UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

**FORM 10-QSB**
|   | x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|-----------------------------------------------------------------------------------|

For the quarterly period ended  **June 30, 2007**
|   | [                                          | ]              | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                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|   | For the transition period from   | to   |  
Commission file number  **000-52449**

**STAR RESORTS DEVELOPMENT INC.**

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

**Nevada**

 

**98-0521492**

(State or other jurisdiction of incorporation or organization)

 

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

**1221 Brickell Ave., 9th Floor, Miami FL  33131**

(Address of principal executive offices)

**(305) 397-2818**

(Issuer's telephone number)

**N/A**

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

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

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

**APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS DURING THE PRECEDING FIVE YEARS**

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.     Yes [   ]     No [   ]

**APPLICABLE ONLY TO CORPORATE ISSUERS**

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  **50,800,000 common shares issued and outstanding as of August 13, 2007.**

 

Transitional Small Business Disclosure Format (Check one):   

Yes o  

No x

 

 

 

 

- 2 -

 

 

**PART I**

**ITEM 1.**  **Financial Statements**

 

**Overview**

Our financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.

It is the opinion of management that the interim financial statements for the quarter ended June 30, 2007 include all adjustments necessary in order to ensure that the interim financial statements are not misleading.

 

 

 

- 3 -

 

 

 

**STAR RESORTS DEVELOPMENT, INC.**

**(A Development Stage Company)**

**BALANCE SHEET**

 

 

 

June 30, 2007

 

March 31, 2007

 

Unaudited 

 

(Restated)

**ASSETS**

 

 

Note 5

**CURRENT ASSETS**

 

 

 

Cash 

$

77,621 

 

$

2,200 

 

 

 

 

 

 

Total Current Assets 

 

77,621 

 

 

2,200 

 

 

 

 

 

 

**TOTAL ASSETS**

$

77,621 

 

$

2,200 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**LIABILITIES AND STOCKHOLDERS' EQUITY**

 

 

 

 

 

 

 

 

 

 

 

**CURRENT LIABILITIES**

 

 

 

 

 

Accounts payable 

$

3,850 

 

$

1,200 

 

 

 

 

 

 

Total Current Liabilities 

 

3,850 

 

 

1,200 

 

 

 

 

 

 

Total Liabilities 

 

3,850 

 

 

1,200 

 

 

 

 

 

 

**STOCKHOLDERS' EQUITY**

 

 

 

 

 

Common stock, 525,000,000 shares authorized, 

 

 

 

 

 

$0.001 par value; 50,800,000

 

 

 

 

 

were issued and outstanding 

 

50,800 

 

 

50,400 

Additional paid-in capital 

 

110,200 

 

 

10,600 

Accumulated deficit  

 

(87,229)

 

 

(60,000)

 

 

 

 

 

 

Total Stockholder's Equity 

 

73,771 

 

 

1,000 

 

 

 

 

 

 

**TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY**

$

77,621 

 

$

2,200 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements

 

 

 

- 4 -

 

 

 

**STAR RESORTS DEVELOPMENT, INC.**

**(A Development Stage Company)**

**STATEMENT OF OPERATIONS**

**Unaudited**

 

 

 

 

 

 

 

 

 

For the period

 

 

 

 

 

 

 

from Inception,

 

 

 

For the

 

November 8,

 

 

 

Three Months Ended

 

2005, through

 

 

 

June 30

 

June 30,

 

 

 

2007

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**SALES**

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

**COST OF GOODS SOLD**

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

**GROSS PROFIT**

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

**EXPENSES**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Expenses 

 

 

 

 

2,450

 

 

10,450

 

Salary 

 

16,000

 

 

 

 

 

16,000

 

Professional fees 

 

 

 

 

7,000

 

 

2,327

 

Consulting 

 

 

 

 

 

 

 

9,798

 

Stock transfer fees 

 

 

 

 

 

 

 

20,200

 

General and administrative 

 

11,229

 

 

1,054

 

 

28,454

 

 

**TOTAL EXPENSES**

 

27,229

 

 

10,504

 

 

87,229

 

 

 

 

 

 

 

 

 

 

 

**LOSS FROM OPERATIONS**

 

(27,229)

 

 

(10,504)

 

 

(87,229)

 

 

 

 

 

 

 

 

 

 

 

**OTHER INCOME (EXPENSE)**

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

**LOSS BEFORE INCOME TAXES**

 

(27,229)

 

 

(10,504)

 

 

(87,229)

 

 

 

 

 

 

 

 

 

 

 

**INCOME TAXES**

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

**NET LOSS**

 

