marinegrowth_10q-063008.htm

10-Q 1 marinegrowth_10q-063008.htm QUARTERLY REPORT marinegrowth_10q-063008.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(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, 2008

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

For the transition period from ________________ to _______________

333-128077

(Commission file number)

MARINE GROWTH VENTURES, INC.

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

Delaware	20-0890800
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

405-A Atlantis Road

Cape Canaveral, Florida 32920

(Address of principal executive offices)

(321) 783-1744

(Issuer's telephone number)

N/A

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

Indicate by a check mark 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 o

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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: As of August 13, 2008 – 21,839,500 shares of common stock

Indicate by a check mark whether the registrant is (check one):

an accelerated filer o

a non accelerated filer o

or a smaller reporting company x

MARINE GROWTH VENTURES, INC.

FORM 10-Q

QUARTERLY PERIOD ENDED June 30, 2008

TABLE OF CONTENTS

PART 1	FINANCIAL STATEMENTS	3

Item 1.	Financial Statements	3

	Condensed Consolidated Balance Sheet as of June 30, 2008 (Unaudited) and December 31, 2007 (Audited)	3

	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2008 and 2007 (Unaudited)	4

	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2008 and 2007 (Unaudited)	5

	Notes to Condensed Consolidated Financial Statements as of June 30, 2008 (Unaudited)	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	13

Item 4.	Controls and Procedures	13

PART II	OTHER INFORMATION	14

Item 1.	Legal Proceedings	14

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14

Item 3.	Defaults Upon Senior Securities	14

Item 4.	Submission of Matters to a Vote of Security Holders	14

Item 5.	Other Information	14

Item 6.	Exhibits	14

SIGNATURES		19

CERTIFICATIONS

	Certification of CEO Pursuant to 13a-14(a) under the Exchange Act

	Certification of CFO Pursuant to 13a-14(a) under the Exchange Act

	Certification of the CEO Pursuant to 18 U.S.C. Section 1350

	Certification of the CFO Pursuant to 18 U.S.C. Section 1350

PART I – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

Marine Growth Ventures, Inc and Subsidiaries
Consolidated Balance Sheet

ASSETS
	June 30, 2008 (Unaudited)			December 31, 2007 (Audited)
CURRENT ASSETS
Cash	$	2,715		$	-
Accounts Receivable		-			6,000
Other Receivables		-			501
Prepaid Expenses		41			719
Other Receivables, Net of Allowance		-			180,000
Total Current Assets		2,756			187,220

FIXED ASSETS, NET		1,503,480			1,504,301

PREPAID FINANCING COSTS		11,956			20,781

OTHER ASSETS
Accounting Retainer		-			5,000
Other Deposits		2,181			2,181
Loan Reserve		-			67,916
Total Other Assets		2,181			75,097
TOTAL ASSETS	$	1,520,373		$	1,787,399
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accrued Payroll	$	375,969		$	581,414
Accounts Payable		349,090			376,290
Cash Overdraft		-			17,343
Accrued Interest Payable		138,471			135,905
Accrued Expenses		411,568			261,226
Deferred Expenses		-			19,166
Other Payables		-			180,000
Note Payable – Greystone		369,982			270,833
Note Payable – Stockholder		273,050			769,050
Note Payable – Other		665,850			275,500
Total Current Liabilities		2,283,980			2,886,727

LONG TERM LIABILITIES
Greystone Note Payable		1,603,256			1,168,150
Total Long Term Liabilities		1,603,256			1,168,150

TOTAL LIABILITIES		4,187,236			4,054,877
STOCKHOLDERS' DEFICIENCY
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued or outstanding
Common Stock, $0.001 par value, 100,000,000 shares authorized, 21,839,500 issued and outstanding		21,840			21,740
Additional Paid-In Capital		633,473			555,699
Accumulated Deficit		(3,290,250	)		(2,811,864	)
Accumulated Other Comprehensive Income (Loss)		(31,926	)		(33,053	)
Total Stockholders' Deficiency		(2,666,863	)		(2,267,478	)
TOTAL LIABILITIES & STOCKHOLDERS' DEFICIENCY	$	1,520,373		$	1,787,399

See Accompanying Notes to Condensed Consolidated Financial Statements

Marine Growth Ventures, Inc and Subsidiaries
Consoldiated Statement of Operations
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2008			2007			2008			2007
REVENUE
Ship Management Fees and Consulting Income	$	-		$	42,410		$	12,000		$	76,308
Cost of Sales		64,062			-			128,125			-

GROSS PROFIT (LOSS)		(64,062	)		42,410			(116,125	)		76,308

EXPENSES
Payroll and Related Expenses		22,864			88,215			99,324			176,767
Professional Fees		49,360			26,039			99,072			82,273
General and Administrative Expenses		27,262			28,206			41,752			42,992
Selling Expenses		1,206			819			2,566			819
Operating Expenses		105,449			104,855			152,834			122,943
Total Expenses		206,141			248,134			395,548			425,794

