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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.



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FORM 10-QSB



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|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------

For the quarterly period ended: June 30, 2005



| ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
|- | ---------------------------------------------------------------

For the transition period from              to

COMMISSION FILE NUMBER 0-29027



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WHITEHALL LIMITED, INC.

(EXACT NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)



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|                                                               |  |                                  
|-------------------------------------------------------------- |  | ---------------------------------
|Florida                                                        |  | 84-1092599                       
|(State or other jurisdiction of incorporation or organization) |  | (IRS Employer Identification No.)

290 Cocoanut Avenue, Sarasota, Florida 34236

Address of principal executive offices

941-954-1181

(Issuers telephone number)

Not applicable

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



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Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.    Yes ̈No  x

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date: 14,222,977

Transitional Small Business Disclosure Format
(check one):    Yes ̈No  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.):    Yes ̈No  x



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TABLE OF CONTENTS



|                             |  |              |  |                                                                                     
|---------------------------- |  | ------------ |  | ------------------------------------------------------------------------------------
|PART I FINANCIAL INFORMATION
|                             |  |             
|                             |  | ITEM 1.      |  | Financial Statements                                                                
|                             |  |             
|                             |  | ITEM 2.      |  | Managements Discussion and Analysis of Financial Condition and Results of Operation
|                             |  |             
|                             |  | ITEM 3.      |  | Controls and Procedures                                                             
|                            
|PART II                     
|                             |  |             
|                             |  | ITEM 1.      |  | Legal Proceedings                                                                   
|                             |  |             
|                             |  | ITEM 2.      |  | Unregistered Sales of Equity Securities and Use of Proceeds                         
|                             |  |             
|                             |  | ITEM 3.      |  | Defaults Upon Senior Securities                                                     
|                             |  |             
|                             |  | ITEM 4.      |  | Submission of Matters to a Vote of Security Holders                                 
|                             |  |             
|                             |  | ITEM 5.      |  | Other Information                                                                   
|                             |  |             
|                             |  | ITEM 6.      |  | Exhibits                                                                            
|                            
|SIGNATURES                  
|                            
|EXHIBIT INDEX               
|                             |  |             
|                             |  | EXHIBIT 31.1 |  |                                                                                     
|                             |  | EXHIBIT 31.2 |  |                                                                                     
|                             |  | EXHIBIT 32.1 |  |                                                                                     
|                             |  | EXHIBIT 32.2 |  |                                                                                     



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##### Table of Contents

Part I

Financial Information

Item 1. Financial Statements

See financial statements beginning on page F-1

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

Form 10-QSB, other than
historical financial information, may consist of forward-looking statements that include risks and uncertainties, including, but not limited to, statements contained in Managements Discussion and Analysis of Financial Condition and
Results of Operations. Such statements are based upon many assumptions and are subject to risks and uncertainties. Actual results could differ materially from the results discussed in the forward-looking statements due to a number of factors,
including, but not limited to, those identified in this document and the Companys other filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update these forward-looking statements.

Overview:

The Company builds quality
homes with custom features at moderate prices. The homes are designed principally for the entry level or moving up home buyers market, as well as the retirement segment of such market. Residences constructed and marketed by the
Company generally range in size from 1,600 to 4,000 square feet and have purchase prices ranging from $190,000 to $1,500,000. In the past, certain of the Companys projects consisted of smaller units and were geared more to the lower-end buyer.
The current focus of the Company is on middle to higher-end homes, including luxury condominiums and townhomes in several upscale developments. The Company markets the residences through commissioned employees and independent real estate brokers in
the Companys market area, which consists of the West Coast of the State of Florida, primarily, Sarasota, Manatee, Collier, Pasco and Hillsborough Counties and more recently, two multi-family developments on the East Coast of Florida.
Residential unit sales are usually conducted from sales offices located in furnished models in each subdivision where the Company is active. The Company also typically constructs a limited number of speculative homes in each residential subdivision
in which it is active in order to enhance marketing and sales activities.

Critical Accounting Policies:

Use of Estimates:

The preparation of
financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect certain reported amounts and disclosures. Actual results could
differ from those estimates.

Revenue Recognition:

Income from sales is recorded when title to the property is conveyed to the buyer subject to the buyers financial commitment being sufficient to provide economic substance to the transaction.

