SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-KSB



[x]

Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended March 31, 2005



[ ]

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



For the transition period from  to _______________



Commission File Number 0-30595



PACIFIC LAND AND COFFEE CORPORATION

(Exact name of small business issuer in its charter)



DELAWARE



33-0619256





(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)



1650 Ala Moana, Suite 507

Honolulu, Hawaii

96815

(Address of principal executive offices)

(Zip Code)



Registrant's telephone number, including area code:          (808) 371-4266



Securities registered pursuant to Section 12(b) of the Act:  None



Securities registered pursuant to Section 12(g) of the Act:  Common Stock, par value $.001



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Secur­ities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

YES X      NO



Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is not contained in this form, and no disclosure will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in part III of this Form 10-KSB or any amendment to this Form 10-KSB. [ X ]



State issuer's revenues for its most recent fiscal year: $18,621



The aggregate market value of the voting stock held by non-affiliates of the registrant as of June 17, 2005 was $570,000 based on a closing sale price of $.19 on that date.



The number of shares outstanding of the issuer's classes of Common Stock as of March 31, 2005:



Common Stock, $.001 Par Value - 10,000,000 shares

Transitional Small Business Format     Yes [      ]   No [  X  ]



DOCUMENTS INCORPORATED BY REFERENCE:  NONE





PART I



Item 1.

DESCRIPTION OF BUSINESS



Background



On May 20, 2003, Pacific Land and Coffee Corporation, formerly known as Back Channel Investments, Inc., a publicly reporting Delaware corporation formed in April 1994 solely to seek for and make an acquisition, entered into an acquisition agreement whereby it acquired all of the common stock of Pacific Land and Coffee Corporation, a Hawaii corporation formed on February 14, 2003.  There were two officers, directors and shareholders of the Hawaii corporation.  The acquisition was effected as a tax free share exchange, with the two shareholders of Pacific Land and Coffee Corporation (Hawaii) receiving 7,000,000 new shares of common stock and the existing shareholders of the Delaware parent retaining all of their 3,000,000 shares (after giving effect to a 3-for-1 forward stock split) of common stock, which were originally issued in April 1994 for total consideration of $1,015 ($.0003 per share).  The stockholders of Pacific Land and Coffee Corporation (Hawaii) believed that the acquisition would enable their company to benefit from being part of a reporting company, that the combined entity would likely be able to become publicly trading, and that it would be better able to attract debt or equity financing for its business. No promoter or any other person was paid or compensated in connection with the acquisition.  Jehu Hand, the founder and former President of Back Channel is currently Pacific Lands counsel and a principal stockholder.  There was no particular value assigned to the shares of either company since neither had any appreciable assets or history of operations.  The Hawaii corporation is a wholly-owned subsidiary and all operations are conducted by the Hawaii subsidiary.  The Delaware corporation subsequently changed its name from Back Channel Investments, Inc. to Pacific Land and Coffee Corporation.  Unless we state otherwise, all references to Pacific Land and Coffee refer to the combined entity.



The executive offices of the Company are located at 1650 Ala Moana, Suite 507, Honolulu, Hawaii 96815.  Its telephone number is (808) 371-4266.



Risk Factors



The securities of Pacific Land and Coffee are highly speculative and very risky.  Before you buy consider the following risk factors and the rest of this report.



We are still in the development stage and may never be successful.



Pacific Land and Coffee's activities have been limited.  We have only a few customers to date, to whom the first orders were shipped in the quarter ended September, 2003.  Our cumulative losses since inception to March 31, 2005 are $9,066.  There can be no assurance that Pacific Land and Coffee will be able to market its coffee and coffee related products, achieve a significant level of sales or attain profitability, although Pacific Land and Coffee can continue to exist indefinitely at its current level of sales.  If we do not increase our level of sales or common stock will not attain any value in any market that might develop, and investors will not be able to realize any value from their ownership of shares.



We need funding to implement our business plan.



Pacific Land and Coffee is in need of approximately $300,000 in funding to carry out its business plan for the next 12 months for marketing costs and general and administrative expenses.  We have not identified any source for this required funding.  If we do not receive funding we will not be able to market effectively to obtain new customers.  If we do not obtain new customers, our sales will not increase.  If our sales do not increase, our common stock will not attain any value in any market that might develop, and investors will not be able to realize any value from their ownership of shares.



The first $100,000 in  funding will be used primarily for salaries.



.If we receive less than all of the $300,000 in funding we require, most of the first $100,000 we receive will be used for salaries of sales associates or sales representatives, but not for management.  The remainder of the first $100,000 will be used for other marketing expenses.  As a result, we will be expending these amounts and not purchasing inventory which can be resold



Pacific Land and Coffee has no long term or firm contracts with customers.



We have only one customer, to whom we ship as purchase orders are received.  This customer is under no contractual obligation to purchase our products.  We do not have a firm contract with this or any other customer. Because of our lack of history of operations and limited sales, lack of sales in a short period of time would cause us to suspend operations.



If our one customer decided to no longer purchase from us, or significantly reduced the quantity or frequency of orders, we would have no sales.  In that event, if we are unable to obtain one or more new customers, we will not have any sales.  If we do not have any sales we cannot continue operations.



We dont have a website and do not plan to significantly utilize the internet for marketing.



We plan to establish a website in the future for informational purposes.  We do not plan to market to retail customers, and it is managements belief that wholesale purchasers of specialty coffee green beans and coffee products do not at this time rely on the internet to locate supply.  Therefore, in the event managements assessment of the role of internet marketing of wholesale specialty coffee green beans and coffee products is incorrect, or in the future wholesale purchasers begin to utilize the internet to locate supply, we will lose potential sales.



We presently lack full time management, which might result in a conflict of interest.



Until such time as we obtain $300,000 in funding, management is not devoting full time to Pacific Land and Coffees business.  As a result, management is conducting only limited marketing of our products, and we only have one customer.  For so long as management is not full time, we cannot anticipate any significant increases in sales.  In addition, because management is not receiving any salary, they are devoting most of their time to other business activities.  Consequently, management may have a conflict of interest between their duties to Pacific Land and Coffee and their other business activities.



Fluctuating Coffee Prices Can Cause Losses



The supply and price of coffee beans are subject to volatility and are influenced by numerous factors which are beyond our control.  We intend to use short-term coffee futures and options contracts primarily for the purpose of partially hedging and minimizing the effects of changing green coffee prices once we have sufficient sales to justify the transaction costs of futures trading.  In the meantime we will be exposed to potential losses in the event of unforeseen price increases in green coffee prices.  The use of these derivative financial instruments can enable us to attempt to mitigate the effect of changing prices although it generally remains exposed to loss when prices decline significantly in a short period of time and remain at higher levels, preventing us from obtaining inventory at favorable prices.  We expect to be able to pass green coffee price increases through to customers, thereby maintaining our gross profits. However, we cannot predict whether we will be able to pass inventory price increases through to our customers.



Our Intended Operations



Pacific Land and Coffee Corporation's products can be divided into these categories:



o     Branded Coffee;



o     Private Label Coffee;



o     Wholesale Green Coffee;



o     Coffee dyed wearing apparel; Compact commercial espresso machines.  Hot and cold coffee beverages, dried vanilla beans for coffee flavoring extracts, and other coffee products.



We intend to conduct wholesale coffee operations in accordance with strict freshness and quality standards. Our primary business focus will be roasting, blending, packaging and distributing coffee for sale under private labels for companies throughout the world.  We also intend to sell unprocessed green coffee to specialty gourmet roasters, and to distribute the espresso machines and other coffee related products to cafes and specialty retail stores.



We have no website at present but we intend to develop one in the near future.  We have not contracted with any party to develop a website, but have discussed web design with several independent consultants. We plan to select a designer for the website as merited by business needs. .  We do not believe that, in general, our potential customers currently use the internet to locate green bean coffee brokers  locate nor to source specialty coffee blends, and we believe the lack of a website will have only minimal, if any, impact on our business for the near future.  Although it is possible that lack of a website will cause us to miss obtaining a potential customer, developing and maintaining a website is not yet a worthwhile use of management resources.



Industry Overview



Almost 52% of adult-aged Americans drink some type of coffee and on average they drink 3.2 cups per day, according to the National Coffee Association's 2002 study. The United States coffee market consists of three distinct product categories:



o     commercial ground roast, mass-merchandised coffee; and



o     specialty coffees, which include gourmet coffees (premium grade arabica coffees sold in whole bean and ground form) and premium coffees (upscale coffees mass-marketed by the leading coffee companies).



o     instant or freeze dried coffee.



Specialty coffee, or what is sometimes called gourmet coffee, is coffee roasted using mainly high quality Arabica beans. The Arabica bean is widely considered in the industry to be superior to its counterpart, the Robusta bean, which is used mainly in non-specialty coffee. High quality Arabica beans usually grow at high elevations, absorb little moisture and mature slowly. These factors result in beans with a mild aroma and a bright, pleasing flavor that is suitable for specialty coffee.



Based on estimates supplied by the Specialty Coffee Association of America, sales of brewed, whole bean and ground specialty coffee totaled approximately $10.9 billion in 2002 as compared to $7.5 billion in 1999. Aiding this growth has been the increase in the number of specialty coffee retail outlets, which grew from 1,650 units in 1991 to over 15,500 in 2003, as reported by the Specialty Coffee Association of America.



We believe that several factors have contributed to the increase in demand for gourmet and specialty coffee including:



o     greater consumer awareness of gourmet and specialty coffee as a result of its

increasing availability;



o     increased quality differentiation over commercial grade coffees by

consumers;



o     increasing demand for all premium food products, including gourmet and

specialty coffee, where the differential in price from the commercial brands

is small compared to the perceived improvement in product quality

and taste;



o     the overall low price of Arabica coffee beans, which has allowed

consumers to afford higher end specialty 100% Arabica coffees; and



o     ease of preparation of gourmet and specialty coffees resulting from the increased

use of automatic drip coffee makers and home espresso machines.



Although the overall coffee industry is mature, the specialty green coffee market represents the fastest growing segment of the coffee industry, as the number of gourmet coffee houses have been increasing in all areas of the United States. According to the Specialty Coffee Association of America, the number of gourmet coffee houses has grown from 1,650 in 1991 to approximately 13,500 in 2001 and is projected to increase to 18,000 by 2015.



Products



Our products can be divided into four categories:



o     Branded Coffee;





o     Private Label Coffee;



o     Wholesale Green Coffee; and



o     Coffee machines, coffee apparel and other related beverages and products.



Branded Coffee. We will roast, grind and blend coffee according to our own recipes and package the coffee at a roaster sub-leased from an affiliated party, Coscina Brothers in Honolulu, Hawaii.  The sublease ends December 31, 2007 and provides for a payment of $.75 per pound, minimum $750 per month.  We subleased the roaster on October 1, 2003.  We have not yet developed our own recipes.  We then will sell the packaged coffee under our proprietary brand labels to supermarkets, wholesalers and individually owned stores throughout the United States, shipping directly from our factory or bonded warehouses.



