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<p class=MsoTitle align="center">SECURITIES AND EXCHANGE
COMMISSION<br>
Washington, D.C.&nbsp; 20549</p>



<p class=MsoNormal align=center style='text-align:center'>FORM 8-K</p>



<p class=MsoNormal align=center style='text-align:center'>CURRENT REPORT<br>
PURSUANT TO SECTION 13
OR 15(d) OF THE<br>
SECURITIES EXCHANGE ACT
OF 1934</p>







<p class=MsoNormal style='text-align:justify'>Date of report (Date of earliest event
reported):<u>&nbsp; February 6, 2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>





<p class=MsoNormal align="center"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Home Solutions of America, Inc.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Exact name
of registrant as specified in its charter)</p>

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<p class=MsoNormal>Delaware</p>

      </td>
      <td width="255" align="center">0-22388</td>
      <td width="222" align="center"><u>&nbsp;99-0273889&nbsp;&nbsp; </u></td>
    </tr>
    <tr>
      <td width="280" align="center" valign="top">

<p class=MsoNormal>&nbsp;&nbsp;&nbsp; (State or other jurisdiction <br>
of&nbsp; incorporation)&nbsp;&nbsp; </p>

      </td>
      <td width="255" align="center" valign="top">(Commission File Number) </td>
      <td width="222" align="center" valign="top">(IRS Employer<br>
      Identification No.)</td>
    </tr>
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<p class=MsoNormal style='text-align:justify'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11850 Jones Road, Houston Texas&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77070&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Zip
Code)</p>







<p class=MsoNormal style='text-align:justify'>Registrant's telephone number, including area
code:<u>&nbsp;&nbsp; (281) 970-9859&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>







<hr color="#000080"><br clear=all style='page-break-before:always'>


<p class=MsoNormal style='text-align:justify'><b>Item 2.&nbsp; Acquisition or Disposition of Assets.</b></p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On February 6, 2004, Home Solutions
of America, Inc., a Delaware corporation (the &quot;Company&quot;), consummated the
acquisition of (i) 100% of Southern Exposure Unlimited of Florida, Inc., a
Florida corporation (&quot;Southern Exposure&quot;), (ii) 100% of S.E. Tops of Florida,
Inc., a Florida corporation (&quot;S.E. Tops&quot;), and (iii) 50% of SouthernStone
Cabinets, Inc., a Florida corporation (&quot;SouthernStone&quot;) (collectively, the &quot;SE
Companies&quot;).&nbsp; The acquisition of Southern Exposure and S.E. Tops was structured
as separate mergers into wholly-owned subsidiaries of the Company, and the 50%
interest in SouthernStone was acquired through a stock purchase, all pursuant
to a Plan of Merger and Stock Purchase Agreement dated February 6, 2004,
effective as of December 31, 2003 (the &quot;Merger Agreement&quot;).&nbsp; The Company's equity
holdings in the SE Companies are held by Southern Exposure Holdings, Inc., a
Florida corporation and wholly-owned subsidiary of the Company (&quot;Holdings&quot;).&nbsp;
The SE Companies, which have headquarters in Fort Myers, Florida, are engaged
in the businesses of manufacturing and installing custom cabinetry and
countertops for resale to home builders and residential customers.</p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company paid the individual who
was the sole stockholder of Southern Exposure and S.E. Tops, and 50% owner of SouthernStone
(the &quot;Seller&quot;), the following consideration for his interests in the SE
Companies:&nbsp; (i) $2,500,000 of the Company's common stock (the &quot;Shares&quot;), valued
at the average per share closing price of the Company's common stock over the
fifteen trading days prior to closing, the closing date, and the fifteen trading
days thereafter, excluding the five highest and five lowest days from such
calculation, (ii) a subordinated promissory note of Holdings in the original principal
amount of $4,500,000, which requires quarterly payments equal to the greater of
60% of the net cash flow of the SE Companies or the payment that would result
from a 10-year amortization schedule, secured by all of the stock of the SE
Companies and the assets of the two 100%-owned SE Companies, and guaranteed by
the Company, (iii) a subordinated promissory note of Holdings in the original principal
amount of $1,468,189.26, secured by certain accounts receivable of the SE
Companies, and (iv) $2,000,000 cash.&nbsp; The cash portion was financed through the
Company's $4.0 million line of credit from the Laurus Master Fund, Ltd., which
closed on January 22, 2004, and is secured by all of the Company's assets,
including the assets of its subsidiaries.</p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Seller will continue to manage the
SE Companies pursuant to an employment agreement with the Company and Holdings.</p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Shares have not been, and will
not be, registered under the Securities Act of 1933, as amended (the &quot;Act&quot;),
and may not be offered for sale or sold absent registration under the Act or an
applicable exemption from the registration requirements of the Act.&nbsp; The
Company granted the Seller certain registration rights in connection with the
issuance of the Shares.</p>



