UNITED STATES 
  SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C. 20549
  FORM 10-Q
  (Mark One)
  x  Quarterly Report Pursuant To Section 13
    Or 15(d) Of The Securities Exchange Act Of 1934
  For the quarterly period ended
      February 28th, 2009
  o    Transition Report Under Section 13 Or
    15(d) Of The Securities Exchange Act Of 1934
  For the transition period __________ to 
    ___________
  COMMISSION FILE NUMBER 000-51376


RANCHO SANTA MONICA DEVELOPMENTS INC.
(Exact name of small business issuer as specified in its charter)

|NEVADA                                                             | 83-0414306                       
|------------------------------------------------------------------ | ---------------------------------
|(State or other jurisdiction of incorporation or
    organization) | (IRS Employer Identification No.)
|                                                                   |                                  

802-610 Granville
StreetVancouver, BC, CanadaV6C-3T3


(Address of principal executive offices)

(604) 689-5661


Issuer's telephone number

Not Applicable


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

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

Yesx
No
o

Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act).

Yes o    Nox

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: As of April 14th
, 2009, the Issuer had 8,376,999 Shares of Common Stock outstanding.

Transitional Small Business Disclosure Format (check one):

Yes o    Nox

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PART I - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

Certain statements contained in this Form 10-Q constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities Exchange Act
of 1934 (the Exchange Act). These statements, identified by words such as
plan, "anticipate," "believe," "estimate," "should," "expect" and similar
expressions, include our expectations and objectives regarding our future
financial position, operating results and business strategy. These statements
reflect the current views of management with respect to future events and are
subject to risks, uncertainties and other factors that may cause our actual
results, performance or achievements, or industry results, to be materially
different from those described in the forward-looking statements. Such risks and
uncertainties include those set forth under the caption "Management's Discussion
and Analysis or Plan of Operation" and elsewhere in this Form 10-Q. We do not
intend to update the forward-looking information to reflect actual results or
changes in the factors affecting such forward-looking information. We advise you
to carefully review the reports and documents we file from time to time with the
Securities and Exchange Commission (SEC), particularly our quarterly reports
on Form 10-Q and our current reports on Form 8-K. As used in this interim
report, the terms "we", "us", "our", and our company mean Rancho Santa Monica
Developments, Inc., unless otherwise indicated. All dollar amounts in this
annual report are in U.S. dollars unless otherwise stated. All dollar amounts in
this Quarterly Report are in U.S. dollars unless otherwise stated.

1

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**RANCHO SANTA MONICA DEVELOPMENTS, INC.**
  FINANCIAL STATEMENTS
 February 28, 2009




2

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RANCHO SANTA MONICA DEVELOPMENTS, INC.Balance Sheets

|ASSETS                                                                                                                                    |  
|----------------------------------------------------------------------------------------------------------------------------------------- | -
|                                                                                                                                          |  
|                                                                                                                                          |  
|                                                                                                                                          |  
|CURRENT ASSETS                                                                                                                            |  
|Cash                                                                                                                                      | $
|Total Current Assets                                                                                                                      |  
|PROPERTY AND EQUIPMENT, NET                                                                                                               |  
|TOTAL ASSETS                                                                                                                              | $
|                                                                                                                                          |  
|LIABILITIES AND STOCKHOLDERS'
    EQUITY                                                                                                  |  
|CURRENT LIABILITIES                                                                                                                       |  
|Accounts payable and accrued liabilities                                                                                                  | $
|Due to related
    parties                                                                                                                |  
|Convertible debt, net                                                                                                                     |  
|Notes payable                                                                                                                             |  
|Total Current Liabilities                                                                                                                 |  
|COMMITMENTS AND CONTINGENCIES                                                                                                             |  
|STOCKHOLDERS' EQUITY                                                                                                                      |  
|Preferred stock; 100,000,000 shares authorized at $0.0001 par value, no
    shares issued or outstanding                                  |  
|Common stock; 100,000,000 shares authorized at $0.0001 par value, 8,366,999
    and 7,866,999 shares issued and outstanding, respectively |  
|Additional paid-in capital                                                                                                                |  
|Currency translation adjustment                                                                                                           |  
|Accumulated deficit                                                                                                                       |  
|Total Stockholders' Equity                                                                                                                |  
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                | $

The accompanying notes are an integral part of these financial
statements.

3

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RANCHO SANTA MONICA DEVELOPMENTS, INC.Statements of
Operations (Unaudited)

