UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-QSB





[X]     QUARTERLY  REPORT  UNDER  SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT  OF  1934



For the Quarterly period ended November 30, 2004



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



For  the  transition  period  from  ___________  to  _____________



Commission  file  number  000-25335



ELGRANDE.COM, INC.

(Exact  name  of  registrant  as  specified  in  its  charter)



Nevada                                       88-0409024

(State  or  other  jurisdiction  of            (IRS Employer Identification No.)

incorporation  or  organization)



1450 Kootenay Street, Vancouver, B.C.

V5K 4R1 Canada

(Address of principal executive offices)



(604) 689-0808

(Issuer's telephone number)



The  number  of  shares  outstanding  of  each of the issuer's classes of common equity  as  of  the  latest  practicable  date:



Class                                      January 14, 2004

-------------------------------                     -----------------------

Common stock, $ 0.001 par value                           18,491,610











































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ELGRANDE.COM, INC.

FORM 10-QSB

For the Quarterly period ended November 30, 2004



TABLE OF CONTENTS





Page



PART  I.  FINANCIAL  INFORMATION                                          3



ITEM  I - Unaudited  Consolidated  Financial Statements



Consolidated Balance Sheets as of

November 30, 2004 (Unaudited) and  May  31,   2004              
3



Consolidated  Statements  of  Operations

for  the  Three Months and Six Months ended  November 30,

2004 and  2003  (Unaudited)                                     4



Consolidated  Statements  of  Cash  Flows

for  the  Six  
Months  ended November 30, 2004

and  2003 (Unaudited)                                           5



Condensed
Notes to Consolidated Interim Financial Statements    6



ITEM  2   Management's  Discussion  and  Analysis  of

Financial  Condition  and  Results  of  Operations              8



ITEM  3   Controls and Procedures                                         12



PART II.  OTHER  INFORMATION                                              13



Signatures                                                                14



Certification    (filed as attachment)























































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ELGRANDE.COM, INC.

FORM 10-QSB

For the Quarterly period ended November 30, 2004



PART I.  FINANCIAL INFORMATION



Item 1 - Financial Statements



|ELGRANDE.COM INC.                           
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|CONSOLIDATED BALANCE SHEETS                 
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|LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
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See accompanying condensed notes.





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|ELGRANDE.COM INC.                                           
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|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
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|R E V E N U E S                                             
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|COST OF REVENUES                                            
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|GROSS PROFIT (LOSS)                                         
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|E X P E N S E S                                             
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|LOSS FROM OPERATIONS                                        
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|OTHER INCOME (EXPENSE)                                      
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|OTHER COMPREHENSIVE INCOME                                  
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|COMPREHENSIVE LOSS                                          
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See accompanying condensed notes.



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|ELGRANDE.COM INC.                           
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|CONSOLIDATED STATEMENT OF CASH FLOWS        
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|Cash flows from operating activities:       
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|Cash flows from investing activities:       
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|Cash flows from financing activities:       
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|Net increase (decrease)  in cash            
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|Cash, beginning of period                   
|Cash, end of period                         
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|SUPPLEMENTAL DISCLOSURES:                   
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|NON-CASH INVESTING AND FINANCING ACTIVITIES:
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See accompanying condensed notes.





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ELGRANDE.COM, INC.

CONDENSED NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

NOVEMBER 30, 2004



The financial statements have been prepared in accordance with generally accepted accounting principles for the interim financial information with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of the Company's management, all adjustments (consisting of only normal accruals) considered necessary for a fair presentation have been included.



For further information refer to the financial statements and notes thereto included in the Company's Annual Report on Form 10-KSB for the year ended May 31, 2004.



The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has suffered material recurring losses from operations since inception. At November 30, 2004 the Company has a working capital deficit of approximately $1,079,810, an accumulated deficit of approximately $10,138,129 and negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern.



Continuation of the Company is dependent on achieving sufficiently profitable operations and obtaining additional financing. Management has and is continuing to raise additional capital from various sources. The Company has developed a wholesale division which sources unique home décor items from Europe for distribution in North America. There can be no assurances that the Company will be successful in raising additional capital. The financial statements do not include any adjustment relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Revenue and Cost Recognition

The Company recognized revenue for product sales when the products are shipped and title passes to customers. Cost of sales consists of the purchase price of products sold, inbound and outbound shipping charges and packaging supplies.



