SECURITIES AND
EXCHANGE COMMISSION WASHINGTON, D.C. 20549

# FORM 10-QSB

# QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THESECURITIES EXCHANGE ACT OF 1934

# FOR THE QUARTERLY
PERIOD ENDED March 31, 2004

Commission File
#000-31935

TERRA BLOCK
INTERNATIONAL, INC.(Exact name of small business issuer as specified in its charter)

NEVADA (State
or other jurisdiction of incorporation or organization)

65-0729440 (IRS Employer
Identification Number)

2637 Erie Avenue, Suite
207, Cincinnati, OH 45208(Address of principal executive offices)(Zip Code)

(513) 533-1220 (Registrants telephone no., including area code)

Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 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. Yes [X] No [ ]

Title of Class Number of Shares
Outstanding: Common Stock, par value $.001 per share 28,065,018 outstanding as of May12,
2004.

Documents Incorporated by
Reference: None

# TERRA BLOCK
INTERNATIONAL, INC.FORM 10-QSB

# Table of Contents

|PART  I - FINANCIAL  INFORMATION                                      | F-1
|--------------------------------------------------------------------- | ---
|                                                                      |    
|Item  1 - Financial  Statements                                       | F-1
|                                                                      |    
|Item  2 - Management's  Discussion  and Analysis or Plan of Operation | 3  
|                                                                      |    
|Item  3 - Controls and Procedures                                     | 5  
|                                                                      |    
|                                                                      |    
|                                                                      |    
|PART II - OTHER INFORMATION                                           | 6  
|                                                                      |    
|Item  2 - Changes  in  Securities  and  Use  of  Proceeds             | 6  
|                                                                      |    
|Item  6 - Exhibits and Reports  on  Form  8-K                         | 6  
|                                                                      |    
|SIGNATURES                                                            | 6  

2

# PART I 
FINANCIAL INFORMATION

# Item 1. Consolidated
Financial Statements

The financial statements of the
company are set forth beginning on page F-1.

Pollard-Kelley Auditing
Services,
Inc. Auditing Services
              3250
West Market St, Suite 307, Fairlawn, OH 44333 330-864-2265

Report of
Independent Certified Public Accountants

Board of Directors

Terra Block
International, Inc. and Subsidiary

We have reviewed the accompanying
consolidated balance sheets of Terra Block International, Inc and Subsidiary as of March
31, 2004 and the related consolidated statements of income, stockholders equity, and
cash flows for the three months then ended, year to date, and since inception, in
accordance with standards established by the American Institute of Certified Public
Accountants. All information included in these financial statements is the representation
of the management of Terra Block International, Inc. and Subsidiary.

A review consists principally of
inquiries of company personnel and analytical procedures applied to financial data. It is
substantially less in scope than an audit in accordance with generally accepted auditing
standards, the object of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.

The Company has not generated
significant revenues or profits to date. This factor among others including the notes
payable defaults, may indicate the Company will be unable to continue as a going concern.
The Companys continuation as a going concern depends upon its ability to generate
sufficient cash flow to conduct its operations and its ability to obtain additional
sources of capital and financing. The accompanying consolidated financial statements do
not include any adjustments that might result from the outcome of this uncertainty.

Based on our review, we are not aware
of any material modifications that should be made to the March 31, 2004 financial
statements in order for them to be in conformity with generally accepted accounting
principles accepted in the United States of America.

Pollard-Kelley Auditing
Services, Inc.

Terance L Kelley
Certified Public Accountant May 10, 2004Fairlawn, Ohio

F-1

TERRA BLOCK
INTERNATIONAL, INC AND SUBSIDIARY (A Developement Stage
Company)CONSOLIDATED BALANCE SHEETMarch 31, 2004

|ASSETS                                     | 2004
|------------------------------------------ | ----
|Current Assets                             |     
|Cash and cash equivalents                  |     
|                                           |     
|Notes receivable                           |     
|Total Current Assets                       |     
|Fixed Assets                               |     
|Machinery and equipment                    |     
|                                           |     
|Total Assets                               |     
|                                           |     
|LIABILITIES AND STOCKHOLDERS' EQUITY       |     
|Current Liabilities                        |     
|Notes payable                              |     
|Accounts payable                           |     
|Accrued salaries                           |     
|Accrued interest                           |     
|                                           |     
|Total Current Liabilities                  |     
|Stockholders' Equity                       |     
|Preferred stock                            |     
|Common stock                               |     
|Additional contributed capital             |     
|Deficit accumulated during the             |     
|development stage                          |     
|                                           |     
|                                           |     
|                                           |     
|Total Liabilities and Stockholders' Equity |     
|                                           |     

See
accompanying notes to financial statements.

