UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB  (Mark One)  S QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE OF 1934  For the quarterly period ended June 30, 2007  £ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT  For the transition period from __________________ to __________________  Commission file number: 000-32047  HAMPTONS LUXURY HOMES, INC.(Name of Small Business Issuer in Its Charter)Delaware11-3320705(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)PO Box 871, 367 Butter Lane
Bridgehampton, New York11932(Address of Principal Executive Offices)(Zip Code)  Issuers Telephone Number: (631) 537-1600  Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes S   No £  Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act)      Yes  £        No S  As of July 31, 2007, there were 57,971,650 shares of the issuer’s common equity outstanding.  Transitional Small Business Disclosure Format (Check one):  Yes £  No S        Table of Contents PagePart I        FINANCIAL INFORMATION3Item 1.     Unaudited Consolidated Financial Statements3Consolidated Balance Sheet – June 30, 20073Consolidated Statement of Operations for the six months ended June 30, 2007 and 20064Consolidated Statement of Cash Flows for the six months ended June 30, 2007 and 20065Notes to Unaudited Consolidated Financial Statements6,7Item 2.      Managements Discussion and Analysis or Plan of Operation9Item 3.      Controls and Procedures18Part II       OTHER INFORMATION19Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds19Item 6.      Exhibits19  2   PART I FINANCIAL INFORMATION  Item 1.   Unaudited Consolidated Financial Statements  HAMPTONS LUXURY HOMES, INC.  AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETJUNE 30, 2007(UNAUDITED)ASSETSCurrent Assets:Cash$153,749Contract receivables842,667Prepaid expenses and other current assets39,228Total current assets1,035,644Property and equipment, net19,874Advances to and investment in joint venture36,189Other assets16,600Total Assets$1,108,307LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities:Accounts payable361,099Due to affiliate10,840Accrued expenses and other current liabilities18,122Taxes payable63,000Total current liabilities453,061Stockholders' EquityCommon stock, par value $0.0001, 200,000,000 shares authorized,57,971,650 shares issued and outstanding5,797Additional paid-in capital526,413Retained earnings123,036Total Stockholders' Equity655,246Total Liabilities and Stockholders' Equity$1,108,307  See notes to unaudited consolidated financial statements.  3     HAMPTONS LUXURY HOMES, INC.  AND SUBSIDIARIESCONSOLIDATED STATEMENT OF OPERATIONS(UNAUDITED)For the three monthsFor the six monthsended June 30,ended June 30,2007200620072006Contract revenues$1,863,236$1,976,607$2,841,975$2,993,175Contract costs1,224,4321,333,0381,838,5812,020,516Gross profit638,804643,5691,003,394972,659Selling, general andadministrative expenses393,616565,235684,080657,884Income from operationsbefore other income (expense)245,18878,334319,314314,775Other income (expense):Rental income11,7039,47521,81318,950Interest income (expense), net(6,695)(11,904)(16,667)(23,701)Equity in income frominvestment in joint venture-7,008-33,853Income before income taxes250,19682,913324,460343,877Income taxes63,00032,60063,00057,755Net income$187,196$50,313$261,460$286,122Basic and diluted earningsper common share$*$*$*$*Basic and diluted weightedaverage number of commonshares outstanding57,971,65059,327,76157,971,65059,198,934* Less than $0.01 per share  See notes to unaudited consolidated financial statements.   4    HAMPTONS LUXURY HOMES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENT OF CASH FLOWSFOR THE SIX MONTHS ENDEDJUNE 30, 2007 AND 2006
(UNAUDITED)20072006Net Income$261,460$286,122Adjustments to reconcile net income to netcash (used in) provided by operating activities:Equity in income from investment in joint venture-(33,853)Depreciation and amortization27,6536,216Amortization of deferred compensation-42,500Stock-based compensation239,839Changes in assets and liabilities affecting operations:Contract receivables(734,882)(676,014)Prepaid expenses and other current assets(3,586)(20,000)Other assets(16,600)- 0 -Accounts payable84,178145,775Accrued expenses and other current liabilities(188)55,659Income taxes payable46,40057,755Net cash (used in) provided by operating activities(335,565)103,999Cash flows from investing activities:Advances to joint venture-(9,484)Purchase of property and equipment(14,710)(1,565)Net cash used in investing activities(14,710)(11,049)Cash flows from financing activities:Repayments of mortgage payable(17,183)(19,158)Due to affiliates10,840Dividends-(300,000)Net cash used in financing activities(6,343)(319,158)Net decrease in cash(356,618)(226,208)Cash, beginning of period510,367426,481Cash, end of period$153,749$200,273Supplemental disclosure of cash flow information:Interest expense$19,755$23,700Taxes paid$16,900$-Noncash TransactionsDue from stockholders applied to dividends$$200,000***   See additional noncash transaction in footnote 4. See notes to unaudited consolidated financial statements.  5   HAMPTONS LUXURY HOMES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  NOTE 1 - ORGANIZATION  Hamptons Luxury Homes, Inc. (the Company or HLH) was incorporated as Southampton Partners, Inc. in the State of Delaware on May 15, 1996 and, in October 2003, changed its name to Hamptons Luxury Homes, Inc. The Company was inactive from March 1, 1998 until December 2003. In December 2003, the Company commenced operations as a builder of single-family homes, provider of construction consulting services and a distributor of building materials in the Hamptons area of Long Island, New York.  In April 2005, the Company formed a wholly owned subsidiary, DWD Construction Services, Inc., to perform construction supervision and advisory services in connection with the construction of homes and business development of major commercial projects.  On April 7, 2006, the Company acquired all the outstanding shares of Telemark, Inc. (TI) from the majority shareholders (officers and directors) of the Company in exchange for 25,000,000 shares of common stock. Following the acquisition, these shareholders owned approximately 79% of the outstanding shares of the Company.  TI was incorporated in the state of New York on December 7, 1998. TI constructs, renovates and restores luxury homes and commercial property and manages construction. Through TIs wholly owned subsidiaries, Telemark Service and Maintenance, Inc. and Bridgehampton Lumber Corp., TI provides ongoing property management and maintenance services, and sells building material and hardware.  