|                                                         |   | For the Three |   |  | For the Three |  
|-------------------------------------------------------- | - | ------------- | - |  | ------------- | -
|                                                         |   | Months Ended  |   |  | Months Ended  |  
|                                                         |   | February 28,  |   |  | February 29,  |  
|                                                         |   | 2009          |   |  | 2008          |  
|REVENUES                                                 | $ | 55,113        |   |  | 13,736        |  
|OPERATING EXPENSES                                       |   |               |   |  |               |  
|General and administrative                               |   | 331,046       |   |  | 16,442        |  
|Professional fees                                        |   | 1,000         |   |  | 4,924         |  
|Depreciation expense                                     |   | 1,923         |   |  | 2,130         |  
|Total Operating Expenses                                 |   | 333,969       |   |  | 23,496        |  
|LOSS FROM OPERATIONS                                     |   | (278,856      | ) |  | (9,760        | )
|OTHER INCOME (EXPENSE)                                   |   |               |   |  |               |  
|Interest expense                                         |   | 4,875         |   |  | 1,500         |  
|Total Other Income (Expense)                             |   | (4,875        | ) |  | (1,500        | )
|LOSS BEFORE INCOME
    TAXES                             |   | (283,731      | ) |  | (11,260       | )
|INCOME TAX EXPENSE                                       |   | -             |   |  | -             |  
|NET LOSS                                                 | $ | (283,731      | ) |  | (11,260       | )
|CURRENCY TRANSLATION ADJUSTMENT                          |   | (1,447        | ) |  | -             |  
|COMPREHENSIVE NET
    INCOME (LOSS)                      | $ | (285,178      | ) |  | (11,260       | )
|BASIC LOSS PER SHARE                                     | $ | (0.04         | ) |  | (0.00         | )
|WEIGHTED AVERAGE NUMBER
    OF COMMON SHARES OUTSTANDING |   | 8,116,999     |   |  | 7,866,999     |  

The accompanying notes are an integral part of these financial
statements

4

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RANCHOSANTAMONICADEVELOPMENTS,INC.Statements of Stockholders' Equity
(Unaudited)

|                                                                 |  |              |  |   |         |  |   | Additional  |  |   | Currency    |   |   |          |   |   |          |  
|---------------------------------------------------------------- |  | ------------ |  | - | ------- |  | - | ----------- |  | - | ----------- | - | - | -------- | - | - | -------- | -
|                                                                 |  | Common Stock |  |   | Paid-In |  |   | Translation |  |   | Accumulated |   |   |          |  
|                                                                 |  | Shares       |  |   | Amount  |  |   | Capital     |  |   | Adjustment  |   |   | Deficit  |   |   | Total    |  
|Balance, November 30, 2006                                       |  | 7,751,999    |  | $ | 7,752   |  | $ | 136,453     |  | $ | (1,400      | ) | $ | (113,186 | ) | $ | 29,619   |  
|Common stock cancelled                                           |  | -10,000      |  |   | -10     |  |   | 10          |  |   | -           |   |   | -        |   |   | -        |  
|Shares issued for cash at
    $1.00 per share                    |  | 75,000       |  |   | 75      |  |   | 74,925      |  |   | -           |   |   | -        |   |   | 75,000   |  
|Net income for the year ended November 30, 2007                  |  | -            |  |   | -       |  |   | -           |  |   | (3,435      | ) |   | 4,633    |   |   | 1,198    |  
|Balance, November 30, 2007                                       |  | 7,816,999    |  |   | 7,817   |  |   | 211,388     |  |   | (4,835      | ) |   | (108,553 | ) |   | 105,817  |  
|Fair value of imbedded conversion feature                        |  | -            |  |   | -       |  |   | 112,500     |  |   | -           |   |   | -        |   |   | 112,500  |  
|Shares issued for cash at $0.82
    per share                    |  | 50,000       |  |   | 50      |  |   | 40,950      |  |   | -           |   |   | -        |   |   | 41,000   |  
|Net loss for the year ended November 30, 2008                    |  | -            |  |   | -       |  |   | -           |  |   | 4,835       |   |   | (199,653 | ) |   | (194,818 | )
|Balance, November 30, 2008                                       |  | 7,866,999    |  |   | 7,867   |  |   | 364,838     |  |   | -           |   |   | (308,206 | ) |   | 64,499   |  
|Common stock issued in failed acquisition at
    $0.50 per share |  | 500,000      |  |   | 500     |  |   | 249,500     |  |   | -           |   |   | -        |   |   | 250,000  |  
|Net loss for the period ending
    February 28, 2009             |  | -            |  |   | -       |  |   | -           |  |   | (1,447      | ) |   | (283,731 | ) |   | (285,178 | )
|Balance, February 28, 2009                                       |  | 8,366,999 $  |  |   | 8,367   |  | $ | 614,338     |  | $ | (1,447      | ) | $ | (591,937 | ) | $ | 29,321   |  

The accompanying notes are an integral part of these financial
statements.

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RANCHO SANTA MONICA DEVELOPMENTS, INC.Statements of
Cash Flows (Unaudited)