LOSS FROM OPERATIONS		(270,203	)		(205,724	)		(511,673	)		(349,486	)

OTHER INCOME (EXPENSE)
Interest		(56,920	)		(53,723	)		(119,305	)		(60,078	)
Loan Service Fee		(4,007	)		-			(12,666	)		-
Sales Tax		-			(1,782	)		(178	)		(82,782	)
Other		169,776			(10,377	)		165,431			(12,234	)
Total Other Expense		108,849			(65,882	)		33,282			(155,094	)

NET LOSS	$	( 161,354	)	$	(271,606	)	$	(478,391	)	$	(504,580	)

Basic and diluted loss per common share	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)

Weighted average number of common shares outstanding - basic and diluted		21,839,500			21,739,500			21,839,500			21,739,500

See Accompanying Notes To Condensed Consolidated Financial Statements

Marine Growth Ventures, Inc and Subsidiaries
Consolidated Statement of Cash Flows
(Unaudited)

	Six Months Ended
	June 30,
	2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(478,391	)	$	(504,581	)
Adjustments to reconcile net loss to net cash
used in operating activities
Depreciation & Amortization		9,646			4,340
Donated Rent & Services		7,874			1,874
Debt Forgiveness		(171,667	)		-
Changes in Operation Assets & Liabilities:
Accounts Receivable		6,000			-
Other Receivables		501			-
Prepaid Expense		5,000			(286	)
Prepaid Insurance		678			732
Cash Overdraft		(17,343	)		-
Accrued Payroll		36,222			111,475
Accounts Payable		(27,200	)		23,271
Other Accounts Payable		-			236
Accrued Interest Payable		2,566			44,456
Accrued Expenses		150,342			35,773
Deferred Expenses		(19,166	)		19,166
Deferred Rent		-			(331	)
Net Cash Used by Operating Activities		(494,938	)		(263,875	)

CASH FLOWS FROM INVESTING ACTIVITIES
Legal Fees on Ship Purchase		-			(69,891	)
Net Cash Provided by Investing Activities		-			(69,891	)

CASH FLOWS FROM FINANCING ACTIVITIES
Loan Costs		-			(13,000	)
Payment on Note Payable – Greystone		106,171			-
Proceeds From Note Payable-Stockholder (net)		-			396,000
Proceeds From Note Payable – Related Party		390,350			-
Net Cash Provided by Financing Activities		496,521			383,000

Currency Conversion Gain/Loss		1,127			(31,236	)

NET INCREASE (DECREASE) IN CASH:		2,715			17,999

BEGINNING CASH		-			3,947

ENDING CASH	$	2,715		$	21,946

SUPPLEMENTAL DISCLOSURES OF CASH ITEMS
Interest Paid	$	23,870		$	-
Income Taxes Paid		-			-
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING & FINANCING ACTIVITES
Line of Credit - Greystone	$	496,000		$	-
Payment on Note Payable – Stockholder		(496,000	)
Purchase of Fixed Assets		-		$	1,350,000
Loan Costs		-			(20,250	)
Loan Reserve		-			(67,916	)
Reserve Legal Fees		-			(61,834	)
Note Payable – Ship Purchase		-			1,500,000
Debt forgiveness of payroll		171,667
APIC		(69,900	)
Common Stock		(100	)
Accrued payroll		241,667

See Accompanying Notes To Condensed Consolidated Financial Statements

Marine Growth Ventures, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

As of June 30, 2008 (Unadudited)

Note 1 – Organization and Operations and Going Concern

Marine Growth Ventures, Inc. (“MGV”) was formed and incorporated in the state of Delaware on November 6, 2003. MGV is a holding company that conducts its operations primarily through a wholly-owned subsidiary, Sophlex Ship Management, Inc. (“Sophlex”). MGV, Sophlex and MGV’s other subsidiaries are referred to collectively herein as the “Company”.

The Company had no significant business operations until its acquisition of Sophlex on September 1, 2004. Sophlex, which was founded in 1999, provides ship crewing and management services to vessel owners and operators in the United States and abroad. The founder and the sole shareholder of Sophlex at the time of the acquisition is the current Chief Operating Officer of the Company. At the time acquisition both companies were private entities.

The Company is currently pursuing additional opportunities with the cruiseship, Pacific Aurora which it purchased in 2007. The Company is working with a maritime lodging company in order to sell condos on the cruise ship that will take weekend tours of the surrounding Pacific coastline. Purchasers may live aboard full-time, cruise only on weekends, rent out their condos as investment income, or any combination which suits their individual purposes.

In addition, the Company is pursuing other opportunities in the shipping industry.

