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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-QSB

|           |  |                                                                                  
|---------- |  | ---------------------------------------------------------------------------------
|(Mark One)
|           |  |                                                                                  
|[X]        |  | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|           |  |                                                                                  
|           |  | For the quarterly period ended December 31, 2003                                 
|           |  |                                                                                  
|[  ]       |  | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT                  
|           |  |                                                                                  
|           |  | For the transition period from to                                                

Commission file number: 333-105521

Sardy House, LLC

(Exact name of small business issuer as specified in its charter)


|                                                                        |  |                                                
|----------------------------------------------------------------------- |  | -----------------------------------------------
|Colorado
(State or other jurisdiction of
incorporation or organization) |  | 75-3099118
(I.R.S. Employer
Identification No.)

128 East Main Street
Aspen, Colorado 81611
(Address of principal executive offices)

(970) 925-6246
(Issuers telephone number)

Not applicable
(Former name, former address and former fiscal year, if changed since last report)

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. Yes [X]  
No [  ]

The issuer had 25 units of its assessable limited liability company
membership interests issued and outstanding as of February 13, 2004, the latest
practicable date before the filing of this report.

Transitional Small Business Disclosure Format (Check one): Yes [  ]  No
[X]





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TABLE OF CONTENTS



|                                      |                                          |                               |  |  |  |  |  | 
|------------------------------------- | ---------------------------------------- | ----------------------------- |  |  |  |  |  | 
|PART I  FINANCIAL INFORMATION       
|                                      | Item 1. Financial Statements            
|                                      |                                          | BALANCE SHEET                
|                                      |                                          | STATEMENTS OF OPERATIONS     
|                                      |                                          | STATEMENTS OF CASH FLOWS     
|                                      |                                          | NOTES TO FINANCIAL STATEMENTS
|                                      | Item 2. Plan of Operation               
|                                      | Item 3. Controls and Procedures         
|PART II  OTHER INFORMATION          
|                                      | Item 2. Changes in Securities           
|                                      | Item 6. Exhibits and Reports on Form 8-K
|SIGNATURES                           
|EXHIBIT INDEX                        
|Certification Pursuant to Section 302
|Certification Pursuant to Section 302
|Certification Pursuant to Section 906



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##### Table of Contents



SARDY HOUSE, LLC
QUARTERLY REPORT ON FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2003

TABLE OF CONTENTS

|                                         |                                                                                                                                     |  |      |   | 
|---------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------- |  | ---- | - | 
|                                         |                                                                                                                                     |  | Page
|                                         |                                                                                                                                     |  |     
|PART I - FINANCIAL INFORMATION           |                                                                                                                                     |  |      |  
|Item 1. Financial Statements             |                                                                                                                                     |  |      |  
|                                         | Balance Sheet as of December 31, 2003 (unaudited) and March 31, 2003                                                                |  |      | 1 | 
|                                         | Statements of Operations for the Three Months and Nine Months Ended
December 31, 2003 (unaudited) and December 31, 2002 (unaudited) |  |      | 2 | 
|                                         | Statements of Cash Flows for the Nine Months Ended December 31,
2003 (unaudited) and December 31, 2002 (unaudited)                  |  |      | 3 | 
|                                         | Notes to Financial Statements                                                                                                       |  |      | 4 | 
|Item 2. Plan of Operation                |                                                                                                                                     |  | 9    |  
|Item 3. Controls and Procedures          |                                                                                                                                     |  | 12   |  
|PART II - OTHER INFORMATION              |                                                                                                                                     |  |      |  
|Item 2. Changes in Securities            |                                                                                                                                     |  | 13   |  
|Item 6. Exhibits and Reports on Form 8-K |                                                                                                                                     |  | 13   |  
|SIGNATURES                               |                                                                                                                                     |  | 15   |  





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PART I  FINANCIAL INFORMATION




Item 1. Financial Statements.