|                                                                                |   | For the Three |   |   | For the Three |  
|------------------------------------------------------------------------------- | - | ------------- | - | - | ------------- | -
|                                                                                |   | Months Ended  |   |   | Months Ended  |  
|                                                                                |   | February 28,  |   |   | February 29,  |  
|                                                                                |   | 2009          |   |   | 2008          |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                            |   |               |   |   |               |  
|                                                                                |   |               |   |   |               |  
|Net income (loss)                                                               | $ | (283,731      | ) |   | (11,260       | )
|Adjustments to reconcile net loss to net cash used by
    operating activities: |   |               |   |   |               |  
|Depreciation and amortization                                                   |   | 1,923         |   |   | 2,130         |  
|Currency translation adjustment                                                 |   | (1,447        | ) |   | -             |  
|Amortization of imbedded conversion feature                                     |   | 3,375         |   |   | -             |  
|Common stock issued in failed acquisition                                       |   | 250,000       |   |   | -             |  
|Changes in operating assets and liabilities:                                    |   |               |   |   |               |  
|Change in due to related parties                                                |   | 31,440        |   |   | -             |  
|Changes in accounts payable and accrued expenses                                |   | 1,500         |   |   | 2,000         |  
|                                                                                |   |               |   |   |               |  
|Net Cash Used by Operating Activities                                           |   | 3,060         |   |   | (7,130        | )
|                                                                                |   |               |   |   |               |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                            |   | -             |   |   | -             |  
|                                                                                |   |               |   |   |               |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                            |   |               |   |   |               |  
|                                                                                |   |               |   |   |               |  
|Proceeds from notes payable                                                     |   | -             |   |   | -             |  
|Proceeds from common stock issued                                               |   | -             |   |   | 41,000        |  
|                                                                                |   |               |   |   |               |  
|Net Cash Provided by Financing Activities                                       |   | -             |   |   | 41,000        |  
|                                                                                |   |               |   |   |               |  
|NET INCREASE (DECREASE) IN CASH                                                 |   | 3,060         |   |   | 33,870        |  
|                                                                                |   |               |   |   |               |  
|CASH AT BEGINNING OF PERIOD                                                     |   | 4,217         |   |   | 493           |  
|                                                                                |   |               |   |   |               |  
|CASH AT END OF PERIOD                                                           | $ | 7,277         |   |   | 34,363        |  
|                                                                                |   |               |   |   |               |  
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                               |   |               |   |   |               |  
|                                                                                |   |               |   |   |               |  
|CASH PAID FOR:                                                                  |   |               |   |   |               |  
|                                                                                |   |               |   |   |               |  
|Interest                                                                        | $ | -             |   | $ | -             |  
|Income Taxes                                                                    | $ | -             |   | $ | -             |  

The accompanying notes are an integral part of these financial
statements.

6

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RANCHO SANTA MONICA DEVELOPMENTS, INC. Notes to the
Condensed Financial Statements February 28, 2009 and November 30, 2008

NOTE 1 - CONDENSED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the
Company without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations, and cash flows at February 28, 2009,
and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included
in financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been condensed or
omitted. It is suggested that these condensed financial statements be read in
conjunction with the financial statements and notes thereto included in the
Companys November 30, 2008 audited financial statements. The results of
operations for the periods ended February 28, 2009 and February 29, 2008 are not
necessarily indicative of the operating results for the full years.

NOTE 2 - GOING CONCERN

The Companys financial statements are prepared using generally
accepted accounting principles in the United States of America applicable to a
going concern which contemplates the realization of assets and liquidation of
liabilities in the normal course of business. The Company has not yet
established an ongoing source of revenues sufficient to cover its operating
costs and allow it to continue as a going concern. The ability of the Company to
continue as a going concern is dependent on the Company obtaining adequate
capital to fund operating losses until it becomes profitable. If the Company is
unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need,
among other things, additional capital resources. Managements plan is to obtain
such resources for the Company by obtaining capital from management and
significant shareholders sufficient to meet its minimal operating expenses and
seeking equity and/or debt financing. However management cannot provide any
assurances that the Company will be successful in accomplishing any of its
plans.

The ability of the Company to continue as a going concern is
dependent upon its ability to successfully accomplish the plans described in the
preceding paragraph and eventually secure other sources of financing and attain
profitable operations. The accompanying financial statements do not include any
adjustments that might be necessary if the Company is unable to continue as a
going concern.

NOTE 3  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 at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates.

Recent Accounting Pronouncements

In June 2008, the FASB issued FASB Staff Position EITF 03-6-1,
Determining Whether Instruments Granted in Share-Based Payment Transactions
Are Participating Securities, (FSP EITF 03-6-1). FSP EITF 03-6-1 addresses
whether instruments granted in share-based payment transactions are
participating securities prior to vesting, and therefore need to be included in
the computation of earnings per share under the two-class method as described in
FASB Statement of Financial Accounting Standards No. 128, Earnings per Share.
FSP EITF 03-6-1 is effective for financial statements issued for fiscal years
beginning on or after December 15, 2008 and earlier adoption is prohibited. We
are not required to adopt FSP EITF 03-6-1; neither do we believe that FSP EITF
03-6-1 would have material effect on our consolidated financial position
and results of operations if adopted.

7

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In May 2008, the Financial Accounting Standards Board (FASB) issued SFAS No.
163, Accounting for Financial Guarantee Insurance Contracts-and
interpretation of FASB Statement No. 60. SFAS No. 163 clarifies how
Statement 60 applies to financial guarantee insurance contracts, including the
recognition and measurement of premium revenue and claims liabilities. This
statement also requires expanded disclosures about financial guarantee insurance
contracts. SFAS No. 163 is effective for fiscal years beginning on or after
December 15, 2008, and interim periods within those years. SFAS No. 163 has no
effect on the Companys financial position, statements of operations, or cash
flows at this time.

In May 2008, the Financial Accounting Standards Board (FASB) issued SFAS No.
162, The Hierarchy of Generally Accepted Accounting Principles. SFAS
No. 162 sets forth the level of authority to a given accounting pronouncement or
document by category. Where there might be conflicting guidance between two
categories, the more authoritative category will prevail. SFAS No. 162 will
become effective 60 days after the SEC approves the PCAOBs amendments to AU
Section 411 of the AICPA Professional Standards. SFAS No. 162 has no effect on
the Companys financial position, statements of operations, or cash flows at
this time.