Recent Accounting Policies:

In May 2004,
the FASB issued Statement of Financial Accounting Standards No. 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (SFAS 150). SFAS 150 establishes standards for how an
issuer classifies and measures certain financial instruments with characteristics of both liabilities and equity. SFAS 150 was effective for interim periods beginning after June 15, 2004. The Company has determined the adoption of this new
accounting pronouncement did not have a material impact on the financial statements of the Company.



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In December 2004, the FASB issued SFAS No. 123(R), Accounting for Stock-Based Compensation (SFAS
123(R)). SFAS 123(R) establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. SFAS 123 (R) focuses primarily on accounting for transactions in which an entity
obtains employee services in share-based payment transactions. SFAS 123(R) requires that the fair value of such equity instruments be recognized as expense in the historical financial statements as services are performed, which will usually be the
vesting period. SFAS 123(R) shall be effective for public entities that file as small business issuers as of the beginning of the first interim or annual reporting period that begins after December 15, 2005. The Company has determined the
adoption of this new accounting pronouncement is not expected to have a material impact on the financial statements of the Company.

Results of
Operations:

Results of operations for the three months ended June 30, 2005 as compared to the three months ended June 30, 2004 were as
follows:

Revenues:

Home and Lot Sales:

The Companys home and lot sales decreased by approximately $6,399,000 to approximately $8,919,000 for
the three months ended June 30, 2005 as compared to approximately $15,318,000 for the three months ended June 30, 2004. The decrease in revenues is primarily attributable to the type of project we are currently developing and the cyclical
nature of these projects.

During the three month period ended June 30, 2005, the Company closed 21 homes and lots as compared to 48
homes and lots in the three month period ended June 30, 2004. However, during the three month period ended June 30, 2005, the average selling price of the homes closed increased to $366,000 as compared to $280,000 for the three month
period ended June 30, 2004. Lot sales during this period generated approximately $1,227,000 in revenues as compared to lot sales aggregating approximately $1,877,000 during the three months ended June 30, 2004. Although the revenues for
lot sales increased, the average selling price of those lots declined to $72,000 as compared to $57,000 for the three month period ending June 30, 2004.

Costs and expenses:

Cost of sales:

Cost of sales decreased by approximately $4,494,000 to approximately $7,597,000 for the three months ended June 30, 2005 as compared to
approximately $12,091,000 for the three months ended June 30, 2004. The cost as a percent of sales approximated 85% and 79% for the three months ended June 30, 2005 and June 30, 2004, respectively. Total cost of sales has increased
due to closing larger and more expensive homes than in the prior year. However, the cost of sales as a percent of sales has increased due to the product mix of the homes sold in the quarter. A major community under development, Miramar at Lakewood
Ranch, experienced its first 4 closings in the first quarter of fiscal 2006. These first closings exhibited a lower than average margin due to the additional costs associated with start-up of the development, as well as lower prices points for
initial units offered as incentives to purchase. In the other multi-family project currently under development, 8 units at Edgewater Moorings were closed in the first quarter of fiscal 2005, all of which 4 were lower priced and lower margin park
homes. The remaining 9 closings represented single family homes. The margins on the premium lake multi-family units are significantly better than either the multi-family park homes or other developments involving single-family units.



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Selling, general and administrative:

Selling, general and administrative costs decreased by approximately $486,000 to approximately $1,357,000 for the three months ended June 30, 2005
as compared to approximately $1,843,000 for the three months ended June 30, 2004. General and administrative costs increased approximately $270,000 for the three months ended June 30, 2005 as compared to the three months ended
June 30, 2004. This increase was primarily the result of increased payroll, a steep increase in healthcare, and other insurance costs. Selling expenses decreased approximately $756,000 during the same period primarily due to reductions in the
sales force as communities sold out, eliminating the requirements for on-site sales staff and model homes.

Interest:

Interest expense increased for the three months ended June 30, 2005 as compared to the three months ended June 30, 2004 by approximately
$3,000. Total debt outstanding has increased for the period. However when compared to that of the prior year, the majority of the debt for the current period relates to projects under development. As a result, most of the interest expense for the
period is capitalized rather than expensed.