SARDY HOUSE, LLC
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET

|                                                              |  |                   |            |                |  |   |            |  
|------------------------------------------------------------- |  | ----------------- | ---------- | -------------- |  | - | ---------- | -
|                                                              |  | December 31, 2003 |            | March 31, 2003
|                                                              |  | (Unaudited)       |            | (See Note 1)  
|                                                              |  |                   |            |               
|ASSETS                                                        |  |                   |            |                |  |   |            |  
|CURRENT ASSETS                                                |  |                   |            |                |  |   |            |  
|Cash                                                          |  | $                 | 29,123     |                |  | $ |           |  
|Prepaid Expenses                                              |  |                   | 2,185      |                |  |   |           |  
|Due From Related Party                                        |  |                   | 159,787    |                |  |   | 4,000      |  
|                                                              |  |                   |            |                |  |   |            |  
|TOTAL CURRENT ASSETS                                          |  |                   | 191,095    |                |  |   | 4,000      |  
|                                                              |  |                   |            |                |  |   |            |  
|PROPERTY & EQUIPMENT                                          |  |                   |            |                |  |   |            |  
|Land                                                          |  |                   | 405,309    |                |  |   | 405,309    |  
|Buildings and Improvements                                    |  |                   | 3,718,897  |                |  |   | 2,416,531  |  
|Furniture and Fixtures                                        |  |                   | 1,046,775  |                |  |   | 288,405    |  
|Construction-in-Progress                                      |  |                   |           |                |  |   | 51,767     |  
|                                                              |  |                   |            |                |  |   |            |  
|                                                              |  |                   | 5,170,981  |                |  |   | 3,162,012  |  
|Less Accumulated Depreciation                                 |  |                   | (1,380,519 | )              |  |   | (1,358,628 | )
|                                                              |  |                   |            |                |  |   |            |  
|NET PROPERTY & EQUIPMENT                                      |  |                   | 3,790,462  |                |  |   | 1,803,384  |  
|                                                              |  |                   |            |                |  |   |            |  
|OTHER ASSETS                                                  |  |                   |            |                |  |   |            |  
|Loan Fees net of accumulated amortization of $14,724 and $158 |  |                   | 46,739     |                |  |   | 55,549     |  
|                                                              |  |                   |            |                |  |   |            |  
|TOTAL ASSETS                                                  |  | $                 | 4,028,296  |                |  | $ | 1,862,933  |  
|                                                              |  |                   |            |                |  |   |            |  
|LIABILITIES AND MEMBERS DEFICIT                              |  |                   |            |                |  |   |            |  
|CURRENT LIABILITIES                                           |  |                   |            |                |  |   |            |  
|Accounts Payable                                              |  | $                 | 63,712     |                |  | $ | 19,617     |  
|Advance Deposit                                               |  |                   | 21,667     |                |  |   |           |  
|Due to Related Party                                          |  |                   | 15,880     |                |  |   | 60,422     |  
|Accrued Property Taxes                                        |  |                   | 37,257     |                |  |   |           |  
|Accrued Interest                                              |  |                   |           |                |  |   | 1,220      |  
|Other Accrued Liabilities                                     |  |                   | 4,886      |                |  |   | 402        |  
|                                                              |  |                   |            |                |  |   |            |  
|TOTAL CURRENT LIABILITIES                                     |  |                   | 143,402    |                |  |   | 81,661     |  
|                                                              |  |                   |            |                |  |   |            |  
|LONG TERM LIABILITIES                                         |  |                   |            |                |  |   |            |  
|Long Term Debt                                                |  |                   | 4,350,000  |                |  |   | 2,091,795  |  
|                                                              |  |                   |            |                |  |   |            |  
|TOTAL LIABILITIES                                             |  |                   | 4,493,402  |                |  |   | 2,173,456  |  
|MEMBERS (DEFICIT)                                            |  |                   | (465,106   | )              |  |   | (310,523   | )
|                                                              |  |                   |            |                |  |   |            |  
|TOTAL LIABILITIES AND MEMBERS (DEFICIT)                      |  | $                 | 4,028,296  |                |  | $ | 1,862,933  |  
|                                                              |  |                   |            |                |  |   |            |  

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

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SARDY HOUSE, LLC
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(UNAUDITED)