NOTE 3  SIGNIFICANT ACCOUNTING POLICIES

In December 2008, the Company issued 500,000 shares of its common stock in a
failed acquisition. The Company is seeking the return of the shares for
cancellation. The shares were valued at $0.50 per share.

8

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ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

Cautionary Statement Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events
or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative
of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our
industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited interim financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles. The following discussion should be read in conjunction with our unaudited
interim financial statements and the related notes that appear elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all references to "common shares" refer to common shares in the capital of our company and the terms "we", "us" and "our" mean Rancho Santa Monica Developments, Inc. and its wholly owned
subsidiaries.

Corporate Background

We are a development company focused on the development of real estate. We own a resort property in Tulum Mexico and have constructed certain facilities and provide management services for the apartment units constructed on the adjoining property.
The resort is an ocean front property hotel located on the Caribbean beaches of Tulum, Quintana Roo, Mexico and the resort is named Hotel ParaYso, Tulum, Mexico.

Recent Corporate Developments

We experienced the following significant developments since February 28th , 2009:

> We entered into an Agreement with AptHost Communications USA Inc. (AptHost) to acquire all their outstanding shares in exchange for 1,000,000 shares in the Company consisting of 500,000 tranches.

2.1 Hotel ParaYso Resort, Tulum, Quintana Roo, Mexico

We own property (the Solidaridad Property) in Tulum, Mexico as noted in Figure 1. The property consists of two developable pods where we can build an additional 15 hotel suites. The hotel has been open since February 7th,
2007. We also manage the adjoining 11 hotel suites and receive income from the supply of management services. The Company entered into an agreement dated for reference November 29, 2005 with Monica Galan-Rios for the purchase of certain lands
located in Solidaridad, Mexico consisting of approximately 1,220 square meters, See Figure 1 below. Under the terms of the property purchase agreement with Ms. Galan-Rios:

9

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|(1)                                                                 | In consideration of Ms. Galan-Rioss grant of all of her interests in the Solidaridad Property to us, we: (i) paid $30,000 to Ms. Galan-Rios, and (ii) issued an unsecured promissory note to Ms. Galan- Rios in the amount
of $50,000, plus accrued interest at a rate of 12% per year, maturing on November 29, 2006;
|------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                    |                                                                                                                                                                                                                                                                                                                        
|(2)                                                                 | We agreed to provide septic and water services to tenants at a rate of $50 per apartment unit per month;                                                                                                                                                                                                               
|                                                                    |                                                                                                                                                                                                                                                                                                                        
|(3)                                                                 | We agreed that commencing on the completion of construction of the units, for a 25 year period following November 29, 2004, we will provide security, maintenance and gardening services for the Solidaridad Property for a fee of
$250 per unit per month; and                                                        
|                                                                    |                                                                                                                                                                                                                                                                                                                        
|(4)                                                                 | We agreed to grant to Ms. Galan-Rios and any of the potential tenants, access to the road presently existing on the Solidaridad Property.                                                                                                                                                                              
|                                                                    |                                                                                                                                                                                                                                                                                                                        
|2.1.1 Location of Hotel ParaYso Resort, Tulum, Quintana Roo, Mexico

The property consists of the Western half of the fraction of Lot #10 located at Km 8, Carretara a Tulum-Boca Paila Ejido Jose Maria Pino Suarez Municipality of Solidaridad, Quintana Roo, Mexico in the city of Tulum, Mexico. See Figure 1 below.
Solidaridad is one of the eight municipalities that make up the Mexican state of Quintana Roo.  Quintana Roo is located on the eastern part of the Yucatán Peninsula. It borders the Mexican states of Yucatán and Campeche to the north
and west, the Caribbean Sea to the east, and the nation of Belize to the south.



10

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2.2 AptHost Communications USA, Inc. Web Hosting

The Company acquired all the outstanding shares of AptHost
Communications USA Inc. inexchange for 1,000,000 shares of the Company. AptHost
provides web hosting services to over 2,000 clients and specializes in video
hosting. Total annual revenues through to November 30th, 2008 were
$443,473.48 as provided by the former officers of AptHost. The Company is
currently in litigation as noted in Part II Item 1 with the former officers of
AptHost to obtain exclusive access to its servers and day-to-day operations.

2.3 PLAN OF OPERATION

Our plan of operation is to acquire, manage, and develop
income-producing real property in Mexico, Canada and the United States. Our
ParaYso Hotel in Tulum Mexico currently produces income and has been in
operations since February 7th, 2007.

