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

                                   FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

                   For the quarterly period ended July 31,2003

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15( d) OF THE EXCHANGE ACT

              For the transition period from________ to __________

                         Commission file number 0-13635

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

<TABLE>
<S>                                                             <C>
Delaware                                                            13-3208094
--------                                                            ----------
(State or other jurisdiction of incorporation                      (IRS Employer
or organization)                                                Identification Number)
</TABLE>

                 85 Amherst Street, Garden City, New York 11530
                 ----------------------------------------------
                     (Address of principal executive offices

                                 (516)-327-0843
                                 --------------
                           (Issuer's telephone number)

                                       N/A
   (Former name, former address and former fiscal year, if changed since last
                                    report)

4,293,856 Common shares outstanding as of August 1,2003
---------

Transitional Small Business Disclosure Format    Yes [  ]  No [ X]
<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

The Financial Statements listed on the accompanying index are filed with and
included as a part of this report.

Item 2. Management's Discussion and Analysis or Plan of Operation
Fiscal 2003 Compared to Fiscal 2002

Revenues for the three months ended July 31,2003 were $0.00 as compared to $0.00
for 2002 The company is a shell and is not conducting any business.

Operating and administrative expenses were$0.00 and $0.00.

Item 3. Controls and Procedures:

         (a)      Evaluation of disclosure controls and procedures. The Company
                  has reviewed its procedures and believes that it has the
                  necessary controls in place to insure the proper dissemination
                  of information in a timely and equitable fashion.

         (b)      There were no changes made to disclosure controls or
                  procedures during the three months ended July 31,2003.

                           PART II- OTHER INFORMATION

                                      None

                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                             SFG FINANCIAL CORPORATION
                                                      (Registrant)

                                             /s/ John A. Dugan
Date: 9/15/03                                ------------------------------
                                             John A. Dugan Chairman/ CEO



                                             /s/ Anthony S. Pintauro
Date: 9/15/03                                ------------------------------
                                             Anthony S. Pintauro  Director
<PAGE>
                                                    CERTIFICATIONS

I, John A. Dugan, certify that:

1.       I have reviewed this quarterly report on Form 10-QSB of SFG Financial
         Corporation:

2.       Based on my knowledge, this quarterly report does not contain any
         untrue statement of a material fact or omit to state a material fact
         necessary to make the statements made, in light of the circumstances
         under which such statements were made, not misleading with respect to
         the period covered by this quarterly report:

3.       Based on my knowledge, the financial statements, and other financial
         information included in this quarterly report, fairly present in all
         material respects the financial condition, results of operations and
         cash flows of the registrant as of, and for, the periods presented in
         this quarterly report;

4.       The registrant's other certifying officers and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
         have:

         a)       designed such disclosure controls and procedures to insure
                  that material information relating to the registrant,
                  including its consolidated subsidiaries, is made known to us
                  by others within these entities, particularly during the
                  period in which this quarterly report is being prepared;

         b)       evaluated the effectiveness of the registrant's disclosure
                  controls and procedures as of a date within 90 days prior to
                  the filing date of the quarterly report (the "Evaluation
                  Date"); and

         c)       presented in this quarterly report our conclusions about the
                  effectiveness of the disclosure controls and procedures based
                  on our evaluation as of the Evaluation Date;

5.       The registrant's other certifying officers and I have disclosed, based
         on our most recent evaluation, to the registrant's auditors and the
         audit committee of registrant's board of directors (or persons
         performing the equivalent functions):

         a)       all significant deficiencies in the design or operation of
                  internal controls which could adversely affect the
                  registrant's ability to record, process, summarize and report
                  financial data and have identified for the registrant's
                  auditors any material weaknesses in internal controls; and

         b)       any fraud, whether or not material, that involves management
                  or other employees who have a significant role in the
                  registrant's internal controls; and 6. The registrant's other
                  certifying officers and I have indicated in this quarterly
                  report whether or not there were significant changes in
                  internal controls or in other factors that could significantly
                  affect internal controls subsequent to the date of our most
                  recent evaluation, any corrective actions with regard to
                  significant deficiencies and material weaknesses.