|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |          |  
|------------------------------------------------------------- | ----------------------------------------- | - | ------------ | ------- | ------------ | - | ------------ | ------- | ------------ | - | -------- | ------- | - | - | -------- | -------- | -
|                                                              |                                           |   | Quarter      |         | Quarter      |   |              |         |              |   |          |         |  
|                                                              |                                           |   | Ended        |         | Ended        |   | Year-to-Date |         | Year-to-Date
|                                                              |                                           |   | December 31, |         | December 31, |   | December 31, |         | December 31,
|                                                              |                                           |   | 2003         |         | 2002         |   | 2003         |         | 2002        
|                                                              |                                           |   |              |         |              |   |              |         |             
|OPERATING REVENUES                                            |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|Room and Other Guest Charges                                  |                                           | $ | 31,296       |         |              | $ | 65,857       |         |              | $ | 35,550   |         |   | $ | 189,559  |         
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|OPERATING EXPENSES                                            |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|Salaries, Payroll Taxes and Benefits                          |                                           |   | 15,930       |         |              |   | 59,697       |         |              |   | 23,566   |         |   |   | 186,477  |         
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|Room Expenses                                                
|                                                              | Commissions                               |   |              | 606     |              |   |              | 4,961   |              |   |          | 733     |   |   |          | 9,799    |  
|                                                              | Laundry and Linen                         |   |              | 541     |              |   |              | 1,091   |              |   |          | 711     |   |   |          | 3,630    |  
|                                                              | Guest Services                            |   |              | 6,063   |              |   |              | 6,727   |              |   |          | 6,543   |   |   |          | 19,061   |  
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|                                                              | Total Room Expenses                       |   |              | 7,210   |              |   |              | 12,779  |              |   |          | 7,987   |   |   |          | 32,490   |  
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|Property Operating Costs                                     
|                                                              | Repairs and Maintenance                   |   |              | 1,737   |              |   |              | 3,489   |              |   |          | 2,108   |   |   |          | 22,784   |  
|                                                              | Utilities                                 |   |              | 2,933   |              |   |              | 10,159  |              |   |          | 6,624   |   |   |          | 27,424   |  
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|                                                              | Total Property Operating Costs            |   |              | 4,670   |              |   |              | 13,648  |              |   |          | 8,732   |   |   |          | 50,208   |  
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|General and Administrative Expenses
Advertising and Marketing |                                           |   | 19,762       |         |              |   | 8,346        |         |              |   | 22,019   |         |   |   | 17,122   |         
|                                                              | Credit Card Fees                          |   |              | 964     |              |   |              | 1,720   |              |   |          | 1,143   |   |   |          | 5,338    |  
|                                                              | Depreciation Expense                      |   |              | 20,775  |              |   |              | 20,394  |              |   |          | 21,891  |   |   |          | 63,363   |  
|                                                              | Insurance Expense                         |   |              | 1,584   |              |   |              | 2,382   |              |   |          | 1,781   |   |   |          | 7,980    |  
|                                                              | Professional Fees                         |   |              | 3,000   |              |   |              |        |              |   |          | 3,254   |   |   |          | 7,770    |  
|                                                              | Property Taxes                            |   |              | 3,432   |              |   |              | 8,878   |              |   |          | 4,040   |   |   |          | 27,328   |  
|                                                              | Telephone                                 |   |              | 819     |              |   |              | 2,748   |              |   |          | 1,260   |   |   |          | 8,161    |  
|                                                              | Other                                     |   |              | 11,102  |              |   |              | 2,939   |              |   |          | 19,003  |   |   |          | 7,301    |  
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|                                                              | Total General and Administrative Expenses |   |              | 61,438  |              |   |              | 47,407  |              |   |          | 74,391  |   |   |          | 144,363  |  
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|NET (LOSS) FROM OPERATIONS                                    |                                           |   | (57,952      | )       |              |   | (67,674      | )       |              |   | (79,126  | )       |   |   | (223,979 | )       
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|Other Income (Expense)                                       
|                                                              | Other Income (Expense)                    |   |              |        |              |   |              | 1,600   |              |   |          | (364    | ) |   |          | 1,529    |  
|                                                              | Amortization (Expense)                    |   |              | (1,707  | )            |   |              | (639    | )            |   |          | (2,016  | ) |   |          | (1,917   | )
|                                                              | Interest (Expense)                        |   |              | (26,151 | )            |   |              | (44,127 | )            |   |          | (28,613 | ) |   |          | (124,391 | )
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|                                                              | Total Other Income (Expense)              |   |              | (27,858 | )            |   |              | (43,166 | )            |   |          | (30,993 | ) |   |          | (124,779 | )
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|NET (LOSS) FROM CONTINUING OPERATIONS                         |                                           |   | (85,810      | )       |              |   | (110,840     | )       |              |   | (110,119 | )       |   |   | (348,758 | )       
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|NET INCOME (LOSS) FROM
DISCONTINUED OPERATIONS                |                                           |   |             |         |              |   | 62,710       |         |              |   | (44,464  | )       |   |   | 206,633  |         
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|NET INCOME (LOSS)                                             |                                           | $ | (85,810      | )       |              | $ | (48,130      | )       |              | $ | (154,583 | )       |   | $ | (142,125 | )       
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|MEMBERSHIP UNITS OUTSTANDING                                  |                                           |   | 25           |         |              |   | 25           |         |              |   | 25       |         |   |   | 25       |         
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|NET INCOME (LOSS) PER UNIT                                    |                                           | $ | (3,432       | )       |              | $ | (1,925       | )       |              | $ | (6,183   | )       |   | $ | (5,685   | )       
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|NET INCOME (LOSS) PER UNIT
FROM DISCONTINUED OPERATIONS       |                                           | $ |             |         |              | $ | 2,508        |         |              | $ | (1,779   | )       |   | $ | 8,265    |         
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         
|NET (LOSS) PER UNIT FROM CONTINUING OPERATIONS                |                                           | $ | (3,432       | )       |              | $ | (4,434       | )       |              | $ | (4,405   | )       |   | $ | (13,950  | )       
|                                                              |                                           |   |              |         |              |   |              |         |              |   |          |         |   |   |          |         

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

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SARDY HOUSE, LLC
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(UNAUDITED)

|                                                                              |                           |   |              |          |              |   |          |         |  
|----------------------------------------------------------------------------- | ------------------------- | - | ------------ | -------- | ------------ | - | -------- | ------- | -
|                                                                              |                           |   | Year-to-Date |          | Year-to-Date
|                                                                              |                           |   | December 31, |          | December 31,
|                                                                              |                           |   | 2003         |          | 2002        
|                                                                              |                           |   |              |          |             
|Net Income (Loss)                                                             |                           | $ | (154,583     | )        |              | $ | (142,125 | )      
|Adjustments to Reconcile Net (Loss) to Net Cash
Used in Operating Activities: |                           |   |              |          |              |   |          |        
|Amortization                                                                  |                           |   | 2,016        |          |              |   | 1,917    |        
|Depreciation                                                                  |                           |   | 21,891       |          |              |   | 63,363   |        
|Decrease (Increase) in:                                                       |                           |   |              |          |              |   |          |        
|                                                                              | A/R                       |   |              |         |              |   |          | (16,763 | )
|                                                                              | Due From Related Party    |   |              | (155,787 | )            |   |          |        |  
|                                                                              | Prepaid Expenses          |   |              | (2,185   | )            |   |          | 6,578   |  
|                                                                              | Other Current Assets      |   |              |         |              |   |          | (8,307  | )
|                                                                              | Inventory F&B             |   |              |         |              |   |          | 7,560   |  
|                                                                              | Loan Fees                 |   |              | (5,756   | )            |   |          |        |  
|Increase (Decrease) in:                                                       |                           |   |              |          |              |   |          |        
|                                                                              | Due To Related Party      |   |              | (44,542  | )            |   |          |        |  
|                                                                              | Accounts Payable          |   |              | 44,095   |              |   |          | 6,846   |  
|                                                                              | Advance Deposits          |   |              | 21,667   |              |   |          | 21,932  |  
|                                                                              | Accrued Property Taxes    |   |              | 37,257   |              |   |          |        |  
|                                                                              | Accrued Interest          |   |              | (1,220   | )            |   |          | (3      | )
|                                                                              | Other Accrued Liabilities |   |              | 4,484    |              |   |          | 8,125   |  
|Net Cash (Used By) Operating Activities                                       |                           |   | (232,663     | )        |              |   | (50,877  | )      
|                                                                              |                           |   |              |          |              |   |          |        
|Cash Flows From Investing Activities
Purchase of Property                     |                           |   | (1,996,419   | )        |              |   |         |        
|                                                                              |                           |   |              |          |              |   |          |        
|Net Cash (Used By) Investing Activities                                       |                           |   | (1,996,419   | )        |              |   |         |        
|                                                                              |                           |   |              |          |              |   |          |        
|Cash Flows From Financing Activities
Proceeds of Long-Term Debt               |                           |   | 2,258,205    |          |              |   |         |        
|Principal Payments                                                            |                           |   |             |          |              |   | (16,675  | )      
|Cash Contributions  Member                                                   |                           |   |             |          |              |   | (812     | )      
|                                                                              |                           |   |              |          |              |   |          |        
|Net Cash Provided By/(Used By) Financing Activities                           |                           |   | 2,258,205    |          |              |   | (17,487  | )      
|                                                                              |                           |   |              |          |              |   |          |        
|Cash and Cash Equivalents:                                                    |                           |   |              |          |              |   |          |        
|Beginning of Period                                                           |                           |   |             |          |              |   | 126,097  |        
|                                                                              |                           |   |              |          |              |   |          |        
|End of Period                                                                 |                           | $ | 29,123       |          |              | $ | 57,733   |        
|                                                                              |                           |   |              |          |              |   |          |        
|Supplemental Disclosure - Interest Paid                                       |                           | $ | 176,956      |          |              | $ | 124,391  |        