Accounts Receivable

The Company carries its accounts receivable at cost. The Company has not carried accounts receivable in the past and is in the process of developing a policy for recognizing doubtful accounts.  The Company's policy is to accrue interest on trade receivables 30 days after Invoice date. A receivable is considered past due if the Company does not receive payment within 30 days.



Inventories

Inventory at November 30, 2004 consists of a variety of home-décor products.  Inventories are recorded using the specific identification method and valued at the lower of cost or market value. Inventory consisting of manufactured products are recorded using the first in first out method and valued at the lower of cost or market value.



NOTE 2 - COMMON STOCK AND WARRANTS



During the three months ended November 30, 2004, the Company issued 122,000 shares of common stock for services valued at $7,318.  All stock was issued at its fair market value at the date of grant.



In August 2003 the Company effected a 10 for 1 reverse split of the company's capital stock. As result of the reverse split, the Company's authorized common stock decreased from 200,000,000 to 20,000,000 shares. Capital restructuring was a necessary step in order to enable the Company to raise additional funding to support and grow the business.



















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ELGRANDE.COM, INC.

CONDENSED NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

NOVEMBER 30, 2004



NOTE 3 - STOCK OPTIONS



During the fiscal year ended May 31, 2003 the Company's board of directors approved the Elgrande.com, Inc. 2003 Stock Options Plan. The Company may issue up to 5,000,000 common stock options with a maximum per share price of $0.05.



During the three months ended November 30, 2004, the Company did not issue any stock options from this plan.



The following is a summary of stock option activity:





|                                                         | Number of Weighted Average Shares | Exercise Price
|-------------------------------------------------------- | --------------------------------- | --------------
|Outstanding at June 1, 2002                              | 3,655,000                         | $ 0.61        
|Outstanding at May 31, 2003                              | 3,655,000                         | $ 0.61        
|Options exercisable at May 31, 2003                      | 3,640,000                         | $ 0.61        
|Outstanding June 1, 2003                                 | 3,640,000                         | $ 0.61        
|Expired                                                  | (1,119,000)                       | $(0.11)       
|Options outstanding at May 31, 2004                      | 2,521,000                         | $ 0.83        
|Options outstanding and exercisable at November 30, 2004 | 2,521,000                         | $ 0.83        



NOTE 4 - NOTES AND DEBENTURES PAYABLE



Short-term Notes

During the three months ended November 30, 2004, the Company's officers loaned the Company $32,504 to fund continuing operations. During the three months ended November 30, 2004, the Company also received an interest free short-term loan of $268,527 from an individual.



NOTE 5 - INVESTMENT IN EUROPEAN SUBSIDIARY



In the quarter ended August 31, 2002, the Company invested $100,000 in its wholly owned European subsidiary, Elgrande Europe AG, stock of which has a par value of one euro. The subsidiary was created to provide an operating presence in Europe.



At November 30, 2004, there were no sales activity recorded in the European Company. Elgrande Europe AG has been consolidated in these financial statements.



NOTE 6  INVESTMENT IN BISCAYNE BAY TRADING CORPORATION



In the quarter ended November 30, 2003, the Company acquired Biscayne Bay Trading Corporation for 35,000 shares of restricted common stock.  Approximately 850,000 shares are held in escrow for future borrowings for debenture agreements.

































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ELGRANDE.COM, INC.

FORM 10-QSB

For the Quarterly period ended November 30, 2004



Item  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATION



Cautionary Statement Regarding Forward-Looking Statements



This  quarterly  report  contains  forward-looking  statements  as that term is

defined  in  the  Private  Securities  Litigation  Reform  Act  of 1995.  These

statements  relate  to future events or our future financial performance.  Some

discussions in this report  may contain forward-looking statements that involve

risk and uncertainty. A number  of  important  factors  could  cause our actual

results  to  differ  materially  from  those  expressed  in any forward-looking

statements  made  by  us in this report. Forward-looking statements  are  often

identified  by  words  like:  "believe",  "expect",  "estimate",  "anticipate",

"intend", "project" and  similar  expressions  or words which, by their nature,

refer to future events.



