRHN”). ~~Development~~CRHN ~~Stage~~was formed for the purpose of undergoing a migratory merger by which the Company) would move from the State of Delaware to the State of Nevada. As a result of the merger, CRHN would assume all of the assets and liabilities of the Company and be renamed as “Canadian Rockport Homes International, Inc.” The purpose of the merger is to take advantage of Nevada state tax treatment for the Company which Management believes is more favorable to the Company than Delaware state tax treatment. It is not anticipated that there will be any other material difference due to the migratory merger. The Company anticipates that the migratory merger will be completed in 2005.

The ~~NOTES~~Company TOmaintains ~~(UNAUDITED)~~all ~~CONSOLIDATED~~of ~~FINANCIAL~~its ~~STATEMENTS~~cash deposits at two banks, one in Canada and one in Chile. Certain bank accounts are not insured.

~~Cash~~Principles ~~and Cash Equivalents For purposes~~ of the statement of cash flows, the Company considers cash and cash equivalents to include all stable, highly liquid investments with maturities of three months or less. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in FASB Statement No. 109, "Accounting for Income Taxes". As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Fair Value of Financial Instruments Pursuant to SFAS No. 107, “Disclosures About Fair Value of Financial Instruments”, the Company is required to estimate the fair value of all financial instruments included on its balance sheet as of June 30, 2004. The Company considers the carrying value of such amounts in the financial statements to approximate their face value. Note 2 Recent Accounting Pronouncements The FASB recently issued the following statements: In December 2004, the FASB issued FASB Statement No. 153, exchanges of Nonmonetary Assets which is an amendment of APB Opinion No. 29. The amendments made by Statement 153 are based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. Further, the amendments eliminate the narrow exception for nonmonetary exchanges of similar productive assets and replace it with a broader exception for exchanges of nonmonetary assets that do not have "commercial substance." Previously, Opinion 29 required that the accounting for an exchange of a productive asset for a similar productive asset or an equivalent interest in the same or similar productive asset should be based on the recorded amount of the asset relinquished. The provisions in Statement 153 are effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The Company adopted this statement on January 1, 2005. The adoption of the statement should not cause a significant change in the current manner in which the Company accounts for its exchanges of nonmonetary assets. In December 2004, the FASB issued FASB Statement No. 152, Accounting for Real Estate TimeSharing Transactions - An Amendment of FASB Statements No. 66 and 67. This standard amends FASB Statement No. 66, Accounting for Sales of Real Estate, by referring users to AICPA Statement of Position (SOP) 04-2, Accounting for Real Estate Time-Sharing Transactions. Consolidation

10The accompanying financial statements include the accounts and transactions of Canadian Rockport Homes International, Inc. and its wholly owned subsidiaries, Canadian Rockport Homes Ltd., and Canadian Rockport Trading Limitada. Intercompany transactions and balances have been eliminated in consolidation.

Foreign ~~CANADIAN ROCKPORT HOMES INTERNATIONAL, INC.~~Currency ~~(A Development Stage Company)~~ Translations

For ~~NOTES~~foreign TOoperations ~~(UNAUDITED)~~whose ~~CONSOLIDATED~~functional currency ~~FINANCIAL~~is ~~STATEMENTS~~the local foreign currency, balance sheet accounts are translated at exchange rates in effect at the end of the year and income statement accounts are translated at average exchange rates for the year. Translation gains and losses are included as a separate component of stockholders’ equity.

	Statement 152 also amends FASB Statement No. 67, Accounting for Costs and Initial Operations of Real Estate Projects, to state that the guidance for "incidental operations" and costs incurred to sell real estate projects does not apply to real estate time-sharing transactions. Statement 152 is effective for financial statements for fiscal years beginning after June 15, 2005. This statement is not applicable to the Company’s current operations. The FASB has issued FASB Statement No. 123 (Revised 2004), Share-Based Payment. The new FASB rule requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. This statement precludes the recognition of compensation expense under APB 25 intrinsic value method. Public entities other than small business issuers will be required to apply Statement 123R in the first interim or annual reporting period that begins after June 15, 2005. Management believes that the adoption of the statement will not have a significant impact on its current operations and plans to adopt this statement on July 1, 2005. On November 24, 2004, the FASB issued FASB Statement No. 151, Inventory Costs - An amendment of ARB No. 43, Chapter 4. Statement 151 clarifies that abnormal amounts of idle facility expense, freight, handling costs and spoilage should be expensed as incurred and not included in overhead. Further, Statement 151 requires that allocation of fixed production overheads to conversion costs should be based on normal capacity of the production facilities. The provisions in Statement 151 are effective for inventory costs incurred during fiscal years beginning after June 15, 2005. Companies must apply the standard prospectively. Management plans on adopting this standard on April 1, 2006 and expects that that the adoption of the statement to have no impact on its current operations.
Note 3	Accrued Compensation On January 1, 2004, the Company entered into employment, consulting, and other related contracts with its management and personnel. Under the terms of these various agreements, the Company is obligated to pay on a monthly basis approximately $82,000 in compensation. Due to the Company’s current cash flow requirements needed in the construction of its Chilean facility, monthly compensation currently being paid is approximately $41,000. The difference of approximately $41,000 a month is being accrued and will be paid when the Company has sufficient funds available. The terms of the contracts are for two years.
Note 4	Issuances of Common Stock During the nine-months ended September 30, 2004, the Company issued 175,867 shares of its common stock through a private offering in exchange for $877,631. In addition, during the nine month period, the Company issued 4,173 shares for consulting services in connection with the private offering valued at $20,865 and 1,175 shares for other services valued at $5,875.
Note 5	Payable to Related Parties In April 2002, two shareholders advanced $65,657 to the Company evidenced by two promissory notes that are assessed interest at an annual rate of 8%. The notes are due on demand. Under the terms of the notes, the Company issued 5,000 shares of its common stock to each lender at the time of repayment. The Company is imputing interest on the shares to be issued at a price of $5.00 per share. The imputed interest was charged to operations ratably over a one-year period, which Management believed to be the length of time that the loans will be outstanding. The balance of this obligation on September 30, 2004 totaled $119,693. Interest charged to operations for the nine months ended September 30, 2004 was $2,977.