MILESTONES AND OBJECTIVES

The table below highlights our milestones and objectives over
the next twelve months:

|MILESTONES AND OBJECTIVES                                                                           | ANTICIPATED COST | TIME FRAME
|--------------------------------------------------------------------------------------------------- | ---------------- | ----------
|PHASE I  FIND NEW REVENUE GENERATING STREAMS FROM                                                  | $5,000           | 1 Month   
|THE SOLIDARIDAD
      PROPERTY                                                                      |                  |           
|                                                                                                    |                  |           
|PHASE II  AQUIRING OTHER DEVELOPMENT OR INCOME                                                     | $50,000          | 3 Months  
|PRODUCING PROPERTIES IN CANADA OR UNITED STATES                                                     |                  |           
|                                                                                                    |                  |           
|- Visit areas in Canada and the United States reviewing
      real estate development opportunities |                  |           
|- Negotiate purchase of lands                                                                       |                  |           
|- Cash deposit
      required to secure potential land parcels                                      |                  |           
|                                                                                                    |                  |           
|PHASE III  AQUIRING OTHER DEVELOPMENT OR INCOME                                                    | $50,000          | 12 Months 
|PRODUCING PROPERTIES IN MEXICO                                                                      |                  |           
|                                                                                                    |                  |           
|- Visit other resort areas in Mexico to review real estate
      development opportunities          |                  |           
|- Negotiate purchase of lands                                                                       |                  |           
|- Cash deposit
      required to secure potential land parcels                                      |                  |           
|TOTAL                                                                                               | $105,000         | -         

11

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We anticipate spending approximately $105,000 in the next 12
months in pursuing our plan of operations Currently, we have cash of $7,277
which is insufficient to allow us to meet our current commitments and to
complete our plan of operation for the next twelve months. We are will need
substantial additional financing in order to implement our long term business
strategy and plan of operation. We anticipate that any additional financing will
likely be in the form of equity financing as substantial debt financing is not
expected to be available at this stage of our business.

Our actual expenditures and business plan may differ from the
one stated above. Our Board of Directors may decide not to pursue this plan. In
addition, we may modify the plan based on available financing.

In addition to the costs outlined above, we anticipate that we
will incur over the next twelve months the following expenses:

Planned Expenditures OverCategory
    The Next Twelve MonthsProfessional Fees
    $10,000General
      Administrative Expenses
    $25,000Consulting Fees
    $10,000Contractor Fees
    $10,200TOTAL
    $55,000


Our total expenditures over the next twelve months are
anticipated to be approximately $160,000.

LIQUIDITY AND CAPITAL RESOURCES

As of April 14th, 2009 we had cash on hand of
$2,456. Since our inception, we have used our common stock to raise money for
our operations and for our property acquisitions. We are currently under
operations for our Solidaridad Property.

We anticipate continuing to rely on equity sales of our common
stock in order to continue to fund our business operations. Issuances of
additional shares will result in dilution to our existing stockholders. There is
no assurance that we will achieve any of additional sales of our equity
securities or arrange for debt or other financing for to fund our planned
business activities.

OFF-BALANCE SHEET ARRANGEMENTS

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources.

CRITICAL ACCOUNTING POLICIES

The financial statements presented with this quarterly report
on Form 10-Q have been prepared in accordance with generally accepted accounting
principles in the United States of America for interim financial information.
These financial statements do not include all information and footnote
disclosures required for an annual set of financial statements prepared under
United States generally accepted
accounting principles.  In the opinion of our management, all adjustments (consisting solely of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations and cash flows as at February
28th, 2009 and for all periods presented in the attached financial statements, have been included. Interim results for the six month period ended February 28th, 2009 are not necessarily indicative of the results that may be
expected for the fiscal year as a whole.

12

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We have identified below certain accounting policies that are most important to the portrayal of our current financial condition and results of operation:

Development Stage Company

Rancho is a development stage company as defined in the Statements of Financial Accounting Standards No. 7. All losses accumulated since inception have been considered as part of the Ranchos development stage activities.

Property

Property consists of land and is recorded at cost. Land improvements are capitalized and maintenance, repairs and minor replacements are expensed as incurred.

Stock Based Compensation

Rancho accounts for employee stock based compensation using the intrinsic value method prescribed in Accounting Principles Board Opinion No. 25  Accounting for Stock Issued to Employees, and related interpretations. Accordingly,
compensation cost for stock options is measured as the excess, if any, of the market price of the Companys common stock at the date of the grant over the amount an employee must pay to acquire the common stock. Non-employee stock based
compensation is accounted for using the fair value method in accordance with SFAS No. 123  Accounting for Stock Based Compensation.

Impairment of Long-Lived Assets

Rancho periodically evaluates potential impairments of its long-lived assets, including intangibles.  When Rancho determines that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more indicators of
impairment, Rancho evaluates the projected undiscounted cash flows related to the assets. If these cash flows are less than the carrying value of the assets, Rancho measures the impairment using discounted cash flows or other methods of determining
fair value.

Long-lived assets to be disposed of are carried at the lower of cost or fair value less estimated costs of disposal.

|2.4.  | RISKS AND UNCERTAINTIES                  
|----- | -----------------------------------------
|      |                                          
|2.4.1 | Limited Operating History for the Company

The Company has its main asset is its property in Tulum, Mexico and serves as the main security and revenue generator for the Companys shareholders. The Company has been operating its hotel only since February 2007 and therefore the Company
has limited operating, investment or performance history.

2.4.2 Competition

There are a number of hotels with which the Company will be forced to compete with in the downtown Financial District in order to obtain sufficient occupancy and room rental rates. Competition from other real estate developers and real estate
services companies may adversely affect our ability to:

|1. | attract purchasers         
|-- | ---------------------------
|   |                            
|2. | sell undeveloped rural land

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The presence of competing real estate development companies in Mexico may impact on our ability to raise additional capital in order to fund our property acquisitions or property developments in Mexico if investors are of the view that investments
in competitors are more attractive. Competition could also reduce the availability of properties of merit or increase the cost of acquiring the properties.