<p class=MsoNormal style='text-align:justify;text-indent:.5in'>The descriptions
contained herein of these acquisitions and the Merger Agreement are qualified
in their entirety by reference to the full text of the Merger Agreement and certain
ancillary agreements which are filed as Exhibits 2.1 through 2.6, respectively,
to this Report and incorporated herein by this reference. </p>



<p class=MsoNormal style='text-align:justify'><b>Item 5.&nbsp; Other Events.</b></p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The press release issued by the
Company that announced the acquisitions described above is attached hereto as
Exhibit 99.1.</p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As the Company has previously
announced, on January 22, 2004, the Company obtained a $4.0 million credit
facility form the Laurus Master Fund, Ltd., which is secured by all of the
Company's assets.</p>







<hr color="#000080">
<p><br clear=all style='page-break-before:always'>


</p>



<p class=MsoNormal style='text-align:justify'>&nbsp;</p>



<p class=MsoNormal style='text-align:justify'><b>Item 7.&nbsp; Financial Statements and Exhibits.</b></p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is impractical to
furnish the required financial statements at this time.&nbsp; The financial
statements will be filed under cover of Form 8-K/A on or before April 9, 2004.</p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is impractical to
furnish the required pro forma financial information at this time.&nbsp; The
requisite pro forma financial information will be filed under cover of Form
8-K/A on or before April 9, 2004.</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
-.5in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Exhibits</u>.&nbsp; </p>



<p class=MsoNormal style='margin-left:1.5in;text-align:justify;text-indent:
-.5in'>2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plan
of Merger and Stock Purchase Agreement, dated February 6, 2004, by and among Home
Solutions of America, Inc., Southern Exposure Holdings, Inc., S.E. Acquisition
Corp. I, S.E. Acquisition Corp. II, Southern Exposure Unlimited of Florida,
Inc., S.E. Tops of Florida, Inc., Dale W. Mars, and Dale W. Mars, Trustee for
the Dale W. Mars Trust Dated 7-16-97.</p>



<p class=MsoNormal style='margin-left:1.5in;text-align:justify;text-indent:
-.5in'>2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Registration
Rights Agreement, dated February 6, 2004, by and between Home Solutions of
America, Inc. and Dale W. Mars.</p>



<p class=MsoNormal style='margin-left:1.5in;text-align:justify;text-indent:
-.5in'>2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated
Promissory Note, in the original principal amount of $4,500,000, issued by
Southern Exposure Holdings, Inc. to Dale W. Mars, Trustee for the Dale W. Mars
Trust Dated 7-16-97.</p>



<p class=MsoNormal style='margin-left:1.5in;text-align:justify;text-indent:
-.5in'>2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated
Promissory Note, in the original principal amount of $1,468,189.26, issued by
Southern Exposure Holdings, Inc. to Dale W. Mars, Trustee for the Dale W. Mars
Trust Dated 7-16-97.</p>



<p class=MsoNormal style='margin-left:1.5in;text-align:justify;text-indent:
-.5in'>2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pledge
and Security Agreement, dated February 6, 2004, by and among Southern Exposure
Holdings, Inc., S.E. Acquisition Corp. I, S.E. Acquisition Corp. II, Dale W.
Mars, and Dale W. Mars, Trustee for the Dale W. Mars Trust Dated 7-16-97.</p>