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

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SARDY HOUSE, LLC
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)

1. SUMMARY OF ACCOUNTING POLICIES

This summary of significant accounting policies of Sardy House, LLC
(Company) is presented to assist in understanding the Companys financial
statements. The financial statements and notes are representations of the
Companys management who is responsible for their integrity and objectivity.
These accounting policies conform to generally accepted accounting principles
in the United States of America and have been consistently applied in the
preparation of the financial statements. The company has selected March 31 as
its year end.

UNAUDITED FINANCIAL STATEMENTS

The balance sheet as of December 31, 2003, the statements of operations
and the statements of cash flows for the three month and nine month periods
ended December 31, 2003 and 2002, have been prepared by Sardy House, LLC
(Company) without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures, normally included in the financial statements prepared in
accordance with accounting principles generally accepted in the United States
of America, have been condensed or omitted as allowed by such rules and
regulations, and the Company believes that the disclosures are adequate to make
the information presented not misleading. In the opinion of management, all
adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and changes in
financial position at December 31, 2003 and for all periods presented, have
been made.

It is suggested that these statements be read in conjunction with the
March 31, 2003 audited financial statements and the accompanying notes included
in the Companys Amendment No. 3 to Registration Statement on Form SB-2
(Registration No. 333-105521), filed with the Securities and Exchange
Commission on October 29, 2003.

DESCRIPTION OF BUSINESS

Sardy House, LLC is a Colorado limited liability company organized March
21, 2003 under the Colorado Limited Liability Company Act. The Limited
Liability Company was formed to acquire and operate the Sardy Main House
Residence, the Carriage House Residence and the Carriage House Inn formerly
operated as the Sardy House Hotel. The Carriage House Inn will continue to
operate as a hotel. Therefore the operating results from the Carriage House
Inn have been reported as a continuing operation. The Sardy Main House
Residence and the Carriage House Residence will be available for personal use
by the Limited Liability Company members. Therefore the operating results from
the Sardy Main House Residence and the Carriage House Residence have been
reported as discontinued operations (See Note 8).

The Company owns and operates the Sardy Main House Residence, the Carriage
House Residence and the Carriage House Inn located in downtown Aspen, Colorado.
The Company owns the 9,000 square foot Sardy Main House Residence and the
1,050 square foot Carriage House Residence as properties available for personal
use by the Limited Liability Company members. The Company owns and operates

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the 4,600 square foot eight room Carriage House Inn as a hotel. The
Company commenced operations December 1, 2003.

USE OF ESTIMATES IN PREPARATION OF THE FINANCIAL STATEMENTS

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 revenue and expenses during the
reporting period. Actual results could differ from those estimates.

PROPERTY AND EQUIPMENT

Property and equipment is stated at predecessor cost. Depreciation is
computed using the straight-line method over the following useful lives:

|                                             |  |                |  | 
|-------------------------------------------- |  | -------------- |  | 
|Buildings, Improvements
And Acquisition Fees |  | 15 to 40 years
|Furniture, Fixtures,
And Equipment           |  | 5 to 7 years  

Maintenance and repairs of property and equipment are charged to
operations, and major improvements are capitalized. Upon retirement, sale, or
other disposition of property and equipment, the costs and accumulated
depreciation are eliminated from the accounts, and any resulting gain or loss
is included in operations.

INCOME TAXES

No provision for federal and state income taxes has been made in the
financial statement since the Companys profits and losses are reported on the
individual members tax return. The Company is a one-member Limited Liability
Company. The revenues and expenses of the Company are taxed on the members
tax return. Upon entrance of the second member, the Company will be taxed as a
partnership for federal and state income tax purposes. For income tax purposes
the income tax basis of the property and equipment is $883,382 less than the
carrying value in the financial statements.

IMPAIRMENT OF LONG-LIVED ASSETS

The Company identifies and accounts for the impairment of long-lived
assets in accordance with SFAS 144.

CONSTRUCTION-IN-PROGRESS

Construction period interest, real estate taxes and insurance costs were
capitalized in construction-in-progress. The Company placed the constructed
assets in service December 1, 2003.

