UNITED
STATES
 SECURITIES
AND EXCHANGE COMMISSION
 Washington,
D.C. 20549
 
 FORM
10-Q
 
 x QUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934
 
 For the
quarterly period ended March 31, 2008
 
 o TRANSITION REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934
 For the
transition period from _______________ to _________________
 
 333-141035
 (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,FLORIDA33606
 (Address of principal
executive offices) (Zip Code)
  813-944-3185
 
  (Registrant's telephone
number, including area code)
   (Former name, former
address and former fiscal year, if changed since last report)
  Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. Yes xNo
o
  Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company.  See the definition
of "large accelerated filer," "accelerated filer" and "smaller reporting
company" in Rule 12b-2 of the Exchange Act.
   Large accelerated
      filer
                o
                Accelerated
      filer
                oNon-accelerated
      filer
                o
                Smaller reporting
      company
                x
  Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes oNo x
 State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of the latest practicable date:  as of  May 13, 2008,
there were 10,740,741 post reverse shares outstanding .
 
 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
      SHEETS as of March 31, 2008 (Unaudited) and December 31,
      2007
            4STATEMENTS
      OF OPERATIONS For the quarter ended March 31, 2008 and 2007
      (Unaudited)
            5STATEMENTS
      OF CASH FLOWS For the quarter ended March 31, 2008 and 2007
      (Unaudited)
            6Notes
      to Financial Statements
            8Item
      2
            Management's
      Discussion and Analysis of Financial Condition and Results
      of Operations
            14Item
      3
            Quantitative
      and Qualitative Disclosures about Market Risk
            19Item
      4T
            Controls
      and Procedures
            19PART
      II
            OTHER
      INFORMATION
            19Item
      1
            Legal
      Proceedings
            19Item
      2
            Unregistered
      Sales of Equity Securities and Use of Proceeds
            19Item
      6
            Exhibits
            19SIGNATURES
            20











2





Forward looking
statements





We are
including the following cautionary statement in this Form 10-Q 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.BALANCE
      SHEETS(A
      Development Stage Company)UnauditedMarch
      31, 2008
            
            
            12/31/2007*ASSETSCURRENT
      ASSETSCash
      and Cash Equivalents
            
            $
            -
            
            
            $
            1,380Security
      Deposit
            
            
            2,500
            
            
            
            2,500Total
      Current Assets
            
            
            2,500
            
            
            
            3,880PROPERTY
      AND EQUIPMENTComputers
      and Equipment (net)
            
            
            7,495
            
            
            
            8,773OTHER
      ASSETSInvestment-
      Kinetic Energy
            
            
            68,750
            
            
            
            68,750Investment
      in SEP
            
            
            50,000
            
            
            
            50,000License
            
            
            300,000
            
            
            
            100,000Total
      Other Assets
            
            
            418,750
            
            
            
            218,750Total
      Assets
            
            
            
            $
            428,745
            
            
            $
            231,403LIABILITIES &
      DEFICIENCY IN ASSETSCURRENT
      LIABILITIESAccounts
      Payable
            
            
            
            $
            122,128
            
            
            $
            120,594Accrued
      Liabilities
            
            
            200,000
            
            
            
            -Due
      to Related Parties
            
            
            150,548
            
            
            
            123,548Other
      Current Liabilities
            
            
            20,175
            
            
            
            13,425Total
      Current Liabilities
            
            
            492,851
            
            
            
            257,567OTHER
      LIABILITIESDebt
      Under Negotiations
            
            
            906,879
            
            
            
            906,879Notes
      Payable Due to Related Parties
            
            
            150,000
            
            
            
            150,000Share
      Holder Loans
            
            
            34,000
            
            
            
            34,000Commitments
      and Contingencies
            
            
            -
            
            
            
            -Total
      Liabilities
            
            
            1,583,730
            
            
            
            1,348,446DEFICIENCY
      IN ASSETSCommon
      Stock, $.001 par value, 200,000,000 Shares Authorized
            
            
            6,227
            
            
            
            182,3546,226,922
      post-reversePreferred
      Stock, $.001 par value, 70,000,000 Shares Authorized
            
            
            855
            
            
            