Since its inception, the Company has been dependent upon the proceeds of loans from its stockholders and the receipt of capital investments to fund its continuing activities. The Company has incurred operating losses since its inception. The Company expects to incur significant increasing operating losses over the next several years, primarily due to the expansion of its business. There is no assurance that the Company’s developmental and marketing efforts will be successful. The Company will continue to require the infusion of capital or loans until operations become profitable. There can be no assurance that the Company will ever achieve any revenues or profitable operations from the sale of its proposed products. The Company is seeking additional capital at this time. During the six months ended June 30, 2008, the Company had a net loss of $478,391 and a negative cash flow from operations of $494,938 and as June 30, 2008, the Company had a working capital deficiency of $2,281,224 and a stockholders’ deficiency of $2,666,863. As a result of the above, the accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Note 2 - Summary of Significant Accounting Policies

(A)	Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Marine Growth Ventures, Inc. and its wholly-owned subsidiaries, Marine Growth Finance & Charter, Inc., Inc., Sophlex Ship Management, Inc., Marine Growth Freight, Inc., Marine Aggregates, Inc., Gulf Casino Cruises, Inc., Ship Timeshare Management, Inc., Marine Growth Canada, Ltd., Fractional Marine, Inc., Cruiseship Share Owners Association, Inc. and Pacific Aurora Cruise Association, Inc. All material inter-company accounts and transactions have been eliminated in consolidation.

(B)	Use of Estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates.

(C)	Loss per Share

Net loss per share (basic and diluted) has been computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during each period. Common stock equivalents were not included in the calculation of diluted loss per share as there were none outstanding during the periods presented as well as their effect would be anti-dilutive.

(D)	Interim Condensed Consolidated Financial Statements

The condensed consolidated financial statements as of June 30, 2008 and for the six months ended June 30, 2008 and 2007 are unaudited. In the opinion of management, such condensed consolidated financial statements include all adjustments (consisting of normal recurring accruals) necessary for the fair representation of the consolidated financial position and the consolidated results of operations. The consolidated results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year end December 31, 2007 appearing in Form 10K-SB filed on April 11, 2008.

(E)	Recent Accounting Pronouncements

In the opinion of management, there are no recent accounting pronouncements that will have a material effect the Company’s consolidated financial statements.

Note 3- Related Party Transactions

Revolving Note “A” issued on January 5, 2006

For the period ended June 30, 2008 the company renegotiated the maturity date from February 20, 2008 to December 15, 2008. The balance at June 30, 2008 was $370,362 ($273,050 in principal and $97,312 in accrued interest).

Revolving Note “B” issued on August 1, 2007

The Company increased the availability on the revolving note to $750,000. The balance at June 30, 2008 was $697,621 ($665,850 in principal and $31,771 in accrued interest).

The Company utilizes space in Milwaukee, Wisconsin owned by an entity controlled by the Chairman of the Board of Directors. The fair market value of this rent is $250 per month and is recorded as $1500 rent expense and a corresponding related party liability for the six month ended June 30, 2008 and 2007. On June 30, 2008, this debt was forgiven and converted into additional paid in capital.

The Company utilizes employees of an entity controlled by the Chairman of the Board of Directors. The value of the work done by the employees of the entity controlled by the Chairman of the Board of Directors equated to $6,375 during the six months ending June 30, 2008. These services and a corresponding related party liability was recorded. On June 30, 2008, this debt was forgiven and converted into additional paid in capital.

Note 4 – Fixed Assets

Fixed assets as of June 30, 2008 consisted of:

Office Furniture	$	1,286
Computer Equipment		1,827
Ship		1,481,725
Ship Furnishings		20,364
Less: Accumulated Depreciation		(1,721	)
Fixed Assets, net	$	1,503,480

Depreciation expense for the six months ended June 30, 2008 and 2007 amounted to $137 and $103, respectively. No depreciation has been taken on the ship, as it was not yet operational as of June 30, 2008.

Note 5 – M/V Babe

Per the modification letter dated June 12, 2008, on July 1, 2008 there was an extinguishment of the bareboat lease of the yacht Babe between Lender and Fractional, on July 1, 2008 Fractional Marine took title to the Babe for the purchase price of $2,289,926. The Company is required to pay interest only on all obligations owing under the Loan until October 15, 2008 at which time principal will be amortized over forty-eight months.

Note 6 – Greystone Business Credit II, LLC

To obtain funding for the purchase the Pacific Aurora, a Canadian flagged vessel, on March 27, 2007, Marine Growth Canada, Ltd. and Marine Growth Finance & Charter, Inc., wholly-owned subsidiaries of Marine Growth Ventures, Inc., entered into a Loan and Security Agreement with Greystone Business Credit II LLC. Pursuant to the terms of the Loan and Security Agreement, Marine Growth Canada, Ltd. and Marine Growth Finance & Charter, Inc. issued a Term Note to Greystone Business Credit II, LLC in the aggregate principal amount of $1,500,000 for a term of two years. The Term Note bears interest at a rate of 2.25%, plus the prime interest rate. The principal is being amortized over six years with a balloon payment in two years.

Marine Growth Canada, Ltd. and Marine Growth Finance & Charter, Inc. granted a security interest in all of its assets, including the Pacific Aurora, to Greystone Business Credit II, LLC as security for the financing facility. Marine Growth Canada, Ltd., and Marine Growth Finance & Charter, Inc. paid a commitment fee of $22,500 and will pay a loan servicing fee of .2% each month based on the outstanding principal of the Term Note.

