U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                             Quarterly Report Under
                       the Securities Exchange Act of 1934

                        For Quarter Ended: March 31, 2004

                         Commission File Number: 0-23485

                            RETAIL HIGHWAY.COM, INC.
                            ------------------------
        (Exact name of small business issuer as specified in its charter)

                                     Nevada
         (State or other jurisdiction of incorporation or organization)

                                   98-0177646
                        (IRS Employer Identification No.)

                               225 MacPherson Ave.
                                     Unit B
                            Toronto, Ontario, Canada
                            ------------------------
                    (Address of principal executive offices)

                                     M4V 1A1
                                     -------
                                   (Zip Code)

                                 (416) 367-3213
                                 --------------
                           (Issuer's Telephone Number)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter  period that the registrant was required to file such reports),
and (2) has been subject to such filing  requirements  for the past 90 days: Yes
  X    No     .
-----     ----

The number of shares of the  registrant's  only class of common stock issued and
outstanding, as of May 13, 2004 was 10,241,867 shares.

Documents incorporated by reference: none


<PAGE>

                                     PART I

ITEM 1. FINANCIAL STATEMENTS.

     Our unaudited  financial  statements  for the nine month period ended March
31, 2004, are attached hereto.

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

     The following  discussion  should be read in conjunction with our unaudited
Financial  Statements and notes thereto included herein. In connection with, and
because it desires to take  advantage  of, the "safe  harbor"  provisions of the
Private  Securities  Litigation Reform Act of 1995, the Company cautions readers
regarding  certain  forward looking  statements in the following  discussion and
elsewhere in this report and in any other statement made by, or on the behalf of
the Company,  whether or not in future  filings with the Securities and Exchange
Commission.  Forward  looking  statements are statements not based on historical
information and which relate to future operations, strategies, financial results
or other  developments.  Forward looking  statements are necessarily  based upon
estimates and assumptions that are inherently  subject to significant  business,
economic and  competitive  uncertainties  and  contingencies,  many of which are
beyond the Company's  control and many of which, with respect to future business
decisions,  are subject to change.  These  uncertainties  and  contingencies can
affect actual results and could cause actual results to differ  materially  from
those expressed in any forward looking  statements made by, or on behalf of, the
Company.  The  Company  disclaims  any  obligation  to  update  forward  looking
statements.

OVERVIEW

     We were incorporated on February 17, 1993, under the name "LBF Corporation"
pursuant  to the laws of the State of Nevada to engage in any  lawful  corporate
purpose.  In December  1997, we filed a  registration  statement with the United
States Securities and Exchange Commission on Form 10-SB,  registering our common
stock under the Securities  Exchange Act of 1934, as amended (the "34 Act"). Our
intention  at that  time was to seek to  acquire  assets  or shares of an entity
actively  engaged in business  which  generated  revenues or provided a business
opportunity, in exchange for our securities. In effect, this filing caused us to
be a full "reporting company" under the 34 Act.

     Effective  April 17,  1999,  we acquired  certain  assets  owned by Michael
Levine,  including  a  proposed  electronic  commerce  web site and the right to
certain business names,  including  "Shopshopshopping.com,"  "Retailhighway.com"
and  "Greatestmall  on earth.com" (the "Assets").  We issued 2,500,000 shares of
our common stock equal to ownership of approximately 33% of our then outstanding
shares,  in  exchange  for all of the  Assets.  In  addition,  our  shareholders
approved an  amendment  to our  Articles of  Incorporation  changing our name to
"Retail  Highway.com,  Inc."  Our  then  management  resigned  their  respective
positions and were replaced by our current management.

     As a result of this  acquisition,  our  principal  business  objective  was
changed to becoming a primary portal and transaction point for online extensions
of "Bricks and Mortar" ("BAM") retail stores. As described hereinbelow,  as well
as in our Form 10-KSB for our fiscal year ended June 30,

                                        2

<PAGE>

2003, we have  abandoned  this business plan and are currently  seeking to merge
with or otherwise acquire another  business,  or otherwise proceed in accordance
with the disclosure below.

