**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      D.C. 20549





**FORM
      10-QSB**





**x
      QUARTERLY REPORT UNDER
      SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934**





For
      the
      quarterly period ended September 30, 2007





**o
      TRANSITION REPORT UNDER
      SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934**


For
      the
      transition period from _______________ to _________________





000-29743


(Commission
      file number)










**RENEWABLE
      ENERGY RESOURCES, INC.**





(Exact
      name of small business issuer as specified in its charter)






**Florida**
            **88-0409143**(State
                or other jurisdiction of incorporation or organization)
            (IRS
                Employer Identification No.)





**334
      S. HYDE PARK AVE., TAMPA,
      FLORIDA 33606**   (Address
      of principal executive offices) (Zip Code)





813-944-3185


(Issuer's
      telephone number)





Check
      whether issuer (1) has 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 xNo o




Indicate
      by check mark whether the registrant is a shell company (as defined in exchange
      A Rule 12b-2).   Yes oNo x





State
      the
      number of shares outstanding of each of the issuer’s classes of common stock as
      of the last practicable date





There
      were 181,099,944 shares of common stock, and 885,180 shares of preferred stock
      issued and outstanding as of November 6, 2007.





Transitional
      Small Business Disclosure Format (check one): Yes o No x





Documents
      Incorporated by Reference: None


1






Table
                of Contents
            PagePART
                  I
            FINANCIAL
                  INFORMATION
            4Item
                  1
            Financial
                  Statements
            4BALANCE
                  SHEET as of September 30, 2007 (Unaudited)
            4STATEMENT
                  OF OPERATIONS For the periods ended September 30, 2007 and 2006
                  (Unaudited)
            5STATEMENT
                  OF CASH FLOWS For the periods ended September 30, 2007 and 2006
                  (Unaudited)
            6Notes
                  to Financial Statements
            8Item
                  2
            Management's
                  Discussion and Analysis or Plan of Operations
            15Item
                  3
            Controls
                  and Procedures
            21PART
                  II
            OTHER
                  INFORMATION
            21Item
                  2
            Unregistered
                  Sales of Equity Securities and Use of Proceeds
            21Item
              5
            Other
              Information
            21Item
                  6
            Exhibits
            22SIGNATURES
            22


































2


Forward
      looking statements





We
      are
      including the following cautionary statement in this Form 10-QSB to make
      applicable and take advantage of the safe harbor provision of the Private
      Securities Litigation Reform Act of 1995 for any forward-looking statements
      made
      by, or on behalf of, the Company. Forward-looking statements include statements
      concerning plans, objectives, goals, strategies, expectations, future events
      or
      performance and underlying assumptions and other statements that are other
      than
      statements of historical facts. The statements contained herein and other
      information contained in this report may be based, in part, on management's
      estimates, projections, plans and judgments. These forward-looking statements
      are subject to certain risks and uncertainties that could cause actual results
      to differ materially from historical results or those anticipated. In this
      report, the words "anticipates", "believes", "expects", "intends", "future",
      "plans", "targets" and similar expressions identify forward-looking statements.
      Readers are cautioned not to place undue reliance on the forward-looking
      statements contained herein. We undertake no obligation to publicly revise
      these
      forward-looking statements to reflect events or circumstances that may arise
      after the date hereof. Our expectations, beliefs and projections are expressed
      in good faith and are believed to have a reasonable basis, including without
      limitations, management's examination of historical operating trends, data
      contained in our records and other data available from third parties, but there
      can be no assurance that management's expectations, beliefs or projections
      will
      result or be achieved or accomplished. In addition to other factors and matters
      discussed elsewhere herein, the following are important factors that could
      cause
      actual results to differ materially from those discussed in the forward-looking
      statements: our dependence on limited cash resources, dependence on certain
      key
      personnel within the Company, and the ability to raise additional capital;
      our
      ability to obtain acceptable forms and amounts of financing; the demand for,
      and
      price level of, our products and services; competitive factors; the ability
      to
      mitigate concentration of business in a small number of customers; the evolving
      industry and technology standards; the ability to protect proprietary
      technology; and our ability to efficiently manage our operations. Accordingly,
      actual results may differ, possibly materially, from the predictions contained
      herein.






















































3


**PART
      I - FINANCIAL INFORMATION**


**Item
      1. Financial Statements**




**RENEWABLE
                  ENERGY RESOURCES, INC.****UNAUDITED****BALANCE
                  SHEET**(A
                  Development Stage Company)**September
                  30, 2007****ASSETS****CURRENT
                  ASSETS**Cash
                  and Cash Equivalents
              
              $
              1,987Security
                  Deposit
              
              
              
              2,500Payroll
                  Advances
              
              
              
              37,500Stock
                  Subscription
              
              
              
              480,000Total
                  Current Assets
              
              
              521,987**PROPERTY
                  AND EQUIPMENT**Computers
                  and Equipment (net)
              
              
              10,051**OTHER
                  ASSETS**Investment-
                  Langley
              
              
              
              6,304Investment-
                  Kinetic Energy
              
              
              68,750License
              
              
              
              100,000Investment
                  SEP
              
              
              
              50,000Total
                  Other Assets
              
              
              225,054**Total
                  Assets**
              
              
              $
              757,092**LIABILITIES
                  & STOCKHOLDERS' EQUITY****CURRENT
                  LIABILITIES**Accounts
                  Payable
              
              
              $
              138,910Accrued
                  Payroll
              
              
              
              275,629Shareholder
                  Loans
              
              
              
              24,500Interest
                  Payable
              
              
              
              4,175Loan
                  from Officers
              
              
              
              2,500Total
                  Current Liabilities
              
              
              445,714**OTHER
                  LIABILITIES**Note
                  Payable
              
              
              
              150,000Debt
                  Under Negotiations
              
              
              906,879Commitments
                  and Contingencies
              
              
              -Total
                  Liabilities
              
              
              1,502,593**STOCKHOLDERS'
                  EQUITY**Common
                  Stock, $.001 par value, 200,000,000 Shares Authorized
              
              
              176,035176,035,375
                  Issued and OutstandingPreferred
                  Stock, $.001 par value, 70,000,000 Shares Authorized
              
              
              885885,180
                  Issued and OutstandingAdditional
                  Paid-in Capital
              
              
              14,792,053Accumulated
                  Comprehensive Loss
              
              
              (83,787
              )Accumulated
                  Deficit
              
              
              
              (15,630,687
              )Total
                  Stockholder's Equity
              
              
              (745,501
              )**Total
                  Liabilities & Equity**
              
              
              $
              757,092See
                  accompanying footnotes to unaudited condensed financial statements
                  which
                  are an integral part of these financial statements


4


**RENEWABLE
                  ENERGY RESOURCES, INC.****UNAUDITED****STATEMENT
                  OF OPERATIONS**(A
                  Development Stage Company)For
                  the periods ended September 30, 2007 and 2006**Accumulated****from****Date
                  of****Three
                  Months**
              
              
              **Three
                  Months**
              
              
              **Nine
                  Months**
              
              
              **Nine
                  Months**
              
              
              **Inception****ended**
              
              
              **ended**
              
              
              **ended**
              
              
              **ended**
              
              
              **Through****September
                  30,**
                **2007**
              
              
              **September
                  30, 2006**
              
              
              **September
                  30, 2007**
              
              
              **September
                  30, 2006**
              
              
              **September
                  30, 2007**Net
                  Sales
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -Cost
                  of Sales
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Gross
                  Profit
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Selling,
                  General & Administrative Expenses
              
              
              147,043
              
              
              
              563,954
              
              
              
              2,040,597
              
              
              
              5,873,023
              
              
              
              12,556,007Research
                  And Development
              
              
              15,000
              
              
              
              38,934
              
              
              
              16,600
              
              
              
              682,652
              
              
              
              1,374,526Loss
                  from Operations
              
              
              162,043
              
              
              
              602,888
              
              
              
              2,057,197
              
              
              
              6,555,675
              
              
              
              13,930,533Loss
                  on Sale of Securities
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              697,237Permanent
                  Impairment Writedown onMarketable
                  securities
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              7,996
              
              
              
              903,468Other
                  Income
              
              
              -
              
              
              
              (22,500
              )
              
              
              -
              
              
              
              (65,000
              )
              
              
              -Interest
                  Expense
              
              
              4,175
              
              
              
              -
              
              
              
              4,190
              
              
              
              11,196
              
              
              
              99,449Net
                  Loss
              
              
              $
              (166,218
              )
              
              $
              (580,388
              )
              
              $
              (2,061,387
              )
              
              $
              (6,509,867
              )
              
              $
              (15,630,687
              )Basic
                  Net Loss Per Common Share
              
              $
              (0.01
              )
              
              $
              (0.01
              )
              
              $
              (0.01
              )
              
              $
              (0.07
              )Diluted
                  Net Loss Per Common Share
              
              $
              (0.01
              )
              
              $
              (0.01
              )
              
              $
              (0.01
              )
              