In addition, the Company executed a Guaranty in favor of Greystone Business II, LLC to guaranty the full payment of all obligations due under the Term Note. Interest expense of $33,065 and loan services fees of $8,659 were recorded for the period ended June 30, 2008. In conjunction with this, a stockholder, who is also the majority member of the LLC that is the majority owner of the Company, pledged 300,000 shares of his common stock of an unrelated public company.

In June, 2008, Greystone Business Credit II and the Company agreed for Greystone Business Credit II to make additional advances to the Company under the Loan to increase the aggregate loans outstanding thereunder up to the following; (i) the lesser of 72.5% of the appraised fair market value of the yacht Aurora (net of appraisal, documentation and other related expenses) and (ii) $3,200,000. This money is to be used to repay the monies owed with respect to Revolving Note A. Any remaining unfunded availability may be used as working capital. The Company is required to pay interest only on all obligations owing under the Loan until October 15, 2008 at which time it begins amortization of the loan principal over forty-eight months. In addition, all net time-share revenues generated by the Pacific Aurora shall be applied as mandatory prepayments to reduce principal on such loan pursuant to the release prices agreed upon by Greystone Business Credit and the Company. The Modification Letter also provides for the extinguishment of the bareboat lease of the yacht Babe between Lender and Fractional on July 1, 2008 and for the Company to purchase the Babe. (See Note 5).

As of June 30, 2008, the Company is past due in its payments to Greystone Business II, LLC. The balance on the notes as of June 30, 2008 is $1,973,238.

Note 7 – Subsequent Events

On July 1, 2008, per the modification letter dated June 12, 2008, there was an extinguishment of the bareboat lease of the yacht Babe between Lender and Fractional on July 1, 2008 and Fractional Marine took title to the Babe for the purchase price of $2,289,926. (See Note 5)

The company has changed its intentions with the cruise ship Pacific Aurora. In prior months, the company was attempting to develop cruise vessels for a new industry referred to as cruise timeshares, which combines the concept of traditional real estate timeshares with commercial cruise vacations. Purchasers of cruise timeshares would receive the right to a seven-day cruise each year for up to a period of 15 years aboard a cruise ship purchased by the Company. The Company is now working with a maritime lodging company in order to sell condos on the cruise ship that will take weekend tours of the surrounding Pacific coastline. Purchasers may live aboard full-time, cruise only on weekends, rent out their condos as investment income, or any combination which suits their individual purposes.

ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS

Forward-Looking Statements

This Quarterly Report of Form 10-Q, including this discussion and analysis by management, contains or incorporates forward-looking statements. All statements other than statements of historical fact made in report are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. These forward-looking statements can be identified by the use of words such as “believes,” “estimates,” “could,” “possibly,” “probably,” anticipates,” “projects,” “expects,” “may,” “will,” or “should” or other variations or similar words. No assurances can be given that the future results anticipated by the forward-looking statements will be achieved. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations. The potential risks and uncertainties that could cause our actual results to differ materially from those expressed or implied herein are set forth in our Annual Report on Form 10-KSB for the year ended December 31, 2007.

The following discussion and analysis should be read in conjunction with our financial statements, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management.

Background

We were formed and incorporated in the state of Delaware on November 6, 2003. We are a holding company and conduct our current operations solely through a wholly-owned subsidiary, Sophlex Ship Management, Inc. (“Sophlex”).

We had no significant business operations until our acquisition of Sophlex on September 1, 2004. Sophlex, which was founded in 1999, provides ship crewing and management services to vessel owners and operators in the United States and abroad. Our Chief Operating Officer was the founder and the sole shareholder of Sophlex prior to the acquisition.

We are also currently pursuing additional opportunities with the cruiseship, Pacific Aurora which it purchased in 2007. The Company is working with a maritime lodging company in order to sell condos on the cruise ship that will take weekend tours of the surrounding Pacific coastline. Purchasers may live aboard full-time, cruise only on weekends, rent out their condos as investment income, or any combination which suits their individual purposes.

Results of Operations

Since our inception, we have been dependent upon the proceeds of loans from our stockholders and the receipt of capital investment to fund our continuing activities. We have incurred operating losses since our inception. We expect to incur significant increasing operating losses over the next several years, primarily due to the expansion of our business. We will continue to require the infusion of capital until operations become profitable. Presently, we have no commitments to provide such capital. We had a net loss of $478,391 and a negative cash flow from operations of $494,938 for the six months ended June 30, 2008.

Three Months Ended June 30, 2008 and 2007:

Revenue: Revenue was $0 for the three months ended June 30, 2008 compared to $42,410 earned in the three months ended June 30, 2007. In the three months ended June 30, 2008, the company had no revenue. As of July 1, 2008, the Company began marketing the sales on condos on the ship.