Income (loss) from operations:

As a result of the aforementioned, the Companys income (loss) from operations for the three months ended June 30, 2005 was approximately
$(71,000) as compared to approximately $1,398,000 for the comparable prior quarter. However, approximately $(149,000) of income (loss) during the three months ended June 30, 2003 and approximately $856,000 of income during the three months
ended June 30, 2003 was applicable to the interest of our joint venture partners.

Net Income (loss):

As a result of the aforementioned, the Company recognized income (loss) after taxes and allocation of income to the joint venture partners of
approximately $(220,000), or $(0.02) per share, and $336,000, or $0.02 per share, for the three months ended June 30, 2005 and 2004, respectively.

Liquidity and Capital Resources:

As of June 30, 2005, the Company had net assets of approximately $6,046,000 including cash and cash
equivalents of approximately $1,616,000. During the three months ended June 30, 2005, the Companys cash position decreased by approximately $941,000. Its operating activities used approximately $5,516,000 of cash. This was primarily
related to the increase in inventories of approximately $6,530,000 for homes closed in the period, an increase of approximately $1,978,000 in customer deposits and advances, loss applicable to the interest of joint venture partners of approximately
($149,000), and loss from operations of approximately ($220,000), offset by a decrease of approximately $702,000 in accounts payable and accrued expenses. In addition, our investing activities utilized approximately $46,000 of cash for the purchase
of property and equipment. The Companys financing activities provided approximately $4,622,000 of cash principally through proceeds of its mortgages and notes payable of approximately $10,637,000 offset by the repayments of its mortgages and
notes payable of approximately $6,015,000. The Companys principal source of financing has historically been construction financing which is based on the value of the underlying projects. The Company has additional committed bank lines of
credit of approximately $27,200,000 to finance projects currently under development.



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As a result of the cyclical nature of the projects we are currently developing, and the delays caused by the hurricanes,
the Company continues to maintain a significant backlog of homes expected to be delivered in the current and next two fiscal years. As of June 30, 2005, contracts are in place for closing 373 homes and lots, of which 248 are scheduled to close
in the current fiscal year. The anticipated revenue associated with these contracts totals approximately $132,226,000, of which approximately $87,306,000 is associated with units scheduled to close in the fiscal year ending March 31, 2006, and
the remaining approximately $44,919,000 is associated with the 125 units scheduled to close in the fiscal years ending March 31, 2006 and 2007. The table below summarizes the contracts and associated revenue in place as of June 30, 2005:

Whitehall Quality Homes, Inc.

Backlog as of June 30, 2005



|                                |  |                     |  |                      |             |                        |     |                                    |   |            |  |     |  |   |           
|------------------------------- |  | ------------------- |  | -------------------- | ----------- | ---------------------- | --- | ---------------------------------- | - | ---------- |  | --- |  | - | ----------
|                                |  | UnitsUnder Contract |  | Contract Price Total |             | To Close As of 3/31/06 |     | To Close As of 3/31/07 and 3/31/08
|Project                         |  |                     |  | Units                |             | $                      |     | Units                              |   | $         
|Calumet Reserve at Lely Resort  |  | 1                   |  | $                    | 336,023     |                        | 1   |                                    | $ | 336,023    |  |    |  | $ |          
|Ancient Oaks                    |  | 28                  |  | $                    | 7,811,705   |                        | 23  |                                    | $ | 6,428,654  |  | 5   |  | $ | 1,383,051 
|Heron Creek Golf & Country Club |  | 9                   |  | $                    | 3,397,909   |                        | 9   |                                    | $ | 3,397,909  |  |    |  | $ |          
|Lake Jovita                     |  | 1                   |  | $                    | 385,816     |                        |    |                                    | $ |           |  | 1   |  | $ | 385,816   
|Waterchase                      |  | 20                  |  | $                    | 7,365,067   |                        | 18  |                                    | $ | 6,563,490  |  | 2   |  | $ | 801,577   
|Shadowmoss                      |  | 59                  |  | $                    | 9,475,173   |                        | 24  |                                    | $ | 3,359,200  |  | 35  |  | $ | 6,115,973 
|Cayo Costa                      |  | 19                  |  | $                    | 5,886,454   |                        | 9   |                                    | $ | 2,713,067  |  | 10  |  | $ | 3,173,387 
|Miramar at Lakewood Ranch       |  | 131                 |  | $                    | 49,056,612  |                        | 86  |                                    | $ | 31,160,145 |  | 45  |  | $ | 17,896,467
|Porto Romano                    |  | 27                  |  | $                    | 15,163,261  |                        |    |                                    | $ |           |  | 27  |  | $ | 15,163,261
|The Moorings at Lakewood Ranch  |  | 32                  |  | $                    | 14,662,456  |                        | 32  |                                    | $ | 14,662,456 |  |    |  | $ |          
|Grand Haven                     |  | 46                  |  | $                    | 18,685,300  |                        | 46  |                                    | $ | 18,685,300 |  |    |  | $ |          
|                                |  |                     |  |                      |             |                        |     |                                    |   |            |  |     |  |   |           
|                                |  | 373                 |  | $                    | 132,225,776 |                        | 248 |                                    | $ | 87,306,244 |  | 125 |  | $ | 44,919,532
|                                |  |                     |  |                      |             |                        |     |                                    |   |            |  |     |  |   |           