F-2

TERRA BLOCK INTERNATIONAL, INC AND
SUBSIDIARY(A Development Stage
Company)CONSOLIDATED STATEMENT OF OPERATIONSFor the Three Months ended March 31, 2004, Year to Date 2004 and for the Period From May 30,
2002 (Date of Inception) Through March 31, 2004 (Since Inception)

|                           | Three Months
Ending
March 31,
2004 | Year to
Date
2004 | Since
Inception
|-------------------------- | ---------------------------------- | ----------------- | ---------------
|Revenues                   |                                    |                   | $              
|Expenses                   |                                    |                  
|Office                     |                                    |                   |                
|Interest                   |                                    |                   |                
|Licensor expenses          |                                    |                   |                
|Professional fees          |                                    |                   |                
|Rent                       |                                    |                   |                
|Salaries                   |                                    |                   |                
|Travel                     |                                    |                   |                
|                           |                                    |                   |                
|                           |                                    |                   |                
|                           |                                    |                   |                
|Net Loss                   |                                    |                   | $              
|                           |                                    |                   |                
|Loss per share             |                                    |                   | $              
|Average shares outstanding |                                    |                   |                

See
accompanying notes to financial statements.

F-3

TERRA BLOCK INTERNATIONAL, INC AND
SUBSIDIARY(A Development Stage Company)CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Since Inception through March 31, 2004

|                           | Preferred Stock
Shares | Amount | Common Stock
Shares | Amount | Contributed
Capital | Deficit
Accumulated
During the
Development
Stage | Total
|-------------------------- | ---------------------- | ------ | ------------------- | ------ | ------------------- | ------------------------------------------------ | -----
|May, 2002 Inception        |                        |        | -                   |        |                     | -                                                |      
|Original issue for cash    |                        |       
|and services               |                        |        | -                   |        |                     | -                                                |      
|Net Loss                   |                        |        | -                   |        |                     | -                                                |      
|Balance December 31, 2002  |                        |        | -                   |        |                     | -                                                |      
|Merger with LL Brown       |                        |       
|International Inc.         |                        |        | -                   |        |                     | -                                                |      
|Shares issued for services |                        |        | -                   |        |                     | -                                                |      
|Shares issued for interest |                        |        | -                   |        |                     | -                                                |      
|Dividends paid             |                        |        | -                   |        |                     | -                                                |      
|Net loss                   |                        |        | -                   |        |                     | -                                                |      
|                           |                        |        |                     |        |                     |                                                  |      
|Balance December 31, 2003  |                        |        | -                   |        |                     | -                                                |      
|Sale of shares             |                        |        | -                   |        |                     | -                                                |      
|Shares issued for services |                        |        | -                   |        |                     | -                                                |      
|Net loss for the quarter   |                        |        | -                   |        |                     | -                                                |      
|                           |                        |        |                     |        |                     |                                                  |      
|Balance March 31, 2004     |                        |        | -                   |        |                     | -                                                |      

See
accompanying notes to financial statements.

F-4

TERRA BLOCK INTERNATIONAL, INC AND
SUBSIDIARY(A Development Stage Company)CONSOLIDATED STATEMENT
OF CASH FLOWSFor the Three Months ended March 31, 2004, Year to Date 2004 and for the Period From May 30,
2002 (Date of Inception) Through March 31, 2004 (Since Inception)

