**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      D.C. 20549





**FORM
          10-QSB/A**
 First
          Amended


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





For
      the
      quarterly period ended June 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 x No
o




Indicate
      by check mark whether the registrant is an accelerated filer (as defined in
      exchange A Rule 12b-2)




Yes
o No 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 174,511,920 shares of common stock, and 885,180 shares of preferred stock
      issued and outstanding as of August 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 June 30, 2007 (Unaudited)
            4STATEMENT
                  OF OPERATIONS For the quarters ended June 30, 2007 and 2006
                  (Unaudited)
            5STATEMENT
                  OF CASH FLOWS For the quarters ended June 30, 2007 and 2006
                  (Unaudited)
            6-7Notes
                  to Financial Statements
            8Item
                  2
            Management's
                  Discussion and Analysis or Plan of Operations
            15Item
                  3
            Controls
                  and Procedures
            21PART
                  II
            OTHER
                  INFORMATION
            22Item
                  2
            Unregistered
                  Sales of Equity Securities and Use of Proceeds
            22Item
                  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)**June
                30, 2007****ASSETS****CURRENT
                ASSETS**Cash
                and Cash Equivalents
            
            
            $
            10Security
                Deposit
            
            
            
            2,500Payroll
                Advances
            
            
            
            37,500Stock
                Subscription
            
            
            
            480,000Total
              Current Assets
            
            
            520,010**PROPERTY
                AND EQUIPMENT**Computers
                and Equipment (net)
            
            
            11,329**OTHER
                ASSETS**Investment-
                Langley
            
            
            6,304Investment-
                Kinetic Energy
            
            
            68,750License
            
            
            
            100,000Total
              Other Assets
            
            
            175,054**Total
                Assets**
            
            
            
            $
            706,393**LIABILITIES
                & STOCKHOLDERS' EQUITY****CURRENT
                LIABILITIES**Accounts
                Payable
            
            $
            180,568Accrued
                Payroll
            
            
            185,629Shareholder
                Loans
            
            
            43,394Loan
                from Officers
            
            
            2,500Total
              Current Liabilities
            
            
            412,091**OTHER
                LIABILITIES**Debt
                Under Negotiations
            
            
            906,879Commitments
                and Contingencies
            
            
            -Total
              Liabilities
            
            
            1,318,970**STOCKHOLDERS'
                EQUITY**Common
                Stock, $.001 par value, 200,000,000 Shares Authorized
            
            
            174,433174,432,505
                Issued and OutstandingPreferred
                Stock, $.001 par value, 70,000,000 Shares Authorized
            
            
            885885,180
                Issued and OutstandingAdditional
                Paid -in Capital
            
            
            14,760,360Accumulated
                Comprehensive Loss
            
            
            (83,787
            )Accumulated
                Deficit
            
            
            (15,464,468
            )Total
                Stockholders' Equity
            
            
            (612,577
            )**Total
                Liabilities & Equity**
            
            
            $
            706,393See
                accompanying notes to unaudited financial statements footnotes 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 June 30, 2007 and 2006**Accumulated****from****Date
                    of****3
                    Months**
                
                
                **3
                    Months**
                
                
                **6
                    Months**
                
                
                **6
                    Months**
                
                
                **Inception****ended**
                
                
                **ended**
                
                
                **ended**
                
                
                **ended**
                
                
                **Through****June
                    30, 2007**
                
                
                **June
                    30, 2006**
                
                
                **June
                    30, 2007**
                
                
                **June
                    30, 2006**
                
                
                **June
                    30, 2007**Net
                    Sales
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                
                
                
                $
                -Cost
                    of Sales
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                
                
                
                
                -Gross
                    Profit
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                
                
                
                
                -Selling,
                    General & Administrative Expenses
                
                
                850,430
                
                
                
                3,779,386
                
                
                
                1,893,553
                
                
                
                5,309,069
                
                
                
                12,408,963Research
                    And Development
                
                
                -
                
                
                
                557,074
                
                
                
                1,600
                
                
                
                643,718
                
                
                
                1,359,526Loss
                    from Operations
                
                
                850,430
                
                
                
                4,336,460
                
                
                
                1,895,153
                
                
                
                5,952,787
                
                
                
                13,768,489Loss
                    on Sale of Securities
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                7,996
                
                
                
                697,237Permanent
                    Impairment Writedown onMarketable
                    securities
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                
                
                
                
                903,468Other
                    Income
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (65,000
                )
                
                
                -Interest
                    Expense
                
                
                -
                
                
                
                10,100
                
                
                
                15
                
                
                
                11,196
                
                
                
                95,274Net
                    Loss
                
                $
                850,430
                
                
                $
                4,346,560
                
                
                $
                1,895,168
                
                
                $
                5,906,979
                
                
                $
                15,464,468Basic
                    Net Loss Per Common Share
                
                $
                (0.01
                )
                
                $
                (0.06
                )
                
                $
                (0.01
                )
                
                $
                (0.08
                )
                
                
                -Diluted
                    Net Loss Per Common Share
                
                $
                (0.01
                )
                
                $
                (0.06
                )
                
                $
                (0.01
                )
                