Each of our name brands will be directed at a particular segment of the consumer coffee market. Our initial branded coffees will be Kona Wave Hawaii Coffee and Coffee Works.



Private label coffee. From our leased roaster in Honolulu, Hawaii, we intend to roast, blend, package and distribute coffee under private labels for companies worldwide.  Our private label coffee will be distributed in foil bags and brick packs in a variety of sizes.  We intend to produce private label coffee for customers primarily hotels, restaurants, and retail stores who desire to sell coffee under their own name but do not want to engage in the manufacturing process. Sellers of private label coffee seek to achieve a similar quality at a lower cost to the national brands representing a better value for the consumer.  We have received an order to produce private label roasted coffee to a Japanese customer, Jungle Coffee.  We estimate the order value to be about $7,000 per month.  The first orders were shipped in the quarter ended September 30, 2003 totaling about $12,000. We shipped $19,000 in orders in the quarter ended December 31, 2003 and $36,000 in the year ended March 31, 2004.   For larger orders that require additional production capacity, we intend to arrange for subcontractors in strategic locations (but have not yet made any agreements) to produce product according to our specifications.



Wholesale Green Coffee. The number of specialty coffee outlets, such as Starbucks, Deidrichs and Seattles Best have been increasing in the United States. Although we do not plan to sell to these large chains, the growth in specialty coffee sales has created a marketplace for higher quality and differentiated products which can be priced at a premium.  As a roaster/dealer of green coffee located in Hawaii, we believe we will be favorably positioned for our specialty coffee sales of Hawaiian green coffee.



Green gourmet coffee beans are sold as markets for Hawaiian green coffee are growing rapidly, direct from warehouses to the small roasters and gourmet coffee shop operators which then roast the beans themselves.



Raw Materials



Coffee is a commodity traded on the Commodities and Futures Exchange. Coffee prices are subject to fluctuation. Over the past five years, the average price per pound of coffee beans ranged from approximately $.42 to $3.18. The price for coffee beans on the New York Exchange as of March 20, 2003 was $.63 per pound.



We intend to purchase our green coffee primarily from Hawaiian growers, but we may also purchase from dealers located within and without the United States for coffees from around the world.



The supply and price of coffee beans are subject to volatility and are influenced by numerous factors which are beyond our control. Supply and price can be affected by many factors such as weather, politics and economics in the coffee exporting countries. Increases in the cost of coffee beans can, to a certain extent, be passed on to our customers in the form of higher prices for coffee beans and processed coffee. However, there can be no assurance that we will be successful in passing coffee price increases to customers without losses in sales volume or margin. Drastic or prolonged increases in coffee prices could also adversely impact our business as it could lead to a decline in overall

consumption of coffee.



Similarly, rapid decreases in the cost of coffee beans could force us to lower our sales prices before realizing cost reductions in our purchases. In addition, a worldwide supply shortage of gourmet coffee beans could have an adverse impact

on us.



Gourmet green coffee, unlike most coffee, does not trade directly to commodities markets. Instead, it tends to trade on a negotiated basis at a substantial premium over commodity coffee pricing, depending on the origin, supply and demand at the time of purchase.



From time to time, we might engage in the purchase and sale of coffee futures and option contracts to guard against the effects of fluctuations in the price of green coffee beans and to supplement our supply of coffee, if necessary.  Management has no experience in the coffee futures business.  We intend to use the services of  John King, of Harold King Company, a licensed commodities broker specializing in coffee futures, but we have not entered into a contract with that firm to act for us.



Trademarks



We hold a license to the common law trademark Coscina Brothers Coffee.  We believe that this brand is recognizable in the marketplace and that brand recognition will be important to the success of our branded coffee business.



Marketing



We intend to market our private label and wholesale coffee through trade shows, industry publications, face to face contact and through the use of non-exclusive independent food and beverage sales brokers.



For our private label and brand coffees, we will, from time to time in conjunction with retailers and with wholesalers, conduct in-store promotions, such as product demonstrations, coupons, price reductions and two-for-one.



We believe that our unique and specialized product mix will enable us to profitably grow and endure potential commodity price volatility inherent in the coffee futures market. We seek to achieve conservative growth by enhancing and developing long-term relationships with our customers by expanding our product lines to satisfy changing consumer tastes and preferences. We hope to capitalize on our commitment to quality and service and our personal contact with our customers. We do not intend to compete on price alone nor do we intend to grow sales at the expense of profitability. We will continue to evaluate opportunities for growth consistent with our business strategy.



Because we have only recently commenced operations and have limited sources of operating capital, we believe that unless we obtain substantial funding as set forth under Plan of Operations it will take a significant amount of time, at least several years, before we can meet our growth goals.



In the event we lose our current customer and do not obtain any other customer, we will cease business operations. We have not formulated any contingency plans to take effect in the event our business operations cease.



Competition



The coffee market is highly competitive.  We will compete with other suppliers and distributors of green coffee beans and roasted coffees.  Our products will compete directly against specialty coffees sold at retail through supermarkets and a growing number of specialty coffee stores.  We believe, however, that we compete primarily across product lines and that competition in regions in which we do not currently have significant market presence does not differ significantly from competition in those markets in which we currently do business.



Brand Competition. Our proprietary brand coffees will compete with many other branded coffees which are sold in supermarkets and specialty stores, primarily in the United States.  The branded coffee is dominated by three large companies: Kraft General Foods, Inc., Proctor & Gamble Co. and Sara Lee, who also market gourmet coffee in addition to non-gourmet coffee. Our large competitors have greater access to capital than us and have a greater ability to conduct marketing and promotions.



Private Label Competition.  There are approximately four major producers of coffee for private label sale in the United States.  Many other companies produce coffee for sale on a regional basis.  The principal competitors are E. Govina & Sons, Kroger and the coffee division of Sara Lee. Both Kroger and Sara Lee are larger and have more financing and resources than we do and therefore are able to devote more resources to product development and marketing. However, because Kroger owns the stores in which it sells coffee and therefore competes directly with potential purchasers of its private label coffee, many customers will not purchase private label coffee from Kroger.  Competition for the specialty types of coffees we will sell is at the same cost level as our larger competitors.  Our ability to provide the special handling and meet the order size of customers that buy this product can be better served, in our opinion, by a company which in our opinion is more highly focused.



We believe that we can compete by providing a high level of quality and customer service. This service includes ensuring that the coffee produced for each label maintains a consistent taste and delivering the coffee on time in the proper quantities. We also intend to provide our private label customers with information on the coffee market on a regular basis. Private label coffee also competes with all of the branded coffee on the market. Sara Lee also produces branded coffees which compete directly with their private label products.



Wholesale Green Coffee Competition. There are many green coffee dealers throughout the United States. Many of these dealers have greater financial resources than us. However, we believe that our location in Hawaii will assist in locating good supply of Hawaiian beans.  Because we are also a roaster and packaging facility as well as a seller of green coffee, we can provide our roasting facility as a value added service to our gourmet roaster customers. Because the gourmet green coffee beans are sold unroasted to small coffee shops and roasters that market their products to local gourmet customers, we do not believe that our gourmet green coffee customers compete with our private label or branded coffee lines of business.  We believe it helps to have this type of business to increase the awareness level and maintain prices.



Government Regulation



Our coffee roasting operations will be subject to various governmental laws, regulations, and licenses relating to customs, health and safety, building and land use, and environmental protection. Our roasting facility is subject to state and local air-quality and emissions regulation. If we encounter difficulties in obtaining any necessary licenses or complying with these laws and regulations, then our product offerings could be limited.



We believe that we will be in compliance in all material respects with all such laws and regulations and that we have obtained all material licenses and permits that are required for the operation of our business. We are not aware of any environmental regulations that have or that we believe will have a material adverse effect on our operations.









Employees



We have no employees other than our officers.  Upon receipt of funding we plan to hire two persons in marketing and one in administration.  All of our employees are full time.





Item 2.

DESCRIPTION OF PROPERTY



We are currently using a limited amount of office space of an officer and director.  We think our existing office space will be adequate for the next year.  We also lease a roasting facility from the officer and director as needed.



Item 3.

LEGALFREDPROCEEDINGS



Pacific Land and Coffee is not a party to any pending legal  proceeding.



Item 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



No matters were submitted to a vote of security holders during the fourth quarter of the fiscal year ended March 31, 2005.



PART II





Item 5.

MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCK­HOLDER MATTERS



Our common stock commenced trading in the quarter ended June 30, 2005 under the symbol PLCF.OB on the OTC Bulletin Board.  As of March 31, 2005, there were approximately 120 record holders of common stock.



There are no warrants or options outstanding and no registration rights have been granted.  At the present time 10,000,000 shares are outstanding, including 3,000,000 which were outstanding prior to the acquisition of Pacific Land and Coffee (Hawaii).  These 3,000,000 shares are eligible for resale under Rule 144(k).



Item 6.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS



We did not receive revenues from operations until the quarter ended September 30, 2003.  Our initial product offered is a special roasted blend to one customer in Japan, commencing in September, 2003, and the brokerage of two green bean orders in the quarter ended December 31, 2003. With respect to coffee brokerage orders, we do not take ownership of the green beans, but only receive a commission on the sale. This contrasts with the sales of roasted blend, in which we purchase the materials and resell to the purchaser.



Managements experience in the coffee industry is that as typical for coffee brokerage and small specialty coffee sales, we do not have long term sales contracts. We do not have any written contracts for the sale of our product.  We produce and ship as purchase orders are received.  We must wait for future purchase orders to make sales in the future.  Because coffee prices are variable and demand can also be variable, we believe that selling under long term contracts would not be practicable in our industry.  Our purchase orders are payable net 30 days, but currently we are receiving payment immediately on shipment. The sales in the year ended March 31, 2005 were $18,621, or almost half of 2004 sales of $35,924, primarily because of decreasing sales to our principal customer. Gross margin as a percentage of sales was essentially unchanged. Our general and administrative expenses primarily consisted of legal and professional fees related to our status as a public company.



Our plan of operation for calendar 2006 will depend on whether we obtain outside funding.  If we do not receive outside funding, our plan of operations will be simple.  Based entirely on our communications with our one customer, management believes, and has no reason to doubt, that we will continue to achieve the current level of sales (about $1,500 per month) without any significant marketing expenditures.  However, we cannot be certain of any future sales.  Management is confident that Pacific Land and Coffee can continue to enjoy at least its limited level of sales.  Management will use its current business contacts to attempt to achieve additional sales.  In particular, Mr. Coscina has 25 years experience in the coffee industry.  We expect to obtain purchase orders with other purchasers in the fiscal  year which ends March 31, 2006.  There are no contingencies or conditions to the above sales other than our performance under purchase orders.  We will not require any outside funding to accomplish these sales, nor will we need to make any capital expenditures or hire employees and expect that we will slowly obtain additional  specialty coffee orders and green bean brokerage transactions.  Business expenses will be advanced by the officers, who will accrue salaries until the receipt of significant revenues.  Its very difficult for management to project our sales for fiscAlfred2005.  Management is hopeful that sales will gradually increase but cannot guarantee sales will remain at current levels, sales will not decrease, nor that any increase will occur.