Item 3. Controls and Procedures

Under the supervision and with the participation of our management, including our
principal executive officer and principal financial officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a- 15 as of the end of the period covered by this
quarterly report. Based upon their evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are effective in timely alerting them to material information relating to us
(including our consolidated subsidiaries) required to be included in our periodic SEC filings.

During the three-month period ended June 30, 2005,
there was no change in the Companys internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting.



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##### Table of Contents

Part II

Other Information

Item 1. Legal Proceedings

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits

(a) Exhibits.

31.1 Certification of the President and Chief Executive Officer

31.2 Certification of the Chief Financial
Officer

32.1 Certificate of the President and Chief Executive Officer pursuant to 18 U.S.C. § 1350.

32.2 Certificate of the Chief Financial Officer pursuant to 18 U.S.C. § 1350.



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SIGNATURES

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



|                  |  |                              
|----------------- |  | -----------------------------
|                  |  | Whitehall Limited, Inc.      
|                  | 
|September 1, 2006 |  | /s/ Ronald Mustari           
|                  |  | Ronald Mustari, President and
|                  |  | Chief Executive Officer      
|                  |  | (Principal Executive Officer)



|                  |  |                                             
|----------------- |  | --------------------------------------------
|September 1, 2006 |  | /s/ Kay Carter                              
|                  |  | Kay Carter, Treasurer and                   
|                  |  | Chief Financial Officer                     
|                  |  | (Principal Financial and Accounting Officer)



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WHITEHALL LIMITED, INC. AND SUBSIDIARIES

INDEX



|                                                                                                      |  |     
|----------------------------------------------------------------------------------------------------- |  | ----
|                                                                                                      |  | PAGE
|CONDENSED CONSOLIDATED BALANCE SHEET JUNE 30, 2005 (UNAUDITED)                                        |  | F-2 
|                                                                                                      | 
|CONDENSED CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED JUNE 30, 2005 AND 2004 (UNAUDITED)     |  | F-3 
|                                                                                                      | 
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED JUNE 30, 2005 AND 2004 (UNAUDITED) |  | F-4 
|                                                                                                      | 
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                                      |  | F-5 



F-1



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WHITEHALL LIMITED, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