(27,229)

 

 

(10,504)

 

 

(87,229)

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER COMMON SHARE, 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED 

 

(0.001)

 

 

(0.001)

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF 

 

 

 

 

 

 

 

 

 

COMMON STOCK SHARES 

 

 

 

 

 

 

 

 

 

OUTSTANDING, BASIC AND DILUTED 

 

49,380,736

 

 

16,006,338

 

 

 

 

 

 

 

(Restated)

 

 

 

 

 

 

 

Note 3

 

 

 

 

 

The accompanying notes are an integral part of these financial statements

 

 

 

- 5 -

 

 

 

**STAR RESORTS DEVELOPMENT, INC.**

**(A Development Stage Company)**

**STATEMENT OF STOCKHOLDERS' EQUITY**

Unaudited

 

 

 

 

Common Stock

 

Additional

 

 

 

Total

 

 

Number

 

 

Paid-in

 

Accumulated

 

Stockholders'

 

 

of Shares

 

Amount

 

Capital

 

Deficit

 

Equity 

 

 

 

 

 

 

 

 

 

 

Balance (date of inception November 8, 2005)

$                  - 

 

$            - 

 

$               - 

 

$                  - 

 

$               - 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for cash at $0.005

 

 

 

 

 

 

 

 

 

 

per share on November 24, 2005

2,200,000 

 

2,200 

 

8,800 

 

 

 

11,000 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for cash at $0.01

 

 

 

 

 

 

 

 

 

 

per share March 10 - 31, 2006

4,750,000 

 

4,750 

 

42,750 

 

 

 

47,500 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period from inception to

 

 

 

 

 

 

 

 

 

 

fiscal period end March 31, 2006

 

 

 

 

 

 

(4,345)

 

(4,345)

Balances as at fiscal period end March 31, 2006

6,950,000 

 

$6,950 

 

$51,550 

 

($4,345)

 

$54,155 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for cash at $0.01

 

 

 

 

 

 

 

 

 

 

per share April 3, 2006

250,000 

 

250 

 

2,250 

 

 

 

2,500 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year ended March 31, 2007

 

 

 

 

 

 

(55,655)

 

(55,655)

 

 

 

 

 

 

 

 

 

 

 

Balances at as April 17, 2007, before stock split

7,200,000 

 

$     7,200 

 

$      53,800 

 

$      (60,000)

 

$       1,000 

 

 

 

 

 

 

 

 

 

 

 

Common Stock split 7 for 1, April 17, 2007

43,200,000 

 

43,200 

 

(43,200)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at as April 17, 2007, after stock split

50,400,000 

 

50,400 

 

10,600 

 

(60,000)

 

1,000 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for cash at $0.25

 

 

 

 

 

 

 

 

 

 

per share June  6, 2007

400,000 

 

400 

 

99,600 

 

 

 

100,000 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the three months ended June 30, 2007

 

 

 

 

 

 

(27,229)

 

(27,229)

 

 

 

 

 

 

 

 

 

 

 

Balances as at June 30, 2007

50,800,000 

 

50,800 

 

110,200 

 

(87,229)

 

73,771 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements

 

 

 

- 6 -

 

 

 

**STAR RESORTS DEVELOPMENT, INC.**

**(A Development Stage Company)**

**STATEMENT OF CASH FLOWS**

Unaudited

 

 

 

 

 

 

 

 

 

 

 

From

 

 

 

 

 

 

 

 

 

Inception

 

 

 

 

 

For the

 

Nov 8,2005

 

 

 

 

 

Three Months Ended

 

through

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

2007

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

**CASH FLOWS FROM OPERATING ACTIVITIES**

 

 

 

 

 

 

 

 

Net loss 

$

(27,229)

 

$

(10,504)

 

$

(87,229)

 

Adjustments to reconcile net loss 

 

 

 

 

 

 

 

 

 

 

to net cash provided (used) by operating activities: 

 

 

 

 

 

 

 

 

 

Decrease (increase) in prepaid expenses 

 

 

 

 

(436)

 

 

 

 

Increase (decrease) in accounts payable 

 

2,650

 

 

2,415

 

 

3,850

Net cash provided (used) by operating activities 

$

(24,579)

 

$

(8,525)

 

$

(83,379)

 

 

 

 

 

 

 

 

 

 

 

 

 

**CASH FLOWS FROM INVESTING ACTIVITIES**

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

**CASH FLOWS FROM FINANCING ACTIVITIES**

 

 

 

 

 

 

 

 

 

Proceeds from sale of common stock 

 

100,000

 