Property and Equipment

11The cost of property and equipment is depreciated over the estimated useful lives of the related assets that range from 3 to 7 years. Depreciation is computed on the straight-line method for financial reporting purposes and for income tax reporting purposes. Depreciation expense for the three-months ended June 30, 2004 and 2005 was $10,979 and $16,513, respectively. Depreciation expense for the six-months ended June 30, 2004 and 2005 was $22,095 and $29,317, respectively.

Intangible ~~CANADIAN ROCKPORT HOMES INTERNATIONAL, INC. (A Development Stage Company)~~ Assets

Patents ~~NOTES~~are TObeing ~~(UNAUDITED)~~amortized ~~CONSOLIDATED~~over ~~FINANCIAL~~their respective ~~STATEMENTS~~remaining lives of 18 years. Amortization expense for the three-months ended June 30, 2004 and 2005 was $167 and $168, respectively. Amortization expense for the six-months ended June 30, 2004 and 2005 was $334 and $337, respectively.

~~Note~~Intangible 6assets ~~Leases~~consist ~~The Company is a lessee~~ of ~~computer equipment under three capital leases expiring through August 28, 2007. The equipment and respective liabilities under these leases have been recorded at~~ the fair value of the equipment and are being amortized over the estimated five-year useful life of the equipment. Amortization of equipment under the capital leases is included in depreciation expense for the nine months ended September 30, 2004. Following is a summary of the property held under the capital leases at September 30, 2004 following:

Computer equipment	$	12,331
					June 30, 2005
Less: accumulated depreciation		(4,622	)
								Weighted
	$	7,709
		Gross					Net	Average
		Intangible			Accumulated		Intangible	Life
		Assets			Amortization		Assets	(Years)
Patents	$	11,596		$	2,824	$	8,772	18
					June 30, 2004
								Weighted
		Gross					Net	Average
		Intangible			Accumulated		Intangible	Life
		Assets			Amortization		Assets	(Years)
Patents	$	11,550		$	2,143	$	9,407	18

~~Minimum future lease payments under the capital lease over its remaining life are as follows for the years ended September 30:~~9

2005	$	4,634
2006		3,846
2007		3,092
2008		356
		11,928
Less imputed interest		(3,385	)
Present value of net minimum lease payments	$	8,543

Estimated amortization expense for each of the next five years ended June 30, is as follows:

On March 7, 2001, the Company entered into an agreement for the lease of certain real property in Chile where the Company plans to build its plant. The lease is for twenty-four months commencing April 7, 2001. The monthly rent is $31,297. At the maturity of the lease, the Company had the option to acquire the property for $4,580,000. The Company paid $95,151 in commission and legal fees pertaining to the lease that have been capitalized were amortized over life of the lease. The balance due on this lease as of September 30, 2004 amounted to $283,985. The Company’s RCHL subsidiary has not made any payments towards this obligation since April 2002 and was in default under the terms of the lease agreement as of September 30, 2004. In addition, the Company leases its Vancouver, B.C. office on a long-term lease expiring on December 31, 2006, payable in monthly installments of approximately $6,000. Future minimum lease commitments pertaining to the Vancouver office lease expire as follows:

2005	$	674
2006		674
2007		674
2008		674
2009		674

Total	$	3,370

September 30, 2005	$	73,358
September 30, 2006		73,358
September 30, 2007		18,339
Total future minimum lease payments	$	165,055

Net Loss Per Share

12The Company adopted Statement of Financial Accounting Standards No. 128 that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with SFAS 128, any anti-dilutive effects on net earnings (loss) per share are excluded. If such shares were included in diluted EPS, they would have resulted in weighted-average common shares of 18,754,084 and 19,378,534 for the three-months ended March 31, 2004 and 2005, respectively, and 18,685,251 and 19,253,914 for the six-months ended June 30, 2004 and 2005, respectively. Such amounts include shares potentially issuable under outstanding options and warrants.

Issuances ~~CANADIAN~~Involving ~~ROCKPORT HOMES INTERNATIONAL, INC.~~Non-cash ~~(A Development Stage Company)~~ Consideration

All ~~NOTES~~issuances TOof ~~(UNAUDITED)~~the ~~CONSOLIDATED~~Company’s ~~FINANCIAL~~stock for ~~STATEMENTS~~non-cash consideration have been assigned a dollar amount equaling either the market value of the shares issued or the value of consideration received, whichever is more readily determinable. The majority of the non-cash consideration received pertains to services rendered by consultants and others.

