<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)
[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended June 30, 1999

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

         For the transition period from __________  to ___________

         For the quarterly period ended ________________________

                        Commission file number: 333-29295


                              RETROSPETTIVA, INC.
      (Exact name of small business issuer as specified in its charter)

              California                                  95-4298051
   (State or other jurisdiction of                     (I.R.S. Employer
    incorporation or organization)                   Identification No.)

                          8825 West Olympic Boulevard
                             Beverly Hills, CA 90211
                    (Address of principal executive offices)

                                (310) 657-1745
                         (Issuer's telephone number)

Check whether the registrant (1) has 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 [ ]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

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 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: Common Stock, No Par Value,
3,127,916 shares as of August 10, 1999.

Transitional Small Business Disclosure Format:  Yes  [ ]   No  [X]

<PAGE>

                               RETROSPETTIVA, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and in accordance with the instructions for Form
10-QSB. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements.

In the opinion of management, the financial statements contain all material
adjustments, consisting only of normal recurring adjustments necessary to
present fairly the financial condition, results of operations, and cash flows
of the Company for the interim periods presented.

The results for the three and six months ended June 30, 1999 are not
necessarily indicative of the results of operations for the full year. These
financial statements and related footnotes should be read in conjunction with
the financial statements and footnotes thereto included in the Company's Form
10-KSB filed with the Securities and Exchange Commission for the year ended
December 31, 1998.

NOTE 2 - COMMON STOCK OUTSTANDING

On January 15, March 12, and April 6, 1999, 85,000, 42,916, and 100,000
common stock options were exercised, respectively by an employee of the
Company. The total issued and outstanding no par value common stock as of
August 10, 1999 was 3,127,916.

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

GENERAL

The Company contracts for the manufacture of a variety of garments, primarily
basic women's sportswear which includes suits, skirts, blouses, blazers,
pants, shorts, vests and dresses, using assorted fabrics including rayons,
linens, cotton and wool. The Company arranges for the manufacture of garments
for customers under private labels selected by its customers. It markets its
products exclusively in the United States directly to large wholesalers
directly and indirectly to national retailers and buying organizations, and
directly to women's chain clothing stores and catalogues.

Substantially, all of the Company's garments are sold on a "package" basis
pursuant to which the Company markets at fixed prices finished garments to
the customer's specifications and quantity requirements, arranges for
production of the garments and delivers the garments directly to the customer
at the port of entry. In its marketing, the Company emphasizes these package
arrangements and what it believes to be the better quality and lower prices
of garments produced by skilled Macedonian workers as compared to lower paid
workers in certain other regions.

As a package provider, the Company sources and purchases fabrics and trims,
arranges for cutting and sewing, and coordinates any other services required
to provide a finished garment. Since the Company manufactures its finished
products only upon receipt of purchase orders from its wholesale and retail
customers, it therefore does not maintain an inventory of finished products.
The Company believes that in this way it minimizes the marketing and fashion
risk generally associated with the apparel industry. Fabrics and trims are
purchased from suppliers in China, India, Russia, Romania, Italy and the
United States. After dying the fabric, if necessary, the fabric and trim are
shipped to factories selected by the Company (primarily located in Macedonia)
where they are manufactured into finished garments under the Company's
management and quality control guidance. The finished products are then
shipped directly to New York City where the Company's customers claim the
goods either at the port in New York City or at a consolidating warehouse in
Astoria, New York.

Except for historical information contained herein, the matters set forth may
include forward-looking statements that are subject to risks and uncertainty
that may cause actual results to differ materially. Such forward-looking
statements that may be contained in this document could include in particular
statements concerning business back-logs, operating efficiencies and
capacities, capital spending, and other expenses. Among other factors that
could cause actual results to differ materially are the following; dependence
upon unaffiliated manufacturers and fabric suppliers, dependence on certain
customers, foreign operations, competition, risks associated with significant
growth, uncertainties in apparel industry, general economic conditions,
seasonality, political instability, concentration of accounts receivable and
possible fluctuations in operating results

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, the percentage
relationship to net revenues of certain items in the Company's statements:

<PAGE>

<TABLE>
<CAPTION>
                                              THREE MONTHS ENDED        SIX MONTHS ENDED
                                                   JUNE 30,                  JUNE 30,
                                              1998           1999        1998         1999
                                            ------------------------------------------------
<S>                                         <C>            <C>         <C>          <C>
Revenues                                     100.0%         100.0%      100.0%       100.0%
Cost of goods sold                            85.9%          85.2%       86.0%        87.5%
Gross profit                                  14.1%          14.8%       14.0%        12.5%
Selling, General and Administrative            5.5%          20.5%        6.3%        10.8%
Operating income                               8.5%          -5.8%        7.7%         1.2%

</TABLE>

SIX MONTHS ENDED JUNE 30, 1999 ("1999") COMPARED TO SIX MONTHS ENDED JUNE 30,
1998 ("1998")

SALES

Sales for 1999 were $10,852,294 which represented an decrease of $3,925,699
or 26.6% under 1998 net sales of $14,777,993. The decline in sales was
primarily attributable to decreased purchases by existing customers Net sales
decreases during the period reflected these decreased customer orders.