In some cases, you can also identify forward-looking  statements by terminology

such as "may", "will", "should", "plans", "predicts", "potential" or "continue"

or  the  negative  of  these  terms  or  other  comparable  terminology.  These

statements   are  only  predictions  and  involve  known  and  unknown   risks,

uncertainties  and  other  factors that may cause our actual results, levels of

activity, performance or achievements  to  be  materially  different  from  any

future  results,  levels  of activity, performance or achievements expressed or

implied by these forward-looking statements.



Although we believe that the  expectations  reflected  in  the  forward-looking

statements  are  reasonable,  we  cannot  guarantee  future results, levels  of

activity or achievements. Except as required by applicable  law,  including the

securities  laws  of the United States, we do not intend to update any  of  the

forward-looking statements to conform these statements to actual results.



RESULTS OF OPERATIONS



Comparison of the six months ended November 30, 2004 and November 30, 2003.



In November 2002 we  launched  our  wholesale division, European Sources Direct (ESD). Since then, we have established  wholesale  sales  representation in key U.S.  and  Canadian regional giftware and home d é
cor wholesale  centers.  We have secured  certain exclusive corporate and wholesale distribution rights for products within the USA, Canada and Mexico.



For the quarter  ended  November 30,  2004, we had revenues of $344,011 versus $276,552 for the same period ending last  year.  This  increase  in  revenues is due  to our increasing customer base and the continued
 performance of our principal
product-line,

The Love Plates .



For the six months ended  November 30,  2004, we had revenues of $635,481 versus $441,242 for the same period ending last year.



For the quarter ended  November 30,  2004,  cost  of  revenues was $203,262 versus $177,646 for the same period last year, reflecting the positive correlation of the cost of inventory sold and the corresponding

freight-in charges of importing products, to our increased revenues.



For the six months ended  November 30,  2004,  cost  of  revenues was $338,771 versus $297,788 for the same period ending last year.





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ELGRANDE.COM, INC.

FORM 10-QSB

For the Quarterly period ended November 30, 2004



Gross profit for the quarter ended November 30, 2004 was $140,749 or
41%,
compared to  $98,906 or
36%

for the same period ending last year.



Gross profit for the six months ended November 30, 2004 was $296,710 or 47%, compared to $143,454 or 33% for the same period ending last year.



























Revenue accounts for sales of products that have been delivered to customers.  Pending sales are orders that have been received but not yet fulfilled due to reasons such as back orders or customer credit issues.
 The

financial statements do not reflect pending sales as per GAAP.



Management  is  endeavoring  to improve our operations. By improving i
nventory management, shipping logistics  and  product handling, we believe that we can increase efficiency and further lower
costs of

revenues to improve gross profit margins.



CHANGES IN FINANCIAL CONDITION



A summary of expenses for the six months ended November 30, 2004 compared to the same period ended November 30, 2003 is as follows:



|                        | 2004      | 2003     
|----------------------- | --------- | ---------
|Consulting              | $  92,021 | $ 119,807
|Selling expenses        | 153,825   | 111,349  
|Salaries                | 292,011   | 393,153  
|Depreciation            | 33,404    | 76,940   
|Office & Administration | 42,151    | 100,390  
|                        | $ 613,412 | $ 801,639



Significant changes in our financial condition that warrant discussion include:



Consulting Fees

Consulting fees for the six months ended November 30, 2004 were lower by 23% compared to the same period last year due to the reduction in consulting contracts.















Selling expense

As expected, selling expense increased as sales increased.  Such expenses include sales commissions, costs associated with promoting our product lines at various show rooms, costs related to media and trade publication exposure.















Salaries

There was a substantial decrease of 26% in salaries expense from the six month period ended November 30, 2003 to the same period in 2004.  As efficiencies in our business processes were realized, we were able to streamline costs by reducing our staffing requirements.