            855855,180
      Issued and OutstandingAdditional
      Paid -in Capital
            
            
            15,088,598
            
            
            
            14,876,920Balance
      due on Sale of Stock
            
            
            (455,000
            )
            
            
            (455,000
            )Accumulated
      Comprehensive Loss
            
            
            (83,787
            )
            
            
            (83,787
            )Accumulated
      Deficit
            
            
            (15,711,877
            )
            
            
            (15,638,385
            )Total
      Deficiency in Assets
            
            
            (1,154,984
            )
            
            
            (1,117,043
            )Total
      Liabilities & Deficiency in Assets
            
            $
            428,745
            
            
            $
            231,403*The
      balance sheet of December 31, 2007 was taken from the audited financial
      statements of that dateSee
      accompanying notes to financial statements which are an integral part of
      these financial statements





4




RENEWABLE
      ENERGY RESOURCES, INC.STATEMENTS OF OPERATIONS(A
      Development Stage Company)For
      the quarters ended March 31, 2008 and 2007AccumulatedfromDate
      ofFor
      the quarter
              
              
              For
      the quarter
              
              
              Inceptionended
              
              
              ended
              
              
              ThroughMarch
      31, 2008
              
              
              March
      31, 2007
              
              
              March
      31, 2008Net
      Sales
              
              $
              -
              
              
              $
              -
              
              
              $
              -Cost
      of Sales
              
              
              -
              
              
              
              -
              
              
              
              -Gross
      Profit
              
              
              -
              
              
              
              -
              
              
              
              -Selling,
      General & Administrative Expenses
              
              
              66,742
              
              
              
              1,043,123
              
              
              
              12,617,333Research
      And Development
              
              
              -
              
              
              
              1,600
              
              
              
              1,374,586Loss
      from Operations
              
              
              66,742
              
              
              
              1,044,723
              
              
              
              13,991,919Loss
      on Sale of Securities
              
              
              -
              
              
              
              -
              
              
              
              697,237Permanent
      Impairment Writedown onMarketable
      securities
              
              
              -
              
              
              
              -
              
              
              
              909,772Interest
      Expense
              
              
              6,750
              
              
              
              15
              
              
              
              112,949Net
      Loss
              
              $
              (73,492
              )
              
              $
              (1,044,738
              )
              
              $
              (15,711,877
              )Basic
      Net Loss Per Common Share
              
              $
              (0.01
              )
              
              $
              (0.02
              )Diluted
      Net Loss Per Common Share
              
              $
              (0.01
              )
              
              $
              (0.02
              )Weighted
      Average of Common SharesOutstanding
              
              
              6,150,838
              
              
              
              4,594,466See
      accompanying notes to financial statements which are an integral part of
      these financial statements






5




RENEWABLE
      ENERGY RESOURCES, INC.STATEMENTS OF CASH
      FLOWS(A
      Development Stage Company)For
      the quarters Ended March 31, 2008 and 2007Accumulated
      fromDate
      of InceptionFor the Quarter Ended
              
              
              For
      the Quarter Ended
              
              
              throughMarch 31, 2008
              
              
              March
      31, 2007
              
              
              March
      31, 2008OPERATING
      ACTIVITIESNet
      Loss
              
              
              $
              (73,492
              )
              
              $
              (1,044,738
              )
              
              $
              (15,711,877
              )Adjustments
      To Reconcile Net Loss to Cash Provided (Used) By Operating
      Activities:Depreciation
              
              
              1,278
              
              
              
              1,278
              
              
              
              18,466Amortization
      of Debt Discount
              
              
              -
              
              
              
              -
              
              
              
              40,000Rent
              
              
              
              
              
              
              -
              
              
              
              22,818Interest
      Expense
              
              
              6,750
              
              
              
              
              
              
              
              23,871Issuance
      of Common  Shares for Services
              
              
              35,550
              
              
              
              834,468
              
              
              
              10,905,395Issuance
      to Regent
              
              
              
              
              
              
              
              
              
              
              839,232Loss
      on Sale of Securities
              
              
              -
              
              
              
              -
              
              
              
              697,237Permenent
      Impairment
              
              
              -
              
              
              