The acquisition has been recorded on the purchase method of accounting at historical amounts as the Company and TI were under common control. The consolidated financial statements have been presented as if the acquisition had occurred on January 1, 2005.  In connection with the acquisition, the Company issued a shareholder 500,000 shares of common stock of the Company under an antidilution agreement, which have been recorded at par value.  The acquisition provided for the spin-off of three inactive subsidiaries of TI, prior to the acquisition, and as these financial statements have been prepared as if the acquisition had occurred as of January 1, 2005, the former subsidiaries have not been included.  Further, the acquisition contractually provided for the land and building to be transferred to the shareholders of TI, prior to the acquisition.  (Note 4)  NOTE 2 SIGNIFICANT ACCOUNTING POLICIES  Basis of Presentation  The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated.  The accompanying interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the rules and regulations under Regulation S-B of the Securities Exchange Commission for Form 10-QSB. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statement presentation. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to present fairly the consolidated financial position, results of the operations and cash flows for the interim periods, have been included. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements of Hamptons Luxury Homes, Inc. together with the Companys Plan of Operations and Managements Discussion and Analysis in the Companys Form 10-KSB for the year ended December 31, 2006. Interim results are not necessarily indicative of the results for a full year.  6    Estimates  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the 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.  New Accounting Pronouncements  Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.  NOTE 3 INCOME TAXES  Effective January 1, 2007, the Company adopted the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109 (FIN 48).  FIN 48 clarifies the accounting for uncertainty in income taxes recognized in the Companys financial statements in accordance with FASB Statement 109, Accounting for Income Taxes, and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  Management has evaluated and concluded that there are no significant uncertain tax positions requiring recognition in the Companys financial statements as of January 1, 2007.  The Companys policy is to classify assessments, if any, for tax related interest as interest expenses and penalties as general and administrative expenses.  NOTE 4  TRANSFER OF LAND AND BUILDING  On June 8, 2007, the land and building were transferred to a limited liability company owned by the principal stockholders of the Company to complete the Companys obligations in connection with the acquisition of Telemark.  The existing mortgage was satisfied by the limited liability company.  The transfer recorded as a capital contribution of $172,339 as the carry value of the assets was less than the mortgage, as follows:  Land and Building, net$297,669Other assets76,808Mortgage(546,816)$(172,339)  The Company is committed under a non-cancellable lease to the limited liability company for office and warehouse space through April 6, 2008 for annual rents of $199,200.  Rent expense for the six months ended June 30, 2007 was $16,600.   7   FORWARD-LOOKING STATEMENTS  This Quarterly Report on Form 10-QSB contains forward-looking statements (as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934 (the Exchange Act).  To the extent that any statements made in this Report contain information that is not historical, these statements are essentially forward-looking.  Forward-looking statements can be identified by the use of words such as expects, plans, will, may, anticipates, believes, should, intends, estimates, and other words of similar meaning.  These statements are subject to risks and uncertainties that cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements.  Such risks and uncertainties include, without limitation, our ability to raise capital to finance our growth, the ability to manage growth, profitability and the marketability of our services, general economic and business conditions, the impact of developments in the real estate and home construction and competition in the industry in which we engage, our expectations and estimates concerning future financial performance and financing plans, adverse results of any legal proceedings, the impact of current, pending or future legislation and regulation on the construction industry, our ability to enter into acceptable relationships with one or more suppliers, vendors or contractors of an acceptable quality on a cost-effective basis, the volatility of our operating results and financial condition, our ability to attract or retain qualified senior management personnel, and other risks detailed from time to time in our filings with the SEC.  We do not undertake any obligation to publicly update any forward-looking statements.  As a result, you should not place undue reliance on these forward-looking statements.   Item 2.   Managements Discussion and Analysis or Plan of Operation.  The following discussion of our plan of operation should be read in conjunction with our Financial Statements and Notes thereto appearing elsewhere in this document.  Overview  The financial statements presented are those of Hamptons Luxury Homes, Inc., incorporated in May 1996 in the state of Delaware as Southampton Partners, Inc. In October 2003, the Company changed its name to Hamptons Luxury Homes, Inc.  The Company was inactive from 1998 until December 2003 when it commenced operations as a builder of single family homes, provider of construction consulting services and distributor of building materials in the Hamptons area of Long Island, New York.  Hamptons Luxury Homes (www.hlxhomes.com) is a regional construction services company that builds and maintains custom homes, luxury vacation homes and ultra-luxury estate homes with operations in Bridgehampton, New York. The Companys wholly owned subsidiary, Telemark Inc. (Telemark or TI) is a nationally recognized and award winning ultra-luxury homebuilder. Telemark was awarded Custom Builder of the Year by Custom Builder Magazine in 1998. We believe the Company maintains an industry leading reputation for construction of luxury vacation homes from foundation to completion, with values ranging up to $50 million.  