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 EXCHANGEACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2006

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

EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____ TO ______. 

Commission File Number: 333-103986

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

| Nevada
98-0384073
(State or other jurisdiction of incorporation or    organization) 
(IRS Employer Identification No.)
 

15321 Main Street,Suite 102

PO Box 5000, PMB 152

Duvall, WA 98019

(Address of principal executive offices) 

(425) 451-8036(Issuer's Telephone Number) 

Check whether the issuer (1) filed all reports required to be filed bySection 13 or 15(d) of the Exchange Act during the past 12 months (or for suchshorter period that the registrant was required to file such reports), Yes XX   No ___    and (2) has been subject to such filing requirements for thepast 90 days. Yes XX    No    ___ 

Shell Company: [X] Yes [ ] No

As of March 31, 2006, the issuer had 67,133shares issued and outstanding ofits common stock. 
**PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

 
** *****LFG INTERNATIONAL, INC. ***Index to Financial Statements ***March 31, 2006 
 ***(Unaudited)***  **Balance      Sheet:**March 31, 2006F-2 **Statements      of Loss:**For the periods      ended March 31, 2006 and 2005F-3 **Statements      of Stockholders' Deficit:**For the periods      ended March 31, 2006 and 2005F-4**Statements      of Cash Flows:**For the periods      ended March 31, 2006 and 2005F-5 **Notes to      Financial Statements:**March 31, 2006F-6 ** 

 

 

 **
F-1
*****The accompanying notes are an integral part of thesestatements.******The accompanying notes are an integral part of these  statements

The accompanying notes are an integral part of these  statements

 

The accompanying notes are an integral part of these  statements
**LFG INTERNATIONAL,  INC.

(A development stage  enterprise)

Notes to Interim  Financial Statements

March 31, 2006

(Unaudited)
 

 

The accompanying unaudited interim financial statementsinclude all adjustments, which in the opinion of management, are necessary inorder to make the accompanying financial statements not misleading, and are of anormal recurring nature. However, the accompanying unaudited financialstatements do not include all of the information and footnotes necessary for acomplete presentation of financial position, results of operations, cash flowsand stockholders' equity in conformity with generally accepted accountingprinciples. Except as disclosed herein, there has been no material change in theinformation disclosed in the notes to the financial statements included in ourForm 10-K for the period ended December 31, 2005. Operating results for thethree months and three months ended March 31, 2006, are not necessarilyindicative of the results that can be expected for the year ended December 31,2006. 
**Note 1 - Capital stock:**
Since its inception, the Company has issued shares of itscommon stock as follows:
   **Price Per **Date**Description**Shares**Share**Amount11/22/02Shares issued for cash
300,000 
$0.01
$3,00001/13/03Shares issued for cash
300,000 
0.01
3,00001/14/03Shares issued for cash
275,000 
0.01
2,75001/18/03Shares issued for cash
150,000 
0.01
1,50001/20/03Shares issued for cash
300,000 
0.01
3,00001/25/03Shares issued for cash
100,000 
0.01
1,00002/04/03Shares issued for cash
50,000 
0.01
50002/17/03Shares issued for cash
275,000 
0.01
2,75002/24/03Shares issued for cash
100,000 
0.01
1,00002/25/03Shares issued for cash
200,000 
0.01
2,00002/26/03Shares issued for cash
250,000 
0.01
2,50002/27/03Shares issued for cash
50,000 
0.01
50003/01/03Shares issued for cash
100,000 
0.01
1,00003/03/03Shares issued for cash
100,000 
0.01
1,00003/11/03Shares issued for cash
900,000 
0.05
45,00003/25/04Shares issued for cash
15,000 
0.10
1,50003/29/04Shares issued for cash
25,000 
0.10
2,50003/30/04Shares issued for cash
10,000 
0.10
1,00003/31/04Shares issued for cash
45,000 
0.10
4,50004/01/04Shares issued for cash
10,000 
0.10
1,00004/06/04Shares issued for cash
15,000 
0.10
1,50004/21/04Shares issued for cash
10,000 
0.10
1,00004/23/04Shares issued for cash
10,000 
0.10
1,00005/04/04Shares issued for    cash
10,000 
0.10
1,00005/05/04Shares issued for    cash
10,000 
0.10
1,00005/10/04Shares issued for    cash
7,500 
0.10
75005/10/04Shares issued for    cash
10,000 
0.10
1,00005/11/04Shares issued for    cash
25,000 
0.10
2,500Cumulative total
3,652,500 
$90,750.00Effect of 5 for 1    split
14,610,000 Effect of 16.5 for 1    split
283,068,750 Effect of 1for 300    reverse split
(300,326,724)Effect of 1 for 15    reverse splie
(937,393)Cumulative total    after all splits
67,133 
On June 19, 2004, Directors approved a 5 for 1 forward splitof our common stock. All shareholders of record as of July 13, 2004 received anew certificate for 5 shares for each share they owned as of the close ofbusiness on that date. After the common stock split, the equivalent number ofshares issued and outstanding increased from 3,652,000 to 18,262,500. Totalshares authorized of 100 million and par value of $0.001 per common shareremained unchanged. 