|                                            | Three Months
Ending
March 31,
2004 | Year to
Date
2004 | Since
Inception
|------------------------------------------- | ---------------------------------- | ----------------- | ---------------
|Cash Flows from Operating Activities        |                                    |                   |                
|Net Loss                                    |                                    |                   | $              
|Adjustments to reconcile net loss to net    |                                    |                  
|cash provided by operating activities       |                                    |                  
|                                            |                                    |                   |                
|Depreciation and amortization               |                                    |                   |                
|                                            |                                    |                   |                
|Stock for services                          |                                    |                   |                
|                                            |                                    |                   |                
|Stock for interest                          |                                    |                   |                
|                                            |                                    |                   |                
|Decrease in Start Up Costs                  |                                    |                   |                
|                                            |                                    |                   |                
|Increase in Accounts payable                |                                    |                   |                
|                                            |                                    |                   |                
|Increase in Accrued salaries                |                                    |                   |                
|                                            |                                    |                   |                
|Increase in Accrued interest                |                                    |                   |                
|                                            |                                    |                   |                
|Net Cash (Used) by Operating Activities     |                                    |                   |                
|Cash Flows from Investing Activities        |                                    |                  
|                                            |                                    |                   |                
|Increase in Notes receivable                |                                    |                   |                
|                                            |                                    |                   |                
|Purchase of Fixed assets                    |                                    |                   |                
|                                            |                                    |                   |                
|Increase in Start Up Costs                  |                                    |                   |                
|                                            |                                    |                   |                
|                                            |                                    |                   |                
|Net Cash (Used) by Investing Activities     |                                    |                   |                
|Cash Flows from Financing Activities        |                                    |                  
|                                            |                                    |                   |                
|Payments on Notes payable                   |                                    |                   |                
|                                            |                                    |                   |                
|Increase in Notes payable                   |                                    |                   |                
|                                            |                                    |                   |                
|Funds paid for Merger shell                 |                                    |                   |                
|                                            |                                    |                   |                
|Dividend paid                               |                                    |                   |                
|                                            |                                    |                   |                
|Sale of Common stock                        |                                    |                   |                
|                                            |                                    |                   |                
|                                            |                                    |                   |                
|Cash Flows Provided by Financing Activities |                                    |                   |                
|                                            |                                    |                   |                
|                                            |                                    |                   |                
|Net Increase in Cash and Cash Equivalents   |                                    |                   |                
|                                            |                                    |                   |                
|Cash and Cash Equivalents - Beginning       |                                    |                   |                
|                                            |                                    |                   |                
|Cash and Cash Equivalents - Ending          |                                    |                   | $              
|                                            |                                    |                   |                

See
accompanying notes to financial statements.

F-5

TERRA BLOCK INTERNATIONAL INC. AND
SUBSIDIARY(A Development Stage
Company) NOTES TO FINANCIAL
STATEMENTS

March 31, 2004

NOTE 1  SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES

History:

The Company is a Nevada corporation incorporated on February 19, 1997, and is a reporting company with the
Securities and Exchange Commission. It changed its name from L.L. Brown International, Inc. to Terra Block
International Inc. on February 19, 2003.

On February 14, 2003 the Company
entered into a Share Exchange Agreement with Terra Block Consolidated, Inc. The agreement
provides for 100% of the shares of Terra Block Consolidated, Inc. to be acquired by the
Company in exchange for shares of common stock of the Company, with the total issued and
outstanding shares of the Company immediately after the closing and a 2 to 1 reverse
split, of 10,000,018. The Companys former subsidiary, LLBA has been spun off,
leaving Terra Block Consolidated, Inc. as the sole operating subsidiary of the Company
after effecting the agreement. The new combination also assumed $100,660 of accounts
payable. The combination was accounted for as a reverse merger whereby the acquired
company is treated as the acquiring company for accounting purposes.

Terra Block Consolidated, Inc. was
incorporated in Nevada on May 30, 2002 and engages in the manufacture, distribution and
application of technologically advanced building products through a licensing arrangement
with Terra Block, Inc. Terra Block Consolidated, Inc. has the exclusive right to make,
have made, use and sell Terra Block, Inc.s products anywhere in the world. Terra
Block, Inc. is a related party of Terra Block International, Inc. as a shareholder. The
license agreements provides Terra Block Consolidated, Inc. the rights to all patented
technologies, trade secret materials, copyrights, trademarks and all intellectual property
of Terra Block Inc. The license is valid until terminated by Terra Block Consolidated,
Inc. with 30 days advance written notice to Terra Block, Inc. or by Terra Block, Inc. if
there is a material breach of the licensing agreement by Terra Block Consolidated, Inc.
Under this agreement, Terra Block Consolidated, Inc. has the exclusive right to buy the
license patent rights for $10,000,000.