Results of Operations/Plan of Operations

Comparison of Results of  Operations  for the nine month periods ended March 31,
2004 and 2003

     We generated no revenues during the nine month periods ended March 31, 2004
and 2003 and it is not anticipated that we will be able to generate any revenues
in the  foreseeable  future  unless  we  engage in a  business  combination,  as
described herein. We had no costs of sales.

     Selling,  general and administrative  expenses were $25,914 during our nine
month  period ended March 31, 2004,  compared to $32,034  during the  comparable
period in 2003,  a  decrease  of $6,120  (19.1%)  This  decrease  was  primarily
attributable to a decrease in our office rent. The expenses  incurred during the
nine month period ended March 31, 2004, arose primarily from  professional  fees
relating  to costs  associated  with our  being a  reporting  company  under the
Securities  Exchange Act of 1934, as amended,  as well as costs  associated with
possible acquisitions.

     As a result,  we  incurred  a net loss of  ($26,139)  during the nine month
period  ended  March 31, 2004 (less than $0.01 per share) as compared to our net
loss of ($32,201) during the comparable period in 2003.

Plan of Operation

     We intend to seek to acquire assets or shares of an entity actively engaged
in business which generates revenues, in exchange for its securities. We have no
particular  acquisitions  in mind  but as of the  date of this  Report,  we have
entered into discussions regarding such a business combination.

     We have no full time employees. Our Chief Executive Officer,  President and
Secretary  has  agreed  to  allocate  a  portion  of his  time  to our  business
activities.  He  anticipates  that our business plan can be  implemented  by his
devoting  minimal  time per month to our  business  affairs  and,  consequently,
conflicts of interest may arise with respect to the limited time  commitment  by
such officer.

General Business Plan

     Our purpose is to seek,  investigate and, if such  investigation  warrants,
acquire an  interest  in business  opportunities  presented  to us by persons or
firms who or which desire to seek the  perceived  advantages  of an Exchange Act
registered, trading corporation. We will not restrict our search to any specific
business,  industry,  or  geographical  location  and  we may  participate  in a
business  venture  of  virtually  any kind or  nature.  This  discussion  of the
proposed business is purposefully  general and is not meant to be restrictive of
our  virtually  unlimited  discretion  to search  for and enter  into  potential
business   opportunities.   Management  anticipates  that  we  may  be  able  to
participate  in only one  potential  business  venture  because we have  nominal
assets and limited financial resources. See "Financial Statements." This lack of
diversification should be considered a substantial risk to our

                                        3

<PAGE>

shareholders  because it will not permit us to offset  potential losses from one
venture against gains from another.

     We may seek a  business  opportunity  with  entities  which  have  recently
commenced  operations,  or which wish to utilize the public marketplace in order
to raise additional capital in order to expand into new products or markets,  to
develop a new  product  or  service,  or for other  corporate  purposes.  We may
acquire assets and establish wholly owned  subsidiaries in various businesses or
acquire existing businesses as subsidiaries.

     We  anticipate  that the  selection of a business  opportunity  in which to
participate  will be  complex  and  extremely  risky.  Due to  general  economic
conditions,  rapid  technological  advances  being made in some  industries  and
shortages  of available  capital,  management  believes  that there are numerous
firms seeking the perceived benefits of a publicly registered corporation.  Such
perceived  benefits may include  facilitating  or  improving  the terms on which
additional  equity  financing may be sought,  providing  liquidity for incentive
stock options or similar benefits to key employees, providing liquidity (subject
to restrictions of applicable  statutes) for all shareholders and other factors.
Potentially,  available  business  opportunities  may  occur  in many  different
industries and at various stages of development, all of which will make the task
of  comparative  investigation  and  analysis  of  such  business  opportunities
extremely difficult and complex.

