**U.S. Securities and Exchange CommissionWashington D.C. 20549**

**FORM 10-QSB/A**

**(Mark One)**

**[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934**

For the quarterly period ended March 31, 2004

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

For the transition period from _______ toCommission file number 000-33371

**AMERICA FIRST ASSOCIATES CORPORATION**(Exact name of small business issuer asspecified in its charter)

| Delaware                                                              | 11-324688                                |
|----------------------------------------------------------------------------|------------------------------------------|
| (State or other jurisdiction         ofincorporation or organization) | (IRS Employer        Identification No.) |

   

94 Covert Avenue, Stewart Manor, NY 11530(Address of principal executiveoffices)

(516) 437-0866(Issuer's telephone number)

Indicate by check mark whether the registrant (1) has filed all reportsrequired to be filed by Section 13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject to suchfiling requirements for the past 90 days.

**Yes [X ] No [ ]**

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's class ofcommonstock, as of the latest practicable date: 8,568,200

 

 

**AMERICA FIRST ASSOCIATES CORP.INDEX TO FORM 10-QSB**

| Contents  |  | PagePart I. Financial InformationItem 1: Financial Statements:Statement of Financial Condition as of March 31, 2004 and December      31,2003 Statementof Operations for the three months ended March 31 2004, and 2003Statement of Changes in Shareholders Equity for the three months ended March 31,      2004 Statement of CashFlows for the three months ended March 31, 2004 and 2003Notes to Financial StatementsItem 2: Management's Discussion and Analysis of Financial Conditions andResults of OperationsPart II.Other InformationItem 1: Legal ProceedingsItem 2: Changes in SecuritiesItem 3: Defaults Upon Senior SecuritiesItem 4: Submission of Matters to Vote of Security      HoldersItem 5: Exhibits and Reports on Form 8-K
 

**AMERICA FIRST ASSOCIATES CORP.STATEMENT OF FINANCIAL CONDITIONMARCH 31,2004 AND DECEMBER 31, 2003**

March 31, 2004  Unaudited
December 31, 2003 Audited**Assets**Cash and cash equivalents $ 339,273 $ 302,472 Securities owned marked atmarket  829,738683,667 Deposit with clearing organization - Securities 100,031 100,599 Receivables from clearingorganization 36,853 80,981 Prepaid expenses5,62321,448 Other assets170170 Total Assets$ 1,311,688$ 1,189,337**Liabilities and shareholder's equity**Liabilities:Accounts payable and accrued expenses $ 34,959 $ 35,951 Total Liabilities $34,959 $ 35,951**Commitments**Shareholders' equity:Common stock, $.001 par value, 20,000,000 shares authorized,      8,568,200 shares issued and outstanding as of March 31, 2004 and December 31, 2003 $ 8,568 $8,568 Additional paid-in capital1,996,6801,996,680 Retained earnings (Deficit)( 728,519)( 851,862) Total shareholders' equity1,276,7291,153,386 Total liabilities and shareholders' equity $ 1,311,688 $ 1,189,337
The notes are an integral part of the Financial Statements

 

**AMERICA FIRST ASSOCIATES CORP.STATEMENT OF OPERATIONSFOR THE THREE MONTHSENDED MARCH 31, 2004 AND 2003**
Revenues:2004      Unaudited2003      Unaudited Commissions$  195,543$ 110,141Principal transactions136,628(26,114)Interest and other income4,1995,574Total revenues$ 336,370$ 89,601Expenses:Consulting and Professional Fees5,2615,000Employee compensation and benefits95,66043,113Clearing charges45,21850,036Communications and data processing.3,7463,342Business development7502,808Occupancy costs15,00012,700Regulatory and registration fees13,65016,975Depreciation and amortization--540Travel and entertainment15,8922,627Other expenses17,8505,314Total expenses$ 213,027$ 142,455Income (loss) before income taxes123,343
(52,854)
Provision for income taxes 49,000 1,762 Tax benefit of loss carryforward
 (49,000)
 --Net income (loss)$ 123,343 (54,616)Earnings Per Share Basic and Dilutive Weighted Average Common SharesOutstanding8,568,2009,018,000
The notes are an integral part of the Financial Statements

 