2.4.3 Nature of Investments

Shareholders must rely on the ability, expertise, judgment and discretion of management of the Company. There is no assurance that the Property or investments in the Property made by the Company will perform in a manner which will be profitable to
the Company.

2.4.4 Ability for the Company to Raise Sufficient Capital for Development Financing

Shareholders are dependent upon the ability of the Management of the Company to raise sufficient capital or financing to complete the property acquisition and to later obtain the sufficient development financing and capital required to construct the
commercial development.

2.4.5 Factors Affecting Property

The Company's success depends upon the success of the development approval process, the ability of the Company to service the land loan, the development financing, and any other costs that come up as they relate to the development process. Property,
Economic, governmental, industry and internal factors that detrimentally affect the financial health of the Property will cause a resulting loss of value in the Company's investments.

2.4.6 Possible Loss of Limited Liability

The Company may be carrying on business in jurisdictions other than that under which it was formed. The Company will be registered as an extra-jurisdictional Company in those jurisdictions where the Company is advised that it will be carrying on
business by virtue of this Offering or otherwise and where there is provision for registration as an extra jurisdictional Company. However, there is a risk that Unit Holders may not be afforded limited liability in jurisdictions where the Company is
not registered to the extent that principles of conflicts of law recognizing the limitation of liability of Unit Holders have not been authoritatively established with respect to Companys formed under laws of one jurisdiction but carrying on
business in other jurisdictions.

2.4.7 Reliance on Company

Shareholders will be required to rely on the ability of the Company to actively manage the assets of the Company. The Company will make the actual decisions on the development of the Property upon which the success of the Company will depend. No
assurance can be given that the business approaches utilized by the Manager will prove successful. There can be no assurance that satisfactory replacements for Company will be available, if needed. The Company will depend, to a great extent, on the
services of a very limited number of individuals of the Company in the administration of the Company's business. The loss of such services for any reason could impair the ability of the Manager Company to perform its advisory activities on behalf of
the Company.

2.4.8 Reliance on Executive

The Company will depend extensively on its executive management raise sufficient capital.

2.4.9 Limited Ability to Liquidate Shares

The current market for liquidating the shares and selling the shares is on the Over the Counter Bulletin Board in the United States. Shareholders are also under certain resale restrictions as per rule 144 of the United States Securities Act of 1933.
The current market for the shares is illiquid and could be difficult to achieve the current market value for the shares. This Offering of Units is not qualified by way of prospectus, and consequently the resale of Units could be subject to
restrictions under applicable securities legislation.

2.4.10 Tax Liability

Each Unit Holder is required to include in computing income, a pro ratashare of the income of the Company allocated to him. Income will be allocated to Unit Holders according to the terms of the Company Agreement and without regard to the
acquisition price of such Units. Unit Holders may have an income tax liability in
respect of profits not distributed and also in respect of returns of capital on the Units exceeding the adjusted cost base of their Units.

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2.4.11 Potential Indemnification Obligations

Under certain circumstances, the Company might be subject to significant indemnification obligations in respect of the Company or certain parties related to them. The Company will not carry any Insurance to cover such potential obligations and none
of the foregoing parties will be insured for losses for which the Company has agreed to indemnify them. Any indemnification paid by the Company would reduce the Company's net asset value and, by extension, the value of the shares.

2.4.12 Real Property Development and Ownership

Real estate developments and investments are generally subject to varying degrees of risk depending on the nature of the property. Such risks include changes in general economic conditions , government regulation (such as taxation of property and
environmental legislation) and the attractiveness of hotel suites to potential purchasers. In addition, each segment in the real estate development industry is capital intensive and is typically sensitive to interest rates. The income generated by
the Property in which the Company has an interest is dependent upon general economic conditions and, accordingly, the return to investors may be affected by changes in those conditions. Certain significant expenditures, including property taxes,
maintenance costs, mortgage payments, insurance costs and related charges must be made regardless of whether or not a property is producing sufficient income to service such expenses. In addition, the Property of the Company may be subject to
mortgages to complete the purchase of a particular Property which require debt service payments. If the Company is unable or unwilling to meet mortgage payments on any property, losses could be sustained as a result of the exercise by the mortgagee
of its rights of foreclosure or sale.

2.4.13 Ability to Obtain, Pre-Development Approvals to Allow Future Development on the Property

The Company will be subject to risks associated with the development of the Property such as municipal and government approvals along with potential environmental problems. As a result the ability to develop the Property may be affected from time to
time in varying degrees by obtaining or not obtaining the appropriate municipal or government approvals or, alternatively, such approval may be subject to such terms and conditions that may delay or change the Property and thereby altering the
profitability of such Property. While management has obtained the necessary predevelopment approvals its past projects, this is NOT a guarantee of future performance.

2.4.14 Construction Costs and Uncertainty of Density

The real estate industry is significantly impacted by fluctuations in the cost of construction and servicing of land. Any material increase in construction and/or servicing costs may have a materially adverse effect on the Company in the timing of
selling the Property or having the Company purchase a portion or all of the Property.