              $
              (0.07
              )Weighted
                  Average of Common Shares
              
              
              174,245,987
              
              
              
              103,395,256
              
              
              
              172,543,280
              
              
              
              94,754,900OutstandingSee
                  accompanying footnotes to unaudited condensed financial statements
                  which
                  are an integral part of these financial statements
         5
  **RENEWABLE
                    ENERGY RESOURCES, INC.**UNAUDITED**STATEMENT
                    OF CASH FLOWS**(A
                    Development Stage Company)For
                    the Periods Ended September 30, 2007 and 2006**Accumulated
                    from****For
                    the Nine**
                
                
                **For
                    the Nine**
                
                
                **Date
                    of Inception****Months
                    Ended**
                
                
                **Months
                    Ended**
                
                
                **through****September
                    30, 2007**
                
                
                **September
                    30, 2006**
                
                
                **September
                    30, 2007****OPERATING
                    ACTIVITIES**Net
                    Loss
                
                
                
                
                $
                (2,061,387
                )
                
                $
                (4,926,948
                )
                
                $
                (15,630,687
                )Adjustments
                    To Reconcile Net Loss to Cash Used By Operating
                    Activities:Depreciation
                
                
                
                
                3,834
                
                
                
                2,940
                
                
                
                15,910Amortization
                    of Debt Discount
                
                
                
                -
                
                
                
                -
                
                
                
                40,000Rent
                
                
                
                
                22,818
                
                
                
                -
                
                
                
                22,818Issuance
                    of Shares for Interest
                
                
                
                -
                
                
                
                -
                
                
                
                6,196Issuance
                    of Common  Shares for Services
                
                
                
                1,468,811
                
                
                
                3,694,860
                
                
                
                10,769,187Issuance
                    to Regent
                
                
                
                -
                
                
                
                450,000
                
                
                
                805,900Loss
                    on Sale of Securities
                
                
                
                -
                
                
                
                -
                
                
                
                697,237Permanent
                    Impairment
                
                
                
                -
                
                
                
                -
                
                
                
                903,468Changes
                    in Assets & LiabilitiesInterest
                    Expense
                
                
                
                4,175
                
                
                
                -
                
                
                
                4,175Prepaid
                    Rent
                
                
                
                -
                
                
                
                (4,800
                )
                
                
                -Accrued
                    Payroll
                
                
                
                275,629
                
                
                
                168,127
                
                
                
                286,993Proto
                    Type R&D
                
                
                
                33,332
                
                
                
                -
                
                
                
                33,332Increase
                    in AP & Accrued Liability
                
                
                
                52,899
                
                
                
                141,098
                
                
                
                93,890Cash
                    (Used) By Operating Activities
                
                
                
                (199,889
                )
                
                
                (477,223
                )
                
                
                (1,951,581
                )**INVESTING
                    ACTIVITIES**Purchase
                    of Fixed Assets
                
                
                
                -
                
                
                
                (1,919
                )
                
                
                (23,881
                )Cash
                    Proceeds on Sale of Marketable Securities
                
                
                
                -
                
                
                
                -
                
                
                
                201,208Licensing
                    Fee
                
                
                
                
                -
                
                
                
                -
                
                
                
                (100,000
                )Employee
                    Advances
                
                
                
                (37,500
                )
                
                
                -
                
                
                
                (37,500
                )Loan
                    from Officer
                
                
                
                2,500
                
                
                
                -
                
                
                
                2,500Investment
                    in SEP
                
                
                
                (50,000
                )
                
                
                -
                
                
                
                (50,000
                )Cash
                    Provided (Used) By Investing Activities
                
                
                
                (85,000
                )
                
                
                (1,919
                )
                
                
                (7,673
                )




6




**STATEMENT
        OF CASH FLOWS - continued**






**FINANCING
                ACTIVITIES**Proceeds
                from notes payable
            
            
            
            150,000
            
            
            
            (4,900
            )
            
            
            210,000Decrease
                in shareholder loans
            
            
            
            -
            
            
            
            (55,000
            )
            
            
            -Net
                Proceeds From Shareholder Advances
            
            
            
            112,655
            
            
            
            672,650
            
            
            
            1,733,741Security
                Deposit
            
            
            
            -
            
            
            
            (2,500
            )
            
            
            (2,500
            )Net
                Proceeds from Stock Subscription
            
            
            
            20,000
            
            
            
            -
            
            
            
            20,000Cash
                Provided By Financing Activities
            
            
            
            282,655
            
            
            
            612,750
            
            
            
            1,961,241Increase/Decrease
                in Cash and Cash Equivalents
            
            
            
            (2,234
            )
            
            
            133,608
            
            
            
            1,987**CASH
                AND CASH EQUIVALENTS, beginning of period**
            
            
            
            4,221
            
            
            
            131,268
            
            
            
            -**CASH
                AND CASH EQUIVALENTS, end of period**$
            1,987
            
            
            $
            2,340
            
            
            $
            1,987See
                accompanying footnotes to unaudited condensed financial statements
                which
                are an integral part of these financial
                statements








































7
 **RENEWABLE
            ENERGY RESOURCES, INC.**
 **NOTES
            TO FINANCIAL STATEMENTS**




**NOTE
      1 - DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING
      POLICIES**





**Background
      and Nature of Business**





Renewable
      Energy Resources, Inc., a Development Stage Company, (formerly Internal Hydro
      International, Inc. (“IHII”) and Internal Command International (“ICI”)) was
      incorporated under the laws of the State of Florida on January 21, 2003 (the
      “Company”).





On
      January 2, 2004, the Company entered into a merger agreement with Home Services
      International, Inc. (“HSI”). HSI issued 27,500,000 shares of its Series A
      Preferred stock. In connection with this acquisition, the company was re-named
      “Internal Hydro International, Inc.”  As a result of the merger
      transaction with HSI, the former Company stockholders obtained control of HSI’s
      voting stock. For financial accounting purposes, the acquisition was a reverse
      acquisition of HSI by the Company, under the purchase method of accounting,
      and
      was treated as a recapitalization with the Company as the acquirer. Accordingly,
      the historical financial statements have been restated after giving effect
      to
      the January 2, 2004, acquisition of the Company. The financial statements have
      been prepared to give retroactive effect to January 21, 2003 (date of
      inception), of the reverse acquisition completed on January 2, 2004, and
      represent the operations of the Company. Consistent with reverse acquisition
      accounting: (i) all of the Company’s assets, liabilities, and accumulated
      deficit, are reflected at their combined historical cost (as the accounting
      acquirer) and (ii) the preexisting outstanding shares of the HSI (the accounting
      acquired) are reflected at their net asset value as if issued on January 21,
      2003.





The
      Company is a development stage enterprise. The Company intends to manufacture
      and distribute its alternative energy products that use water pressure flow
      to
      generate electricity.





**Basis
      of Presentation**





The
      Company follows the accrual basis of accounting in accordance with accounting
      principles generally accepted in the United States of America and has adopted
      a
      year-end of December 31.





Management
      is solely responsible for adopting sound accounting practices, establishing
      and
      maintaining a system of internal accounting control and preventing and detecting
      fraud. In management’s opinion all adjustments for a fair statement of results
      for interim periods have been included. The Company’s system of internal
      accounting control is designed to assure, among other items, that 1) recorded
      transactions are valid; 2) valid transactions are recorded; and 3) transactions
      are recorded in the proper period in a timely manner to produce financial
      statements which present fairly the financial condition, results of operations
      and cash flows of the Company for the respective periods being
      presented.





**Development
      Stage Enterprise**





The
      Company is considered a Development Stage Enterprise in that principal
      operations have not commenced and principal operations have not generated any
      revenue. During the development stage, the Company devotes most of its
      activities toward establishing business and raising capital.





**Going
      Concern Uncertainty**





The
      accompanying financial statements have been prepared in conformity with
      accounting principles generally accepted in the United States of America, which
      contemplate continuation of the Company as a going concern. As reflected in
      the
      accompanying financial statements, the Company has had recurring losses and
      negative cash flows from operations, and negative working capital. These factors
      raise substantial doubt about the Company's ability to continue as a going
      concern. Without realization of additional capital, it would be unlikely for
      the
      Company to continue as a going concern. The financial statements do not include
      any adjustments relating to the recoverability and classification of recorded
      asset amounts, or amounts and classification of liabilities that might be
      necessary should the Company be unable to continue its existence.





**Use
      of Estimates**





The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements and the reported amounts of revenue and expenses during
      the reporting period. Actual results could differ from those
      estimates.


8
 
 **RENEWABLE
        ENERGY RESOURCES, INC.**
 **NOTES
        TO FINANCIAL STATEMENTS**


**NOTE
      1 - DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES -
      continued**




**Fair
      Value of Financial Instruments**





The
      carrying amount of cash, accounts payable, notes payable and accrued
      liabilities, as applicable, approximates fair value due to the short term nature
      of these items in accordance with the provisions of SFAS no. 157 “Disclosures
      about Fair Value of Financial Instruments”.