                $
                (0.08
                )
                
                
                -Weighted
                    Average of Common Shares Outstanding
                
                
                167,934,919
                
                
                
                77,906,902
                
                
                
                167,934,919
                
                
                
                77,906,902
                
                
                
                -See
                    accompanying notes to unaudited financial statements footnotes 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 June 30, 2007 and 2006**Accumulated
                from****Date
                of Inception****6
                Months Ended**
            
            
            **6
                Months Ended**
            
            
            **through****June
                30,2007**
            
            
            **June
                30, 2006**
            
            
            **June
                30 2007****OPERATING
                ACTIVITIES**Net
                Loss
            
            
            
            $
            (1,895,168
            )
            
            $
            (4,346,560
            )
            
            $
            (15,464,467
            )Adjustments
                To Reconcile Net Loss to Cash Used By Operating Activities:Depreciation
            
            
            
            
            2,556
            
            
            
            980
            
            
            
            14,632Amortization
                of Debt Discount
            
            
            
            -
            
            
            
            -
            
            
            
            40,000Rent
                Deposit
            
            
            
            -
            
            
            
            (2,500
            )
            
            
            (2,500
            )Rent
            
            
            
            
            22,818
            
            
            
            -
            
            
            
            7,303Issuance
                of Shares for Interest
            
            
            
            -
            
            
            
            
            
            
            
            6,196Issuance
                of Common  Shares for Services
            
            
            
            1,454,411
            
            
            
            3,304,801
            
            
            
            10,754,787Issuance
                to Regent
            
            
            
            -
            
            
            
            450,000
            
            
            
            805,900Loss
                on Sale of Securities
            
            
            
            -
            
            
            
            -
            
            
            
            697,237Permanent
                Impairment
            
            
            
            -
            
            
            
            -
            
            
            
            911,464Changes
                in Assets & LiabilitiesPrepaid
                Rent
            
            
            
            -
            
            
            
            (8,025
            )
            
            
            (8,025
            )Payroll
                Liability
            
            
            
            185,629
            
            
            
            
            
            
            
            185,629Decrease
                / Increase in AP & Accrued Liability
            
            
            127,888
            
            
            
            143,196
            
            
            
            127,888Cash
                Provided (Used) By Operating Activitites
            
            
            
            (101,866
            )
            
            
            (458,108
            )
            
            
            (1,923,956
            )**INVESTING
                ACTIVITIES**Cash
                Proceeds on Sale of Marketable Securities
            
            
            
            -
            
            
            
            273,800
            
            
            
            201,208Decreasein
                Notes Payable
            
            
            
            -
            
            
            
            (4,900
            )
            
            
            -Decrease
                in shareholder loans
            
            
            
            -
            
            
            
            (55,000
            )
            
            
            -Licensing
                Fee
            
            
            
            
            -
            
            
            
            -
            
            
            
            (100,000
            )Employee
                Advances
            
            
            
            (37,500
            )
            
            
            -
            
            
            
            (37,500
            )Loan
                from Officer
            
            
            
            2,500
            
            
            
            -
            
            
            
            -Cash
                Provided (Used) By Investing Activities
            
            
            
            (35,000
            )
            
            
            213,900
            
            
            
            63,708






6




**STATEMENT
                OF CASH FLOWS - continued**




**FINANCING
                ACTIVITIES**Proceeds
                from notes payable
            
            
            
            -
            
            
            
            -
            
            
            
            -Net
                Proceeds From Shareholder Advances
            
            
            
            112,655
            
            
            
            289,750
            
            
            
            1,621,086Cash
                Provided by Sale of Stock
            
            
            
            20,000
            
            
            
            -
            
            
            
            20,000Cash
                Provided By Financing
            
            
            
            132,655
            
            
            
            289,750
            
            
            
            1,621,086Decrease
                in Cash and Cash Equivalents
            
            
            
            (4,211
            )
            
            
            (93,176
            )
            
            
            (4,211
            )**CASH
                AND CASH EQUIVALENTS, beginning of period**
            
            
            
            4,221
            
            
            
            93,797
            
            
            
            4,221**CASH
                AND CASH EQUIVALENTS, end of period**$
            10
            
            
            $
            621
            
            
            $
            10See
                accompanying notes to unaudited 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
      quarter ended June 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 quarter ended June 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**




In
      May of
      2007, the Board of Directors authorized the issuance of 5,000,000 shares of
      restricted common stock to Kenneth Brown  as compensation valued at
      $165,000 and 5,000,000 shares of restricted common stock to R. Edward Hart
      as
      compensation valued at $165,000.  As
      of
      June 30, 2007, the Company had outstanding loans from one director totaling
      $32,000.




**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 June 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 June 30, 2007, the Company engaged in various transactions
      affecting stockholders’ equity, as follows:





In
      May
      2007, the Board of Directors authorized the issuance of 5,000,000 shares of
      restricted common stock to Kenneth Brown as compensation valued at $165,000
      and
      5,000,000 shares of restricted common stock to R. Edward Hart as compensation
      valued at $165,000.





