UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 --------------

                                   FORM 10-QSB

      |X|QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                                 ---------------

                                     0-9879
                            (COMMISSION FILE NUMBER)

                 FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2003

                                       OR

     |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                                 ---------------


                       VACATION OWNERSHIP MARKETING, INC.

             (Exact Name of Registrant as Specified in its Charter)


         DELAWARE                                          13-2648442
(State or Other Jurisdiction                            (I.R.S. Employer
     of Incorporation)                               Identification Number)

                                  6915 RED ROAD
                                   SUITE #222
                           CORAL GABLES, FLORIDA 33143
                                 (305) 666-6565

               (Address, including zip code, and telephone number,
                  of registrant's principal executive offices)

                                  ------------

         Check whether the Registrant (1) has filed all reports required 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 |X| No |_|

         As of October 10, 2003, there were 61,110,595 shares of the
Registrant's Common Stock, $0.001 par value per share, outstanding.

         Transitional Small Business Disclosure Format  Yes |_|  No |X|
<PAGE>
                       VACATION OWNERSHIP MARKETING, INC.
                 FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2003

                                TABLE OF CONTENTS

                                                                           Pages

PART I  FINANCIAL INFORMATION................................................2

      ITEM 1.   FINANCIAL STATEMENTS.........................................2

      ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION...15

      RISK FACTORS..........................................................21

      ITEM 3.   CONTROLS AND PROCEDURES.....................................24

PART II  OTHER INFORMATION..................................................25

      ITEM 1.  LEGAL PROCEEDINGS............................................25

      ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS....................25

      ITEM 3.  DEFAULTS UPON SENIOR SECURITIES..............................25

      ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS..........26

      ITEM 5.  OTHER INFORMATION............................................26

      ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.............................26

SIGNATURES..................................................................27
<PAGE>
         THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS, ASSUMPTIONS,
ESTIMATES AND PROJECTIONS ABOUT THE COMPANY AND ITS INDUSTRY. FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS THAT MAY CAUSE ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE,
ACHIEVEMENTS AND PROSPECTS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY UNDERTAKES NO OBLIGATION
TO UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENTS FOR ANY REASON EVEN IF NEW
INFORMATION BECOMES AVAILABLE OR OTHER EVENTS OCCUR IN THE FUTURE.
<PAGE>
                                     PART I

                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                       VACATION OWNERSHIP MARKETING, INC.
                       CONDENSED BALANCE SHEET (UNAUDITED)
                                 AUGUST 31, 2003

                                     ASSETS
                                                                        2003
                                                                     ---------
CURRENT ASSETS                                                            $228
                                                                     ---------
     Cash and cash equivalents                                            $228
                                                                     ---------
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)


CURRENT LIABILITIES
     Accounts payable and accrued expenses                            $116,065
     Debentures payable                                                400,202
     Short-term notes payable and advances                              65,935
                                                                     ---------
         TOTAL LIABILITIES                                             582,202
                                                                     ---------
TEMPORARY EQUITY                                                        22,640

STOCKHOLDERS' EQUITY (DEFICIT)

     Preferred stock, $.001 par value, 10,000,000 shares authorized,
     2,500,000 issued and outstanding                                    2,500

     Common stock, $.001 par value, 50,000,000 shares authorized and
     50,000,000 shares issued and outstanding                           50,000

     Additional paid-in capital                                        107,389

     Accumulated deficit                                              (764,503)
                                                                     ---------
         Total Stockholders' Equity (Deficit)                         (604,614)
                                                                     ---------
TOTAL LIABILITIES, TEMPORARY EQUITY AND
STOCKHOLDERS' EQUITY (DEFICIT)                                            $228
                                                                     =========


    The accompanying notes are an integral part of these financial statements









                                       2
<PAGE>
                       VACATION OWNERSHIP MARKETING, INC.
                 CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
               FOR THE THREE MONTHS ENDED AUGUST 31, 2003 AND 2002

                                                   2003               2002

REVENUES                                            $                  $

COST OF REVENUES
                                                 ----------         ----------
GROSS PROFIT
                                                 ----------         ----------
OPERATING EXPENSES
     Professional fees                                  180             12,560
     Accounting and audit fees                        3,500              3,500
     Stock transfer fees                                150
     Administrative and Other                            37
                                                 ----------         ----------
         TOTAL OPERATING EXPENSES                     3,867             16,060
                                                 ----------         ----------
LOSS BEFORE OTHER EXPENSE                            (3,867)           (16,060)
                                                 ----------         ----------
OTHER (EXPENSE)
     Interest expense                                (8,004)            (8,004)
                                                 ----------         ----------
         TOTAL OTHER EXPENSES                        (8,004)            (8,004)
                                                 ----------         ----------
NET LOSS BEFORE PROVISION FOR INCOME TAXES:         (11,871)           (24,064)
     Provision for income taxes
                                                 ----------         ----------
NET LOSS APPLICABLE TO COMMON SHARES               ($11,871)          ($24,064)
                                                 ==========         ==========
NET LOSS PER BASIC AND DILUTED SHARES               ($0.000)           ($0.031)
                                                 ==========         ==========
WEIGHTED AVERAGE SHARES OUTSTANDING              50,000,000            770,000
                                                 ==========         ==========











    The accompanying notes are an integral part of these financial statements










                                       3
<PAGE>
<TABLE>
<CAPTION>
                       VACATION OWNERSHIP MARKETING, INC.
     STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) FOR
                THE THREE MONTHS ENDED AUGUST 31, 2003 AND 2002



                                       PREFERRED STOCK            COMMON STOCK
                                      ------------------    ---------------------  ADDITIONAL
                                                                                    PAID-IN       ACCUMULATED
                                       SHARES     AMOUNT       SHARES      AMOUNT   CAPITAL         DEFICIT         TOTAL
                                      ---------   ------    ----------    -------   ---------      ---------    ---------
<S>                                   <C>         <C>          <C>           <C>      <C>          <C>          <C>
BALANCE - MAY 31, 2002                2,500,000   $2,500       770,000       $770     $56,303      $(680,297)   $(620,724)
  Net loss for the three months ended
  August 31, 2002                             -        -             -          -           -        (24,064)     (24,064)
                                      ---------   ------    ----------    -------   ---------      ---------    ---------
  BALANCE - AUGUST 31, 2002           2,500,000   $2,500       770,000       $770     $56,303      $(704,361)   $(644,788)
                                      =========   ======    ==========    =======   =========      =========    =========
BALANCE - MAY 31, 2003                2,500,000   $2,500    50,000,000    $50,000    $107,389      $(752,632)   $(592,743)
  Net loss for the three months ended
  August 31, 2003                             -        -             -          -           -        (11,871)     (11,871)
                                      ---------   ------    ----------    -------   ---------      ---------    ---------
  BALANCE - AUGUST 31, 2003           2,500,000   $2,500    50,000,000    $50,000    $107,389      $(764,503)   $(604,614)
                                      =========   ======    ==========    =======   =========      =========    =========
</TABLE>


























    The accompanying notes are an integral part of these financial statements




                                       4
<PAGE>
<TABLE>
<CAPTION>
                       VACATION OWNERSHIP MARKETING, INC.
              STATEMENT OF CHANGES IN TEMPORARY EQUITY (UNAUDITED)
               FOR THE THREE MONTHS ENDED AUGUST 31, 2003 AND 2002



                            PREFERRED STOCK        COMMON STOCK        ADDITIONAL
                                                                        PAID-IN
                            SHARES   AMOUNT      SHARES      AMOUNT     CAPITAL     TOTAL
                            ------   ------    ----------    -------    -------   --------


<S>                         <C>      <C>       <C>           <C>        <C>       <C>
BALANCE - MAY 31, 2002           -        -    60,340,595    $60,341    $62,615   $122,956

  Activity                       -        -             -          -          -          -
                            ------   ------    ----------    -------    -------   --------
  BALANCE - AUGUST 31, 2002      -        -             -          -          -          -
                            ======   ======    ==========    =======    =======   ========
BALANCE - MAY 31, 2003           -        -    11,110,595    $11,111    $11,529    $22,640