We hope to be able to expand our operations if we can receive significant outside funding.  We will not receive any proceeds from the sale of shares in this offering.  We are seeking $300,000 in funding for 12 months of our business plan as follows:



Marketing

$100,000

General and Administration

$180,000

Research and Development

$ 20,000



Upon receipt of the full amount of the funding Pacific Land and Coffee will commence marketing primarily of our specialty coffee and green bean brokerage services.  We will develop proprietary coffee blends from research and development funds.  We believe we can develop severAlfredblends and attractive packaging with such amount.  Marketing expenses will be comprised of printing of marketing materials and media costs, and salaries for sales representatives or sales associates.  General and administrative costs include salaries estimated at an aggregate of $10,000 per month for 12 months, lease expense, telephone and travel expense.  In the event we obtain such funding we believe that lead time will be 2-3 months from funding until the commencement of increased sales.  With full funding we will be able to hire sales assistants and to undertake marketing via tradeshows and advertisements in industry publications.  If we receive less than the full $300,000 we need, we will not be able to complete this plan in full.  If we receive $100,000 in funding, most of this amount will be used for salaries of sales associates or sales representatives.  The receipt of $200,000 will enable us to advertise, to utilize trade shows and conventions, to market as well as direct mail, but we will not be able to pay management salaries.



We do not have any agreements or understandings with respect to sources of capital.  We have not identified any potential sources.  Investors cannot  expect that we will be able to raise any funds whatsoever. Even if we are able to find one or more sources of capital, its likely that we will not be able to raise the entire amount required initially, in which case our development time will be extended until such full amount can be obtained.  Even if we are successful in obtaining the required funding, we probably will need to raise additional funds at the end of 12 months.



Information included in this report includes forward looking statements, which can be identified by the use of forward-looking terminology such as may, will, expect, anticipate, believe, estimate, or continue, or the negative thereof or other variations thereon or comparable terminology. The statements in "Risk Factors" and other statements and disclaimers in this report constitute cautionary statements identifying important factors, including risks and uncertainties, relating to the forward-looking statements that could cause actual results to differ materially from those reflected in the forward-looking statements.



Since we have not yet generated significant and consistent revenues, we are a development stage company as that term is defined in paragraphs 8 and 9 of SFAS No. 7.  Our activities to date have been limited to seeking capital; seeking supply contracts and development of a business plan.  Our auditors have included an explanatory paragraph in their report on our financial statements, relating to the uncertainty of our business as a going concern, due to our lack of operating history or current revenues, its nature as a start up business, management's limited experience and limited funds.  We do not believe that conventional financing, such as bank loans, is available to us due to these factors.  We have no bank line of credit available to us.  Management believes that it will be able to raise the required funds for operations from one or more future offerings, in order to effect our business plan.   Management has refrained from discussions regarding specific equity or debt offerings commencing on the filing of a pending Registration Statement.  However, prior to such filing management found significant interest from individual investors in making investments in Pacific Land and Coffee provided that a listing on a public market was obtained.  No terms have been discussed, and we cannot predict the price or terms of any offering nor the amount of dilution existing shareholders may experience as a result of such offering.    We do not expect to sell shares in any proposed financing for less than $.01 per share.





Forward looking information



Our future operating results are subject to many factors, including:



o     the impact of rapid and persistent fluctuations in the price of coffee beans;



o     fluctuations in the supply of coffee beans;



o     general economic conditions and conditions which affect the market for coffee;



o     our success in implementing our business strategy or introducing new

products;



o     our ability to attract and retain customers;



o     the effects of competition from other coffee manufacturers and other

beverage alternatives;



o     changes in tastes and preferences for, or the consumption of,

coffee;



o     our ability to obtain additional financing; and



o     other risks which we identify in future filings with the SEC.



In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "predict," "potential," "continue," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate" and similar expressions (or the negative of such expressions). Any or all of our forward looking statements in this annuAlfredreport and in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Consequently, no forward looking statement can be guaranteed. In addition, we undertake no responsibility to update any forward-looking statement to reflect events or circumstances which occur after the date of this report.





Item 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



The consolidated financial statements of the Company required to be included in Item 7 are set forth in the Financial Statements Index.











Item 8.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNT­ING AND FINANCIAL DISCLOSURE



David T. Thomson, PC. ("Thomson") resigned as independent auditor of the Registrant's Pacific Land and Coffee Corporation (Hawaii) subsidiary ("PLC Hawaii") on September 8, 2003.  The report by Thomson on the financial state­ments of PLC Hawaii dated April 17, 2003, including a balance sheet as of March 31, 2004 and the statements of opera­tions, cash flows and statement of stockholders' equity for the period inception (February 14, 2003) to March 31, 2004 did not contain an adverse opinion or a disclaimer of opinion, or was qualified or modified as to uncer­tainty, audit scope or accounting principles.  During the period covered by the financial statements through the date of resignation of the former accoun­tant, there were no disagreements with the former accountant on any matter of accounting princi­ples or prac­tices, financial statement disclosure, or auditing scope or proce­dure.  Thomson was provided by the disclosure set forth above and provided the Registrant with a letter to the effect that it did not disagree with the above statements as far as they related to Thomson. A copy of Thomson's letter is filed as an exhibit to our Current Report on Form 8-K dated September 8, 2003.



On October 15, 2003 the Registrant engaged Mantyla McReynolds, LLC as its new independent accountants.  Prior to the engagement of Mantyla McReynolds, LLC the Regis­trant did not consult with Mantyla McReynolds, LLC on the application of accounting principles to any specific transac­tion nor the type of audit opinion that might be rendered on the Registrant's financial statements.



Item 8A.

CONTROLS AND PROCEDURES



We maintain  disclosure controls and procedures designed to ensure that information  required to be disclosed in our reports filed under the  Securities and Exchange Act of 1934,  as amended (the Exchange  Act),  is recorded,  processed, summarized,  and  reported  within  the  required  time  periods,  and that such information is accumulated and  communicated  to our  management,  including our Chief Executive Officer and Chief Financial  Officer,  as appropriate,  to allow for timely decisions regarding disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.





As required by Rule  13a-15(b)  under the Exchange Act, we conducted an evaluation,  with the participation of our Chief Executive Officer and the Chief Financial  Officer,   of  the  effectiveness  of  our  disclosure  controls  and procedures  as of March 31, 2005. Management determined that our disclosure controls and procedures were effective to ensure that material information relating to us  is made known to them, particularly during the period in which this Annual Report on Form 10-KSB was being prepared.



There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) identified in connection with the evaluation described above that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



Item 8B.

OTHER INFORMATION



Not applicable











PART III



Item 9.

DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.



Directors and Executive Officers



The members of the Board of Directors of Pacific Land and Coffee serve until the next annual meeting of stockholders, or until their successors have been elected.  The officers serve at the pleasure of the Board of Directors.  The following are the directors and executive officers of Pacific Land and Coffee since its inception on February 14, 2003.  They devote substantially full time to Pacific Land and Coffee.



Dale G. Nielsen

Chief Executive Officer and Director

Alfred Coscina

Chief Financial Officer, Secretary and Director



Dale G. Nielsen, 56, has been president of General Pacific, Inc., for more than the past five years.  General Pacific, Inc. consults on real estate, retailing and telecommunications.



Alfred Coscina, 66, has been founder and president of Daga Restaurant Ware, Coscina Brothers Coffee Company and Kona Wave Coffee Company since 1978.  Prior to 1973 he was owner of Boston Insulated Wire and Cable and Rockbestos Wire and Cable.  He graduated with a degree in psychology from Alfred University and he attended graduate courses in pyschology at the University of Buffalo and the University of New Mexico.



Code of Ethics



Pacific Land and Coffee  has not adopted a code of ethics which applies to the chief executive officer, or principal financial  ad accounting officer, because of our level of operations at this time.



Audit Committee Financial Expert



Pacific Land and Coffee  does  not  have an  audit  committee.  The  entire  board of directors functions as the audit committee.   Pacific Land and Coffee does not have a financial  expert on its audit  committee, because of the difficulty encountered by all small public companies in obtaining outside  board  members.  We cannot  predict  when,  if ever, we will be able to attract a person to the board of directors who is a financial expert.



Item 10. EXECUTIVE COMPENSATION



The following table sets forth the cash and all other compensation of Pacific Land and Coffee's executive officers and directors during each of the last three fiscal years.  The remuneration described in the table includes the cost to Pacific Land and Coffee of any benefits which may be furnished to the named executive officers, including premiums for health insurance and other benefits provided to such individual that are extended in connection with the conduct of Pacific Land and Coffee's business.  The executive officers named below did not receive any manner of compensation in the years set forth below.



Until we obtain funding, officers are devoting most of their time to other employment and are serving without compensation.  Following funding we expect that the aggregate monthly compensation for management will be $10,000.

Summary Compensation Table



ANNUALFREDCOMPENSATION

LONG TERM COMPENSATION







Name and

Other Annual

Awards

Payouts

All

Principal Position

Year

Salary

Bonus

Compensation

Other

Restricted

Securities

LTIP

Compensation

Stock

Underlying

Payouts ($)



Awards ($)

Options SARs(#)



Dale G. Nielsen

2005

$

0

0

0

0

0

0

0

CEO

2004

0

0

0

0

0

0

2003

0

0

0

0

0

0

0



Alfred Coscina

2005

$

0

0

0

0

0

0

0

CFO

2004

0

0

0

0

0

0

2003

0

0

0

0

0

0

0











Pacific Land and Coffee Corporation, by resolution of its Board of Directors and stockholders, adopted a 1994 Stock Option Plan (the "Plan") on April 20, 1994.   The Plan enables the Company to offer an incentive based compensation system to employees, officers and directors and to employees of companies who do business with the Company.



In the discretion of a committee comprised of non-employee directors (the "Committee"), directors, officers, and key employees or employees of companies with which we do business become participants in the Plan upon receiving grants in the form of stock options or restricted stock.  A total of 2,000,000 shares are authorized for issuance under the Plan, of which no shares are issued.  The Company may increase the number of shares authorized for issuance under the Plan or may make other material modifications to the Plan without shareholder approval.  However, no amendment may change the existing rights of any option holder.



Any shares which are subject to an award but are not used because the terms and conditions of the award are not met, or any shares which are used by participants to pay all or part of the purchase price of any option may again be used for awards under the Plan.  However, shares with respect to which a stock appreciation right has been exercised may not again be made subject to an award.



Stock options may be granted as non-qualified stock options or incentive stock options, but incentive stock options may not be granted at a price less than 100% of the fair market value of the stock as of the date of grant (110% as to any 10% shareholder at the time of grant); non-qualified stock options may not be granted at a price less than 85% of fair market value of the stock as of the date of grant.  Restricted stock may not be granted under the Plan in connection with incentive stock options.