In addition, we believe that Hamptons Luxury Homes combines the most innovative methods of ultra-high quality materials with superb old-world craftsmanship to create the ultimate in luxury homes with outstanding aesthetic appeal.  Already a recognized and well-established entity in the exclusive environs of the Hamptons, New York (through its Telemark subsidiaries), we anticipate expansion into similar luxury markets in the United States.  Merger  The acquisition of Telemark by HLH has been accounted for as an exchange of shares between two entities under common control for financial accounting purposes.  SFAS No. 141 requires that the acquisition be accounted for at the carrying amounts in the account of Telemark.  Accordingly, in 2006, we are, for the effects of the merger, using the carrying amounts.  The assets, liabilities and shareholders equity items of the entities under reorganization are booked in the combined entity based on their carrying amounts, without recognizing any new positive or negative goodwill.  In addition, for comparative purposes, we are required to show the financial statements of all periods presented, including those with respect to periods prior to the merger, as if the merger had occurred at the beginning of the first period presented.  8    Telemark, a construction company based in Bridgehampton, New York was founded in 1978 by Frank Dalene and Hugo Dalene, (Franks father) as Telemark Construction, Inc. Telemark manages and constructs custom homes, luxury vacation homes, ultra-luxury estate homes, renovations, historical restorations and commercial construction. Through its subsidiaries, it provides ongoing construction services, property management, maintenance, service, and supplies building materials.  The Company performs its construction services through five wholly-owned subsidiaries and one joint venture. The wholly-owned subsidiaries are: Telemark, which manages the construction of and constructs custom homes, luxury vacation homes, ultra-luxury estate homes renovations of homes, performs historical restorations, and commercial construction; Telemark Service and Maintenance, Inc. (TSM), which provides ongoing property management, maintenance and service; Bridgehampton Lumber Corp. (Bridgehampton), which supplies building material and is an independent dealer of The Barden & Robeson Corporation (Barden).  Barden is a custom panelized manufacturer that supplies materials for the housing and light industrial industries; DWD Construction Services, Inc. (DWD), which performs construction administration and advisory services in connection with the construction of homes and business development of major commercial projects; and East Coast Properties, Inc. (ECP), which is currently inactive however we plan to become active when we enter into joint ventures with property owners for the development and sale of new or renovated custom home. Telemark is a fifty percent partner in a joint venture known as Architectural Woodwork of the Hamptons, LLC, which manufacturers and installs custom millwork, custom cabinetry, custom built-ins and furniture. Goals of the Company  The Companys immediate goal is to increase revenues and income through the organic growth of its current operating subsidiaries by increasing its efforts in marketing and sales by implementing a new unique sales referral program targeted to real estate brokers and sales agents. Our focus is also to increase the recurring revenue stream in the service and maintenance subsidiary by developing and implementing a new unique property maintenance program.  It is the goal of the Company to expand and create an integrated construction service company that concentrates on the luxury vacation estate segment of the real estate industry and develops its business model through the acquisition of companies that will become wholly-owned subsidiaries in the areas of, without limitation, building custom homes, luxury vacation homes, ultra-luxury vacation estates, renovation work, restoration work, property maintenance, property management, service contractors, trade contractors and real estate development.  It is the goal of the Company to develop the model of an integrated construction services in its local market in the Hamptons and then expand to the other 66 vacation home markets it has identified that are similar to the Hamptons market. There are currently twelve states that have over one hundred thousand homes that are classified as vacation homes, with another eight states that have over fifty thousand homes classified as vacation homes. Within these states, and within five other states, there are approximately sixty-six markets that cater to individuals whose wealth places them in the top one percent of personal wealth in the world. Preliminary research indicates the top twelve markets for expansion are:  1. Palm Beach, Florida 2. Singer Island, Florida 3. Cape Cod, Massachusetts 4. Hyannis, Massachusetts 5. Marthas Vineyard, Massachusetts 6. Palm Springs, California 7. Lake Norman, North Carolina 8. Kennebunkport, Maine 9. Jackson Hole, Wyoming 10. Telluride, Colorado 11. Aspen, Colorado 12. Vail, Colorado  9    We plan to leverage our relationships with the national real estate firms located in the Hamptons to assist us to expand in these markets since they are currently present in these locations. The real estate firms will assist us in identifying a local luxury homebuilder in the target market that has twenty five years experience, an excellent reputation for quality workmanship such as Telemark and we will acquire the homebuilder to enter that market.  We believe the goals are achievable through a unique sales program, a unique property maintenance program and a roll-up strategy we have developed and we are beginning to implement. About The Homes We Build  We categorize the homes consistent with how the real estate industry categorizes the real estate market. The real estate market is generally divided into the following categories: lower end market with sales prices up to $3,000,000; the middle market with sales prices between $3,000,000 and $8,000,000; and the high end market with sales prices of $8,000,000 and higher with an average sales price of $25,000,000.  