|UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
|--------------------------------------------------------------------------------------------
|                                                                                            

||X| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ---------------------------------------------------------------------------------------

|                                                   
|---------------------------------------------------
|For the
quarterly period ended December 31, 2004
OR
|                                                   

||_| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | -----------------------------------------------------------------------------------------

|                                                                                                 
|-------------------------------------------------------------------------------------------------
|For
the transition period from ________________ to _______________
Commission File Number 0-15596
|                                                                                                 

|SITI-SITES.COM, INC.                                  
|------------------------------------------------------
|(Exact name of registrant as specified in its charter)

|                                                     |                                     
|---------------------------------------------------- | ------------------------------------
|Delaware                                             | 75-1940923                          
|(State of incorporation)                             | (I.R.S. Employer Identification No.)
|                                                     |                                     
|47 Beech Road, Englewood, New Jersey                 | 07631                               
|(Address of principal executive offices)             | (Zip Code)                          
|                                                     |                                     
|111 Lake Avenue, Suite #7, Tuckahoe, New York        | 10707                               
|(Address of Chief Financial Officer)                 | (Zip Code)                          
|                                                    
|(212) 925-1181                                      
|(Registrants telephone number, 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 |_|
Indicate by check mark whether the registrant has filed all documents and reports required to be filed
by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution
of securities under a plan confirmed by a court.
YES |X|    NO |_|
As of February 10, 2005, the registrant had outstanding 26,478,178 shares of its Common Stock, par
value $.001 per share.
The following documents are incorporated herein by reference:
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

| | (1) | Current Report to security holders on of Form 8-K in January 2005 (January 205 8-K);                             
| | --- | -------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                    
| | (2) | Quarterly Report to security holders on Form 10-Q for the quarter ended September 30, 2004 (September 2004
10-Q);
| |     |                                                                                                                    
| | (3) | Quarterly Report to security holders on Form 10-Q for the quarter ended June 30, 2004 (June 2004
10-Q);          
| |     |                                                                                                                    
| | (4) | Annual Report to security holders on Form 10-K for the year ended March 31, 2004 (the Form 10-K
for 2004);       
| |     |                                                                                                                    
| | (5) | Annual Report to security holders on Form 10-K for the year ended March 31, 2003 (the Form 10-K
for 2003);       
| |     |                                                                                                                    
| | (6) | Annual Report to security holders on Form 10-K for the year ended March 31, 2002 (the Form 10-K
for 2002);       

|
|

|SITI-SITES.COM, INC.
FORM 10-Q
DECEMBER 31, 2004
|------------------------------------------------
|                                                

|PART I.  FINANCIAL INFORMATION                                                                     | Page No.
|-------------------------------------------------------------------------------------------------- | --------
|                                                                                                   |         
|Item 1. Financial Information                                                                      |         
|                                                                                                   |         
|Statement of Net Assets in Liquidation at December 31, 2004 (Unaudited) and March 31, 2004         |         
|                                                                                                   |         
|Statement of Changes in Net Assets (Liabilities) in Liquidation (Unaudited) for the Three and Nine |         
|Months Ended December 31, 2004 and December 31, 2003                                               |         
|                                                                                                   |         
|Notes to Condensed Financial Statements (Unaudited)                                                |         
|                                                                                                   |         
|Item 2. Managements Discussion and Analysis of Financial Condition                                |         
|and Status of Liquidation                                                                          |         
|                                                                                                   |         
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                                 |         
|                                                                                                   |         
|Item 4. Controls and Procedures                                                                    |         
|                                                                                                   |         
|PART II.  OTHER INFORMATION                                                                        |         
|                                                                                                   |         
|Item 1. Legal Proceedings                                                                          |         
|                                                                                                   |         
|Item 5. Other Information                                                                          |         
|                                                                                                   |         
|Item 6. Exhibits and Reports on Form 8-K                                                           |         

|
|

|PART I.              FINANCIAL INFORMATION
SITI-Sites.com, Inc.Statement of Net Assets in Liquidation(Amounts in thousands)
|---------------------------------------------------------------------------------------------------------------------------
|                                                                                                                           

|                                         |  | 
|---------------------------------------- |  | 
|                                         |  | 
|                                         |  | 
|Assets                                   |  | 
|Current assets:                          |  | 
|Cash and cash equivalents                |  | 
|Receivables and other assets             |  | 
|                                         |  | 
|Total current assets                     |  | 
|                                         |  | 
|                                         |  | 
|Total assets                             |  | 
|                                         |  | 
|                                         |  | 
|Liabilities                              |  | 
|Current Liabilities                      |  | 
|Accounts payable and accrued liabilities |  | 
|                                         |  | 
|Total current liabilities                |  | 
|                                         |  | 
|                                         |  | 
|Total liabilities                        |  | 
|                                         |  | 
|                                         |  | 
|Commitments and contingencies            |  | 
|                                         |  | 
|                                         |  | 
|Net Assets in Liquidation                |  | 
|                                         |  | 

|                                                            
|------------------------------------------------------------
|See accompanying notes to consolidated financial statements.