LOAN FEES

Loan fees represents a loan origination fee and certain other loan costs
incurred when the Company refinanced its loan on the Companys property and
equipment for the renovation construction of its building. The loan fees are
being amortized over the life of the loan.

5



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INTERIM FINANCIAL STATEMENTS

The balance sheet as of December 31 2003 and the statements of operations
for the three month and nine month periods ended December 31, 2003 and 2002 and
statements of cash flows for the nine month periods ended December 31, 2003 and
2002 have been prepared by the Company without audit. In the opinion of
management, all adjustments (which include only normal recurring adjustments)
necessary to fairly present the financial position, results of operations, and
cash flows for all periods presented have been made.

2. MEMBER UNITS ISSUED

On March 28, 2003 Sardy House, LLC issued 25 membership units to the
initial member, North and South Aspen, LLC, in exchange for the Sardy Main
House Residence, the Carriage House Residence and the Carriage House Inn
formerly operated as the Sardy House Hotel (Sardy House Property). Sardy
House, LLC is a wholly owned subsidiary of North and South Aspen, LLC. The
contributed property is recorded at the contributing members original cost,
net of accumulated depreciation and has been accounted for as a
transfer/reorganization since there was no change in control of the real estate
property.

3. RELATED PARTY TRANSACTIONS

The Company is a wholly owned subsidiary of North and South Aspen, LLC.

North and South Aspen, LLC rented the Companys property and equipment
from March 28, 2003 through March 31, 2003 for $1,000 per day. The Company
accrued $4,000 in rent in the period ending March 31, 2003. The Company has
receivables of $4,000 as of March 31, 2003 for rents receivable from North and
South Aspen, LLC.

North and South Aspen, LLC has agreed to pay certain marketing and
professional expenses related to the registration and sale of the Sardy House,
LLC units. North and South Aspen, LLC owed Sardy House, LLC $159,787 as of
December 31, 2003 for reimbursable marketing and professional expenses paid by
Sardy House, LLC for the benefit of North and South Aspen, LLC. North and
South Aspen, LLC intends to repay the advances from the proceeds of the sales
of the Sardy House, LLC units.

North and South Aspen, LLC paid certain organizational and construction
fees for Sardy House, LLC. Sardy House, LLC owed North and South Aspen, LLC
$36,422 as of March 31, 2003 for reimbursable expenses paid by North and South
Aspen, LLC for the benefit of Sardy House, LLC. North and South Aspen, LLC
requires expense reimbursements for construction and organizational expenses
directly connected to the renovation of the Sardy House property and
organizational costs directly connected with the organization of Sardy House,
LLC. Certain reimbursable costs are based on managements estimates of costs
allocable to Sardy House, LLC.

Block 66, LLC, a company wholly owned by the controlling members of North
and South Aspen, LLC, is the manager of Sardy House, LLC under the original
Sardy House, LLC operating agreement. Block 66, LLC manages the Sardy House
Property for an indefinite term until the Manager resigns or is removed and
until a successor has been elected or qualified under the rules set forth in
the Companys operating agreement. The management agreement shall
automatically terminate upon resignation or removal of the manager.

Block 66, LLC receives a basic business management fee of $1,000 monthly
by agreement with Sardy House, LLC. For the period ended December 31, 2003 the
Company incurred $3,000 of business management fees.

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Block 66, LLC receives additional basic property management fees of $1,667
monthly for management of the Residences and $2,083 monthly for management of
the Carriage House Inn. Block 66, LLC also receives a fee of 10% of the Room
and Other Guest Charges of the Carriage House Inn and incentive fee of an
additional 10% of any Room and Other Guest Charges above those projected in the
annual budget. Block 66, LLC is the exclusive rental agent for rental of the
Residences when owner-members of the Company choose to have their Exclusive
Weeks in the Residences marketed for rental. 60% of any gross rental revenue of
the Residences shall be paid to the owner-members and the remaining 40%, less
taxes and incidentals, shall be paid to Block 66, LLC. Block 66 will pay all
housekeeping fees and commissions associated with the rental, including a 10%
commission payable to the owner/member when the owner/member refers the rental.
For the period ended December 31, 2003 the Company incurred $6,880 of property
management fees.

During interior renovations construction of the Sardy House property,
Block 66, LLC acted as the construction manager and charged the Company $75 per
hour for construction planning and management services. The Company paid
$142,200 and $24,000 for the nine months ended December 31, 2003 and the year
ended March 31, 2003, respectively, to Block 66, LLC for construction planning
and construction management services. The Company also paid Block 66 $3,082
for reimbursable expenses for the nine months ended December 31, 2003.

4. ADVERTISING

The Company expenses advertising production costs as they are incurred and
advertising communication costs the first time the advertising takes place.

5. LONG-TERM DEBT

Note Payable WestStar Bank, collateralized by the Companys property and
equipment, 14 monthly consecutive interest payments, beginning August 30, 2003
with interest calculated on the unpaid principal balances at a floating
interest rate based on the WestStar Bank Base (currently 5.00%). Commencing
October 30, 2004, 18 monthly fixed principle payments of $8,702 plus accrued
interest. One interest and principal payment based on the current interest
rates of $4,218,641 due on April 30, 2006. The minimum and maximum interest
rate allowed under this loan is 7% and 21%, respectively. The loan is a
construction loan, the proceeds of which will be used to finance the
construction of the property as well as furnishings for the renovated property.
The maximum principal loan amount under this agreement is $4,350,000. The
Note Payable balance is $4,350,000 and $2,091,795 as of December 31, 2003 and
March 31, 2003 respectively and it matures on April 30, 2006. The initial
member, North and South Aspen, LLC will be required to list the Sardy House
property and equipment for sale as a single-family residence or repay the loan
in full if the initial member is unable to sell a sufficient amount of the
membership units by March 2005.