Our Custom Home is typically built for local professionals and business people or entry level vacation home owners. We believe that we are able to achieve affordable construction costs through our dealership with Barden Homes that provides efficiencies of panelized construction, allows for custom design and maintains our reputation for quality.  Our Luxury Vacation Home is an architecturally custom designed home that averages 6,000 square feet with a pool, pool house and tennis court, is situated on two to five acres, and typically includes several custom amenities such as custom kitchens, built-ins, media rooms, custom master suites and a custom designed landscape plan. The homes are built for the move-up vacation home owner or successful Wall Street professional and business executives.  We believe our Ultra-Luxury Estate Home is an architecturally unique custom designed home that averages 12,000 square feet, situated on more than five acres, and many include a guest house on the property, servants quarters, staff kitchen as well as a main kitchen, his and her master suites, a theater, custom wood paneled library, exercise room or gym, recreation room or game room, indoor pool, squash court, or basketball court. Typically, nothing is taken off a shelf to build the home, windows and doors are custom fabricated, exterior and interior trim is custom designed and fabricated. Every detail is custom designed and built, sometimes even the furniture. The highest quality in materials, means and methods of construction are used to create an architectural work of art that is often sold as a great work of art and not just a home. The properties are impeccably manicured and maintained behind gated hedgerows with rare specimens of trees, rose gardens, English gardens, and private ponds stocked with fish. The homes are built for the most successful and wealthiest individual many times as one of several vacation homes in the world.  We provide renovation, historic restoration and maintenance services in all three categories of homes mentioned above.  About Our Sales Program  Due to the nature of building ultraluxury homes in the Hamptons, which represents a significant portion of HLHs work, a construction services company needs to establish a reputation for quality and reliability in order to sustain a long term presence in the Hamptons. Our work generally comes from word of mouth referrals from past clients, architects, real estate brokers and other members of the community.  We developed a sales and marketing program during the 4th quarter 2006 and rolled it out in February 2007. The continuing results of our efforts are discussed in more detail below in the section titled Sales Activity and Backlog. We anticipate that the continued implementation of the sales and marketing plan together with our roll up strategy of acquiring trade contractors will position HLH to increase its market share in the eastern end of Long Island.   10   Our sales program is designed to leverage our excellent reputation and our relationship with the real estate firms to develop our sales force with the real estate brokers and sales agents. A referral agreement was drafted to formalize an agreement with the real estate firms setting forth a formal process and procedure by which the real estate broker or sales agent will be paid a referral fee for any of the construction services we provide their client while maintaining full disclosure requirements.  This is the first sales program that includes a formal referral agreement with the real estate firms in the Hamptons and some real estate experts believe it is the first of its kind nationally. With four firms committed so far we are extremely encouraged at the referrals we are receiving in all aspects of our construction services. We are currently making presentations to the individual offices to educate the brokers and sales agents about the program and we are very pleased at the positive responses we are receiving. It is our goal to execute agreements with other real estate firms represented in the Hamptons and we plan to diligently pursue our efforts. About Our Property Maintenance Program  An owner of a home in the Hamptons has made an investment in a home that has historically appreciated approximately ten percent per year, or more, as long as the home is properly maintained. Many vacation home owners spend their weekends in the Hamptons calling and meeting with many different service providers because the industry is very fragmented. We have seen some vacation home owners not properly maintain their homes that require costly renovation or repair work to their home that is only ten years old. Since a vacation home owner occupies the home part time we believe they prefer not to maintain their homes in such a fragmented industry.  Telemark Service & Maintenance provides service and maintenance on a will-call basis. Due to our focus to increase a recurring revenue stream we developed and implemented this month a maintenance program that consolidates all the service providers and individual maintenance contracts into one comprehensive property maintenance contract. Our motto is, One Contract, One Call, One Check, One Comprehensive Plan (see an example of the marketing material below). We first survey the property and structures from a check list we developed. We develop a yearly maintenance budget and a capital improvement budget based on our findings. We present a comprehensive maintenance manual to the home owner that incorporates a detailed description of all service provider contracts that we received from our trade contractors that provide service contracts and other service providers that we use. The cost is broken down in detail which enables the homeowner to have a to-do list to check off the work they choose or adopt the entire plan.  We believe this is the first time a formal comprehensive property maintenance program has been developed and implemented in the Hamptons. We are very encouraged by the responses we are receiving and the comments from the vacation home owners that do not want to spend their weekends calling and meeting with the many individual service providers. We immediately executed an agreement with a major real estate firm to provide handyman services for the maintenance of their offices in the Hamptons. We have surveyed several properties and prepared maintenance manuals and we are presently maintaining several properties. We will continue our efforts to expand this program.  