  Activity                       -        -             -          -          -          -
                            ------   ------    ----------    -------    -------   --------
  BALANCE - AUGUST 31, 2003      -        -    11,110,595    $11,111    $11,529    $22,640
                            ======   ======    ==========    =======    =======   ========
</TABLE>


























    The accompanying notes are an integral part of these financial statements



                                       5
<PAGE>
<TABLE>
<CAPTION>
                       VACATION OWNERSHIP MARKETING, INC.
                 CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
               FOR THE THREE MONTHS ENDED AUGUST 31, 2003 AND 2002


                                                                        2003           2002
                                                                      -------        -------
<S>                                                                  <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net loss                                                        ($11,871)      ($24,064)
                                                                      -------        -------
ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH (USED IN) OPERATING
     ACTIVITIES:
CHANGES IN ASSETS AND LIABILITIES
     Increase in accounts payable and accrued expenses                 11,504              4
                                                                      -------        -------
         TOTAL ADJUSTMENT                                              11,504              4
                                                                      -------        -------
         NET CASH (USED IN) OPERATING ACTIVITIES                         (367)       (24,060)
                                                                      -------        -------
CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds (payments) from short-term notes payable and advances       (50)        24,060
                                                                      -------        -------
         NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES              (50)        24,060
                                                                      -------        -------
NET (DECREASE) IN CASH AND CASH EQUIVALENTS                              (417)             -

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR                             645            224
                                                                      -------        -------
NET LOSS APPLICABLE TO COMMON SHARES                                     $228           $224
                                                                      =======        =======

</TABLE>











    The accompanying notes are an integral part of these financial statements











                                       6
<PAGE>
                       VACATION OWNERSHIP MARKETING, INC.
               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                            AUGUST 31, 2003 AND 2002

NOTE 1 - ORGANIZATION
         ------------

         The condensed unaudited interim financial statements included herein
         have been prepared by Vacation Ownership Marketing, Inc. (the
         "Company") without audit, pursuant to the rules and regulations of the
         Securities and Exchange Commission (the "SEC"). Certain information and
         footnote disclosures normally included in the financial statements
         prepared in accordance with accounting principles generally accepted in
         the United States of America have been condensed or omitted as allowed
         by such rules and regulations, and the Company believes that the
         disclosures are adequate to make the information presented not
         misleading. It is suggested that these condensed financial statements
         be read in conjunction with the May 31, 2003 audited consolidated
         financial statements and the accompanying notes thereto. While
         management believes the procedures followed in preparing these
         condensed financial statements are reasonable, the accuracy of the
         amounts are in some respects dependent upon the facts that will exist,
         and procedures that will be accomplished by the Company later in the
         year.

         The management of the Company believes that the accompanying unaudited
         condensed financial statements contain all adjustments (including
         normal recurring adjustments) necessary to present fairly the
         operations, changes in stockholders' equity (deficit), temporary
         equity, and cash flows for the periods presented.

         Vacation Ownership Marketing, Inc. incorporated in Delaware as Magnum
         Communications Corp. in 1969 and changed its name to its present name
         in 1980. Coinciding with the name change, the Company changed its
         business to the development and marketing of time-shared condominiums
         which it continued until 1983. During that year, the Company
         experienced financial difficulties and encountered adverse litigation.
         The Company's charter expired in May 7, 2000, when a certificate of
         renewal was issued.

         On August 27, 2001, VAOW Acquisition Corp., a Delaware corporation
         ("Acquisition Corp."), purchased 492,480 shares of the Company's common
         stock ("VAOM Common Stock") from certain shareholders for $350,000
         pursuant to a stock purchase agreement dated August 27, 2001 (the "VAOW
         Stock Purchase Agreement"). Simultaneously, Acquisition Corp. entered
         into an Escrow Agreement with these shareholders pursuant to which
         $50,000 was escrowed for 60 days as security. At this time, Acquisition
         Corp. obtained a loan from certain accredited investors evidenced by
         its 8% Series A $1,000,000 Senior Subordinated Convertible Redeemable
         Debentures, together with underlying shares of Acquisition Corp.'s
         common stock (par value $.01).

         On August 23, 2001 a 1:20 reverse stock split of the VAOM Common Stock
         became effective. This stock split decreased the issued and outstanding
         common stock from 15 million to 750,000. Additionally, the authorized
         shares of common stock increased from 15 million to 50 million and the
         authorized shares of preferred stock increased from 1 million to 10
         million.

         On August 29, 2001, Acquisition Corp. entered into a stock purchase
         agreement with the then shareholders of Encore Builders, Inc. ("Encore
         Builders"), a Florida corporation (the "Encore Stock Purchase
         Agreement") to purchase all of the capital stock of Encore

                                       7
<PAGE>
         Builders in such a manner that Encore Builders became a wholly-owned
         subsidiary of Acquisition Corp. Acquisition Corp. purchased all 100
         issued and outstanding shares of Encore Builders stock for $1 and
         purchased 900 newly issued Encore Builders shares for $470,000,
         approximately $4,550 of which was paid in cash and $465,500 of which
         was paid in the form of a Promissory Demand Note. Additionally, for $1
         the Company purchased from Acquisition Corp. 9,000 shares of
         Acquisition Corp.'s newly issued stock and Acquisition Corp. at this
         time became a wholly-owned subsidiary of the Company. All rights and
         obligations of Acquisition Corp., Encore Builders or any other entity
         owned by them became binding upon the Company as of August 29, 2001.

         On March 20, 2002, the President of Encore Builders and another officer
         of Encore Builders resigned from the Company. After their resignations,
         the Company's stock issued to them was put on hold by the transfer
         agent. The Company is attempting to have those shares cancelled
         (184,944 shares). Encore Builders is no longer a wholly-owned
         subsidiary of the Company as of March 21, 2002 as the Company returned
         the Encore Builders stock to the former owners.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
         ------------------------------------------

         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 revenues and expenses during the reporting period.
         Actual results could differ from those estimates.

         CASH AND CASH EQUIVALENTS
         -------------------------

         The Company considers all highly liquid debt instruments and other
         short- term investments with an initial maturity of three months or
         less to be cash or cash equivalents.

         The Company maintains cash and cash equivalent balances at a financial
         institution that is insured by the Federal Deposit Insurance
         Corporation up to $100,000.

         SEGMENTS OF BUSINESS
         --------------------

         The Company has adopted Statement of Financial Accounting Standards No.
         131 ("SFAS 131"), "Disclosures about Segments of an Enterprise and
         Relation Information". SFAS 131 changes the way public companies report
         information about segments of their business in their annual financial
         statements and requires them to report selected segment information in
         their quarterly reports issued to shareholders. It also requires
         entity-wide disclosures about the products and services an entity
         provides, the material countries in which it holds assets and reports
         revenues and its major customers. On August 29, 2001, the Company had
         established a new business segment, Encore Builders. On March 21, 2002
         the Company disposed of its wholly-owned subsidiary Encore Builders.
         The Company is actively in search of a replacement subsidiary
         specializing in the areas that Encore Builders had previously provided
         for the Company (See Note 7).

                                       8
<PAGE>
         START-UP COSTS
         --------------

         The Company adopted Statement of Position No. 98-5 ("SOP 98-5"),
         "Reporting the Costs of Start-Up Activities." SOP 98-5 requires that
         all non-governmental entities expense the cost of start-up activities,
         including organizational costs, as those costs are incurred.

         REVENUE AND COST RECOGNITION
         ----------------------------

         The Company had no revenues for the three months ended August 31, 2003
         and 2002.

         Prior to this period of time, the Company's former wholly owned
         subsidiary, Encore Builders, stated that it used the percentage of
         completion method to account for its construction contracts before it
         was acquired by the Company. However, Encore Builders' management was
         unaware of the differences between the percentage of completion method
         and the completed contract method and was recognizing revenue as it was
         received. Encore Builders' management made no critical estimates with
         respect to any jobs in progress, and had no jobs in progress and no
         accounts receivable at December 31, 2000 and 1999. After the Company
         acquired Encore Builders, the Company changed the summary of
         significant accounting policies footnote to show the Company's use of
         the completed contract method, deemed by the Company's management to be
         the appropriate method under the circumstances.