~~Note~~Cash 7 Subsequent Events As discussed in Note 1 the dissolution of RCHL was finalized on January 15, 2005. Pursuant to guidance from legal counsel, it is management’s belief that the related liabilities associated with this lease were extinguished in this dissolution. The total lease liability that was extinguished in 2005 included the $283,985 lease obligation reflected in the September 30, 2004 financial statements. From October 1, 2004 through April 4, 2005, the Company received $1,903,825 through the issuance of 380,765 shares of its common stock and ~~issued an additional 4,013 shares to various consultants for services, which were valued at $20,065.~~Cash Equivalents

13For purposes of the statement of cash flows, the Company considers cash and cash equivalents to include all stable, highly liquid investments with maturities of three months or less.

Use ~~Canadian~~of ~~Rockport Homes International, Inc.~~ Estimates

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

Income Taxes

Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in FASB Statement No. 109, ”Accounting for Income Taxes.” As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Fair Value of Financial Instruments

Pursuant to SFAS No. 107, “Disclosures About Fair Value of Financial Instruments”, the Company is required to estimate the fair value of all financial instruments included on its balance sheet as of June 30, 2005. The Company considers the carrying value of such amounts in the financial statements to approximate their fair value.

Note 2 – Recent Accounting Pronouncements

The FASB recently issued the following statements:

In May 2005, the FASB issued FASB Statement 154, Accounting Changes and Error Corrections. This Statement replaces APB Opinion No. 20, Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes the requirements for the accounting for and reporting of a change in accounting principle. Opinion 20 previously required that most voluntary changes in accounting principle be recognized by including in net income of the period of the change the cumulative effect of changing to the new accounting principle. This Statement requires retrospective application to prior periods’ financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The provisions in Statement 154 are effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. The Company plans on adopting this statement on January 1, 2006, and does not believe that it will have a significant impact on its operations.

In December 2004, the FASB issued FASB Statement No. 153, Exchanges of Nonmonetary Assets, which is an amendment of APB Opinion No. 29. The amendments made by Statement 153 are based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. Further, the amendments eliminate the narrow exception for nonmonetary exchanges of similar productive assets and replace it with a broader exception for exchanges of nonmonetary assets that do not have “commercial substance.” Previously, Opinion 29 required that the accounting for an exchange of a productive asset for a similar productive asset or an equivalent interest in the same or similar productive asset should be based on the recorded amount of the asset relinquished.

The provisions in Statement 153 are effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The Company adopted this statement on January 1, 2005. The adoption of the statement should not cause a significant change in the current manner in which the Company accounts for its exchanges of nonmonetary assets.

In December 2004, the FASB issued FASB Statement No. 152, Accounting for Real Estate Time Sharing Transactions - An Amendment of FASB Statements No. 66 and 67. This standard amends FASB Statement No. 66, Accounting for Sales of Real Estate, by referring users to AICPA Statement of Position (SOP) 04-2, Accounting for Real Estate Time-Sharing Transactions. Statement 152 also amends FASB Statement No. 67, Accounting for Costs and Initial Operations of Real Estate Projects, to state that the guidance for "incidental operations" and costs incurred to sell real estate projects does not apply to real estate time-sharing transactions. Statement 152 is effective for financial statements for fiscal years beginning after June 15, 2005. This statement is not applicable to the Company’s current operations.

The FASB has issued FASB Statement No. 123 (Revised 2004), Share-Based Payment. The new FASB rule requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. This statement precludes the recognition of compensation expense under APB 25 intrinsic value method. Public entities other than small business issuers will be required to apply Statement 123R in the first interim or annual reporting period that begins after June 15, 2005. Management adopted this standard on July 1, 2005, and does not expect that the adoption of the statement will have a significant impact on its current operations.

On November 24, 2004, the FASB issued FASB Statement No. 151, Inventory Costs - An amendment of ARB No. 43, Chapter 4. Statement 151 clarifies that abnormal amounts of idle facility expense, freight, handling costs and spoilage should be expensed as incurred and not included in overhead. Further, Statement 151 requires that allocation of fixed production overheads to conversion costs should be based on normal capacity of the production facilities. The provisions in Statement 151 are effective for inventory costs incurred during fiscal years beginning after June 15, 2005. Companies must apply the standard prospectively. Management plans on adopting this standard on January 1, 2006 and expects that that the adoption of the statement to have no impact on its current operations.

Note 3 – Construction In-Progress

During the six-months ended June 30, 2005, the Company incurred costs totaling $360,801 for the construction of its Chilean plant. Construction costs associated with the building of the Chilean plant include salaries and related benefits of those employees involved in the actual construction. Construction in-progress consists of the following:

Construction in-progress at December 31, 2004	$	1,142,038

Direct costs of constructing the Chilean plant		125,977
Allocated salaries and related benefits of employees involved in construction		190,790
Effect of exchange rates on asset balance		50,893

Net increase in construction in-progress account		367,660

Construction in-progress at September 30, 2005	$	1,509,698

Note 4 - Accrued Compensation

On January 1, 2004, the Company entered into employment, consulting, and other related contracts with its management and personnel. Under the terms of these various agreements, the Company is obligated to pay approximately $385,000 in compensation for the six-months ended June 30, 2005. Due to the Company’s current cash flow requirements, the compensation on these agreements that was actually paid totaled approximately $240,000 for the six-months ended June 30, 2005. The difference of approximately $145,000 was accrued and will be paid when the Company has sufficient funds available. The terms of the contracts are for two years. Total compensation accrued as of June 30, 2005 amounted to $763,742.

