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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 the quarterly period ended June 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)

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.

APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares outstanding of each of the issuer's classes of common equity.
As of March 7, 2005 there were 15,997,109 shares of Common Stock issued and outstanding.

Index

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PART I.     FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

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Supplemental Information:

Non-cash Investing and Financing Activities:

During the second quarter of 2004, the Company issued 1,954 shares of its common stock in consideration for services rendered in connection with the Company's public offering. The issued shares were valued at $9,770. The costs attributed to the issued shares were netted against the proceeds received.

Cash Paid For:

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

NOTES TO (UNAUDITED) 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 June 30, 2004, and the results of its operations and cash flows for the three-month and six-month periods ended June 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.

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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.

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.

The Company also formed a subsidiary in 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, 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.

For ease in administration and to reduce costs, the Company in 2003 decided to dissolve “RHCL” and operate its Chilean operations solely through RT, which currently owns significantly all of the Company’s Chilean assets. The dissolution of RCHL was finalized on January 15, 2005.

Principles of Consolidation

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

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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 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.

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 June 30, 2003 and 2004 was $11,773, and $10,763, respectively. Depreciation expense for the six months ended June 30, 2003 and 2004 was $22,285 and $21,658, respectively.

Intangible Assets

Patents are being amortized over their respective remaining lives of 18 years. Amortization expense for the three months ended June 30, 2003 and 2004 was $167, and $167, respectively. Amortization expense for the six months ended June 30, 2003 and 2004 was $334, and $335, respectively.

Intangible assets consist of the following:

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

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Net Loss Per Share

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 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.

Issuances Involving Non-cash Consideration

All issuances of the Company’s stock 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. The majority of the non-cash consideration received pertains to services rendered by consultants and others.

Cash 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.

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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 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.

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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 $34,000. The difference of approximately $48,000 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 six months ended June 30, 2004, the Company issued 141,958 shares of its common stock through a private offering in exchange for $482,649. In addition, during the six month period, the Company issued 2,604 shares for consulting services in connection with the private offering valued at $13,020 and 1,175 shares for other services valued at $5,875.

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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 June 30, 2004 totaled $111,802. Interest charged to operations for the six months ended June 30, 2004 was $2,530.

Note 6 - Leases

The Company is a lessee of computer equipment under a 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, 2004.

Following is a summary of the property held under the capital lease at June 30, 2004:

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

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 June 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 June 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 l lease expires as follows:

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Note 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 included in the June 30, 2004 financial statements.

From July 1, 2004 through March 5, 2005, the Company received $844,970 through the issuance of 168,994 shares of its common stock and issued an additional 4,482 shares to various consultants for services, which were valued at $22,410.

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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 June 30, 2004 and 2003

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

General and administration costs were $491,086 and $247,962, respectively, for the three-month periods ended June 30, 2004 and 2003.

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

The major expenses incurred in Chile during the second quarter of 2004 consisted of rent amounting to $3,113, salaries and related expenses totaling $26,700, professional fees of $3,328, office expense of $3,659, depreciation of $2,429, and telephone and utilities of $2,799.

Other general expenses incurred in operating the Company’s Canadian offices during the second quarter of 2004 consist of compensation and related costs of $300,943 (of which $147,856 has been accrued), professional fees of $63,482, consulting fees of $19,575, depreciation expense of $8,334, rent of $12,364, telephone of $4,751, office expense of $3,462 and travel expenses of $25,124.

Of the $247,962 incurred during the second quarter of 2003, $64,368 was incurred in the Company’s Chilean operations. The remaining $183,594 pertained to costs incurred in operating its Canadian offices and general administration.

The major expenses incurred in Chile during the second quarter of 2003 consisted of salaries and related expenses totaling $39,230, rent amounting to $2,809, professional fees of $1,425, supplies of $3,878 and travel expense of $7,110.

Other general expenses incurred in operating the Company’s Canadian offices during the second quarter of 2003 consisted of salaries and related payroll costs

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of $71,602, consulting fees of $14,869, professional fees of $24,627, advertising and promotion of $17,846, rent of $17,929, telephone of $3,578 and office supplies of $3,260.