 

2,500

 

 

161,000

Net cash provided (used) by financing activities 

$

100,000

 

$

2,500

 

$

161,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in cash 

 

75,421

 

 

(6,025)

 

 

77,621

 

 

 

 

 

 

 

 

 

 

 

 

 

**Cash, beginning of period**

 

2,200

 

 

54,155

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

**Cash, end of period**

$

77,621

 

$

48,130

 

$

77,621

 

 

 

 

 

 

 

 

 

 

 

 

 

**SUPPLEMENTAL CASH FLOW DISCLOSURES:**

 

 

 

 

 

 

 

 

**Interest paid**

 

 

-

 

 

-

 

 

-

**Income taxes paid**

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements

 

 

 

- 7 -

 

 

 

**STAR RESORTS, INC.**

**(A Development Stage Company)**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**JUNE 30, 2007 (Unaudited)**

 

**NOTE 1 – BASIS OF PRESENTATION**

 

These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America and with the instructions to Form 10-QSB as promulgated by the Securities and Exchange Commission (“SEC”).  

 

While the information presented in the accompanying interim three months financial statements is unaudited,  it includes all adjustments that in the opinion of management are  necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented 

 

These interim financial statements follow the same accounting policies and methods of their application as the Company’s March 31, 2007 annual financial statements. All adjustments are of a normal recurring nature. It is suggested that these abridged interim financial statements be read in conjunction with the Company’s March 31, 2007 annual financial statements. 

 

Operating results for the six months ended June 30, 2007 are not necessarily indicative of the results that can be expected for the year ending March 31, 2008.

 

Use of Estimates

 

The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period.  Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company’s financial position and results of operations.

 

**NOTE 2 – OPERATIONS**

 

The Company was incorporated in the State of Nevada, U.S.A., on November 7, 2005.   The company was initially engaged in the acquisition and exploration of mining properties. On November 30, 2005 the Company entered into a mining lease agreement for certain mineral lands in Washington State.  The Company did not realize any revenues during the exploratory stage.

 

On March 6, 2007 a change of control occurred when the majority stockholder, KIF Capital Corporation, sold all of its common shares to David Craven, a British citizen.  On March 8, 2007 David Craven assumed the positions of President, Treasurer, CFO and Director.

 

On April 17, 2007 the Company merged with Star Resorts Development, Inc.   NABO, Inc. survived the merger and the name was changed to Star Resorts Development, Inc. 

 

In addition, a seven for one stock split of authorized, issued and outstanding common stock was effected.   Authorized capital increased from 75,000,000 shares of common stock with a par value of $0.001 to 525,000,000,000 shares with the same par value.   Issued and outstanding share capital increased from 7,200,000 shares of common stock to 50,400,000 shares of common stock.

 

On May 14, 2007 David Craven was replaced by Enrique Abaroa Martinez as President, Treasurer and CFO and a Director.

 

 

 

- 8 -

 

 

The company abandoned operations related to its mining lease agreement in Washington state.  The company proceeded to focus on investment opportunities in Latin America.

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern.

 

As shown in the accompanying financial statements, the Company has incurred a net loss of $87,229 since inception November 8, 2005, and has no sales.  The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its mineral properties.  Management has plans to seek additional capital through a private placement or public offering of its common stock. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. 

 

Development Stage Company

 

The Company is considered a development-stage company, with no operating revenues during the periods presented, as defined by Statement of Financial Accounting Standards (“SFAS”) No. 7.  SFAS No. 7 requires companies to report their operations, shareholders deficit and cash flows since inception through the date that revenues are generated from management’s intended operations, among other things.  Management has defined inception as November 8, 2005.  Since inception, the Company has incurred operating losses totaling $87,229. The Company’s working capital has been generated through the sales of common stock.  Management has provided financial data since November 8, 2005 “Inception” in the financial statements, as a means to provide readers of the Company’s financial information to make informed investment decisions.

 

**NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES**

 

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.

 

The financial statements have, in management’s opinion, been properly prepared within the reasonable limits of materiality and within the framework of the significant accounting policies summarized below:

 

Accounting Method

 

The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

 

Income Taxes

 

The Company utilizes SFAS No. 109, “Accounting for Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns.  Under this method, deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company generated deferred tax credits through net operating loss carryforwards.  However, a valuation allowance of 100% has been established, as the realization of the deferred tax credits is notreasonably certain, based on going concern considerations outlined above.