On January 21, 2004 the Company
entered into a Stock Purchase Agreement with an individual to sell 3,600,000 shares of
common stock for $250,000. In addition the purchaser is to receive redeemable common stock
purchase warrants to acquire 1,000,000 shares of common stock at an exercise price of $.10
per share until January 20, 2009. In addition, 1,500,000 shares of common stock were
issued as a commission in connection with this stock sale.

F-6

TERRA BLOCK INTERNATIONAL INC. AND
SUBSIDIARY(A Development Stage
Company) NOTES TO FINANCIAL
STATEMENTS

March 31, 2004

NOTE 1  SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES  CONTINUED

Basis of Consolidation:

The accompanying consolidated financial
statements include the accounts of Terra Block International Inc. and Terra Block
Consolidated, Inc. All significant inter-company accounts and transactions, if any, have
been eliminated in consolidation.

Cash and Cash Equivalents:

For the purposes of the Statement of
Cash Flows, the Company considers all short-term debt securities to be cash equivalents.

Cash paid during the period for:

|             | Ended:
March 31,
2004 | Year to date
2004 | Since
Inception
|------------ | --------------------- | ----------------- | ---------------
|Interest     |                       |                   | $              
|Income taxes |                       |                   | $              

Income Taxes:

The Company accounts for income taxes
under a method, which requires a company to recognize deferred tax assets and liabilities
for the expected future tax consequences of events that have been recognized in a
companys financial statements or tax returns. Under this method, deferred tax assets
and liabilities are determined based on the difference between the financial statements
carrying amounts and tax basis of assets and liabilities using enacted tax rates. The
Company presently prepares its tax return on the cash basis and its financial statements
on the accrual basis. No deferred tax assets or liabilities have been recognized at this
time, since the Company has shown losses for both tax and financial reporting. The
Companys net operating loss carry forward at March 31, 2004 is approximately
$1,000,000.

Use of Estimates:

The preparation of financial
statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.

F-7

TERRA BLOCK INTERNATIONAL INC. AND SUBSIDIARY
(A Development Stage
Company) NOTES TO FINANCIAL
STATEMENTS

March 31, 2004

NOTE 1  SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES  CONTINUED

Development Stage:

The Company is classified as a
development stage entity since it devotes most of its activities to establishing business
and its principal activities have not yet commenced.

NOTE 2  NOTES
RECEIVABLE

On March 23, 2004 the Company lent an
individual, residing in Canada, $10,000 The Company received a Promissory Note dated April
7, 2004. The note is due May 31, 2004 with accrued interest at 10%. The note is unsecured.

NOTE 3  NOTES
PAYABLE

Terra Block Consolidated,
Inc.s Notes Payable:

On October 15, 2002 the Company
entered into a loan agreement with an individual to borrow $15,000. The terms of the
agreement called for the principal sum of $15,000 to be paid on or before November 15,
2002 and an additional interest amount of $15,000 to be paid on April 15, 2003. The note
is unsecured. A payment of $7,500 was made on February 3, 2004. The Company is in default
under this agreement. The lender has not made formal demand for payment to date. The
balance due on this note at March 31, 2004 was $7,500 plus accrued interest.

On October 21, 2002 the Company
entered into a loan agreement with an individual to borrow $10,000. The terms of the
agreement called for the principal sum of $10,000 to be paid within 45 days, and an
additional interest amount of $10,000 to be paid within 180 days. The note is unsecured. A
payment of $5,000 was made on February 3, 2004. The Company is in default under this
agreement. The lender has not made formal demand for payment to date. The balance due on
this note at March 31, 2004 was $5,000 plus accrued interest.

On December 19, 2002 the Company
entered into a loan agreement with an individual to borrow $10,000. The terms of the
agreement called for the principal sum of $10,000 to be paid on or before April 15, 2003
plus interest of $2,000. In the event that the principal has not been repaid by April 30,
2003, additional interest is owed equal to $200 per month thereafter. In addition 10,000
shares of common stock will be delivered as additional consideration. The note is
unsecured. In addition to the issue of common stock, a payment of $5,000 was made on
February 3, 2004. The Company is in default under this agreement. The lender has not made
formal demand for payment to date. The

F-8

TERRA BLOCK INTERNATIONAL INC. AND SUBSIDIARY
(A Development Stage
Company) NOTES TO FINANCIAL
STATEMENTS

March 31, 2004

NOTE 3  NOTES
PAYABLE  CONTINUED

balance due on this note at March 31,
2004 was $5,000 plus accrued interest.

