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U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 

AMENDED 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 JUNE 30, 2005 

[   ]     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 principalexecutive 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 June 30, 2005, the issuer had 1,004,526 shares issued and outstandingof its common stock. 
**PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

*** LFG INTERNATIONAL, INC.    (Formerly CAN/AM AUTOSALES, INC.)***

*** Index to    Financial Statements***

***June 30,    2005***                    
 (Unaudited)                                            Balance Sheet:             June 30, 2005        F-2          Statements of Loss:             For the periods ended June 30, 2005    and 2004        F-3          For the quarters ended June 30,    2005 and 2005        F-4      Statements of Stockholders' Equity:              For the periods ended June 30, 2005        F-5      Statements of Cash Flows:              For the periods ended June 30, 2005 and 2004        F-6      Notes to Financial    Statements:             June 30, 2005        F-7      ***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.***
 

 
***The accompanying notes are an integral part of these statements.

 
***The accompanying notes are an integral part of these statements.

LFG INTERNATIONAL, INC.

(Formerly CAN/AM AUTOSALES, INC.)

(A development stage enterprise)

Notes to Unaudited FinancialStatements

  June 30, 2005

  (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 LFGInternational, Inc.'s Form 10-K for the period ended December 31, 2004.Operating results for the six months and three months ended June 30, 2005, arenot necessarily indicative of the results that can be expected for the yearended December 31, 2005. 
**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)Cumulative total    after all splits
1,004,526 ***LFG INTERNATIONAL, INC.

(Formerly CAN/AM AUTOSALES, INC.)

(A development stage enterprise)

Notes to Unaudited Financial Statements

  June 30, 2005

  (Unaudited)
 

On June 19, 2004, our Directors approved a 5 for 1 forwardsplit of the company's common stock. All shareholders of record as of July 13,2004 received a new certificate for 5 shares for each share they owned as of theclose of business on that date. After the common stock split, the equivalentnumber of issued and outstanding shares of the Company outstanding increasedfrom 3,652,000 to 18,262,500. Total shares authorized of 100 million and parvalue of $0.001 per common share remained unchanged. 

Then, on August 17, 2004, our Directors approved a 16.5 for 1forward split of the company's common stock. All shareholders of record as ofAugust 17, 2004 received a new certificate for 16.5 shares for each share theyowned as of the close of business on that date. After the common stock split,the equivalent number of issued and outstanding shares of the Companyoutstanding increased from 18,262,500 to 301,331,250. Total shares authorizedwere increased from 100,000,000 to 1,000,000,000, and par value of $0.001 percommon share remained unchanged. 

Then, effective March 21, 2005, our Directors approved a 1for 300 reverse split of the company's common stock. All shareholders of recordas of February 4, 2005 received a new certificate for 1shares for every 300shares they owned as of the close of business on that date. After the commonstock split, the equivalent number of issued and outstanding shares of theCompany outstanding decreased from 301,331,250 to 1,004.526. Total sharesauthorized of 1,000,000,000 and par value of $0.001 per common share remainunchanged. . 

The effect of the splits has been retroactively reflected inthe accompanying financial statements.

As a result of the forward splits in 2004, the increasednumber of shares outstanding and the resulting increase in the common stockaccount caused a deficit in the capital in excess of par value account atDecember 31, 2004. The negative balance of $229,264 in capital in excess of parvalue was charged to deficit accumulated during the development stage during theDecember 31, 2004 quarter. Then, the reverse split during the quarter endingMarch 31, 2005 resulted in a positive balance in the capital in excess of parvalue account. Accordingly, the $229,264 entry recorded during the December 31,2004 quarter was reversed during the March 31, 2005 quarter. 

On August 12, 2004, our Directors authorized the issuance of50,000,000 shares of preferred stock, to be issued from time to time by amajority of the members of the Board of Directors on such terms as areestablished by the Board, and may be issued in one or more series, each withseparate terms and conditions as set by the Board, including, but not limitedto, the authority to provide voting rights for each series. At June 30, 2005, nopreferred shares had been issued. 
***LFG INTERNATIONAL, INC.

(Formerly CAN/AM AUTOSALES, INC.)

(A development stage enterprise)

Notes to Unaudited Financial Statements

  June 30, 2005

  (Unaudited)
 
**Note 2 - Uncertainty, going concern:**
At June 30, 2005, the Company was 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, 2004 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.
**Note 3 - Loan payable:**
On April 20, 2005, we obtained a loan of $8,500 from anentity that is a non-affiliate of the Company (not associated with any officer,director, or 5% shareholder). The loan is not evidenced by a note, does not bearinterest, and is unsecured. It is due on demand. The lender has indicated thatit may want to convert the debt into shares in the future, but there is noagreement to that effect, and no understanding as to any terms. 
**Note 4 - 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 sixmonths ending June 30, 2005 and 2004 consists of the following:
 **June 30,

2005**June 30,

2004
Refundable Federal income tax attributable to:  
Current operations
$(7,000)
$(5,500)
Less, Change in valuation allowance
7,000 
5,500 
Net refundable amount
- 
-    
The cumulative tax effect at the expected rate of 34% ofsignificant items comprising our net deferred tax amount is as follows:
 **June 30,

2005**June 30,

2004
Deferred tax asset attributable to:  
Net operating loss carryover
$40,500 
$11,200 
Less, Valuation allowance
(40,500)
(11,200)
Net deferred tax asset
- 
-    ***LFG INTERNATIONAL, INC.

(Formerly CAN/AM AUTOSALES, INC.)

(A development stage enterprise)

Notes to Unaudited Financial Statements

  June 30, 2005

  (Unaudited)
 

At December 31, 2004, an unused net operating loss carryoverapproximating $98,700 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 June 30, 2005, LFG had no cash. Development stage net loss for the sixmonths ended June 30, 2005 was $20,518, compared to $16,245 for the six-monthperiod ended June 30, 2004. The loss for the quarter ended June 30, 2005consisted primarily of legal and accounting expenses incident to the company"sdevelopment 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 June 30, 2005, 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.    Document    Location    3.1    Articles of Incorporation    Previously Filed3.2BylawsPreviously Filed31Certification 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 22nd day of September, 2005. 

LFG INTERNATIONAL, Inc.

***/s/ Lyle Durham***

By: Lyle Durham

Its: CEO 
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