     We have,  and will continue to have, a limited amount of capital with which
to provide the owners of business  opportunities  with any  significant  cash or
other assets.  However,  management  believes we will be able to offer owners of
acquisition  candidates  the  opportunity  to  acquire a  controlling  ownership
interest in a publicly  registered,  trading company without  incurring the cost
and time  required  to  conduct an initial  public  offering.  The owners of the
business  opportunities  will,  however,  incur significant legal and accounting
costs in connection with  acquisition of a business  opportunity,  including the
costs of  preparing  Form  8-K's,  10-K's or  10-KSB's,  agreements  and related
reports  and  documents.  The  Securities  Exchange  Act of 1934  (the "34 Act")
specifically  requires that any merger or acquisition  candidate comply with all
applicable  reporting  requirements,  which include  providing audited financial
statements to be included within the numerous filings relevant to complying with
the 34 Act.  Nevertheless,  our officers and directors have not conducted market
research and are not aware of statistical data which would support the perceived
benefits  of a merger or  acquisition  transaction  for the owners of a business
opportunity.

     The analysis of new business  opportunities will be undertaken by, or under
the supervision  of, our officers and directors,  none of whom is a professional
business analyst.  Management intends to concentrate on identifying  preliminary
prospective  business  opportunities  which may be  brought  to their  attention
through  present  associations  of  our  officers  and  directors,   or  by  our
shareholders.  In analyzing prospective business opportunities,  management will
consider  such matters as the  available  technical,  financial  and  managerial
resources;  working  capital  and  other  financial  requirements;   history  of
operations,  if any;  prospects  for the future;  nature of present and expected
competition;  the quality and  experience  of management  services  which may be
available and the depth of that management;  the potential for further research,
development, or exploration; specific risk factors not now foreseeable but which
then may be  anticipated  to impact our proposed  activities;  the potential for
growth or expansion;  the potential for profit; the perceived public recognition
of acceptance of products,  services, or trades; name identification;  and other
relevant  factors.  Our officers and directors  expect to meet  personally  with
management and key personnel of the business

                                        4

<PAGE>

opportunity as part of their investigation. To the extent possible, we intend to
utilize  written  reports  and  personal  investigation  to  evaluate  the above
factors.  We will not  acquire  or merge  with any  company  for  which  audited
financial statements cannot be obtained within a reasonable period of time after
closing of the proposed transaction.

     Management, while not especially experienced in matters relating to our new
business,  shall rely upon their own efforts and, to a much lesser  extent,  the
efforts of our shareholders,  in accomplishing our business purposes.  It is not
anticipated  that we  will  utilize  any  outside  consultants  or  advisors  to
effectuate our business purposes described herein. However, if we do retain such
an outside consultant or advisor, any cash fee earned by such party will need to
be  paid by the  prospective  merger/acquisition  candidate,  as we have no cash
assets  with which to pay such  obligation.  There are no present  contracts  or
agreements with any outside consultants and none are anticipated in the future.

     We will not  restrict our search for any  specific  kind of firms,  but may
acquire a venture which is in its  preliminary  or development  stage,  which is
already in operation,  or in essentially  any stage of its corporate life. It is
impossible  to predict at this time the status of any  business  in which we may
become engaged, in that such business may need to seek additional  capital,  may
desire  to  have  its  shares  publicly  traded,  or may  seek  other  perceived
advantages which we may offer.

     While we reviewed various potential merger or acquisition candidates during
the nine month period ended March 31, 2004,  no  definitive  agreement  has been
reached with any such party and we are continuing to explore  various  potential
opportunities as of the date of this report.

Acquisition of Opportunities

     In implementing a structure for a particular business  acquisition,  we may
become a party to a merger,  consolidation,  reorganization,  joint venture,  or
licensing  agreement  with another  corporation  or entity.  We may also acquire
stock or assets of an existing  business.  On the consummation of a transaction,
it is probable that our present management and shareholders will no longer be in
control of our company. In addition,  our directors may, as part of the terms of
the acquisition  transaction,  resign and be replaced by new directors without a
vote of our shareholders.