COST OF GOODS SOLD

Cost of goods sold in 1999 was $9,495,970 or 87.5% of sales, a decrease of
$3,214,699 from $12,710,669 or 25.3% of sales in 1998. The decrease in cost
of goods sold was primarily attributable to the decrease in sales. The
increase in the percentage of cost of goods sold was primarily attributable
to increases in cost of materials and shipping expenses.

GROSS PROFIT

Gross profit was $1,356,324 for 1999, a decrease of $710,999 from $2,067,323
for 1998. The gross profit percentage was 12.5% in 1999, a decrease from
14.0% in 1998. The decrease in the gross profit percentage was primarily
attributable to increased cost of materials and shipping expenses.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative ("SG&A") expenses were $1,166,002 or
10.8% of sales for 1999, an increase of $200,466 from $965,536 or 20.7%. The
increase in SG&A expense levels was primarily attributable to payments
related to sales commissions, salaries, factor charges and rent.

INTEREST EXPENSE

Interest expense for 1999 was $93,755 compared to $38,031 for 1998. The
increase in interest was primarily attributable to the increase in the
utilization of existing financing vehicles.

PROVISION FOR INCOME TAXES

The provision for income taxes was $59,000 and $510,000 for 1999 and 1998,
respectively. The decrease in the provision for income taxes for the 1999 was
primarily attributable to decreased earnings.

<PAGE>

LIQUIDITY

The Company has 575,000 warrants outstanding with an exercise price of $7.50
per warrant expiring September 23, 2002. The Company has 50,000 underwriter
warrants outstanding with an exercise price of $14.40 per unit. Each unit
consists of two shares of the Company's common stock and one warrant as
described above. The Company does not know whether the warrants will be
exercised in 1999. Without exercise of those warrants, the Company may need
to limit its growth in order to more efficiently manage its available funds
and funds generated by operations.

It is the Company's intention, however, to utilize more fully and possibly
increase its existing line of credit with a major lending institution and its
credit facility arrangement with a New York factoring company. These measures
are required due to the significant cash requirements related to increases in
revenues.

The Company does not expect its historical rate of increase in sales growth
to continue and further expects its rate of growth to be lower in the future
as it begins to reach its full operating capacity constraints and utilization
of its existing capital resources. In the event the Company is able to obtain
additional equity capital through the exercise, if any, of its outstanding
warrants or other increases in potential working capital as mentioned above,
however, the Company believes that this new working capital may allow it to
grow more quickly.

CAPITAL RESOURCES

Since its formation, the Company has financed its operations and met its
capital requirements primarily through cash flows from operations, customer
advances, from principals, credit facilities, bridge loans, a private
placement and its IPO.

The initial use of IPO funds was to repay certain debt and to purchase raw
materials, for working capital and the eventual purchase of wool
manufacturing equipment. The Company's primary need for cash is for working
capital purposes. The Company may raise capital through the issuance of
long-term or short-term debt, or the issuance of securities in private or
public transactions to fund future expansion of its business. There can be no
assurance that acceptable financing for future transactions can be obtained.

INFLATION

The Company does not anticipate a significant increase in inflation in the
United States over the short-term. All of the Company's transactions
worldwide are conducted on a dollar-denominated basis which is intended to
mitigate the possible impact of volatile currencies that may arise as a
result of global corporations crowding emerging markets in search of growth.

SEASONALITY

The Company's revenues and operating results have exhibited some degree of
seasonality in past periods.

YEAR 2000 ISSUES

Many computer systems in use today were designed and developed using two
digits, rather than four, to specify the year. As a result, such systems will
recognize the year 2000 as "00". This could cause many computer applications
to fail completely or to create erroneous results unless corrective measures
are taken. The Company currently uses software and related computer
technologies essential to its operations that the Company believes will not
be affected by the year 2000 issue.