Note 5 - Issuances of Common Stock

During the six-months ended June 30, 2005, the Company issued 205,045 shares of its common stock through a private offering in exchange for $1,025,274. In addition, during the six-month period, the Company issued 28,360 shares for consulting services in connection with the private offering valued at $141,800. The $141,800 was charged to equity against the related proceeds received.

In connection with the above private offerings during the six-months ended June 30, 2005, the Company issued warrants to purchase 233,405 shares of the Company’s common stock at a price of $7.00.

The warrants expire two years after the first date the Company’s stock is publicly traded. At June 30, 2005, there were cumulative warrants outstanding to purchase 986,265 shares of the Company’s common stock.

Note 6 - Payable to Related Parties

In April 2002, two shareholders advanced $65,657 to the Company evidenced by two promissory notes that are assessed interest at an annual rate of 8%. The notes are due on demand. Under the terms of the notes, the Company issued 5,000 shares of its common stock to each lender at the time of repayment. The Company is imputing interest on the shares to be issued at a price of $5.00 per share. The imputed interest was charged to operations ratably over a one-year period, which Management believed to be the length of time that the loans would be outstanding. The balance of these obligations on June 30, 2005 was $127,888. Interest charged to operations for the six-months ended June 30, 2005 and 2004 was $2,789 and $2,530.

The Company and its President have made advances and repayments to each other. The advances commencing on January 1, 2005 are assessed interest at a rate of 2% per month. The advances are unsecured and are due on demand. The total balance due the President by the Company at June 30, 2005 was $114,148, which is discounted by $7,107 to reflect the deferral of certain costs incurred by the Company in obtaining this financing. The total deferred loan costs were $12,274 and are being amortized to interest expense over a period of one year. Interest charged to operations for the six-months ended June 30, 2005 and 2004 was $15,014 and $0.

In connection with the pending land purchase discussed below in Note 6, the Company borrowed $515,000 from a shareholder. Under the terms of the loan, the Company has agreed to pay him interest on the loan assessed at 7% per annum plus a profit sharing interest that is discussed in more detail in Note 6. The principal loan balance of $521,026 includes $6,026 of accrued interest and is scheduled to be repaid within two years.

Note 7 – Leases and Other Commitments

Leases

The Company is a lessee of computer equipment under three capital leases expiring through August 28, 2007. The equipment and respective liabilities under these leases have been recorded at the fair value of the equipment and are being amortized over

the estimated five-year useful life of the equipment. Amortization of equipment under the capital leases is included in depreciation expense for the six months ended June 30, 2005.

Following is a summary of the property held under the capital leases at June 30, 2005:

Computer equipment	$	12,748
Less: accumulated depreciation		(7,023	)

	$	5,725

Minimum future lease payments under the capital lease over its remaining life are as follows for the years ended June 30:

2006	$	4,325
2007		3,394
2008		467
		8,186

Less imputed interest		(1,636	)

Present value of net minimum lease payments	$	6,550

The balance due on this lease as of December 31, 2004 amounted to $283,985. The Company’s RCHL subsidiary has not made any payments towards this obligation since April 2002 and was in default under the terms of the lease agreement. As discussed in Note 1 the dissolution of RCHL was finalized on January 15, 2005. Pursuant to guidance from legal counsel, it is management’s belief that the related liabilities associated with this lease were extinguished in this dissolution. The total lease liability of $283,985 was discharged in the dissolution of RCHL in January 2005.

In addition, the Company leases its Vancouver, B.C. office on a long-term lease expiring on December 31, 2006, payable in monthly installments of approximately $7,000.

Future minimum lease commitments pertaining to the Vancouver office lease expire as follows:

June 30, 2006	$	84,000
December 31, 2006		42,000

Total future minimum lease payments	$	126,000

Land Purchase Agreement

In 2005, the Company entered into an agreement to acquire 3.3998 hectares of land located in the Valle Grande Housing Project, a new housing development near Santiago, Chile, for the purpose of building houses to sell to the general public. The actual price paid for the land will be determined on the date of close, which will be when the seller completes the construction of the property’s infrastructure. The Company expects the final purchase price to be approximately $560,000. The Company has the option to acquire additional land after this transaction is consummated.

