| **UNITED STATES****SECURITIES AND EXCHANGE COMMISSION**Washington, DC 20549  **Form 10-QSB                          (Mark one)
[ X ] QUARTERLY    REPORT UNDER SECTION 13 OR 15 (d) OF THE 
SECURITIES    EXCHANGE ACT OF 1934  
For the    quarterly period ended: June 30, 2001  
[  ]    TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE 
SECURITIES    EXCHANGE ACT OF 1934
For    the transition period from ____________ to _____________  
Commission    file number: 0-16179  **Gexa    Corp.
(Exact    name of small business issuer as specified in its charter)** **
Texas
76-0670175
(State or    other jurisdiction of incorporation or organization) 
(IRS Employer    Identification No.)  
24    Greenway Plaza, Suite 1826, Houston, TX**77046
(Address of    principal executive offices)
(Zip Code)  **(713)-961-9399
(Issuer’s    telephone number)   
**Gexa    Gold Corp.**
(Former    Name, former address and former fiscal year, if changed since last report)
Check    whether the issuer (1) filed all reports required to be filed by section 13 or 15 (d) of    the Exchange Act during the past 12 months (or for such shorter period that the registrant    was required to file such report (s), and (2) has been subject to such filing requirements    for the past 90 days. Yes [ ] No [X]
APPLICABLE ONLY TO    CORPORATE ISSUERSState the number of shares outstanding of    each of the issuer’s classes of common equity, as of the latest practicable date:
Common Stock, $.01 par    value 877,957 shares outstanding as of July 23, 2001
Transitional Small Business    Disclosure Format: Yes __ No X** **
 

 

 

 

 

 
**TABLE    OF CONTENTS** **
**PART I. FINANCIAL    INFORMATION**
Page   Item 1. Financial Statements (Unaudited)2Item 2. Management’s Plan of Operation5  **PART II. OTHER    INFORMATION   Item 1. Legal Proceedings6Item 2. Changes in Security6Item 3. Default Upon Senior Securities6Item 4. Submission of Matters to a Vote of    Security Holders6Item 5. Other Information6Item 6. Exhibits and Reports on Form 8-K6** ****PART I FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)**
Set forth below are the financial statements for the Company for thethree month periods ended June 30, 2001 and 2000.

**INDEX    TO FINANCIAL STATEMENTS**
Page
     Balance Sheets June 30, 2001 and December 31, 2000 (Unaudited)2
     Statement of Operations for the Three and Six-Months ended June 30, 2001 and 2000    (Unaudited)3
     Statement of Cash Flow for the Three and Six-Months ended June 30, 2001 and 2000    (Unaudited)4  Notes to Financial    Statements4
 

**GEXA    CORP.**
BALANCE    SHEETS JUNE 30, 2001 AND DECEMBER 31, 2000
     (UNAUDITED)
ASSETS
June    30, 2001
December    31, 2000(Restated)Current Assets:   Cash and cash    equivalents
$202,079
$0     Total    current assets202,0790       Total    Assets
$
202,079
$
0  
LIABILITIES    AND STOCKHOLDERS' EQUITY  Current liabilities:   Notes payable to    stockholders
$200,000$
0     Total    current liabilities200,000
0          Total liabilities200,000
0Stockholders' equity:   Preferred stock,    $.05 par value; 2,500,000 shares   authorized; 0    preferred convertible shares issued and   outstanding at    June 30, 2001 and 944,495 at December 31, 20000
47,225   Common stock, $.01    par value; 75,000,000 shares    authorized;    877,957 shares issued and outstanding at June 30, 2001    and    8,504,425 shares issued and outstanding at December 31, 20008,78085,044   Additional paid-in    capital
139,989
-   Retained earnings    (Accumulated deficit)
(146,690)
(132,269)     Total    stockholders' equity
2,079
0          Total Stockholders' Equity and Liabilities
$
202,079
$
0
See    accompanying notes to financial statements.
 

**GEXA    CORP.**
STATEMENT    OF OPERATIONS FOR THE THREE AND SIX-MONTH PERIOD ENDED JUNE 30, 2001 AND 2000
(UNAUDITED)    Three    Months Ended June 30,
Six Months Ended June 30,20012000
2001
2000Revenues$0$0
$0
$0Operating expense

0   Administrative14,421014,4210Net income (loss)$(14,421)$0
$
(14,421)
$
0Basic net income (loss) per    common share$(0.02)$0.00
$
(0.02)
$
0.00Diluted net income (loss) per    common share$(0.02)$0.00
$
(0.02)
$
0.00Basic weighted average common   shares outstanding773,561340,178595,919340,178Diluted weighted average common       shares outstanding773,561340,178595,919340,178
See    accompanying notes to financial statements.
 