**AMERICA FIRST ASSOCIATES CORP.STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITYFOR THE THREE MONTHS ENDED MARCH 31, 2004**
CommonStockCommonStock Paid-in CapitalRetainedEarningsShareholder'sEquityBalance, December 31, 2003 8,568,200 $ 8,568 $ 1,996,680$ (851,862)$ 1,153,386 Net income (loss)                                                           123,343      123,343 Balance, March 31,2004 8,568,200 $ 8,568 $ 1,996,680$ ( 728,519)$ 1,276,729
The notes are an integral part of the Financial Statements

 

**AMERICA FIRST ASSOCIATES CORP.STATEMENT OF CASH FLOWSFOR THE THREE MONTHSENDED MARCH 31, 2004 AND 2003**
March 31, 2004       Unaudited March 31, 2003       UnauditedCash Flows from Operating ActivitiesNet income (loss) $ 123,343 $ (54,616) Adjustments to reconcile net income(loss) to net cash used in operating activities:Depreciation and amortization --  540 Changes in assets and liabilities:(Increase) Decrease in operating assets:Marketable Securities (146,071) 34,537 Prepaid expenses 15,826  14,612 Otherassets -- 5,175 Due to/from clearing organization-net 44,128 -- Deposit withclearing organization 567 -- Increase (decrease) in operating liabilities:Accounts payable and accrued expenses (992) (34,941)Net cash provided by operating activities 36,801 (34,693)Net increase in cash 36,801 (34,693)Cash and cash equivalents Beginning 302,472 668,339 Cash and cash equivalentsEnding $ 339,273 $ 633,646
The notes are an integral part of the Financial Statements

 

AMERICA FIRST ASSOCIATES CORP.NOTES TO FINANCIAL STATEMENTS

PART I. FINANCIAL INFORMATION (CONTINUED)

***NOTE 1. ORGANIZATION AND NATURE OF BUSINESS***

America First Associates Corp. (the Company) is a Delaware Corporation thatwas formed in 1995 with one office located at 94 Covert Ave., Stewart Manor, NY11530. There is no public trading market for the Company's common stock and itis not listed on any exchange. The Company plans to apply for listing on the OTCBulletin Board and anticipates trading by fiscal year ending 2004.

The Company is engaged in a single line of business as a securitiesbroker-dealer, which comprises several classes of services, including principaltransactions, agency transactions, investment banking, investment advisory, andventure capital activities. The Company principally engages in executing generalsecurities transactions on behalf of its clients.

The Company operates principally under a clearance agreement with anotherbroker-dealer organization. Under the agreement, the contracted broker-dealerassumes and maintains the Company's customer accounts and performs custodialfunctions regarding customer securities. The Company is responsible for paymentof certain customer accounts (unsecured debits) as defined in the agreement. TheCompany also provides on-line brokerage services for its customers.

The Company transacts its business with customers located throughout theUnited States.

***NOTE 2. SIGNIFICANT ACCOUNTING POLICIES***

**Use of Estimates in the Preparation of Financial Statements **

 The preparationof financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the financial statements and the reported amountsof revenues and expenses during the reporting period. Actual results coulddiffer from those estimates.

**AMERICA FIRST ASSOCIATES CORPORATIONNOTES TO THE FINANCIAL STATEMENT**

PART I. FINANCIAL INFORMATION (CONTINUED)

***NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued)***

**Cash and cash equivalents**

For purposes of the Statement of Cash Flow, the Company has defined cashequivalents as highly liquid investments, with original maturities of less thanninety days, that are not held for sale in the ordinary course of business. TheCompany maintains cash balances at a financial institution. Accounts at theinstitution are insured by the Federal Deposit Insurance Corporation up to$100,000.

**Financial Instruments**

As of December 31, 2003, the carrying value of the Company' s financialinstruments including cash, cash equivalents and cash deposits with clearingorganization, receivables, accounts payable and accrued expenses approximatetheir fair values, based on the short-term maturities of these instruments.

**Off-Balance-Sheet Risk and Concentration of Credit Risk **

 The Company, as anintroducing broker, clears all transactions with and for customers on a fullydisclosed basis with a clearing broker and promptly transmits all customer fundsand securities to the clearing broker who carries all of the accounts of suchcustomers. These activities may expose the Company to off-balance-sheet risk inthe event that the customer and/or clearing broker is unable to fulfill itsobligations. The Company does not maintain margin accounts for its customers;and, therefore there were no excess margin securities. The Company seeks tocontrol off-balance-sheet risk by monitoring the market value of securities heldin compliance with regulatory and internal guidelines. The Company, as a part ofits trading activities, assumes short positions in its inventory. Theestablishment of short positions exposes the Company to off-balance-sheet riskin the event prices increase, as the Company may be obligated to acquire thesecurities at prevailing market prices. 