Payroll and Related Expenses: Payroll and related expenses were $22,864 for the three months ended June 30, 2008 compared to $88,215 for the three months ended June 30, 2007. The decrease of $65,351 was due to the majority of the officers waiving their payroll as of March 1, 2008 and will continue to do so until the Company has sustainable revenues.

Professional Fees: Professional fees were $49,360 for the three months ended June 30, 2008 compared to $26,039 for the three months ended June 30, 2007. The net increase of $23,321 is due in increase in accounting fees of $7,312, legal fees of $14,381, and other professional fees of $1,627. The accounting fees have increased due to the timing of the filing of the 10k. The legal and other professional fees increased because the Company was pursuing opportunities in a new industry referred to as cruise timeshares, which combines traditional real estate timeshares with commercial cruise vacations. The Company is now is working with a maritime lodging company in order to sell condos on the cruise ship that will take weekend tours of the surrounding Pacific coastline. This change in focus will require the continued investment in professional fees.

General and Administrative Expenses: General and administrative expenses were $27,262 and $28,206 for the three months ended June 30, 2008 and 2007, respectively. General and administrative expenses decreased by $944 in the three months ended June 30, 2008 as compared to the three months ended June 30, 2007. This difference is mainly due to the increase in bad debt of $12,000 offset by a decrease in travel of $9,857.

Operating Expenses: Operating expenses were $105,449 for the three months ended June 30, 2008 compared to $104,855 for the three months ended June 30, 2007. Operating expenses remained relatively stable for both periods.

Other Income (Expenses): Other Income was $108,849 for the three months ended June 30, 2008 and other expenses was ($65,882) for the three months ended June 30, 2007. Other income (expenses) increased by $174,731 for the three months ended June 30, 2008. For the three months ended June 30, 2008, the Company had debt forgiveness income of $171,667 due to an officer waiving a portion of their accrued payroll.

Net Loss: Net loss before income taxes was $161,354 and $271,606 for the three months ended June 30, 2008 and 2007, respectively. The decrease in net loss is attributed to debt forgiveness income in the three months ending June 30, 2008.

Six Months Ended June 30, 2008 and 2007:

Revenue: Revenue was $0 for the six months ended June 30, 2008 compared to $76,308 earned in the six months ended June 30, 2007. In the six months ended June 30, 2008, the company had no revenue. As of July 1, 2008, the Company began marketing the sales on condos on the ship.

Payroll and Related Expenses: Payroll and related expenses were $99,324 for the six months ended June 30, 2008 compared to $176,767 for the six months ended June 30, 2007. The decrease of $77,443 was due to the majority of the officers waiving their payroll as of March 1, 2008 and will continue to do so until the Company has sustainable revenues.

Professional Fees: Professional fees were $99,072 for the six months ended June 30, 2008 compared to $82,273 for the six months ended June 30, 2007. The increase of $16,799 is mainly due to a decrease in accounting fees of $10,265, and an increase of legal $19,921 and consulting fees of $7,800. The accounting fees decreased due to a switch in auditors and the increase of the legal and consulting fees is because the Company was pursuing opportunities in a new industry referred to as cruise timeshares, which combines traditional real estate timeshares with commercial cruise vacations. The Company is now is working with a maritime lodging company in order to sell condos on the cruise ship that will take weekend tours of the surrounding Pacific coastline. This change in focus will require the continued investment in professional fees.

General and Administrative Expenses: General and administrative expenses were $41,752 and $42,992 for the six months ended June 30, 2008 and 2007, respectively. General and administrative expenses decreased by $1,240 in the three months ended June 30, 2008 as compared to the three months ended June 30, 2007. This difference is mainly due to the increase in bad debt by $12,000 offset by a decrease in travel of $12,628.

Operating Expenses: Operating expenses were $152,834 for the six months ended June 30, 2008 compared to $122,943 for the six months ended June 30, 2007. This increase of $29,891 was due to the operating expenses of the Pacific Aurora.

Other Income (Expenses): Other Income was $33,282 for the six months ended June 30, 2008 and other expenses was ($155,094) for the six months ended June 30, 2007. Other income (expenses) increased by $188,376 for the six months ended June 30, 2008. For the six months ended June 30, 2008, the Company had debt forgiveness income of $171,667 due to an officer waiving a portion of their accrued payroll.

Net Loss: Net loss before income taxes was $478,391 and $504,580 for the six months ended June 30, 2008 and 2007, respectively. The decrease in net loss is attributed to the decrease in expenses related to the purchase of the M/V Pacific Aurora.

Liquidity and Capital Resources

For the six months ended June 30, 2008, we had a negative cash flow from operations of $494,938 compared to a negative cash flow of $263,875 as of June 30, 2007, an increase in the negative cash flow of $231,063. Since inception, we have been dependent upon proceeds of loans from our stockholders and receipt of capital investment to fund our continuing activities.

For the six months ended June 30, 2008, we had a net loss of $478,391 compared to a net loss of $504,580 for the six months ended June 30, 2007, a decrease in the net loss of $26,189.

