SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

              ____________________________________________________

                                  FORM 10-KSB

(Mark One)

[X]  ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE FISCAL YEAR ENDED AUGUST 31, 2005.

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ________

                          COMMISSION FILE NO. 000-31343

                         INTERNATIONAL DEVELOPMENT CORP.
               (Exact name of issuer as specified in its charter)

             (Exact name of registrant as specified in its charter)

                                 OZOLUTIONS INC.
             (Previous name of issuer, while a Delaware corporation)

                     NEVADA                                 98-0229321
         (State or other jurisdiction                    (I.R.S. Employer
       of incorporation or organization)                Identification No.)


      534 DELAWARE AVENUE, SUITE 412, BUFFALO, NEW YORK  14202
     (Address of principal executive offices)         (Zip Code)

  Registrant's telephone number, including area code: (416) 490-0254
                                                 Fax: (416) 495-8625


Securities registered under Section 12(b) of the Exchange Act: NONE.

Securities registered under Section 12(g) of the Exchange Act: COMMON STOCK, PAR
                                                         VALUE $0.001 PER SHARE.
                                                             (Title of class)

     Indicate  by  check  mark  whether the registrant (1) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  twelve  months  (or  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 [ ]

     Indicate  by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best  of  registrant's  knowledge, in definitive proxy or information statements
incorporated  by  reference  in Part III of this Form 10-KSB or any amendment to
this  Form  10-KSB. [ ]

     State issuer's revenues for its most recent fiscal year: $16,115.00.

     State the aggregate market value of the voting and non-voting common equity
held  by  non-affiliates  computed by reference to the price at which the common
equity  was last sold, or the average bid and asked price of such common equity,
as  of  November  28,  2005:  $290,000.00.

     Indicate  the  number  of  shares  outstanding  of each of the registrant's
classes of common stock as of November 28, 2005: 483,404,226.


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                                TABLE OF CONTENTS

Item 1.     Description of Business. . . . . . . . . . . . . . . . . . . . . . 1
Item 2.     Description of Property. . . . . . . . . . . . . . . . . . . . . . 8
Item 3.     Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . 8
Item 4.     Submission of Matters to a Vote of  Security  Holders. . . . . . . 8
Item 5.     Market for Common Equity and Related Stockholder Matters . . . . . 9
Item 6.     Management's Discussion and Analysis or Plan of Operation. . . . .10
Item 7.     Financial Statements . . . . . . . . . . . . . . . . . . . . . . .12
Item 8.     Changes In and Disagreements With Accountants on Accounting and
            Financial Disclosure . . . . . . . . . . . . . . . . . . . . . . .12
Item 8A.    Controls and Procedures. . . . . . . . . . . . . . . . . . . . . .12
Item 9.     Directors and Executive Officers of the Registrant . . . . . . . .13
Item 10.    Executive Compensation . . . . . . . . . . . . . . . . . . . . . .16
Item 11.    Security Ownership of Certain Beneficial Owners and Management
            and Related Stockholder Matters. . . . . . . . . . . . . . . . . .18
Item 12.    Certain Relationships and Related Transactions . . . . . . . . . .18
Item 13.    Exhibits and  Reports on Form 8-K. . . . . . . . . . . . . . . . .19
Item 14.    Principal Accountant Fees and Services . . . . . . . . . . . . . .20


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<PAGE>
                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS.


     International  Development  Corp., a Nevada corporation, was formerly known
as  Ozolutions  Inc.,  a  Delaware corporation. We changed our name and state of
domicile  on  December 9, 2004. See, "Change of Domicile." Our previous business
had  been that of international marketing and distribution of water purification
systems using ultra violet, ozone and water activator technology. The markets we
primarily  targeted  were  located  in  the United States, Canada, Mexico, Costa
Rica,  Peru, and Panama. In addition, we are formulating a new business plan and
concentrating  our  efforts  on  identifying  and  closing focused acquisitions,
building  our  company  through  steady  planned growth. On January 21, 2005, we
formed  a wholly owned subsidiary, FreshWater Technologies Inc., for the purpose
of  transferring  our  water  activation  and  purification  related  assets and
business  to  FreshWater  Technologies  Inc.  We  are  now conducting all of our
existing  water related business through FreshWater Technologies Inc. other than
the  Wataire  business  discussed  below.