**Cash
      and Cash Equivalents**





The
      Company considers all highly liquid investments purchased with original
      maturities of three months or less to be cash equivalents.





**Concentration
      of Credit Risk**





The
      Company places its cash in what it believes to be credit-worthy financial
      institutions. However, cash balances may exceed FDIC insured levels at various
      times during the year. There were no bank balances exceeding insured limits
      at
      December 31, 2006.





**Revenue**





There
      was
      no revenue generated in the years ended December 31, 2006 and 2005 or for the
      nine months ended September 30, 2007.





**Income
      Taxes**





Income
      taxes are provided for based on the liability method of accounting pursuant
      to
      Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for
      Income Taxes.” Deferred income taxes, if any, are recorded, using enacted tax
      rates expected to apply, to reflect the tax consequences on future years of
      differences between the tax bases of assets and liabilities and their financial
      reporting amounts at each year-end.





**Loss
      Per Share**





The
      Company calculates earnings per share in accordance with SFAS No. 128, "Earnings
      Per Share," which requires presentation of basic earnings per share ("Basic
      EPS") and diluted earnings per share ("Diluted EPS"). The computation of Basic
      EPS is computed by dividing loss available to common stockholders by the
      weighted average number of outstanding common shares during the period. Diluted
      EPS gives effect to all dilutive potential common shares outstanding during
      the
      period. The computation of Diluted EPS does not assume conversion, exercise
      or
      contingent exercise of securities that would have an anti-dilutive effect on
      earnings. As of December 31, 2006, there were no stock options and 3,107,497
      warrants outstanding.





**Stock
      Based Compensation**





The
      Company is subject to the provisions of SFAS No. 123 "Accounting for Stock-Based
      Compensation," which prescribes the recognition of compensation expense based
      on
      the fair value of options on the grant date. SFAS No. 123 allows companies
      to
      continue applying APB 25 if certain pro forma disclosures are made assuming
      hypothetical fair value method, for which the Company uses the Black-Scholes
      option-pricing model.





For
      non-employee stock based compensation, the Company recognizes an expense in
      accordance with SFAS No. 123 and values the equity securities based on the
      fair
      value of the security on the date of grant. For stock-based awards the value
      is
      based on the market value for the stock on the date of grant and if the stock
      has restrictions as to transferability a discount is provided for lack of
      tradability. Stock option awards are valued using the Black-Scholes
      option-pricing model.





The
      Company uses the fair value based method of accounting for its stock option
      plans. Effective January 1, 2006, the Company adopted SFAS No. 123 (Revised
      2004), *Share-Based Payments*, which requires companies to expense stock
      options and other share-based payments. SFAS No. 123R supersedes SFAS No. 123,
      which permitted either expensing stock options or providing pro forma
      disclosure. The Company adopted the modified prospective application transition
      method as proscribed by SFAS No. 123R, which applies to all new awards and
      to
      awards granted, modified, canceled, or repurchased after January 1, 2006, as
      well as the unvested portion of the prior awards. The adoption of SFAS No.
      123R
      resulted in no changes to the 2006 or prior financial statement amounts or
      disclosures.





**Advertising**





The
      Company expenses advertising costs as incurred. The Company had no advertising
      expense in the nine months ended September 30, 2007.


9
 
 **RENEWABLE
        ENERGY RESOURCES, INC.**
 **NOTES
        TO FINANCIAL STATEMENTS**


**NOTE
      1 - DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES -
      continued**




**Recently
      Issued Accounting Pronouncements**





Management
      has not identified any new accounting pronouncements that are expected to a
      material effect on the Company’s financial statements.







**NOTE
      2 - GOING CONCERN CONSIDERATION**





Since
      its
      inception, the Company has suffered recurring losses from operations and has
      been dependent on existing stockholders and new investors to provide the cash
      resources to sustain its operations. During the year ended December 31, 2006
      and
      2005, the Company reported net losses of $7,045,255 and $2,813,204,
      respectively.





The
      Company’s long-term viability as a going concern is dependent on certain key
      factors, as follows:





-
            The
                Company’s ability to obtain adequate sources of outside financing to
                support near term operations and to allow the Company to continue
                forward
                with current strategic plans.





-
            The
                Company’s ability to ultimately achieve adequate profitability and cash
                flows to sustain continuing
                operations.







**NOTE
      3 - RELATED PARTY TRANSACTIONS**





No
      related party transactions.







**NOTE
      4 - STOCKHOLDERS' DEFICIENCY**





On
      October 12, 2005, 7,400,000 shares were issued for the comprehensive Agreement
      for Licensing, Joint Venture Agreement, and Manufacturing Agreement with Regent
      Machine Products, LLC. Additionally, in the quarter ended September 30, 2006,
      2,500,000 shares were issued under this agreement and for the quarter ended
      March, 31, 2007, 1,500,000 shares of our restricted common stock were issued
      under this agreement. A total of 11,400,000 shares have been issued under this
      agreement.





During
      the year ended December 31, 2002, HSI placed 2,813,180 shares of its common
      stock in an escrow account. These shares are contingently issuable as they
      are
      to be issued to creditors as part of a plan to negotiate Company obligations
      through an intermediary. During the year ended December 31, 2003, the Company
      negotiated a settlement in which 249,905 shares of common stock were issued
      out
      of escrow to settle a creditor obligation that had an original balance of
      $65,000. The settlement was recorded at the trading value of the shares on
      the
      date of settlement. That value was $299,866. The result was an additional
      expense of $234,866 charged to operations for the year ended December 31, 2003.
      During the year ended December 31, 2004 and December 31, 2005, the Company
      did
      not issued any of these shares to creditors. No shares were issued in
      2006.





On
      July
      29, 2004, the Company entered into a Stock Purchase Agreement ("Purchase
      Agreement"), effective October 7, 2004, with Langley Park Investments Plc
      ("Langley"), a corporation organized under the laws of England and Wales which
      is admitted to trade on the London Stock Exchange ("LSE") as an investment
      trust. Pursuant to the Purchase Agreement, the Company sold 2,375,000 shares
      (post-split) of its common stock ("Company Stock") to Langley for a total
      purchase price of approximately $1,780,000.





Langley
      paid the purchase price by delivering 882,778 Ordinary Shares of Langley
      ("Langley Shares") to the Company with a value of one (1.00) British Pound
      Sterling (approximately U.S. $1.80) per share. The Company issued the Company
      Stock to Langley. Both the Company Stock and the Langley Shares were initially
      placed into escrow, including fifty percent (50%) of the Langley Shares to
      be
      deposited into escrow as Downside Price Protection (the "Langley Escrow
      Shares").





On
      November 3, 2004, the Company sold 441,389 shares of Langley Park Investment,
      (London Exchange: LPI) for $193,388 (approximately .44 cents per share). This
      was the first liquidation pursuant to the Agreement. These gross proceeds
      represented a loss of $697,237 based upon the difference between the selling
      price on November 3, 2004 and the Company’s trading price on July 29,
      2004.





The
      balance of the 441,389 shares owned by the Company are valued at the market
      price of the Langley Park Investments Plc as listed on the London Stock Exchange
      ("LSE") with the difference being carried as a component of comprehensive income
      in the equity section of the Company’s financial statements.




10
 
 **RENEWABLE
        ENERGY RESOURCES, INC.**
 **NOTES
        TO FINANCIAL STATEMENTS**


**NOTE
      4 - STOCKHOLDERS' DEFICIENCY - continued**




Pursuant
      to the terms and conditions of the Purchase
      Agreement, on the two year anniversary of the Purchase Agreement (Two Year
      Anniversary), the market value of the Company's common stock will be compared
      to
      the purchase price of the Company Stock under the Purchase Agreement "Market
      Value” is defined as the average of the ten (10) closing bid prices per share of
      the Company's common stock during the ten (10) trading days immediately
      preceding the Two Year Anniversary of the Agreement. If the Market Value of
      the
      Company's common stock on the Two Year Anniversary is the same or higher than
      purchase price per share, then at that time, the Company will receive all of
      the
      Langley Escrow Shares. If the Market Value on the Two Year Anniversary is less
      than purchase price per share, then for each percentage point decline in value,
      the Company must sell a corresponding percentage of the Langley Escrow Shares
      back to Langley for nominal consideration, up to the maximum number of Langley
      Escrow Shares, and the balance of the Langley Escrow Shares will be released
      from escrow to the Company. In October 2006 the company sold 413,935 shares
      for
      proceeds of $7,820. The company currently holds 27,454 shares.


The
      Company was approached with the investment by Langley, at a time when the two
      year lock up of the shares to be issued was voted on by the Board of Directors
      as being acceptable for purposes of investment given the stock price and
      discount proposed by Langley. The escrowed shares were analyzed on December
      31,
      2004 and accounted for as if they would eventually be sold at the two year
      mark
      as investment holding period. At the time of the investment and at the time
      of
      the accounting determination, management believed that the Company would meet
      the criteria as set forth in the Langley agreement which would allow the sale
      of
      the remaining shares in the fund. The Company recorded an additional unrealized
      loss of $100,409 on this investment at December 31, 2005 due to this provision.
      The additional write down was calculated on the basis of the quoted value of
      the
      Langley shares less the pro-rata value of shares that would be returned to
      Langley based on the trading value of the Company's common stock at December
      31,
      2005.