Stock options may be exercised during a period of time fixed by the Committee except that no stock option may be exercised more than ten years after the date of grant or three years after death or disability, whichever is later.  In the discretion of the Committee, payment of the purchase price for the shares of stock acquired through the exercise of a stock option may be made in cash, shares of Common Stock or by delivery or recourse promissory notes or a combination of notes, cash and shares of the Company's common stock or a combination thereof.  Incentive stock options may only be issued to directors, officers and employees.



Stock options may be granted under the Plan may include the right to acquire an Accelerated Ownership Non-Qualified Stock Option ("AO").  If an option grant contains the AO feature and if a participant pays all or part of the purchase price of the option with shares of common stock, then upon exercise of the option the participant is granted an AO to purchase, at the fair market value as of the date of the AO grant, the number of shares of common stock equal to the sum of the number of whole shares used by the participant in payment of the purchase price and the number of whole shares, if any, withheld as payment for withholding taxes.  An AO may be exercised between the date of grant and the date of expiration, which will be the same as the date of expiration of the option to which the AO is related.



Stock appreciation rights and/or restricted stock may be granted in conjunction with, or may be unrelated to stock options.  A stock appreciation right entitles a participant to receive a payment, in cash or common stock or a combination thereof, in an amount equal to the excess of the fair market value of the stock at the time of exercise over the fair market value as of the date of grant.  Stock appreciation rights may be exercised during a period of time fixed by the Committee not to exceed ten years after the date of grant or three years after death or disability, whichever is later.  Restricted stock requires the recipient to continue in service as an officer, director, employee or consultant for a fixed period of time for ownership of the shares to vest.  If restricted shares or stock appreciation rights are issued in tandem with options, the restricted stock or stock appreciation right is canceled upon exercise of the option and the option will likewise terminate upon vesting of the restricted shares.



Item 11.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT



The following table sets forth information relating to the beneficial ownership of Company common stock as of March 31, 2005 by  (i) each person known by Pacific Land and Coffee to be the beneficial owner of more than 5% of the outstanding shares of common stock  and (ii) each of Pacific Land and Coffee's directors and executive officers.  Unless otherwise noted below, Pacific Land and Coffee believes that all persons named in the table have sole voting and investment power with respect to all shares of common stock beneficially owned by them.  For purposes hereof, a person is deemed to be the beneficial owner of securities that can be acquired by such person within 60 days from the date hereof upon the exercise of warrants or options or the conversion of convertible securities.  Each beneficial owner's percentage ownership is determined by assuming that any warrants, options or convertible securities that are held by such person (but not those held by any other person) and which are exercisable within 60 days from the date hereof, have been exercised.





Name and Address

Common Stock

Percentage







Dale G. Nielsen(1)

4,662,000

46.6%





Albert Coscina(1)

2,338,000

23.4



All officers and directors

as a group (2 persons)

7,000,000

70%



(1)

The address of this person is c/o the Company.



Item 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS



Back Channel Investments, Inc. was organized as a Delaware corporation on April 21, 1994 to seek out an advantageous acquisition.  On May 20, 2003, Back Channel Investments, Inc. acquired all of the capital stock of Pacific Land and Coffee Corporation, a Hawaii corporation, in exchange for 7,000,000 shares of newly issued common stock of Back Channel Investments, Inc.. Prior to the exchange Back Channel Investments, Inc. had 3,000,000 shares outstanding (after giving effect to a three-for-one forward stock split).  As a result, there are 10,000,000 shares outstanding.  Back Channel Investments, Inc. has subsequently changed its name to Pacific Land & Coffee Corporation, the same name as its Hawaii subsidiary.  References to Pacific Land and Coffee Corporation in this report are to the combined entity unless otherwise noted.  Prior to the exchange, Back Channel Investments, Inc. and Pacific Land and Coffee Corporation had no affiliation or prior relationship.  The terms of the share exchange were negotiated at arm's length.



We sublease a roaster facility in Hawaii from a limited liability company owned by Alfred Coscina, an officer and director. Through March 31, 2005 no usage had occurred under this lease.



On November 4, 2004, the President, Dale Nielsen, loaned the Company  $5,000. The note and interest is due and payable upon demand.  The note bears an interest rate of 8.5% per anum.  As of March 31, 2005, the Company has accrued interest of $172.













PART IV





Item 13.

EXHIBITS



The following exhibits of the Company are included herein.



Exhibit No.

Document Description



2.

Agreement and Plan of Reorganization between Back Channel Investments, Inc. and Pacific Land and Coffee Corporation(2)



3.

Certificate of Incorporation and Bylaws



3.1.

Articles of Incorporation(1)

3.2

Articles of Amendment(2)

3.3

Bylaws(1)



10.

Material Contracts



10.1 Stock Option Plan.(1)

10.2 Sublease of Roaster Facilities(4)





16.1

Letter regarding change in certifying accountant(3)





21. Subsidiaries of the Registrant. Pacific Land and Coffee Corporation  is a wholly owned Hawaii subsidiary. No trade names are employed



31.

Certification of the Chief Executive and Financial Officer pursuant to Rule 13a-14 of the Securities and Exchange  Act of 1934 as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2003. Filed herewith.





32.

Certification of the Chief Executive and Financial Officer pursuant to 18 U.S.C. Section 350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2003. Filed Herewith





(1)

Filed with the Company's original Form 10-SB.

(2)

Filed with Registration Statement on Form SB-2, file no. 333-105564 and incorporated by reference.

(3)

Incorporated by reference to the Current Report on Form 8-K dated September 8, 2003.

(4)

Filed with Amendment No. 1 to Registration Statement 333-105564 and incorporated by reference(5)

(5)

Incorporated by reference to the Quarterly Report  on Form 10-SB for the quarter ended December 31, 2004.



Item 14. Principal Accountant Fees and Services.



Audit Fees



Our  principal  accountants,  Mantyla, McReynolds LLC,  billed us $ 7,367 and $3,257  for audit fees and review of quarterly  filings in the fiscal years ended  March 31, 2004 and 2003, respectively.



Less than 50% of the hours  expended  by our  auditors on the audit for the year ended March  31, 2005 were performed by persons' other than Mantyla McReynolds, LLC's permanent full time employees.



There were $7,367, $0 and $0,  respectively  paid in audit related fees, tax fees and all other  fees to Mantyla McReynolds  during the year  ended  March 31, 2005.



Audit Committees pre-approval policies and procedures.



We do not have an audit  committee.  Our  engagement  of  Mantyla McReynolds LLC  was approved  by the Board of  Directors.  No  services  described  in Item  9(e)(2) through 9(e)(4) of Schedule 14A were performed by our auditors.







SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on June 29, 2005.





PACIFIC LAND AND COFFEE CORPORATION





By:

/s/ Dale G. Nielsen



Dale G. Nielsen

Chief Executive Officer



Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities on June 29, 2005.



By:

/s/ Dale G. Nielsen

Chief Executive Officer and Director

Dale G. Nielsen

(principal executive officer)





By:

/s/ Alfred Coscina

Chief Financial  Officer and Director

Alfred Coscina

(principal financial and accounting officer)

































PACIFIC LAND AND COFFEE CORPORATION

[A Development Stage Company]



FINANCIAL STATEMENTS



MARCH 31, 2005





[WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM]



































































PACIFIC LAND AND COFFEE CORPORATION

[A Development Stage Company]





TABLE OF CONTENTS





|                                                                                                                                                     |     | Page
|---------------------------------------------------------------------------------------------------------------------------------------------------- | --- | ----
|                                                                                                                                                     |     |     
|Report of Independent Registered Public Accounting Firm                                                                                              | 1  
|                                                                                                                                                     |     |     
|Balance Sheet -- March 31, 2005                                                                                                                      | 2  
|                                                                                                                                                     |     |     
|Statements of Operations for the periods ended March 31, 2005 and 2004 and for the  period from Inception [February 14, 2003] through March 31, 2005 | 3  
|                                                                                                                                                     |     |     
|Statement of Stockholders* Equity  for the period from Inception [February 14, 2003] through March 31, 2005                                          | 4  
|                                                                                                                                                     |     |     
|Statements of Cash Flows for periods ended March 31, 2005, 2004 and for the period from Inception [February 14, 2003] through March 31, 2005         | 5  
|                                                                                                                                                     |     |     
|Notes to Financial Statements                                                                                                                        | 6-9



















































Report of Independent Registered Public Accounting Firm





The Board of Directors and Shareholders

Pacific Land and Coffee Corporation [a development stage company]:



We have audited the accompanying balance sheet of Pacific Land and Coffee Corporation [a development stage company] as of  March  31, 2005, and the related statements of operations, stockholders' equity, and cash flows for the periods ended March 31, 2005 and 2004 and for the period from inception [February 14, 2003] through March 31, 2005.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audit.



We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal controls over financial reporting.  Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.



In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pacific Land and Coffee Corporation [a development stage company] as of March 31, 2005, and the results of its operations and cash flows for the periods ended March 31, 2005 and 2004 and for the period from inception [February 14, 2003] to March 31, 2005 in conformity with accounting principles generally accepted in the United States of America.



The accompanying financial statements have been prepared assuming that Pacific Land and Coffee Corporation will continue as a going concern.  As discussed in Note 2 to the financial statements, the Company has limited operating capital with revenue from operations.  Realization of a major portion of the assets is dependent upon the Companys ability to meet its future financing requirements, and the success of future operations. These factors raise substantial doubt about the Companys ability to continue as a going concern. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.