              -
              
              
              
              903,468Changes
      in Assets & LiabilitiesPrepaid
      Rent
              
              
              -
              
              
              
              15,515
              
              
              
              -Stock
      Loans Receivable
              
              
              -
              
              
              
              -
              
              
              
              7,000Due
      to Related Parties
              
              
              27,000
              
              
              
              -
              
              
              
              161,911Decrease
      / Increase in AP & Accrued Liability
              
              
              201,534
              
              
              
              112,401
              
              
              
              277,106Cash Provided
      (Used) by Operating Activitites
              
              
              198,620
              
              
              
              (81,076
              )
              
              
              (1,815,373
              )INVESTING
      ACTIVITIESPurchase
      of Fixed Assets
              
              
              -
              
              
              
              -
              
              
              
              (23,881
              )Cash
      Proceeds on Sale of Marketable Securities
              
              
              -
              
              
              
              -
              
              
              
              201,208Loss
      on Langley
              
              
              -
              
              
              
              -
              
              
              
              6,304Investment
      SEP
              
              
              -
              
              
              
              -
              
              
              
              (50,000
              )Licensing
      Fee
              
              
              (200,000
              )
              
              
              -
              
              
              
              (300,000
              )Employee
      Advances
              
              
              -
              
              
              
              (29,500
              )
              
              
              (4,500
              )Cash
      Used by Investing Activities
              
              
              (200,000
              )
              
              
              (29,500
              )
              
              
              (170,869
              )
  6
  STATEMENTS OF CASH
FLOWS-
continued
  FINANCING
      ACTIVITIESProceeds
      from notes payable
              
              
              -
              
              
              
              -
              
              
              
              210,000Net
      Proceeds From Shareholder Advances
              
              
              -
              
              
              
              112,655
              
              
              
              1,733,742Stock
      Subscription
              
              
              -
              
              
              
              -
              
              
              
              45,000Security
      deposit
              
              
              -
              
              
              
              -
              
              
              
              (2,500
              )Cash
      Provided By Financing
              
              
              0
              
              
              
              112,655
              
              
              
              1,986,242(Decrease)
      Increase in Cash and Cash Equivalents
              
              
              (1,380
              )
              
              
              2,079
              
              
              
              -CASH
      AND CASH EQUIVALENTS, beginning of period
              
              
              1,380
              
              
              
              4,221
              
              
              
              -CASH
      AND CASH EQUIVALENTS, end of period
              
              $
              -
              
              
              $
              6,300
              
              
              $
              -See
      accompanying notes to financial statements which are an integral part of
      these financial statements


7
 RENEWABLE
ENERGY RESOURCES, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS




NOTE
1 - DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES




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.
  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.





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
March 31, 2008.





Revenue





There was
no revenue generated in the years ended December 31, 2007 and
2006.  Nor was there revenue generated during the quarter ended March
31, 2008




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 March 31, 2008, 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 unless a
contract states otherwise. 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.


8
 RENEWABLE
ENERGY RESOURCES, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
  NOTE 1 - DESCRIPTION OF
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES-
continued




Investments




Management
reviews its investments at least annually and makes appropriate
adjustments.




Advertising





The
Company expenses advertising costs as incurred. The Company had no advertising
expense in the years ended December 31, 2007 and December 31,
2006.  The Company had no advertising expense during the quarter ended
March 31, 2008





Recently
Issued Accounting Pronouncements





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





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.








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, 2007 and
2006, the Company reported net losses of $2,069,085 and $7,045,255,
respectively. In addition the Company had a loss of $73,492 for the quarter
ended March 31, 2008.





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.  Management has acquired the CAVD
      technology in March of 2008 to allow a greater opportunity of sales and
      associated cash flow in addition to financing and capital raising
      plans.·
            The
      Company’s ability to ultimately achieve revenue, adequate profitability
      and cash flows to sustain continuing
operations.







NOTE
3 - RELATED PARTY TRANSACTIONS





For the
quarter ended March 31, 2008, officers and directors of the Company received no
common shares as payment of their services.





We borrow
funds from officers and stockholders from time to time.