         The completed-contract method recognizes income only when the contract
         is completed, or substantially so. Accordingly, costs of contracts in
         process and current billings are accumulated but there are no interim
         charges or credits to income other than provisions for losses. A
         contract may be regarded as substantially completed if remaining costs
         are not significant in amount.

         As stated, the Company has no revenues for these periods, and pending
         any future acquisitions, may result in changes to this policy.

         INCOME TAXES
         ------------

         Income taxes are computed on the pretax loss based on the current tax
         law. Deferred income taxes are recognized for the tax consequences in
         future years of differences between the tax basis of assets and
         liabilities and their financial reporting amounts at each year-end
         based on enacted tax laws and statutory tax rates. All deferred tax
         assets that arose from the carryforward of net operating losses have
         been offset by a valuation allowance due to the uncertainty of the
         realization of these tax assets.

         FAIR VALUE OF FINANCIAL INSTRUMENTS
         -----------------------------------

         The carrying amounts reported in the condensed balance sheet for cash
         and cash equivalents, and accounts payable approximate fair value
         because of the immediate or short-term maturity of these financial
         instruments.

         STOCK-BASED COMPENSATION
         ------------------------

         The Company has elected to follow Statement of Financial Accounting
         Standards No. 123 ("SFAS 123"), "Accounting for Stock-Based
         Compensation". SFAS 123

                                        9
<PAGE>
         requires companies to provide a pro-forma disclosure of net income and
         earnings per share. The accounting for both fixed and variable awards
         is compensation expense at least equal to a defined minimum value over
         the service period. SFAS 123 measures compensation with reference to
         "fair value", which equals the sum of three elements; intrinsic value,
         time value of money, and time value associated with the stock's
         volatility. There was no compensation for this Company cash or stock
         for these periods.

         EARNINGS (LOSS) PER SHARE OF COMMON STOCK
         -----------------------------------------

         Historical net income (loss) per common share is computed using the
         weighted average number of shares of VAOM Common Stock outstanding.
         Diluted earnings per share (EPS) includes additional dilution from VAOM
         Common Stock equivalents, such as stock issuable pursuant to the
         exercise of stock options and warrants. VAOM Common Stock equivalents
         were not included in the computation of diluted earnings per share when
         the Company reported a loss because to do so would be antidilutive for
         periods presented.

         The following is a reconciliation of the computation for basic and
         diluted EPS:

                                            August 31,          August 31,
                                               2003                2002
                                        -------------------  ------------------
Net loss                                         $ (11,871)          $ (24,064)

Weighted-average common shares
Outstanding (Basic)                             50,000,000             770,000

Weighted-average common stock
Equivalents
     Stock options                                       -                   -
     Warrants                                            -                   -

Weighted-average common shares
Outstanding (Diluted)                           50,000,000             770,000


         There are no options and warrants outstanding to purchase stock at
         August 31, 2003 and 2002.

NOTE 3 - CONVERTIBLE DEBENTURES PAYABLE
         ------------------------------

         The Company has outstanding convertible debentures at August 31, 2003
         in the amount of $400,202. These debentures accrue interest at 8% per
         annum. These debentures matured along with the related interest at
         August 27, 2003. The debentures are convertible at the investors'
         discretion pursuant to the convertible debenture agreement. (See Note
         1) Although these debentures matured on August 27, 2003, the Company
         does not plan to pay principal or interest owed thereunder until the
         Company can obtain additional funding through the sale of its equity
         securities. The holders of the outstanding debentures have been orally
         apprised of the Company's determination.

                                       10
<PAGE>
NOTE 4 - TEMPORARY EQUITY
         ----------------

         The Company has reflected on its condensed balance sheet a temporary
         equity account for the issuance of VAOM Common Stock issued above the
         authorized limit as of August 31, 2003. All related amounts that were
         previously included in VAOM Common Stock and additional paid-in capital
         of the permanent stockholders' equity (deficit) section have been
         reclassified to temporary equity as their redemption may not be solely
         within the control of the issuer.

         The Company, during the fiscal year ended May 31, 2002, issued
         60,340,595 common shares that had been recorded in temporary equity as
         of May 31, 2002. As of May 31, 2002, all the shares issued in
         connection with the conversion of the debentures had been reclassified
         as temporary equity and all 60,340,595 shares reclassified as temporary
         equity were issued in connection with the conversion of the debentures.
         Of the common shares that had been recorded as temporary equity during
         fiscal year 2002, 11,110,595 common shares were issued in excess of the
         Company's authorized limit of 50 million. The Company had reclassified
         the corresponding amounts from permanent equity (deficit) accordingly
         as of May 31, 2002. As of May 31, 2003 and August 31, 2003, only these
         11,110,595 common shares remain in temporary equity.

         During the quarter ended November 30, 2002, those shares that may not
         have been in compliance with Section 5 of the Securities Act of 1933,
         as amended were reclassified back to permanent stockholders' equity
         (deficit). As of August 31, 2003 there was $22,640 in temporary equity.

NOTE 5 - STOCKHOLDERS' DEFICIT
         ---------------------

         At May 31, 2003 and 2002, the Company had two classes of stock,
         preferred and common stock, each having a par value of $.001.

         PREFERRED STOCK
         ---------------

         On August 23, 2001, the Company increased its authorized shares to
         10,000,000 from 1,000,000 and during the year ended May 31, 2002 the
         Company issued 2,500,000 shares of preferred stock. The Company
         recorded an expense of $25,000 which was the fair value of the stock
         traded on November 5, 2001, the date the preferred shares were issued,
         at $.01 per share. There has been no activity with this class of stock
         since that date.

         COMMON STOCK
         ------------

         On August 23, 2001 a 1:20 reverse stock split of the Company's common
         stock became effective. This stock split decreased the issued and
         outstanding common stock from 15,000,000 to 750,000. Additionally, the
         authorized shares of common stock increased from 15,000,000 to
         50,000,000.

         On August 31, 2001, the Company issued 20,000 shares of common stock to
         a consultant. This was recorded at fair value of $.08 per share
         ($1,600).

                                       11
<PAGE>
NOTE 6 - SHORT-TERM NOTES PAYABLE AND ADVANCES
         -------------------------------------

         During the year ended May 31, 2003, the Company had received a total of
         $65,985 either in the form of short-term promissory notes bearing
         interest at 15% annually, or through advances from affiliated companies
         either in the form of cash or through the payment of legal and
         professional fees on behalf of the Company by affiliated companies.
         During the three months ended August 31, 2003, the Company had reduced
         these advances by $50, and at August 31, 2003 the balance outstanding
         is $65,935 with accrued interest of $8,106 on these obligations (See
         Note 10).

NOTE 7 - GOING CONCERN
         -------------

         As shown in the accompanying condensed financial statements the Company
         incurred net operating losses for the three months ended August 31,
         2003 and 2002. The Company has no revenues to support itself.

         In view of these matters, continuing as a going concern is dependent
         upon the Company's ability to raise additional capital, and to secure a
         future business combination. Management believes that actions planned
         and presently being taken to revise the Company's operating and
         financial requirements provide the opportunity for the Company to
         continue as a going concern.

NOTE 8 - CONTINGENCY / UNCERTAINTIES
         ---------------------------

         The Company, during the year ended May 31, 2002, issued 11,110,595
         common shares above its authorized limit of 50 million shares.
         Additionally, the issuance of 60,340,595 shares for debenture
         conversions, interest expense and discounts on convertible debentures
         may not be in compliance with the registration provisions of Section 5
         of the Securities Act. The full impact of these events are unknown at
         this time. As of May 31, 2002, the Company had reserved $122,956 in
         temporary equity. (See Note 5) The $122,956 held in temporary equity as
         of May 31, 2002 was the reserve for the contingent liability should the
         debentures not be in compliance with Section 5 of the Securities Act.
         The Company considered the impact of FASB 5 and believes that this
         reserve reflects the potential and probable liability due. The amount
         of the temporary reserve as of May 31, 2002 was derived substantially
         from the issuance of common stock and additional paid-in capital to
         convert the principal debentures of $44,348, the amount of amortized
         discount on debenture conversions $39,794, the amount of interest
         expense converted on the debentures of $1,927 and the amount of accrued
         expenses paid $36,887. The $122,956 balance in temporary equity as of
         May 31, 2002 was reduced in November 2002 to $22,640 for the
         reclassification of shares from temporary equity to permanent
         stockholders' equity (deficit), and no further reductions in temporary
         equity have occurred in this fiscal year. The temporary equity account
         acts as a reserve for capital that the Company may be required to repay
         (See Note 4).