On December 19, 2002 the Company
entered into a loan agreement with an individual to borrow $10,000. The terms of the
agreement called for the principal sum of $10,000 to be paid on or before April 15, 2003
plus interest of $2,000. In the event that the principal has not been repaid by April 30,
2003, additional interest is owed equal to $200 per month thereafter. In addition 10,000
shares of common stock will be delivered as additional consideration. The note is
unsecured. In addition to the issue of common stock, a payment of $5,000 was made on
February 3, 2004. The Company is in default under this agreement. The lender has not made
formal demand for payment to date. The balance due on this note at March 31, 2004 was
$5,000 plus accrued interest.

On December 20, 2002 the Company
entered into a loan agreement with an individual to borrow $10,000. The terms of the
agreement called for the principal sum of $10,000 to be paid on or before March 20, 2003
plus interest of $2,000. The note is unsecured. A payment of $5,000 was made on February
3, 2004. The Company is in default under this agreement. The lender has not made formal
demand for payment to date. The balance due on this note at March 31, 2004 was $5,000 plus
accrued interest.

On December 23, 2002 the Company
entered into a loan agreement with an individual to borrow $5,000. The terms of the
agreement called for the principal sum of $5,000 to be paid on or before April 23, 2003
plus interest of $1,000. The note is unsecured. A payment of $2,500 was made on February
3, 2004. The Company is in default under this agreement. The lender has not made formal
demand for payment to date. The balance due on this note at March 31, 2004 was $2,500 plus
accrued interest.

On January 15, 2003 the Company
entered into a loan agreement with an individual to borrow $20,000. The terms of the
agreement called for the principal sum of $20,000 to be paid on or before April 30, 2003
plus interest of $4,000. In the event that the principal has not been repaid by April 30,
2003, additional interest is owed equal to $400 per month thereafter. In addition 20,000
shares of common stock will be delivered as additional consideration. The note is
unsecured. In addition to the issue of common stock, a payment of $10,000 was made on
February 3, 2004. The Company is in default under this agreement. The lender has not made
formal demand for payment to date. The balance on this note at March 31, 2004 was $10,000
plus accrued interest.

On March 14, 2003 the Company entered
into a loan agreement with an individual to borrow $10,000. The terms of the agreement
called for the principal sum of $10,000 to be paid on or before July 14, 2003 plus
interest of $2,000. The note is unsecured.

F-9

TERRA BLOCK INTERNATIONAL INC. AND SUBSIDIARY
(A Development Stage
Company) NOTES TO FINANCIAL
STATEMENTS

March 31, 2004

NOTE 3  NOTES
PAYABLE  CONTINUED

A
payment of $5,000 was made on February 3, 2004. The Company is in default under this
agreement. The lender has not made formal demand for payment to date. The balance due on
this note at March 31, 2004, was $5,000 plus accrued interest..

Terra Block International
Inc.s Notes Payable:

On October 6, 2003 the Company entered
into a loan agreement with an individual to borrow $20,000 at 10% interest due October 6,
2004. In addition 50,000 shares of common stock will be delivered as additional
consideration. The note is unsecured. The Company has issued the common stock required
under this agreement. The balance on this note at March 31, 2004 was $20,000 plus accrued
interest.

On October 6, 2003 the Company
entered into a loan agreement with an investment consortium to borrow $12,500 at 10%
interest due October 6, 2004. In addition 200,000 shares of common stock will be delivered
as additional consideration. The note is unsecured. The Company has issued the common
stock required under this agreement. The balance on this note at March 31, 2004 was
$12,500 plus accrued interest.

On October 6, 2003 the Company
entered into a loan agreement with an individual to borrow $12,500 at 10% interest due
October 6, 2004. The note is unsecured. The Company has issued the common stock required
under this agreement. The balance on this note at March 31, 2004 was $12,500 plus accrued
interest.

NOTE 4 
STOCKHOLDERS EQUITY

Preferred Stock:

At March 31, 2004 the Company had
10,000,000 shares authorized of convertible preferred stock with a par value 0f $0.001 per
share. Additional terms and conditions of the stock are to be set by the board of
directors of the Company at the time of issue. There were no shares outstanding at March
31, 2004.