Date: 9/15/03

/s/ John A. Dugan
-------------------------
John A.Dugan
Chairman and Chief Executive Officer
<PAGE>
                                                  INDEX TO EXHIBITS

                                                       DESCRIPTION

The following exhibit is incorporated by reference.

1.01     Financial Statements for the Three months ending July 31,2003 and July
         31,2002
<PAGE>
                            SFG FINANCIAL CORPORATION
                           COMPARATIVE BALANCE SHEETS


<TABLE>
<CAPTION>
                                                Quarter Ended   Quarter Ended
                                                   July 31         July 31
                                                    2003            2002
                                                 ----------      ----------
<S>                                              <C>             <C>
ASSETS;
Accounts
Receivable                                       $       20      $       20

Total Assets                                     $       20      $       20
                                                 ==========      ==========

LIABILITIES AND
SHAREHOLDERS' DEFICIENCY:

Liabilities:
Accounts Payable and Accrued
Expenses                                         $   67,645      $   75,748

Total Liabilities                                $   67,645      $   75,748
                                                 ----------      ----------

Shareholders' Deficiency:

Common Stock;$.001 Par Value
100,000,000 Shares Authorized;
4,393,856 and 4,268,856 Shares
Issued;4,293,856 and 4,268,856
outstanding at July 31
2002,respectively                                     4,294           4,269
Capital in Excess of Par                          2,423,321       2,402,408
Accumulated Deficit                              -2,479,489      -2,487,406
                                                 ----------      ----------

Total Shareholders' Deficiency                      -67,645         -75,748
                                                 ----------      ----------

TOTAL                                            $       20      $       20
                                                 ==========      ==========
</TABLE>


    The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
                            SFG FINANCIAL CORPORATION
                        COMPARATIVE STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                      Quarter Ended   Quarter Ended
                                         July 31        July 31
                                           2003           2002
                                       ----------      ----------
<S>                                    <C>             <C>
REVENUES                               $        0      $        0


Total Revenues                         $        0      $        0
                                       ----------      ----------


EXPENSES                               $        0      $        0

Total Expenses                         $        0      $        0
                                       ----------      ----------

Income (Loss) Before Income Taxes      $        0      $        0

NET INCOME (LOSS)                      $        0      $        0
                                       ==========      ==========

NET INCOME (LOSS) PER COMMON
SHARE                                  $       --      $       --
                                       ==========      ==========

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING               4,279,273       4,208,356
                                       ==========      ==========
</TABLE>

    The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
                            SFG FINANCIAL CORPORATION
                    NOTES TO COMPARATIVE FINANCIAL STATEMENTS
                              JULY 31, 2003 AND 2002

NOTE 1.  ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

         SUMMARY OF ACCOUNTING POLICIES

         This summary of accounting policies of SFG Financial Corporation (the
         Company) is presented to assist in understanding the Company's
         Financial statements. The financial statements and notes are
         Representations of the Company's management who is responsible for the
         integrity and objectivity of the financial statements. These accounting
         policies conform to generally accepted accounting principles and have
         been consistently applied in the preparation of the financial
         statements.

         BUSINESS OPERATIONS

         The Company is merely a shell with no real business activity. It has
         been kept active as a holding company whose purpose is to seek out and
         attract a business partner for possible merger.

         CASH

         The Company has no cash or cash equivalents as part of its Balance
         Sheet. All expenses have been accrued and are owed. The Company intends
         to pay these expenses upon completion of a successful business merger.

         NET INCOME (LOSS) PER COMMON SHARE

         Net Income (Loss) per Common Share is computed using the weighted
         Average number of common shares outstanding during each period.

         USE OF ESTIMATES

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that could effect certain reported amounts and
         disclosures. Accordingly, actual results could differ from those
         estimates.
<PAGE>
NOTE 2.  GOING CONCERN

         These financial statements are presented on the basis that the Company
         is a going concern. Going concern contemplates the realization of
         assets and the satisfaction of liabilities in the normal course of
         business over a reasonable length of time .As stated in Note #1, the
         Company has elected to implement a business plan that has allowed it to
         continue operations while identifying a merger partner. There can be no
         assurance that a merger will be completed.