In connection with the land purchase, the Company borrowed $515,000 from a shareholder. Under the terms of the loan, the shareholder received an approximate 36.7857% interest in a General Security Agreement that encompasses the Company’s plant located in Lampa, Chile, the Chilean land located as discussed above, 3 module display homes located on the land (once built), and building material used in the building of the houses on the subject land. In order for the Company to sell individual lots to homebuyers free of any encumbrances, the shareholder has agreed to release his security interest in phases of 40 lot increments. In consideration for the loan, the Company has agreed to pay him interest on the loan assessed at 7% per annum plus a profit sharing interest equal to 36.7857% of $3,277 per house on the first 229 houses that the Company sells, totaling approximately $276,052. Profit sharing payments will be made in 11 installments; the first 10 in 20 house increments of approximately $24,109, and then a final payment of approximately $34,962. The shareholder has a right to receive his profit

sharing payments in cash or in shares of the Company’s common stock at a conversion price of $5 per share. The principal loan balance of $515,000 is scheduled to be repaid within two years. Upon the completion of the acquisition the Company is obligated to pay for the infrastructure to the property which is estimated to cost an additional $500,000. If the infrastructure is not paid for by the Company, the Company is required to forfeit the land. The Company has the option to acquire additional land after this transaction is consummated.

Note 8 - Contingencies

The Company is being sued for past due legal fees. The Company is disputing the amounts being charged and the lawsuit is ongoing. In addition, the Company is also being sued for alleged fees due a brokerage firm for duty paid in the transportation of Company assets into Chile. The Company disputes the claim and this lawsuit is also ongoing. Management has accrued in its liabilities what it believes to be a sufficient amount to pay the two claims upon their eventual resolution.

In issuing certificates evidencing the number of shares held by the respective shareholders, the Company’s former transfer agent issued certificates for more shares than were actually outstanding. The Company did not catch this error and these certificates were mailed to the respective shareholders. The Company is in the process of retrieving and canceling the excess issued shares.

Note 9 – Subsequent Events

From July 1, 2005 through November 22, 2005, the Company received $627,880 through the issuance of 125,576 shares of its common stock and issued an additional 18,250 shares to various consultants for services, which were valued at $91,250.

Note 10 – Basis of Presentation and Going Concern

The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, which contemplate continuation of the Company as a going concern. However, the Company has sustained operating losses since its inception (March 27, 1997). In addition, the Company has used substantial amounts of working capital in its operations.

Further, at June 30, 2005, current liabilities exceed current assets by approximately $672,000 and the deficit accumulated during the development stage amounted to approximately $10,486,000. In view of these matters, realization of a major portion of the assets in the accompanying consolidated balance sheet is dependent upon the Company's ability to meet its financing requirements, and the success of its future operations. Management continues to raise funds through private offerings and is in the process of purchasing land on which it plans to construct modular homes for the retail market. Management believes that these sources of funds and current liquid assets will allow the Company to continue as a going concern. However, no assurances can be made that current or anticipated sources of funds will enable the Company to finance future periods' operations.

Canadian Rockport Homes International, Inc.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations for the Three-Months Ended ~~September~~June 30, 2005 ~~2004~~ and ~~2003~~ 2004

From the Company’s inception, it has been in the development stage and has not commenced principal operations. During ~~2004~~ 2005, the Company is continuing the construction of its plant in Chile.

General and administration costs were $~~272~~340,~~695~~603 and $~~245~~491,~~235~~086, respectively, for the three-month periods ended ~~September~~June 30, ~~2004~~2005 and ~~2003~~2004.

Of the $~~272~~340,~~695~~603 incurred during the second ~~third~~ quarter of ~~2004~~2005, $4568,~~156~~939 was incurred in the Company’s Chilean operations. The remaining $~~227~~271,~~539~~664 ~~pertained~~pertains to costs incurred in operating its ~~Canadian~~ Canadian offices and general administration.

The major expenses incurred in Chile during the ~~third~~ second quarter of ~~2004~~2005 consisted of rent amounting to $3,~~947~~747, salaries and related expenses totaling $2917,~~831~~467, professional fees of $1,~~826~~657, office expense of $3,236, depreciation of $5,827, telephone of $1,840, utilities of $25,~~152~~098, taxes and ~~telephone~~licenses of $4,477, travel and ~~utilities~~related expenses of $213,~~187~~980 and supplies of $5,471.

Other general expenses incurred induring the second quarter of 2005 for operating the Company’s Canadian offices ~~during the third quarter of 2004~~ consisted of compensation and related costs of $~~205~~185,~~539~~255 (of which $8059,~~610~~015 has been accrued), professional fees of $18,719, depreciation expense of $810,~~648~~685, rent of $19,~~082~~117, ~~and~~telephone ~~professional fees~~ of $104,~~039. A~~241, ~~total~~consulting expense of $2515,~~000~~441 ~~was~~and ~~received in the third quarter for reimbursement of~~ travel and ~~due~~related ~~diligence~~expenses ~~costs incurred in analyzing the feasibility~~ of ~~establishing manufacturing facilities in Ghana~~$9,286.

Of the $~~245~~491,~~235~~086 ~~general and administration costs~~ incurred during the second ~~third~~ quarter of ~~2003~~2004, $~~113~~47,~~466~~258 was incurred in the Company’s Chilean operations. The remaining $~~131~~443,~~769~~828 pertained to costs incurred in operating its Canadian offices and general administration.

The major expenses incurred in Chile during the ~~third~~ second quarter of ~~2003~~2004 consisted of rent amounting to $3,113, salaries and related expenses totaling $5626,~~170~~700, ~~depreciation~~ ~~expense~~professional fees of $53,~~345~~328, office ~~rent~~expense ~~amounting~~of to $23,~~734~~659, ~~professional fees~~depreciation of $2,~~146~~429, ~~property~~and ~~taxes~~telephone ~~of $3,373~~ and ~~travel~~utilities ~~expense~~ of $222,~~811~~799.