Four
individuals named in Item 403 of Regulation S-B have advanced us money for
general and administrative expenses: Kenneth Brown a Past President, Craig
Huffman our Chief Executive Officer, James Baker and James Thomas, our current
outside Directors.





As of
March 31, 2008, Mr. Brown was owed $2,500, Mr. Thomas was owed a total of
$34,000 and, Mr. Baker was owed $150,000 on a note plus interest.





There
have been no repayment terms specified for these loans. As such, we have
classified the loans as other liabilities.





9
 RENEWABLE
ENERGY RESOURCES, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS




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. On January 23, 2007,
1,500,000 shares were issued.  A total of 11,400,000 shares have been
issued under this agreement as reflected  under Research and
Development on the Statement of Operations.





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. The Company is attempting to settle obligations by
negotiating with creditors to take the Company’s common stock as payment for the
obligations. During the year ended December 31, 2002, the Company had not issued
any of these shares to creditors. 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 issue any of these shares to creditors. No shares were issued in
2007 as well as 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.





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. As of December, 31 2007, the Company wrote off  the remaining
investment valued at $6,304 since the shares are no longer listed. At December
31, 2006, the total other comprehensive loss was $83,787.  Management is
pursuing recovery.






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 March 31, 2008, the Company engaged in various transactions
affecting stockholders’ equity, as follows: The Company issues shares of common
stock from time to time to compensate consultants as consideration for services
rendered. These shares are valued at the trading value on the date of grant or
per contract. For the quarter ended March 31, 2008, a total of 4,453,626
pre-reverse shares of common stock were issued to 3 individuals and
organizations as payment for services totaling $35,550.




10
 RENEWABLE
ENERGY RESOURCES, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
  NOTE 5 - COMMON AND PREFERRED
STOCK-
continued
  For the
quarter ended March 31, 2008, no shares of common stock were issued as payment
for loans . Loans are non-interest bearing and are paid by discounted stock
valued as of the date of the loan. Pursuant to the terms of the loan, if the
loan cannot be repaid within a specified time period, then shares are issued to
the lender equal to the amount of the loan. The shares are discounted
approximately 50%.





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. During 2006,  6,112,265 preferred shares were
converted to common stock. On December 31, 2006 there were 1,055,180 shares of
preferred outstanding.  During 2007, 200,000 preferred shares were
converted to common stock.  On December 31, 2007 there were 885,180
shares of preferred outstanding.





There was
$22,130 in unpaid and undeclared cumulative dividends accrued during the quarter
ended March 31, 2008. Total cumulative dividends unpaid and undeclared as of
March 31, 2008 are $ 464,202.







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 year ended December 31, 2007 and
2006 was $5,112 and $4,445, respectively. Property and equipment consisted of
the following at March 31, 2008:






Computer
      and equipment
            
            $
            41,266Less
      accumulated depreciation
            
            
            (33,771
            )Furniture
      and equipment, net
            
            $
            7,495






NOTE
7 - STOCK OPTIONS





There
were no stock options granted nor were there any pro forma effect of the vesting
of options granted in the quarter ended March 31, 2008 or in the previous
periods in the years ended December 31, 2007 and 2006.







NOTE
8 - INCOME TAXES





The
Company has no income tax provision or benefit in the periods ended December 31,
2007 and 2006. 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 year ended December 31, 2007, the Company generated a tax benefit related to
operating loss carry forwards of $901,399 that was equally offset by a valuation
allowance.




11
 RENEWABLE
ENERGY RESOURCES, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
  NOTE 8 - INCOME TAXES-
continued




At
December 31, 2007, the Company had federal net operating loss carry forwards of
approximately $5,748,222 that expire from 2009 to 2027 and state net operating
loss carry forwards of approximately $987,975 that expire from 2008 to
2010.  Substantially all of the deferred income tax asset of
$6,736,197 relates to income tax benefits from net operating loss carry
forwards. Because of the change of control issues under Section 382 of the
Internal Revenue Code and the current uncertainty of realizing the benefits of the
tax carry forward, an equal valuation allowance has been established. The full
realization of the tax benefit associated with the carry forward depends
predominantly upon the Company's ability to generate taxable income during the
carry forward period. Significant components of the Company’s deferred tax
assets were as follows:





2007
            
            
            2006Net
      operating losses
            
            $
            15,638,385
            
            
            $
            13,569,300Total
      deferred tax assets
            
            
            6,736,197
            
            
            
            5,834,798Valuation
      allowance
            
            
            (6,736,197
            )
            
            
            (5,834,798
            )Net
      deferred tax assets
            
            
            -
            
            
            
            -





The
valuation allowance increased by $901,399 during the year ended December 31,
2007. No adjustment
was made at the end of the quarter ended March 31, 2008.