<p class=MsoNormal style='margin-left:1.5in;text-align:justify;text-indent:
-.5in'>2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guaranty
Agreement, dated February 6, 2004, provided by Home Solutions of America, Inc.
to Dale W. Mars, Trustee for the Dale W. Mars Trust Dated 7-16-97.</p>



<p class=MsoNormal style='margin-left:1.5in;text-align:justify;text-indent:
-.5in'>99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Press
Release of Home Solutions of America, Inc. issued February 9, 2004.</p>



<b><hr color="#000080"><br clear=all style='page-break-before:always'>
</b>

<p align="center"><b>SIGNATURE</b></p>





<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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.</p>





<p class=MsoNormal style='text-align:justify'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HOME
SOLUTIONS OF AMERICA, INC.</b></p>

<p class=MsoNormal style='text-align:justify'><b>&nbsp;</b></p>



<p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:<u>&nbsp;&nbsp;
/s/ RICK J. O'BRIEN&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rick J. O'Brien<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Chief Financial Officer </p>



<p class=MsoNormal style='text-align:justify'>&nbsp;</p>





<p class=MsoNormal style='text-align:justify'>Dated:&nbsp; February 9, 2004</p>

<hr color="#000080"><br clear=all style='page-break-before:always'>


<p class=MsoNormal align=center style='text-align:center'><b>EXHIBIT INDEX</b></p>

<p class=MsoNormal style='text-align:justify; text-indent:-40; margin-left:40'>2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan
of Merger and Stock Purchase Agreement, dated February 6, 2004, by and among
Home Solutions of America, Inc., Southern Exposure Holdings, Inc., S.E.
Acquisition Corp. I, S.E. Acquisition Corp. II, Southern Exposure Unlimited of
Florida, Inc., S.E. Tops of Florida, Inc., Dale W. Mars, and Dale W. Mars,
Trustee for the Dale W. Mars Trust Dated 7-16-97.</p>



<p class=MsoNormal style='text-align:justify; text-indent:-40; margin-left:40'>2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration
Rights Agreement, dated February 6, 2004, by and between Home Solutions of
America, Inc. and Dale W. Mars.</p>



<p class=MsoNormal style='text-align:justify; text-indent:-40; margin-left:40'>2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordinated
Promissory Note, in the original principal amount of $4,500,000, issued by
Southern Exposure Holdings, Inc. to Dale W. Mars, Trustee for the Dale W. Mars
Trust Dated 7-16-97.</p>



<p class=MsoNormal style='text-align:justify; text-indent:-40; margin-left:40'>2.4&nbsp;&nbsp;&nbsp;&nbsp;Subordinated
Promissory Note, in the original principal amount of $1,468,189.26, issued by
Southern Exposure Holdings, Inc. to Dale W. Mars, Trustee for the Dale W. Mars
Trust Dated 7-16-97.</p>



<p class=MsoNormal style='text-align:justify; text-indent:-40; margin-left:40'>2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pledge
and Security Agreement, dated February 6, 2004, by and among Southern Exposure
Holdings, Inc., S.E. Acquisition Corp. I, S.E. Acquisition Corp. II, Dale W.
Mars, and Dale W. Mars, Trustee for the Dale W. Mars Trust Dated 7-16-97.</p>



<p class=MsoNormal style='text-align:justify; text-indent:-40; margin-left:40'>2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guaranty
Agreement, dated February 6, 2004, provided by Home Solutions of America, Inc.
to Dale W. Mars, Trustee for the Dale W. Mars Trust Dated 7-16-97.</p>



<p class=MsoNormal style='text-align:justify; text-indent:-40; margin-left:40'>99.1&nbsp;&nbsp;&nbsp;Press
Release of Home Solutions of America, Inc. issued February 9, 2004.</p>





