NOTE 9 - LITIGATION
         ----------

         At about the time the Company discontinued its business in 1983, it
         experienced adverse litigation, and judgments were rendered against the
         Company. In official records of Broward and Palm Beach Counties in the
         State of Florida, persons holding judgments did not re-certify or
         re-file their judgments within the time limits as required by Florida

                                       12
<PAGE>
         statutes. Management is not able to determine whether the above would
         have a material impact on its consolidated financial statements.

NOTE 10 - RELATED PARTY TRANSACTIONS
          --------------------------

         Pursuant to a stock purchase agreement dated August 27, 2001, the
         Company's former owners sold 492,480 shares of VAOM Common Stock to
         Acquisition Corp. for $350,000 in August 2001.

         Also on August 27, 2001 Acquisition Corp. issued 15,000 shares of VAOM
         Common Stock to each of Peter Porath, the Company's President and Chief
         Executive Officer at the time, and Michael Schumacher, the Company's
         Vice President at the time.

         On August 28, 2001, Acquisition Corp. declared a stock dividend of
         462,486 shares of VAOM Common Stock to the new directors of the
         Company. The Company distributed the remaining 30,000 shares of VAOM
         Common Stock it owned to the former owners of the Company.

         On August 29, 2001, the Company purchased 9,000 newly issued shares of
         Acquisition Corp. Common Stock for $1. Christopher Astrom and Braulio
         Gutierrez were the two stockholders of Acquisition Corp. at the time
         and had also been granted a stock dividend giving them 37% and 25%,
         respectively, of VAOM Common Stock.

         On August 29, 2001, Acquisition Corp. entered into an agreement with
         Braulio Gutierrez and Christopher Astrom, the sole stockholders of
         Encore Builders and with Encore Builders to purchase the Encore
         Builders Common Stock. At this time, one of the directors of Encore
         Builders, Christopher Astrom, was a principal stockholder and director
         of the Company. Encore Builders was engaged in the construction of the
         Conquistador Plaza Apartments in Miami, Florida, pursuant to
         construction contract with Conquistador Plaza, dated January 30, 2001.
         National Residential Properties, Inc., an affiliate of the Company, was
         the parent company of Conquistador Plaza. On March 20, 2002, Braulio
         Gutierrez, who was then President and a director of the Company, and
         Braulio Gutierrez's sister, Patricia Gutierrez, who was then Vice
         President, Treasurer, and a director of the Company, resigned from the
         Company. Subsequently the Company assigned to Braulio Gutierrez the
         Encore Builders Common Stock held by the Company and Braulio Gutierrez
         assigned to the Company his shares of VAOM Common Stock.

         Subsequently, Acquisition Corp. was merged into the Company via a
         "short-form" merger pursuant to Sections 251 and 253 of the Delaware
         General Corporation Law. Pursuant to the merger, the Company assumed
         all the rights and obligations of Acquisition Corp., which at the time
         was owned by Christopher Astrom and Braulio Gutierrez, who also held
         37% and 25%, respectively, of the outstanding VAOM Common Stock.

         The Company issued 2.5 million shares of its preferred stock to an
         officer during the year ended May 31, 2002. An expense of $25,000 was
         recognized, which represented the fair value of the stock on November
         5, 2001.

         As discussed in Note 6, the Company from time to time has been advanced
         amounts either through short-term promissory notes, advances, or
         through the payment of legal and professional fees from affiliated
         companies. As of August 31, 2003, the Company

                                       13
<PAGE>
         has outstanding amounts due its affiliates of $65,935. Of this amount
         $36,285 is due National Residential Properties, Inc., $4,950 is due
         Prime Rate Investors, Inc., and $24,700 is due Genesis Capital
         Corporation of Nevada.

         A loan in the amount of $115,057 by Braulio Gutierrez, the Company's
         former President, in favor of the Company, was transferred to Encore
         Builders when Encore Builders was separated from the Company.
















































                                       14
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

         THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH THE
COMPANY'S FINANCIAL STATEMENTS AND THE NOTES TO THOSE STATEMENTS AND OTHER
FINANCIAL INFORMATION APPEARING ELSEWHERE IN THIS REPORT.

OVERVIEW

         From 1983 until August 29, 2001, Vacation Ownership Marketing, Inc.
(the "COMPANY"), a Delaware corporation, was not engaged in any business. In
August 2001, the Company underwent several changes:

            o     Effective August 23, 2001, a 1:20 reverse stock split of the
                  Company's common stock ("VAOM COMMON Stock") became effective.
                  Pre-split, there were 15 million shares of VAOM Common Stock
                  issued and outstanding; post-split, there were 750,000 shares
                  of VAOM Common Stock issued and outstanding.

            o     Effective August 23, 2001, the Company amended its Certificate
                  of Incorporation to increase the number of shares of VAOM
                  Common Stock authorized from 15 million to 50 million and
                  increase the number of shares of its preferred stock
                  authorized from 1 million to 10 million.

            o     On August 27, 2001, VAOW Acquisition Corp., a Delaware
                  corporation ("ACQUISITION CORP.") purchased 492,480 shares
                  (post-split) of VAOM Common Stock from Peter Porath, Peter
                  Porath and Ann Porath, Prime Rate Income & Dividend, Inc, and
                  Michael Schumacher for $350,000, pursuant to an agreement
                  dated August 27, 2001. At the time, these sellers were
                  significant holders of the Company's capital stock and Peter
                  Porath was one of the Company's directors.

            o     On August 27, 2001, Acquisition Corp. entered into an escrow
                  agreement with the sellers mentioned above and Ann Porath,
                  Esq., as the escrow agent, pursuant to which $50,000 was
                  escrowed for 60 days as security for the indemnifications
                  given by the sellers mentioned above under the stock purchase
                  agreement.

            o     In contemplation of the financing of the foregoing
                  acquisition, on August 27, 2001, Acquisition Corp. obtained a
                  loan from certain accredited investors evidenced by its 8%
                  Series A $1,000,000 Senior Subordinated Convertible Redeemable
                  Debentures (the "ACQUISITION CORP. DEBENTURES"). The
                  Acquisition Corp. Debentures were offered pursuant to an
                  exemption from Section 5 of the Securities Act of 1933, as
                  amended (the "SECURITIES ACT"). The ability to rely on this
                  exemption has since been called into question.

            o     The Acquisition Corp. Debentures were convertible into
                  Acquisition Corp.'s common stock ("ACQUISITION CORP. COMMON
                  STOCK") from time to time. Thereafter, as contemplated by the
                  stock purchase agreement, and for services rendered,
                  Acquisition Corp. issued 15,000 shares each of VAOM Common
                  Stock (which it then owned) to Messrs. Porath and Michael
                  Schumacher, and subsequently the Company issued 20,000 shares
                  of VAOM Common Stock to NevWest Securities Corporation.