|1
|-

|**SITI-Sites.com, Inc.**                             
|-----------------------------------------------------
|**Statement of Changes in Net Assets in Liquidation**

|                                                  |                                            | 
|------------------------------------------------- | ------------------------------------------ | 
|                                                  | December 31,
      2004 
      (Unaudited) | 
|                                                  |                                            | 
|Three months ended                                |                                            | 
|(Amounts in thousands)                            |                                            | 
|                                                  |                                            | 
|                                                  |                                            | 
|Net assets in liquidation beginning of period     |                                            | 
|Additions to net assets in liquidation:           |                                            | 
|Contribution of managements services and rent    |                                            | 
|Issuance of common stock                          |                                            | 
|Reductions to net assets in liquidation:          |                                            | 
|Operating expenses and accrual of estimated costs |                                            | 
|                                                  |                                            | 
|Net assets in liquidation at end of period        |                                            | 
|                                                  |                                            | 

|                                                     
|-----------------------------------------------------
|**SITI-Sites.com, Inc.**                             
|**Statement of Changes in Net Assets in Liquidation**

|                                                  |                                            | 
|------------------------------------------------- | ------------------------------------------ | 
|                                                  |                                            | 
|                                                  | December 31,
      2004 
      (Unaudited) | 
|                                                  |                                            | 
|Six months ended                                  |                                            | 
|(Amounts in thousands)                            |                                            | 
|                                                  |                                            | 
|Net assets in liquidation beginning of period     |                                            | 
|Additions to net assets in liquidation:           |                                            | 
|Contribution of managements services and rent    |                                            | 
|Collection of a claim                             |                                            | 
|Issuance of common stock                          |                                            | 
|Reductions to net assets in liquidation:          |                                            | 
|Operating expenses and accrual of estimated costs |                                            | 
|                                                  |                                            | 
|Net assets in liquidation at end of period        |                                            | 
|                                                  |                                            | 

|                                                            
|------------------------------------------------------------
|See accompanying notes to consolidated financial statements.