**Securities Transactions Revenues**

Securities transactions and the related revenue and expenses are recorded on asettlement date basis. The recording of securities transactions on a trade datebasis was considered, and the difference was deemed immaterial.

**AMERICA FIRST ASSOCIATES CORPORATIONNOTES TO THE FINANCIAL STATEMENT**

PART I. FINANCIAL INFORMATION (CONTINUED)

***NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued)***

**Securities Transactions Revenues (Continued)**

Customers' securities and commodities transactions are reported on asettlement date basis with related commission income and expenses reported on atrade date basis. Accounts receivable and payable for securities transactionsthat have not reached their contractual settlement date are recorded net on thestatement of financial condition. All accounts receivable as of December 31,2003 and March 31, 2004 are receivables from the clearinghouse organization.

Marketable securities are valued at market value, and securities not readilymarketable are valued at fair value as determined by management.

**Revenue Recognition**

*Investment Banking*

Investment banking revenues include gains, losses, and fees, net of syndicateexpenses, arising from securities offerings in which the Company acts as anunderwriter or agent. Revenues also include fees earned from providingmerger-and-acquisition and financial restructuring advisory services. Investmentbanking management fees are recorded on offering date, sales concessions onsettlement date, and underwriting fees at the time the underwriting is completedand the income is reasonably determinable.

*Commissions Income and Expenses*

Commissions and related clearing expenses are recorded on a trade-date basisas securities transactions occur.

*Investment Advisory Income*

Investment advisory fees when earned are generally received quarterly but arerecognized as earned on a pro rata basis over the term of the contract.

*Interest Income*

Interest income is recorded on the accrual basis and dividend income isrecognized on the next dividend date.

AMERICA FIRST ASSOCIATES CORPORATIONNOTES TO THE FINANCIAL STATEMENT

PART I. FINANCIAL INFORMATION (CONTINUED)

***NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued)***

**Revenue Recognition (continued)**

*Principal Transactions*

Principal transactions consist of the Company's trading gains and losses on anet basis.

**Income Taxes**

The Company accounts for income taxes under SFAS No. 109, Accounting forIncome Taxes, which requires an asset and liability approach to financialaccounting and reporting for income taxes. Deferred income tax assets andliabilities are computed annually for differences between the financialstatement and tax bases of assets and liabilities that will result in taxable ordeductible amounts in the future based on enacted tax laws and rates applicableto the periods in which the differences are expected to affect taxable income.Valuation allowances are established when necessary to reduce deferred taxassets to the amount expected to be realized. Income tax expense in the taxpayable or refundable for the period plus or minus the change during the periodin deferred tax assets and liabilities. Deferred tax expenses or benefits arerecognized in the financial statements for the changes in deferred taxliabilities or assets between the years.

**Depreciation**

Depreciation is provided on a straight-line basis using estimated usefullives of five to ten years. Leasehold improvements are amortized over the lesserof the economic useful life of the improvement or the term of the lease.
March 31,         2004 December 31,         2003Office Equipment  $ 8,390 $ 8,390  Accumulated Depreciation  8,390 ( 8,390)$       -- $       --
The Company wrote off fully depreciated assets in the amount of $19,183 in2003 as a result of its moving offices. Depreciation expenses were $540 for thequarter ending March 31, 2003 and $0 for the quarter ending March 31, 2004.

 

**AMERICA FIRST ASSOCIATES CORPORATIONNOTES TO THE FINANCIAL STATEMENT**

PART I. FINANCIAL INFORMATION (CONTINUED)

***NOTE 3. CONCENTRATIONS OF CREDIT RISK***

The Company is engaged in various trading and brokerage activities withcounter parties, primarily broker-dealers, banks, and other financialinstitutions. In the event counter parties do not fulfill their obligations, theCompany may be exposed to risk. The risk of default depends on thecreditworthiness of the counter party or issue of the instrument. It is theCompany's policy to review, as necessary, the credit standing of each counterparty.