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. For the quarter ended June 30, 2007,
      no
      restricted common stock were issued and 6,395,774 shares of S-8 common stock
      were issued to five  individuals and organizations as payment for
      services totaling $282,097.





In
      March
      of 2007, the company issued 15,384,615 shares of restricted common stock under
      Regulation S of the Securities Act of 1933 to the Mercatec Fund for a
      subscription receivable of $500,000. In May 2007, we received $20,000 due under
      this subscription receivable.







**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 June 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 June 30, 2007. Total cumulative dividends unpaid and undeclared
      as
      of June 30, 2007 are $221,295.




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 June 30, 2007
        and
        2006 was $1,278 and
        $980
        respectively.





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





Computer
                  and equipment
            
            $
            41,266Less
                  accumulated depreciation
            
            
            (29,937)Furniture
                  and equipment, net
            
            $
            11,329







**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 June 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 June 30, 2007, the Company generated a tax benefit related
      to
      operating loss carryforwards of $302,368 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 carryforwards 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 carryforward, 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 June 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 June 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
      June 30, 2007, the Company had outstanding loans from one director totaling
      $32,000, and outstanding loans totaling $11,394 from two other individuals
      unrelated to the company. The loans have no repayment terms.




13
  **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.
   **NOTE
        14 -- SUBSEQUENT EVENTS**
  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) which has been arranged through Banca IMI, SpA, and underwritten
        by Intesasanpalo SpA, to Mercatech. 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.




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 June 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 maintain 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.







**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.




15




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


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




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.





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.


16


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





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.




The
        SEP
        project is currently in the financing stage and we are negotiating with multiple
        sources to provide the funding. Subsequent to the quarter ended June 30,
        2007,
        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) which has been arranged through
        Banca IMI, SpA, and underwritten by Intesasanpalo SpA, to Mercatech. 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.




17




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






**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 JUNE 30, 2007 TO THREE MONTHS ENDED JUNE 30,
      2006.**





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





General
      and administrative expenses for the three months ended June 30, 2007 of $850,430
      decreased $2,928,956 compared to the general and administrative expenses for
      the
      three months ended June 30, 2006 which were $3,779,386. The reduction was
      primarily due to a reduction is the shares issued for services.







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





Revenue
      for the six months ended June 30, 2007 and 2006 was $-0-.





General
      and administrative expenses for the six months ended June 30, 2007 of $1,893,553
      decreased $3,415,516 compared to the general and administrative expenses for
      the
      six months ended June 30, 2006 which were $5,309,069.  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 $20,791 for the quarter ended
      June 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.





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 decreased by $199,400 from $213,900 for
      the quarter ended June 30, 2006 to $14,500 for the quarter ended June 30,
      2007.


18




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




**SUBSEQUENT
      EVENTS**


The
        SEP
        project is currently in the financing stage and we are negotiating with multiple
        sources to provide the funding. Subsequent to the quarter ended June 30,
        2007,
        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) which has been arranged through
        Banca IMI, SpA, and underwritten by Intesasanpalo SpA, to Mercatech. 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. A copy of the loan is
        attached as exhibit 10.01.




**OUTLOOK
      FOR 2007**





On
      January 17, 2007, we commenced a leadership transition with the appointment
      of a
      new Board of Directors. We also retained Kenneth Brown as our new Chief
      Executive Officer and R. Edward Hart as our new Chief Operating Officer. These
      changes were made to allow us to move from a development phase company into
      a
      commercially operating entity generating revenue. Additionally, given the demand
      for alternatives to traditional fossil fuel energy from government, industry
      and
      citizens, management 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.


19


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






**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.







**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.







Quarter
            
            
            Date
                ofEnded
            
            
            InceptionJune
                30,
            
            
            Through2007
            
            
            June
                30, 2007Net
                  Income (loss)
            
            $
            (850,430
            )
            
            $
            (15,464,468
            )




The
      above
      factors represent 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.





20




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




**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 technologically. 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.





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 June 30, 2007, we did not engage in any off balance sheet
      transactions.







**Item
      3. Controls and Procedures**





Kenneth
      Brown, our Chief Executive Officer and Acting Principal Financial Officer,
      has
      evaluated our controls and procedures as of June 30, 2007. He has concluded
      that
      our disclosure controls and procedures are appropriate and effective. During
      the
      quarter ended June 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.





21





**PART
      II - OTHER INFORMATION**





Pursuant
      to the Instructions on Part II of the Form 10-QSB, Items 1, 3, 4, and 5
      are omitted.








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




During
      our quarter ended June 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.






In
      May of
      2007, the Board of Directors authorized the issuance of 5,000,000 shares of
      restricted common stock to Kenneth Brown as compensation valued at $165,000
      and
      5,000,000 shares of restricted common stock to R. Edward Hart as compensation
      valued at $165,000.





**Item
      6. Exhibits**




Exhibit
              10.1
            Loan
              AgreementExhibit
              10.2
            Addendum
              to Loan AgreementExhibit
              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: *August
                  29, 2007*
              By
              /s/ *KENNETH
                  BROWN**CHIEF
                  EXECUTIVE OFFICER AND ACTINGPRINCIPAL FINANCIAL
                  OFFICER*





22