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**UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549**___________________**FORM 10-QSB**___________________

 

**ý                                QUARTERLY REPORT PURSUANTTO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

 

**For thequarterly period ended July 31, 2005**

 

**OR**

 

**o                                TRANSITION REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

 

**For thetransition period from               to              **

 

Commission file number 0-50356

 

**EAST COASTDIVERSIFIED CORPORATION**(Exact Name Of RegistrantAs Specified In Its Charter)

 
| **NEVADA**
            
**55-0840109**

(State of Incorporation)
            
(I.R.S. Employer Identification No.)

 
                           
**2090 Oaktree Road, Suite 15,    Edison, NJ**
            
**08820**

(Address of Principal Executive Offices)
            
(ZIP Code)

 Registrant'sTelephone Number, Including Area Code: (732) 803-8000

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or forsuch shorter period that the registrant was required to file such reports), and (2) hasbeen subject to such filing requirements for the past 90days.  Yes  [X]  No [  ]At July 31, 2005, the Registrant had 2,636,262 shares of common stock, par value $0.001outstanding.

**TABLE OF CONTENTS**
Item    Description    Page
**PART I - FINANCIAL INFORMATION**
  
ITEM 1.
            
FINANCIAL STATEMENTS.
        3  
ITEM 2.
            
MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.
        3   
ITEM 3.
            
CONTROLS AND    PROCEDURES.
        3     
**PART II - OTHER INFORMATION**
  
ITEM 1.
            
LEGAL PROCEEDINGS.
        4  
ITEM 2.
            
CHANGES IN    SECURITIES.
        4   
ITEM 3.
            
DEFAULT    UPON SENIOR SECURITIES.
        4   
ITEM 4.
            
SUBMISSION OF MATERS TO A VOTE OF SECURITY HOLDERS.
        4   
ITEM 5.
            
OTHER    INFORMATION.
        4   ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K.****
**PART I - FINANCIAL INFORMATION**

**ITEM1. FINANCIAL STATEMENTS**Backto Table of Contents

The Registrant's financial statements for thethree-month periods ended July 31, 2005 and 2004 are attached to this quarterly report.

Financial Statements

**ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION**Back to Table of Contents

The following discussion containsforward-looking statements. Forward-looking statements give our current expectations orforecasts of future events. You can identify these statements by the fact that they do notrelate strictly to historical or current facts. They use of words such as"anticipate," "estimate," "expect," "project,""intend," "plan," "believe," and other words and terms ofsimilar meaning in connection with any discussion of future operating or financialperformance. From time to time, we also may provide forward-looking statements in othermaterials we release to the public.

OverviewOur current activities are related to seeking a new business opportunity or businesscombination. We will use our limited personnel and financial resources in connection withsuch activities. It may be expected that entering into a new business opportunity orbusiness combination will involve the issuance of restricted shares of common stock. AtJuly 31, 2004, we have no cash or other liquid assets. 

Results of Operations for thePeriods Ended July 31, 2005 and 2004

Duringthree-month period ended July 31, 2005 and 2004, the Company had no revenues. The Companyincurred operating expenses of $2,563 during the three-month period ended July 31, 2005compared to operating expenses of $24,396 during the same period in the prior year. TheCompany's operating expenses consist mainly of accounting and other professional fees.

Liquidity andCapital Resources

Asof July 31, 2005, the Company had total liabilities of $155,973 compared to totalliabilities of $117,701 at July 31, 2004. The increase in liabilities was mainly due to anincrease in accounts and accrued expenses payable consisting of accrued compensation dueto management and a note payable to a shareholder. Our accumulated deficit at July 31, 2005 and July 31, 2004 was$2,138,634 and $2,100,362, respectively.

We have beendependent upon interim funding by a shareholder to pay our operating and administrativeexpenses. We have no written finance agreement with such shareholder to continue toadvance funding to pay these expenses. 

Aspart of our intent to seek new business opportunities and/or in effecting a businesscombination, we may determine to seek to raise funds from the sale of equity or othersecurities.We have no agreements to issue any equity securities or other securities andcannot predict whether equity or other sources of financing will become available at termsacceptable to us, if at all.

We anticipate that in connection withthe commencement of a new business opportunity or consummation of a business combination,we will issue a substantial number of additional restricted shares or other securities. Ifsuch additional securities are issued, our shareholders will experience a dilution intheir ownership interest in the Company. If a substantial number of shares are issued inconnection with a business combination, a change in control may be expected to occur.

Thereare no limitations in our articles of incorporation or bylaws on our ability to borrowfunds or raise funds through the issuance of restricted common stock to effect a businesscombination. Our limited resources and lack of operating history may make it difficult todo borrow funds or raise capital. Our inability to borrow funds or raise funds through theissuance of restricted common stock required to effect or facilitate a businesscombination may have a material adverse effect on our financial condition and futureprospects, including the ability to complete a business combination. To the extent thatdebt financing ultimately proves to be available, any borrowing will subject us to variousrisks traditionally associated with indebtedness, including the risks of interest ratefluctuations and insufficiency of cash flow to pay principal and interest, including debtof an acquired business. 