Common Stock:

At March 31, 2004 the Company had
100,000,000 shares authorized common stock with a par value of $0.001 per share. There
were 28,065,018 shares outstanding at March 31, 2004.

F-10

TERRA BLOCK INTERNATIONAL INC. AND SUBSIDIARY
(A Development Stage
Company) NOTES TO FINANCIAL
STATEMENTS

March 31, 2004

NOTE 5  COMMITMENTS

The Company rents its present shared
office space on a month to month basis. The Company expects to continue on that basis in
2004. Rent expense for the first quarter of 2004 was $0. The other entity in the space
paid all rents during the quarter and requested no reimbursement from the Company.

NOTE 6  RELATED
PARTIES

The Company owed its officers who are
also shareholders $406,070 in accrued wages at March 31, 2004. There are no other amounts
due to or from these shareholder officers. The Company entered into employment agreements
with its three officers. The agreements are identical. The agreements are for three years,
call for annual wages of $120,000 each, with an annual inflation adjustment. The
agreements also provide for twelve paid holidays, seven paid personal days and fifteen
paid vacation days annually. In addition the Company is to provide $500,000 of group live
insurance for each officer, at no cost. As of March 31, 2004 the Company has not provided
the life insurance coverage.

NOTE 7  GOING
CONCERN

The Company has not generated
significant revenues or profits to date. This factor among others including the notes
payable defaults, may indicate the Company will be unable to continue as a going concern.
The Companys continuation as a going concern depends upon its ability to generate
sufficient cash flow to conduct its operations and its ability to obtain additional
sources of capital and financing. The accompanying consolidated financial statements do
not include any adjustments that might result from the outcome of this uncertainty.

F-11

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

The following discussion should be
read in conjunction with our unaudited interim financial statements and related notes
thereto included in this quarterly report and in our audited financial statements and
Managements Discussion and Analysis of Financial Condition or Plan of Operation
(MD&A) contained in our Form 10-KSB for the year ended December 31, 2003.
Certain statements in the following MD&A are forward looking statements. Words such as
expects, anticipates, estimates and similar
expressions are intended to identify forward looking statements. Such statements are
subject to risks and uncertainties that could cause actual results to differ materially
from those projected.

# GENERAL

Terra Block International, Inc., a
Nevada Corporation, (the Company or Terra Block) was formerly L.L.
Brown International, Inc. (L.L. Brown). L.L. Brown was originally incorporated
as Smart Industries, Inc. on February 19, 1997. On February 14, 2003, L.L. Brown entered
into a Share Exchange Agreement with Terra Block Consolidated, Inc.
(Consolidated or TBCI). The Agreement provides for 100% of the
shares of Consolidated to be acquired by L.L. Brown in exchange for shares of common stock
of L.L. Brown; for the establishment of a new Board of Directors consisting of
Consolidated directors; and a change of the name of the company to Terra Block
International, Inc., with total issued and outstanding shares of the Company immediately
after the closing of 10,000,018. The Companys former subsidiary, LLBA has been spun
off, leaving Terra Block Consolidated, Inc. as the sole operating subsidiary of the
Company after effecting the Agreement. The Company currently trades on the OTC Bulletin
Board under the symbol TBLK.

Terra Block International, Inc.
engages in the application of technologically advanced building products and technologies
through a licensing agreement between its subsidiary Terra Block Consolidated, Inc. and
Terra Block, Inc. (TBI). The Company has the exclusive right to make, have
made, use and sell TBI products anywhere in the world. The licensing agreement provides
Terra Block the rights to all patented technologies, trade secret materials, copyrights,
trademarks and all intellectual property. This technology and expertise is referred to as
the Terra Block System and has been used worldwide for 25 years.

The Terra Block System features a
machine that manufactures building blocks (12x10x3.5) using common soil
as the only raw material. This is accomplished by compacting the soil at up to 460,000
lbs. of hydraulic pressure to form a rock hard block.

The blocks are flat, parallel and
perpendicular to within five thousandths of an inch (.005). Each block is rock solid
and will not crumble or disintegrate. Traditionally, earth blocks are formed using straw
as glue and then sun baking for 28 days i.e. adobe technology. Using Terra Block
technology cuts the time to 15 seconds and no additives are necessary.