Other general expenses incurred in operating the Company’s Canadian offices during the ~~third~~second quarter of ~~2003~~2004 consist ~~consisted~~ of ~~salaries~~compensation and related ~~payroll~~ costs of $41300,~~756~~943 (of which $147,856 ~~consulting~~has been accrued), professional fees of $1563,~~857~~482, ~~professional~~ consulting fees of $2319,~~157~~575, depreciation ~~rent~~expense of $188,~~158~~334, ~~depreciation~~rent ~~expense~~of $12,364, telephone of $54,~~755~~751, office ~~telephone~~expense of $63,~~339~~462 and ~~office~~travel ~~expense~~expenses of $425,~~398~~124.

Results of Operations for the ~~Nine~~Six-Months Ended ~~September~~June 30, ~~2004 and~~2005 ~~2003~~and 2004

General and administration costs were $1653,~~237,412~~ 768 and $~~743~~964,~~370~~717, respectively, for the ~~nine~~six-month periods ended ~~September~~June 30, ~~2004~~2005 and ~~2003~~2004.

Of the $1653,~~237,412~~768 incurred during the first ~~nine~~ six months of ~~2004~~2005, $~~164~~127,~~225~~036 was incurred in the Company’s Chilean operations. The remaining $1526,~~073,187~~732 ~~pertained~~pertains to costs incurred in operating its ~~Canadian~~ Canadian offices and general administration.

The major expenses incurred in Chile during the first ~~nine~~ six months of ~~2004~~2005 consisted of rent amounting to $107,~~817~~257, salaries and related expenses totaling $9336,~~134~~561, professional fees of $94,~~678~~194, ~~office~~ office expense of $25,~~524~~648, ~~plant~~depreciation ~~maintenance~~ of $78,~~407~~397, ~~depreciation~~telephone of $3,~~686~~316, utilities ~~Chilean~~of $6,791, taxes and licenses of $156,~~637~~759, travel and ~~telephone~~related expenses of $27,710, auto expenses of $3,063 and ~~utilities~~supplies of $146,~~008~~499.

14Other general expenses incurred during the first six months of 2005 for operating the Company’s Canadian offices consisted of compensation and related costs of $332,890 (of which $145,181 has been accrued), professional fees of $55,997, depreciation expense of $20,920, rent of $38,198, telephone of $9,915, consulting expense of $25,420 and travel and related expenses of $18,439.

~~Other~~Of ~~general~~the ~~expenses~~$964,717 incurred ~~in operating the Company’s Canadian offices~~ during the first ~~nine months of 2004 consist of compensation~~ ~~and~~six ~~related~~months ~~costs~~ of ~~$785~~2004,~~178~~ ~~(of which~~ $~~370~~122,~~905~~566 ~~has~~was ~~been~~incurred ~~accrued), professional~~in ~~fees~~the ofCompany’s ~~$100,429,~~Chilean ~~depreciation expense of $25,879, rent~~operations. ofThe remaining $50842,~~048,~~181 ~~telephone~~pertained ofto ~~$14,134,~~costs ~~office~~incurred ~~expense~~in ofoperating ~~$12,373,~~its ~~and~~Canadian ~~travel~~offices ~~expenses~~and ofgeneral ~~$41,010~~administration.

Of the $743,370 incurred during the first nine months of 2003, $294,389 was incurred in the Company’s Chilean operations. The remaining $448,981 pertained to costs incurred in operating its Canadian offices and general administration.15

The major expenses incurred in Chile during the first ~~nine~~ six months of ~~2003~~2004 consisted of rent amounting to $6,869, salaries and related expenses totaling $~~130~~63,~~134~~302, professional fees of $105,~~128~~810, office ~~plant~~expense ~~rental~~of ~~expense~~$4,763, plant maintenance of $147,~~186~~407, depreciation ~~expense~~ of $215,~~381~~ 031, and ~~travel~~telephone ~~expense~~and utilities of $396,~~444~~154.

Other general expenses incurred in operating the Company’s Canadian offices during the first ~~nine~~six months of ~~2003~~2004 consist ~~consisted~~ of compensation and related costs of $~~175~~582,~~842~~664 (of which $295,712 ~~consulting~~has been accrued), professional fees of $4482,~~164~~891, ~~professional~~ consulting fees of $3311,~~549~~069, depreciation ~~advertising~~expense ~~and promotion~~ of $3216,~~304~~627, rent of $5330,~~021~~967, telephone of $1410,~~618~~454, ~~depreciation~~ office expense of $129,~~501~~049, and ~~office~~travel ~~supplies~~ expenses of $1254,762.

Liquidity and Capital Resources

Cash and cash equivalents as of ~~September~~ June 30, ~~2004~~2005 and ~~2003~~ 2004 were $8577,~~786~~065 and $6428,~~802~~123, respectively.