Mantyla McReynolds

Salt Lake City, Utah

June 15, 2005





















Balance Sheet



|Pacific Land and Coffee Corporation      
|-----------------------------------------
|[A Development Stage Company]            
|Balance Sheet                            
|March 31, 2005 and 2004                  
|Assets                                   
|                                         
|Current Assets                           
|Cash                                     
|Total Current Assets                     
|Total Assets                             
|                                         
|Liabilities and Stockholders' Equity     
|Current Liabilites                       
|Accounts Payable                         
|Note Payable - Related Party             
|Accrued Interest - Related Party         
|Total Current Liabilities                
|Total Liabilities                        
|                                         
|Stockholders' Equity                     
|Common Stock                             
|Additional Paid in Capital               
|Retained Earnings                        
|Total Stockholders Equity                
|Total Liabilities and Stockholers' Equity





Income



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Operations                    
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Revenues:                                  
|Sales                                      
|Total Revenues                             
|Cost of Sales                              
|                                           
|Gross Profit                               
|Expenses                                   
|Bank Charges                               
|Taxes                                      
|Legal and Professional                     
|Offering Costs                             
|Office Expense                             
|Franchise Tax                              
|Total Expenses                             
|Net Loss From Operations                   
|                                           
|Other Income (Expense):                    
|Interest Expense                           
|Total Other Income (Expense)               
|                                           
|Net Income                                 





Stockholders' Equity



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Stockholders' Equity          
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Beginning Stockholders' Equity             
|Net Income                                 
|Ending Members' Equity                     





Balance Sheet Report



|Pacific Land and Coffee Corporation                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                       
|Balance Sheet                                                                                                                       
|March 31, 2005                                                                                                                      
|Assets                                                                                                                              
|Current Assets                                                                                                                      
|Cash in Bank                                                                                                                        
|Total Current Assets                                                                                                                
|Total Assets                                                                                                                        
|                                                                                                                                    
|Liabilities and Stockholders' Deficit                                                                                               
|Current Liabilities                                                                                                                 
|Accounts Payable                                                                                                                    
|Due Related Party - Note 5                                                                                                          
|Total Current Liabilities                                                                                                           
|Total Liabilities                                                                                                                   
|                                                                                                                                    
|Stockholders' Deficit                                                                                                               
|Preferred Stock*1,000,000 shares authorized having a par value of $.001 per share, 1,000,000 shares issued and no shares outstanding
|Common Stock--20,000,000 shares authorized having a par value of $.001 per share; 10,000,000 shares issued and outstanding - Note 3 
|Additional Paid-in Capital                                                                                                          
|Deficit accumulated during the development stage                                                                                    
|Total Stockholders Deficit                                                                                                          
|Total Liabilities and Stockholders' Deficit                                                                                         





Income Report



|Pacific Land and Coffee Corporation                                         
|----------------------------------------------------------------------------
|[A Development Stage Company]                                               
|Statement of Operations                                                     
|For the Periods Ended March 31, 2005 and 2004                               
|and for the Period from Inception [February 14, 2003] Through March 31, 2005
|                                                                            
|Revenues:                                                                   
|Sales                                                                       
|Total Revenues                                                              
|Cost of Sales                                                               
|                                                                            
|Gross Profit                                                                
|                                                                            
|General & Administrative Expenses                                           
|                                                                            
|Net Loss From Operations                                                    
|                                                                            
|Other Income (Expense):                                                     
|Interest Expense                                                            
|Total Other Income (Expense)                                                
|                                                                            
|Net Loss                                                                    
|                                                                            
|Net Loss Per Share                                                          
|                                                                            
|Weighted Average Shares Outstanding - Note 1                                





Stockholders' Equity Report



|Pacific Land and Coffee Corporation                                                                                           
|------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                 
|Statement of Stockholders' Equity (Deficit)                                                                                   
|For the Periods Ended March 31, 2005 and 2004                                                                                 
|and from Inception [February 14, 2003] Through March 31, 2005                                                                 
|                                                                                                                              
|                                                                                                                              
|Balance, February 14, 2003                                                                                                    
|Shares issued to initial stockholders for cash at inception at approximately $1.00 per share                                  
|Contributed Capital-Corporate Organization and Start-up Costs, at Inception, Services and Costs at Estimated Fair Market Value
|Net Loss From February 14, 2003(Inception) to March 31, 2003                                                                  
|Balance, March 31, 2003                                                                                                       
|Change in Outstanding Shares From a Recapitalization of the Company                                                           
|Cash Contributed For Working Capital                                                                                          
|Net Loss for Year Ended March 31, 2004                                                                                        
|Balance, March 31, 2004                                                                                                       
|Net Loss for Year Ended March 31, 2005                                                                                        
|Balance, March 31, 2005                                                                                                       





Sheet1



|Description                                   | NOL Balance | Tax | Rate 
|--------------------------------------------- | ----------- | --- | -----
|Beginning Balance, April 1, 2004              | 2,371       |     | 356  
|Current Year Net Loss                         | 6,695       |     | 1,004
|Ending Balance, March 31, 2005                | 9,066       |     | 1,360
|Valuation Allowance                           | (1,360)     |     |      
|Deferred Tax Asset                            | -           |     |      
|                                              |             |     |      
|                                              |             |     |      
|Expected Provision [Based on Statutory Rates] | $(1,004)   
|Increase / (Decrease) in Valuation Allowance  | 1,004      
|Provision for Income Taxes                    | $-         





Cashflow Report



|Pacific Land and Coffee Corporation                                                          
|---------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                
|Statements of Cash Flows                                                                     
|For the Periods Ended March 31, 2005 and 2004                                                
|and from Inception [February 14, 2003] Through March 31, 2005                                
|                                                                                             
|                                                                                             
|Cash Flows from Operating Activities                                                         
|Net Loss                                                                                     
|Adjustments to reconcile net loss to net cash provided by operating activities               
|Contributed Capital-noncash fair market value of start-up and organization services and costs
|Increase in accounts  payable                                                                
|Net Cash Used for Operating Activities                                                       
|                                                                                             
|Cash Flow from Financing Activities:                                                         
|Proceeds from the sale of stock/contributed cash                                             
|Loan from related party                                                                      
|Net Cash provided by Financing activities                                                    
|                                                                                             
|Net Increase (Decrease) in Cash                                                              
|                                                                                             
|Beginning Cash Balance                                                                       
|                                                                                             
|Ending Cash Balance                                                                          
|                                                                                             
|Supplemental Disclosure of Cash Flow Information:                                            
|Cash paid during the year for interest                                                       
|Cash paid during the year for income taxes                                                   









See accompanying notes to financial statements















Balance Sheet



|Pacific Land and Coffee Corporation      
|-----------------------------------------
|[A Development Stage Company]            
|Balance Sheet                            
|March 31, 2005 and 2004                  
|Assets                                   
|                                         
|Current Assets                           
|Cash                                     
|Total Current Assets                     
|Total Assets                             
|                                         
|Liabilities and Stockholders' Equity     
|Current Liabilites                       
|Accounts Payable                         
|Note Payable - Related Party             
|Accrued Interest - Related Party         
|Total Current Liabilities                
|Total Liabilities                        
|                                         
|Stockholders' Equity                     
|Common Stock                             
|Additional Paid in Capital               
|Retained Earnings                        
|Total Stockholders Equity                
|Total Liabilities and Stockholers' Equity





Income



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Operations                    
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Revenues:                                  
|Sales                                      
|Total Revenues                             
|Cost of Sales                              
|                                           
|Gross Profit                               
|Expenses                                   
|Bank Charges                               
|Taxes                                      
|Legal and Professional                     
|Offering Costs                             
|Office Expense                             
|Franchise Tax                              
|Total Expenses                             
|Net Loss From Operations                   
|                                           
|Other Income (Expense):                    
|Interest Expense                           
|Total Other Income (Expense)               
|                                           
|Net Income                                 





Stockholders' Equity



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Stockholders' Equity          
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Beginning Stockholders' Equity             
|Net Income                                 
|Ending Members' Equity                     





Balance Sheet Report



|Pacific Land and Coffee Corporation                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                       
|Balance Sheet                                                                                                                       
|March 31, 2005                                                                                                                      
|Assets                                                                                                                              
|Current Assets                                                                                                                      
|Cash in Bank                                                                                                                        
|Total Current Assets                                                                                                                
|Total Assets                                                                                                                        
|                                                                                                                                    
|Liabilities and Stockholders' Deficit                                                                                               
|Current Liabilities                                                                                                                 
|Accounts Payable                                                                                                                    
|Due Related Party - Note 5                                                                                                          
|Total Current Liabilities                                                                                                           
|Total Liabilities                                                                                                                   
|                                                                                                                                    
|Stockholders' Deficit                                                                                                               
|Preferred Stock*1,000,000 shares authorized having a par value of $.001 per share, 1,000,000 shares issued and no shares outstanding
|Common Stock--20,000,000 shares authorized having a par value of $.001 per share; 10,000,000 shares issued and outstanding - Note 3 
|Additional Paid-in Capital                                                                                                          
|Deficit accumulated during the development stage                                                                                    
|Total Stockholders Deficit                                                                                                          
|Total Liabilities and Stockholders' Deficit                                                                                         





Income Report



|Pacific Land and Coffee Corporation                                         
|----------------------------------------------------------------------------
|[A Development Stage Company]                                               
|Statement of Operations                                                     
|For the Periods Ended March 31, 2005 and 2004                               
|and for the Period from Inception [February 14, 2003] Through March 31, 2005
|                                                                            
|Revenues:                                                                   
|Sales                                                                       
|Total Revenues                                                              
|Cost of Sales                                                               
|                                                                            
|Gross Profit                                                                
|                                                                            
|General & Administrative Expenses                                           
|                                                                            
|Net Loss From Operations                                                    
|                                                                            
|Other Income (Expense):                                                     
|Interest Expense                                                            
|Total Other Income (Expense)                                                
|                                                                            
|Net Loss                                                                    
|                                                                            
|Net Loss Per Share                                                          
|                                                                            
|Weighted Average Shares Outstanding - Note 1                                





Stockholders' Equity Report



|Pacific Land and Coffee Corporation                                                                                           
|------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                 
|Statement of Stockholders' Equity (Deficit)                                                                                   
|For the Periods Ended March 31, 2005 and 2004                                                                                 
|and from Inception [February 14, 2003] Through March 31, 2005                                                                 
|                                                                                                                              
|                                                                                                                              
|Balance, February 14, 2003                                                                                                    
|Shares issued to initial stockholders for cash at inception at approximately $1.00 per share                                  
|Contributed Capital-Corporate Organization and Start-up Costs, at Inception, Services and Costs at Estimated Fair Market Value
|Net Loss From February 14, 2003(Inception) to March 31, 2003                                                                  
|Balance, March 31, 2003                                                                                                       
|Change in Outstanding Shares From a Recapitalization of the Company                                                           
|Cash Contributed For Working Capital                                                                                          
|Net Loss for Year Ended March 31, 2004                                                                                        
|Balance, March 31, 2004                                                                                                       
|Net Loss for Year Ended March 31, 2005                                                                                        
|Balance, March 31, 2005                                                                                                       





Sheet1



|Description                                   | NOL Balance | Tax | Rate 
|--------------------------------------------- | ----------- | --- | -----
|Beginning Balance, April 1, 2004              | 2,371       |     | 356  
|Current Year Net Loss                         | 6,695       |     | 1,004
|Ending Balance, March 31, 2005                | 9,066       |     | 1,360
|Valuation Allowance                           | (1,360)     |     |      
|Deferred Tax Asset                            | -           |     |      
|                                              |             |     |      
|                                              |             |     |      
|Expected Provision [Based on Statutory Rates] | $(1,004)   
|Increase / (Decrease) in Valuation Allowance  | 1,004      
|Provision for Income Taxes                    | $-         





Cashflow Report



|Pacific Land and Coffee Corporation                                                          
|---------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                
|Statements of Cash Flows                                                                     
|For the Periods Ended March 31, 2005 and 2004                                                
|and from Inception [February 14, 2003] Through March 31, 2005                                
|                                                                                             
|                                                                                             
|Cash Flows from Operating Activities                                                         
|Net Loss                                                                                     
|Adjustments to reconcile net loss to net cash provided by operating activities               
|Contributed Capital-noncash fair market value of start-up and organization services and costs
|Increase in accounts  payable                                                                
|Net Cash Used for Operating Activities                                                       
|                                                                                             
|Cash Flow from Financing Activities:                                                         
|Proceeds from the sale of stock/contributed cash                                             
|Loan from related party                                                                      
|Net Cash provided by Financing activities                                                    
|                                                                                             
|Net Increase (Decrease) in Cash                                                              
|                                                                                             
|Beginning Cash Balance                                                                       
|                                                                                             
|Ending Cash Balance                                                                          
|                                                                                             
|Supplemental Disclosure of Cash Flow Information:                                            
|Cash paid during the year for interest                                                       
|Cash paid during the year for income taxes                                                   