Then, on August 17, 2004, Directors approved a 16.5 for 1forward split of our common stock. All shareholders of record as of August 17,2004 received a new certificate for 16.5 shares for each share they owned as ofthe close of business on that date. After the common stock split, the equivalentnumber of shares issued and outstanding increased from 18,262,500 to301,331,250. Total shares authorized were increased from 100,000,000 to1,000,000,000, and par value of $0.001 per common share remained unchanged. 

Then, effective March 21, 2005, Directors approved a 1 for300 reverse split of our common stock. All shareholders of record as of February4, 2005 received a new certificate for 1 share for every 300 shares they ownedas of the close of business on that date. After the common stock split, theequivalent number of shares issued and outstanding decreased from 301,331,250 to1,004.526. Total shares authorized of 1,000,000,000 and par value of $0.001 percommon share remained unchanged. . 

Then, effective January 2, 2006, Directors approved a 1 for 15 reverse splitof our common shares. All shareholders of record as of January 2, 2006 receiveda new certificate for 1 share for every 15 shares they owned as of the close ofbusiness on that date. No fractional shares were issued; the number of sharesfor each shareholder was rounded up to the nearest number of whole shares. Afterthe reverse split, shares outstanding decreased from 1,004,526 to 67,133, afteradjustment for rounding of fractional shares. 

The effect of the splits has been retroactively reflected inthe accompanying financial statements.
**Note 2 - Uncertainty, going concern:**
At March 31, 2006, we were not currently engaged in abusiness and had suffered losses from development stage activities to date.Although management is currently attempting to implement its business plan (seeNote 2 in the December 31, 2005 audited financial statements included in theCompany's Form 10-K) and is seeking additional sources of equity or debtfinancing, there is no assurance these activities will be successful.Accordingly, the Company must rely on its officers and directors to performessential functions without compensation until a business operation can becommenced. These factors raise substantial doubt about the ability of theCompany to continue as a going concern. The financial statements do not includeany adjustments that might result from the outcome of this uncertainty.

No value has been recorded in the financial statements forservices contributed by officers and directors, as the amount is immaterial. 
**Note 3 - Related party transactions:**
Included in accounts payable and accrued expenses is theamount of $12,500 for accrued management fees payable to our president forservices rendered in managing the company during 2005 and the three monthsending March 31, 2006. The related expense was $10,000 (2005) and $2,500 (2006).
**Note 4- Advance from Lantz Financial, Inc.:**
On April 20, 2005, November 28, 2005, and March 6, 2006 weobtained loans of $8,500, $6,000, and $10,000 respectively from Lantz Financial,Inc., a Panamanian company. Lantz is a non-affiliate of the Company (notassociated with any officer, director, or 5% shareholder). The loans are notevidenced by a note, do not bear interest, and are unsecured. They are due ondemand. The lender has indicated that it may want to convert the debt intoshares in the future, but there is no agreement to that effect, and nounderstanding as to any other terms. 
**Note 5 - Federal income tax:**
We follow Statements of Financial Accounting Standardsregarding *Accounting for Income Taxes*. Deferred income taxes reflect thenet effect of (a) temporary difference between carrying amounts of assets andliabilities for financial purposes and the amounts used for income tax reportingpurposes, and (b) net operating loss carryforwards. No net provision forrefundable Federal income tax has been made in the accompanying statement ofloss because no recoverable taxes were paid previously. Similarly, no deferredtax asset attributable to the net operating loss carryforward has beenrecognized, as it is not deemed likely to be realized.

The provision for refundable Federal income tax for the threemonths ending March 31, 2006 and 2005 consists of the following:
 **March 31,

2006**March 31,

2005
Refundable Federal income tax attributable to:  
Current operations
$(1,000)
$(22,100)
Less, Change in valuation allowance
1,000 
22,100 
Net refundable amount
- 
-    
The cumulative tax effect at the expected rate of 34% ofsignificant items comprising our net deferred tax amount is as follows:
 **March 31,

2006**March 31,

2005
Deferred tax asset attributable to:  
Net operating loss carryover
$45,500 
$34,200 
Less, Valuation allowance
(45,500)
(34,200)
Net deferred tax asset
- 
-    
At December 31, 2005, an unused net operating loss carryoverapproximating $130,800 is available to offset future taxable income; it expiresbeginning in 2022. Due to the change of control of the Company, the use of thenet operating loss may be limited in the future. 