About Our Acquisition Strategy  Our immediate acquisition strategy consists of acquiring the service providers and trade contractors that currently provide service in addition to the installation of products as a subcontractor during the construction process. The strategy will provide synergies in our property maintenance program that will allow us to add to our own client base those that are captured by the service contracts, capture income that would normally be paid in the cost of goods sold, capture income through the economies of scale of centralizing administrative functions, cross-selling other services we provide to the newly acquired client bases, eventually provide all services in house that is required in our property maintenance program so we have better control over quality and reliability, and increase recurring revenues and income. The strategy includes maintaining the service provider companys reputation and name branding by structuring them as a wholly owned subsidiary and requiring the business owner to commit to a minimum time period to manage and grow the business.   11   We began implementing our acquisition strategy by opening up discussions with owners of service providers and trade contractors in order to develop the structure for the acquisition. We plan to begin entering into agreements in 2007 by acquiring the smaller companies that provide service only. We plan to fund the acquisitions with a combination of debt, stock and cash. We are presently interviewing investment banking firms to assist us with our roll-up strategy.  We are very encouraged by the openness and willingness of the owners of the companies that provide services during our discussions to acquire their companies. We believe there are many opportunities to successfully implement our strategy.  About North Country Entertainment Complex  On July 2, 2007 the Company released the following news release describing its relationship with Northway Island Associates, Inc. and what is presently known as the North Country Entertainment Complex.     Hamptons Luxury Homes Announces that Northway Island Associates Secures Land for a Planned Hundred Million Dollar Plus Development Project Hamptons Luxury Homes is a 10% Shareholder of Northway Island Associates, Inc. BRIDGEHAMPTON, N.Y.--(BUSINESS WIRE)--Hamptons Luxury Homes (OTCBB:HLXH), a luxury homebuilder of custom estate homes and an integrated construction services company, today announced that Northway Island Associates, in which the company had acquired a 10% ownership interest two years ago, when its wholly owned subsidiary, DWD Construction Services, Inc., entered into a consulting agreement with Northway, is prepared to commence development of the North Country Entertainment Complex located in upstate New York. Northway Island Associates, Inc. of Utica, NY, announced last week, it has closed on its purchase of approximately 928 acres of land to develop an entertainment complex in the St. Lawrence area that is expected to attract tourists from both the U.S. and Canada. The land, located in Brasher and Massena, New York, is slated for use as a motor sports park with retail and entertainment components. In an earlier announcement Northway described the possibility of locating a casino at the complex. The acquisition of this property is the first major step in the development of the North Country Entertainment Complex, said Frank Dalene, president of DWD Construction Services and Vice President/Chief Financial Officer of Hamptons Luxury Homes. We believe this project has tremendous potential to completely revitalize an economically stagnant area, said Roy Dalene, president and CEO of Hamptons Luxury Homes. In addition to providing great benefit to the community, which has been hard hit by the closings of manufacturing plants as well as the downsizing of former large employers in the area, it may also contribute to Hamptons Luxury Homes revenue and earnings in future years as a result of our 10% ownership interest. During the past two years, Hamptons wholly-owned subsidiary, DWD Construction Services, Inc. provided consulting services to Northway Island Associates concerning management, marketing, financial planning, strategic planning, corporate organization and structure, financing, expansion of services, and business opportunities and reviewed and advised Northway regarding its overall progress, needs and condition. This included providing advice regarding recruitment and employment of executives; identification, evaluation, structuring, negotiating and closing of joint ventures, strategic alliances, business opportunities and corporate financing. In return, DWD Construction was compensated with a 10% ownership in Northway Island Associates. We believed that once this project got started it could have the potential to eventually generate benefits to Hamptons Luxury Homes, said Dalene. And we remain committed to continue our consulting services in order to see this project through its next phase and beyond. Northway Island Associates recently announced that it plans to begin Phase I engineering activity for the multimillion dollar project as it enters the permitting process required prior to the design and construction of the planned facilities.  12   On August 2, 2007 our wholly owned subsidiary, DWD Construction Services, Inc. (DWD), acting as the Owners Representative for Northway Island Associates, Inc. (NIA) sent out Requests for Proposals, (RFP) for Master Planning services to four prominent architectural firms that provide planning services. Presently the planned scope of the entertainment complex that is included in the RFP consists of:  1. 300,000 sq.ft. Las Vegas style casino with 6,100 slot machines, 280 tables, simulcast horse race wagering, retail space, dining facilities and lounges. 2. Five hotels in different price ranges with 300 rooms, dining facilities, meeting rooms and retail space in each hotel. 3. An amusement park and water park with a 100,000 sq.ft. building for interior space to operate year round. 4. An indoor arena with a seating capacity of 10,000 that may host concerts, minor league hockey, basketball, soccer, baseball and a convention center. 5. .75 mile NASCAR style oval speedway, a 1⁄4 mile drag strip and a horse track. Proposed activities may include but wont be limited to; NASCAR sanctioned races, IRL races, ARCA races, Hooters Cup races, NHRA sanctioned races, Sprint Car races, tractor pulls, snowmobile racing, race team testing, events such as the Richard Petty Driving Experience and Horse racing. There is a planned permanent seating capacity of 30,000 with the capability to expand to 80,000 with temporary seating. 