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. The Company is 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, 2007. As a part of the Merger Agreement with Internal Command
International, Inc. (ICI), our former Chief Executive Officer of HSVI, 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.







NOTE
10 - LOSS PER SHARE





Outstanding
warrants were not considered in the calculation for diluted earnings per share
for the years ended December 31, 2007 and 2006 or for the quarter ended March
31, 2008 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 December 31, 2007 or for the quarter ended
March 31, 2008.







NOTE
11 - INVESTMENTS





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 Kinetic securities consisted of the following at
December 31, 2007 and March 31, 2008:





Cost
            Gross
      Gains
            Unrealized
      Losses
            Impairment
      Write-down
            Fair
      ValueKinetic
            $187,500
            $  0
            $  0
            $   (118,750)
            $
      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, 2007 of Langley was determined to be zero and written off since
it is no longer on listed on the LSE.


12
 RENEWABLE
ENERGY RESOURCES, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS




NOTE 11 - INVESTMENTS-
continued




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.




In 2006,
the Company paid a licensing fee for the CAVD technology.  The value at the
end of the quarter is considered appropriate.




During
2007, the Company invested $50,000 in the Springfield Energy
Project.







NOTE 12 - SHAREHOLDER
LOANS





As of
March 31, 2008, the Company had outstanding loans from two directors totaling
$184,000. The loans have no specific repayment terms.







NOTE
13 - SUBSEQUENT EVENT




Renewable
Energy Resources, Inc. (RENW) has signed an Acquisition Agreement with World
Environmental Services, Inc. (WESCO), as subsidiary of EarthFirst Technologies,
Inc., as of March 25, 2008 to purchase all technologies, interest, assets,
patents, and other intellectual property related to certain technologies hereby
referred to as CAVD (and other processes related to pyrolisis developed by
WESCO), except those related to tires for the CAVD, or those rights held by RCT,
LLC.





On May 7,
2008, Renewable Energy Resources, Inc. delivered to WESCO, 3,183,333 shares or
approximately thirty three and one third (33 and 1/3%) percent of the then
outstanding shares of common stock. WESCO delivered through this Agreement, all
matters related to the CAVD or pyrolitic technology. Said items shall
include the following types of matters: all patents, patents pending, work
product on improvements, all uses for the CAVD, all laboratory and engineering
work, all client materials, all potential client list, sales lists, pro-formas,
business plans, etc. such uses, plans, patents, improvements, and all business
opportunities shall include Distillers Dry Grain (DDG), carpet waste, municipal
waste, algae use, and all other uses for CAVD, subject to the exclusions set
forth in the attached agreement. This agreement for purchase shall have no
effect on the right of use of CAVD for tires. On April 30, 2008 the 1 for 30
reverse announced in the March 27th Form 8K
was effective. The loss per share on the new basis was a loss of $.01 for the
three months ended March 31, 2008.




RENW had
previously paid an amount of one hundred thousand dollars ($100,000.) for the
licensing of rights to the CAVD technology to WESCO, and a later payment of two
hundred thousand dollars ($200,000.) in 2006 to a related party. This
amount was received under a separate contract relating to the licensing of this
technology, and was reflected on the Company’s books in the first quarter of
2008 in license and accrued liabilities, for similar licensing of use of the
CAVD process which is subject to a civil suit by RENW in the Thirteenth Judicial
Circuit in and for Hillsborough County, Florida at this time. RENW acknowledges
that it will relieve and dismiss any claim against that third party if all
rights to such technologies are delivered under this agreement. WESCO shall
assist RENW in any claim by any third party for the two hundred thousand dollars
($200,000) under the earlier agreement by RENW and such third
party.