***NOTE 4. LEASE OBLIGATIONS TO PRINCIPAL SHAREHOLDER***

On April 2, 2003 the principal shareholder and officer of the Companypurchased the office building currently occupied by the Company, located at 94Covert Avenue, Stewart Manor, NY. The shareholder used personal funds and abonus of $230,000 received from the Company in partial payment for theacquisition cost. The bonus was later rescinded and returned, to provide theCompany with additional working capital.

The Company has leased the office space from the shareholder for a term offive years, with an option to extend the lease for additional five years. Thelease began on April 2, 2003 and covers approximately 3,700 square feet.Aggregate annual future rentals for office space at March 31, 2004, areapproximately as listed below:
2004 $ 45,000 2005 60,000 2006 60,000 2007 60,000 2008    15,000$ 240,000
Rent expense for March 31, 2004 and 2003 were $15,000 and $12,700,respectively.

 

**AMERICA FIRST ASSOCIATES CORPORATIONNOTES TO THE FINANCIAL STATEMENT**

PART I. FINANCIAL INFORMATION (CONTINUED)

***NOTE 5. COMMITMENTS AND CONTINGENCIES***

On April 2, 1997, the Company entered an agreement with U.S. Clearing Corp. (USCC),a registered broker-dealer and a member of New York Stock Exchange to provide afacility for its customers to buy and sell securities. All Company's customerand proprietary accounts whether cash, margin or delivery are placed with andcleared by the USCC.

The Company is solely responsible for all compliance, supervisory, andinternal audit functions as they relate to its officers, employees, andassociates. The Company is responsible for supervisory review of any accountsover which its officers, employees, or agents have discretionary authority. TheNYSE, NASD, and SEC require the Company to be adequately knowledgeable regardingits customers and their investment objectives.

The USCC is responsible for complying with the NASD's Rules of Fair Practice,the Rules of Option Trading, and rules of other examining authorities.

The USCC has the custody of all securities in the accounts and registers themunder the contract. For the securities that are traded over the counter, theUSCC assumes the risk for the dealer with whom it executes transactions.

Under the agreement, the Company has financial liability under the followingconditions:
1.In the case of purchases or sales of securities in an account, until theclient has satisfactorily made settlement with the necessary cleared funds orsecurities. 2. Loss incurred in transactions with firms with which it deals on aprincipal basis. 3. Customer transactions and maintenance margin calls, untilactual and complete payment is made to the USCC. 4.  Losses incurred inconnection with any check-writing privilege or debit or credit card servicesextended by a provider to the Company's customers introduced to the USCC.
In order to participate and takedown shares in an underwriting, the Companyas a correspondent is required to have $250,000 in net capital and the CompanyGood Faith Deposit must be no less than 30% of its commitments.

***NOTE 6. REPURCHASE OF SHARES***

On August 21, 2003 the Company purchased from three of its shareholders449,800 shares for $125,000, or $.28 per share. The three shareholders hadoriginally paid $449,800 for the shares or $1 per share. The shares have beenretired. 

**AMERICA FIRST ASSOCIATES CORPORATION  NOTES TO THE FINANCIAL STATEMENT**

PART I. FINANCIAL INFORMATION (CONTINUED)

***NOTE 7. PENSION PLAN***

The Company has a defined contribution plan under section 401(K) of theInternal Revenue Code. The plan covers substantially all its employees, andprovides for participants to defer salary, up to statutory limitations. TheCompany is not required to make a matching contribution.

***NOTE 8. NET CAPITAL REQUIREMENTS***

The Company is subject to the Securities and Exchange Commission Uniform NetCapital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum netcapital and requires that the ratio of aggregate indebtedness to net capital,both as defined, shall not exceed 15 to 1 (and the rule of the"applicable" exchange also provides that equity capital may not bewithdrawn or cash dividends paid if the resulting net capital ratio would exceed10 to 1).

The Company is also subject to the Commodity Futures Trading Commission's (CFTC's)minimum financial requirements (Regulation 1.17), which require that the Companymaintain net capital, as defined, equal to 4 percent of customer funds requiredto be segregated pursuant to the Commodity Exchange Act, less the market valueof certain commodity options, all as defined.

***NOTE 9. INCOME TAXES***

At December 31, 2003, the Company has net operating loss carryforwards ofapproximately $897,100 which expire in 2022. These net operating losscarryforwards may be used to offset future taxable income.