6. A designer 18-hole golf course.  DWD has presented cost estimates for construction to NIA for approximately $600,000,000 to construct the entertainment complex over a five year period of time. Currently NIA has funding for the entire project in place. The Company has no plans to be the constructor of the entertainment complex however DWD continues to perform under its consulting agreement with NIA to assist them through various stages of the business planning process.  We are very pleased to be a shareholder in NIA and to provide continued assistance and support for the completion of the North Country Entertainment Complex. We believe our involvement will continue to provide synergies to the core business of the Company since at the same time we are providing consulting services we will have the ability to study and explore opportunities in the vacation home markets in northern New York State and along the St. Lawrence River.  Seasonality  Construction business in the Northeast portion of the United States is affected by the weather. Less work is done in winter months than is done throughout the remainder of the year.   13   Results of Operations  General  We were inactive for the five years prior to December 2003 with no revenues whatsoever. In December 2003, we entered into signed contracts covering the construction of nine homes for a total price of $2,125,000 and subsequently entered into contracts to manage the construction of homes. The nine homes are still delayed by the permit process and we have not started the construction process. As a company we had limited direct experience in home construction prior to our merger with Telemark, in April 2006 (see Merger above in Overview). The construction was planned to take place in Southampton Township on Long Island and was expected to start when all required permits are obtained. Currently, these permits are being delayed by the applicable town agencies. Prior to starting construction, the customer needed to secure financing and numerous permits and approvals. The customer received a commitment for financing from Suffolk County National Bank and the permit process was underway. We received a cash payment of $11,016 in December 2003 to cover upfront and planning costs of the project and will receive payments for work as performed. Currently there appears to be little hope that the Town boards will grant approval for the project to proceed as planned. If the appropriate approvals are obtained from the Town boards the contracts will be re-negotiated with the owner to update the costs of construction and any and all adjustments to scopes of work that may have changed as a result of the approval process.  In December 2003, we paid $2,000 to become an independent dealer of The Barden & Robeson Corporation. Barden is a custom panelized manufacturer, which supplies materials for the housing and light industrial industries. Barden makes products for framing and roofing, as well as interior trim and cabinetry products. We earned our first commissions relating to the sale of Barden products in August 2004.  In April, 2005 we formed a wholly-owned subsidiary, DWD Construction Services, Inc., to perform construction supervision and advisory services in connection with the construction of homes. In 2006 we realized substantially all of our revenues from these services which indirectly relate to the Barden dealership.  We devoted a substantial amount of our resources during the year ended December 31, 2005 and the first six months of 2006 starting and completing the process to become current in our reporting under the Securities Exchange Act of 1934, as amended, engaging and working with public relations firms, legal and financial advisors, and seeking assistance in obtaining investment funding. No funding sources have been identified. Our common stock has been quoted on the Over-the-Counter Bulletin Board under the symbol HLXH.  Construction Contract Types  Through most of its history, Telemark has performed work under several different contract types based on the kind of work it performed, preference of the owner, and the preference of management.  The contract type that is ultimately used on a project may be a part of the negotiating process.  The typical contract types are a General Contractor (GC), Construction Manager (CM) and Construction Administrator (CA).  Management believes that the different contract types represent various degrees of risk that Telemark assumes and operating cash requirements.  Work the Company performs under several different contract types may affect the revenues, the evaluation of revenues year over year and may not be an indication of the construction activity of the Company.  The GC on a construction job is responsible for subcontractor costs as well as performance and, accordingly, all material and subcontractor costs are paid to and by the GC.  The GC accounts for the full amount of the construction costs as revenue and all costs paid for material, labor and to subcontractors as cost of goods sold.  The CM and CA on a construction job are paid a fee to manage or administrate a project.  The owner, rather than the CM or CA, contracts directly with material suppliers and subcontractors and is responsible for all material and subcontractor costs as well as performance.  All materials and subcontractor costs are paid by the owner and, therefore, the CM or CA only accounts for its fees as revenues.   14   Currently all construction is being performed under the contract type of a General Contractor. It seems likely that all work that will be performed throughout the remainder of the year will be as a General Contractor.  The Company also performs service and maintenance work on homes that it has built and homes of other select clients, including property management, routine maintenance and small projects on a will call basis.  The work is performed by the Companys own labor force and subcontractors in the carpentry and painting trades.  The work is generally billed on a time and material basis with occasional work being proposed at a fixed price.  Sales Activity and Backlog  During the second quarter and into the third quarter of 2006, a significant portion of managements resources and time was spent transitioning from a private company into a public company.  