For the six months ended June 30, 2008, the majority of the officers waived their payroll as of March 1, 2008 and will continue to do so until the Company has sustainable revenues.

For the period ended June 30, 2008, the company renegotiated the maturity date from February 20, 2008 to December 15, 2008 on Revolving Note “A” issued on January 5, 2006. The balance at June 30, 2008 was $370,362 ($273,050 in principal and $97,312 in accrued interest). $496,000 was paid down from the proceeds from the June 12 Modification Agreement with Greystone Business Credit II.

In June, 2008, Greystone Business Credit II and the Company agreed for Greystone Business Credit II to make additional advances to the Company under the Loan to increase the aggregate loans outstanding there under up to the following; (i) the lesser of 72.5% of the appraised fair market value of the yacht Aurora (net of appraisal, documentation and other related expenses) and (ii) $3,200,000. This money is to be used to repay the monies owed with respect to Revolving Note A. Any remaining unfunded availability may be used as working capital. The Company is required to pay interest only on all obligations owing under the Loan until October 15, 2008 at which time it begin amortization of the loan principal over forty-eight months. In addition, all net time-share revenues generated by the Pacific Aurora shall be applied as mandatory prepayments to reduce principal on such loan pursuant to the release prices agreed upon by Greystone Business Credit and the Company. The Modification Letter also provides for the extinguishment of the bareboat lease of the yacht Babe between Lender and Fractional on July 1, 2008 and for the Company to purchase the Babe.

The Company increased the availability on the Revolving Note “B” issued on August 1, 2007, to $750,000. The balance at June 30, 2008 was $697,621 ($665,850 in principal and $31,771 in accrued interest)

We currently do not have sufficient cash reserves to meet all of our anticipated obligations for the next twelve months and there can be no assurance that we will ultimately close on the necessary financing. In addition to any third-party financing we may obtain, we currently expect that loans from our stockholders may be a continuing source of liquidity to fund our operations. Accordingly, we will need to seek funding in the near future. In view of the forgoing, there are no assurances that we can or will continue as a going concern.

Our ability to continue as a going concern is dependent on our ability to obtain additional funds through debt and equity funding as well as from sales of various services. The Company expects to begin condo sales in the 3rd quarter of 2008, which is expected to produce positive income and cash flow for the company. However, we cannot be assured that there will be buyers interest in acquiring the condos or the volume or timing of such sales, or any. With these sales the Company anticipates that it will become less reliant on short-term financing.

Off-Balance Sheet Arrangements

The Company does not have any off balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, revenues, results of operations, liquidity or capital expenditures.

Critical Accounting Policies

Going Concern:

Our ability to continue as a going concern is dependent on our ability to obtain additional funds through debt and equity funding as well as from sales of various services. The Company expects to begin condo sales in the 3rd quarter of 2008, which is expected to produce positive income and cash flow for the company. With these sales the Company anticipates that it will become less reliant on short-term financing.

Revenue Recognition

The Company recognizes ship management and consulting revenue when earned. At the time of the transaction, the Company assesses whether the fee is fixed and determinable based on the payment terms associated with the transaction and whether collectibility is reasonably assured. If a significant portion of a fee is due after the normal payment terms, the Company accounts for the fee as not being fixed and determinable. In these cases, the Company recognizes revenue as the fees become due. Where the Company provides a service at a specific point in time and there are no remaining obligations, the Company recognizes revenue upon completion of the service. The Company recognizes charter revenue on the first of the month when the fee is billed.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK - None

ITEM 4 – CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by this report, we have carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures. Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated our disclosure controls and procedures and internal control over financial reporting and concluded that (i) our disclosure controls and procedures were effective as of June 30, 2008 and (ii) no change in internal controls over financial reporting occurred during the quarter ended June 30, 2008, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Disclosure controls and procedures and other procedures are designed to ensure that information required to be disclosed in our reports or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time period specified in the Securities and Exchange Commission’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 Securities Exchange Act of 1934 is accumulated and communicated to management including our president and financial officer as appropriate, to allow timely decisions regarding required disclosure.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings - None

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds - None

Item 3. Defaults Upon Senior Securities - None

Item 4. Submission of Matters to a Vote of Security Holders - None

Item 5. Other Information

On January 5, 2006 the Company entered into a Revolving Note (“Note A”) with an aggregate principal amount of $50,000 to Frank Crivello. Funds are advanced to us as needed to pay for ongoing operations. Note 1 had a maturity date of June 30, 2006. As a result of eleven amendments to Note 1, the principal amount of Note 1 was increased to $800,000 and the maturity date of Note 1 was extended to February 20, 2009. Note 1 has an interest rate of 10% and as of June 30, 2008, the principal balance was $273,050.