|2
|-

|NOTES TO CONDENSED FINANCIAL STATEMENTS
|---------------------------------------

|(UNAUDITED)
1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) MANAGEMENTS PLAN FOR LIQUIDATION
Siti-Sites.com, Inc., a Delaware corporation (referred to as SITI or the Company)
previously operated as an Internet media company with three websites for the marketing of news and
services. The Companys websites related entirely to the music industry. SITI incurred losses
continuously since their inception in 1999. Following conclusion of the second fiscal quarter ended
September 30, 2001, management of the Company commenced procedures to liquidate its assets effective
January 1, 2002.
Asset Liquidation.  The Companys only substantial liability, consisting of the remaining nine months on its
lease for office premises at 594 Broadway in New York City, was amicably settled, and terminated
as of December 31, 2001. Concurrently office furniture and unnecessary computers were sold, and all
employees were terminated in November, 2001. A team of two software consultants were paid in December,
2001 and January, 2002, to complete the Companys Artist Promotion System. Attempts were to
be made to license portions thereof, working with a marketing consultant. However, complications
in completing the software resulted in management terminating these consulting relationships. The
Company shut down all of its websites effective February 1, 2002.
Certain former employees and directors purchased excess furniture and equipment from the Company
for a total of approximately $19,000. The balance of the furniture was sold to an unrelated third
party for approximately $5,000.
Financing.  The Company required a small financing to complete its employee terminations, asset liquidation
and provide for ongoing corporate expenses. Major investors in the Company provided $110,000 in equity
funds, purchasing 4,400,000 shares of common stock at $.025 per share, in a private offering as of
December 7, 2001 in varying amounts parallel to their respective option holdings. Each purchasing
investor was further required to surrender all of his outstanding options to purchase common stock
of the Company, acquired in making each previous investment. These consisted of options for a total
of 4,400,000 shares, previously exercisable at prices ranging from $.15 to $2.50 per share, and expiring
between 2003 and 2006. All of such options are now cancelled and terminated, reducing all outstanding
stock options by over 90%. This surrender and cancellation was intended to make future merger, sale
or other business possibilities for the Company easier to achieve. The Company has options, previously
held by employees in 1998 (before current major investors purchased control), which still remain
outstanding, for the purchase of 41,500 shares, exercisable at prices ranging from $1.69 to $2.15
per share, expiring in 2007.
The Companys stock was trading at $.03 per share with nominal volume, during the seven-day offer/closing
period in December, 2001. The shares sold to major investors were not registered under the Securities
Act of 1933, were purchased for investment and are not readily marketable, which factors generally
result in discounts in purchase value. transactions have been discussed in 2002 - 2004, but none
of them have gone to completion. The format the Company There was also substantial business risk
to the purchasers because the Company has no continuing operations and was being liquidated. Other
financings of this type followed 2002-2004 described below.
The Company continues to seek merger or sale possibilities with operating businesses who perceive
value in a merger with the Company as a publicly traded corporate shell with approximately 5,400
shareholders. Several such now plans to use is to form a subsidiary, reverse merge a
suitable candidate into such subsidiary and then distribute the Companys shares retained therein
(ranging from 15% to 5%, depending on the business involved) to all of the Companys shareholders
under a full S-1 Registration Statement filed with the SEC. The candidates so far have not had the
capital base, or lacked other factors justifying this type of transaction. But the format enables
the Company to handle such transactions more than once, if their business merit justifies going
public in this manner.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3
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|In October and November, 2003 Lawrence M. Powers, Chairman/CEO made two loans to the Company for a
total of $22,000, maturing October 30, 2004, at 6% interest per annum, payable with principal at
maturity. The funding was to finance ongoing activity of the Company.
Financing occurred in January-February, 2004. The major investors in the Company agreed to provide
an additional $63,000 in equity funds, consisting of $41,000 in cash, and the cancellation and conversion
to common stock of the Chairman/CEOs recent loans of $22,000. The total financing was applied
to the purchase of 1,260,000 shares of common stock at $.05 per share by these major investors. This
stock purchase transaction did not complete until June, 2004.
The financing was to cover ongoing corporate expenses, including major litigation filed by the Company
in November, 2003 against former attorneys and executives to recover proceeds from its former cell-phone
patents. See Litigation.
Effective January 6, 2005, Siti-Sites.com, Inc, (Siti, the Company) completed
another round of financing by the major investors of the Company in order to finance its operating
and litigation costs. Certain investors including Chairman Lawrence Powers purchased a total of 1,700,000
shares at $.05 per share. The shares purchased by the major investors were not registered under the
Securities Act of 1933, were purchased for investment and are not readily marketable, which factors
generally result in discounts in purchase value. However, no discounts were taken and, at the time
of the investment, the stock was trading at approximately $.02 per share for seven days preceding
this transaction.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                              | 
| | -------------------------------------------- | 
| | The following is a list of the participants:
| |                                              | 
| | Name                                         | 
| |                                              | 
| | Lawrence M. Powers                           | 
| | Robert Ingenito                              | 
| | John DiNozzi                                 | 
| | John Iannitto                                | 
| | Steven Gross                                 | 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Previous 2002-2004 Financing.  The Company Chairman/CEO Lawrence M. Powers and another investor, in order to finance ongoing corporate expenses, purchased an additional 1,800,000 shares of common stock of the Company (1,200,000 and 600,000 shares, respectively) as of July 26, 2002, at $.025 per share. (This was the same price paid by six shareholder investors in December, 2001, to finance ongoing corporate expenses at that time.) The Companys stock was trading at $.05 per share during the week ending July 26, 2002 with nominal volume. The shares sold to these two existing investors were not registered under the Securities Act of 1933, were purchased for investment requiring legended certificates and are not readily marketable
because of such legending and the
nominal trading volume in SITI stock, which factors generally result in substantial discounts in purchase value. There are also several other business risks to the purchasers, because the Company has no ongoing operations, and is seeking merger or sale possibilities with operating businesses, to make use of the Companys publicly traded status with approximately 5,400 shareholders. Depressed stock market conditions for smaller companies going public in 2002  2004 increased the difficulties in arranging any such transactions.
      The Company Chairman/CEO Lawrence M. Powers, in order to finance ongoing corporate expenses, purchased an additional 1,500,000 shares of common stock of the Company as of October 23, 2002, at $.02 per share. The Companys stock was trading at $.02 per share for most of the three weeks preceding October 23, 2002 with nominal volume. The shares sold to Mr. Powers were not registered under the Securities Act of 1933, were purchased for investment requiring legended certificates and are not readily marketable because of such legending and the nominal trading volume in SITI stock, which factors generally result in substantial discounts in purchase value. The several other business risks to the purchaser described above are continuing.
    The $63,000 equity financing in January-February, 2004, described above, was negotiated when the common stock of the Company had been trading ( at nominal volume) for several months at $.07 per share, but as of February 6, 2004 the common stock was trading at $.05 per share, and that price was used to complete the financing, resulting in the