Results of Operations for the Six-Months Ended June 30, 2004 and 2003

General and administration costs were $964,717 and $498,133, respectively, for the six-month periods ended June 30, 2004 and 2003.

Of the $964,717 incurred during the first six months of 2004, $122,566 was incurred in the Company’s Chilean operations. The remaining $842,181 pertained to costs incurred in operating its Canadian offices and general administration.

The major expenses incurred in Chile during the first six months of 2004 consisted of rent amounting to $6,869, salaries and related expenses totaling $63,302, professional fees of $5,810, office expense of $4,763, plant maintenance of $7,407, depreciation of $5,031, and telephone and utilities of $6,154.

Other general expenses incurred in operating the Company’s Canadian offices during the first six months of 2004 consist of compensation and related costs of $582,664 (of which $295,712 has been accrued), professional fees of $82,891, consulting fees of $11,069, depreciation expense of $16,627, rent of $30,967, telephone of $10,454, office expense of $9,049, and travel expenses of $54,762.

Of the $498,133 incurred during the first six months of 2003, $155,521 was incurred in the Company’s Chilean operations. The remaining $342,612 pertained to costs incurred in operating its Canadian offices and general administration.

The major expenses incurred in Chile during the first six months of 2003 consisted of salaries and related expenses totaling $69,636, professional fees of $5,566, rent of $14,486 and travel expense of $13,383.

Other general expenses incurred in operating the Company’s Canadian offices during the first six months of 2003 consist of compensation and related costs of $141,594, consulting fees of $28,306, professional fees of $28,265, advertising and promotion of $36,980, rent of $34,864, telephone of $8,279 and office supplies of $8,364.

Liquidity and Capital Resources

Cash and cash equivalents as of June 30, 2004 and 2003 were $28,123 and $26,229, respectively.

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During the six months ended June 30, 2004, the Company received a total of $709,432 through the sale of 141,958 shares of its common stock. During the same period, the Company paid $567,311 in its operations, paid $207,688 towards the construction of the Chilean plant, paid $2,231 for the purchase of office equipment, paid $42,603 in costs associated with its public offering, and made principal payments on its equipment leases totaling $1,185.

During the six months ended June 30, 2003, the Company received a total of $482,649 through the sale of 96,530 shares of its common stock, $2,917 in commissions earned on timber sales, $178 in interest and $2,242 on a repayment of consulting fees paid in a previous year. During the same period, the Company paid $415,617 in its operations, used $145,207 in the construction of its Chilean plant and modular display home, paid $43,686 in costs associated with its public offering, made $110 in loan repayments to an officer, and paid $399 in principal reductions on capital leases.

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 on operations to date, management must continually evaluate such rates as manufacturing operations commence, corporate profitability 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.

The Company's exposure to foreign currency exchange 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.

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Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures. The Company maintains a system of internal controls and procedures designed to provide reasonable assurance as to the reliability of the Company's published consolidated financial statements and other disclosures included in this report. Within the 90-day period prior to the date of this report, the Company's Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Rule 13a-14 of 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 disclosure controls and procedures are effective to ensure that the Company is able to collect, process and disclose the information it is required to disclose in the report it files with the Securities and Exchange Commissions within the required time periods.

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.

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Canadian Rockport Homes International, Inc.

PART II.         OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 2. Changes in Securities and Use of Proceeds

During the three-months ended June 30, 2004, the Company received a total of $264,558 through the sale of 53,853 shares of the Company’s common stock. During the same period it issued 1,954 shares of its common stock for services rendered in connection with its public offering. All shares issued for non-monetary consideration were valued at $5.00 per share.

During the period from July 1, 2004 through March 7, 2005, the Company issued 168,944 shares of its common stock in exchange for $844,970 and issued 4,482 shares of its common stock for services valued at $22,410.

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:

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

Reports on Form 8-K

No filings were made during the period covered by this report.

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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.

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.

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