**NOTE
      5 - COMMON AND PREFERRED STOCK**





The
      Company’s Articles of Incorporation authorize the issuance of up to 200,000,000
      shares of common stock, with a par value of $.001 and the issuance of up to
      70,000,000 shares of preferred stock, with a par value of $.001.





**COMMON
      STOCK**




During
      the quarter ended September 30, 2007, the Company engaged in various
      transactions affecting stockholders’ equity, as follows:





The
      Company issues shares of common stock from time to time to compensate
      consultants as consideration for services rendered. These shares are valued
      at
      the trading value on the date of grant or per contract. For the quarter ended
      September 30, 2007, 725,307 shares of S-8 common stock were issued to one
      individual as payment for services totaling $14,440.





In
      July
      of 2007, the company issued 50,000 shares of restricted common stock under
      Regulation S of the Securities Act of 1933 to a non-US individual for $1,394.
      In
      July the company converted a $10,000 loan from a stock holder into 600,000
      shares of its restricted common shares. In August of 2007, the company issued
      333,333 shares of it restricted common shares according to the terms of the
      $750,000 Note.





**PREFERRED
      STOCK**




The
      Company's has designated the issuance of up to 70,000,000 shares of Series
      A
      Convertible Preferred Stock, with a par value of $.001. Series A Convertible
      Preferred Stock can be exchanged at the option of the stockholder into shares
      of
      common stock at the rate of one share of Series A Convertible Preferred Stock
      for one share of Common Stock at any time after the first anniversary of the
      original date of issuance. The Series A Convertible Preferred Stock shall rank,
      as to dividends and upon liquidation senior and prior to the Company’s Common
      Stock and to all other classes or class of stock issued by the Company, except
      as otherwise approved by the affirmative vote or consent of the holders of
      a
      majority of the shares of Series A Convertible Preferred Stock. In addition,
      so
      long as any share of Series A Convertible Preferred Stock shall be outstanding,
      the holders of such convertible preferred stock shall be entitled to receive
      out
      of any funds legally available, when, as and if declared by the Board of
      Directors of the Company, preferential dividends at the rate of ten percent
      (10%) per annum, payable upon the first anniversary date of the original issue
      date, then quarterly with payment to be made in either cash or in the issuance
      of additional share of Series A Convertible Preferred Stock. Such dividends
      shall be cumulative and begin to accrue from the original issue date, whether
      or
      not declared and whether or not there shall be net profits or net assets of
      the
      Company legally available for the payment of those dividends. To date, no
      dividend has been declared by the Board of Directors. The Series A Convertible
      Preferred stockholders shall be entitled to vote on all matters requiring a
      shareholder vote of the Company. Each Series A Convertible Preferred shareholder
      of record shall have one vote for each share of Series A Convertible Preferred
      stock outstanding.  On September 30, 2007, there were 885,180 shares
      of preferred stock outstanding.




There
      was
      $22,130 in unpaid and undeclared cumulative dividends accrued during the
      quarter ended September 30, 2007. Total cumulative dividends unpaid and
      undeclared as of September 30, 2007 are $243,425.









11
 **RENEWABLE
            ENERGY RESOURCES, INC.**
 **NOTES
            TO FINANCIAL STATEMENTS**




**NOTE
      6 - PROPERTY AND EQUIPMENT**





Furniture
      and equipment is stated at cost less accumulated depreciation. Depreciation
      is
      recorded on a straight-line basis over the estimated useful lives of the assets
      of 3 to 5 years. Depreciation expense for the quarter ended September 30, 2007
      and 2006 was $1,278 and $980 respectively.





Property
      and equipment consisted of the following at September 30, 2007.




Computer
                  and equipment
            
            $
            41,266Less
                  accumulated depreciation
            
            
            (31,215)Furniture
                  and equipment, net
            
            $
            10,051







**NOTE
      7 - STOCK OPTIONS**





There
      were no stock options granted nor were there any pro forma effect of the vesting
      of options granted in previous periods in the quarters ended September 30,
      2007
      and 2006.







**NOTE
      8 -INCOME TAXES**





The
      Company has no income tax provision or benefit in the periods ended December
      31,
      2006 and 2005. Prior to the merger transaction with HSI the Company elected
      to
      be treated as an S-Corporation as prescribed under Section 1362 of the Internal
      Revenue Code.





During
      the quarter ended September 30, 2007, the Company generated a tax benefit
      related to operating loss carry forwards of $62,068 that was equally offset
      by a
      valuation allowance.





At
      December 31, 2006, the Company had federal net operating loss carry forwards
      of
      approximately $5,088,487 that expire from 2009 to 2026 and state net operating
      loss carry forwards of approximately $746,311 that expire from 2007 to 2010.
      Substantially the entire deferred income tax asset of $5,834,798 relates to
      income tax benefits from net operating loss carry forwards. Because of the
      change of control issues under Section 382 of the Internal Revenue Code and
      the
      current uncertainty of realizing the benefits of the tax carry forward, an
      equal
      valuation allowance has been established. The full realization of the tax
      benefit associated with the carry forward depends predominantly upon the
      Company's ability to generate taxable income during the carry forward
      period.





Significant
      components of the Company’s deferred tax assets were as follows:





2006
            
            
            
            2005Net
                  operating losses
            
            $
            13,569,300
            
            
            
            $
            6,524,044Total
                  deferred tax assets
            
            
            5,834,798
            
            
            
            
            2,805,338Valuation
                  allowance
            
            
            (5,834,798
            )
            
            
            
            (2,805,338
            )Net
                  deferred tax assets
            
            $
            -
            
            
            
            $
            -








The
      valuation allowance increased by $3,029,460 during the year ended December
      31,
      2006.







**NOTE
      9 - COMMITMENTS AND CONTINGENCIES**





Prior
      to
      the merger of Internal Command with Home Services, the Company (HSVI) had
      incurred additional deficits in cash flow from operating activities. The Company
      had accrued approximately $906,900 in obligations to vendors, consultants and
      former employees. We are attempting to settle these obligations, primarily
      through the issuance of common stock. Management believes we will ultimately
      settle these obligations for no more than amounts accrued at December 31, 2004.
      As a part of the Merger Agreement with Internal Command International, Inc.
      (ICI), our former Chief Executive Officer of HSVI, Jay Budd, had and did affirm
      that the outstanding debts of HSVI have been properly structured for management
      of the debt post-merger; namely, that the debt was in the hands of suitable
      professional debt management team, including Fletcher & Associates, and
      Harry J. Miller, PLLC; that there has been set aside as part of the issued
      common stock for obligation and satisfaction of the debt; and that the incoming
      principals of ICI would be held harmless for this debt. In the summer of 2005,
      we released Harry Miller, PLLC and Fletcher & Associates from their duties
      as debt managers, taking control of such matters internally. To date, the shares
      issued to secure these debts are unissued, and held by both Harry Miller PLLC
      in
      trust, and with the Company, should the need arise for settlement of any such
      debts, if communication and demand for the same is made. To date, no such
      verified debt demands have been made. Any settlements will be valued at the
      fair
      value of the stock at the time the settlement is reached, or some other amount
      as negotiated.





12
 
 **RENEWABLE
          ENERGY RESOURCES, INC.**
 **NOTES
          TO FINANCIAL STATEMENTS**
  **NOTE
        10 - LOSS PER SHARE**
 
 Outstanding
        warrants were not considered in the calculation for diluted earnings per
        share
        for the quarters ended September 30, 2007
        and
        2006 because the effect of their inclusion would be
        anti-dilutive.





Warrants
      to purchase 3,107,497 shares of common stock were outstanding and excluded
      from
      the loss per share calculation at September 30, 2007.







**NOTE
      11 - INVESTMENTS**





During
      the year ended December 31, 2004, the Company entered into a Stock Purchase
      Agreement to acquire 882,778 shares of Langley Park Investments Plc (Langley),
      a
      corporation organized under the laws of England and Wales which is admitted
      to
      trade on the London Stock Exchange (LSE) as an investment trust. Pursuant to
      the
      Purchase Agreement, the Company sold 2,375,000 shares (post-split) of its common
      stock (Company Stock) to Langley for a total purchase price of $1,781,250 based
      on the trading value of the Company’s shares delivered to Langley. The Company
      sold one half of its Langley holdings during the year ended December 31,
      2004.





The
      Company currently classifies all investment securities as available-for-sale.
      These securities are presented at their estimated fair value. Unrealized gains
      and losses on such securities, net of the related income tax effect, are
      excluded from earnings and reported as a separate component of stockholders’
equity until realized. Realized gains and losses are included in earnings and
      are derived using the specific identification method for determining the cost
      of
      securities sold.