|4
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|1,260,000 new shares being issued. The shares being sold to major investors were not registered under
the Securities Act of 1933, were purchased for investment requiring legended certificates,
and are not readily marketable because of such legending and the nominal trading volume in SITI stock.
As earlier stated, such factors generally result in substantial discounts in purchase value.
The several other business risks to the purchasers described in all earlier
financings above, are also continuing. Those risks are increased by the ongoing cash costs of the
patent recovery litigation, which will continue for a substantial period and require more major investor
financing. The future risks to all shareholders further include a one-third contingent fee
agreement, based solely on results achieved, with Special Litigation Counsel, Green, Schaaf
& Jacobson for handling the litigation through trial and appeal. This arrangement, while currently
advantageous to the Company, will necessarily reduce any net proceeds to the Company from the litigation.
See Litigation.
The Companys Chairman/CEO Powers, who is also General Counsel to the Company,
has been active in the lengthy investigation in the suit. He will continue to spend substantial time
working closely with litigation counsel as this matter continues, without charging any current cash
fees for his own time and commitment. At the conclusion of the matter, he will review the results
achieved with the Companys other major investors and the board of directors, and make reasonable
charges for his legal services.
Audited Financial Statements.As a result of the asset liquidation and reasons discussed below, the Companys management has
determined that it is an inactive entity under SEC accounting rules (See also Form
10-K for 2003, Item 1. Business  Inactive Entity), and is not therefore required to file
audited financial statements. This step conserves working capital. The Company meets all of the criteria
as set forth below except as noted:
(a) Gross receipts from all sources for the fiscal years ended March 31, 2004 and 2003 were not in
excess of $100,000;
(b) For fiscal 2003 and 2004, the registrant has not purchased or sold any of its own stock, granted
options therefore, or levied assessments upon outstanding stock; (1)
(c) Expenditures for all purposes for the fiscal years ended March 31, 2004 and 2003 were not in excess
of $100,000; (2)
(d) No material change in the business has occurred during the 2003 and 2004 fiscal years, including
any bankruptcy, reorganization, readjustment or succession or any material acquisition or disposition
of plants, mines, mining equipment, mine rights or leases; and
(e) No exchange upon which the shares are listed, or governmental authority having jurisdiction, requires
the furnishing to it or the publication of audited financial statements.
(1) During the last two fiscal years, the Company had no source of funding to cover its expenses which
were almost entirely audit, stock transfer and litigation expenses. Chairman/CEO Powers, who may
be deemed to beneficially own approximately 48% of the Companys outstanding stock, and other
existing investors provided funding to the Company. All of the shares issued are legended and none
of the investors, has any intention of selling the stock publicly in the foreseeable future. (See
also Form 10-K for 2004, Item 1. Business  Inactive Entity)
(2) For fiscal 2003, operating expenses of approximately $260,000 included approximately $185,000 of
contributed services and rent. The Company recorded such $185,000 as a contribution of capital because
there was no cash outlay for such expenses. For fiscal 2004, operating expenses of approximately
$216,000 included approximately $155,000 of contributed services and rent which were recorded as
contributions of capital because there was no cash outlay for such expenses.
Audited financial statements are planned to be resumed when events or transactions justify the expense.
The Company expects to continue filing unaudited quarterly and annual financial statements with the
SEC.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5
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|(b) CHANGE TO LIQUIDATION BASIS OF ACCOUNTING
During the quarter ended December 31, 2001, the Company decided to liquidate its operations and adopted
the liquidation basis of accounting effective January 1, 2002. Under the liquidation basis of accounting,
assets are stated at their estimated net realizable values and liabilities are stated at their estimated
settlement amounts, which estimates will be periodically reviewed and adjusted. Since the Company
is in liquidation without continuing operations, the need to present quarterly Statements of Operations
and Comprehensive Loss as well as a Statement of Cash Flows, is eliminated. However, the prior years
financial statements for the comparable quarter are presented, since the Company did not adopt this
method of accounting until January 1, 2002.
The valuation of assets at their net realizable value and
liabilities at their anticipated settlement amounts necessarily requires many estimates and assumptions.
In addition, there are substantial risks and uncertainties associated with carrying out the liquidation
of the Corporations existing operations. The valuations presented in the accompanying Statement
of Net Assets in Liquidation represent estimates, based on present facts and circumstances, of the
net realizable values of assets and costs associated with carrying out the dissolution and liquidation
plan based on the assumptions set forth below. The actual values and costs are expected to differ
from the amounts shown herein and could be greater or lesser than the amounts recorded. Accordingly,
it is not possible to predict the aggregate amount that will ultimately be distributable to shareholders
and no assurance can be given that the amount to be received in liquidation will equal or exceed
the net assets in liquidation per share in the accompanying Statement of Net assets in Liquidation
or the price or prices at which the Common Stock has generally traded or is expected to trade in
the future. The cautionary statements regarding estimates of net assets in liquidation set forth
in the Forward-Looking Statements portion of this report are incorporated herein by reference.
(c) RECENT HISTORY
For a full discussion of the Companys recent history refer to Form 10-K for 2004, Form 10-K for
2003 and Form 10-K for 2002, incorporated herein by reference.
(d)  USE OF ESTIMATES
In preparing financial statements
in conformity with accounting principles generally accepted in the United States of America, management
is required to make estimates and assumptions that affect the reported amounts of assets and liabilities
and the disclosure of contingent assets and liabilities at the date of the financial statements and
revenues and expenses during the reporting period. Actual results could differ from those estimates.
(e) CASH AND
CASH EQUIVALENTS
Cash
and cash equivalents include the Companys cash balances and short-term investments that mature
in 90 days or less from the original date of maturity. Cash and cash equivalents are carried at cost
plus accrued interest, which approximates market.
2.   LITIGATION
The Company filed a civil suit in the United States District
Court for the Southern District of New York on November 12, 2003, withdrawn in April, 2004 and re-filed
in New York State Supreme Court in New York County, Commercial Division. The Companys Complaint
alleges that its patent attorneys and departing patent licensing executives, in late 1998 and thereafter,
purchased its valuable patents on cell-phone technology for $24,000 by concealing their nature and
value. The defendants have realized at least $10 million in gross proceeds therefrom, to date.
The Companys claims arise from a period when it was previously named Spectrum Information