On  October  12,  2005,  International  Development  Corp.  signed  an Exclusive
licensing  agreement  with  Wataire  Industries Inc. to market their atmospheric
water  generators  in  the United States. The Company will not market this water
technology through FreshWater Technologies Inc. Consequently, going forward, our
main  focus will be to market this unique innovative technology that can provide
high  quality,  safe  drinking  water  by extracting water from natural air. The
methods  employed  to  produce potable water by tapping into nature's hydrologic
cycle  are  unique  and  the  result of 13 years of research and extensive field
testing.  The  Company plans to launch its atmospheric water generators into the
US residential and office markets. These machines are approximately the size ofa
household  water  cooler and will generate up to eight gallons of water per day.
The  Company  believes  that consumers will be very receptive to this technology
because  no  heavy water bottle is required. Considering the agingof the general
population, not having to struggle with heavy, cumbersome five gallon bottles is
perceived  to  be an advantage over current water bottle equipment. In addition,
the  Company  will  also  market  large  industrial  water generators capable of
producing  up to 50,000 gallons per day. The larger units provide drinking water
for  applications  in  facilities  such  as  military,  industrial,  commercial,
humanitarian  and  disaster  relief  and  irrigation  water  for  greenhouse and
horticultural  systems.

International  Development  Corp. believes that consumers are becoming much more
health conscious and are more aware of water quality issues such as the presence
of  E-Coli,  Campylobacter  or  Cryptosporidium. These heightened health-related
concerns  have  led to increasing number of consumers purchasing water treatment
products  in  the  United  States.

"Water  generation  and purification" means any product developed by Wataire, or
with  the  assistance or at the direction of Wataire, whether developed prior to
our  subsequent  to the date of the License Agreement, including any process for
water  generation  and  purification,  any equipment for generating or purifying
water, and any apparatus or methods which may be used by Wataire products in its
business  of  water  purification or generation, provided that that the licensed
products  do  not  include  services  performed  in  association  with the water
generation  and  purification technology. The license granted is perpetual, non-
revocable  and assignable by the Company. The Board of Directors determined that
the  terms  of  the  License Agreement are fair and reasonable. The Registrant's
board  did not seek a third party fairness opinion or any valuation or appraisal
of  the terms of the transaction. Thus, the Company's stockholders will not have
the  benefit  of  a  third-party opinion that the terms of the License Agreement
were  fair  from  a  financial  point  of  view.

In  consideration  of  the License Agreement, the Company has issued to Wataire,
15,000,000  shares  of the Company's Series C preferred stock, par value $ 0.001
per  share.  Each  share  of the Series C preferred stock received by Wataire is
convertible  into  one share of the Company's common stock. Likewise, each share
of  the  Series  C  preferred  stock has voting rights equal to one share of the
Company's  common  stock.


<PAGE>
     A  brief  discussion  of  our previous activities is in order.

     Ozone  Technology.  On  June 21, 2000, we purchased the exclusive marketing
rights  to distribute the products of "Hankin Ozone Systems, LTD" in Canada, the
Caribbean,  and Mexico from 1421209 Ontario Limited. We agreed to pay the sum of
$1,017,217,  and  issue 8,000,000 shares of our common shares. In November 2000,
8,000,000  shares of our common stock were delivered to 1421209 Ontario Limited.
We  had an agreement to repurchase 6,000,000 of the 8,000,000 shares for $81,699
which  we  decided  to  cancel in August 2004. In April 2002, the agreement with
1421209  Ontario  Limited  was cancelled and the obligation to pay $1,000,000 to
1421209 Ontario Limited was no longer due. We wrote-off the net marketing rights
of  $762,743  and  the  outstanding  obligation  of  $1,000,000, and recorded an
extraordinary  gain  from the cancellation of the agreement of $237,257. We paid
$50,000  directly  to  Hankin  Ozone  Systems, LTD for the same marketing rights
which  we  recorded  as  an  expense  during  the year ended August 31, 2002. In
September  2004,  Hankin  was placed into bankruptcy, and the deposit of $22,292
for  certain  units  was  written  off  as  of  August  31,2004.

     Water-activated  Technology.  In  August  2001,  we  acquired non-exclusive
distribution  rights  to  an activated water system from ELCE International Inc.
for  Mexico  and the Caribbean markets including Panama, Costa Rica, Ecuador and
Peru.  No  fees  were  paid for these rights. In September 2003, we approved the
issuance  of  250,000  shares of our restricted common stock to the president of
ELCE  and the cancellation of an option to purchase 500,000 shares of our common
stock  at  $0.50  per  share  in  order to maintain the existing relationship in
Canada.  The  issuance of the common stock resulted in a charge against earnings
of  $15,000  in  2004.