RENW
shall make an additional payment (secondary consideration) to WESCO in common
shares after one year, and no later than two years after closing, which shall
consist of ten percent (10%) of then outstanding shares at the time of closing
of this acquisition if the certain achievements are reached.







13




Item
2. Management's Discussion and Analysis of Financial Condition and Results 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, 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". 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 field testing phase of our business
plan.  We anticipate producing ten EC V units in this year. 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.






14




Item 2. Management's
Discussion and Analysis of Financial Condition and Results of Operation.-
continued




BUSINESS STRATEGY-
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 on staff engineers, marketing and full production
capabilities, Cm2 is well suited to handle the Energy Commander
technology.  Cm2 is ISO 9001 certified, and IQ NET certified for the
production, maintenance and installation of all electrical
systems, as well as maintaining certifications in the same for quality control.
RINA (Italian Air and Shipping Registry) certifies that Cm2 works in accordance
with ISO 9001 quality regulations in the making of the following products
process services: Planning, production, installation and assistance of civil and
industrial technological systems for electric, electronic and mechanical
sectors. Cm2's clients include Siemens, Colgate Palmolive Europe, Alitalia and
every large Italian utility.




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




We have a
permanent assignment of the patent for the Energy Commander technology from the
inventor. 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.





The EC
V has no direct competition. Solar, wind, biomass and large flow
hydro-power sources are much 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 major 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.





In
today’s energy and renewable energy market, the positions of the players have
stagnated. The renewable energy market has hinged around the six per cent mark
for a number of years. 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 will
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.





-
            Our
      ability to generate sustainable revenue and cash
  flow.






15




Item
2. Management's Discussion and Analysis of Financial Condition and Results of
Operation.-
continued




ACQUSITIONS
OF SIMILAR TECHNOLOGIES





CM2
AGREEMENT:




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





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





KINETIC
ENERGY





On July
8, 2004, we entered into a strategic partnership agreement with Kinetic Energy
Systems, Inc. (“Kinetic”), a privately held Florida Corporation. Kinetic has
developed patented hydro and wind technologies, including the Hydrokinetic
Generator, Offshore Energy Platform, KESC Bowsprit Generator and the KESC Tidal
Generator. These technologies generate electrical power or hydrogen using
kinetic energy from moving water such as tides and wind. We issued 1,250,000
shares of treasury stock for 20% of the shares of the private
company.  We also agreed to assist in the development of Kinetic’s
technology and have a license for the underwater and over water power
generation. The Hydrokinetic Generator is at the prototype and engineering
stage. The Offshore Energy Platform is at the prototype and engineering stage.
The KESC Bowsprit Generator is 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 will
help market and develop Kinetic products in Europe and the United
States.  Our support of Kinetic is tied to our capital ability to do
so. We will 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, millions 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.





SEP was
unable to find funding within the option period which ended on December 31,
2007, but continues to pursue financing since the property is still
available.





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 . 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.






16




Item
2. Management's Discussion and Analysis of Financial Condition and Results of
Operation.-
continued




COMPARISON
OF THREE MONTHS ENDED MARCH 31, 2008 TO THREE MONTHS ENDED MARCH 31,
2007.





Revenue
for the three months ended March 31, 2008 and 2007 was $-0-.





General
and administrative expenses for the three months ended March 31, 2008 of $66,742
decreased $976,381 compared to the general and administrative expenses for the
three months ended March 31, 2007 which were $1,043,123. The reduction was
primarily due to lower Officer and Director compensation





LIQUIDITY
AND CAPITAL RESOURCES




Our
operating activities used cash in the amount of $1,614 for the quarter ended
March 31, 2008. 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 $112,655 for the quarter
ended March 31, 2008 to $0 from the quarter ended March 31, 2007.





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.





RISKS
and UNCERTAINTIES





GOING
CONCERN RISK





We have
had and could have losses, deficits and deficiencies in liquidity, which could
impair our ability to continue as a going concern.




Based on
our financial statements, certain factors raise substantial doubt about our
ability to continue as a going concern.  Since our 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 its
operations.  The above factors represent a continuing concern about
out our ability to fully establish ourselves as a going concern.