The blocks are quick to manufacture,
durable, low maintenance, require no additives, they are energy efficient and inexpensive
(average cost is $0.12/each) and walls constructed using the Terra Block System can be
built without mortar and the blocks can be dry stacked without sacrificing structural
integrity. The Terra Block System has been used all over the world (Russia, Africa, Far
East, Latin America, Saudi Arabia, South Africa, United States (among other locations) to
construct houses, schools, churches and commercial facilities.

Terra Block International is
comprised of three business segments:

3

# Housing Development and
Construction

The Company is working toward
developments both domestically and abroad to capitalize on its unique construction and
building system.

# TECSTOR

Terra Block Encapsulated Cell Storage
(TECSTOR) is a patented EPA approved above ground hazardous waste storage
facility. The unique properties of construction with the Terra Block System provide an
exceptional, cost effective facility for the storage and maintenance of low and mid-level
hazardous waste.

# Machines

Manufacture and sales of block making
machines. The Company is de-emphasizing this business segment in favor of Housing
Development and Construction and TECSTOR due to the anticipated higher margins and
increased scalability of these two business segments.

PATENTS

In June 2002, Terra Block
Consolidated, Inc. entered into an exclusive licensing agreement with TBI. As part of that
agreement, Terra Block Consolidated, Inc. was granted the exclusive right to make, have
made, use and sell the Terra Block Duplex and TECSTOR represented by patent numbers
4,569,649 and 4,875,805 respectively and the Terra 250  Compact earth block machine,
Sidewinder 500  Mid-size earth block machine, TECSTOR (poured concrete),
Manufactured grooves in earth blocks, Soil Dryer (Dehydrator), TECSTOR (Rammed earth
walls), TECSTOR (Earth in filled concrete walls) and Soil Mixer represented by invention
disclosure numbers 454,813,457,060, 456,531, 454,814, 456,529, 456,532, 454,812 and
456,530 respectively. The license is valid until terminated by The Company with 30 days
advance written notice to TBI or by TBI if The Company materially breaches the licensing
agreement. Under the agreement, The Company has the exclusive right to buy the licensed
patent rights for $10,000,000. The Companys goals are to utilize the unique
properties and cost effectiveness of Compressed Earth Block (CEB) construction
to profitably become:

| |  | The leading provider of high quality, structurally sound, low cost, environmental friendly
and durable, residential and commercial buildings in the world.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | A provider of a revolutionary, cost effective solution to the ever-growing problem of the
storage of hazardous waste worldwide.
| | - | -------------------------------------------------------------------------------------------------------------------------------

# RESULTS OF OPERATIONS

The Company has developed plans and
commenced some work in two of its three business segments:

| |  | Housing Development and Construction: The Company is working toward developments
both domestically and abroad to capitalize on its unique construction and building system.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | TECSTOR: The
Company is working to finalize a beta site for its patented above ground hazardous waste
storage facility.
| | - | -----------------------------------------------------------------------------------------------------------------------

| |  | Machines: The Company is de-emphasizing this business segment in favor of
Housing Development and Construction and TECSTOR due to the anticipated higher margins and
increased scalability of these two business segments.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# LIQUIDITY AND CAPITAL
RESOURCES

In Note # 7 to our financial
statements, our independent auditors have indicated that certain factors raise substantial
doubt about our ability to continue as a going concern.

Since the Company was acquired by
L.L. Brown International, Inc. in February of 2003, the Company has derived nominal
revenue and has suffered a loss from operations and has been dependent on existing
stockholders and new investors to provide the cash resources to sustain its operations.
During the three months ended March 31, 2004, the Company reported a net loss of $
159,996.

The Companys long-term
viability as a going concern is dependent on certain key factors, as follows:

| |  | The Companys ability to continue to successfully obtain adequate sources of outside
financing to support near term operations and to allow the Company to continue forward
with current strategic plans.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The
Companys ability to generate revenue from housing projects, TECSTOR and licensing
agreements.
| | - | --------------------------------------------------------------------------------------------------

4

| |  | The Companys ability to increase profitability and sustain a cash flow level that
will ensure support for continuing operations.
| | - | ---------------------------------------------------------------------------------------------------------------------------------

# 2004 OUTLOOK

The Company is continuing to expand
development in two of its three business segments:

| |  | Housing
Development and Construction:  The Company is working on developments both
domestically and internationally capitalizing on its unique construction and building
system.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | TECSTOR:  The
Company is working to finalize the beta site for its patented, above ground hazardous
waste storage facility.
| | - | ---------------------------------------------------------------------------------------------------------------------------

The Company anticipates continuing
development of projects currently underway in Guatemala and plans to expand into
additional geographical markets.. In addition, the Company has plans to build up to five
TECSTOR facilities in Guatemala. The Company also plans on continuing to sell licenses for
different geographic areas. The origination of these projects is contingent upon securing
financing.