                                       15
<PAGE>
            o     Prior to the reorganization of Acquisition Corp. described
                  below, Acquisition Corp.'s capital structure consisted of 10
                  million shares of Acquisition Corp. Common Stock, of which
                  1,000 shares were issued and outstanding and were held by
                  Christopher Astrom (600 shares) and Braulio Gutierrez (400
                  shares).

            o     On August 28, 2001, Acquisition Corp. declared a stock
                  dividend of shares of VAOM Common Stock owned by it to
                  Christopher Astrom (277,492 shares) and Braulio Gutierrez
                  (184,994 shares), who, at that time, were the sole
                  stockholders of Acquisition Corp. As a result of this stock
                  dividend, Christopher Astrom became the owner of 277,492
                  shares of VAOM Common Stock, and Braulio Gutierrez became the
                  owner of 184,994 shares of VAOM Common Stock on September 4,
                  2001, the date they received their stock certificates.

            o     On August 29, 2001, Acquisition Corp. entered into an
                  agreement with Christopher Astrom and Braulio Gutierrez, who
                  were then the sole stockholders of Encore Builders, Inc.
                  ("ENCORE BUILDERS") and with Encore Builders, to purchase
                  Encore Builders' common stock ("ENCORE BUILDERS COMMON
                  Stock"). Encore Builders was at the time a general contractor
                  in the business of building multi-family residential apartment
                  units. Acquisition Corp. purchased all of the issued and
                  outstanding Encore Builders Common Stock from its two
                  stockholders for $1 and 900 shares of Encore Builders Common
                  Stock from Encore Builders for $470,000. Approximately $4,550
                  was paid in cash and $465,450 was paid in the form of a
                  promissory demand note.

            o     On August 29, 2001, the Company purchased from Acquisition
                  Corp. 9,000 newly issued shares of Acquisition Corp. Common
                  Stock (in excess of the 1,000 already owned by Christopher
                  Astrom and Braulio Gutierrez) for $1.

            o     Subsequently, Acquisition Corp. was merged into the Company
                  via a "short-form" merger pursuant to Sections 251 and 253 of
                  the Delaware General Corporation Law, which permit a
                  corporation of which at least 90% of the stock of each class
                  is owned by a parent company, to be merged into the parent
                  company without stockholder approval. Pursuant to this merger,
                  and by operation of law, the Company assumed all of the rights
                  and obligations of Acquisition Corp. Thus, (a) Encore Builders
                  became the Company's wholly-owned subsidiary, (b) all of the
                  issued and outstanding shares of Acquisition Corp. Common
                  Stock owned by Messrs. Astrom and Gutierrez (i.e., 1,000
                  shares) were surrendered by them to, and were canceled by, the
                  Company, (c) all of the issued and outstanding shares of the
                  Acquisition Corp. Common Stock owned by the Company were
                  canceled by the Company, and (d) the Acquisition Corp.
                  Debentures were surrendered to the Company, canceled, and new
                  debentures (the "VAOM DEBENTURES"), identical to the
                  Acquisition Corp. Debentures were issued by the Company to the
                  holders of the Acquisition Corp. Debentures.

            o     Subsequently, the holders of the VAOM Debentures exercised
                  their rights to convert the VAOM Debentures into VAOM Common
                  Stock. As a result of the conversion, coupled with the
                  decrease in the trading price of VAOM Common Stock, investors
                  were entitled to more shares of VAOM Common Stock than were
                  authorized.

            o     The debentures were issued, exchanged and converted pursuant
                  to exemptions from Section 5 of the Securities Act. The
                  ability to rely on these exemptions has since been called into
                  question.

                                       16
<PAGE>
            o     The Company's ability to rely on exemptions from the
                  registration requirements of Section 5 relating to the
                  issuance, exchange and conversion of the debentures has been
                  called into question. It appears the Company may have violated
                  Section 5. The ramifications of this may entail a possible
                  rescission offer to the stockholders affected within the past
                  year. Section 13 of the Securities Act provides that no action
                  shall be maintained for offering or selling securities in
                  violation of Section 5 unless that action is brought within
                  one year of the date of the violation. The risk of possible
                  rescission compelled the Company to record all possible claims
                  within one year from the date of previous reports as temporary
                  equity, rather than permanent equity. One year has passed from
                  the initial placement and conversion of the VAOM Debentures.
                  The holders of the VAOM Debentures converted $44,348 of the
                  VAOM Debentures issued, $1,927 of interest paid and $36,887 of
                  professional fees paid (a total of approximately $83,162) and
                  received a total of 60,340,595 shares of VAOM Common Stock,
                  with an average price of $.00137 per share. All shares of VAOM
                  Common Stock were sold by holders of the VAOM Debentures
                  following conversion. This occurred during the period
                  beginning on October 4, 2001 and ending on December 19, 2001.
                  The closing market prices during this time ranged from less
                  than $.001 to $.510 per share. As of the date of this report,
                  there have been no actions filed against the Company based
                  upon a violation of Section 5. Because the statute of
                  limitations has run, it is unlikely that these holders of VAOM
                  Common Stock will file an action against the Company. However,
                  any such action maintained against the Company could have a
                  substantial impact on the Company's liquidity as the Company
                  currently has no revenues. As such, the Company could not
                  afford to offer rescission.

            o     On November 5, 2001, the Company designated 2.5 million shares
                  of its preferred stock as Series A Preferred Stock and issued
                  them to Christopher Astrom, an officer, director and principal
                  stockholder of the Company. Each share of the Series A
                  Preferred Stock is convertible into one hundred (100) shares
                  of VAOM Common Stock and has a vote equivalent to one share of
                  VAOM Common Stock. However, because the Company has issued
                  shares of VAOM Common Stock in excess of the amount
                  authorized, Christopher Astrom may not currently convert the
                  Series A Preferred Stock held by him into VAOM Common Stock.

            o     On December 17, 2001, the Company, the holders of the VAOM
                  Debentures and Sroya Holdings Company, Inc. ("SROYA
                  HOLDINGS"), as escrow agent, entered into an escrow agreement
                  whereby the Company agreed to deposit 100 million shares of
                  VAOM Common Stock with Sroya Holdings for issuance upon
                  conversion of the VAOM Debentures. The escrow agreement
                  provides that if the Company does not have a sufficient number
                  of shares of VAOM Common Stock to meet the requirement of 100
                  million shares, it must deposit with Sroya Holdings the number
                  of shares of VAOM Common Stock authorized but unissued, and
                  upon authorization of a sufficient additional number of
                  shares, deposit additional shares with Sroya Holdings.
                  Further, pursuant to the escrow agreement, notices of
                  conversion of the VAOM Debentures must be simultaneously sent
                  to the Company and to Sroya Holdings as shares issued upon
                  conversion of the VAOM Debentures are released by Sroya
                  Holdings. The escrow agreement calls for the deposit of
                  "freely tradeable" securities into the escrow. At the time the
                  Company entered into the escrow agreement, it believed it
                  could rely on an exemption to Section 5 of the Securities Act
                  to issue the VAOM Common Stock to be used upon conversion of
                  the VAOM Debentures. The Company currently believes that it
                  will not be able to rely on an exemption to Section 5 of the
                  Securities Act and, as such, will not be able to deposit
                  "freely tradeable" securities into the escrow. Choosing not to

                                       17
<PAGE>
                  deposit "freely tradeable" securities into the escrow may
                  constitute a breach under the terms of the VAOM Debentures.
                  For further discussion of this matter, see the discussion
                  under "Liquidity and Capital Resources". As of the date of
                  this report, Sroya Holdings does not hold any shares of VAOM
                  Common Stock. The Company does not plan to issue additional
                  shares of Common Stock to Sroya Holdings. The Company and the
                  holders of the VAOM Debentures agreed to indemnify Sroya
                  Holdings, pursuant to the terms of the escrow agreement, for
                  acts relating to the escrow of VAOM Common Stock.

            o     It appears that the Company is or will be in default under the
                  terms of the VAOM Debentures because, among other things, the
                  Company has no plans to register additional VAOM Common Stock
                  to be issued upon conversion of the VAOM Debentures that are
                  currently outstanding and has no plans to complete the
                  issuance of the VAOM Debentures. Although debentures matured
                  on August 27, 2003, the Company also does not plan to pay
                  principal or interest owed thereunder until the Company can
                  obtain additional funding through the sale of its equity
                  securities. The holders of the outstanding debentures have
                  been orally apprised of the Company's determination. Given the
                  foregoing, the Company could face litigation by the holders of
                  the VAOM Debentures seeking to enforce the Company's
                  obligations thereunder. As the Company currently has almost no
                  assets, the Company would have to incur further indebtedness
                  to pay any legal costs resulting from litigation. This would
                  likely have a substantial negative impact on the Company's
                  capital resources and would also negatively affect the
                  Company's liquidity.

            o     The Company currently functions only as a shell corporation as
                  it has no revenues, significant assets or independent
                  operations.