Technologies, Inc. The claims all stem from the alleged breach of fiduciary duties by the defendants.

The claims were under investigation by the Company under counsels supervision, in the second

half of 2003. The Company is seeking damages in excess of $10 million, a court-ordered trust on
future
proceeds from its former patents and return of the patents.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6
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|This is complex litigation, expected to be contested vigorously by several defense firms and

to continue for several years. No assurance can be given as to the ultimate outcome thereof. Martin

M. Green, Esq. and his firm of Green, Schaaf & Jacobson, P.C. based in Clayton, Missouri, have

been retained as the Companys Special Counsel, for the litigation and ultimate trial of this

matter. The Company has retained Gary Cooper, Esq. and Cooper & McCann, LLP. as its New York

Counsel.
As of the date of this report the Company knows of no pending or threatened legal actions against the

Company that would have a material impact on the operations or financial condition of the Company.
Defaults by EZCD.com as to its investment representations, and its content and technology sharing agreement

with the Company in 2000 have been resolved in the EZCD.com bankruptcy liquidation, and the Company

in May 2004, recovered approximately $30,000. There is no further recovery expected.
From time to time since 1998, the Company had been a party to other legal disputes incidental and not

material to its business.
3.   ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts
payable and accrued liabilities were comprised of the following:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                              | 
| | ---------------------------- | 
| |                              | 
| |                              | 
| |                              | 
| |                              | 
| |                              | 
| | Accrued professional fees    | 
| | Accounts payable and accrued | 
| | Expenses                     | 
| |                              | 
| |                              | 
| |                              | 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND STATUS OF LIQUIDATION
THIS QUARTERLY REPORT ON FORM 10-Q CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995, INCLUDING, BUT NOT LIMITED TO STATEMENTS RELATED TO BUSINESS
OBJECTIVES AND STRATEGY OF THE COMPANY. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT EXPECTATIONS,
ESTIMATES AND PROJECTIONS ABOUT THE COMPANYS INDUSTRY, MANAGEMENTS BELIEFS AND CERTAIN
ASSUMPTIONS MADE BY THE COMPANYS MANAGEMENT. WORDS SUCH AS ANTICIPATES, EXPECTS,
INTENDS, PLANS, BELIEVES, SEEKS, ESTIMATES,
VARIATIONS OF SUCH WORDS AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY SUCH FORWARD-LOOKING STATEMENTS.
THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES
AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT; THEREFORE, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM
THOSE EXPRESSED, FORECASTED, OR CONTEMPLATED BY ANY SUCH FORWARD-LOOKING STATEMENTS. FACTORS THAT
COULD CAUSE ACTUAL EVENTS OR RESULTS TO DIFFER MATERIALLY INCLUDE, AMONG OTHERS, THOSE RISK FACTORS
SET FORTH IN THE COMPANYS ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED MARCH 31, 2004. GIVEN
THESE UNCERTAINTIES, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON ANY SUCH FORWARD-LOOKING
STATEMENTS. UNLESS REQUIRED BY LAW, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE PUBLICLY ANY FORWARD-LOOKING
STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. HOWEVER, READERS
SHOULD CAREFULLY REVIEW THE RISK FACTORS SET FORTH IN OTHER REPORTS OR DOCUMENTS THE COMPANY FILES
FROM TIME TO TIME WITH THE SECURITIES AND EXCHANGE COMMISSION, PARTICULARLY THE ANNUAL REPORTS ON
FORM 10-K, OTHER QUARTERLY REPORTS ON FORM 10-Q AND ANY CURRENT REPORTS ON FORM 8-K.