2.4.15 Liquidity of Real Estate

Real estate is relatively illiquid. Such illiquidity may limit the ability of the Company to diversify its portfolio promptly in response to changing economic or investment conditions. In recessionary times, it may be virtually impossible to dispose
of certain types of real estate, particularly commercial real estate. The costs of holding real estate are considerable, and the Company, as a holder of real estate, during a Recessionary period may be faced with ongoing expenditures with little
prospect of incoming receipts. Without adequate cash reserves, it may be necessary for the Company to dispose of Property at low prices. Financial difficulties of other property owners may lead to distress sales which could further depress real
estate values in markets in which the Company operates.

2.4.16 Regulatory Approvals

From time to time the development of Property by the Company will or may require zoning, environmental and other approvals from local government agencies. The process of obtaining such approvals may take many months and there can be no assurance
that the necessary approvals for the Property will be obtained. Holding costs accrue while regulatory approvals are being sought and delays can render Property uneconomic at any given period. The Manager, while having a track record in other
projects of obtaining development approvals on other lands, cannot guarantee that the Property within
this Offering will receive the same level of development approvals in a timely fashion.

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2.4.17 Environmental Matters

Under various environmental laws, ordinances and regulations, the current or previous owner or operator of real property may be liable for the costs of removal or rededication of hazardous or toxic substances on, under or in such property. Such laws
could impose liability whether or not the Company knew of, or was responsible for, the presence of such hazardous or toxic substances. The presence of hazardous or toxic substances, or the failure to remove or rededicate such substances, if any,
could adversely affect the Company's ability to sell such real estate or to borrow using such real estate as collateral and could potentially also result in claims against the Company

2.4.18 General Real Estate Risks

Various factors can affect the timing and profitability of real estate development. There is no assurance that such plans will be met on a timely basis or at all. There is also no assurance that the Property can be rented to a sufficient occupancy
level to make the development economically viable. The Company will be subject to risks inherent in the ownership of land intended for the future development of commercial real estate including: (i) unforeseen delays with the municipal approval
process; (ii) cost overruns; (iii) the inability to secure the appropriate permits and other necessary approvals in a timely and cost-effective manner; (iv) the inability to rent sufficient rooms to an occupancy level that is viable; and (v) the
inability to obtain suitable property for development.

2.4.19 Property Ownership Risk of Tulum Hotel ParaYso Property

Under the terms of the property purchase agreement for our Solidaridad Property, Ms. Galan-Rios assigned to us her interest in an occupation order issued by the Ejidal Commissariat of the Ejido NCPE Jose Maria Pino Suarez for the use and possession
of the Solidaridad Property. Under Mexican law we own the right to possess and make use of our Solidaridad Property but do not own title to the property until a legal survey is completed by the Mexican government. Because we do not own legal title
to our Solidaridad Property we are subject to the risk that: (i) conditions may be imposed on our occupation order for the property and/or the order may be cancelled; (ii) the Mexican government may delay the implementation of a legal survey or
decide not to undertake a survey of the property; and (iii) if a legal survey is completed there is no assurance that we will not be required to pay additional fees for the transfer of legal title to the property or that the property boundaries will
be identical to those granted in the occupation order issued by the Ejidal Commissariat. The occurrence of any of the above risks would have a material adverse effect our business, results of operations or financial condition.

2.4.20 Environmental And Other Regulations

Our present operations and development activities in Mexico are subject to Mexican state and local laws and regulations, respectively, relating to the protection of the environment, including those concerning water supply, wastewater, noise, soil
pollution and generation and handling of hazardous waste and materials and environmental impact.

We believe that we are in compliance in all material respects with all Mexican state and local laws and regulations relating to water, atmospheric pollution, hazardous wastes or substances. We have not been notified by any environmental authority or
any third party, of any material noncompliance, liability or claim related to those environmental matters in connection with any of our present properties. The possibility exists that in the future that our facilities and operations will encounter:
(i) newer and stricter state or local environmental laws and regulations, (ii) more rigorous interpretations of existing environmental laws and regulations, and/or (iii) stricter enforcement of federal, state and local environmental law regulations.

The Solidaridad Property is subject to federal, state and local regulations and restrictions that may impose significant limitations on our ability to develop them. In addition, our ownership and operation of real property is subject to extensive
and evolving federal, state and local environmental laws and other
regulations. The provisions and enforcement of these environmental laws and regulations may become more stringent in the future. Violations of these laws and regulations can result in:

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|   |                             
|-- | ----------------------------
|1. | civil penalties;            
|   |                             
|2. | remediation expenses;       
|   |                             
|3. | natural resource damages;   
|   |                             
|4. | personal injury damages;    
|   |                             
|5. | potential injunctions;      
|   |                             
|6. | cease and desist orders; and
|   |                             
|7. | criminal penalties.         

In addition, some of these environmental laws impose strict liability, which means that we may be held liable for any environmental damages on our property regardless of our fault. The presence of hazardous substances on a property may also
adversely affect our ability to sell or develop the property or to borrow using the property as collateral.

Changes in laws or the interpretation thereof, new enforcement of laws, the identification of new facts or the failure of other parties to perform remediation could all lead to new or greater liabilities that could materially adversely affect our
business, results of operations or financial condition.

2.4.21 The Occurrence In Mexico Of Natural Disasters

Our property is located in Mexico. The occurrence of natural disasters, such as fires, hurricanes, floods, unusually heavy or prolonged rain and droughts in Mexico could have a material adverse effect on our ability to develop properties or realize
income from our property.