6. OPERATING AGREEMENT

Membership units are subject to specific provisions of an operating
agreement which provides the rules and regulations regarding ownership of the
units and use of the property, including required provisions for payment of
operating costs of the entity and the property. Failure to follow the
provisions of the operating agreement could result in significant penalties,
including potential required forfeiture of rights of use of the property and
potential required disposition of the membership unit.

7



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7. COMMITMENTS

The Company intends to lease two Land Rovers with a fair market value of
$35,000 each and anticipated annual lease obligations of $19,600 beginning
January 1, 2004.

8. DISCONTINUED OPERATIONS

On April 7, 2003 the Company discontinued hotel operations in the Sardy
Main House Residence and in the Carriage House Residence. Accordingly, the
operations of the Sardy Main House Residence and the Carriage House Residence
have been reported separately as discontinued operations in the accompanying
financial statements. The Carriage House Inn will continue to operate as a
hotel and has been accounted for as a continuing operation in the accompanying
financial statements.

8



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Item 2. Plan of Operation.

Cautionary Note About Forward-Looking Statements

This report contains forward-looking statements within the meaning of
securities laws. These forward-looking statements are subject to a number of
risks and uncertainties, many of which are beyond our control. All statements
other than statements of historical facts included in this report, including
the statements about our future operations, financial position and plans and
objectives of management are forward-looking statements. When used in this
report, the words will, believe, anticipate, intend, estimate,
expect, project and similar expressions are intended to identify
forward-looking statements, although not all forward-looking statements contain
such identifying words. Although we believe that our plans, intentions,
expectations and projections reflected in or suggested by the forward-looking
statements we make in this report are reasonable, such plans, intentions,
expectations or projections may not be achieved since they are subject to risks
which may cause our actual results to differ materially from results expressed
or implied by the forward-looking statements. These risks include the matters
discussed in the Risk Factors section of our prospectus dated November 10,
2003 filed with the SEC. All forward-looking statements speak only as of the
date on which they were made. Although we may from time to time voluntarily
update or revise publicly our forward-looking statements, whether as a result
of new information, future events or otherwise, we disclaim any commitment to
do so except as required by securities laws.

Overview

We are a development stage company that was formed in February 2003. In
March 2003 we acquired the Sardy House hotel property in Aspen, Colorado from
our affiliate North and South Aspen, L.L.C. in exchange for the issuance to
North and South Aspen, L.L.C. of 25 of our limited liability company membership
interests. The Sardy House is a Victorian mansion that was built in 1892, and
there is also a separate Carriage House building on the property that was built
in 1985.

From 1985 to April 2003 the Sardy House was operated as a 20-room hotel
with a restaurant. Those operations were discontinued in April 2003 when the
Sardy House was closed for interior renovations to the buildings to convert
them for our planned operation of the Sardy House property as two private
residences for exclusive use by up to 25 members and a semi-private Carriage
House Inn, which will continue to operate as an 8-room hotel. The renovations
were completed in November 2003 and a Certificate of Occupancy was issued on
November 20, 2003. The Carriage House Inn resumed operations as a hotel on
December 1, 2003.

We accounted for the contribution of the Sardy House property from North
and South Aspen, L.L.C. as a transfer/reorganization among entities under
common control, and therefore our financial statements in this report include
the historical operations of our predecessor, the Sardy House hotel. The
historical operations of the Sardy House hotel, including the operations of the
portion of the Carriage House which will not continue to operate as a hotel,
are shown separately in the financial statements as discontinued operations as
a result of the discontinuation of those hotel operations in April 2003.

Plan of Operation

The 25 membership interests issued to North and South Aspen, L.L.C. are
being offered for sale under a registration statement that was declared
effective by the SEC on November 10, 2003, and a purchaser of a membership
interest will have exclusive rights to occupy and use:



| |  |  | the 9,000 square foot main Sardy House residence
for two weeks each year, and
| | - |  | -----------------------------------------------------------------------------

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| |  |  | the 1,000 square foot Carriage House residence for two weeks each
year.
| | - |  | -----------------------------------------------------------------------

In addition, members will be entitled to booking of rooms at the Carriage House
Inn on a discounted basis. There will be no restaurant operations.

The offering of membership interests is being conducted on a best
efforts, all or none basis as to the minimum offering necessary to allow for
complete repayment of the construction loan debt discussed below, and on a
best efforts basis as to additional membership interests up to the maximum
offering of 25 membership interests. The current offering price is $750,000
per membership interest, for an aggregate offering price for all 25 membership
interests of $18,750,000. The offering price may be changed at any time.

The costs and expenses of the planned operation are expected to include
staff and housekeeping payroll, laundry and linen, repairs and maintenance,
utilities, management fees, insurance and property taxes. These expenses will
be partially offset by revenues from the rental of rooms at the Carriage House
Inn, and members will be required under the provisions of our operating
agreement to contribute to us operating contributions to make up any projected
or actual operating deficit and to provide reserves for repairs or
replacements. The operating contributions will be based on the operations
budget annually prepared by the manager and delivered to the members.
Operating contributions may also be requested in a month where our revenues or
receipts are insufficient to cover operating expenses, and members may also be
required to contribute to us additional capital contributions to pay for
expenses of any construction, reconstruction, structural repair or replacement
of our property, as approved by the members by a two-thirds vote of the
membership interests.