|7
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|Overview
SITI has been seeking merger or sale possibilities with operating businesses who perceive value in
a merger with the Company as a publicly traded corporate shell. The Company was an Internet media
company with three websites for the marketing of news and services. The Companys websites related
entirely to the music industry. The Company intended to develop these websites further by entering
into strategic partnerships and affiliations. As part of this strategy, in June, 1999 the Company
acquired Tropia, which promoted and marketed the music of selected independent artists on its website
www.Tropia.com. The Company next acquired three music-related websites, HungryBands.com (an e-commerce
website and business promoting and selling music by independent artists), NewMediaMusic.com (an e-news/magazine
business), and NewYorkExpo.com (a music and Internet conference business), all in January, 2000.
As of December 31, 2001, the Company discontinued the operations of its New Media Music and HungryBands
divisions because they were not viable businesses. As of March 31, 2001, the Company discontinued
the operations of the New York Expo as a result of increased losses associated with the production
of the Expo. In addition, during fiscal 2000, the Company made and wrote-off a $500,000 investment
in a music CD custom compilation and promotion company, Volatile Media, Inc., which did business
as EZCD.com, which thereafter went into a bankruptcy liquidation. Such investment was written off
at March 31, 2000 because of uncertainties in EZCDs financing plans and ability to continue operations.
SITIs  history under former management and control persons goes back to 1984 when it
was incorporated in Delaware. As a result of a change of control of the Company in December, 1998,
the Companys senior management and Board of Directors were replaced. The current senior management
and Board of Directors changed the strategic direction of the Company from being a developer of patented
communication technologies to that of an Internet media company. All prior business operations of
the Company were discontinued. The Company changed its corporate name to SITI-Sites.com, Inc. from
Spectrum Information Technologies, Inc. after its Annual Meeting of Stockholders on December 14,
1999, and its former stock symbol SITI is now SITN.PK.
In view of the Companys determination to seek other business opportunities to create shareholder
value, the following information should not be relied upon as an indication of future performance.
All of the Companys operations prior to January 1, 2002 are discontinued operations and the
Company adopted the liquidation basis of accounting, effective January 1, 2002. (See Status of Liquidation).
LIQUIDITY AND CAPITAL RESOURCES
The Companys primary objective is to conserve its cash
while it is seeking merger or sale possibilities. As of December 31, 2004, the Company had net assets
of approximately $96,000 and net liabilities of approximately $18,000.
As of December 31, 2004 the Companys total assets were
$96,000, represented primarily by cash and a receivable of $900 from the Companys Chief Financial
officer as part of a payment plan for the purchase of stock. During the nine months ended December
31, 2004, the Company paid approximately $172,000 in operating expenses consisting primarily of its
stock transfer agent fees and salary to one employee of approximately $18,000 and $12,000, respectively,
as well as managements contribution of their services of approximately $94,000. Furthermore,
the company incurred approximately $18,000 in legal fees for the nine months ended December 31, 2004.
As of December 31, 2004, the Companys had approximately $4,000
in liabilities. Such liabilities were to the Companys accountant as well as general operating
expenses. Management, primarily the Chairman/CEO, continues to work without any cash compensation.
Management further continues to use personal offices to continue its plan. As a result, of this contribution,
the Company charged-off approximately $116,000 to compensation and rent for the nine months ended
December 31, 2004.
As of December 31, 2003, the Companys total assets were $9,000,
represented entirely by cash. During the three and nine months ended December 31, 2003, the Company
paid approximately $59,000 and $160,000, respectively, in operating expenses consisting primarily
of its stock transfer agent fees and salary to one employee of approximately $18,000 and $9,000,
respectively, as well as managements contribution of their services of approximately $93,000.
As of December 31, 2003, the Companys liabilities were $27,000
consisting primarily of its loan payable to Chairman/CEO Powers of approximately $22,000. This loan
was to finance ongoing activity of the Company. Management, primarily the Chairman/CEO, continues