**GEXA    CORP.**
STATEMENT    OF CASH FLOW FOR THE THREE AND SIX-MONTH PERIOD ENDED JUNE 30, 2001 AND 2000
(UNAUDITED)   
Three Months Ended June 30,
Six    Months Ended June 30,20012000
2001
2000Operating activities:   Net income (loss)
$(14,421)
$0
$
(14,421)
$
0          Net cash used in operating activities(14,421)0
(14,421)
0Financing activities:   Proceeds from sale    of common stock50,0000
50,000
0   Proceeds from notes    payable200,0000
200,000
0   Purchase of    corporate rights(33,500)0
(33,500)
0          Net cash provided by financing activities216,5000
216,500
0Net increase in cash and cash    equivalents202,0790
202,079
0Cash and cash equivalents,    beginning of period00
0
0Cash and cash equivalents, end    of period$202,079$0
$
202,079
$
0Supplemental disclosure of cash    flow data:   Interest paid
$0
$0
$
0
$
0   Income taxes paid
$0
$0
$
0
$
0
See    accompanying notes to financial statements.
 

GEXA CORP.
Notes to the Unaudited Financial Statements
 June 30, 2001
1. Basis of Presentation

Gexa Corp., a Texas corporation, is sometimes referred to herein as "we","us", "our" and the "Company". The accompanying unauditedfinancial statements have been prepared in accordance with generally accepted accountingprinciples for interim financial information and with the instructions to Form 10-QSB andRegulation S-B of the Securities and Exchange Commission. Accordingly, they do not includeall of the information and footnotes required by generally accepted accounting principlesfor complete financial statements and should be read in conjunction with Notes toFinancial Statements contained in the Company’s Annual Report on Form 10-KSB for theyear ended December 31, 2000. In the opinion of management, all adjustments (consisting ofnormal recurring accruals) considered necessary for a fair presentation have beenincluded. Operating results for the six months ended June 30, 2001 are not necessarilyindicative of the results that may be expected for the year ended December 31, 2001.

For the statements of cash flows, cash and cash equivalents include one demand accountand two ninety-day certificates of deposit.

The preparation of financial statements in accordance with generallyaccepted accounting principles requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities and the disclosure of contingentassets and liabilities at the date of the financial statements and revenues and expensesduring the reporting period and we had no revenues during the reporting period. Actualresults could differ from those estimates.

2. Notes Payable to Stockholders

On June 30, 2001, our CEO/chairman loaned us $100,000 under anon-interest bearing note due in ninety days. On the same date, an unrelated party loanedus $100,000 payable in ninety days, and we have agreed to issue the lender 10,000restricted shares as interest for this loan. Both loans were utilized to purchase ninetyday certificates of deposit referred to in Note 1 above.

3. Stock Transactions

On February 10, 2001, the board of directors declared a 1 to 25 reversestock split and converted the preferred stock to 37,779 shares of common stock. On April19, 2001, we sold 500,000 restricted shares of stock to a corporation for $50,000. Thepresident and chief financial officer of the corporate purchaser were elected as directorsof the Company in March 2001. Although the shares are subject to quotation on the pinksheets, there has been no active trading market in the shares, and in fact during theperiod from March 15, 2001 to May 14, 2001, our shares traded on three occasions  andtraded on only one day in April 2001. None of the trading days during this period involvedany significant volume. We believe that the sale price of the 500,000 restricted sharesrepresents the market value of the shares on the pink sheets on the date of thetransaction. 

4. Earning per share

The basic weighted average number of shares was computed as if thereverse stock split mentioned in Note 3 occurred on December 31, 1999. The 2001 dilutedweighted average is the same as the basic. The 2000 diluted weighted average number ofcommon shares includes the conversion of the preferred stock into common stock.

5.Going Concern

The accompanying financial statements have been prepared assuming that the Company willcontinue as a going concern.

As shown in the accompanying financial statements, we have had no revenues. Our futureis dependent upon our ability to obtain financing, and on the success of our newoperations.

**Item 2. Management’s Plan of Operation**

As used in this Quarterly Report, the terms "we","us", "our" and the "Company" mean Gexa Corp., a Texascorporation.We changed our name during this quarter from Gexa Gold Corp. to Gexa Corp. Wealso filed a d/b/a in the State of Texas for Gexa Corp. to do business under the name ofGexa Energy.

Forward-Looking Statements; Market Data

To the extent that we make any forward-looking statements in the"Management’s Plan of Operation" in this Quarterly Report, we emphasizethat forward-looking statements involve risks and uncertainties and our actual results maydiffer materially from those expressed or implied by our forward-looking statements. Allforward-looking statements in this Quarterly Report reflect our current views about futureevents and are based on assumptions and are subject to risks and uncertainties. Generally,forward-looking statements include phrases with words such as  "expect","anticipate", "intend", "plan", "believe","seek", "estimate" and similar expressions to identify forward-lookingstatements.