At December 31, 2003, the Company has recorded a deferred tax asset of$356,000 resulting primarily from net operating loss carryforwards. Thevaluation allowance of $356,000 has been recorded against the deferred tax assetsince it is more likely than not that it will not be realized. The valuationallowance of $433,000, for 2002, was reduced by $79,000 to recognize the taxbenefit of loss carryforward in 2003.

A reconciliation of income tax at the federal statutory income tax rate tototal income taxes is as follows:
2004 2003  Computed at the federal Statutory rate of 34% $ 42,000 $ 66,000State and local tax (benefit) 7,000 13,000 Benefit of Carryover (49,000) (79,000)$              -- $              -- 
 

**AMERICA FIRST ASSOCIATES CORPORATIONNOTES TO THE FINANCIALSTATEMENT**

PART I. FINANCIAL INFORMATION (CONTINUED)

***NOTE 10. BASIC AND DILUTED EARNINGS PER SHARE***

Basic earnings per share of common stock were computed by dividing incomeavailable to common stockholders (net income, less the preferred stock dividendrequirement), by the weighted average number of common shares outstanding forthe year. Diluted earnings per share are not presented because the Company hasissued no dilutive potential common shares. Diluted earnings per share is thesame as the basic earnings per share because the Company has issued no dilutivepotential securities.

**ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS**

The following discussion of the financial condition and results of financialcondition and the results of operation of the Company should be read inconjunction with the dated Financial Statements and the related notes and otherfinancial information included in the Company's Form 10-SB filed in April 2004.This discussion contains forward-looking statements that involve risks anduncertainties. The Company's actual results may differ materially from thoseanticipated in these forward-looking statements as a result of certain factors.

*Overview*

America First Associates Corporation (The "Company") has conductedits operations as a fully disclosed brokerage firm registered with theSecurities and Exchange Commission, the National Association of SecuritiesDealers and 50 state securities divisions including the District of Columbia andPuerto Rico. The Company is a provider of cost-effective, full-service onlinefinancial service targeting the rapid growth momentum of individual investorswho utilize the Internet for their personal investment objectives. The Companyprovides customers the ability to buy and sell securities, mutual funds, bondsand other investment financial instruments as well as providing clients with 24hour account access and real-time electronic information on stocks, marketindices, analysts' research and news. The Company plans to continue to providequality service to our current customers while increasing brand awareness andcustomer loyalty. Management's strategy is to expand the Company's business andoperations by strategically using the internet and other advertising outlets toefficiently market and distribute our services to potential customers and buildbrand awareness on a national level to increase our customer base.

**AMERICA FIRST ASSOCIATES CORPORATION**

PART I. FINANCIAL INFORMATION (CONTINUED)

**ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS (continued)**

*Results of Operations*

**Fiscal Year Ended March 31, 2004, compared to Fiscal Year Ended March 31,2003**

Total revenue for the quarter ended March 31, 2004, were $336,370, anincrease of $246,769 or 275% as compared to revenues of $89,601 for the quarterended March 31, 2003. The increase in total revenue is attributed to thesignificant increase in online trading and gains on investments. Revenues fromcommissions increased by $85,402 or 78%, to $195,543 for the quarter year endedMarch 31, 2004 from $110,141 for the quarter ended March 31, 2003 due primarilyto an increase in overall trading activity by online traders. Revenues fromprincipal transactions increased to $136,628 for the quarter ended March 31,2004 from a loss of $26,114 for the quarter ended March 31, 2003 an increase of623%. Interest and other income decreased to $4,199 for the quarter ended March31, 2004 from $5,574 for the quarter ended March 31, 2003 due to a decrease inlower interest paid on U.S. Obligations purchased by the firm.

Total expenses increased by $70,572, or 50% to $213,027 for the quarter endedMarch 31, 2004 from $142,455 for the quarter ended March 31, 2003. Employeecompensation and benefits increased by 122%, to $95,660 for the quarter endedMarch 31, 2004 from $43,113 for the quarter ended March 31, 2003. Salariesincreased based on increased commissions and trading profits earned by AFAC. Aswe continue to grow we will need additional employees to service our growingcustomer base; therefore we anticipate a proportionate increase in employeecompensation and benefit expenses. Clearing charges represent payments to ourclearing firm who facilitate our clients' transactions. Such expenses decreasedby 10%, to $45,218 for the quarter ended March 31, 2004 from $50,036 for thequarter ended March 31, 2003.