On August 1, 2007, the Company issued a revolving note (“Note B”), with an aggregate principal amount of $100,000 to an entity that is controlled by the Chairman of the Board of Directors. Funds are advanced to the Company, as needed, to finance ongoing operations. Note 2 had a maturity date of July 31, 2008. It has been agreed that the maturity date will extend to December 31, 2008 unless the lender notifies the borrower, in writing, thirty days prior to the maturity date. Note B bears an interest rate of 10%. On September 6, 2007 a first amendment was issued on Note B increasing the aggregate amount to $200,000. On November 27, 2007 a second amendment was issued on Note B increasing the aggregate amount to $300,000. On January 4, 2008 a third amendment was issued on Note B increasing the aggregate amount to $400,000. On February 11, 2008 a fourth amendment was issued on Note B increasing the aggregate amount to $500,000. On April 16, 2008, a fifth amendment was issued on Note B increasing the aggregate amount to $650,000, confirming the maturity date of Note B as December 31, 2008 and waiving all accrued and unpaid interest on Note B in the event of a repayment of Note B in full prior to September 30, 2008. On June 25, 2008, a sixth amendment was issued on Note B increasing the aggregate amount to $750,000. The principal balance on Note 2 was $665,850 as of June 30, 2008.

Per the Modification Letter dated June 12, 2008, Greystone Business Credit II and the Company agreed for Greystone Business Credit II to make additional advances to the Company under the Loan to increase the aggregate loans outstanding there under up to the following; (i) the lesser of 72.5% of the appraised fair market value of the yacht Aurora (net of appraisal, documentation and other related expenses) and (ii) $3,200,000. This money is to be used to repay the monies owed with respect to Revolving Note A. Any remaining unfunded availability may be used as working capital. The Company is required to pay interest only on all obligations owing under the Loan until October 15, 2008 at which time it begins amortization of the loan principal over forty-eight months. In addition, all net time-share revenues generated by the Pacific Aurora shall be applied as mandatory prepayments to reduce principal on such loan pursuant to the release prices agreed upon by Greystone Business Credit and the Company. The Modification Letter also provides for the extinguishment of the bareboat lease of the yacht Babe between Lender and Fractional on July 1, 2008 and for the Company to purchase the Babe.

Item 6. Exhibits

Number Description

3.1	Registrant's Certificate of Incorporation (incorporated by reference to the exhibits to Registrant’s Form SB-2 filed on September 2, 2005).

3.2	Certificate of Amendment to Registrant's Certificate of Incorporation (incorporated by reference to the exhibits to Registrant’s Form SB-2 filed on September 2, 2005).

3.3	Certificate of Amendment to Registrant's Certificate of Incorporation (incorporated by reference to the exhibits to Registrant’s Form SB-2 filed on September 2, 2005).

3.4	Certificate of Amendment to Registrant's Certificate of Incorporation (incorporated by reference to the exhibits to Registrant’s Form SB-2 filed on September 2, 2005).

3.5	Registrant's By-Laws (incorporated by reference to the exhibits to Registrant’s Form SB-2 filed on September 2, 2005).

5.1	Opinion of Sichenzia Ross Friedman Ference LLP (incorporated by reference to Exhibit 5.1 to Registrant’s Form SB-2/A filed on April 14, 2006).

10.1	Employment agreement dated July 1, 2004 between the Registrant and Craig Hodgkins (incorporated by reference to the exhibits to Registrant’s Form SB-2 filed on September 2, 2005).

10.2	Employment agreement dated July 1, 2004 between the Registrant and Capt. Timothy Levensaler (incorporated by reference to the exhibits to Registrant’s Form SB-2 filed on September 2, 2005).

10.3	Seaman Engagement Contract between Sophlex Ship Management Co. Ltd. And Xiamen Zhonglianyang Seaman Service Co., Ltd. (incorporated by reference to Exhibit 10.3 to Registrant’s Form SB-2/A filed on April 14, 2006).

10.4	$500,000.00 Revolving Secured Note, dated May 5, 2004, issued by Marine Growth Ventures Inc., Marine Growth Charter, Inc., Marine Growth Finance, Inc., Marine Growth Freight, Inc., Marine Growth Real Estate, Inc. and Gulf Casino Cruises, Inc. to Frank P. Crivello (incorporated by reference to Exhibit 10.4 to Registrant’s Form SB-2/A filed on April 14, 2006).

10.5	$2,00,000.00 Promissory Note, dated October 21, 2004, issued by King Crown International Co. Ltd. to Marine Growth Finance, Inc. (incorporated by reference to Exhibit 10.5 to Registrant’s Form SB-2/A filed on April 14, 2006).

10.6	Settlement Stipulation, dated April 7, 2005, between King Crown International Co. Ltd., Marine Growth Finance, Inc., Oceans Five Cruises, Inc. and Lee Young Union Ltd. (incorporated by reference to Exhibit 10.6 to Registrant’s Form SB-2/A filed on April 14, 2006).

10.7	$50,000.00 Revolving Note, dated January 5, 2006, issued by Marine Growth Ventures Inc., Marine Growth Charter, Inc., Marine Growth Finance, Inc., Marine Growth Freight, Inc., Marine Growth Real Estate, Inc. and Gulf Casino Cruises, Inc. to Frank P. Crivello (incorporated by reference to Exhibit 10.1 to Form 10-QSB filed on March 31, 2006).