Investment
      in Langley and Kinetic securities consisted of the following at December 31,
      2006:




Cost
            Gross
                Gains
            Unrealized
                Losses
            Impairment
              Write-down
            Fair
                ValueLangley
              
              Kinetic
            $
                890,625
              
              $187,500
            $
                15,817
              
              $
                -
            $
                83,786
              
              $
                -
            $
                (784,718)
              
              $
                (118,750)
            $
                6,304
              
              $
                68,750





During
      the year ended December 31, 2005, the Company determined that the decline in
      value of the Langley shares was other than temporary. However, there was no
      basis to determine a forecasted recovery of fair value up to (or beyond) the
      cost of the investment. Therefore, the Company wrote the carrying value down
      by
      $784,718 to the investment's quoted trading value at September 30,
      2005.





Proceeds
      from sales of equity securities were $193,388 and gross realized losses were
      $697,237 for the year ended December 31, 2004. The fair value at December 31,
      2005 is determined based on the trading price of Langley and translated to
      U.S.
      dollars at the exchange rate on December 31, 2005.





The
      value
      on December 31, 2006 is determined based on the trading price of Langley and
      translated to U.S. dollars at the exchange rate on December 31,
      2006.





During
      the year ended December 31, 2004, the Company invested in Kinetic Energy
      Systems, Inc. (“Kinetic”) by issuing 1,250,000 shares of its common stock for
      approximately 20% of Kinetic. The value of the investment was determined to
      be
      $187,500 based on the trading price of the Company’s common stock at the time of
      the agreement. The Company intends to jointly develop and market complimentary
      technologies with Kinetic. The Company classifies its investment in Kinetic
      as
      available-for-sale and has carried its investment at cost. The investment was
      written down by $118,750 on September 30 2005 to reflect slower than anticipated
      development progress by Kinetic. The Company owns 2,000,000 voting preferred
      shares of Kinetic Energy Systems, Inc. Kinetic has 10,000,000 preferred shares
      issued and outstanding and 1,000,000 common shares outstanding. The Company’s
      interest in Kinetic is approximately 18%. The Company exercises no management
      control and therefore, the cost method was used.







**NOTE
      12 - SHAREHOLDER LOANS**





As
      of
      September 30, 2007, the Company had outstanding loans from one director totaling
      $24,500, and outstanding loans totaling $2,500 from one of its officers.
****The loans have no repayment terms.







**NOTE
      13 - LEGAL**




On
      March
      14, 2007, a lawsuit was filed in the Circuit Court of the Thirteenth Judicial
      Circuit of the State of Florida, in and for Hillsborough County Circuit Civil
      Division (Case No.: 07-003056). The Plaintiff in the case is Lior Segal, our
      former CFO and the defendant is Renewable Energy Resources, Inc. Mr. Segal
      claims he is owed compensation of $4,500 for his work while employed by us.
      In
      addition, Mr. Segal had previously accepted shares of restricted stock in lieu
      of cash compensation. The complaint alleges that he would now like $22,000
      in
      cash compensation in lieu of restricted stock. Management believes that this
      case is without merit and the $26,500 is not accrued in the financial statements
      as management has determined that this payment currently is not yet probable.
      In
      April 2007, we filed a motion for dismissal.


13
 
 **RENEWABLE
        ENERGY RESOURCES, INC.**
 **NOTES
        TO FINANCIAL STATEMENTS**


**NOTE 
      14 -  LOAN AGREEMENT**




On
      August
      3, 2007, Renewable Energy Resources, Inc. (“Renewable Energy”) executed a Loan
      Agreement (“Loan”) for Seven Hundred Fifty Thousand dollars ($750,000.00) to be
      used to fund the Springfield Energy Project, LLC (“SEP”).  The term of
      the Loan is five years and interest on the unpaid principal amount of the Loan
      shall accrue monthly at a rate equal to eighteen percent (18%) per
      annum.  Accrued interest shall be paid to the Lender quarterly, based
      on a calendar year and shall be cumulative.  Repayment on the
      principal may begin after two (2) years, at which time the Lender may elect
      to
      call for the repayment of up to twenty-five percent (25%) of the original
      principal.  Renewable Energy shall have the right to prepay at any
      time, without penalty or premium, all or any portion of the outstanding
      principal of this Loan.  In addition, Renewable Energy shall grant to
      Lender shares of its common stock, subject to SEC Rule 144, equal to five
      percent (5%) of the value of the Loan at the closing date. The loan is
      guaranteed by the Springfield Energy Project.  In addition, Mercatech
      Private Equity Management, Ltd. and Mercatech, Inc. guarantee the loan by a
      Secured Medium Term Revolving facility in the amount of one hundred fifty
      million euros (e150,000,000).  Such guarantee shall be enforceable as
      an interest against the credit facility above, with all rights and obligations
      of Renewable Energy and SEP under the loan agreement to be undertaken by
      Mercatech and enforceable against them as a secondary guarantor, if such a
      default shall occur under the Loan Agreement.




On
      August
      3, 2007, Renewable Energy executed an amendment to the Loan Agreement (“Addendum
      to Loan Agreement”) to allow for the use of the first $100,000 for necessary
      corporate operations of Renewable Energy.  SEP shall be the recipient
      of direct investment for the remaining portion of the monies.  On
      August 16, 2007, the company drew down an additional $50,000
      to  invest in SEP.





NOTE 
15
      -  SUBSEQUENT
      EVENTS




On
      November 13, 2007, the company received $25,000 under the terms of the
      Regulation S subscription agreement.






















































14




**Item
      2. Management's Discussion and Analysis or Plan of
      Operation.**





**DESCRIPTION
      OF BUSINESS**





**GENERAL
      INFORMATION ABOUT RENEWABLE ENERGY RESOURCES**




Renewable
      Energy Resources, Inc. (the “Company”) was organized on December 31, 1996 as
      Tel-Voice Communications, Inc., a Nevada Corporation. On January 6, 2003, the
      Company changed its name to Home Services International, Inc. On January 2,
      2004, we entered into a merger agreement with Internal Command International,
      Inc. and on January 13, 2004, the name of the Company was changed to Internal
      Hydro International, Inc. Our domicile was moved to Florida on February 4,
      2004.
      On February 20, 2007, we changed our name to Renewable Energy Resources, Inc.
      We
      are a publicly traded company listed on the OTC Electronic Bulletin Board under
      the symbol "RENW". Our offices are located at 334 S. Hyde Park Ave., Tampa,
      Florida 33606. Our website is www.renw.com.





**HISTORY
      OF COMPANY**





Tel-Voice
      Communications, Inc. ("Tel-Voice") was incorporated under the laws of the State
      of Nevada on December 31, 1996 to engage in any lawful corporate activity,
      including, but not limited to, selected mergers and acquisitions. From
      1996-2000, Tel-Voice was a development stage company with no business activity.
      On September 30, 2000, Tel-Voice acquired Smartdotcom, Inc. ("SDC") in a
      transaction accounted for as a reverse merger. The Company retained the name
      Tel-Voice Communications, Inc. SDC had developed a technology that provided
      private electronic networks for labor unions and integrated communities, both
      of
      which included subscribers of the unions and communities. SDC intended to
      provide the hardware, software and technical support required to setup and
      maintains the networks; however, SDC was never able to grow due to liquidity
      issues.





In
      December 2002, we addressed the liquidity problems, discontinued the operations
      of SDC and determined that we would abandon this business plan. On December
      16,
      2002, we closed a stock for debt exchange with our creditors effective on
      December 11, 2002 whereby all of the outstanding debt was converted to
      unregistered common stock at a conversion rate of one (1) share of common stock
      for each $0.45 of debt. In addition, on January 10, 2003, a majority of the
      shareholders approved (i) a reverse split of 28.9 shares of the old common
      stock
      for 1 share of new common stock effective January 13, 2003, (ii) the acquisition
      of a private entity name Home Services, Inc. and (iii) a name change to Home
      Services International, Inc.





Home
      Services International, Inc. (“HSVI”) intended to act as a holding company for
      service businesses related to home building and home buying that wanted to
      expand into national markets. HSVI intended to acquire, establish joint ventures
      and develop such businesses.





However,
      HSVI was presented with a business plan for a unique alternative energy
      technology by the management of Internal Command International (“ICI”), a
      Florida based private entity. HSVI felt that the Energy Commander technology
      for
      low impact hydro power production presented a unique opportunity. HSVI saw
      ICI’s
      technology as fulfilling a unique niche in the energy market. Thus, HSVI sought
      to acquire the technology and related expertise through the reverse merger
      process.





On
      January 2, 2004, we entered into a merger agreement with HSVI. HSVI issued
      27,500,000 shares of its Series A Preferred stock to the shareholders of ICI.
      In
      connection with this acquisition, the Company’s name was changed to Internal
      Hydro International, Inc. (“IHDR”). On February 4, 2004, the Company’s domicile
      was changed to Florida. ICI was not a related party.