to work without any cash compensation. Management further continues to use personal offices to continue
its plan. As a result, of this contribution, the Company charged-off approximately $114,000 to compensation
and rent for the nine months ended December 31, 2003.
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|LIQUIDATION BASIS OF ACCOUNTING
The condensed consolidated financial statements for the three months
ended June 30, 2004 were prepared on the liquidation basis of accounting. Under the liquidation basis
of accounting, assets are stated at their estimated net realizable values and liabilities are stated
at their estimated settlement amounts, which estimates will be periodically reviewed and adjusted.
Since the Company is in liquidation without continuing operations, the need to present quarterly
Statements of Operations and Comprehensive Loss as well as a Statement of Cash Flows is eliminated.
The valuation of assets at their net realizable value and liabilities
at their anticipated settlement amounts necessarily requires many estimates and assumptions. In addition,
there are substantial risks and uncertainties associated with carrying out the liquidation of the
Corporations existing operations. The valuations presented in the accompanying Statement of
Net Assets in Liquidation represent estimates, based on present facts and circumstances, of the net
realizable values of assets and costs associated with carrying out the dissolution and liquidation
plan based on the assumptions set forth below. The actual values and costs are expected to differ
from the amounts shown herein and could be greater or lesser than the amounts recorded. Accordingly,
it is not possible to predict the aggregate amount that will ultimately be distributable to shareholders
and no assurance can be given that the amount to be received in liquidation will equal or exceed
the net assets in liquidation per share in the accompanying Statement of Net assets in Liquidation
or the price or prices at which the Common Stock has generally traded or is expected to trade in
the future. The cautionary statements regarding estimates of net assets in liquidation set forth
in the Forward-Looking Statements portion of this report are incorporated herein by reference.
RISK FACTORS
See the Companys Annual Report on Form 10-K , Item
1 - Risk Factors That May Affect the Companys Business, Future Operating Results and Financial
Condition. and Status of Liquidation set forth herein.
STATUS OF LIQUIDATION
SITI continues to seek merger or sale possibilities with operating businesses
who perceive value in a merger with the Company as a publicly traded corporate shell. There can be
no assurance these of any merger or sale occurring or such transaction will be viable for the Company.
There are also several other business risks to any purchasers of Company stock, because the Company
has no ongoing operations, is in liquidation, and is seeking merger or sale possibilities with operating
businesses, to make use of the Companys publicly traded status with approximately 5,400 shareholders.
But current stock market conditions for going public increase the difficulties in arranging
any such transactions.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Companys market risk disclosures set forth in its fiscal 2003
Annual Report filed on Form 10-K have not changed significantly.
ITEM 4. CONTROLS AND PROCEDURES
(a) The Companys principal executive officer and its principal
financial officer, based on their evaluation of the Companys disclosure controls and procedures
(as defined in Exchange Act Rules 13a -14 (c)) as of a date within 90 days prior to the filing of
this Quarterly Report on Form 10-Q, have concluded that the Companys disclosure controls and
procedures are adequate and effective for the purposes set forth in the definition in Exchange Act
rules.
(b) There were no significant changes in the Companys internal controls
or in other factors that could significantly affect the Companys internal controls subsequent
to the date of their evaluation.
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|PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company filed a civil suit in the United States District Court for the Southern District of New
York on November 12, 2003, withdrawn in April, 2004 and re-filed in New York State Supreme Court
in New York County, Commercial Division. The Companys Complaint alleges that its patent attorneys
and departing patent licensing executives, in late 1998 and thereafter, purchased its valuable patents
on cell-phone technology for $24,000 by concealing their nature and value. The defendants have realized
at least $10 million in gross proceeds therefrom, to date.
The Companys claims arise from a period when it was previously named Spectrum Information