     It is  anticipated  that any securities  issued in any such  reorganization
would be issued in reliance upon exemption from  registration  under  applicable
federal  and  state  securities  laws.  In  some  circumstances,  however,  as a
negotiated element of its transaction, we may agree to register all or a part of
such securities immediately after the transaction is consummated or at specified
times  thereafter.  If  such  registration  occurs,  of  which  there  can be no
assurance,  it  will  be  undertaken  by the  surviving  entity  after  we  have
successfully consummated a merger or acquisition and we are no longer considered
a "shell"  company.  Until  such time as this  occurs,  we will not  attempt  to
register  any  additional  securities.  The issuance of  substantial  additional
securities and their potential sale into any trading market which may develop in
our securities  may have a depressive  effect on the value of the our securities
in the future, if such a market develops, of which there is no assurance.

     While the actual terms of a  transaction  to which we may be a party cannot
be predicted,  it may be expected  that the parties to the business  transaction
will find it  desirable  to avoid the  creation  of a taxable  event and thereby
structure the acquisition in a so-called "tax-free" reorganization under

                                        5

<PAGE>

Sections 368(a)(1) or 351 of the Internal Revenue Code (the "Code"). In order to
obtain tax-free  treatment under the Code, it may be necessary for the owners of
the acquired  business to own 80% or more of the voting  stock of the  surviving
entity. In such event, our shareholders would retain less than 20% of the issued
and  outstanding  shares  of  the  surviving  entity,   which  would  result  in
significant dilution in the equity of such shareholders.

     As  part  of our  investigation,  our  officers  and  directors  will  meet
personally  with  management and key personnel,  may visit and inspect  material
facilities,  obtain independent  analysis of verification of certain information
provided,  check  references of  management  and key  personnel,  and take other
reasonable  investigative  measures,  to the  extent  of our  limited  financial
resources and  management  expertise.  The manner in which we  participate in an
opportunity will depend on the nature of the  opportunity,  the respective needs
and desires of us and other parties,  the management of the  opportunity and our
relative negotiation strength and such other management.

     With respect to any merger or acquisition, negotiations with target company
management  is  expected  to focus on the  percentage  of stock which the target
company shareholders would acquire in exchange for all of their shareholdings in
the target company.  Depending upon,  among other things,  the target  company's
assets  and  liabilities,  our  shareholders  will  in  all  likelihood  hold  a
substantially  lesser  percentage  ownership  interest  following  any merger or
acquisition. The percentage ownership may be subject to significant reduction in
the event we acquire a target  company with  substantial  assets.  Any merger or
acquisition effected by us can be expected to have a significant dilutive effect
on the percentage of shares held by our then shareholders.

     We will  participate in a business  opportunity  only after the negotiation
and  execution of  appropriate  written  agreements.  Although the terms of such
agreements  cannot be predicted,  generally  such  agreements  will require some
specific  representations  and  warranties by all of the parties  thereto,  will
specify  certain  events of  default,  will  detail the terms of closing and the
conditions  which must be  satisfied  by each of the parties  prior to and after
such  closing,  will  outline  the  manner of  bearing  costs,  including  costs
associated  with our  attorneys  and  accountants,  will set forth  remedies  on
default and will include miscellaneous other terms.

     As stated  hereinabove,  we will not acquire or merge with any entity which
cannot provide  independent  audited  financial  statements  within a reasonable
period of time after closing of the proposed transaction.  We are subject to all
of the  reporting  requirements  included  in  the 34  Act.  Included  in  these
requirements  is the  affirmative  duty to file  independent  audited  financial
statements as part of our Form 8-K to be filed with the  Securities and Exchange
Commission upon consummation of a merger or acquisition,  as well as our audited
financial  statements  included  in its annual  report on Form  10-KSB.  If such
audited  financial  statements  are not  available  at  closing,  or within time
parameters  necessary to insure our compliance  with the  requirements of the 34
Act,  or if the  audited  financial  statements  provided  do not conform to the
representations  made by the candidate to be acquired in the closing  documents,
the  closing  documents  will  provide  that the  proposed  transaction  will be
voidable,  at the discretion of our present  management.  If such transaction is
voided,  the  agreement  will  also  contain  a  provision   providing  for  the
acquisition  entity to reimburse us for all costs  associated  with the proposed
transaction.