As
      a
      result of the merger transaction with HSVI, the former Company stockholders
      obtained control of HSVI's voting stock. For financial accounting purposes,
      the
      acquisition was a reverse acquisition of HSVI, under the purchase method of
      accounting, and was treated as a recapitalization with the Company as the
      acquirer.





On
      February 20, 2007 the Company changed its name to Renewable Energy Resources,
      Inc. We are a publicly traded company listed on the OTC Electronic Bulletin
      Board under the symbol "RENW". The symbol and name change reflect the Company’s
      broader range of business endeavors to include the development of energy, green
      energy and biofuel projects in addition to the production, marketing and sales
      of the Energy Commander V.







15




**Item
      2. Management's Discussion and Analysis or Plan of Operation. -
      continued**




**BUSINESS
      STRATEGY**





We
      are a
      development stage enterprise. We intend to manufacture and distribute
      alternative energy products that use water pressure flow to generate
      electricity. We are currently finalizing production units of the Energy
      Commander Version Five ("EC V") low impact hydro units. We entered into an
      a
      Licensing, Joint Venture Agreement, and Manufacturing Agreement on October
      12,
      2005 with Regent Machine Products, LLC for the exclusive rights to the
      HydroCam/EC V technology developed by Regent Machine Products, LLC. Anthony
      Pecoraro, our former Chairman of the Board of Directors and former Vice
      President of New Technology Development, is the Vice President and Co-Founder
      of
      Regent Machine Products, LLC.





We
      have
      now entered into the preproduction and fielding testing phase of our business
      plan. We anticipate producing ten EC V units in the next few months. These
      units
      will be deployed in North America and Europe in applications with natural water
      flows such as pipelines, rivers, aqueducts and dams. Additionally, we are
      identifying alternative energy technologies that we can license or acquire
      as
      additional revenue generating divisions.




Manufacture
      of the first EC V units will be done by our joint venture partner, Cm2, located
      in Terni, Italy, about one hour north of Rome. Cm2 manufactures large industrial
      electrical components for utilities and other industries, including
      transformers, VM and LV electrical switchboards, auxiliaries and conduits for
      big transformers, cooling ducts, conduit bars, motors and generators. With
      on
      staff engineers, marketing and full production capabilities, Cm2 is well suited
      to handle the Energy Commander technology. Cm2 is ISO 9001 certified, and IQ
      NET
      certified for the production, maintenance and installation of all electrical
      systems, as well as maintaining certifications in the same for quality control.
      RINA (Italian Air and Shipping Registry) certifies that Cm2 works in accordance
      with ISO 9001 quality regulations in the making of the following products
      process services: Planning, production, installation and assistance of civil
      and
      industrial technological systems for electric, electronic and mechanical
      sectors. Cm2's clients include Siemens, Colgate Palmolive Europe, Alitalia
      and
      every large Italian utility.




Cm2
      has
      dedicated 800,000 sq. feet for hosting the final development and starting the
      production line for the EC V. Cm2 has also reached an agreement with
      Politecnico, one of the foremost Italian universities, for its endorsement
      of
      the technology under a transfer plan that should assist Cm2 in obtaining
      European Union (EU) grants, and contributions from the Italian state and from
      the regional governments.




We
      have a
      permanent assignment of the patent for the Energy Commander technology from
      the
      inventor, Rianey Nelson. Other intellectual property patents on the new
      technology will be generated into patent pending status before and commensurate
      with fielding. Additional patents will, in the opinion of management, be
      generated from improvements in the technology.





The
      EC V
      has several advantages over all other alternative energy technologies. The
      EC V
      system represents the first time, to our knowledge, that a technology used
      the
      positive displacement of water pressure to create mechanical force to create
      electricity. The advantages of the EC are numerous. Primarily, the system is
      designed for installation to take advantage of waste flows of water. Therefore,
      the cost of the energy to produce electricity will be virtually, if not
      literally, free. Second, the EC units will take up very little space; an EC
      unit
      takes up 1/100 the space of a solar array to gain the same amount of electrical
      output. Third, the system will sell for approximately $45,000, or $1500.00
      per
      KW, which is competitive with other power generation devices. This means either
      high profit or low electrical cost making for a more competitive market
      entry.





Solar,
      wind, biomass and large flow hydro-power sources are very different than the
      EC
      technology, and these alternative energy sources can co-exist with the EC V.
      We
      are not competing with these segments because our source of power is different
      than solar, wind, geothermal (although the system can use geothermal outlets
      as
      power sources) or biomass. The EC V technology is related to traditional
      hydropower only in the sense that it can use water flows; however, the flows
      of
      water necessary for traditional hydropower are much greater—our technology is
      low flow (typically a six-inch pipe is connected to the unit).





Our
      goal
      is to become a contributor to the renewable energy segment of the United States
      and European economies. The demand for alternative energy sources has increased
      significantly as oil prices continue to remain high. Our EC technology provides
      reliable electricity at a lower cost than current alternatives, and does so
      with
      free flows of wasted water or gas.





We
      are
      targeting customers and industries with high electric utility costs and access
      to flow pressures of gas or fluid. We are placing special emphasis on the
      textile, oil and gas refining and drilling, home development, agricultural,
      and
      poultry, all of which have communicated great interest in placement of units.
      We
      are also targeting municipal, county, state and federal government facilities,
      including the U.S. military.


16


**Item
      2. Management's Discussion and Analysis or Plan of Operation. -
      continued**




BUSINESS
      STRATEGY -
      continued





The
      EC
      technology will have many applications in rural and third world areas. In the
      United States alone, there are over 70,000 dams that do not produce electricity,
      but many are capable of doing so with no environmental impact. The technology
      has numerous applications in third world areas where ready access to natural
      flow exists. Typically these areas will not support conventional hydropower
      systems but will support constant 24 hour a day power from the EC.





We
      intend
      to market the EC V system through a distributor network. We are also seeking
      to
      acquire similar technologies that fit well with the EC V.





However,
      since inception, we have suffered recurring losses from operations and have
      been
      dependent on existing stockholders and new investors to provide the cash
      resources to sustain our operations.





Our
      long-term viability as a going concern is dependent on certain key factors,
      as
      follows:





-
            Our
                ability to continue to obtain sources of outside
                financing.





-
            Our
                ability to increase profitability and sustain a cash flow level that
                will
                ensure support for continuing
                operations.





**ACQUSITIONS
      OF SIMILAR TECHNOLOGIES**





CM2
      AGREEMENT:





Cm2
      is a
      producer and supplier of electrical systems for European utilities and
      industrial users. In February 2005, we**entered into a joint
      venture agreement for the production, distribution and sale of our Energy
      Commander units to the (EU). Under the performance based contract, Cm2 will
      manufacture units in Italy for distribution, sale, and lease into Europe as
      well
      as provide engineering, production, marketing, distribution, and service. We
      have no significant capital expenditure requirements in the agreement and will
      receive revenue in various forms.





Cm2
      will
      distribute and service the units in Europe through a joint venture entity.
      Energy credits in the European Union are expected to be about 3 to 10 times
      higher than for units placed in the U.S. Cm2’s experience in the European energy
      market and ability to produce, sell, and maintain the units, gives us a strong
      partner for the EU.





KINETIC
      ENERGY





On
      July
      8, 2004, we entered into a strategic partnership agreement with Kinetic Energy
      Systems, Inc. (“Kinetic”), a privately held Florida Corporation. Kinetic has
      developed patented hydro and wind technologies, including the Hydrokinetic
      Generator, Offshore Energy Platform, KESC Bowsprit Generator and the KESC Tidal
      Generator. These technologies generate electrical power or hydrogen using
      kinetic energy from moving water such as tides and wind. We issued 1,250,000
      shares of treasury stock for 20% of the shares of the private company. We also
      agreed to assist in the development of Kinetic’s technology and have a license
      for the underwater and over water power generation. The Hydrokinetic Generator
      is at the prototype and engineering stage. The Offshore Energy Platform is
      at
      the prototype and engineering stage. The KESC Bowsprit Generator at the
      prototype and engineering stage. The Bowsprit is being designed for prototyping
      in the dual role of hydrogen production. The KESC Tidal Generator is at the
      engineering and prototype stage.





We
      intend
      to help market and develop Kinetic products in Europe and the United States.
      However, our ability to support Kinetic’s efforts is tied to our financial
      ability to do so. We intend to help introduce Kinetic’s products to European
      entities for development and marketing.





THE
      SPRINGFIELD ENERGY PROJECT





On
      September 25, 2006, we entered into an agreement with Wastech, Inc. (WTCH.PK)
      to
      form the Springfield Energy Project (“SEP”). SEP is a joint venture with WTCH to
      acquire an old coalmine complex in Illinois. Over many years, million of tons
      of
      waste coal were deposited in a slurry area on the site. Other coal waste was
      pushed into gob piles. (Gob is the waste coal from bituminous coal mining
      regions). The slurry area is not covered or reclaimed because the coal fines
      were disposed before current reclamation regulations were in effect. The site’s
      permit allows the removal of the coal fines and also the disposal of coal
      combustion waste (fly ash) at the site. The sale of coal fines and the
      collection of tip fees to dispose of ash is the primary source of revenue for
      the project.