Management was focused on regulatory requirements, meeting with investor relations consultants, meeting with public relations consultants, working with accounting consultants, working with legal consultants, making presentations to investors at meetings in Long Island, New York City and Chicago, making presentations to institutional funding sources to raise equity capital and debt financing and developing its business plan.  Beginning in the third quarter of 2006 and continuing in the fourth quarter, management increased its efforts in marketing and sales by holding face to face meetings with architectural firms to introduce HLH and inform them of the acquisition of Telemark since some opportunities to bid on projects originate from the architectural firms. Management at the same time began meeting with real estate firms to develop a sales referral program that utilizes the sales agents and brokers in the real estate firms as its sales force. A referral agreement was drafted and in February 2007 management executed its first agreement with a major real estate firm. We currently have executed four agreements with real estate firms that combined have approximately 3,530 brokers and sales agents. The brokers and sales agents will receive a fully disclosed referral fee for all construction services performed by HLH. There are several other real estate firms in various stages of negotiation of the agreement.  The results of our sales activities and the roll out of the new sales referral program are very encouraging since we have seen immediate responses and we believe the results will steadily increase as the program is implemented and more real estate firms execute agreements. From January 1, 2007 to the date of the filing of this report we currently have commitments for $9,870,538 of work with a backlog of work that is projected to complete in May 2008. We currently have bids in various stages on an additional $16,063,730 of work. We are also working with potential clients to assist them in various stages of design and approvals on approximately an additional $7,500,000 of work. Bids and working with potential clients to assist them in various stages of design and approvals represents a pipeline of future work that may become contracts within six to twelve months. Although we believe that it is favorable that the above mention bids and future work will become contracts, these figures represent estimates of what the Companys management is anticipating in the coming year.  There can be no assurances that all or any of these estimates will be realized.  A failure to realize these anticipated revenues may have a material adverse affect on the value of the Companys common stock.  THREE MONTHS ENDED JUNE 30, 2007 COMPARED TO THREE MONTHS ENDED JUNE 30, 2006  Revenues 2007 revenues are comprised primarily of construction service revenues from contracts to construct, renovate, manage and administer luxury estate homes and single family residences.  Revenues for the three months ended June 30, 2007 decreased by $113,371 or 6% to $1,863,236 as compared to $1,976,607 for the comparable period in 2007. The decrease was due to a decrease of construction activity for the period.  Cost of revenue Cost of revenue as a percentage of total revenues was 66% and 67% for the three months ended June 30, 2007 and 2006, respectively.  Cost of revenues decreased by $108,606 or 8% to $1,224,432 for the three months ended June 30, 2007 from $1,333,038 for the comparable period in 2006. The decrease in the percentage of cost of revenue was the result of contract operations with increased margins. The decrease of the cost of revenue was a result of a decrease of revenue.   15   Gross profit Gross profit as a percentage of total revenue was 34% and 33% for the three months ended June 30, 2007 and 2006, respectively. Gross profit decreased $4,765 or 1% to $638,804 for the three months ended June 30, 2007 from $643,569 for the comparable period in 2006. The increase in percentage was the result of contract operations with increased margins. The decrease of gross profit was a result of a decrease of revenues.  Selling, general and administrative Selling, general and administrative expenses decreased $171,619 or 30% to $393,616 for the three months ended June 30, 2007 compared to $565,235 for the comparable period in 2006. The decrease was due to a decrease in marketing, and professional fees related to the fulfillment of the Companys regulatory requirements and additional advisory professional services needed during this period, offset by an increase of insurance and payroll.  Interest income, (expense) Net interest expense was approximately $6,695 for the three months ended June 30, 2007 as compared to an interest expense of approximately $11,904 for the comparable period in 2006.  Net incomeThe Companys net income increased $136,883 or 272% to $187,196 for the three months ended June 30, 2007 from $50,313 for the comparable period in 2006. The increase was primarily due to a decrease in selling, general and administrative expense.   SIX MONTHS ENDED JUNE 30, 2007 COMPARED TO SIX MONTHS ENDED JUNE 30, 2006  Revenues 2007 revenues are comprised primarily of construction service revenues from contracts to construct, renovate, manage and administer luxury estate homes and single family residences.  Revenues for the six months ended June 30, 2007 decreased by $151,200 or 5% to $2,841,975 as compared with $2,993,175 for the comparable period in 2006. The decrease was due to a decrease of construction activity for the period.  Cost of revenue Cost of revenue as a percentage of total revenues was 65% and 67% for the six months ended June 30, 2007 and 2006, respectively.  Cost of revenues decreased by $181,935 or 9% to $1,838,581 for the six months ended June 30, 2007 from $2,020,516 for the comparable period in 2006. The decrease in the percentage of cost of revenue was the result of contract operations with increased margins. The decrease of the cost of revenue of revenue was a result of a decrease of revenue and improved margins.  Gross profit Gross profit as a percentage of total revenues was 35% and 33% for the six months ended June 30, 2007 and 2006, respectively. Gross profit increased $30,735 or 3% to $1,003,394 for the six months ended June 30, 2007 from $972,659 for the comparable period in 2006. The increase in percentage was the result of contract operations with increased margins.  Selling, general and administrative Selling, general and administrative expenses increased $26,196 or 4% to $684,080 for the six months ended June 30, 2007 compared to $657,884 for the comparable period in 2006.  