                                        6

<PAGE>

Liquidity and Capital Resources

     At March 31, 2004,  we had $2,115 in cash.  Also at March 31, 2004,  we had
accounts payable in the amount of $53,159 and two (2) outstanding loans payable.
One of these loans is in the  principal  amount of $31,592,  which is due to Mr.
Levine  and arose out of  expenses  incurred  by Mr.  Levine on our  behalf  and
includes $6,000 advanced by Mr. Levine during the three month period ended March
31, 2004. This loan is unsecured, due upon demand and does not accrue interest.

     Additionally,  in September 2002, we executed a note in favor of Mr. Levine
in the principal amount of $10,000,  in order to allow us to pay our obligations
to third parties.  This note is convertible into shares of our common stock at a
conversion  price of  $0.0075  per  share and is due on the  earlier  of (i) our
successfully  consummating  a merger or  acquisition;  or (ii) one year from the
date of the note,  which date has  subsequently  been extended for an additional
year as of the  date of this  report.  Interest  accrues  at the  rate of 3% per
annum.  While no assurances  can be provided,  we believe that the terms of this
note are more  favorable  to us than would have been  provided  by a  commercial
lending  institution,  if we could have identified such a lender, which we could
not.

     As of the date of this Report,  our current cash position is not sufficient
to meet our  current  obligations.  Furthermore,  as we continue  operations  we
expect to incur additional costs and expenses related to the  implementation  of
our business plan described above. To meet these obligations,  it is anticipated
that current  management  may need to make loans to us, or otherwise  make other
arrangements with these creditors.  Because we are not currently required to pay
salaries to any of our officers or directors,  management  believes that we will
be able to continue operations through the foreseeable future. However,  because
of our working capital deficit,  stockholders'  deficit and history of operating
losses,  there is  substantial  doubt  about our  ability to continue as a going
concern.  It is further  anticipated  that we will  continue  to incur  expenses
without corresponding revenues during the foreseeable future.

Inflation

     Although  management  expects that our  operations  will be  influenced  by
general  economic  conditions,  we do not believe that  inflation had a material
effect on our results of operations during the nine month period ended March 31,
2004.

ITEM 3. CONTROLS AND PROCEDURES

     Within 90 days prior to the date of filing of this quarterly report on Form
10-QSB,   we  carried  out  an  evaluation,   under  supervision  and  with  the
participation of our management,  including our CEO, of the effectiveness of the
design and  operation  of our  disclosure  controls and  procedures  pursuant to
Exchange Act Rule 13a-14. Based upon that evaluation, our CEO concluded that our
disclosure  controls and  procedures  are  effective in timely  alerting them to
material  information relating to us required to be included in our periodic SEC
filings.  Subsequent to the date of that evaluation,  there have been no changes
in  internal  controls  or in other  factors  that  could  significantly  affect
internal  controls,  nor were any  corrective  actions  required  with regard to
significant deficiencies and material weaknesses.



                                        7

<PAGE>

                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

     There were no legal proceedings which we commenced,  or which were filed or
threatened  against our  Company  during the nine month  period  ended March 31,
2004.

ITEM 2. CHANGES IN SECURITIES - NONE

ITEM 3. DEFAULTS UPON SENIOR SECURITIES - NONE

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS -

     NONE

ITEM 5. OTHER INFORMATION - NONE

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits

         31.      Certification of Financial Statements in accordance
                  with Section 302 of the Sarbanes-Oxley Act of 2002

         32.      Certification of Financial Statements in accordance
                  with Section 906 of the Sarbanes-Oxley Act of 2002

     (b) Reports on Form 8-K

     We did not file any reports on Form 8-K during the nine month  period ended
March 31, 2004.