Item 2. Plan of Operation 

LFG International, Inc. (formerly Can/Am Autosales, Inc.) ("LFG"), is adevelopment stage company with no operations, no revenue, no financial backingand limited assets. The original plan was to market used cars through theinternet and auto trade magazines to individuals in the U.S. and Canada. 

As of March 31, 2006, LFG had no cash. Development stage net loss for thethree months ended March 31, 2006 was $5,615, compared to $2,139 for thethree-month period ended March 31, 2005. The loss for the quarter ended March31, 2005 consisted primarily of legal and accounting expenses incident to thecompany's development stage activities. 

On August 17, 2004, the Company signed a Letter of Intent with London FinanceGroup, Ltd., a British company (LFG), for a share exchange of all of the sharesof LFG for common and preferred stock of the Company. LFG has severalsubsidiaries, including two European banks and a software trading platform. 

On August 25, 2004, the Company entered into a Stock Purchase Agreement withLion Energy (Europe) Ltd. ("Lion"). Lion is the sole shareholder of 100% of thecapital stock of LFG. Prior to this Agreement, there was no materialrelationship between the Company and Lion of LFG. In exchange for 100% of theshares of LFT, Lion was to receive, upon closing of the Agreement, thirty (30)million common shares and forty (40) million preferred shares of the Company.Preferred stock of the Company pays no dividend, but is convertible, at the soleand absolute discretion of the Board of Directors without notice, at fifteen(15) shares of common stock for each one (1) share of preferred stock. TheAgreement was intended to close on or about August 31, 2004. The shares of LFGwere tendered to the Company, but the Company has never issued shares to LionEnergy to complete the transaction. 

In late October, the Company learned that one of its shareholders was beinginvestigated by European authorities. That individual owned assets of certainsubsidiaries of LFG, prior to those subsidiaries obtaining the assets. Theindividual has since been cleared of all charges. However, it assets of thesubsidiaries were not be allowed to be transferred to the Company. 

Because of the uncertain nature of the transaction, the inability of LFG toinsure that the assets of the subsidiaries would be owned without encumbrancesby LFG, the Company elected, as of December 15, 2004, to terminate the Agreementwith LFG. Management has returned all of the shares of LFG, and is seeking otherpotential business opportunities.

On December 11, 2004, the Board of Directors appointed Lyle Durham as CEO ofthe Company.

There is substantial doubt about our ability to continue as a going concernas we have suffered recurring losses from operations and have no establishedsource of revenue. Accordingly, our independent auditors included an explanatoryparagraph regarding concerns about our ability to continue as a going concern.Our financial statements contain additional note disclosures describing thecircumstances that lead to this disclosure by our independent auditors.

Item 3. Controls and procedures 

As of March 31, 2006, the Company carried out an evaluation of theeffectiveness of the Company's disclosure controls and procedures (as defined byRule 13a-15) under the Securities Exchange Act of 1934) under the supervisionand with the participation of the Company's chief executive officer and chieffinancial officer. Based on and as of the date of such evaluation, theaforementioned officers have concluded that the Company's disclosure controlsand procedures were effective. 

The Company also maintains a system of internal accounting controls that isdesigned to provide assurance that assets are safeguarded and that transactionsare executed in accordance with management's authorization and properlyrecorded. This system is continually reviewed and is augmented by writtenpolicies and procedures, the careful selection and training of qualifiedpersonnel and an internal audit program to monitor its effectiveness. During thenine-month period ended September 30, 2004, there were no significant changes tothis system of internal controls or in other factors that could significantlyaffect those controls. 

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 

          None 

Item 6. Exhibits and Reports on Form 8-K Exhibits: 
Exhibit No.DocumentLocation3.1Articles of IncorporationPreviously Filed3.2BylawsPreviously Filed31.1Certification of the Chief Financial Officer    of the Company as adopted pursuant to Section 302 of the Sarbanes-Oxley Act    of 2002Included32Certification of the Chief Executive Officer    and Chief Financial Officer of the Company pursuant to 18 U.S.C. Section    1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002Included   
Reports on Form 8-K 

None.

 

In accordance with Section 13 or 15(d) of the Exchange Act, the registrantcaused this report to be signed on its behalf by the undersigned, thereunto dulyauthorized, this 19 day of May, 2006. 

LFG INTERNATIONAL, Inc.
***/s/ Lyle Durham***
By: Lyle Durham

Its: CEO********************************** |
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