June 30, 2005



|                                                                     |  |   |            |  
|-------------------------------------------------------------------- |  | - | ---------- | -
|ASSETS                                                               |  |   |            |  
|Cash and cash equivalents                                            |  | $ | 1,615,822  |  
|Inventories                                                          |  |   | 55,869,405 |  
|Property and equipment, net                                          |  |   | 461,537    |  
|Other assets                                                         |  |   | 510,335    |  
|                                                                     |  |   |            |  
|Total                                                                |  | $ | 58,457,099 |  
|                                                                     |  |   |            |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                 |  |   |            |  
|Liabilities:                                                         |  |   |            |  
|Mortgages and notes payable                                          |  | $ | 33,589,521 |  
|Notes payable - related party                                        |  |   | 840,854    |  
|Accounts payable and accrued expenses                                |  |   | 5,761,749  |  
|Customer deposits and advances                                       |  |   | 12,219,041 |  
|                                                                     |  |   |            |  
|Total liabilities                                                    |  |   | 52,411,165 |  
|                                                                     |  |   |            |  
|Interest of joint venture partners                                   |  |   | 3,536,407  |  
|                                                                     |  |   |            |  
|Commitments and contingencies                                        |  |   |            |  
|                                                                     | 
|Stockholders equity:                                                |  |   |            |  
|Preferred stock                                                      |  |   |            |  
|Series A, $.10 par value; 100,000,000 shares authorized; none issued |  |   |            |  
|Series B, $.10 par value; 2,500,000 shares authorized; none issued   |  |   |            |  
|Common stock, $.10 par value; 500,000,000 shares authorized;         |  |   |            |  
|14,222,977 shares issued and outstanding                             |  |   | 1,422,298  |  
|Additional paid-in capital                                           |  |   | (242,539   | )
|Retained earnings                                                    |  |   | 1,329,768  |  
|                                                                     |  |   |            |  
|Total stockholders equity                                           |  |   | 6,045,934  |  
|                                                                     |  |   |            |  
|Total                                                                |  | $ | 58,457,099 |  
|                                                                     |  |   |            |  

See Notes to Condensed Consolidated Financial Statements



F-2



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WHITEHALL LIMITED, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2005 AND 2004

(UNAUDITED)



|                                                              |  |      |            |   |      |   |           
|------------------------------------------------------------- |  | ---- | ---------- | - | ---- | - | ----------
|                                                              |  | 2005 |            |   | 2004
|Revenue:                                                      |  |      |            |   |      |   |           
|Home and lot sales                                            |  | $    | 8,919,398  |   |      | $ | 15,317,755
|Other                                                         |  |      | 9,755      |   |      |   | 57,168    
|                                                              |  |      |            |   |      |   |           
|Totals                                                        |  |      | 8,929,153  |   |      |   | 15,374,923
|                                                              |  |      |            |   |      |   |           
|Costs and expenses:                                           |  |      |            |   |      |   |           
|Cost of sales                                                 |  |      | 7,597,338  |   |      |   | 12,090,866
|Selling                                                       |  |      | 641,687    |   |      |   | 1,398,255 
|General and administrative                                    |  |      | 715,002    |   |      |   | 444,769   
|Interest                                                      |  |      | 45,784     |   |      |   | 43,467    
|                                                              |  |      |            |   |      |   |           
|Totals                                                        |  |      | 8,999,811  |   |      |   | 13,977,357
|                                                              |  |      |            |   |      |   |           
|Income(loss) from operations                                  |  |      | (70,658    | ) |      |   | 1,397,566 
|                                                              |  |     
|Income(loss) applicable to interest of joint venture partners |  |      | (149,172   | ) |      |   | 855,664   
|                                                              |  |     
|Loss before income taxes                                      |  |      | (219,830   | ) |      |   | 541,902   
|                                                              |  |     
|Provision for income taxes                                    |  |      |           |   |      |   | 205,923   
|                                                              |  |      |            |   |      |   |           
|Net income(loss)                                              |  | $    | (219,830   | ) |      | $ | 335,979   
|                                                              |  |      |            |   |      |   |           
|Basic earnings (loss) per share                               |  | $    | (0.02      | ) |      | $ | 0.02      
|                                                              |  |      |            |   |      |   |           
|Basic weighted average shares outstanding                     |  |      | 14,222,977 |   |      |   | 14,264,552
|                                                              |  |      |            |   |      |   |           

See Notes to Condensed Consolidated Financial Statements



F-3



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WHITEHALL LIMITED, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

THREE MONTHS ENDED JUNE 30, 2005 AND 2004

(UNAUDITED)