                                        8

<PAGE>



                            RETAIL HIGHWAY.COM, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET
                                 MARCH 31, 2004
                                   (UNAUDITED)


                                     ASSETS

CURRENT ASSETS
   Cash                                                         $     2,115
   Prepaid expenses                                                     816
                                                                -----------
      Total current assets                                            2,931
                                                                -----------
FURNITURE AND FIXTURES, net of accumulated
   depreciation of $2,046                                             1,919
                                                                -----------

                                                                $     4,850
                                                                ===========

                    LIABILITIES AND STOCKHOLDERS' (DEFICIT)

CURRENT LIABILITIES
   Accounts payable and accrued expenses                        $    53,159
   Due to related party                                              31,592
   Convertible note payable - related party                          10,000
                                                                -----------
      Total current liabilities                                      94,751
                                                                -----------

STOCKHOLDERS' (DEFICIT)
Preferred stock, $0.001 par value, 25,000,000 shares
  authorized, no shares issued and outstanding                           --
Common stock, $0.001 par value, 50,000,000 shares
   authorized, 10,241,867 shares issued and outstanding              10,242
Additional paid in capital                                        1,474,625
(Deficit) accumulated during development stage                   (1,574,768)
                                                                -----------

      Total stockholders' (deficit)                                 (89,901)
                                                                -----------

                                                                $     4,850
                                                                ===========

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

                                       9

<PAGE>

<TABLE>
                            RETAIL HIGHWAY.COM, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<CAPTION>
                                                                                                         February 17, 1993
                                                                                                           (inception)
                                              Three months ended March 31,  Nine months ended March 31,      through
                                                  2004            2003          2004           2003       March 31, 2004
                                              ------------    ------------  ------------   ------------  -----------------
<S>                                           <C>             <C>           <C>            <C>           <C>
REVENUE                                       $         --    $         --  $         --   $         --  $              --
                                              ------------    ------------  ------------   ------------  -----------------

GENERAL AND ADMINISTRATIVE EXPENSES                  6,555           8,975        25,914         32,034          1,595,811
                                              ------------    ------------  ------------   ------------  -----------------

(LOSS) FROM OPERATIONS                              (6,555)         (8,975)      (25,914)       (32,034)        (1,595,811)
                                              ------------    ------------  ------------   ------------  -----------------
OTHER INCOME (EXPENSE)
    Interest income                                     --              --            --             --             36,304
    Interest expense                                   (75)            (75)         (225)          (167)              (467)
    (Loss) on sale of property and equipment            --              --            --             --            (14,794)
                                              ------------    ------------  ------------   ------------  -----------------
                                                       (75)            (75)         (225)          (167)            21,043
                                              ------------    ------------  ------------   ------------  -----------------

NET (LOSS)                                    $     (6,630)   $     (9,050) $    (26,139)  $    (32,201) $      (1,574,768)
                                              ============    ============  ============   ============  =================
PER SHARE INFORMATION:

WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING - (BASIC AND DILUTED)           10,241,867       9,241,867    10,241,867      9,241,867          6,374,248
                                              ============    ============  ============   ============  =================

NET (LOSS) PER COMMON SHARE
   (BASIC AND DILUTED)                        $      (0.00)   $      (0.00) $      (0.00)  $      (0.00) $           (0.25)
                                              ============    ============  ============   ============  =================

</TABLE>

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

                                       10

<PAGE>

<TABLE>
                            RETAIL HIGHWAY.COM, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<CAPTION>
                                                                                               February 17, 1993
                                                                                                  (inception)
                                                                 Nine months ended March 31,        through
                                                                     2004           2003         March 31, 2004
                                                                 -----------    -----------    -----------------
<S>                                                              <C>            <C>            <C>
CASH FLOW FROM OPERATING ACTIVITIES

     Net cash (used in) operating activities                     $   (13,747)   $   (14,400)   $        (567,244)
                                                                 -----------    -----------    -----------------

CASH FLOW FROM INVESTING ACTIVITIES
        Purchase of applied for patent                                    --             --              (10,130)
        Proceeds from sale of property and equipment                      --             --                5,123
        Acquisition of property and equipment                             --             --             (725,969)
                                                                 -----------    -----------    -----------------
     Net cash (used in) investing activities                              --             --             (730,976)
                                                                 -----------    -----------    -----------------

CASH FLOW FROM FINANCING ACTIVITIES
        Net proceeds from stock issuance                                  --             --            1,284,335
        Proceeds from convertible note payable - related party            --         10,000               10,000
        Proceeds from note payable - related party                        --             --               25,000
        Advances - related party                                       6,000             --                6,000
        Payments on note payable - related party                          --             --              (25,000)
                                                                 -----------    -----------    -----------------
           Net cash provided by financing activities                   6,000         10,000            1,300,335
                                                                 -----------    -----------    -----------------