 

Basic and Diluted Loss Per Share

 

 

 

- 9 -

 

 

In accordance with SFAS No. 128 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding.  Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would be outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  The dilutive securities outstanding as of June 30, 2007 were 400,000 warrants convertible into one share of common stock.   The exercise of these warrants would be anti-dilutive since the company is in a loss position, therefore they were not counted in the calculation of Earnings Per Share.

 

A common stock split of  7 to 1  occurred on April 17, 2007.   The outstanding shares as at June 30, 2006 were restated to give retroactive effect to the stock split.

 

Three Months Ended June 30,

 

 

Three Months Ended June 30,

 

2007

 

2006

 

 

 

 

Basic and diluted net loss per share:

 

 

 

 

 

 

 

Numerator

 

 

 

Net Loss

$    (27,229)

 

$   (10,504)

 

 

 

 

Denominator

 

 

 

Basic and diluted weighted average number

 

 

 

of shares outstanding

49,380,435 

 

16,006,338 

 

 

 

(Restated)

 

 

 

 

Basic and Diluted Net Loss Per Share

$      (0.001)

 

$     (0.001)

 

 

NOTE 4 – CAPITAL STRUCTURE

 

Common Stock Transactions during the period from inception November 8, 2005 through June  30, 2007.

 

On November 24, 2005, the company issued 2,200,000 shares of its common stock to a single investor at a price of $0.005 per share for a total of $11,000.

 

Between March 10 and March 31, 2006 the Company issued a total of 4,750,000 shares of its common stock to 34 investors. The shares were sold at $0.05 for a total of $47,500.

 

On April 3, 2006 the company issued 250,000 shares of its common stock to three investors at a price of $0.01 per share, for a total of $2,500.

 

Significant Stock Transaction. On March 6, 2007 KIF Capital Corporation sold all of its 2,200,000 common shares for $335,000 to David Craven, a British citizen. This represented 30.5% of the issued and outstanding shares. The purpose as reported to the Securities and Exchange Commission was for Mr. Craven to acquire control.

 

On April 17, 2007 the company effected a seven for one stock split of issued and outstanding common stock.  Authorized capital was increased from 75,000,000 to 525,000,000 shares at the same par value, $0.001 per share. 

 

On June 6, 2007 the company sold 400,000 shares of common stock to a Swiss investment bank at $0.25 per share, realizing $100,000.  Each share was accompanied by one warrant.  Each warrant is convertible within three years to one common share at a price of $0.75.

 

As of June 30, 2007, the Company has authorized 525,000,000 of $0.001 par common stock, of which 50,800,000 shares were issued and outstanding.   

 

 

 

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**NOTE 5 – RESTATED FINANCIAL STATEMENTS**

 

The audited financial statements for the year ended March 31, 2007 were restated to give retroactive effect to the 7 to 1 stock split that occurred April 7, 2007:  

 

 

 

**As Originally Reported**

 

**Restated**

 

 

 

 

 

 

Issued and Outstanding Shares

 

 

7,200,000

 

 

50,400,000

Capital Stock

 

$

7,200

 

$

50,400

Paid-In Capital

 

$

53,800

 

$

10,600

 

The stock split had a neutral effect on stockholder equity.

 

**NOTE 6 – LITIGATION**

 

There are no legal proceedings against the Company with respect to matters arising in the ordinary course of business.

 

**NOTE 7 –  SUBSEQUENT EVENTS**

 

In July 2007, the company loaned $336,500 to Latin Star Developments, Inc. an unrelated party.  The loan is non-interest bearing and payable on demand  

 

On July 2, 2007 the company obtained additional financing from the sale to an Argentine investment firm of 1,500,000 units, consisting of one share and one warrant per unit, at a price of $0.50 per share, for a total of $750,000.  The shares and units have not yet been issued.  

 

On July 31, 2007 the company entered into a Memorandum of Understanding with two Argentine individuals, owners of 70% of the stock of Inversiones del Dique S.A., “ID”, an Argentine company.  Star Resorts will purchase 50% of  ID stock, which will gain a 20% interest in the “Dock 2 Project”, through intermediate stockholdings.  $400,000 was advanced on August 1, 2007 in partial payment, per terms of the Memorandum of Understanding.

 

 

 

 

 

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**ITEM 2**  **Management's Discussion and Analysis or Plan of Operations**

**FORWARD LOOKING STATEMENTS**

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

Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change.  Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common shares" refer to the common shares in our capital stock.  

As used in this quarterly report, the terms "we", "us", "our", "Nabo", "Nabo Inc." and "Star Resorts" mean Star Resorts Development Inc., unless the context clearly requires otherwise.