<PAGE>

The Company, however, can not determine the extent to which its vendors and
customers may or may not be affected by the year 2000 issue. The Company is
in the process of implementing a plan to obtain information from its external
service providers, significant suppliers and customers, and financial
institutions to confirm their plans and readiness to become Year 2000
compliant, in order to better understand and evaluate how their Year 2000
issues may affect the Company's operations. The Company currently is not in a
position to assess this aspect of the Year 2000 issue. The Company intends
over the next 2 years to establish relationships with customers that may
require the use of EDI (electronic data interchange) whereby all invoicing
and payments will take place electronically over the internet through
computers. The Company believes that since these prospective customers
already utilize EDI, that they either have in place now, or will have
successfully taken whatever steps are necessary to solve the year 2000 issue.

While the Company believes that its own internal assessment and planning
efforts with respect to external service providers, suppliers, customers and
financial institutions are and will be adequate to address its Year 2000
concerns there can be no assurance that these efforts will be successful or
will not have a material adverse affect on the Company's operations.

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

Not applicable

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

CHANGES IN SECURITIES

Not applicable

USE OF PROCEEDS

Not applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable

ITEM 5.  OTHER INFORMATION

Not applicable

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

Not applicable

<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.

Date: August 10, 1999                  RETROSPETTIVA, INC.
                                       (Registrant)


                                       /s/ Hamid Vaghar
                                       ------------------------------
                                       Hamid Vaghar
                                       Chief Financial Officer
                                       (Principal Accounting Officer)


<PAGE>

                               RETROSPETTIVA, INC.
                                 BALANCE SHEETS
                                   (Unaudited)

                                     ASSETS

<TABLE>
<CAPTION>
                                                                  DECEMBER 31,          JUNE 30,
                                                                     1998                1999
                                                                ---------------------------------
<S>                                                             <C>                 <C>
CURRENT ASSETS
      Cash                                                      $    115,890        $     37,421
      Accounts receivable, net, pledged                            1,716,697           1,691,792
      Due from factor                                                333,053             522,076
      Note receivable                                                100,333             100,333
      Note receivable, stockholder                                   291,738             314,255
      Due from stockholder                                                 -             126,645
      Inventories, pledged                                         8,470,702           7,880,151
      Prepaid income taxes                                            82,016              66,891
      Accrued interest receivable, stockholder                        55,370              71,159
      Due from vendors                                             1,540,791           1,614,674
      Other                                                           74,520              67,812
                                                                ---------------------------------
           Total Current Assets                                   12,781,110          12,493,209
      PROPERTY AND EQUIPMENT, at cost, net                            70,256              68,792
      DEFERRED TAX ASSETS                                             41,000              41,000
      OTHER ASSETS                                                    19,110              19,295
                                                                ---------------------------------
                                                                $ 12,911,476        $ 12,622,296
                                                                ---------------------------------
                                                                ---------------------------------

                         LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
      Accounts payable, trade                                   $  2,024,580        $  1,366,038
      Line of credit                                               1,507,216           1,381,498
      Note payable                                                    26,580                   -
      Accrued expenses                                                97,723              48,490
      Accrued income taxes                                                 -                   -
      Customer advances                                              267,454             267,454
                                                                ---------------------------------
           Total Current Liabilities                               3,923,553           3,063,480
                                                                ---------------------------------

COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock - authorized 1,000,000 shares - none
  issued or outstanding
Common stock - authorized 15,000,000 shares, no par
  value; issued and outstanding 2,900,000 and 3,127,916
  shares, respectively                                             6,258,190           6,258,190
Additional paid-in capital                                           230,000             673,145
Retained earnings                                                  2,499,733           2,627,481
                                                                ---------------------------------
      Total Stockholders Equity                                    8,987,923           9,558,816
                                                                ---------------------------------
                                                                $ 12,911,476        $ 12,622,296
                                                                ---------------------------------
                                                                ---------------------------------
</TABLE>

<PAGE>

                               RETROSPETTIVA, INC.
                              STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED              SIX MONTHS ENDED
                                                             JUNE 30,                     JUNE 30,
                                                      1998           1999            1998            1999
                                                 ------------------------------------------------------------
<S>                                              <C>            <C>             <C>             <C>
SALES                                            $ 6,591,137    $ 2,633,181     $ 14,777,993    $ 10,852,294
                                                 ------------------------------------------------------------
       Total Sales                                 6,591,137      2,633,181       14,777,993      10,852,294

COST OF SALES                                      5,661,787      2,244,244       12,710,669       9,495,970
                                                 ------------------------------------------------------------
GROSS PROFIT                                         929,350        388,937        2,067,323       1,356,324