See accompanying notes to financial statements



3























Balance Sheet



|Pacific Land and Coffee Corporation      
|-----------------------------------------
|[A Development Stage Company]            
|Balance Sheet                            
|March 31, 2005 and 2004                  
|Assets                                   
|                                         
|Current Assets                           
|Cash                                     
|Total Current Assets                     
|Total Assets                             
|                                         
|Liabilities and Stockholders' Equity     
|Current Liabilites                       
|Accounts Payable                         
|Note Payable - Related Party             
|Accrued Interest - Related Party         
|Total Current Liabilities                
|Total Liabilities                        
|                                         
|Stockholders' Equity                     
|Common Stock                             
|Additional Paid in Capital               
|Retained Earnings                        
|Total Stockholders Equity                
|Total Liabilities and Stockholers' Equity





Income



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Operations                    
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Revenues:                                  
|Sales                                      
|Total Revenues                             
|Cost of Sales                              
|                                           
|Gross Profit                               
|Expenses                                   
|Bank Charges                               
|Taxes                                      
|Legal and Professional                     
|Offering Costs                             
|Office Expense                             
|Franchise Tax                              
|Total Expenses                             
|Net Loss From Operations                   
|                                           
|Other Income (Expense):                    
|Interest Expense                           
|Total Other Income (Expense)               
|                                           
|Net Income                                 





Stockholders' Equity



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Stockholders' Equity          
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Beginning Stockholders' Equity             
|Net Income                                 
|Ending Members' Equity                     





Balance Sheet Report



|Pacific Land and Coffee Corporation                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                       
|Balance Sheet                                                                                                                       
|March 31, 2005                                                                                                                      
|Assets                                                                                                                              
|Current Assets                                                                                                                      
|Cash in Bank                                                                                                                        
|Total Current Assets                                                                                                                
|Total Assets                                                                                                                        
|                                                                                                                                    
|Liabilities and Stockholders' Deficit                                                                                               
|Current Liabilities                                                                                                                 
|Accounts Payable                                                                                                                    
|Due Related Party - Note 5                                                                                                          
|Total Current Liabilities                                                                                                           
|Total Liabilities                                                                                                                   
|                                                                                                                                    
|Stockholders' Deficit                                                                                                               
|Preferred Stock*1,000,000 shares authorized having a par value of $.001 per share, 1,000,000 shares issued and no shares outstanding
|Common Stock--20,000,000 shares authorized having a par value of $.001 per share; 10,000,000 shares issued and outstanding - Note 3 
|Additional Paid-in Capital                                                                                                          
|Deficit accumulated during the development stage                                                                                    
|Total Stockholders Deficit                                                                                                          
|Total Liabilities and Stockholders' Deficit                                                                                         





Income Report



|Pacific Land and Coffee Corporation                                         
|----------------------------------------------------------------------------
|[A Development Stage Company]                                               
|Statement of Operations                                                     
|For the Periods Ended March 31, 2005 and 2004                               
|and for the Period from Inception [February 14, 2003] Through March 31, 2005
|                                                                            
|Revenues:                                                                   
|Sales                                                                       
|Total Revenues                                                              
|Cost of Sales                                                               
|                                                                            
|Gross Profit                                                                
|                                                                            
|General & Administrative Expenses                                           
|                                                                            
|Net Loss From Operations                                                    
|                                                                            
|Other Income (Expense):                                                     
|Interest Expense                                                            
|Total Other Income (Expense)                                                
|                                                                            
|Net Loss                                                                    
|                                                                            
|Net Loss Per Share                                                          
|                                                                            
|Weighted Average Shares Outstanding - Note 1                                





Stockholders' Equity Report



|Pacific Land and Coffee Corporation                                                                                           
|------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                 
|Statement of Stockholders' Equity (Deficit)                                                                                   
|For the Periods Ended March 31, 2005 and 2004                                                                                 
|and from Inception [February 14, 2003] Through March 31, 2005                                                                 
|                                                                                                                              
|                                                                                                                              
|Balance, February 14, 2003                                                                                                    
|Shares issued to initial stockholders for cash at inception at approximately $1.00 per share                                  
|Contributed Capital-Corporate Organization and Start-up Costs, at Inception, Services and Costs at Estimated Fair Market Value
|Net Loss From February 14, 2003(Inception) to March 31, 2003                                                                  
|Balance, March 31, 2003                                                                                                       
|Change in Outstanding Shares From a Recapitalization of the Company                                                           
|Cash Contributed For Working Capital                                                                                          
|Net Loss for Year Ended March 31, 2004                                                                                        
|Balance, March 31, 2004                                                                                                       
|Net Loss for Year Ended March 31, 2005                                                                                        
|Balance, March 31, 2005                                                                                                       





Sheet1



|Description                                   | NOL Balance | Tax | Rate 
|--------------------------------------------- | ----------- | --- | -----
|Beginning Balance, April 1, 2004              | 2,371       |     | 356  
|Current Year Net Loss                         | 6,695       |     | 1,004
|Ending Balance, March 31, 2005                | 9,066       |     | 1,360
|Valuation Allowance                           | (1,360)     |     |      
|Deferred Tax Asset                            | -           |     |      
|                                              |             |     |      
|                                              |             |     |      
|Expected Provision [Based on Statutory Rates] | $(1,004)   
|Increase / (Decrease) in Valuation Allowance  | 1,004      
|Provision for Income Taxes                    | $-         





Cashflow Report



|Pacific Land and Coffee Corporation                                                          
|---------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                
|Statements of Cash Flows                                                                     
|For the Periods Ended March 31, 2005 and 2004                                                
|and from Inception [February 14, 2003] Through March 31, 2005                                
|                                                                                             
|                                                                                             
|Cash Flows from Operating Activities                                                         
|Net Loss                                                                                     
|Adjustments to reconcile net loss to net cash provided by operating activities               
|Contributed Capital-noncash fair market value of start-up and organization services and costs
|Increase in accounts  payable                                                                
|Net Cash Used for Operating Activities                                                       
|                                                                                             
|Cash Flow from Financing Activities:                                                         
|Proceeds from the sale of stock/contributed cash                                             
|Loan from related party                                                                      
|Net Cash provided by Financing activities                                                    
|                                                                                             
|Net Increase (Decrease) in Cash                                                              
|                                                                                             
|Beginning Cash Balance                                                                       
|                                                                                             
|Ending Cash Balance                                                                          
|                                                                                             
|Supplemental Disclosure of Cash Flow Information:                                            
|Cash paid during the year for interest                                                       
|Cash paid during the year for income taxes                                                   











See accompanying notes to financial statements





4

















Balance Sheet



|Pacific Land and Coffee Corporation      
|-----------------------------------------
|[A Development Stage Company]            
|Balance Sheet                            
|March 31, 2005 and 2004                  
|Assets                                   
|                                         
|Current Assets                           
|Cash                                     
|Total Current Assets                     
|Total Assets                             
|                                         
|Liabilities and Stockholders' Equity     
|Current Liabilites                       
|Accounts Payable                         
|Note Payable - Related Party             
|Accrued Interest - Related Party         
|Total Current Liabilities                
|Total Liabilities                        
|                                         
|Stockholders' Equity                     
|Common Stock                             
|Additional Paid in Capital               
|Retained Earnings                        
|Total Stockholders Equity                
|Total Liabilities and Stockholers' Equity





Income



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Operations                    
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Revenues:                                  
|Sales                                      
|Total Revenues                             
|Cost of Sales                              
|                                           
|Gross Profit                               
|Expenses                                   
|Bank Charges                               
|Taxes                                      
|Legal and Professional                     
|Offering Costs                             
|Office Expense                             
|Franchise Tax                              
|Total Expenses                             
|Net Loss From Operations                   
|                                           
|Other Income (Expense):                    
|Interest Expense                           
|Total Other Income (Expense)               
|                                           
|Net Income                                 





Stockholders' Equity



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Stockholders' Equity          
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Beginning Stockholders' Equity             
|Net Income                                 
|Ending Members' Equity                     





Balance Sheet Report



|Pacific Land and Coffee Corporation                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                       
|Balance Sheet                                                                                                                       
|March 31, 2005                                                                                                                      
|Assets                                                                                                                              
|Current Assets                                                                                                                      
|Cash in Bank                                                                                                                        
|Total Current Assets                                                                                                                
|Total Assets                                                                                                                        
|                                                                                                                                    
|Liabilities and Stockholders' Deficit                                                                                               
|Current Liabilities                                                                                                                 
|Accounts Payable                                                                                                                    
|Due Related Party - Note 5                                                                                                          
|Total Current Liabilities                                                                                                           
|Total Liabilities                                                                                                                   
|                                                                                                                                    
|Stockholders' Deficit                                                                                                               
|Preferred Stock*1,000,000 shares authorized having a par value of $.001 per share, 1,000,000 shares issued and no shares outstanding
|Common Stock--20,000,000 shares authorized having a par value of $.001 per share; 10,000,000 shares issued and outstanding - Note 3 
|Additional Paid-in Capital                                                                                                          
|Deficit accumulated during the development stage                                                                                    
|Total Stockholders Deficit                                                                                                          
|Total Liabilities and Stockholders' Deficit                                                                                         





Income Report



|Pacific Land and Coffee Corporation                                         
|----------------------------------------------------------------------------
|[A Development Stage Company]                                               
|Statement of Operations                                                     
|For the Periods Ended March 31, 2005 and 2004                               
|and for the Period from Inception [February 14, 2003] Through March 31, 2005
|                                                                            
|Revenues:                                                                   
|Sales                                                                       
|Total Revenues                                                              
|Cost of Sales                                                               
|                                                                            
|Gross Profit                                                                
|                                                                            
|General & Administrative Expenses                                           
|                                                                            
|Net Loss From Operations                                                    
|                                                                            
|Other Income (Expense):                                                     
|Interest Expense                                                            
|Total Other Income (Expense)                                                
|                                                                            
|Net Loss                                                                    
|                                                                            
|Net Loss Per Share                                                          
|                                                                            
|Weighted Average Shares Outstanding - Note 1                                





Stockholders' Equity Report



|Pacific Land and Coffee Corporation                                                                                           
|------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                 
|Statement of Stockholders' Equity (Deficit)                                                                                   
|For the Periods Ended March 31, 2005 and 2004                                                                                 
|and from Inception [February 14, 2003] Through March 31, 2005                                                                 
|                                                                                                                              
|                                                                                                                              
|Balance, February 14, 2003                                                                                                    
|Shares issued to initial stockholders for cash at inception at approximately $1.00 per share                                  
|Contributed Capital-Corporate Organization and Start-up Costs, at Inception, Services and Costs at Estimated Fair Market Value
|Net Loss From February 14, 2003(Inception) to March 31, 2003                                                                  
|Balance, March 31, 2003                                                                                                       
|Change in Outstanding Shares From a Recapitalization of the Company                                                           
|Cash Contributed For Working Capital                                                                                          
|Net Loss for Year Ended March 31, 2004                                                                                        
|Balance, March 31, 2004                                                                                                       
|Net Loss for Year Ended March 31, 2005                                                                                        
|Balance, March 31, 2005                                                                                                       