     Net increase (decrease) in cash                                  (7,747)        (4,400)               2,115

     CASH AT BEGINNING OF PERIOD                                       9,862          4,891                   --
                                                                 -----------    -----------    -----------------

     CASH AT END OF PERIOD                                       $     2,115    $       491    $           2,115
                                                                 ===========    ===========    =================

</TABLE>

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

                                       11

<PAGE>


                            RETAIL HIGHWAY.COM, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                        NOTES TO THE FINANCIAL STATEMENTS
                                 MARCH 31, 2004
                                   (UNAUDITED)

Note 1.  Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance
with accounting  principles  generally  accepted in the United States of America
for interim  financial  information.  They do not include all of the information
and footnotes required by accounting principles generally accepted in the United
States  of  America  for  complete  financial  statements.  In  the  opinion  of
management,  all adjustments,  consisting only of normal recurring  adjustments,
considered  necessary  for a  fair  presentation,  have  been  included  in  the
accompanying  unaudited financial statements.  Operating results for the periods
presented are not necessarily indicative of the results that may be expected for
the full year. For further  information,  refer to the financial  statements and
notes therto, included in the Company's Form 10-KSB as of and for the year ended
June 30, 2003.

Note 2.  Going Concern

The  accompanying  financial  statements  have been prepared in conformity  with
accounting principles generally accepted in the United States of America,  which
contemplates  continuation  of the Company as a going  concern.  The Company has
incurred losses since inception of $1,574,768,  has a working capital  (deficit)
of  $91,820  and  stockholders'  (deficit)  of $89,901  at March 31,  2004.  The
Company's  ability to continue as a going concern is contingent upon its ability
to obtain  capital  or be party to an  acquisition  agreement.  The  Company  is
reliant on advances from related parties to maintain operations and is currently
seeking acquisition candidates. However, the Company has no firm commitments for
obtaining capital or effecting a merger.

The financial  statements do not include any adjustments to reflect the possible
future effects on the recoverability and classification of assets or the amounts
and classification of liabilities that may result from the possible inability of
the Company to continue as a going concern.

Note 3.  Earnings Per Share

The Company  calculates  net income (loss) per share as required by Statement of
Financial  Accounting Standards 128, "Earnings per Share." Basic earnings (loss)
per share is calculated  by dividing net income  (loss) by the weighted  average
number of common shares outstanding for the period.  Diluted earnings (loss) per
share is calculated by dividing net income (loss) by the weighted average number
of common shares and dilutive common stock equivalents  outstanding.  During the
periods presented, common stock equivalents were not considered, as their effect
would be anti-dilutive.

                                       12

<PAGE>

                            RETAIL HIGHWAY.COM, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                        NOTES TO THE FINANCIAL STATEMENTS
                                 MARCH 31, 2004
                                   (UNAUDITED)


Note 4.  Convertible Note Payable - Related Party

On September 9, 2002 the Company received a loan in the amount of $10,000 from a
related party.  The promissory note bears interest at 3% and is convertible into
1,333,333  shares of the Company's  common stock at the holder's  request.  Upon
conversion, any difference between the fair market value of the common stock and
its implicit  value will be recorded as an expense.  The note was originally due
on  September  9, 2003 and has been  extended for one year to September 9, 2004.
The Company has accrued  interest of $467 related to this promissory note, which
is included in due to related party.


Note 5.  Related Party Advance

During the period ended March 31, 2004, the Company's  President advanced $6,000
to the Company, for working capital.

                                       13

<PAGE>

                                   SIGNATURES


     Pursuant to the  requirements  of Section 12 of the Securities and Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                          RETAIL HIGHWAY.COM, INC.
                                          (Registrant)

                                          Dated: May 13, 2004



                                          By s/ Michael Levine
                                            -----------------------------------
                                            Michael Levine,
                                            President and Secretary




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