Office and Administration

Office and Administration costs were greatly reduced by 58%. Over the last year, we built and established the infrastructure to support projected sales.  The reduced expenses in this area reflects our reaching a level of efficiency in the administration area of the business.





Management  is  currently  investigating  other  ways  to  improve its business administration.   This   may  involve  additional  investments  in  information technology to create further efficiencies.





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ELGRANDE.COM, INC.

FORM 10-QSB

For the Quarterly period ended November 30, 2004







































LIQUIDITY AND CAPITAL RESOURCES



TRENDS LIKELY TO  HAVE  A  MATERIAL  IMPACT  ON SHORT & LONG TERM LIQUIDITY THE

SUCCESS OF THE WHOLESALE LINE



In the previous fiscal year, we established relationships  with a network of 1 6
 wholesale  marketing agencies and representatives covering the  North  American market.  In the last
fiscal quarter
, we added 2

marketing agencies in Canada.   With
 exclusive

distribution rights with our
 principal
supplier and having

established North American sales representation

, we
  believe  that

revenues will continue to grow to reach its full potential. This will position

us to be cash flow positive, self-sustaining and ultimately, profitable.



UNCERTAINTIES LIKELY TO HAVE A MATERIAL IMPACT ON SHORT & LONG TERM LIQUIDITY



Uncertainties  and/or  fluctuations  in  the  marketplace  have  an  impact  on Liquidity that cannot be quantified at this time.



INTERNAL AND EXTERNAL SOURCES OF CAPITAL



We have limited assets to sell in order to create short or long term liquidity.  Therefore we are dependant on a combination of external sources for funding and the developing trend to positive net cash flow to maintain liquidity.



We  have  no material commitments requiring capital expenditures.  There are no contracts with third parties that require funds.



We anticipate  the  need  to develop sufficient inventory to meet sales demand.  Short term, we will have to  rely  on  external  sources for funding to support immediate inventory requirements. Long-term, inventory  build-up  is planned to coincide with our ability to generate positive cash flow. Until such time as we have positive cash flow on a monthly basis, the dependence on external  capital will remain.



There  are  no  guarantees  that  we  will be able to raise external capital in sufficient amounts or on terms acceptable  to  us. Our ability to demonstrate a consistent  trend of positive cash flow and profitable  quarters  will  have  a beneficial effect on liquidity.



TRENDS, EVENTS  OR  UNCERTAINTIES THAT HAVE HAD OR THAT ARE REASONABLY EXPECTED

TO HAVE A MATERIAL IMPACT ON  NET SALES OR REVENUES  OR INCOME FROM  CONTINUING

OPERATIONS



OPERATING ACTIVITIES



As revenue grows, so does the potential for trends, events and uncertainties to influence future cash flow and revenue.



Our wholesale activity  is  centered  on  procuring,  importing,  marketing and selling international products within the North American wholesale market.  The current  principal country of supply is Germany, with which we have  negotiated exclusivity  of  product supply and currency rate.  This will secure us a level of uniqueness of products  in  the  marketplace  and a reduction of exposure to foreign currency fluctuations between the Euro and US dollars.









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ELGRANDE.COM, INC.

FORM 10-QSB

For the Quarterly period ended November 30, 2004





Until such time we are able to diversify our source  of  supply  and  range  of product,  interruptions in supply from manufacturers may have a negative impact on operations, as would any major reduction in consumer demand.



Our principal  product  line is subject to two buying seasons.  A Spring/Summer season, which has buying  in the period late January through late April of each year, and a Fall/Winter season which has buying in the period late June through late October.  There are order  lulls  in  the  periods  between the two buying seasons,  specifically  November  through  January and May through  June.   The seasonality of the industry therefore has a  material  effect  on the financial condition or results of operations.



We generated negative cash flow from operating activities for the period  from inception (April 8, 1998) through November 30, 2004.  We realized negative cash flow of $492,120 from operating activities for the six months ending

November 30, 2004 compared to negative cash flow of $394,406 from operating activities for the six months ending November 30 , 2003
..



INVESTING ACTIVITIES



Investing activities for the period  from  inception  through November 30, 2004 consisted primarily of the purchase of inventory and

soft costs associated with the development of our wholesale activities.