We have appointed our affiliate Block 66, LLC as our exclusive manager and
agent to supervise, lease and operate the residences and the Carriage House Inn
for a management agreement term ending June 30, 2006. Our manager has prepared
an operating budget for 2004, which contemplates a required annual contribution
from each member of $19,500 per membership interest. We expect to assess these
contributions on a quarterly basis. The draft operating budget for 2005 and
future years will, as provided in our operating agreement, be reviewed and
approved by an advisory committee appointed by the members and then revised by
the manager after consideration of the advisory committees recommendations.

Before the Sardy House hotel operations were discontinued in April 2003,
North and South Aspen, L.L.C. had approximately 24 employees for the hotel and
restaurant operations. For the new operations we plan on having a staff for
the two residences and Carriage House Inn of 10 employees provided under a
management agreement with our manager.

Liquidity and Capital Resources

To finance the renovations and refurnishings, in March 2003 we entered
into a construction loan agreement with WestStar Bank in Aspen, along with
North and South Aspen, L.L.C. as a co-borrower. The construction loan
agreement was amended in August 2003. Under the construction loan agreement,
the maximum loan principal amount is $4.35 million, all of which was
outstanding as of December 31, 2003. Approximately $2,045,000 of the $4.35
million in outstanding indebtedness represents prior indebtedness associated
with the Sardy House property that was outstanding with WestStar Bank before
the renovations began in April 2003 and was included in the construction loan
agreement. The agreement has a maturity date of April 30, 2006.

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The construction loan agreement requires 14 consecutive monthly interest
payments beginning August 31, 2003, with interest calculated on the unpaid
principal balances at a floating interest rate based on the WestStar Bank base
rate (currently 5.00%), 18 monthly consecutive principal payments of $8,702
each beginning October 30, 2004, 18 monthly consecutive interest payments
beginning October 30, 2004, and one principal and interest payment of
$4,218,641, subject to change resulting from changes in the floating interest
rate, due on April 30, 2006. The minimum and maximum interest rates allowed
under this loan are 7% and 21%.

We must comply with the following material covenants under the construction loan agreement:



| |  |  | We must maintain adequate insurance with respect to our properties and operations.                                                                                                        
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | We must use the loan funds solely for payment of expenses
directly related to the renovation and refurnishing project, and the
SEC registration and marketing of the membership interests.
|
| |  |  | Without the prior written consent of WestStar Bank, we
cannot:                                                                                                                            



| |  |  | incur or assume any indebtedness,
except for trade debt incurred in the normal course of
business and indebtedness to WestStar Bank under the
construction loan agreement,                                                                                                                                                                     
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | sell, transfer, mortgage, assign,
pledge, lease, grant a security interest in, or encumber
any of our assets, except as allowed as permitted liens
under the construction loan agreement,                                                                                                                                                      
|
| |  |  | engage in any business activities
substantially different than those in which we are
presently engaged, cease operations, liquidate, merge,
transfer, acquire or consolidate with any other entity,
dissolve or transfer or sell property out of the
ordinary course of business, or make any distribution
with respect to any capital account,
|
| |  |  | loan, invest in or advance money or
assets, or acquire any interest in any other enterprise
or entity, or                                                                                                                                                                                                                                      
|
| |  |  | create or allow to be created any
lien or charge upon the properties serving as collateral
for the loan or the improvements to those properties.                                                                                                                                                                                               



| |  |  | We must have pre-sold membership interests with a total value
of at least $4.5 million by March 1, 2005, or we must list for sale
the Sardy House property as a single-family residence or repay the
loan in full.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We are currently in compliance with such covenants.

Repayment of the borrowings under the construction loan agreement is
secured by a mortgage on the Sardy House property, and personally guaranteed by
Frank S. Peters and Daniel D. Delano, who are officers of us and who control
North and South Aspen, L.L.C.

Although North and South Aspen, L.L.C. will receive the proceeds from the
sale of the membership interests being offered, North and South Aspen, L.L.C.
has agreed to apply the first proceeds

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from the closing of the required minimum offering amount to complete
repayment of all outstanding indebtedness under the construction loan
agreement. Therefore, we will not have any outstanding long-term debt when new
members are admitted and the planned operation of the residences begins.

Through December 31, 2003, we incurred a total cash outlay of
approximately $2.05 million in capital expenditures to complete the renovations
of the Sardy House. This amount includes a total of approximately $166,200 in
management and construction fees paid to Block 66, LLC.

We do not expect to need any additional financing within the next 12
months other than through operating contributions from members. Through the
required operating contributions from members we expect to have funds to cover
our costs and expenses and begin and continue the planned operation. We have
incurred approximately $260,000 in registration and offering expenses that will
be paid for through a capital contribution by North and South Aspen, L.L.C. to
us, which has been partially funded under the construction loan agreement.
North and South Aspen, L.L.C. has agreed to pay certain additional marketing
and offering expenses related to the sale of the membership interests. As of
December 31, 2003, we had advanced North and South Aspen, L.L.C. $377,445
related to registration and marketing expenses, and North and South Aspen,
L.L.C. owed us $159,787 for such expenses. North and South Aspen, L.L.C.
intends to repay part of the advances and other expenses of the sale of the
membership interests from the proceeds of the sales of the membership
interests. We began our new operations, with North and South Aspen, L.L.C. as
the sole holder of our membership interests, when the interior renovations were
completed in November 2003. We expect to require a pro rata interim operating
contribution from members, including new members, upon the closing of the
minimum offering expected to occur in the first quarter of 2004 in order to
cover operating expenses until the normal contribution budget cycle begins for
the fiscal year beginning April 1, 2004. Operating contributions from the
members will be requested by our manager on a quarterly basis upon 15 days
written notice. We plan to give such notice so that operating contributions
will be due at the beginning of each quarter. In any month where Sardy House
revenues or receipts are insufficient to cover operating expenses, our manager
may request additional operating contributions from the members upon 15 days
written notice. If the minimum offering is completed but not all 25 membership
interests are sold, North and South Aspen, L.L.C. as a continuing owner of
membership interests will be responsible for its pro rata share of the required
operating contributions for the membership interests that it continues to own.
North and South Aspen, L.L.C. may endeavor to rent out its exclusive weeks in
order to satisfy this obligation, but its obligation to pay the required
operating contributions will not be subject to receiving any rental revenues
for its exclusive weeks.