ENCORE BUILDERS

         Encore Builders, the Company's former wholly-owned subsidiary, was
engaged in the construction of the Conquistador Plaza Apartments in Miami,
Florida, pursuant to a lump sum construction contract with Conquistador Plaza,
dated January 30, 2001, for a fixed price of $3,111,289. This project was funded
by Conquistador Plaza through a mortgage in the principal amount of
approximately $4.6 million provided by First Housing Development Corporation of
Florida, Inc. Encore Builders was paid on a construction draw-down basis as it
completed its work. The construction contract between Encore Builders and
Conquistador Plaza provided that the construction would be completed by October
29, 2001, and further provided for liquidated damages payable by Encore Builders
to Conquistador Plaza in the amount of $1,395.50 per day for each day after
October 29, 2001, that the project was not completed.

         Because Encore Builders did not finish construction on time, the
project was not completed. Conquistador Plaza and its parent company, National
Residential Properties, Inc., an affiliate of the Company, initially determined
that it would be best served by waiving liquidated damages. Subsequently,
Conquistador Plaza reevaluated this decision and declared Encore Builders, Inc.
in default of its construction contract.

         As the Company had purchased all the issued shares of Encore Builders
Common Stock but had not purchased the balance of the authorized capital stock
of Encore Builders, and in light of the dispute regarding construction delays on
the construction project, the Company and Encore Builders decided to separate
the businesses. On March 20, 2002, Braulio Gutierrez, who was then President and
a director of the Company, and Braulio Gutierrez's sister, Patricia Gutierrez,
who was then Vice President, Treasurer and a director of the Company, resigned
from the Company. Christopher Astrom, a principal stockholder

                                       18
<PAGE>
and a director of the Company, replaced Braulio Gutierrez as President.
Subsequently, the Company assigned to Braulio Gutierrez the Company's Encore
Builders Common Stock. It was anticipated that Braulio Gutierrez would assign to
the Company his shares of VAOM Common Stock. The Company has fulfilled its
obligations to Braulio Gutierrez, but Mr. Gutierrez has yet to deliver stock
certificates representing his shares of VAOM Common Stock. The transfer agent
has put a hold on this VAOM Common Stock until this matter is resolved. As a
result of the separation of Encore Builders from the Company, other issues may
arise. For example, it is possible that approval from the Company's stockholders
was required in order to assign the Encore Builders Common Stock to Braulio
Gutierrez. If so, the transaction could be challenged by the Company's
stockholders who could seek to undo the transaction and compel the Company to
obtain the assigned Encore Builders Common Stock. It is, however, unclear given
its value whether the Encore Builders Common Stock is worth any legal expense.
If the Company's stockholders did file a derivative suit on behalf of the
Company, the Company would also have to bear the costs of such a suit. Any such
action could have a substantial impact on the Company's liquidity, and as the
Company currently has no revenues, could substantially and negatively impact the
Company's capital resources.

         On April 1, 2002, Encore Builders filed a mechanic's lien against
Conquistador Plaza, in the amount of $504,000, and Conquistador Plaza asserted a
claim against Encore Builders for liquidated damages. The Company is not and
does not expect to become a party to this litigation.

OUTLOOK

         Without Encore Builders as its subsidiary, the Company has had no
operating business since on or about March 20, 2002. The Company intends to
explore other business opportunities. There can be no assurance that the Company
will be able to find any suitable business opportunity. Suitable business
opportunities may include those presented to the Company by persons or firms
desiring to seek the perceived advantages of a corporation registered under the
Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT"). The Company
will not restrict its search to any specific business, industry, or geographic
location and the Company may participate in a business venture of virtually any
kind or nature.

         The Company has, and will continue to have, little or no capital with
which to provide the owners of business opportunities any significant cash or
other assets. However, management believes the Company will be able to offer
owners of acquisition candidates the opportunity to acquire a controlling
ownership interest in a publicly registered company without incurring the cost
and time required to conduct an initial public offering. Any such acquisition
candidate will, however, incur significant legal and accounting costs in
connection with an acquisition of the Company, including the costs of preparing
current reports on Form 8-K and periodic reports on Form 10-Q or 10-QSB and Form
10-K or 10-KSB, various agreements and other documents. The Exchange Act
specifically requires that any merger or acquisition candidate comply with all
applicable reporting requirements, which include providing audited financial
statements within the numerous filings relevant to complying with the Exchange
Act. The officers and directors of the Company have not conducted market
research and are not aware of statistical data which would support the perceived
benefits of a merger or acquisition transaction for the owners of a business
opportunity. Additionally, the Company believes it will not be able to engage in
a business combination transaction until the overissuance of VAOM Common Stock
is cured and the Company increases the authorized number of shares of VAOM
Common Stock.

PLAN OF OPERATIONS

         The Company currently plans to satisfy its cash requirements for the
next 12 months by borrowing from National Residential Properties, Inc., an
affiliate of the Company and believes it can

                                       19
<PAGE>
satisfy its cash requirements so long as it is able to obtain financing from
National Residential Properties, Inc. The Company currently expects that money
borrowed from National Residential Properties, Inc. will be used during the next
12 months to satisfy the Company's operating costs, professional fees and for
general corporate purposes. The Company currently has no plans to conduct any
research and development, to purchase or sell any significant equipment or to
make any significant changes in its number of employees.

RECENT ACCOUNTING PRONOUNCEMENTS

         The Company continues to assess the effects of recently issued
accounting standards. The impact of all recently adopted and issued accounting
standards has been disclosed in the Notes to the audited Consolidated Financial
Statements.

CRITICAL ACCOUNTING ESTIMATES

         The Company is a shell company and, as such, the Company does not
employ critical accounting estimates. Should the Company resume operations it
will employ critical accounting estimates and will make any and all disclosures
that are necessary and appropriate.




































                                       20
<PAGE>
                                  RISK FACTORS

         IN ADDITION TO OTHER INFORMATION IN THIS REPORT, YOU SHOULD CONSIDER
THE FOLLOWING RISK FACTORS CAREFULLY. THESE RISKS MAY IMPAIR THE COMPANY'S
OPERATING RESULTS AND BUSINESS PROSPECTS AS WELL AS THE MARKET PRICE OF THE
COMPANY'S COMMON STOCK.

RISKS RELATED TO THE COMPANY'S FINANCIAL CONDITION AND BUSINESS MODEL

The Company's Liquidity is Limited and It May Not Be Able to Obtain Sufficient
Funds to Fund Its Business

         The Company's cash is currently very limited and may not be sufficient
to fund future operations. These factors may make the timing, amount, terms and
conditions of additional financing unattractive for the Company. If the Company
is unable to raise additional capital, any future operations could be impeded.
If the Company obtains additional funding, the issuance of additional capital
stock may be dilutive to the Company's stockholders. The Company will likely
have substantial difficulty raising additional capital unless and until it comes
into compliance with Delaware state law and Section 5 of the Securities Act.

The Company Has Received a Going Concern Opinion from Its Auditors

         The Company's consolidated financial statements have been prepared on
the assumption that the Company will continue as a going concern. The Company's
independent auditors have issued a report dated July 31, 2003, that includes an
explanatory paragraph stating the Company's lack of revenue generating
activities and substantial operating deficits, among other things, raise
substantial doubt about the Company's ability to continue as a going concern.

The Company Currently Has No Operations

         The Company has had no operations since the resignation on March 20,
2002 of the Company's President, Braulio Gutierrez and the subsequent return of
the Company's Encore Builders Common Stock to Braulio Gutierrez.

It May Be Difficult to Consummate a Merger or Acquisition With a Private Entity

         Upon the resolution of certain legal uncertainties described below, the
Company expects its purpose will include locating and consummating a merger or
acquisition with a private entity. The Company anticipates that the selection of
a business opportunity in which to participate will be complex and extremely
risky. The Company has, and will continue to have, little or no capital with
which to provide the owners of business opportunities any significant cash or
other assets. However, management believes the Company will be able to offer
owners of acquisition candidates the opportunity to acquire a controlling
ownership interest in a publicly registered company without incurring the cost
and time required to conduct an initial public offering. Such an acquisition
candidate will, however, incur significant legal and accounting costs in
connection with an acquisition of the Company, including the costs of preparing
current and periodic reports, various agreements and other documents.