This Quarterly Report contains reference to our intent to enter intothe business of reselling electricity which becomes a deregulated industry effectiveJanuary 1, 2002. On June 19, 2001, Gexa submitted an application to thePublic Utility Commission of the State of Texas for the purpose of becoming a retailreseller of electricity to residential and small commercial customers in Texas. UnderTexas law, beginning January 1, 2002, customers may elect to purchase electricity fromindependent resellers, such as Gexa. Our plan to pursue this new businessopportunity may involve certain estimates and plans related to the business of resellingelectricity, which is a newly deregulated industry, which assumes certain events, trendsand activities will occur and the projected information based on those assumptions. We donot know that any assumptions that we may make will be accurate. In particular, we do notknow and cannot predict with any degree of certainty the growth of the business ofreselling electricity in the market in State of Texas in which we seek to operate. If ourassumptions are wrong about any events, trends and activities, and specifically about thisnew business opportunity. Our efforts regarding this new business opportunity may be wrongbecause of our limited resources.

During the three and six month periods ended June 30, 2001 and 2000, we generated norevenues from any business operations. During the three month periods ended June 30, 2001,we had operating (administrative) expenses of $14,421 and had a net loss in the sameamount and a net loss per share of $.02. We had no expenses and income (loss) during thesame periods of  the prior year.

Liquidity and Capital Resources

At June 30, 2001, we had current assets of $202,079 consisting of cashand cash equivalents. The cash and cash equivalents include $200,000 in ninety daycertificates of deposit which are required by the State of Texas Public Utility Commissionin connection with our application to become a reseller of electricity after commencementof deregulation on January 1, 2001. At June 30, 2001, we had notes payable of $200,000.One note in the amount of $100,000 is payable to our CEO/chairman on a non-interestbearing basis, is due within ninety days. At December 31, 2000, we had no assets andliabilities. 

There can be no assurance that we will be able to continue to fund ourcontinuing expenses through the issuance of notes or other instruments, or will be able to

During the three-month period ended June 30, 2001, wegenerated $250,000 in cash flow from financing activities, including $50,000 from the saleof restricted shares and $200,000 from ninety day notes including a $100,000 note payableto our CEO/chairman. We have no written agreement with our CEO/chairman or with any otheraffiliate or unaffiliated person  to provide any continued funding. Our chairman ispresently negotiating on our behalf with our attorney and CR Capital Services, Inc., ourcorporate securities compliance firm, to be paid for services in shares. No determinationhas been made regarding the amount of shares or the value of the services.

We may determine to seek to raise funds from the sale of equity or debtsecurities, from bank or other borrowings or a combination thereof as part of our businessplan to enter into the business of reselling electricity in the State of Texas. However,we have no commitments as of the date hereof for the issuance and sale of equity or debtsecurities, and cannot at this time predict whether equity or debt financing will becomeavailable at terms acceptable to us, if at all. 

 

**PART II. OTHER INFORMATION**
**Item 1. Legal Proceedings**
None.
**Item 2. Changes in Security**
During the three-month period ended June 30, 2001, we sold 500,000 shares of restrictedcommon stock to Affordable Telecommunications Technology, a Texas corporation, inconsideration for $50,000. The president and the chief financial officer of Affordable,who are also members of Affordable's board of directors, were elected as directors of GEXAin March 2001. The shares sold to Affordable were not registered under the Act and werelied upon Section 4(2) of the Act as a transaction by an issuer not involving any publicoffering. Reference is made to Note 2 to the Notes to Financial Statements for theperiod under June 30, 2001.

**Item 3. Default Upon Senior Securities**

None.
**Item 4. Submission of Matters to a Vote of Security Holders**
None.
**Item 5. Other Information**
None.
**Item 6. Exhibits and Reports on Form 8-K**
(a) Exhibits:

Exhibit No. Document    Description
3(i)Articles    of Incorporation and amendments (filed as Exhibits to the Company's Registration Statement    on Form 10-12g filed on September 3, 1987 and are incorporated herein by reference)
3(ii)Bylaws    (filed as Exhibit to the Company's Registration Statement on Form 10-12g, filed on    September 3, 1987 and are incorporated herein by reference)
13(i)The    Registrant's Annual Reports on Form 10-KSB for the years ended December 31, 2000 , 1999    and 1998, which are incorporated herein by reference.13(ii)The    Registrant's Quarterly Report on Form 10-QSB for the three-month period ended March 31,    2001, which is incorporated by reference.13(iii)The    Registrant's Current Report on Form 8-K filed on June 21, 2001, which is incorporated by    reference.**(b) Form 8-K.

None.

**SIGNATURES**

In accordance with Section 13 or 15(d) of the Exchange Act, the smallbusiness issuer has caused this report to be signed on its behalf by the undersigned,thereunto duly authorized.
**Gexa Corp.
By: /s/ Marcie ZlotnikMarcie Zlotnik, President and DirectorDated: July 25, 2001Houston, Texas******************** |
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