Our plan of operation calls for
additional capital to facilitate growth and support long-term development and marketing
programs. It is likely that we will seek additional financing through subsequent future
public or private sales of our securities, including equity securities, borrowing, or
other sources of third party financing. Further, the sale of equity securities would
substantially dilute our existing stockholders interests, and borrowings from third
parties could result in our assets being pledged as collateral. Loan terms, which would
increase our debt service requirements, could restrict our operations. There is no
assurance that we can obtain financing on favorable terms. Any such additional financing
may result in significant dilution to existing stockholders. We may also seek funding for
the development and marketing of our services through strategic partnerships and other
arrangements with investment partners. There can be no assurance, however, that such
collaborative arrangements or additional funds will be available when needed, or on terms
acceptable to us, if at all. If adequate funds are not available, we may be required to
curtail one or more of our future programs.

# FORWARD-LOOKING
INFORMATION

The statements contained herein and
other information contained in this report may be based, in part, on managements
estimates, projections, plans and judgments. These forward-looking statements are subject
to certain risks and uncertainties that could cause actual results to differ materially
from historical results or those anticipated. In this report, the words
anticipates, believes, expects, intends,
future, plans, targets and similar expressions
identify forward-looking statements. Readers are cautioned not to place undue reliance on
the forward-looking statements contained herein. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events or circumstances that
may arise after the date hereof. Additionally, these statements are based on certain
assumptions that may prove to be erroneous and are subject to certain risks including, but
not limited to, the Companys dependence on limited cash resources, its dependence on
certain key personnel within the Company, and its ability to raise additional capital. The
Companys ability to generate long-term value for the common stockholder is dependent
upon the utilizing the Terra Block process. There are many companies participating in the
building industry, many with resources greater than the Company. Greater competition for
profitable operations can increase prices and make it more difficult to develop project at
reasonable multiples of cash flow. The Company believes that it will be able to compete in
this environment and will be able to find attractive investments; however, it is not
possible to predict competition or the effect this will have on the Companys
operations. The Companys operations are also significantly affected by factors,
which are outside the control of the Company, including the environmental and governmental
regulations. Accordingly, actual results may differ, possibly materially, from the
predictions contained herein.

# Item 3. Evaluation of
Disclosure Controls and Procedures

Gregory A. Pitner, President, has
concluded that our disclosure controls and procedures are appropriate and effective. He
has evaluated these controls and procedures as of a date within 90 days of the filing date
of this report on Form 10-QSB. There were no significant changes in our internal controls
or in other factors that could significantly affect these controls subsequent to the date
of their evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

5

James E. Hines, Chief Financial
Officer, has concluded that our disclosure controls and procedures are appropriate and
effective. He has evaluated these controls and procedures as of a date within 90 days of
the filing date of this report on Form 10-QSB. There were no significant changes in our
internal controls or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.

# PART II

Pursuant to the Instructions on Part
II of the Form 10-QSB, Items 1 , 3 and 5 are omitted.

# Item 2. Changes in
Securities

None

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

(A) Exhibits

Exhibit
31.1  Certification of Chief Executive Officer of Terra Block International, Inc.
required by Rule 13a  14(1) or Rule 15d  14(a) of the Securities Exchange Act
of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit
31.2  Certification of Chief Financial Officer of Terra Block International, Inc.
required by Rule 13a  14(1) or Rule 15d  14(a) of the Securities Exchange Act
of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit
32.1  Certification of Chief Executive Officer of Terra Block International, Inc.
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18 U.S.C.
63.

Exhibit
32.2  Certification of Chief Financial Officer of Terra Block International, Inc.
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18 U.S.C.
63.

(B)    
          Reports on Form 8-K

None

# 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.

# TERRA BLOCK
INTERNATIONAL, INC.

|Date: May 13, 2004 | By: /s/ Gregory A. Pitner
Gregory A. Pitner, President,
CEO and Chairman
|------------------ | ------------------------------------------------------------------------

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