**Corporate Overview**

The address of our principal executive office is 1221 Brickell Ave., 9th Floor, Miami FL  33131 and our telephone number is (305) 397-2818.  Our registered statutory office is located at 304-2470 Saint Rose Parkway, Henderson, Nevada  89704.

Our common stock is quoted on the OTC Bulletin Board under the symbol "SRDP".

*Corporate History*

We were incorporated in the State of Nevada on November 7, 2005 under the name "Nabo Inc." with an authorized capital of 75,000,000 shares of common stock with a par value of $0.001.  On April 17, 2007, we changed our name to "Star Resorts Development Inc."  We effected this name change by merging with our wholly owned subsidiary, named "Star Resorts Development Inc.", a Nevada corporation that we formed specifically for this purpose.  We changed the name of our company to better reflect the direction and business of our company.    

In addition, effective April 17, 2007, we effected a seven for one stock split of our authorized, issued and outstanding common stock. As a result, our authorized capital has increased from 75,000,000 shares of common stock with a par value of $0.001 to 525,000,000 shares of common stock with a par value of $0.001.  Our issued and outstanding share capital increased from 7,200,000 shares of common stock to 50,400,000 shares of common stock.

*Our Current Business*

We are a development stage company.

 

 

 

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On July 31, 2007, we entered into a memorandum of understanding with Ricardo Ernesto Bello and Diego Alberto Radivoy Magnani wherein we have agreed to purchase a 50% interest in the capital of Inversiones del Dique S.A., an Argentine company which, through its subsidiary Incubus S.A. owns a 40% interest in a project known as the Dock 2 Project.  We have agreed to pay a total of $2,300,000 in order to earn the 50% interest in Inversiones del Dique S.A.  The purpose of the acquisition is for us to obtain a 20% interest in the Dock 2 Project.

The memorandum of understanding is subject to our company completing satisfactory due diligence on Inversiones del Dique S.A. and Incubus S.A.  

In addition to signing this memorandum of understanding, we are currently seeking business opportunities with established business entities for the merger of a target business with our company.  In certain instances, a target business may wish to become a subsidiary of us or may wish to contribute assets to us rather than merge.  We are currently in negotiations with several parties to enter into a business opportunity but we have not entered into any definitive agreements to date and there can be no assurance that we will be able to enter into any definitive agreements.  We anticipate that any new acquisition or business opportunities by our company will require additional financing.  There can be no assurance, however, that we will be able to acquire the financing necessary to enable us to pursue our plan of operation.  If our company requires additional financing and we are unable to acquire such funds,our business may fail.

Management of our company believes that there are perceived benefits to being a reporting company with a class of publicly-traded securities.  These are commonly thought to include: (i) the ability to use registered securities to acquire assets or businesses; (ii) increased visibility in the financial community; (iii) the facilitation of borrowing from financial institutions; (iv) improved trading efficiency; (v) stockholder liquidity; (vi) greater ease in subsequently raising capital; (vii) compensation of key employees through stock options; (viii) enhanced corporate image; and (ix) a presence in the United States capital market.

We may seek a business opportunity with entities who have recently commenced operations, or entities who wish to utilize the public marketplace in order to raise additional capital in order to expand business development activities, to develop a new product or service, or for other corporate purposes.  We may acquire assets and establish wholly-owned subsidiaries in various businesses or acquire existing businesses as subsidiaries.

In implementing a structure for a particular business acquisition or opportunity, we may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another corporation or entity.  We may also acquire stock or assets of an existing business.  

As of the date hereof, management has not entered into any formal written agreements for a business combination or opportunity.  When any such agreement is reached, we intend to disclose such an agreement by filing a current report on Form 8-K with the Securities and Exchange Commission.

We anticipate that the selection of a business opportunity in which to participate will be complex and without certainty of success.  Management believes that there are numerous firms in various industries seeking the perceived benefits of being a publicly registered corporation.  Business opportunities may be available in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.  We can provide no assurance that we will be able to locate compatible business opportunities.

As a development stage company, we are not able to fund our cash requirements through our current operations.  Historically, we have been able to raise a limited amount of capital through private placements of our equity stock, but we are uncertain about our continued ability to raise funds privately.  Further, we believe that our company may have difficulties raising capital until we locate a prospective business through which we can pursue our plan of operation.  If we are unable to secure adequate capital to continue our acquisition efforts, our shareholders may lose some or all of their investment and our business may fail.

 

 

 

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*Employees*

As of August 17, 2007, our company had one employee, our President, Chief Executive Officer and Treasurer. 

We engage contractors from time to time to consult with us on specific corporate affairs or to perform specific tasks in connection with our exploration programs.