During the ~~nine~~ six-months ended ~~September~~June 30, ~~2004~~ 2005, the Company received a total of $~~877~~1,~~631~~025,274 through the sale of ~~175~~205,~~867~~ 045 shares of ~~its~~the Company’s common stock. During the same period, the Company paid $~~744~~493,~~697~~873 in its operations, ~~paid~~ received $~~209,770~~164 ~~towards~~from the ~~construction~~disposal of ~~the~~equipment, purchased equipment for its Canadian offices totaling $11,029, purchased equipment for its Chilean plant of $182,403, paid $2316,~~534, for~~794 towards the construction ~~purchase~~ of ~~office~~its ~~equipment~~Chilean plant, paid $4920,~~970~~413 in costs associated with its private offerings, received $74,895 in loans from its ~~public~~President, ~~offering~~made loan repayments to its President of $14,221, paid $12,274 in deferred loan costs, received $515,000 in a loan from a shareholder and made principal payments on its equipment leases totaling $1,~~837~~577. Construction costs associated with the building of the Chilean plant include salaries and related benefits of those employees involved in the actual construction.

During the ~~nine~~six months ended ~~September~~June 30, ~~2003~~ 2004, the Company received ~~net~~a ~~proceeds~~total of $~~757~~709,~~902,~~432 ~~of which $754,359 was received~~ through the sale of ~~150~~141,~~606~~ 958 shares of ~~the~~its ~~Company’s~~ common stock,. ~~$3,363 was~~During athe ~~repayment~~same ofperiod, ~~an advance to an unrelated third party and $180 in interest. Of~~ the ~~amount~~Company ~~received,~~paid $~~660~~567,~~041~~311 ~~was used~~ in its ~~the Company’s~~ operations, paid $~~167~~207,~~764~~688 ~~was~~towards ~~used in~~ the construction of ~~its~~the Chilean plant, paid ~~and~~$2,231 for the purchase of ~~other~~office equipment, paid $~~685~~42,603 ~~reduction~~ in ~~the~~costs associated ~~principal~~with ~~balance~~its ~~due~~public ~~on the purchase of computer equipment~~offering, and ~~$53,557~~made ~~was~~principal ~~used~~payments inon ~~connection~~its equipment ~~with~~leases ~~the~~totaling ~~Company’s public offering~~$1,185.

Critical Accounting Policies

The discussion and analysis of the Company’s financial condition and results of operations are based upon its consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. In consultation with its Board of Directors, the Company has identified two accounting policies that it believes are key to an understanding of its financial statements. These are important accounting policies that require management’s most difficult, subjective judgments.

The first critical accounting policy relates to the accounting for costs incurred in the construction of the Company’s molds and related plant. All costs incurred in the construction of molds and plant are capitalized until completion. The molds will be depreciated over their respective lives. The costs incurred in the construction of the plant will be depreciated over the lesser of the useful life of the plant or the term of the lease of the building housing the respective assets (if applicable).

The second critical accounting policy relates to expense recognition. All expenses are recognized at the time the respective expense was incurred.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Canadian Rockport Homes International, Inc. may be subject to market risk in the form of interest rate risk and foreign currency risk. Canadian Rockport Homes International, Inc. is a development stage company with limited operations to date, and neither interest rate nor foreign currency has had a material impact on such operations.

The Company's exposure to interest rate changes primarily relates to long-term debt used to fund future property acquisitions. Management's objective is to limit any impact of interest rate changes and may include any borrowing to be negotiated at fixed rates. Although interest rate changes have had no material ~~affect~~effect on operations to date, management must continually ~~evaluate~~ evaluate such rates as manufacturing operations commence, corporate profitability is is achieved, and expansion is being considered. The Company may also establish lines of credit through traditional banking venues to insure liquidity during future periods of growth, and may consider fixed or variable rate bank lines consistent with any fluctuation of interest rates at the time of such growth.

1516

The Company's exposure to foreign currency exchange risk requires continuing management attention to the stability of the countries in which operations may be planned, as well as trade relations between the selected country(s) and Canada. Both trade relations and stability as pursuant to planned operations in Chile are currently favorable. Canadian Rockport Homes International, Inc. will continue to comprehensively evaluate conditions in countries where operations are in place and where future operations are planned, and will take any measures feasible at the time to minimize foreign currency risk. Such measures may include, but are not limited to a reduction in operations or relocating a portion of operations to a more favorable environment.

Item 4. Controls and Procedures

~~Evaluation~~As of ~~disclosure~~June ~~controls~~30, ~~and~~2005, ~~procedures. The~~an ~~Company~~evaluation ~~maintains a system of internal controls and procedures designed~~was tocarried ~~provide~~out ~~reasonable~~under ~~assurance as to~~ the ~~reliability~~supervision ~~of the Company's published consolidated financial statements~~ and ~~other~~with ~~disclosures included in this report. Within~~ the ~~90-day~~participation ~~period prior to the date~~ of ~~this report,~~ the Company's ~~Chief~~ ~~Executive~~management, ~~Officer~~including ~~and~~our Chief ~~Financial~~Executive Officer, ~~evaluated~~of the effectiveness of ~~the~~ the design and operation of ~~the~~our ~~Company's~~ disclosure controls and procedures ~~pursuant~~ to(as defined in Rule 13a-1415(e) ofand 15d-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, the ~~Company's~~ Chief Executive Officer ~~and Chief Financial Officer~~ concluded that the ~~Company's~~design and operation of these disclosure controls and procedures ~~are~~were effective. No tosignificant ~~ensure~~changes ~~that~~were ~~the~~made ~~Company~~in isour ~~able~~internal tocontrols ~~collect,~~or ~~process~~in ~~and~~other ~~disclose~~factors ~~the information~~that itcould issignificantly ~~required~~affect tothese ~~disclose~~controls insubsequent ~~the~~to ~~report~~June it30, ~~files with the Securities and Exchange Commissions within the required time periods~~2005.