Consulting and professional fees increased to $5,261 for the quarter endedMarch 31, 2004 from $5,000 for the quarter ended March 31, 2003.

Communications and data processing expense increased to $3,746 for thequarter ended March 31, 2004 from $3,342 for quarter ended March 31, 2003.

Business development costs consist of advertising costs which have mostlybeen for online and print advertising to obtain new clients. These expensesdecreased 73% to $750 for the quarter ended March 31, 2004 from $2,808 for thequarter ended March 31, 2003.

**AMERICA FIRST ASSOCIATES CORPORATION**

PART I. FINANCIAL INFORMATION (CONTINUED)

**ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS (continued)**

Occupancy costs increased to $15,000 for the quarter ended March 31, 2004from $12,700 for the quarter ended March 31, 2003. Rent increased because of amove from an 1,800 sq ft. office in NYC to Long Island where the Company nowleases store front office space with approximately 3700 sq. ft on two floors.

Regulatory and Registration fees decreased to $13,650 for the quarter endedMarch 31, 2004 from $16,975 for the quarter ended March 31, 2003. We anticipatean increase in regulatory and registration fees due to the expected need ofhiring additional series 7 registered representatives to service an increasedcustomer base.

Depreciation and Amortization costs for the quarter ended March 31, 2004 and2003 were $0 and $540. The need for additional computers is dependant on thefirm's growth. Therefore, as we continue to expand and purchase additionalhardware, the Company anticipates that these costs will increase.

For the first quarter of 2003 we were concentrating on setting up a newoffice and moving to our Long Island facility. There was no activity to promoteinvestment banking business. In 2004 that activity began again and thereforethere was a 505% increase in travel and entertainment from $2,627 to $15,892.

Other expenses which include office supplies and expenses increased to$17,850 for the quarter ended March 31, 2004 from $5,314 for the quarter endedMarch 31, 2003.

As a result of the foregoing, our net income amounted to $123,343 for thequarter ended March 31, 2004 as compared to a net loss of $54,616 for thequarter ended March 31, 2003.

**ITEM 3. DISCLOSURE CONTROLS AND PROCEDURES**

(a) Evaluation of disclosure controls and procedures

For purposes of rule 13a-14 and 15d-14 of the Securities Exchange Act of 1934("Exchange Act"), the term "disclosure controls andprocedures" refers to the controls and other procedures of a company thatare designed to ensure that information required to be disclosed by a company inthe reports that it files under the Exchange Act is recorded, processed,summarized and reported within required time periods. Within 90 days prior tothe date of this report ("Evaluation Date"), the Company carried outan evaluation under the supervision and with the participation of the Company'sChief Executive Officer and its Chief Financial Officer of the effectiveness ofthe design and operation of its disclosure controls and procedures.

**AMERICA FIRST ASSOCIATES CORPORATION**

PART I. FINANCIAL INFORMATION (CONTINUED)

**ITEM 3. DISCLOSURE CONTROLS AND PROCEDURES (CONTINUED)**

Based on that evaluation, the Company's Chief Executive Officer and ChiefFinancial Officer have concluded that, as of the Evaluation Date, such controlsand procedures were effective at ensuring that required information will bedisclosed on a timely basis in our periodic reports filed under and pursuant tothe Exchange Act.

(b) Changes in internal controls

There were no significant changes to our internal controls or in otherfactors that could significantly affect our internal controls subsequent to theEvaluation Date.

**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

See Form 10-SB for the year ended December 31, 2003 filed in March 2004.

**ITEM 2. CHANGES IN SECURITIES**

There have been no changes in the instruments defining the rights or rightsevidenced by any class of registered securities.

There have been no dividends declared.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None

**ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS**

There has been no submission of a matter to vote by security holders in 2003or 2004.

**ITEM 5. OTHER INFORMATION**

Exhibits

(a) Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002. (b)Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002.

Report on Form 8-K

None

**SIGNATURES**

In accordance with Section 12 of the Securities Exchange Act of 1934, theRegistrant caused this Form 10SB to its Registration Statement to be signed bythe undersigned, thereunto duly authorized.
**AMERICA FIRST ASSOCIATES CORP**.      
  Date:  July 17, 2004             By: /s/ Joseph Ricupero          
Joseph Ricupero, Chief Executive Officer, Financial Operations Officer |
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