The majority of the increase was due to an increase in rent, insurance and payroll, offset by a decrease in marketing and professional fees.  Income from operations before other income (expense). The Companys income from operations during the six months ended June 30, 2007 and 2006 was $319,314 and $314,775 respectively.  Interest income, (expense) Net interest expense was approximately $16,700 for the six months ended June 30, 2007 as compared to compared to an interest expense of approximately $23,700 for the comparable period in 2006.  Income taxes For the six months ended June 30, 2007 and 2006, the Company recorded a provision for income taxes of $63,000 and $57,755.  Net income The Companys net income decreased $24,662 or 7% to $261,460 for the six months ended June 30, 2007 from $286,122 for the comparable period in 2006.  16    Liquidity and Capital Resources  The Company had cash of $153,749 as of June 30, 2007 compared to $510,000 at December 31, 2006, none of which was restricted.  The Company had working capital of $583,000 as of June 30, 2007 and $377,000 as of December 31, 2006.  The Company had retained earning of $123,000 as of June 30, 2007. It is currently expected that cash flows from the Companys existing contracts and the Companys current assets, including cash and accounts receivable, will be sufficient to fund the Companys liquidity and capital requirements for the next twelve months.  Cash flows used in operations of $336,000 for the six months ended June 30, 2007 was primarily a result of increase in accounts receivable and decrease in accounts payable.  The Company has no committed source of debt or equity capital. However, the Company believes that the increase in work commitments of $9 million to date will result in positive cash flow for the next 12 months.  Critical Accounting Policies  The preparation of financial statements and related notes in conformity with accounting principles generally accepted in the United States of America requires the Company to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.  On an on-going basis, the Company evaluates its estimates, including those related to bad debts, inventories, income taxes, restructuring and impairments and contingencies and litigation.  The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.  An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.  Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements.  Note 2 to the financial statements, included elsewhere in this Report, includes a summary of the significant accounting policies and methods used in the preparation of our financial statements.  The following is a brief discussion of the more significant accounting policies and methods used by us.  Revenue Recognition  The Company performs the majority of its projects under the following types of contracts: cost-plus and time-and-materials. For time-and-materials and cost-plus contracts, revenue is recognized as costs are incurred.  Stock Based Compensation  Compensation costs for common stock, warrants and options issued for services were based on the fair value method. Fair value was based on the value of the common stock issued or services provided, whichever is more determinable.   17   Item 3.  Controls and Procedures  Evaluation of our Disclosure Controls and Internal Controls.  As of the end of the period covered by this Report, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Securites Exchange Act of 1934, Rule 13-d-15(e) and 15d-15(e).  Based upon that evaluation and managements assessment of the potential effects of the material weakness described below, our Chief Executive Officer and Senior Vice President of Finance and Administration, concluded that as of the end of the period covered by this Report, our disclosure controls and procedures were effective to enable us to record, process, summarize and report information required to be included in our periodic SEC filings within the required time period.  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, as amended, such as this Report, is recorded, processed, summarized, and reported within the time periods specified in the SECs rules and forms.  Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including our Chief Executive Officer and Senior Vice President of Finance and Administration, as appropriate, to allow timely decisions regarding required disclosure.  Internal controls are procedures which are designed with the objective of providing reasonable assurance that our transactions are properly authorized, recorded, and reported and our assets are safeguarded against unauthorized or improper use, and to permit the preparation of our financial statements in conformity with generally accepted accounting principles.  Our company is not an accelerated filer (as defined in the Exchange Act) and is not required to deliver managements report on control over our financial reporting until our fiscal year ending December 31, 2007.  There have been no changes in our internal controls over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.   18   PART II OTHER INFORMATION  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.  We have not issued unregistered securities which have not been previously reported as defined in Rule 12b-2 of the Exchange Act, except:   Item 6. Exhibits  Exhibit Number Description  31.1* Section 302 Certification of Principal Executive Officer  31.2* Section 302 Certification of Principal Financial Officer  32.1* Section 906 Certification of Principal Executive Officer  32.2* Section 906 Certification of Principal Financial Officer           _________________ * Filed herewith   19   SIGNATURES   In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  HAMPTONS LUXURY HOMES, INC.     Dated: August 14, 2007 By: /s/ Roy Dalene Roy Dalene Chairman and Chief Executive Officer (Principal Executive Officer)   Dated: August 14, 2007 By: /s/ Frank Dalene Frank Dalene Chief Financial Officer, Vice President and Secretary (Principal Financial Officer and Principal Accounting Officer)    20   EXHIBIT LIST   Exhibit Number Description  31.1* Section 302 Certification of Principal Executive Officer  31.2* Section 302 Certification of Principal Financial Officer  32.1* Section 906 Certification of Principal Executive Officer  32.2* Section 906 Certification of Principal Financial Officer           _________________ * Filed herewith   21