                                       21
<PAGE>
RISKS RELATED TO LEGAL UNCERTAINTIES

The Company Believes It Has Violated Delaware State Law

         The Company's Certificate of Incorporation, as amended, currently
authorizes the issuance of up to 50 million shares of VAOM Common Stock. It has
come to the Company's attention that, as a result of the conversion of the VAOM
Debentures into VAOM Common Stock, coupled with the decrease in the trading
price of VAOM Common Stock, investors were entitled to more shares of VAOM
Common Stock than were authorized. As a result, as of April 1, 2003, the Company
had 61,110,595 shares of VAOM Common Stock issued, which exceeds the number of
shares authorized.

         Under the state law of Delaware, the issuance of VAOM Common Stock in
excess of the amount authorized may be voidable, but can be cured. It may be
possible to cure the overissuance by having the Company's board of directors
approve an amendment to the Company's Certificate of Incorporation so long as
the Company's stockholders agree. If this cannot be accomplished, then the
Company may be liable to the holders of the VAOM Common Stock issued in excess
of the authorized amount in an amount equal to 11,110,595 shares (the number of
shares issued in excess of the amount authorized) multiplied by the price each
such share was issued for (which ranged from approximately $.084 to $.0001 per
share). As trading has been halted on VAOM Common Stock, the overissuance,
together with the Company's inability to increase its authorized number of
shares has practically eliminated the Company's ability to raise capital. The
Company believes it will not be able to continue trading VAOM Common Stock,
increase its capital resources or engage in a business combination transaction
until the overissuance is cured and the Company increases the authorized number
of shares of VAOM Common Stock.

         Section 271 of the Delaware General Corporation Law provides that a
corporation may at a meeting of its board of directors sell all or substantially
all of its property and assets when and as authorized by a resolution adopted by
the holders of a majority of the outstanding stock of the corporation entitled
to vote on such a matter. On March 20, 2002, Braulio Gutierrez, who was then
President and a director of the Company, and Braulio Gutierrez's sister,
Patricia Gutierrez, who was then Vice President, Treasurer and a director of the
Company, resigned from the Company. Subsequently, the Company assigned to
Braulio Gutierrez the Encore Builders Common Stock held by the Company. This
assignment may be deemed a sale of substantially all of the Company's property
and assets and may have required the approval of the Company's stockholders. By
not attaining stockholder approval, the Company may have violated Delaware state
law. If so, the transaction could be challenged by the Company's stockholders
who could seek to undo the transaction and compel the Company to obtain the
assigned Encore Builders Common Stock. It is unclear, however, given its value,
whether the Encore Builders Common Stock is worth any legal expense. If the
Company's stockholders did file a derivative suit on behalf of the Company, the
Company would also have to bear the costs of such a suit. Any such action could
have a substantial impact on the Company's liquidity, and as the Company
currently has no revenues, could substantially and negatively impact the
Company's capital resources. The Company intends to seek stockholder approval
to, among other things, ratify the assignment and provide a related information
statement on Schedule 14C to its stockholders shortly after the Company is
satisfied it has resolved any of the Securities and Exchange Commission's (the
"SEC") comments on such Schedule 14C.

The Company May Face Litigation for Issuing Securities in Violation of Section 5
of the Securities Act

         Section 5 of the Securities Act prohibits the sale of securities absent
an effective registration statement being filed with the SEC, unless an
exemption from registration applies. On August 27, 2001, the Company's former
parent, Acquisition Corp., offered the Acquisition Corp. Debentures. The
Acquisition Corp. Debentures were exchanged for the VAOM Debentures, and the
shares of VAOM

                                       22
<PAGE>
Common Stock underlying the converted portion of the VAOM Debentures were sold
by the holders of the VAOM Debentures. This series of transactions was performed
in a manner thought to be exempt from the registration requirements of Section 5
of the Securities Act. However, the requirements of the exemptions relied on do
not appear to have been satisfied. Section 13 of the Securities Act provides
that no action shall be maintained for offering or selling securities in
violation of Section 5 unless that action is brought within one year of the date
of the violation. Because actions by the holders of VAOM Common Stock received
upon conversion of the VAOM Debentures are now likely barred by this statute of
limitations, the Company has reclassified certain amounts from temporary equity
to permanent stockholder equity. One year has passed from the initial placement
of the VAOM Debentures and $44,348 of the VAOM Debentures issued, $1,927 of
interest paid and $36,887 of professional fees (a total of approximately
$83,162) were converted during the period beginning on September 24, 2001 and
ending on December 20, 2001. The holders of the VAOM Debentures converted
$44,348 of the VAOM Debentures issued, $1,927 of interest paid and $36,887 of
professional fees paid (a total of approximately $83,162) and received a total
of 60,340,595 shares of VAOM Common Stock, with an average price of $.00137 per
share. All shares of VAOM Common Stock issued upon conversion of the VAOM
Debentures were sold by holders of the VAOM Debentures following conversion.
This occurred during the period beginning on October 4, 2001 and ending on
December 19, 2001. The closing market prices during this time ranged from less
than $.001 to $.510 per share. As of the date of this report, there have been no
actions filed against the Company based upon a violation of Section 5. Because
the statute of limitations has run, it is unlikely that these holders of VAOM
Common Stock will file an action against the Company. However, any such action
maintained against the Company could have a substantial impact on the Company's
liquidity, and as the Company currently has no revenues, could also have a
substantial impact on the Company's capital resources. The ramifications of this
may entail a possible enforcement action by the SEC.

         As of the date of this report, the Company has not received $425,450 in
additional proceeds from the sale of debentures and has $400,202 in VAOM
Debentures outstanding. The Company has no plans to issue additional VAOM
Debentures for any amounts not yet received and has no plans to permit
outstanding VAOM Debentures to be converted.

The Company May Not Be Able to Raise Additional Capital

         On December 12, 2001, the Company filed an information statement on
Schedule 14C with the SEC to increase the number of shares of authorized VAOM
Common Stock, among other things. The Company plans to seek stockholder approval
to increase the number of shares of authorized VAOM Common Stock and provide a
related information statement on Schedule 14C to its stockholders shortly after
the Company is satisfied it has resolved any of the SEC's comments on such
Schedule 14C. Pending resolution of this matter, the Company will not be able to
realize any proceeds from the sale of the VAOM Debentures, other debt, or
equity. Even if the Company were able to increase its authorized capital, there
can be no assurance that the Company will be able to raise additional capital on
a debt or equity basis, or to obtain mortgage financing.

The Company May Be in Default Under the VAOM Debentures

         It appears that the Company is or will be in default under the terms of
the VAOM Debentures because, among other things, the Company has no plans to
register additional VAOM Common Stock to be issued upon conversion of the VAOM
Debentures that are currently outstanding and has no plans to complete the
issuance of the VAOM Debentures. Although debentures matured on August 27, 2003,
the Company also does not plan to pay principal or interest owed thereunder
until the Company can obtain additional funding through the sale of its equity
securities. The holders of the outstanding debentures have been orally apprised
of the Company's determination. Given the foregoing, the Company could face

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litigation by the holders of the VAOM Debentures seeking to enforce the
Company's obligations thereunder. As the Company currently has almost no assets,
the Company would have to incur further indebtedness to pay any legal costs
resulting from litigation. This would likely have a substantial negative impact
on the Company's capital resources and would also negatively affect the
Company's liquidity.

OTHER RISKS

The Company's Stock Price Has Declined Significantly and May Not Rebound

         The trading price of VAOM Common Stock has declined significantly since
approximately October 2001. The market for VAOM Common Stock is essentially
non-existent and there can be no assurance of a change in the immediate future.