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<PAGE>
UV  Products.  In  order  to  provide  viable  technology and pricing options to
residential  and  commercial  customers for drinking water solutions, we entered
into  an  agreement  with  R-Can  Environmental  in June 2005 with the intent to
distribute  ultra  violet  water  treatment  systems and water filters in select
markets  in Latin America and the United States. We terminated a prior agreement
with  another  supplier.

In  the  opinion  of  our management, we could realize most value from our water
purification-related  assets  by  creating a wholly owned subsidiary to carry on
the  Company's water  purification and activation business.

On  January  21,  2005,  we  formed  a  wholly-owned  subsidiary,  Freshwater
Technologies,  Inc.,  for  thepurposeoftransferring  our  water  activation  and
purification-related assets and business to Freshwater Technologies, Inc. We are
now conducting all of our water purification-related business through Freshwater
Technologies,  Inc.

Change in Control

     On  September 23, 2004, Betty-Ann Harland acquired 15,000,000 shares of our
common  stock,  which  represented  30.51  percent of our issued and outstanding
common  stock.  In addition, Ms. Harland had proxies to vote 6,000,000 shares of
our  common  stock,  granted  by 1421209 Ontario Limited. The proxies expired on
February 1, 2005. Ms. Harland paid the sum of $25,000 for the shares. In January
2005 the 15,000,000 common shares were exchanged for 1,000,000 Class A Preferred
Shares.  In  July  2005,  the  Board  of Directors approved the surrendering and
cancellation  of  900,000 Class A Preferred Shares held by Betty-Ann Harland. In
July,2005,  the  Board of Directors authorized the issuance of 1,000,000 Class B
Preferred  Shares  to  Betty-Ann  Harland  in  consideration  of  $1,000 and the
surrendered  900,000  Class  A  preferred  shares.  Pursuant  to the acquisition
agreement,  the  shares  of  the  common  stock  acquired  by Ms. Harland may be
converted into shares of our voting preferred stock upon terms to be determined.

     Following the acquisition of our shares by Ms. Harland, she was elected our
chairman  and  chief  executive officer. In addition, Max Weissengruber, Douglas
Robertson,  Robert  W. Gingell, and Arthur N. Kelly were elected as our officers
and  directors.  At  the  same  time,  D.  Brian Robertson was elected our chief
financial  officer.  After  the resignation of Robert W. Gingell, Richard Proulx
was  elected  a  Director.

     Because  of  the change in ownership of voting stock and the composition of
the  board  after  the  closing of the agreement, there was a change in control.

CHANGE OF DOMICILE

     On  December  9,  2004,  a  majority of our stockholders voted to approve a
change  in  our  state  of  incorporation  from Delaware to Nevada by means of a
merger permitted under the corporate statutes of both states.

     The  merger  was  between  Ozolutions,  Inc.,  a  Delaware corporation, and
International  Development  Corp., a Nevada corporation, organized by us for the
specific  purpose of the change of domicile. The merger was consummated pursuant
to  a  Plan  of  Merger. The Plan of Merger provided that Ozolutions, Inc. merge
with  and  into  International  Development  Corp.  Following  the  merger,
International  Development  Corp.  was  the  surviving  entity.

     International  Development  Corp.  was  a newly formed corporation with one
share  of  common  stock  issued  and outstanding held by Betty-Ann Harland, our
chairman  and  chief  executive  officer, with only minimal capital and no other
assets  or  liabilities.  The  terms  of  the  merger provided that the existing
stockholders  of  Ozolutions, Inc. would be entitled to receive one share of the
common  stock  of  International  Development  Corp.  for every one share of the
common  stock of Ozolutions, Inc. held by the common stockholders of Ozolutions,
Inc.  In  addition,  the  then currently issued one share of the common stock of
International  Development Corp. held by Ms. Harland was cancelled. As a result,
following  the  merger,  the  former stockholders of Ozolutions, Inc. became the
only  stockholders  of  the  newly  merged  corporation.


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<PAGE>
     The  change of domicile did not interrupt the existence of Ozolutions, Inc.
Each  share  of our common stock remained issued and outstanding as one share of
the common stock of International Development Corp. after the change of domicile
from  Delaware  to  Nevada.

     We chose to change our state of incorporation in order to take advantage of
several  features  of  Nevada corporate law which are expected to help us reduce
our  taxes  and  to facilitate our corporate actions. A comparison of Nevada and
Delaware  law  follows:

-    Corporations  domiciled in Nevada do not pay a franchise tax or a corporate
     income  tax.  Delaware  imposes  a  corporate  income  tax.