Due
      to
      new scrubber technology at electrical generating facilities, coal fines have
      become a desirable commodity. The coarse, free-flowing coal fines in the slurry
      area can be sold as fuel in fluidized bed boilers or specially designed
      pulverized coal boilers. Potential customers for the coal fines are located
      within a short distance of the project. Negotiations with potential customers
      for long-term coal purchase agreements and ash disposal agreements are currently
      underway.


17




Item 2. Management's Discussion and Analysis or
      Plan
      of Operation. - continued




**ACQUSITIONS
      OF SIMILAR TECHNOLOGIES - continued**




On
      August
      3, 2007, Renewable Energy Resources, Inc. (“Renewable Energy”) executed a Loan
      Agreement (“Loan”) for Seven Hundred Fifty Thousand dollars ($750,000.00) to be
      used to fund the Springfield Energy Project, LLC (“SEP”).  The term of
      the Loan is five years and interest on the unpaid principal amount of the Loan
      shall accrue monthly at a rate equal to eighteen percent (18%) per
      annum.  Accrued interest shall be paid to the Lender quarterly, based
      on a calendar year and shall be cumulative.  Repayment on the
      principal may begin after two (2) years, at which time the Lender may elect
      to
      call for the repayment of up to twenty-five percent (25%) of the original
      principal.  Renewable Energy shall have the right to prepay at any
      time, without penalty or premium, all or any portion of the outstanding
      principal of this Loan.  In addition, Renewable Energy shall grant to
      Lender shares of its common stock, subject to SEC Rule 144, equal to five
      percent (5%) of the value of the Loan at the closing date. The loan is
      guaranteed by the Springfield Energy Project.  In addition, Mercatech
      Private Equity Management, Ltd. and Mercatech, Inc. guarantee the loan by a
      Secured Medium Term Revolving facility in the amount of one hundred fifty
      million euros (e150,000,000) .  Such guarantee shall be enforceable as
      an interest against the credit facility above, with all rights and obligations
      of Renewable Energy and SEP under the loan agreement to be undertaken by
      Mercatech and enforceable against them as a secondary guarantor, if such a
      default shall occur under the Loan Agreement.




On
      August
      3, 2007, Renewable Energy executed an amendment to the Loan Agreement (“Addendum
      to Loan Agreement”) to allow for the use of the first $100,000 for necessary
      corporate operations of Renewable Energy.  SEP shall be the recipient
      of direct investment for the remaining portion of the monies.  On
      August 16, 2007 the company drew down an additional $50,000 for investment
      in
      SEP.





**RESULTS
      OF OPERATIONS**





Our
      operations during 2006 concentrated on the development of the EC V prototype.
      The EC V is smaller than the EC IV but capable of producing the same electrical
      output. The versions of the EC IV produced were four and six cylinder in line
      engines. The EC V is a 12-cylinder radial system that uses “slices” that are
      combined to produce 30 KW with a standard four slice array. Like the EC IV,
      the
      EC V is designed to accept a 65 p.s.i. flow. Unlike the EC IV, the radial
      cylinders on the EC V work on a common cam or shaft to drive a
      generator.





Progress
      on completing the EC V prototype was slower than anticipated. Some of the delay
      can be attributed to the sophisticated machining required for the radial design.
      Some of the delay occurred because of the availability of funding. Additionally,
      when the prototype was tested, some design issues materialized. These issues
      were resolved and the prototype tested during the last quarter of the year.
      The  testing of the EC V were positive with the EC V showing that it
      was capable of performing favorably in the  type of installations
      contemplated by us. Discussions to restart work on the EC IV in house are
      currently underway with the original inventor, Rianey Nelson.





In
      January 2007, the EC V prototype was shipped to our production partner, Cm2,
      in
      Italy. The prototype will undergo further design review with the goal of
      producing 10 commercial units during 2007. Some commercial units will remain
      in
      Europe for placement by Cm2 and the remaining units will be shipped to us for
      placement in the U.S.





During
      2006, we also sought to acquire technologies that fit well with our philosophy
      for renewable energy products. We explored technologies including tire
      remediation, ethanol and bio-diesel production, clean water technologies,
      hazardous waste technologies, and other renewable and critical use
      technologies.





**COMPARISON
      OF THREE MONTHS ENDED SEPTEMBER 30, 2007 TO THREE MONTHS ENDED SEPTEMBER 30,
      2006.**





Revenue
      for the three months ended September 30, 2007 and 2006 was $-0-.





General
      and administrative expenses for the three months ended September 30, 2007 of
      $147,043 decreased $416,911 compared to the general and administrative expenses
      for the three months ended September 30, 2006 which were $563,954. The reduction
      was primarily due to a reduction is the shares issued for services.





**COMPARISON
      OF NINE MONTHS ENDED SEPTEMBER 30, 2007 TO NINE MONTHS ENDED SEPTEMBER 30,
      2006.**





Revenue
      for the nine months ended September 30, 2007 and 2006 was $-0-.





General
      and administrative expenses for the nine months ended September 30, 2007 of
      $2,040,597 decreased $3,832,426 compared to the general and administrative
      expenses for the nine months ended September 30, 2006 which were
      $5,873,023.  The reduction was primarily due to a reduction is the
      shares issued for services.





**LIQUIDITY
      AND CAPITAL RESOURCES**




Our
      operating activities used cash in the amount of $98,023 for the quarter ended
      September 30, 2007. We will need additional private placements, debt financing
      or equity investment in order to participate fully and at the levels intended.
      There can be no assurance that any of the plans developed will produce cash
      flows sufficient to ensure long-term viability.


18


**Item
      2. Management's Discussion and Analysis or Plan of Operation. -
      continued**





**LIQUIDITY
      AND CAPITAL RESOURCES - continued**




The
      Company has incurred additional deficits in cash flow from operating activities.
      These deficits have been funded from loans from significant shareholders. The
      Company is in discussions with several capital organizations with a view to
      selling more common and preferred shares as a means of financing future capital
      needs. The company anticipates it will be successful in these discussions;
      however, there can be no assurances that the Company will be successful in
      doing
      so and will produce cash flows sufficient to ensure its long-term viability.
      The
      cash provided by financing activities increased by $48,100 from $109,100 for
      the
      quarter ended September 30, 2006 to $150,000 for the quarter ended September
      30,
      2007.





The
      SEP project is currently in the
      financing stage and we are negotiating with multiple sources to provide the
      funding. On August 3, 2007, Renewable Energy Resources, Inc. (“Renewable
      Energy”) executed a Loan Agreement (“Loan”) for Seven Hundred Fifty Thousand
      dollars ($750,000.00) to be used to fund the Springfield Energy Project, LLC
      (“SEP”).  The term of the Loan is five years and interest on the
      unpaid principal amount of the Loan shall accrue monthly at a rate equal to
      eighteen percent (18%) per annum.  Accrued interest shall be paid to
      the Lender quarterly, based on a calendar year and shall be
      cumulative.  Repayment on the principal may begin after two (2) years,
      at which time the Lender may elect to call for the repayment of up to
      twenty-five percent (25%) of the original principal.  Renewable Energy
      shall have the right to prepay at any time, without penalty or premium, all
      or
      any portion of the outstanding principal of this Loan.  In addition,
      Renewable Energy shall grant to Lender shares of its common stock, subject
      to
      SEC Rule 144, equal to five percent (5%) of the value of the Loan at the closing
      date. The loan is guaranteed by the Springfield Energy Project.  In
      addition, Mercatech Private Equity Management, Ltd. and Mercatech, Inc.
      guarantee the loan by a Secured Medium Term Revolving facility in the amount
      of
      one hundred fifty million euros (e150,000,000) .Such guarantee shall be
      enforceable as an interest against the credit facility above, with all rights
      and obligations of Renewable Energy and SEP under the loan agreement to be
      undertaken by Mercatech and enforceable against them as a secondary guarantor,
      if such a default shall occur under the Loan Agreement.




On
      August
      3, 2007, Renewable Energy executed an amendment to the Loan Agreement (“Addendum
      to Loan Agreement”) to allow for the use of the first $100,000 for necessary
      corporate operations of Renewable Energy.  SEP shall be the recipient
      of direct investment for the remaining portion of the monies.  On
      August 16, 2007 the company drew down $50,000 for investment in
      SEP.





**OUTLOOK
      FOR 2007**





We
      are
      trying to move from a development phase company into a commercially operating
      entity generating revenue. Given the demand for alternatives to traditional
      fossil fuel energy from government, industry and citizens, we have decided
      to
      broaden our range of business activities within the alternative energy space.
      We
      believe that the project development experience of new management will allow
      it
      to participate in a wide array of renewable energy projects such as biofuels
      development and biomass power projects.