OPERATING EXPENSES
       Selling expenses                               95,419        164,504          194,337         293,167
       General and administrative                    265,553        376,104          771,199         872,835
                                                 ------------------------------------------------------------
       Total Operating Expenses                      360,972        540,608          965,536       1,166,002
                                                 ------------------------------------------------------------
INCOME FROM OPERATIONS                               568,378       (151,671)       1,101,787         190,322

OTHER INCOME (EXPENSES)
       Interest income                                24,594          1,567           42,333           4,140
       Interest income, related party                 11,803          7,856           23,446          15,788
       Interest expense                              (27,869)       (52,402)         (38,031)        (93,755)
       Other income                                        -         34,755                -          70,252
Net Other Income (Expenses)                            8,528         (8,224)          27,748          (3,575)
                                                 ------------------------------------------------------------
INCOME BEFORE INCOME TAXES                           576,906       (159,895)       1,129,535         186,747

PROVISION FOR INCOME TAXES                           290,000        (75,000)         510,000          59,000
                                                 ------------------------------------------------------------
NET INCOME                                       $   286,906    $   (84,895)    $    619,535    $    127,747
                                                 ------------------------------------------------------------
NET INCOME PER SHARE, BASIC                      $      0.10    $     (0.03)    $       0.21    $       0.04
                                                 ------------------------------------------------------------
                                                 ------------------------------------------------------------
WEIGHTED AVERAGE NUMBERS OF SHARES
       OUTSTANDING, BASIC                          2,900,000      3,121,323        2,900,000       3,050,999
                                                 ------------------------------------------------------------
                                                 ------------------------------------------------------------
NET INCOME PER SHARE, DILUTED                    $      0.09    $     (0.03)    $       0.19    $       0.04
                                                 ------------------------------------------------------------
                                                 ------------------------------------------------------------
WEIGHTED AVERAGE NUMBER OF SHARES
       OUTSTANDING, DILUTED                        3,183,456      3,121,323        3,183,456       3,281,863
                                                 ------------------------------------------------------------
                                                 ------------------------------------------------------------

</TABLE>

<PAGE>

                               RETROSPETTIVA, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                             SIX MONTHS ENDED JUNE 30,
                                                                               1998              1999
                                                                          ------------------------------
<S>                                                                       <C>                 <C>
CASH FLOWS FROM (TO) OPERATING ACTIVITIES
Net income                                                                $    619,535       $  127,748
     Adjustments to reconcile net income to net cash
        provided (used) by operating activities:
        Depreciation and amortization                                           30,888           13,740
        Services provided to reduce note receivable                             30,675
        Changes in:
           Accounts receivable                                               1,112,721           24,905
           Prepaid income taxes                                                      -           15,125
           Due from factor                                                    (152,235)        (189,023)
           Prepaid license fees                                                 26,000                -
           Prepaid expenses                                                      5,024
           Accrued interest receivable, shareholder                            (23,446)         (15,789)
           Advances to vendor                                                 (350,000)         (73,883)
           Advances for sales commission                                       (55,000)               -
           Inventories                                                      (2,624,286)         590,551
           Other                                                               (51,544)           6,523
           Accounts payable and accrued expenses                               324,822         (707,775)
           Accrued income taxes                                                 16,237                -
           License fee payable                                                  17,335
           Letters of credit payable                                           539,000
           Customer advances                                                   112,615                -
                                                                          ------------------------------
                Cash flows provided (used) by operating activities            (421,659)        (207,878)
                                                                          ------------------------------

CASH FLOWS FROM (TO) INVESTING ACTIVITIES:
     Purchase of fixed assets                                                 (363,449)         (12,276)
     Payments on notes receivable                                                    -          (26,580)
                                                                          ------------------------------
                Cash flows provided (used) by investing activities            (363,449)         (38,856)
                                                                          ------------------------------

CASH FLOWS FROM (TO) FINANCING ACTIVITIES:
     Loans to stockholder                                                     (105,466)         (22,517)
     Payments from stockholder                                                  39,862                -
     Proceeds from line of credit                                            1,055,704         (125,718)
     Due to factor                                                                 737                -
     Payments on note payable                                                        -                -
     Proceeds from issuance of common stock                                          -          316,500
                                                                          ------------------------------
                Cash flows provided (used) by financing activities             990,837          168,265
                                                                          ------------------------------

NET INCREASE (DECREASE) IN CASH                                                205,729          (78,469)
CASH IN BANK, beginning of period                                            1,569,905          115,890
                                                                          ------------------------------
CASH IN BANK, end of period                                               $  1,775,634       $   37,421
                                                                          ------------------------------
                                                                          ------------------------------

</TABLE>