*Intellectual Property*

We do not own, either legally or beneficially, any patent or trademark. 

**Plan of Operation**

*Cash Requirements*

Over the 12 month period ending June 30, 2008, we anticipate that we will have to raise additional money through private placements of our equity securities and/or debt financing in order that we may fund the identification and evaluation of a suitable business opportunity.

We anticipate that we will incur the following expenses over the next twelve months: 

1.

$2,300,000 to complete the purchase of the 50% interest in Inversiones del Dique S.A.;

2.

$25,000 in connection with our company locating, evaluating and negotiating potential business opportunities;

3.

$20,000 for operating expenses, including professional legal and accounting expenses associated with our company being a reporting issuer under the Securities Exchange Act of 1934; and

4.

$20,000 for management, administrative and leasing costs.

We will incur additional expenses if we are successful in entering into an agreement for a business opportunity.  It is not possible to estimate such funding requirements until such time as we enter into a definitive agreement for a business combination.

*Product Research and Development*

Unless we acquire a new business, we do not anticipate that we will expend any significant monies on research and development over the 12 months ending June 30, 2008.

*Purchase of Significant Equipment*

Unless we acquire a new business, we do not intend to purchase any significant equipment over the 12 months ending June 30, 2008.

*Employees*

Currently our only employees are our directors and officers.

*Going Concern*

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive exploration activities. For these reasons our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern.

 

 

 

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*Future Financings*

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

*Off-Balance Sheet Arrangements*

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

*Liquidity and Capital Resources*

At June 30, 2007, we had working capital of $73,771.

At June 30, 2007, our total current assets were $77,621 which consisted of cash of $77,621.

At June 30, 2007, our total current liabilities were $3,850.

Operating expenses for the three months ended June 30, 2007 were $27,229.

For the three months ended June 30, 2007, we posted losses of $27,229 and $87,229 since incorporation. The principal components of the loss for the 12 months ended June 30, 2007 were general and administrative expenses and taxes. 

**RISK FACTORS**

An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below and the other information in this prospectus before investing in our common stock. If any of the following risks occur, our business, operating results and financial condition could be seriously harmed. The trading price of our common stock, when and if we trade at a later date, could decline due to any of these risks, and you may lose all or part of your investment.

**Risks Related To Our Financial Condition and Business Model**

*Scarcity of and Competition for Business Opportunities and Combinations*

We are, and will continue to be, an insignificant participant amongst numerous other companies seeking a suitable business opportunity or business combination.  A large number of established and well-financed entities, including venture capital firms, are actively seeking suitable business opportunities or business combinations which may also be desirable target candidates for us.  Virtually all such entities have significantly greater financial resources, technical expertise and managerial capabilities than we do.  We are, consequently, at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination.  We will also compete with numerous other small public companies seeking suitable business opportunities or business combinations.

*We have had negative cash flows from operations and if we are not able to obtain further financing, our business operations may fail.*

We had cash in the amount of $77,621 and a working capital surplus of $73,771 as of June 30, 2007.  We anticipate that we may require additional financing while we are seeking a suitable business opportunity or business combination.  Further, we anticipate that we will not have sufficient capital to fund our ongoing operations for the next twelve months.  We may be required to raise additional financing for a particular business combination or business opportunity.  We would likely secure any additional financing necessary through a private placement of our common shares.

 

 

 

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There can be no assurance that, if required, any such financing will be available upon terms and conditions acceptable to us, if at all.  Our inability to obtain additional financing in a sufficient amount when needed and upon terms and conditions acceptable to us could have a materially adverse effect upon our company.  Although we believe that we have funds sufficient to meet our immediate needs, we may require further funds to finance the development of any business opportunity that we acquire.  There can be no assurance that such funds will be available or available on terms satisfactory to us.  If additional funds are raised by issuing equity securities, further dilution to existing or future shareholders is likely to result.  If adequate funds are not available on acceptable terms when needed, we may be required to delay, scale back or eliminate the development of any business opportunity that weacquire.  Inadequate funding could also impair our ability to compete in the marketplace, which may result in the dissolution of our company.

*A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations.*

A prolonged decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise capital.  Because our operations have been primarily financed through the sale of equity securities, a decline in the price of our common stock could be especially detrimental to our liquidity and our continued operations.  Any reduction in our ability to raise equity capital in the future would force us to reallocate funds from other planned uses and would have a significant negative effect on our business plans and operations, including our ability to develop new products and continue our current operations.  If our stock price declines, we may not be able to raise additional capital or generate funds from operations sufficient to meet our obligations.