We
      will
      continue the preproduction efforts and field testing of the EC V units. As
      long
      as no unforeseen problems are encountered with the technology, we anticipate
      having 10 EC V units produced by our production partner, Cm2, during the second
      half of the year. We are also restarting the development of the EC IV
      technology. Discussions are underway with the original inventor of the
      technology, Rianey Nelson.





We
      are
      also looking at a number of renewable energy projects. As discussed herein
      as
      part of our business plan, management anticipates that we will be able to close
      on the Springfield Energy Project and begin operations selling waste coal and
      disposing of fly ash. This project is currently in the financing stage and
      there
      is no guarantee that we will get the financing necessary for the project. We
      are
      also looking at biodiesel projects and bio-mass power plant projects. These
      projects are currently in the negotiation phase.





Finally,
      as part of the business plan, management is also looking to acquire or to
      partner with companies or technologies that complement our business
      goals.





**CRITICAL
      ACCOUNTING POLICIES AND ESTIMATES**





Our
      discussion and analysis of the financial condition and results of operations
      are
      based upon our consolidated financial statements, which have been prepared
      in
      accordance with generally accepted accounting principles in the United States.
      The preparation of these financial statements requires us to make estimates
      and
      judgments that affect the reported amounts of assets, liabilities, revenue
      and
      expenses, and related disclosure of contingent assets and liabilities. On an
      ongoing basis, we evaluate estimates. We base our estimates on historical
      experience and on various other assumptions that are believed to be reasonable
      under the circumstances. These estimates and assumptions provide a 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, and these differences
      may
      be material.





We
      believe the following critical accounting policies affect its more significant
      judgments and estimates used in the preparation of its consolidated financial
      statements.


19


Item 2. Management's Discussion and Analysis or
      Plan
      of Operation. - continued


**UNCERTAINTIES**




**Implementation
      of Business Strategy Dependent on Additional Financing**




We
      must
      obtain financing to fund the expansion of operations. Such outside financing
      must be provided from the sale of equity or third party financing. Further,
      the
      sale of equity securities will dilute our existing stockholders' interests,
      and
      borrowings from third parties could result in our assets being pledged as
      collateral. While we are currently able to fund all basic operating costs,
      it is
      possible our operations could be restricted if loan terms increase our debt
      service requirements. There is no assurance that we can obtain financing on
      favorable terms.







Date
                ofQuarter
            
            
            InceptionEnded
            
            
            ThroughSeptember
                  30, 2007
            
            
            September 30,
                2007Net
                  Income (loss)
            
            $
            (166,218
            )
            
            $
            (15,630,687
            )




The
      above
      factors continue to raise doubt about our ability to fully establish itself
      as a
      going concern.





**Development
      Stage Company**





We
      are in
      the development stage. There is no assurance that our activities will be
      profitable. The likelihood of our success must also be considered in light
      of
      the problems, expenses, difficulties, complications, delays and all of the
      inherent risks frequently encountered in the formation and operation of a
      relatively new business.





**Going
      Concern**





The
      financial statements are presented on the basis that we are a going concern,
      which contemplates the realization of assets and the satisfaction of liabilities
      in the normal course of business over a reasonable length of time.





Management
      believes that current plans to expand the our operations and a combination
      of
      financing and capital raising plans will provide sufficient working capital
      to
      allow us to continue as a going concern.





**Costs
      of Conducting Business**





We
      will
      incur minimal costs for research and development; the major work on the EC
      V has
      been completed. Marketing efforts will be expanded as units become available.
      The ability to generate a profit depends, among other factors, on the amount
      of
      revenues from the sale of our products and our operating costs.





**Technological
      Change**





We
      expect
      that many new technologies and products will be introduced over the next several
      years. Our success will depend, among other things, on our ability to develop
      and maintain a competitively positioned technology. There can be no assurance
      that we will have access to subsequently developed technologies by other
      persons. Technological advances by a competitor may result in our present or
      future products becoming noncompetitive or obsolete. We cannot be assured that
      competitors will not develop functionally similar or superior products, which
      event could have an adverse effect on our business.




**Contracts**





There
      can
      be no assurance that we will be able to obtain sufficient and suitable contracts
      for our business plan.





**Fluctuations
      in Operating Results**





Our
      revenues and results of operations may vary significantly in the future. Our
      revenues and results of operations are difficult to forecast and could be
      adversely affected by many factors, some of which are outside our control
      including, among others, the expected relatively long sales and implementation
      cycles for our products; the size and timing of individual license transactions
      and joint venture arrangements; seasonality of revenues; changes in the our
      operating expenses; changes in the mix of products sold; timing of introduction
      or enhancement of our products or our competitors; market acceptance of new
      products; technological changes in technology; personnel changes and
      difficulties in attracting and retaining qualified sales, marketing, technical
      and consulting personnel; changes in customers' budgeting cycles; quality
      control of products sold; and economic conditions generally and in specific
      industry segments.


20


Item 2. Management's Discussion and Analysis
        or Plan
        of Operation. - continued
 **UNCERTAINTIES
        - continued**




There
      can
      be no assurance that our products will achieve broad market acceptance or that
      we will be successful in marketing our products or enhancements thereto. In
      the
      event that our current or future competitors release new products that have
      more
      advanced features, offer better performance or are more price competitive than
      the our products, demand for the our products would decline. A decline in demand
      for, or market acceptance of, our products as a result of competition,
      technological change, or other factors would have material adverse effects
      on
      the our business, financial condition and results of operations.





**Seasonality**





We
      do not
      expect to experience material seasonal variations in revenues or operating
      costs.





**OFF
      BALANCE SHEET ARRANGEMENTS.**





For
      the
      period ended September 30, 2007, we did not engage in any off balance sheet
      transactions.







**Item
      3. Controls and Procedures**





Craig
      Huffman, our Interim Chief Executive Officer and Acting Principal Financial
      Officer, has evaluated our controls and procedures as of September 30, 2007.
      He
      has concluded that our disclosure controls and procedures are appropriate and
      effective. During the quarter ended September 30, 2007, there were no changes
      in
      our internal controls over financial reporting that have materially affected,
      or
      are reasonably likely to materially affect, our internal control over financial
      reporting.














**PART
      II - OTHER INFORMATION**





Pursuant
      to the Instructions on Part II of the Form 10-QSB, Items 1, 3 and
      4 are omitted.





**Item
      2. Unregistered Sales of Equity Securities and Use of
      Proceeds**




During
      our quarter ended September 30, 2007, we completed the following transactions
      in
      reliance upon exemptions from registration under the Securities Act of 1933,
      as
      amended (the "Act") as provided in Section 4(2) thereof. Each certificate issued
      for unregistered securities contained a legend stating that the securities
      have
      not been registered under the Act and setting forth the restrictions on the
      transferability and the sale of the securities. None of the transactions
      involved a public offering. We believe that each person had knowledge and
      experience in financial and business matters that allowed them to evaluate
      the
      merits and risks of our securities. We believe that each person was
      knowledgeable about our operations and financial condition.




The
      Company issues shares of common stock from time to time to compensate
      consultants as consideration for services rendered. These shares are valued
      at
      the trading value on the date of grant or per contract. For the quarter ended
      September 30, 2007, 725,307 shares of S-8 common stock were issued to one
      individual as payment for services totaling $14,440.





In
      July
      of 2007, the company issued 50,000 shares of restricted common stock under
      Regulation S of the Securities Act of 1933 to a non-US individual for $1,394.
      In
      July the company converted a $10,000 loan from a stock holder into 600,000
      shares of its restricted common shares. In August of 2007, the company issued
      333,333 shares of it restricted common shares according to the terms of the
      $750,000 Note.






**Item
      5.  Other Information**




On
      November 12, 2007 Kenneth Brown CEO and R. Edward Hart COO  resigned
      from the company to pursue other interests.





The
      company is actively seeking a new CEO and in the interim, Craig Huffman, the
      former President and current acting Chairman will assume the position of CEO
      on
      an interim basis.






21




**Item
      6. Exhibits**





Exhibit
                31.1 -
            Certification
                of Chief Executive Officer and Acting Principal Financial Officer
                of
                Renewable Energy Resources, Inc. required by Rule 13a - 14(1) or
                Rule 15d
                - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant
                to
                Section 302 of the Sarbanes-Oxley Act of
                2002.





Exhibit
                32.1 -
            Certification
                of Chief Executive Officer and Acting Principal Financial Officer
                of
                Renewable Energy Resources, Inc. pursuant to Section 906 of the
                Sarbanes-Oxley Act of 2002 and Section 1350 of 18 U.S.C.
                63.




**SIGNATURES**


Pursuant
      to the requirements of Section 13 or 15(d) of the Securities Exchange Action
      of
      1934, as amended, the registrant has duly caused this Report to be signed on
      its
      behalf by the undersigned, thereunto duly authorized.




**RENEWABLE
                ENERGY RESOURCES, INC.**Date: *November
                14, 2007*
            By
            /s/ Craig
                Huffman*Interim
                CHIEF EXECUTIVE OFFICER AND ACTING PRINCIPAL FINANCIAL
                OFFICER*

































22