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.





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.





17




Item
2. Management's Discussion and Analysis of Financial Condition and
Results of Operation.-
continued




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





Technological
Change





We
expect that many new technologies and products will be introduced over the next
several years. Our success will depend, among other things, on our ability to
develop and maintain a competitively positioned 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 events 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;  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 March 31, 2008, we did not engage in any off balance sheet
transactions.







18




Item
3. Quantitative and Qualitative Disclosures about Market Risk




The
information to be reported under this item is not required of smaller reporting
companies.






Item
4T. Controls and Procedures





Evaluation
of Disclosure Controls





As of the
end of the period of this report, our principal executive and principal
financial officer carried out an evaluation of the effectiveness of the design
and operation of our disclosure controls and procedures. This evaluation was
carried out under the supervision and with the participation of our management,
including our Acting Chief Executive Officer and Acting Principal Financial
Officer. Based on that evaluation, our Acting Chief Executive Officer and Acting
Principal Financial Officer concluded that our
earlier disclosure controls and procedures were not effective in timely alerting
them to information required to be included in the Company’s periodic reports to
the Securities and Exchange Commission, which resulted in a misstatement of both
assets and liabilities of $200,000. In light of this event, management has put
additional controls in place regarding cash receipts and disbursements. During
the first fiscal quarter, there were changes in our internal control over
financial reporting that will  materially affect and  likely
to materially affect our internal control over financial reporting.





Disclosure
controls are controls and other procedures that are designed to ensure that
information that we are required to disclose in the reports we file pursuant to
the Securities Exchange Act of 1934 is recorded, processed, summarized and
reported.




Limitations
on the Effective of Controls




Our
management does not expect that our disclosure controls or our internal controls
over financial reporting will prevent all error and fraud.  A control
system, no matter how well conceived and operated, can provide only reasonable,
but no absolute, assurance that the objectives of a control system are met.
 Further, any control system reflects limitations on resources, and the
benefits of a control system must be considered relative to its costs.
 These limitations also include the realities that judgments in
decision-making can be faulty and that breakdowns can occur because of simple
error or mistake.  Additionally, controls can be circumvented by the
individual acts of some persons, by collusion of two or more people or by
management override of a control.  A design of a control system is also
based upon certain assumptions about potential future conditions; over time,
controls may become inadequate because of changes in conditions, or the degree
of compliance with the policies or procedures may deteriorate.  Because of
the inherent limitations in a cost-effective control system, misstatements due
to error or fraud may occur and may not be detected.




Conclusions




Based
upon their evaluation of our controls, Craig Huffman, our acting Chief Executive
Officer and acting Principal Officer, has concluded that, subject to the
limitations noted above, the disclosure controls are effective providing
reasonable assurance that material information relating to us is made known to
management on a timely basis during the period when our reports are being
prepared.  There were no changes in our internal controls that occurred
during the quarter covered by this report that have materially affected, or are
reasonably likely to materially affect our internal controls.





PART
II - OTHER INFORMATION





Pursuant
to the Instructions on Part II of the Form 10-Q, Items 2, 3, 4, and 5
are omitted.





Item
1.  Legal Proceedings





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, the
former CFO of Renewable Energy Resources, Inc. and the defendant is Renewable
Energy Resources, Inc.





Mr. Segal
claimed he was owed compensation of $4,500 for his work while employed by
Renewable Energy Resources, Inc. and in addition, he had taken restricted shares
of stock in lieu of cash compensation and since he is no longer with the
Company, would like to return the restricted shares of stock and receive $22,500
in cash compensation in lieu of the restricted stock.





A
judgment in favor of Mr. Segal was rendered on January 28, 2008 in the amount of
$27,000 plus interest and costs.  Mr. Segal will be returning the
shares that he had received.





.....................................................................





Item
6. Exhibits





Exhibit
31.1 - Certification of Acting 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 Acting 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.





19





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: May15,
    2008
            By
            /s/ CRAIG
      HUFFMANACTING
      CHIEF EXECUTIVE OFFICER AND ACTING PRINCIPAL FINANCIAL
    OFFICER

































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