Technologies, Inc. The claims all stem from the alleged breach of fiduciary duties by the defendants.

The claims were under investigation by the Company under counsels supervision, in the second

half of 2003. The Company is seeking damages in excess of $10 million, a court-ordered trust on
future
proceeds from its former patents and return of the patents.
This is complex litigation, expected to be contested vigorously by several defense firms and

to continue for several years. No assurance can be given as to the ultimate outcome thereof. Martin

M. Green, Esq. and his firm of Green, Schaaf & Jacobson, P.C. based in Clayton, Missouri, have

been retained as the Companys Special Counsel, for the litigation and ultimate trial of this

matter. The Company has retained Gary Cooper, Esq. and Cooper & McCann, LLP. as its New York

Counsel.
As of the date of this report the Company knows of no pending or threatened legal actions against the

Company that would have a material impact on the operations or financial condition of the Company.
Defaults by EZCD.com as to its investment representations, and its content and technology sharing agreement

with the Company in 2000 have been resolved in the EZCD.com bankruptcy liquidation, and the Company

in May 2004, recovered approximately $30,000. There is no further recovery expected.
From time to time since 1998, the Company had been a party to other legal disputes incidental and not

material to its business.
ITEM 2. CHANGES IN SECURITIES AND ITEM 5. OTHER INFORMATION
Effective May 5, 2004, Robert Ingenito resigned from the Board of Directors of SITI. He stated that
his resignation was due to other commitments, and that he felt he could not devote the proper amount
of time needed for the activities of SITI. His services to the Company over the past five years were
substantial, and the remaining officers and directors expressed their gratitude for his commitment
and his efforts. The two remaining members of the Board elected Toni Ann Tantillo as a Director of
the Company. Ms. Tantillo is a Certified Public Accountant in New York, and has been effectively
handling accounting, regulatory filings and other business matters for the Company for the past eight
years. She has been its Chief Financial Officer since 1999; is also its Vice-President, Secretary
and Treasurer; and she worked as an independent consultant to SITI after its change of control in
December, 1998. She was also the controller of SITI from 1995 to December, 1998 under its prior management.
Ms. Tantillo age 37 has conducted her own private accounting practice since 1998. Her client base
and experience includes an international public relations firm, an importer/exporter of steel, a
publication firm and many small businesses.
In
connection with her services as a Director, Ms. Tantillo purchased 100,000 shares of SITI common
stock at $.03 per share, its current trading price, payable over ten months.
Effective January 6, 2005, Siti-Sites.com, Inc, (Siti, the Company) completed
another round of financing by the major investors of the Company in order to finance its operating
and litigation costs. Certain investors including Chairman Lawrence Powers purchased a total of 1,700,000
shares at $.05 per share. The shares purchased by the major investors were not registered under the
Securities Act of 1933, were purchased for investment and are not readily marketable, which
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|factors generally result in discounts in purchase value. However, no discounts were taken and, at the time of the investment, the stock was trading at approximately $.02 per share for seven days preceding this transaction.
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|                                                                                                                                                                                                                              

|The following is a list of the participants:
|--------------------------------------------
|                                            
|Name                                        
|                                            
|Lawrence M. Powers                          
|Robert Ingenito                             
|John DiNozzi                                
|John Iannitto                               
|Steven Gross                                

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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|Effective
August 11, 2004, Barclay V. Powers resigned from the Board of Directors of Siti. He informed Chairman/CEO
Lawrence Powers that he had other career commitments and interests that made it difficult for him
to commit the time needed for briefing and interaction on Sitis future business activities.
His services to the Company since October, 1999 were substantial, and the two remaining members of
the Board of Directors expressed their gratitude for his commitment and efforts over these years.
The
remaining directors elected Gladys Powers a director as of August 11, 2004. Gladys Powers has been
married to the Chairman/CEO 49 years. She is 77 years old and is generally familiar with all of the
Companys activities as a result of regular briefings by Mr. Powers, and her occasional help
in reviewing drafts of many Company materials and his published articles for Siti over the past five
years. She is a trained author, having earlier written several television dramatic plays, documentaries
and stage plays, with several New York workshops and a substantial Off-Broadway production. She received
her B.A. at the University of Washington in Seattle, attended graduate literature and writing programs
at Oxford, the Sorbonne, at Columbia University and in a fellowship at the Yale Drama School. She
is currently working on screen plays at her home offices. Mrs. Powers is expected to be an active
participant in the business of the Board of Directors because of her substantial stock interest in
Siti through Lawrence Powers and her son, Barclay. Her shareholder interest is coupled with her knowledge
of all present Company activity, and her experience in reviewing with Mr. Powers his various business
ventures, and knowing his partners and associates, over a lengthy career since 1956.

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|ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
|----------------------------------------
|                                        

|A. |  | Exhibits                                                                                                                          
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------
|   |  |                                                                                                                                   
|   |  | Exhibit 31  Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               
|   |  |                                                                                                                                   
|   |  | Exhibit 32  Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002
|   |  |                                                                                                                                   
|B. |  | Reports on Form 8-K                                                                                                               
|   |  |                                                                                                                                   
|   |  | There were no reports on Form 8-K filed during the quarter ended December 31, 2004.                                               

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|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, thereto duly authorized.
    Dated:   February 14, 2005
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|                                                                                                                                                                                                                                       

| | SITI-SITES.COM, INC.
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| | By                  
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| | By                  
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