FINANCING ACTIVITIES



Since  inception,  we financed operations through proceeds from the issuance of equity and debt securities and loans from shareholders and others.  To date, we raised approximately $7 million from the sale of common stock and have borrowed approximately $2.2 million  from  investors  and  shareholders.  Funds from these sources  have been used as working capital to fund our

wholesale activity
..



During the  quarter ending August 31, 2003, we underwent capital restructuring.  Since then we  have been engaged in a turnaround process that entailed shifting the business focus  to importing and wholesale distribution in the giftware and home decor sector. This  transition  has been extremely successful as evidenced by our increasing sales and revenue. Our Board and management have been focused on carefully examining ways and means of continuing to move ahead. This process included speaking with key suppliers,  large  customers  and  potential funding sources. By August 2003, it had become clear that capital restructuring  was  a necessary  step  to  allow  the  expansion  of  its product base, to sign large customers, to improve its due diligence profile with  key account customers and suppliers, and to conclude negotiations for the funding  necessary  to  support and grow the business. Upon reviewing these facts and on the advice of counsel, the  Board  decided  that  it  was  in our long-term best interest and the best interests of our shareholders to effectuate  a change in our capital structure, and thereby provide us with a more stable base to build upon. In August 2003 we effected a 10 for 1 reverse split of our common stock.















Our financing activities for the six months ended November 30, 2004 provided a net total of $517,612.  Cash at the end of the period was $20,302.















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ELGRANDE.COM, INC.

FORM 10-QSB

For the Quarterly period ended November 30, 2004





ITEM 3. CONTROLS AND PROCEDURES.



QUARTERLY EVALUATION OF THE COMPANY'S DISCLOSURE CONTROLS AND INTERNAL CONTROLS.



As of the close of the period covered by this Quarterly Report on Form 10-QSB, the Company evaluated the effectiveness of the design and operation of its "disclosure controls and procedures" (Disclosure Controls), and its "internal controls and procedures for financial reporting" (Internal Controls).  This evaluation (the Controls Evaluation) was done under the supervision and with the participation of management, including our Chief Executive Officer (CEO). Rules adopted by the SEC require that in this section of the Quarterly Report we present the conclusions of the CEO about the effectiveness of our Disclosure Controls and Internal Controls based on and as of the date of the Controls Evaluation.
  Based upon that evaluation,  the Chief Executive Officer and Principal Financial and  Accounting  Officer  concluded that the Company's disclosure controls and procedures are effective  in  timely  alerting
him to material information relating to the Company required to be included in this Quarterly  Report on Form 10-QSB.  There have been no changes in the  Company's  internal  controls  or in other  factors  which could significantly  affect  internal  controls  subsequent  to the date  the  Company carried out its evaluation.



CEO CERTIFICATIONS.



Appearing immediately following the Signatures section of this Quarterly Report there are two separate forms of "Certifications" of the CEO. The first form of Certification is required in accord with Section 302 of the Sarbanes-Oxley Act of 2002 (the Section 302 Certification).  This section of the Quarterly Report which you are currently reading is the information concerning the Controls Evaluation referred to in the Section 302 Certifications and this information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.



DISCLOSURE CONTROLS AND INTERNAL CONTROLS.



Disclosure Controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 (Exchange Act), such as this Quarterly Report, is recorded, processed, summarized and reported within the time periods specified.



































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ELGRANDE.COM, INC.

FORM 10-QSB

For the Quarterly period ended November 30, 2004





PART II. OTHER INFORMATION.



Item  6.  Exhibits.



No.                  Description

-----------------    ----------------------------------------------------------

31

Certification of Michael
F. Holloran Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith
..

32

Certification of Michael F. Holloran Pursuant to 18 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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SIGNATURES





Pursuant to the requirements  of the  Exchange Act, the  registrant caused  this

report to be signed on its behalf by the undersigned, thereunto duly authorized.







ELGRANDE.COM, INC.





By: /s/ Michael F. Holloran

-------------------------------------

Michael F. Holloran

President and Chief Executive Officer (Principal

Executive and Financial Officer)



Dated:  January 14, 2005















































































14