The Company may be Subject to Penny Stock Regulations and Requirements for Low
Priced Stock

         The SEC adopted regulations which generally define a "penny stock" to
be any non-Nasdaq equity security that has a market price of less than $5.00 per
share, subject to certain exceptions. Based upon the price of VAOM Common Stock
as currently traded on the OTC Bulletin Board, VAOM Common Stock is subject to
Rule 15g-9 under the Exchange Act which imposes additional sales practice
requirements on broker-dealers which sell securities to persons other than
established customers and "accredited investors." For transactions covered by
this rule, a broker-dealer must make a special suitability determination for the
purchaser and have received a purchaser's written consent to the transaction
prior to sale. Consequently, this rule may have a negative effect on the ability
of stockholders to sell common shares of the Company in the secondary market.

Additional Debt, Convertible Debt, or Equity Financing May Effect Ability of
Investors to Sell VAOM Common Stock

         VAOM Common Stock currently trades on the OTC Bulletin Board. Stocks
trading on the OTC Bulletin Board generally attract a smaller number of market
makers and a less active public market and may be subject to significant
volatility. If the Company raises additional capital from the sale of VAOM
Common Stock, the market price could drop and the ability of investors to sell
VAOM Common Stock could be diminished. Additionally, should the Company obtain
the approval of its stockholders to increase the authorized shares of VAOM
Common Stock, the holders of the VAOM Debentures will be able to convert the
VAOM Debentures into VAOM Common Stock, thus further increasing the number of
shares of VAOM Common Stock outstanding. The issuance of shares of VAOM Common
Stock upon conversions of the VAOM Debentures may not only result in a
substantial number of shares of VAOM Common Stock being available for resale in
the public markets, but the resale of those shares may result in a substantial
decrease in the per-share market price of VAOM Common Stock.

ITEM 3.  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

         Based on their evaluation of the Company's disclosure controls and
procedures conducted as of the end of the period covered by this report on Form
10-QSB, Christopher Astrom, the Company's Chief Executive Officer and Chief
Financial Officer, has concluded that he and Richard Astrom, the Company's only
two directors and officers, are the only individuals involved in the Company's
disclosure process. The Company has no specific procedures in place for
processing and assembling information to be disclosed in the Company's periodic
reports. The Company's system is designed so that information is

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retained by the Company and relayed to counsel as it becomes available. The
Company currently functions only as a shell corporation as it has no revenues,
significant assets or independent operations. The Company intends to establish
more reliable disclosure controls and procedures when merging or entering into
any other business combination with another company.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

         No changes in the Company's internal control over financial reporting
have come to management's attention during the Company's last fiscal quarter
that have materially affected, or are likely to materially affect, the Company's
internal control over financial reporting.

                                     PART II

                                OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         The Company is not a party to any pending legal proceedings nor is any
of the Company's property the subject of any pending legal proceedings. As
Encore Builders was a wholly-owned subsidiary of the Company during the time
that Encore Builders was engaged as the construction contractor for the project,
there can be no assurance that the Company will not become involved in disputes
among the parties to that construction contract and the bonding company, nor
that it will not suffer material adverse financial consequences as a result of
those disputes. Reference is also made to certain legal risks in "RISK FACTORS -
Risks Related to Legal Uncertainties".

         At about the time the Company discontinued its business in 1983, it
experienced adverse litigation, and judgments were rendered against the Company.
In official records of Broward and Palm Beach counties in the State of Florida,
the persons holding judgments did not recertify or refile their judgments within
the time limits as required by Florida statutes. The Company is not able to
determine whether the above would have a material impact on its condensed
consolidated financial statements.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         The Company's Certificate of Incorporation, as amended, currently
authorizes the issuance of up to 50 million shares of VAOM Common Stock. It has
come to the Company's attention that, as a result of the conversion of the VAOM
Debentures into VAOM Common Stock coupled with the decrease in the trading price
of VAOM Common Stock, investors were entitled to more shares of VAOM Common
Stock than authorized. See "RISK FACTORS - Risks Related to Legal
Uncertainties".

         On December 12, 2001, the Company filed an information statement on
Schedule 14C with the SEC to increase the number of shares of authorized VAOM
Common Stock, among other things. Pending resolution of this matter, the Company
will not be able to realize any proceeds from the sale of the VAOM Debentures,
other debt, or equity. See "RISK FACTORS - Risks Related to Legal
Uncertainties".

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         See the discussion in Part I, Item 2 and "RISK FACTORS - Risks Related
to Legal Uncertainties" regarding the Company's inability to provide VAOM Common
Stock to the VAOM Debenture holders upon conversion of the VAOM Debentures,
which items are incorporated into this Item 3 by this reference.

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

         Not applicable.

ITEM 5.  OTHER INFORMATION

GOING CONCERN

         The Company has incurred recurring operating losses and does not have
any revenue generating activities. These conditions raise substantial doubt
about the Company's ability to continue as a going concern. If at any time the
Company determines that it does not have sufficient cash in order to execute the
foregoing strategy, then the Company intends to endeavor to obtain additional
equity or other funding, if it is able do so. However, there can be no assurance
that the Company will be able to raise additional funding necessary to operate.
See "RISK FACTORS - Risks Related to the Company's Financial Condition and
Business Model".

REGISTRATION OF SECURITIES

         The Company appears to be a blank check company, as defined by Rule 419
of Regulation C, promulgated under the Securities Act. Generally, a blank check
company is a development stage company that has no specific business plan or
purpose, is seeking to merge with or acquire an unidentified target, and is
issuing "penny stock". So long as the Company continues to be a blank check
company, any registration statement filed by the Company will need to comply
with Rule 419. Rule 419 requires, among other things, that the proceeds of the
offering and the securities issued pursuant to the offering be placed in escrow
for the benefit of the investors of the securities. The offering must be made
pursuant to an initial registration statement that meets the disclosure
requirements of Rule 419, and the company must file and deliver to the investors
a post-effective amendment upon execution of any agreement for the acquisition
of one or more businesses or assets that will constitute the company's business.
The investors must confirm their investments within prescribed time limits
following the filing of the post-effective amendment, and the acquisition will
be consummated only if the company is in receipt of confirmations from a
sufficient number of investors to permit consummation (which must occur not more
than 18 months following the effective date of the initial registration
statement). However, any investor that does not confirm an investment is
entitled to return of escrowed funds.

         Additionally, it is the SEC's view that promoters and affiliates of a
blank check company may resell their securities only in a registered offering,
as Rule 144 promulgated under the Securities Act is not available. As such, the
Company believes that any resale of VAOM Common Stock by a promoter or affiliate
of the Company would have to be done in a registered offering that complies with
Rule 419.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits:

        EXHIBIT
        NUMBER                    DESCRIPTION
        -------                   -----------

         3.1      Certificate of Incorporation of the Company, as amended
                  (previously filed as Exhibit 3.1 to the Company's annual
                  report on Form 10-KSB filed October 4, 2002).

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<PAGE>

         3.2      Bylaws of the Company (previously filed as Exhibit 3.2 to the
                  Company's annual report on Form 10-KSB filed October 4, 2002).

         4.1      8% Series A Senior Subordinated Convertible Redeemable
                  Debentures Due August 27, 2003 (previously filed as Exhibit
                  4.1 to the Company's quarterly report on

         4.2      Certificate of Designation of Series A Preferred Stock filed
                  November 5, 2001 (previously filed as Exhibit 2.3 to the
                  Company's quarterly report on Form 10-QSB filed on January 18,
                  2002).

         31.1     Certification of the Principal Executive Officer and Principal
                  Financial Officer pursuant to Rule 13a-14(a).

         32.1     Certification of the Principal Executive Officer and Principal
                  Financial Officer pursuant to 18 U.S.C. Section 1350.

(b)      Reports on Form 8-K:

         No reports on Form 8-K were filed with the SEC during the quarter ended
August 31, 2003.


                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the Company
has caused this report to be signed by the undersigned, thereunto duly
authorized.



                                         VACATION OWNERSHIP MARKETING, INC.

Date:  October 14, 2003

                                           By:  /s/ CHRISTOPHER ASTROM
                                                ------------------------------
                                                    Christopher Astrom
                                                    Chief Executive Officer
                                                    Chief Financial Officer
















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