**ITEM 3.CONTROLS AND PROCEDURES**Back toTable of Contents
*Evaluation of disclosure controls and procedures.As of July 31, 2005, the Company's chief executive officerand chief financial officer conducted an evaluation regarding the effectiveness of theCompany's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e)under the  Exchange Act. Based upon the evaluation of these controls and procedures,our chief executive officer and chief financial officer concluded that our disclosurecontrols and procedures were effective as of the end of the period covered by this report.

*Changes in internal controls*. During the quarterly period covered by this report, no changesoccurred in our internal control over financial reporting that materially affected, or isreasonably likely to materially affect, our internal control over financial reporting.

 

**PART II - OTHER INFORMATION**

**ITEM 1. LEGALPROCEEDINGS**Back to Table ofContents

The Registrant's officers and directorsare not aware of any threatened or pending litigation to which the Registrant is a partyor which any of its property is the subject and which would have any material, adverseeffect on the Registrant.

**ITEM 2.CHANGES IN SECURITIES**Back toTable of Contents

None.

**ITEM 3. DEFAULTS UPON SENIORSECURITIES**Back to Table ofContents

None.

**ITEM4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**Back to Table of Contents

None.

**ITEM5. OTHER INFORMATION**Backto Table of Contents

None.

**ITEM 6. EXHIBITS AND REPORTS ONFORM 8-K**Back to Table ofContents

(a) The following documents are filed as exhibits tothis report on Form 10-QSB or incorporated by reference herein. Any document incorporatedby reference is identified by a parenthetical reference to the SEC filing that includedsuch document.

Exhibit    No.Description31.1Certification of Chief    Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to    Section 302 of the Sarbanes-Oxley Act of 2002.31.2Certification of Chief    Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to    Section 302 of the Sarbanes-Oxley Act of 2002.32.1Certification of Chief    Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of    the Sarbanes-Oxley Act of 2002.32.2Certification of Chief    Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of    the Sarbanes-Oxley Act of 2002.
(b) Reports on Form 8-K during the quarter covered by this report:

The Registrant filed a Form 8-K during the quarter ended July 31, 2005with disclosure under Item 5.02 Departure of Directors or Principal Officers; Election ofDirector; Appointment of Principal Officers.

**SIGNATURES**

Pursuant to therequirements of the Securities Exchange Act of 1934, this report has been signed below bythe following persons on behalf of the registrant and in the capacities and on the dateindicated.

/s/ Richard Margulies    Richard Margulies*   Chief Executive Officer      Dated: September 20, 2005*
                                  
/s/ Frank Rovito    Frank Rovito       *Chief Financial Officer**   Dated: September 20, 2005*
                            
**FinancialStatements**Back to Table of Contents
Financial Statements   Balance sheets7   Statements of loss and accumulated    deficit8   Statements    of cash flows9Summary    of significant accounting policies10Notes to the    financial statements10
 

**East Coast Diversified Corporation**
Balance Sheets
July 31, 2005 and 2004
Back to Table of Contents  **2005****2004**
LIABILITIES    AND STOCKHOLDERS' EQUITY  Current liabilities:   Accounts and    accrued expenses payable18,68416,912   Notes payable,    shareholder (Note 1)14,45011,450   Accrued    compensation payable115,50082,500   Payroll taxes    payable7,3396,839        Total current liabilities155,973117,701          **Total liabilities**155,973117,701Stockholders' deficit:   Preferred stock,    $.001 par value; 1,000,000 authorized, none outstanding--   Common stock, $.001    par value; 74,000,000 shares authorized;         2,636,261 shares issued and outstanding, respectively2,6362,636   Additional paid-in    capital1,980,0251,980,025   Accumulated deficit(2,138,634)(2,100,362)     Total    stockholders' deficit(155,973)(117,701)          **Total liabilities and stockholders' equity**$0
$0  See the summary of    significant accounting policies and the accompanying notes to the financial statements.
**EAST COAST DIVERSIFIED CORPORATION**
Statements of Loss and Accumulated    Deficit (Unaudited)
For the Three    Months Ended July 31, 2005 and 2004
Back to Table of Contents  
**2005**
**2004**Revenues
$-
$-Operating expenses   Officers'    compensation-16,500   Professional fees2,5007,980   Miscellaneous    expenses6363Total operating expenses2,56324,543Loss from    operations(2,563)(24,543)  Other expenses   Interest expense245345Total other expenses245345  Net loss
$
(2,808)
$
(24,888)Accumulated deficit, beginning(2,135,827)(2,075,474)Accumulated deficit, ending(2,138,635)(2,100,362)  Loss per weighted average share of    common stock outstanding
$(0.00)$(0.01)Weighted average    number of shares of common stock outstanding
2,636,216
2,636,216  
See    the summary of significant accounting policies and the accompanying notes to the financial    statements.**EAST COAST DIVERSIFIED CORPORATION**Statements of Cash    Flows (Unaudited)For the Three Months Ended July 31, 2005 and 2004
Back to Table    of Contents
    