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{"company-data": {"conformed-name": "HOME SOLUTIONS OF AMERICA INC", "cik": "0000855424", "assigned-sic": "8741", "irs-number": "990273889", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-31711", "film-number": "04578892"}, "business-address": {"street1": "11850 JONES ROAD", "street2": "-", "city": "HOUSTON", "state": "TX", "zip": "77070", "phone": "281-970-9859"}, "mail-address": {"street1": "11850 JONES ROAD", "street2": "-", "city": "HOUSTON", "state": "TX", "zip": "77070"}, "former-company": [{"former-conformed-name": "NEXTGEN COMMUNICATIONS CORP", "date-changed": "20010814"}, {"former-conformed-name": "U S INDUSTRIAL SERVICES INC", "date-changed": "19980629"}, {"former-conformed-name": "EIF HOLDINGS INC", "date-changed": "19930621"}]}
Prepared by E-Services - www.edgar2.net
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13
OR 15(d) OF THE
SECURITIES EXCHANGE ACT
OF 1934
Date of report (Date of earliest event
reported):
February 6, 2004
Home Solutions of America, Inc.
(Exact name
of registrant as specified in its charter)
Delaware
0-22388
99-0273889
(State or other jurisdiction
of  incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
11850 Jones Road, Houston Texas                                                       
      77070
(Address of principal executive offices)                                                  (Zip
Code)
Registrant's telephone number, including area
code:
(281) 970-9859
Item 2.  Acquisition or Disposition of Assets.
On February 6, 2004, Home Solutions
of America, Inc., a Delaware corporation (the "Company"), consummated the
acquisition of (i) 100% of Southern Exposure Unlimited of Florida, Inc., a
Florida corporation ("Southern Exposure"), (ii) 100% of S.E. Tops of Florida,
Inc., a Florida corporation ("S.E. Tops"), and (iii) 50% of SouthernStone
Cabinets, Inc., a Florida corporation ("SouthernStone") (collectively, the "SE
Companies").  The acquisition of Southern Exposure and S.E. Tops was structured
as separate mergers into wholly-owned subsidiaries of the Company, and the 50%
interest in SouthernStone was acquired through a stock purchase, all pursuant
to a Plan of Merger and Stock Purchase Agreement dated February 6, 2004,
effective as of December 31, 2003 (the "Merger Agreement").  The Company's equity
holdings in the SE Companies are held by Southern Exposure Holdings, Inc., a
Florida corporation and wholly-owned subsidiary of the Company ("Holdings"). 
The SE Companies, which have headquarters in Fort Myers, Florida, are engaged
in the businesses of manufacturing and installing custom cabinetry and
countertops for resale to home builders and residential customers.
The Company paid the individual who
was the sole stockholder of Southern Exposure and S.E. Tops, and 50% owner of SouthernStone
(the "Seller"), the following consideration for his interests in the SE
Companies:  (i) $2,500,000 of the Company's common stock (the "Shares"), valued
at the average per share closing price of the Company's common stock over the
fifteen trading days prior to closing, the closing date, and the fifteen trading
days thereafter, excluding the five highest and five lowest days from such
calculation, (ii) a subordinated promissory note of Holdings in the original principal
amount of $4,500,000, which requires quarterly payments equal to the greater of
60% of the net cash flow of the SE Companies or the payment that would result
from a 10-year amortization schedule, secured by all of the stock of the SE
Companies and the assets of the two 100%-owned SE Companies, and guaranteed by
the Company, (iii) a subordinated promissory note of Holdings in the original principal
amount of $1,468,189.26, secured by certain accounts receivable of the SE
Companies, and (iv) $2,000,000 cash.  The cash portion was financed through the
Company's $4.0 million line of credit from the Laurus Master Fund, Ltd., which
closed on January 22, 2004, and is secured by all of the Company's assets,
including the assets of its subsidiaries.
The Seller will continue to manage the
SE Companies pursuant to an employment agreement with the Company and Holdings.
The Shares have not been, and will
not be, registered under the Securities Act of 1933, as amended (the "Act"),