*We have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations.*

We have a limited operating history on which to base an evaluation of our business and prospects.  Our prospects must be considered in light of the risks, uncertainties, expenses and difficulties frequently encountered by companies seeking to acquire or establish a new business opportunity.  Some of these risks and uncertainties relate to our ability to identify, secure and complete an acquisition of a suitable business opportunity.

We cannot be sure that we will be successful in addressing these risks and uncertainties and our failure to do so could have a materially adverse effect on our financial condition.  In addition, our operating results are dependent to a large degree upon factors outside of our control.  There are no assurances that we will be successful in addressing these risks, and failure to do so may adversely affect our business.

It is unlikely that we will generate any or significant revenues while we seek a suitable business opportunity.  Our short and long-term prospects depend upon our ability to select and secure a suitable business opportunity.  In order for us to make a profit, we will need to successfully acquire a new business opportunity in order to generate revenues in an amount sufficient to cover any and all future costs and expenses in connection with any such business opportunity.  Even if we become profitable, we may not sustain or increase our profits on a quarterly or annual basis in the future.

We will, in all likelihood, sustain operating expenses without corresponding revenues, at least until we complete a business combination or acquire a business opportunity.  This may result in our company incurring a net operating loss which will increase continuously until we complete a business combination or acquire a business opportunity that can generate revenues that result in a net profit to us.  There is no assurance that we will identify a suitable business opportunity or complete a business combination.

*No Agreement for Business Combination or Other Transaction/No Standards for Business Combination*

We have no arrangement, agreement, or understanding with respect to acquiring a business opportunity or engaging in a business combination with any private entity.  There can be no assurance that we will successfully identify and evaluate suitable business opportunities or conclude a business combination.  There is no assurance that we will be able to negotiate the acquisition of a business opportunity or a business combination on terms favorable to us.  We have not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria which it will require a target business opportunity to have achieved, and without which we would not consider a 

 

 

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business combination in any form with such business opportunity.  Accordingly, we may enter into a business combination with a business opportunity having no significant operating history, losses, limited or no potential for earnings, limited assets, negative net worth or other negative characteristics.

**Risks Associated with Our Common Stock**

*Trading on the OTC Bulletin Board may be volatile and sporadic, which could depress the market price of our common stock and make it difficult for our stockholders to resell their shares.*

Our common stock is quoted on the OTC Bulletin Board service of the National Association of Securities Dealers.  Trading in stock quoted on the OTC Bulletin Board is often thin and characterized by wide fluctuations in trading prices due to many factors that may have little to do with our operations or business prospects.  This volatility could depress the market price of our common stock for reasons unrelated to operating performance.  Moreover, the OTC Bulletin Board is not a stock exchange, and trading of securities on the OTC Bulletin Board is often more sporadic than the trading of securities listed on a quotation system like Nasdaq or a stock exchange like the American Stock Exchange.  Accordingly, our shareholders may have difficulty reselling any of their shares.

*Our stock is a penny stock.  Trading of our stock may be restricted by the SEC's penny stock regulations and the NASD's sales practice requirements, which may limit a stockholder's ability to buy and sell our stock.*

Our stock is a penny stock.  The Securities and Exchange Commission has adopted Rule 15g-9 which generally defines "penny stock" to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions.  Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors".  The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in aform prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market.  The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account.  The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement tothe transaction.  These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules.  Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities.  We believe that the penny stock rules discourage investor interest in, and limit the marketability of, our common stock.

In addition to the "penny stock" rules promulgated by the Securities and Exchange Commission, the National Association of Securities Dealers has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer.  Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information.  Under interpretations of these rules, the National Association of Securities Dealers believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers.  The National Association of Securities Dealers' requirements make it more difficult for broker-dealers torecommend that their customers buy our common stock, which may limit your ability to buy and sell our stock. 

 

 

 

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**ITEM 3**  **Controls and Procedures.**

As required by Rule 13a-15 under the Exchange Act, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures as of the end of the period covered by this quarterly report, being June 30, 2007.  This evaluation was carried out under the supervision and with the participation of our former President (Former Principal Executive Officer and Former Principal Financial Officer), David Craven and existing President (Principal Executive Officer and Principal Financial Officer), Enrique Abaroa Martinez.  Based upon that evaluation, our former and existing President (Principal Executive Officer and Principal Financial Officer) concluded that our disclosure controls and procedures are effective in timely alerting management to material information relating to us required to be included in our periodic SEC filings as at the end of the periodcovered by this report.  There have been no changes in our internal controls or in other factors that could significantly affect internal controls subsequent to the date we carried out our evaluation.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our President and Chief Financial Officer, to allow timely decisions regarding required disclosure.