Off-Balance Sheet Arrangements

We do not currently have any off-balance sheet arrangements that have or
that we expect are reasonably likely to have a current or future effect on our
financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources
that we believe is or would be material.




Item 3. Controls and Procedures.

We maintain a system of disclosure controls and procedures that are
designed for the purposes of ensuring that information required to be disclosed
in our SEC reports is recorded, processed, summarized and reported within the
time periods specified in the SECs rules and forms, and that such information
is accumulated and communicated to our principal executive officer and
principal financial officer, as appropriate to allow timely decisions regarding
required disclosure.

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Our principal executive officer and our principal financial officer
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures as of the end of the period covered by
this report. Based upon that evaluation, the principal executive officer and
the principal financial officer concluded that our disclosure controls and
procedures are effective for the purposes discussed above as of the end of the
period covered by this report. There was no significant change in our internal
control over financial reporting that occurred during our most recent fiscal
quarter that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.




PART II  OTHER INFORMATION




Item 2. Changes in Securities.

On November 10, 2003, our Registration Statement on Form SB-2
(Registration No. 333-105521) for the best efforts offering of up to 25 of our
assessable limited liability company membership interests was declared
effective by the Securities and Exchange Commission under the Securities Act of
1933. The offering commenced on November 11, 2003. The current offering price
is $750,000 per membership interest, for an aggregate offering price for all of
the membership interests of $18,750,000. The offering price may be changed at
any time.

All 25 of the membership interests are held by our affiliate North and
South Aspen, L.L.C. North and South Aspen, L.L.C. will receive any proceeds
from the sale of the membership interests in the offering, subject to an
agreement to first apply the proceeds to complete repayment of the bank
indebtedness on the Sardy House property of $4,350,000 on which both we and
North and South Aspen, L.L.C. are obligated and the Sardy House property serves
as collateral.

The offering is being conducted through W.G. Nielsen & Co. on a best
efforts, all or none basis as to the minimum offering necessary to allow for
complete repayment of the bank debt of $4,350,000 on the Sardy House property,
and on a best efforts basis as to additional membership interests up to the
maximum offering. If a minimum of $4,665,000, before commissions and realtor
referral fees and excluding accrued interest on the bank debt to be repaid, is
not raised by May 31, 2004, subject to extension in our sole discretion of up
to an additional 30 days, the offering will be terminated and all money
received will be returned to investors with interest within 5 business days.
Until the minimum offering is achieved, all funds received from investors will
be deposited into an interest-bearing escrow account, with interest to be
credited toward the final purchase price.

As of the date of this report, no securities have been sold in the offering.




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



| | (a) |  | The following exhibits are furnished as part of this report:
| | --- |  | ------------------------------------------------------------

| |  |         |  |                                                                                                                    
| |  | ------- |  | -------------------------------------------------------------------------------------------------------------------
| |  | Exhibit |  |                                                                                                                    
| |  | Number  |  | Description                                                                                                        
| |  |         |  |                                                                                                                    
| |  | 31.1*   |  | Certification of President pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002                               
| |  |         |  |                                                                                                                    
| |  | 31.2*   |  | Certification of Treasurer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002                               
| |  |         |  |                                                                                                                    
| |  | 32.1*   |  | Certification pursuant to U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



| |  | * Filed herewith.
| |  | -----------------

13



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| | (b) |  | Reports on Form 8-K.
| | --- |  | --------------------

No reports on Form 8-K were filed during the quarter for which this report
is filed.

14



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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

|                        |  |                  |  |                            |  |                          
|----------------------- |  | ---------------- |  | -------------------------- |  | -------------------------
|                        |  | SARDY HOUSE, LLC
|                        |  |                  |  |                            |  |                          
|Date: February 13, 2004 |  | By:              |  | BLOCK 66, LLC, its Manager
|                        |  |                  |  |                            |  |                          
|                        |  |                  |  | By:                        |  | /S/ DANIEL D. DELANO     
|                        |  |                  |  |                            |  |                          
|                        |  |                  |  |                            |  | Daniel D. Delano, Manager

15



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EXHIBIT INDEX

| |  |         |  |                                                                                                                    
| |  | ------- |  | -------------------------------------------------------------------------------------------------------------------
| |  | Exhibit |  |                                                                                                                    
| |  | Number  |  | Description                                                                                                        
| |  |         |  |                                                                                                                    
| |  | 31.1*   |  | Certification of President pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002                               
| |  |         |  |                                                                                                                    
| |  | 31.2*   |  | Certification of Treasurer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002                               
| |  |         |  |                                                                                                                    
| |  | 32.1*   |  | Certification pursuant to U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



| |  | * Filed herewith.
| |  | -----------------