and may not be offered for sale or sold absent registration under the Act or an
applicable exemption from the registration requirements of the Act.  The
Company granted the Seller certain registration rights in connection with the
issuance of the Shares.
The descriptions
contained herein of these acquisitions and the Merger Agreement are qualified
in their entirety by reference to the full text of the Merger Agreement and certain
ancillary agreements which are filed as Exhibits 2.1 through 2.6, respectively,
to this Report and incorporated herein by this reference.
Item 5.  Other Events.
The press release issued by the
Company that announced the acquisitions described above is attached hereto as
Exhibit 99.1.
As the Company has previously
announced, on January 22, 2004, the Company obtained a $4.0 million credit
facility form the Laurus Master Fund, Ltd., which is secured by all of the
Company's assets.
Item 7.  Financial Statements and Exhibits.
(a)        It is impractical to
furnish the required financial statements at this time.  The financial
statements will be filed under cover of Form 8-K/A on or before April 9, 2004.
(b)        It is impractical to
furnish the required pro forma financial information at this time.  The
requisite pro forma financial information will be filed under cover of Form
8-K/A on or before April 9, 2004.
(c)
Exhibits
.
2.1       Plan
of Merger and Stock Purchase Agreement, dated February 6, 2004, by and among Home
Solutions of America, Inc., Southern Exposure Holdings, Inc., S.E. Acquisition
Corp. I, S.E. Acquisition Corp. II, Southern Exposure Unlimited of Florida,
Inc., S.E. Tops of Florida, Inc., Dale W. Mars, and Dale W. Mars, Trustee for
the Dale W. Mars Trust Dated 7-16-97.
2.2       Registration
Rights Agreement, dated February 6, 2004, by and between Home Solutions of
America, Inc. and Dale W. Mars.
2.3       Subordinated
Promissory Note, in the original principal amount of $4,500,000, issued by
Southern Exposure Holdings, Inc. to Dale W. Mars, Trustee for the Dale W. Mars
Trust Dated 7-16-97.
2.4       Subordinated
Promissory Note, in the original principal amount of $1,468,189.26, issued by
Southern Exposure Holdings, Inc. to Dale W. Mars, Trustee for the Dale W. Mars
Trust Dated 7-16-97.
2.5       Pledge
and Security Agreement, dated February 6, 2004, by and among Southern Exposure
Holdings, Inc., S.E. Acquisition Corp. I, S.E. Acquisition Corp. II, Dale W.
Mars, and Dale W. Mars, Trustee for the Dale W. Mars Trust Dated 7-16-97.
2.6       Guaranty
Agreement, dated February 6, 2004, provided by Home Solutions of America, Inc.
to Dale W. Mars, Trustee for the Dale W. Mars Trust Dated 7-16-97.
99.1      Press
Release of Home Solutions of America, Inc. issued February 9, 2004.
SIGNATURE
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.
HOME
SOLUTIONS OF AMERICA, INC.
By:
/s/ RICK J. O'BRIEN
Rick J. O'Brien
Chief Financial Officer
Dated:  February 9, 2004
EXHIBIT INDEX
2.1     Plan
of Merger and Stock Purchase Agreement, dated February 6, 2004, by and among
Home Solutions of America, Inc., Southern Exposure Holdings, Inc., S.E.
Acquisition Corp. I, S.E. Acquisition Corp. II, Southern Exposure Unlimited of
Florida, Inc., S.E. Tops of Florida, Inc., Dale W. Mars, and Dale W. Mars,
Trustee for the Dale W. Mars Trust Dated 7-16-97.
2.2     Registration
Rights Agreement, dated February 6, 2004, by and between Home Solutions of
America, Inc. and Dale W. Mars.
2.3     Subordinated
Promissory Note, in the original principal amount of $4,500,000, issued by
Southern Exposure Holdings, Inc. to Dale W. Mars, Trustee for the Dale W. Mars
Trust Dated 7-16-97.
2.4    Subordinated
Promissory Note, in the original principal amount of $1,468,189.26, issued by
Southern Exposure Holdings, Inc. to Dale W. Mars, Trustee for the Dale W. Mars
Trust Dated 7-16-97.
2.5     Pledge
and Security Agreement, dated February 6, 2004, by and among Southern Exposure
Holdings, Inc., S.E. Acquisition Corp. I, S.E. Acquisition Corp. II, Dale W.
Mars, and Dale W. Mars, Trustee for the Dale W. Mars Trust Dated 7-16-97.
2.6     Guaranty
Agreement, dated February 6, 2004, provided by Home Solutions of America, Inc.
to Dale W. Mars, Trustee for the Dale W. Mars Trust Dated 7-16-97.
99.1   Press
Release of Home Solutions of America, Inc. issued February 9, 2004.