2.4.22 We Do Not Carry Comprehensive Liability Insurance for the Mexico Property.

We do not currently carry comprehensive liability, fire, hurricane, storm, earthquake and business interruption insurance with respect to our business operations in Mexico. Should an uninsured loss occur, we could lose our capital invested in the
Solidaridad Property, as well as the anticipated future revenues from such property and would continue to be obligated on any indebtedness or other obligations related to the property. Any such loss could have a material adverse effect on
Rancho.

2.4.23 Future Equity Financings May Dilute Existing Stockholders Ownership Interests.

We rely upon the availability of equity capital to fund our growth, which financing may or may not be available on favorable terms or at all. Equity capital could include our common stock or preferred stock. We cannot guarantee that additional
financing, refinancing or other capital will be available in the amounts we desire or on favorable terms.

There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our planned business activities.

ITEM 3.

CONTROLS AND PROCEDURES.

Evaluation Of Disclosure Controls And Procedures

As of the end of the period covered by this Quarterly Report, our management carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Exchange Act). Based on this evaluation, our principal
executive officer and principal financial officer has concluded that our
disclosure controls and procedures are, as of the date covered by this Quarterly
Report, effective to ensure that the information required to be disclosed by us
in the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the SEC
rules and forms.

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PART II - OTHER INFORMATION

ITEM 1.

LEGAL
PROCEEDINGS.

We commenced an action on February 3rd, 2009 against
the principals of AptHost and its affiliated companies for breach of contract,
intential interference with business, fraudulent conveyance, and both
preliminary and permanent injunctive relief.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND
      USE OF PROCEEDS.

None.

ITEM 3.

DEFAULTS UPON
SENIOR SECURITIES.

None.

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY
      HOLDERS.

None.

ITEM 5.

OTHER
INFORMATION.

None.

ITEM 6.

EXHIBITS AND REPORTS ON FORM 8-K.



|Exhibit
    Number |  | Description of Exhibits                                                                                                                                                                   
|------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1                |  | Articles of Incorporation.(1)                                                                                                                                                             
|                   |  |                                                                                                                                                                                           
|3.2                |  | Bylaws, as amended.(1)                                                                                                                                                                    
|                   |  |                                                                                                                                                                                           
|4.1                |  | Form of Share Certificate.(1)                                                                                                                                                             
|                   |  |                                                                                                                                                                                           
|10.1               |  | 2004 Stock Option Plan.(1)                                                                                                                                                                
|                   |  |                                                                                                                                                                                           
|10.2               |  | Management Consulting Agreement dated October 1, 2004
      between Rancho Santa Monica Developments Inc. and Graham G.
      Alexander.(1)                                               
|                   |  |                                                                                                                                                                                           
|10.3               |  | Management Consulting Agreement dated October 1, 2004
      between Rancho Santa Monica Developments Inc. and Angela
      Manetta.(1)                                                    
|                   |  |                                                                                                                                                                                           
|10.4               |  | Extension Agreement dated December 31, 2004 between
      Rancho Santa Monica Developments Inc. and Graham G.
      Alexander.(1)                                                         
|                   |  |                                                                                                                                                                                           
|10.5               |  | Extension Agreement dated December 31, 2004 between
      Rancho Santa Monica Developments Inc. and Angela
    Manetta.(1)                                                                
|                   |  |                                                                                                                                                                                           
|10.6               |  | Purchase Agreement dated for reference November 29, 2004
      between Monica Galan-Rios and Rancho Santa Monica Developments
      Inc.(1)                                               
|                   |  |                                                                                                                                                                                           
|10.7               |  | Promissory Note dated November 29, 2004 Monica Galan-Rios
      and Rancho Santa Monica Developments Inc.(1)                                                                              
|                   |  |                                                                                                                                                                                           
|31.1               |  | Certification of Chief Executive Officer and Chief
      Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
      2002.                                               
|                   |  |                                                                                                                                                                                           
|32.1               |  | Certification of Chief Executive Officer and Chief
      Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
      to Section 906 of the Sarbanes-Oxley Act of 2002.

|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | Filed with the SEC as an exhibit to our Registration
      Statement on Form SB-2 originally filed on January 29, 2005, as
      amended.

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REPORTS ON FORM 8-K

We filed the following Current Reports on Form 8-K during the
fiscal quarter ended February 28th, 2009:

|Date of Form 8-K | Date of Filing with the SEC | Description of the Form 8-K                                 
|---------------- | --------------------------- | ------------------------------------------------------------
|December 1, 2008 | December 4, 2008            | Acquisition Agreement of AptHost
    Communications USA Inc.

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.

|      |                   |     | RANCHO SANTA MONICA DEVELOPMENTS INC.                 
|----- | ----------------- | --- | ------------------------------------------------------
|      |                   |     |                                                       
|      |                   |     |                                                       
|      |                   |     |                                                       
|Date: | April 14th , 2009 | By: | /s/
      Graham G. Alexander                         
|      |                   |     | GRAHAM G. ALEXANDER                                   
|      |                   |     | Chief Executive Officer, Chief Financial
      Officer
|      |                   |     | President, Secretary and Treasurer                    
|      |                   |     | (Principal Executive Officer                          
|      |                   |     | and Principal Accounting Officer)                     

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