Sheet1



|Description                                   | NOL Balance | Tax | Rate 
|--------------------------------------------- | ----------- | --- | -----
|Beginning Balance, April 1, 2004              | 2,371       |     | 356  
|Current Year Net Loss                         | 6,695       |     | 1,004
|Ending Balance, March 31, 2005                | 9,066       |     | 1,360
|Valuation Allowance                           | (1,360)     |     |      
|Deferred Tax Asset                            | -           |     |      
|                                              |             |     |      
|                                              |             |     |      
|Expected Provision [Based on Statutory Rates] | $(1,004)   
|Increase / (Decrease) in Valuation Allowance  | 1,004      
|Provision for Income Taxes                    | $-         





Cashflow Report



|Pacific Land and Coffee Corporation                                                          
|---------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                
|Statements of Cash Flows                                                                     
|For the Periods Ended March 31, 2005 and 2004                                                
|and from Inception [February 14, 2003] Through March 31, 2005                                
|                                                                                             
|                                                                                             
|Cash Flows from Operating Activities                                                         
|Net Loss                                                                                     
|Adjustments to reconcile net loss to net cash provided by operating activities               
|Contributed Capital-noncash fair market value of start-up and organization services and costs
|Increase in accounts  payable                                                                
|Net Cash Used for Operating Activities                                                       
|                                                                                             
|Cash Flow from Financing Activities:                                                         
|Proceeds from the sale of stock/contributed cash                                             
|Loan from related party                                                                      
|Net Cash provided by Financing activities                                                    
|                                                                                             
|Net Increase (Decrease) in Cash                                                              
|                                                                                             
|Beginning Cash Balance                                                                       
|                                                                                             
|Ending Cash Balance                                                                          
|                                                                                             
|Supplemental Disclosure of Cash Flow Information:                                            
|Cash paid during the year for interest                                                       
|Cash paid during the year for income taxes                                                   























See accompanying notes to financial statements



5











PACIFIC LAND AND COFFEE CORPORATION

[A Development Stage Company]

Notes to Financial Statements

March 31, 2005



Note 1

Organization and Summary of Significant Accounting Policies



(a) Organization



Pacific Land and Coffee Corporation (the Company) was organized under the laws of the State of Hawaii on February 14, 2003 and has elected a fiscal year end of March 31st. The Company was organized for the purpose of the research and development of tropical plantation plants, to own and sell real and personal property and to sell products. Currently selling coffee and/or coffee related products.



On May 20, 2004, the Company combined with Back Channel Investments, Inc., in a reverse merger pursuant to an Agreement and Plan of Reorganization.  Back Channel acquired all the outstanding shares of common stock of the Company in exchange for 7,000,000 shares of Back Channels common stock.  The surviving entity is Pacific Land and Coffee Corporation.  Upon completion of the agreement, the combined Company essentially re-capitalized to have 10,000,000 shares outstanding.  No change in net book value or goodwill was recognized.  The pre-merger financial statements of Pacific Land and Coffee are now the historical financial statements of the Combined Company.



The Company is considered a development stage company as defined in Statement of Financial Accounting Standards No. 7.  The Company has at the present time, not paid any dividends and any dividends that may be paid in the future will depend upon the financial requirements of the Company and other relevant factors.



(b) Income Taxes



The Company applies the provisions of Statement of Financial Accounting Standards No. 109 [the Statement], Accounting for Income Taxes.  The Statement requires an asset and liability approach for financial accounting and reporting for income taxes, and the recognition of deferred tax assets and liabilities for the temporary differences between the financial reporting basis and tax basis of the Companys assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. Due to a loss from inception, the Company has no tax liability.  At this time the Company has no deferred taxes arising from temporary differences between income for financial reporting and income tax purposes.



(c) Net Loss Per Common Share



Loss per common share is based on the weighted-average number of shares outstanding.  There are no common stock equivalents outstanding, thus, basic and diluted loss per share calculations are the same.













PACIFIC LAND AND COFFEE CORPORATION

[A Development Stage Company]

Notes to Financial Statements

March 31, 2005



Note 1

Organization and Summary of Significant Accounting Policies[continued]



(d) Cash and Cash Equivalents



For purposes of the statement of cash flows, the Company considers all highly liquid debt Instruments purchased with a maturity of three months or less to be cash equivalents. During the period ending March 31, 2005 the Company did not have non-cash investing or financing activities.



(e) Use of Estimates in Preparation of Financial Statements



The preparation of financial statements in conformity with U. S. generally accepted accounting principles 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.



(f) Revenue Recognition



The Company recognizes revenues in accordance with the Securities and Exchange Commission, Staff Accounting Bulletin (SAB) number 101, Revenue Recognition in Financial Statements.  SAB 101 clarifies application of U. S. generally accepted accounting principles to revenue transactions.



To date, the Company has recognized revenue primarily from sales to one customer.  Revenue on coffee and accessory sales is recognized as products are delivered to the customer or retailer.  That is, the arrangements of the sale are documented, the product is delivered to the customer or the retailer, the pricing becomes final, and collectibility is reasonably assured.  The Company may also recognize revenue from brokered coffee sales.  This revenue is recognized when the transaction is complete and based on the contract.  Brokered coffee sales shall be recorded as the net commission recognizable to the Company.  To date, no brokered revenue has been recognized.



The Company records accounts receivable for sales which have been delivered but for which money has not been collected.  The balance uncollected as of March 31, 2005 was $0.  For customer purchases paid in advance, the Company records a liability until products are shipped.  There was no outstanding unearned revenue from product sales as of March 31, 2005.





7













PACIFIC LAND AND COFFEE CORPORATION

[A Development Stage Company]

Notes to Financial Statements

March 31, 2005



Note 2

Going Concern



The Company has limited operating capital with limited revenue from operations.  Realization of a major portion of the assets is dependent upon the Companys ability to meet its future financing requirements, and the success of future operations. These factors raise substantial doubt about the Companys ability to continue as a going concern. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.



Note 3

Common Stock



The Company at inception issued 1,000 shares of common stock to two initial stockholders at approximately $1.00 per share for a total amount of $1,002.



On May 20, 2004, the Company combined with Back Channel Investments, Inc., in a reverse merge pursuant to an Agreement and Plan of Reorganization.  Bank Channel acquired all of the outstanding shares of common stock of the Company in exchange for 7,000,000 shares of Back Channels common stock. Prior to the combination, Back Channel had 1,000,000 shares of common stock outstanding which were forward split on the basis of three for one.  The surviving entity is Pacific Land and Coffee Corporation.  Upon completion of the agreement, the combined Company essentially re-capitalized to have 10,000,000 shares outstanding.



The company has filed a registration statement with the Securities and Exchange Commission on Form SB-2.  The offering includes 3,000,000 shares of common stock of Pacific Land & Coffee Corporation, which are offered by the selling stockholders.  The expenses of the offering shall be paid by Pacific Land and Coffee.  Pacific Land and Coffee will not receive any proceeds from the sale of the selling stockholders.  Certain of the selling stockholders which were promoters or affiliates of Pacific Land and Coffee are deemed underwriters.



Note 4

Income Taxes



Below is a summary of deferred tax asset calculations on net operating loss carry forward amounts.  Loss carry forward amounts expire in 2025.  Currently there is no reasonable assurance that the Company will be able to take advantage of a deferred tax asset, thus, an offsetting allowance has been established for the deferred asset.



















PACIFIC LAND AND COFFEE CORPORATION

[A Development Stage Company]

Notes to Financial Statements

March 31, 2005

Note 4

Income Taxes [Continued]







Balance Sheet



|Pacific Land and Coffee Corporation      
|-----------------------------------------
|[A Development Stage Company]            
|Balance Sheet                            
|March 31, 2005 and 2004                  
|Assets                                   
|                                         
|Current Assets                           
|Cash                                     
|Total Current Assets                     
|Total Assets                             
|                                         
|Liabilities and Stockholders' Equity     
|Current Liabilites                       
|Accounts Payable                         
|Note Payable - Related Party             
|Accrued Interest - Related Party         
|Total Current Liabilities                
|Total Liabilities                        
|                                         
|Stockholders' Equity                     
|Common Stock                             
|Additional Paid in Capital               
|Retained Earnings                        
|Total Stockholders Equity                
|Total Liabilities and Stockholers' Equity





Income



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Operations                    
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Revenues:                                  
|Sales                                      
|Total Revenues                             
|Cost of Sales                              
|                                           
|Gross Profit                               
|Expenses                                   
|Bank Charges                               
|Taxes                                      
|Legal and Professional                     
|Offering Costs                             
|Office Expense                             
|Franchise Tax                              
|Total Expenses                             
|Net Loss From Operations                   
|                                           
|Other Income (Expense):                    
|Interest Expense                           
|Total Other Income (Expense)               
|                                           
|Net Income                                 





Stockholders' Equity



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Stockholders' Equity          
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Beginning Stockholders' Equity             
|Net Income                                 
|Ending Members' Equity                     





Balance Sheet Report



|Pacific Land and Coffee Corporation                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                       
|Balance Sheet                                                                                                                       
|March 31, 2005                                                                                                                      
|Assets                                                                                                                              
|Current Assets                                                                                                                      
|Cash in Bank                                                                                                                        
|Total Current Assets                                                                                                                
|Total Assets                                                                                                                        
|                                                                                                                                    
|Liabilities and Stockholders' Deficit                                                                                               
|Current Liabilities                                                                                                                 
|Accounts Payable                                                                                                                    
|Due Related Party - Note 5                                                                                                          
|Total Current Liabilities                                                                                                           
|Total Liabilities                                                                                                                   
|                                                                                                                                    
|Stockholders' Deficit                                                                                                               
|Preferred Stock*1,000,000 shares authorized having a par value of $.001 per share, 1,000,000 shares issued and no shares outstanding
|Common Stock--20,000,000 shares authorized having a par value of $.001 per share; 10,000,000 shares issued and outstanding - Note 3 
|Additional Paid-in Capital                                                                                                          
|Deficit accumulated during the development stage                                                                                    
|Total Stockholders Deficit                                                                                                          
|Total Liabilities and Stockholders' Deficit                                                                                         