|                                                                           |  |      |            |   |      |   |             |  
|-------------------------------------------------------------------------- |  | ---- | ---------- | - | ---- | - | ----------- | -
|                                                                           |  | 2005 |            |   | 2004 |  
|Operating activities:                                                      |  |      |            |   |      |   |             |  
|Net income (loss)                                                          |  | $    | (219,831   | ) |      | $ | 335,979     |  
|Ajustments to reconcile net loss to net cash used in operating activities: |  |      |            |   |      |   |             |  
|Depreciation                                                               |  |      | 4,770      |   |      |   | 12,100      |  
|Income (loss) applicable to interest of joint venture partners             |  |      | (149,172   | ) |      |   | (23,468     | )
|Changes in operating assets and liabilities:                               |  |      |            |   |      |   |             |  
|Inventories                                                                |  |      | (6,530,371 | ) |      |   | 3,923,818   |  
|Other assiets                                                              |  |      | 102,795    |   |      |   | 42,595      |  
|Accounts payable and accrued expenses                                      |  |      | (702,263   | ) |      |   | (1,873,883  | )
|Customer deposits and advances                                             |  |      | 1,977,992  |   |      |   | (1,434,231  | )
|                                                                           |  |      |            |   |      |   |             |  
|Net cash provided by (used in) operating activities                        |  |      | (5,516,080 | ) |      |   | 982,910     |  
|                                                                           |  |      |            |   |      |   |             |  
|Investing activities:                                                      |  |      |            |   |      |   |             |  
|Purchase of property and equipment                                         |  |      | (46,042    | ) |      |   | (19,499     | )
|                                                                           |  |      |            |   |      |   |             |  
|Net cash used in investing activities                                      |  |      | (46,042    | ) |      |   | (19,499     | )
|                                                                           |  |     
|Financing activities:                                                      |  |      |            |   |      |   |             |  
|Distribution to joint venture partners                                     |  |      | (167,211   | ) |      |   |            |  
|Proceeds from mortgages and notes payable                                  |  |      | 10,637,254 |   |      |   | 11,228,295  |  
|Proceeds from (repayments of) notes payable-related party                  |  |      |           |   |      |   | 50,000      |  
|Repaymetns of mortgages and note payable                                   |  |      | (5,848,461 | ) |      |   | (11,702,838 | )
|                                                                           |  |      |            |   |      |   |             |  
|Net cash provided by (used in) financing activities                        |  |      | 4,621,582  |   |      |   | (424,543    | )
|                                                                           |  |      |            |   |      |   |             |  
|Net increase (decrease) in cash and cash equivalents                       |  |      | (940,540   | ) |      |   | 538,868     |  
|                                                                           |  |     
|Cash and cash equivalents, beginning of period                             |  |      | 2,556,362  |   |      |   | 1,905,680   |  
|                                                                           |  |      |            |   |      |   |             |  
|Cash and cash equivalents, end of period                                   |  | $    | 1,615,822  |   |      | $ | 2,444,548   |  
|                                                                           |  |      |            |   |      |   |             |  
|Supplemental disclosure of cash flow data:                                 |  |      |            |   |      |   |             |  
|Interest paid, net of amount capitalized                                   |  | $    | 45,784     |   |      | $ | 43,467      |  
|                                                                           |  |      |            |   |      |   |             |  

See Notes to Condensed Consolidated Financial Statements



F-4



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##### Table of Contents

WHITEHALL LIMITED, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1  Basis of presentation:

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal
recurring adjustments, necessary to present fairly the financial position of Whitehall Limited, Inc. and Subsidiaries (the Company) as of June 30, 2005, their results of operations for the nine and three months ended June 30,
2005 and 2004 and their cash flows for the nine months ended June 30, 2005 and 2004. Pursuant to the rules and regulations of the United States Securities and Exchange Commission (the SEC), certain information and disclosures
normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed in or omitted from these financial statements unless significant changes have taken
place since the end of the most recent fiscal year. Accordingly, these unaudited condensed financial statements should be read in conjunction with the audited financial statements as of and for the year ended March 31, 2004 and the notes
thereto and the other information included in the Companys Annual Report on Form 10-KSB (the Form 10-KSB) for the year ended March 31, 2004 that was previously filed with the SEC.

The results of the Companys operations for the nine and three months ended June 30, 2005 are not necessarily indicative of the results of
operations for the full year ending March 31, 2006.

Significant accounting policies and line of business have not changed from those
described in the 2004 Form 10-KSB.

Note 2  Earnings (loss) per common share:

The Company presents basic earnings (loss) per share and, if appropriate, diluted earnings per share in accordance with the provisions of Statement of
Financial Accounting Standards No. 128, Earnings per Share (SFAS 128). Diluted per share amounts have not been presented in the accompanying unaudited condensed consolidated statements of operations for the nine and
three months ended June 30, 2005 and 2004 because there were no dilutive securities outstanding.



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