Changes in internal controls. Since the date of the most recent evaluation of the Company's internal controls by the Company's Chief Executive Officer and Chief Financial Officer, there have been no significant changes in such controls or in other factors that could have significantly affected those controls, including any corrective actions with regard to significant deficiencies and material weaknesses.

	(a)	Evaluation of Disclosure Controls and Procedures. The Company carried out an evaluation under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer ("CEO") of the effectiveness of the Company's disclosure controls and procedures. Based upon that evaluation, the CEO concluded that as of June 30, 2005, our disclosure controls and procedures were effective in timely alerting them to the material information relating to the Company (or the Company's consolidated subsidiaries) required to be included in the Company's periodic filings with the SEC, subject to the various limitations on effectiveness set forth below under the heading, "LIMITATIONS ON THE EFFECTIVENESS OF INTERNAL CONTROLS," such that the information relating to the Company, required to be disclosed in SEC reports (i) is recorded, processed, summarized and could be reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to the Company's management, including our CEO, as appropriate to allow timely decisions regarding required disclosure.

	(b)	Changes in internal control over financial reporting.. There has been no change in the Company's internal control over financial reporting that occurred during the fiscal quarter ended June 30, 2005that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

16LIMITATIONS ON THE EFFECTIVENESS OF INTERNAL CONTROLS

The Company's management, including the CEO, does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of the control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, and/or the degree of compliance with the policies or procedures may deteriorate.

Canadian Rockport Homes International, Inc.

PART II. - OTHER INFORMATION

Item 1. Legal Proceedings

~~None~~The Company is being sued for past due legal fees. The Company is disputing the amounts being charged and the lawsuit is ongoing. In addition, the Company is also being sued for alleged fees due a brokerage firm for duty paid in the transportation of Company assets into Chile. The Company disputes the claim and this lawsuit is also on-going. Management has accrued in its liabilities what it believes to be a sufficient amount to pay the two claims upon their eventual resolution.

Item 2. Changes in Securities and Use of Proceeds

During the three-months ended ~~September~~June 30, ~~2004~~ 2005, the Company received a total of $~~168~~408,~~199~~526 through the sale of 3381,~~309~~700 shares of of the Company’s common stock. During the same period it issued 124,~~569~~900 shares of of its common stock for services rendered in connection with its ~~public~~private ~~offering~~offerings. All shares issued for non-monetary consideration were valued at $5.00 per share.

During the period from ~~October~~July 1, ~~2004~~ 2005 through ~~April 4~~November 22, 2005, the Company ~~issued~~received ~~380~~$627,~~765~~880 through the issuance of 125,576 shares of its common stock ~~in exchange for $1,903,825~~ and issued 4an additional 18,~~013~~250 shares ofto various ~~its~~consultants ~~common stock~~ for services, which were valued at $2091,~~065~~250.

Item 3. Defaults Upon Senior Securities

None

Item 4. Submission of Matters to a Vote of Security Holders

Not applicable

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

Exhibits

Canadian Rockport Homes International, Inc. includes herewith the following:

	Number	Description

	31.1	Certification of Principal Executive Officer pursuant to Section 302

	31.2	Certification of Principal Accounting Officer pursuant to Section 302

	32.1	Certification of Principal Executive Officer pursuant to Section 1350

	32.2	Certification of Principal Accounting Officer pursuant to Section 1350

The following documents are incorporated by reference, as noted in each description, to this report:

	Number	Description

	3 (a)	Articles of Incorporation of the registrant (filed as Exhibit 3.1 to the registrant's Registration Statement on Form S-1 (Number 333-62786) as amended, filed October 30, 2001), and incorporated herein by reference.


	3 (b)	Bylaws and Amendments of the registrant (filed as Exhibit 3.5 to the registrant's Registration Statement on Form S-1 (Number 333-62786) as amended, filed October 30, 2001), and incorporated herein by reference.

Reports on Form 8-K

~~No filings were made during the period covered by this report.~~None

Canadian Rockport Homes International, Inc.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Canadian Rockport Homes International, Inc.
	Registrant
Date: April 11, 2005	By:	/s/ William R. Malone, CEO
Date: December 6, 2005	By:	/s/ William R. Malone, CEO
		William R. Malone, CEO

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: April 11, 2005	By:	/s/ William R. Malone, President
Date: December 6, 2005	By:	/s/ William R. Malone, President
		William R. Malone, President and Director
Date: April 11, 2005	By:	/s/ Shannon Downs, Secretary/Treasurer
Date: December 6, 2005	By:	/s/ Donel Belsby, Secretary/Treasurer
		Shannon Downs, Secretary/Treasurer and
		Donel Belsby, Secretary/Treasurer and
		Director
Date: April 11, 2005	By:	/s/ Nelson Riis, Director
		Nelson Riis, Director

Date: December 6, 2005	By:	/s/ Chris Kinch, Director
		Chris Kinch, Director

Filing Compare · Canadian Rockport Homes Int'l, Inc.