**2005**
**2004****Cash    flows from operating activities:**   Net loss$(2,807)$(24,888)   Changes in operating    assets and liabilities:     Increase    in accrued compensation payable-16,500     Increase    in accounts and accrued expenses payable2,6828,263     Increase    in payroll taxes payable125125**Net cash    used in operating activities**
-
-  **Increase    in cash and cash equivalents**Cash and cash equivalents,    beginning of period
-
-**Cash and    cash equivalents, end of period**
$
-
$
-  **Supplemental    disclosure of cash flow information:**   Cash paid during the    period for:     Income    taxes$-$-     Interest    expense
$
-
$
-  See the summary of    significant accounting policies, and the accompanying notes to the financial statements.
**East Coast Diversified Corporation**Summary of Significant AccountingPoliciesJuly 31, 2005Backto Table of Contents

*Organization*

East Coast Diversified Corporation (the"Company") was organized on May 24, 1994, under the laws of the State of Floridaunder the name Plantastic Corp and changed its name to Viva Golf, USA Corp in April 1997.The Company acquired 100% of the issued and outstanding shares of common stock ofLifekeepers International, Inc. in exchange for 1,000,000 of its newly issued shares underan Agreement and Plan of Reorganization on October 22, 1998. In connection with thisacquisition, the Company changed its name to Lifekeepers International, Inc.

The Company previously held an exclusivelicensing agreement to market and distribute golf clubs and related accessories in thecontinental United States. After the reorganization, the Company changed its business planto providing mobile non-intrusive medical testing such as ultra-sound screening and bloodanalysis diagnostic testing.

During the year 2001, the Companydiscontinued its operations, and has been inoperative since that time. On May 29, 2003,the Company changed its name to East Coast Diversified Corporation.
*Cash and cash equivalents*
The Company considers certificates of deposit and otherhighly liquid investments purchased with maturities of ninety days or less to be cashequivalents.
*Estimates

The preparation of financialstatements in conformity with generally accepted accounting principles requires managementto make estimates and assumptions that affect the reported amounts of assets andliabilities and disclosures of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenues and expenses during the reportedperiod. Actual results may differ from these estimates.

**East Coast Diversified Corporation**Notes to Financial Statements Back to Table of Contents

NOTE 1 - NOTES PAYABLE, SHAREHOLDER

Notes payable, shareholders are as follows:
20052004$5,515 note payable to shareholder Ivo Heiden which accrues    interest at 10% per annum and was due April 30, 2004. The note was convertible into shares    of common stock of the Company at the conversion price equal to the closing bid price of    the shares on the date of conversion, but not less 
 than the par value of $.001. The shareholder has agreed to    extend the maturity date of the obligation.$5,515$5,515  $4,750 note payable to shareholder Ivo Heiden which accrues    interest at 10% per annum and was due April 30, 2004. The note was convertible into shares    of common stock of the Company at the conversion price equal to the closing bid price of    the shares on the date of conversion, but not less than the par value of $.001. The shareholder has agreed to    extend the maturity date of the obligation.4,7504,750  $4,185 note payable to shareholder Ivo Heiden which accrues    interest at 10% per annum and is due February 3, 2006. The note is convertible into shares    of common stock of the Company at theconversion price of $.002.4,1851,185$14,450$11,450*NOTE 2 – RELATED PARTY TRANSACTIONS

On April 26, 2005 Thomas Craft, Ivo Heiden, and Richard Rubin resignedas board members, and were replaced by Richard Marguiles, Frank Rovito, and AaronGoldstein. The Company accrued $0 and $16,500 of compensation respectively for 2005 and2004 to the three above former board members of the Company. $115,500 remained unpaid asof July 31, 2005 and 2004. 

NOTE 3 – DISCONTINUED OPERATIONS

On November 20, 2001 the Company discontinued its operations, and,except for the payment of professional fees and officers’ compensation, has beeninoperative since that time.

NOTE 4 - GOING CONCERN

These financial statements are presented on the basis that the Companyis a going concern. Going concern contemplates the realization of assets and thesatisfaction of liabilities in the normal course of business over a reasonable period oftime. 

The Company has incurred net losses of $2,807 and $24,888 respectivelyfor the years ended July 31, 2005 and 2004, and as of July 31, 2005 had incurredcumulative losses since inception of $2,138,634. 

The Company’s existence in the current and prior periods has beendependent upon operational revenues, advances from related parties and other individuals,and obtaining additional capital and financing. 

The Company’s management believes that its ongoing efforts toincrease revenue and raise additional capital through the sale of equity securities anddebt instruments will provide additional cash flows. However, there is no assurance thatthe Company will be able to obtain additional funding.

The financial statements do not include any adjustments that might benecessary if the Company is unable to continue as a going concern.*** |
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