**PART II**

**Item 1**  **Legal Proceedings**

We are not party to any legal proceedings.

**Item 2**  **Unregistered Sales of Equity Securities**

On June 15, 2007, we closed a private placement consisting of 400,000 units of our securities (the "Units") at a price of US $0.25 per Unit for aggregate proceeds of $100,000. Each Unit consists of one common share and one share purchase warrant (a "Warrant"), one Warrant shall be exercisable into one common share (a "Warrant Share") at a price of US $0.75 per Warrant Share until June 15, 2010.

We issued the Units to a non-U.S. person (as that term is defined in Regulation S of the Securities Act of 1933) in an offshore transaction relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.

On July 2, 2007, we received a subscription agreement for 1,500,000 units of our securities (the “Units”) at a price of US $0.50 per Unit for aggregate proceeds of $750,000.  Each Unit consists of one common share and one share purchase warrant (a “Warrant”).  Each Warrant shall be exercisable into one common share (a “Warrant Share”) at a price of US $1.00 per Warrant Share for a period of three years from the date of issuance of the Warrants.  

The subscriber is a non-U.S. person (as that term is defined in Regulation S of the Securities Act of 1933) and the Units were sold in an offshore transaction relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.

**Item 3**  **Defaults Upon Senior Securities**

None

**Item 4**  **Submission of Matters to a Vote of Securities Holders**

None

 

 

 

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**Item 5**  **Other Information**

On July 31, 2007, we entered into a memorandum of understanding with Ricardo Ernesto Bello and Diego Alberto Radivoy Magnani wherein we have agreed to purchase a 50% interest in the capital of Inversiones del Dique S.A., an Argentine company which, through its subsidiary Incubus S.A. owns a 40% interest in a project known as the Dock 2 Project.  We have agreed to pay a total of $2,300,000 in order to earn the 50% interest in Inversiones del Dique S.A.  The purpose of the acquisition is for us to obtain a 20% interest in the Dock 2 Project.

The memorandum of understanding is subject to our company completing satisfactory due diligence on Inversiones del Dique S.A. and Incubus S.A.  

**Item 6**  **Exhibits and Reports on Form 8K**

EXHIBITS AND REPORTS ON FORM 8-K.

**Exhibit No.**

**Description**

3.1

Articles of Incorporation of the Registrant, filed as an exhibit to the registration statement on Form SB-2 filed with the Commission on June 15, 2006 and incorporated herein by reference.

3.2

By-laws of the Registrant, filed as an exhibit to the registration statement on Form SB-2 filed with the Commission on June 15, 2006 and incorporated herein by reference.

3.3

Certificate of Change, filed as an exhibit to the current report on Form 8-K filed with the Commission on April 19, 2007 and incorporated herein by reference 

3.4

Articles of Merger, filed as an exhibit to the current report on Form 8-K filed with the Commission on April 19, 2007 and incorporated herein by reference 

10.1

Mineral Lease Agreement dated November 30, 2005 between NABO Inc. and Barbara Dart, John O. Dart & Marcella G. Dart filed as an exhibit to the registration statement on Form SB-2 filed with the Commission on June 15, 2006 and incorporated herein by reference.

10.2

Subscription Agreement filed as an exhibit to the current report on Form 8-K filed with the Commission on June 20, 2007 and incorporated herein by reference;

10.3

Warrant Certificate filed as an exhibit to the current report on Form 8-K filed with the Commission on June 20, 2007 and incorporated herein by reference;

10.4

Memorandum of Understanding filed as an exhibit to the current report on Form 8-K filed with the Commission on or about August 20, 2007 and incorporated herein by reference.

21.1

Subsidiaries of Star Resorts Development Inc. – None

31.1*

Certification pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended (Principal Executive Officer and Principal Financial Officer).

32.1*

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Executive Officer and Principal Financial Officer).

99.1

Poland China Mine Area Project, Geological Report dated January 5, 2006 prepared by Robert E. Miller, Geological Engineer filed as an exhibit to the registration statement on Form SB-2/A filed with the Commission on July 28, 2006 and incorporated herein by reference.

*filed herewith

 

 

 

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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.

 

STAR RESORTS DEVELOPMENT INC.

 

By: /s/ Enrique Abaroa Martinez

 

Enrique Abaroa Martinez, President, Chief Executive Officer, Chief Financial Officer Director

Principal Executive Officer and Principal Financial Officer

 

Date August 20, 2007

 

 

 

 

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