10.8	Sale and Purchase Agreement, by and between British Columbia Discovery Voyages, Inc., T. Jones Enterprises, Inc. and Trevor Jones, as sellers, and Marine Growth Ventures, Inc., as buyer. (incorporated by reference to Exhibit 10.1 of Form 8-K filed March 28, 2007)

10.9	Loan and Security Agreement between Greystone Business Credit II LLC, Marine Growth Canada, Ltd. and Marine Growth Finance & Charter, Inc., dated as of March 27, 2007 (incorporated by reference to Exhibit 10.2 of Form 8-K filed March 28, 2007)

10.10	Guaranty in favor of Greystone Business Credit II LLC, by and among Marine Growth Ventures, Inc., Marine Growth Canada, Ltd. and Marine Growth Finance & Charter, Inc., dated as of March 27, 2007 (incorporated by reference to Exhibit 10.3 of Form 8-K filed March 28, 2007)

10.11	Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.4 of Form 8-K filed March 28, 2007)

10.12	First Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.5 of Form 8-K filed March 28, 2007)

10.13	Second Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.6 of Form 8-K filed March 28, 2007)

10.14	Third Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.7 of Form 8-K filed March 21, 2007)

10.15	Forth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.8 of Form 8-K filed March 28, 2007)

10.16	Fifth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.9 of Form 8-K filed March 28, 2007)

10.17	Sixth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello. (incorporated by reference to Exhibit 10.10 of Form 8-K filed March 28, 2007)

10.18	Seventh Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.11 of Form 8-K filed March 28, 2007)

10.19	Share Ship Agreement, date April 11, 2007, by and between Euro Oceans, Ltd., Marine Growth Ventures, Inc., Marine Growth Canada, Ltd., Sophlex Ship Management, Inc. and Ship Timeshare Management, Inc. (incorporated by reference to Exhibit 10.1 of Form 8-K filed April 17, 2007)

10.20	Eighth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.1 of Form 8-K filed May 17, 2007)

10.21	Ninth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.10 of Form 8-K filed July 5, 2007)

10.22	Bareboat Charter by and between Fractional Marine, Inc. and Greystone Maritime Holdings LLC, dated July 30, 2007 (incorporated by reference to Exhibit 10.1 of Form 8-K filed August 7, 2007)

10.23	Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated August 1, 2007 (incorporated by reference to Exhibit 10.2 of Form 8-K filed August 7, 2007)

10.24	First Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated September 6, 2007 (incorporated by reference to Exhibit 10.2 of Form 8-K filed September 10, 2007)

10.25	Tenth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello (incorporated by reference to Exhibit 10.11 of Form 8-K filed September 25, 2007)

10.26	Second Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated November 27, 2007 (incorporated by reference to Exhibit 10.3 of Form 8-K filed November 28, 2007)

10.27	Third Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated January 4, 2008 (incorporated by reference to Exhibit 10.4 of Form 8-K filed January 8, 2008)

10.28	Forth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated February 11, 2008 (incorporated by reference to Exhibit 10.5 of Form 8-K filed February 14, 2008)

10.29	Fifth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated April 16, 2008 (incorporated by reference to Exhibit 10.6 of Form 8-K filed April 17, 2008).

10.30	Eleventh Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Frank P. Crivello, dated March 19, 2008 (filed herewith)

10.31	Third Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated January 4, 2008 (incorporated by reference to Exhibit 10.4 of Form 8-K filed January 8, 2008)

10.32	Forth Amendment to Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated February 11, 2008 (incorporated by reference to Exhibit 10.5 of Form 8-K filed February 14, 2008)

10.32	Fifth Amendment to the Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated April 16, 2008 (incorporated by reference to Exhibit 10.6 of Form 8-K filed April 16, 2008)

10.33	Sixth Amendment to the Revolving Note by and among Marine Growth Ventures, Inc., its subsidiaries and Irrevocable Children’s Trust, dated June 25, 2008 (incorporated by reference to Exhibit 10.7 of Form 8-K filed June 26, 2008)

10.34	Modification lf Agreement dated June 12, 2008 (incorporated by reference to Exhibit 10.1 of Form 8-k filed August 11, 2008)

31.1	Certification of CEO Pursuant to 13a-14(a) under the Exchange Act

31.2	Certification of the CFO Pursuant to 13a-14(a) under the Exchange Act

32.1	Certification of the CEO pursuant to 18 U.S.C Section 1350

32.2	Certification of the CFO pursuant to 18 U.S.C. Section 1350

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, thereunto duly authorized.

	MARINE GROWTH VENTURES, INC.

Dated: August 14, 2008	By:	/s/ Craig Hodgkins
		Craig Hodgkins
		President and Director (Principal Executive Officer)


Dated: August 14, 2008	By:	/s/ Katherine Ostruszka
		Katherine Ostruszka
		Chief Financial Officer and Controller (Principal Financial Officer)