Income Report



|Pacific Land and Coffee Corporation                                         
|----------------------------------------------------------------------------
|[A Development Stage Company]                                               
|Statement of Operations                                                     
|For the Periods Ended March 31, 2005 and 2004                               
|and for the Period from Inception [February 14, 2003] Through March 31, 2005
|                                                                            
|Revenues:                                                                   
|Sales                                                                       
|Total Revenues                                                              
|Cost of Sales                                                               
|                                                                            
|Gross Profit                                                                
|                                                                            
|General & Administrative Expenses                                           
|                                                                            
|Net Loss From Operations                                                    
|                                                                            
|Other Income (Expense):                                                     
|Interest Expense                                                            
|Total Other Income (Expense)                                                
|                                                                            
|Net Loss                                                                    
|                                                                            
|Net Loss Per Share                                                          
|                                                                            
|Weighted Average Shares Outstanding - Note 1                                





Stockholders' Equity Report



|Pacific Land and Coffee Corporation                                                                                           
|------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                 
|Statement of Stockholders' Equity (Deficit)                                                                                   
|For the Periods Ended March 31, 2005 and 2004                                                                                 
|and from Inception [February 14, 2003] Through March 31, 2005                                                                 
|                                                                                                                              
|                                                                                                                              
|Balance, February 14, 2003                                                                                                    
|Shares issued to initial stockholders for cash at inception at approximately $1.00 per share                                  
|Contributed Capital-Corporate Organization and Start-up Costs, at Inception, Services and Costs at Estimated Fair Market Value
|Net Loss From February 14, 2003(Inception) to March 31, 2003                                                                  
|Balance, March 31, 2003                                                                                                       
|Change in Outstanding Shares From a Recapitalization of the Company                                                           
|Cash Contributed For Working Capital                                                                                          
|Net Loss for Year Ended March 31, 2004                                                                                        
|Balance, March 31, 2004                                                                                                       
|Net Loss for Year Ended March 31, 2005                                                                                        
|Balance, March 31, 2005                                                                                                       





Sheet1



|Description                                   | NOL Balance | Tax | Rate 
|--------------------------------------------- | ----------- | --- | -----
|Beginning Balance, April 1, 2004              | 2,371       |     | 356  
|Current Year Net Loss                         | 6,695       |     | 1,004
|Ending Balance, March 31, 2005                | 9,066       |     | 1,360
|Valuation Allowance                           | (1,360)     |     |      
|Deferred Tax Asset                            | -           |     |      
|                                              |             |     |      
|                                              |             |     |      
|Expected Provision [Based on Statutory Rates] | $(1,004)   
|Increase / (Decrease) in Valuation Allowance  | 1,004      
|Provision for Income Taxes                    | $-         





Cashflow Report



|Pacific Land and Coffee Corporation                                                          
|---------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                
|Statements of Cash Flows                                                                     
|For the Periods Ended March 31, 2005 and 2004                                                
|and from Inception [February 14, 2003] Through March 31, 2005                                
|                                                                                             
|                                                                                             
|Cash Flows from Operating Activities                                                         
|Net Loss                                                                                     
|Adjustments to reconcile net loss to net cash provided by operating activities               
|Contributed Capital-noncash fair market value of start-up and organization services and costs
|Increase in accounts  payable                                                                
|Net Cash Used for Operating Activities                                                       
|                                                                                             
|Cash Flow from Financing Activities:                                                         
|Proceeds from the sale of stock/contributed cash                                             
|Loan from related party                                                                      
|Net Cash provided by Financing activities                                                    
|                                                                                             
|Net Increase (Decrease) in Cash                                                              
|                                                                                             
|Beginning Cash Balance                                                                       
|                                                                                             
|Ending Cash Balance                                                                          
|                                                                                             
|Supplemental Disclosure of Cash Flow Information:                                            
|Cash paid during the year for interest                                                       
|Cash paid during the year for income taxes                                                   



The allowance has increased $1,004 from $356 as of March 31, 2004.



Reconciliation between income taxes at the statutory rate (15%) and the actual income tax provision for continuing operations follows:







Balance Sheet



|Pacific Land and Coffee Corporation      
|-----------------------------------------
|[A Development Stage Company]            
|Balance Sheet                            
|March 31, 2005 and 2004                  
|Assets                                   
|                                         
|Current Assets                           
|Cash                                     
|Total Current Assets                     
|Total Assets                             
|                                         
|Liabilities and Stockholders' Equity     
|Current Liabilites                       
|Accounts Payable                         
|Note Payable - Related Party             
|Accrued Interest - Related Party         
|Total Current Liabilities                
|Total Liabilities                        
|                                         
|Stockholders' Equity                     
|Common Stock                             
|Additional Paid in Capital               
|Retained Earnings                        
|Total Stockholders Equity                
|Total Liabilities and Stockholers' Equity





Income



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Operations                    
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Revenues:                                  
|Sales                                      
|Total Revenues                             
|Cost of Sales                              
|                                           
|Gross Profit                               
|Expenses                                   
|Bank Charges                               
|Taxes                                      
|Legal and Professional                     
|Offering Costs                             
|Office Expense                             
|Franchise Tax                              
|Total Expenses                             
|Net Loss From Operations                   
|                                           
|Other Income (Expense):                    
|Interest Expense                           
|Total Other Income (Expense)               
|                                           
|Net Income                                 





Stockholders' Equity



|Pacific Land and Coffee Corporation        
|-------------------------------------------
|[A Development Stage Company]              
|Statement of Stockholders' Equity          
|For the Years Ended March 31, 2005 and 2004
|                                           
|                                           
|Beginning Stockholders' Equity             
|Net Income                                 
|Ending Members' Equity                     





Balance Sheet Report



|Pacific Land and Coffee Corporation                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                       
|Balance Sheet                                                                                                                       
|March 31, 2005                                                                                                                      
|Assets                                                                                                                              
|Current Assets                                                                                                                      
|Cash in Bank                                                                                                                        
|Total Current Assets                                                                                                                
|Total Assets                                                                                                                        
|                                                                                                                                    
|Liabilities and Stockholders' Deficit                                                                                               
|Current Liabilities                                                                                                                 
|Accounts Payable                                                                                                                    
|Due Related Party - Note 5                                                                                                          
|Total Current Liabilities                                                                                                           
|Total Liabilities                                                                                                                   
|                                                                                                                                    
|Stockholders' Deficit                                                                                                               
|Preferred Stock*1,000,000 shares authorized having a par value of $.001 per share, 1,000,000 shares issued and no shares outstanding
|Common Stock--20,000,000 shares authorized having a par value of $.001 per share; 10,000,000 shares issued and outstanding - Note 3 
|Additional Paid-in Capital                                                                                                          
|Deficit accumulated during the development stage                                                                                    
|Total Stockholders Deficit                                                                                                          
|Total Liabilities and Stockholders' Deficit                                                                                         





Income Report



|Pacific Land and Coffee Corporation                                         
|----------------------------------------------------------------------------
|[A Development Stage Company]                                               
|Statement of Operations                                                     
|For the Periods Ended March 31, 2005 and 2004                               
|and for the Period from Inception [February 14, 2003] Through March 31, 2005
|                                                                            
|Revenues:                                                                   
|Sales                                                                       
|Total Revenues                                                              
|Cost of Sales                                                               
|                                                                            
|Gross Profit                                                                
|                                                                            
|General & Administrative Expenses                                           
|                                                                            
|Net Loss From Operations                                                    
|                                                                            
|Other Income (Expense):                                                     
|Interest Expense                                                            
|Total Other Income (Expense)                                                
|                                                                            
|Net Loss                                                                    
|                                                                            
|Net Loss Per Share                                                          
|                                                                            
|Weighted Average Shares Outstanding - Note 1                                





Stockholders' Equity Report



|Pacific Land and Coffee Corporation                                                                                           
|------------------------------------------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                                                 
|Statement of Stockholders' Equity (Deficit)                                                                                   
|For the Periods Ended March 31, 2005 and 2004                                                                                 
|and from Inception [February 14, 2003] Through March 31, 2005                                                                 
|                                                                                                                              
|                                                                                                                              
|Balance, February 14, 2003                                                                                                    
|Shares issued to initial stockholders for cash at inception at approximately $1.00 per share                                  
|Contributed Capital-Corporate Organization and Start-up Costs, at Inception, Services and Costs at Estimated Fair Market Value
|Net Loss From February 14, 2003(Inception) to March 31, 2003                                                                  
|Balance, March 31, 2003                                                                                                       
|Change in Outstanding Shares From a Recapitalization of the Company                                                           
|Cash Contributed For Working Capital                                                                                          
|Net Loss for Year Ended March 31, 2004                                                                                        
|Balance, March 31, 2004                                                                                                       
|Net Loss for Year Ended March 31, 2005                                                                                        
|Balance, March 31, 2005                                                                                                       





Sheet1



|Description                                   | NOL Balance | Tax | Rate 
|--------------------------------------------- | ----------- | --- | -----
|Beginning Balance, April 1, 2004              | 2,371       |     | 356  
|Current Year Net Loss                         | 6,695       |     | 1,004
|Ending Balance, March 31, 2005                | 9,066       |     | 1,360
|Valuation Allowance                           | (1,360)     |     |      
|Deferred Tax Asset                            | -           |     |      
|                                              |             |     |      
|                                              |             |     |      
|Expected Provision [Based on Statutory Rates] | $(1,004)   
|Increase / (Decrease) in Valuation Allowance  | 1,004      
|Provision for Income Taxes                    | $-         





Cashflow Report



|Pacific Land and Coffee Corporation                                                          
|---------------------------------------------------------------------------------------------
|[A Development Stage Company]                                                                
|Statements of Cash Flows                                                                     
|For the Periods Ended March 31, 2005 and 2004                                                
|and from Inception [February 14, 2003] Through March 31, 2005                                
|                                                                                             
|                                                                                             
|Cash Flows from Operating Activities                                                         
|Net Loss                                                                                     
|Adjustments to reconcile net loss to net cash provided by operating activities               
|Contributed Capital-noncash fair market value of start-up and organization services and costs
|Increase in accounts  payable                                                                
|Net Cash Used for Operating Activities                                                       
|                                                                                             
|Cash Flow from Financing Activities:                                                         
|Proceeds from the sale of stock/contributed cash                                             
|Loan from related party                                                                      
|Net Cash provided by Financing activities                                                    
|                                                                                             
|Net Increase (Decrease) in Cash                                                              
|                                                                                             
|Beginning Cash Balance                                                                       
|                                                                                             
|Ending Cash Balance                                                                          
|                                                                                             
|Supplemental Disclosure of Cash Flow Information:                                            
|Cash paid during the year for interest                                                       
|Cash paid during the year for income taxes                                                   







Note 5

Related Party Transactions



An officer of the Company is providing a mailing address to the Company without charge.  This service has been determined by the Company to have only nominal value.  As of March 31, 2005 no compensation has been paid or accrued to any officers or directors of the Corporation.



An officer and director of the Company prepared initial corporate documents and forms related to the incorporation of the Company at no cost to the Company.  The fair market value of the start-up and organizational services and costs were estimated to be $1,000.



On November 4, 2004 a related party loaned the company $5,000. The note and interest is due and payable upon demand.  The note bears an interest rate of 8.5% per anum.  As of March 31, 2005, the Company has accrued interest of $172.