-    Under  Nevada  law,  unless  otherwise  provided  in  the  articles  of
     incorporation, a corporation that desires to change the number of shares of
     a  class  or  series,  if  any,  of  its  authorized stock by increasing or
     decreasing  the  number  of  authorized  shares  of the class or series and
     correspondingly  increasing  or  decreasing  the  number  of  issued  and
     outstanding  shares of the same class or series held by each stockholder of
     record  at  the  effective date and time of the change, except as otherwise
     provided  in  subsections  2  and 3 of Chapter 78.207 of the Nevada Revised
     Statutes,  may  do  so  by  a resolution adopted by the board of directors,
     without obtaining the approval of the stockholders. The resolution may also
     provide  for a change of the par value, if any, of the same class or series
     of  the shares increased or decreased. After the effective date and time of
     the  change,  the  corporation may issue its stock in accordance therewith.

     The second bullet point above is especially important to us, inasmuch as we
will  be  able  to  change  our  authorized  shares to more efficiently meet our
current  needs.  Presently,  we  need  to go to the time and expense of having a
stockholders' meeting in order to change our authorized shares.  We must be able
to  quickly deal with situations calling for us to modify our capital structure.

     Officers  and  Directors.  Before  the  change  of  domicile,  our board of
directors  consisted  of  five  members,  Betty-Ann  Harland, Max Weissengruber,
Douglas  Robertson,  Robert  W. Gingell, and Arthur N. Kelly. Upon the change of
domicile,  our board of directors consists of the same individuals who were also
the  directors  of  International  Development  Corp. At a later date Robert W.
Gingell resigned and Richard Proulx was elected a Director.

     Resales of Our Common Stock. Pursuant to Rule 145 under the Securities Act,
due  to the merger of Ozolutions, Inc. with International Development Corp., the
exchange of our shares of common stock in the Delaware corporation for shares of
the  common  stock  of the Nevada corporation was exempt from registration under
the  Securities  Act,  since the sole purpose of the transaction was a change of
our  domicile  within the United States. The effect of the exemption is that the
shares  of  our common stock issuable in the change of domicile may be resold by
the  former stockholders without restriction to the same extent that such shares
may  have  been  sold  before  the  change  of  domicile.

     Accounting  for  the  Transaction.  Upon  consummation  of  the  change  of
domicile, the historical financial statements of the Delaware corporation became
the  historical  financial  statements  of  the  Nevada  corporation.  Total
stockholders'  equity  was  unchanged  as  a  result  of the change of domicile.

EMPLOYEES

     As  of  November  28,  2005, we employed three consultants, including three
full-time  executives  and  two  part-time  clerical  consultants. None of these
consultants  are  covered  under  a  collective  bargaining  agreement.


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<PAGE>
RISK FACTORS

RISKS RELATING TO OUR BUSINESS

UNDER  OUR  NEW  BUSINESS  MODEL, WE ARE A NEW BUSINESS WITH A LIMITED OPERATING
HISTORY  AND ARE NOT LIKELY TO SUCCEED UNLESS WE CAN OVERCOME THE MANY OBSTACLES
WE  FACE.

     Under  our new business model, we have a limited operating history. We have
not  recently  engaged  in  active  business  operations.

     To date, our efforts have been devoted primarily to the following:

-    Organizational  activities;

-    Developing  a  business  plan  for  our  business;

-    Obtaining  funding;  and

-    Conducting  research and working toward the ultimate successful development
     of  our  products  and  services.

     We  are still in our formative stage with respect to the development of our
business plan going forward. You should be aware of the difficulties, delays and
expenses  normally  encountered  by an enterprise which has reorganized, many of
which  are  beyond  our  control,  including  unanticipated expenses, employment
costs,  and  administrative expenses. We cannot assure our stockholders that our
proposed  business  plans as described in this Annual Report will materialize or
prove  successful,  or  that we will ever be able to finalize development of our
products or services or operate profitably. If we cannot operate profitably, you
could  lose  your  entire investment. As a result of the nature of our business,
initially we expect to sustain substantial operating expenses without generating
significant  revenues.

GROWTH BY ACQUISITION.

     Our  business  strategy includes the attainment of substantially all of our
growth  through  our  ability to successfully execute our acquisition model. Any
time  a  company  growth  strategy depends on the acquisition of other companies
there  is  substantial risk. In order to pursue a growth by acquisition strategy
successfully,  we  must  identify  suitable  candidates  for these transactions,
complete  these  transactions,  and  manage  post-closing  issues  such  as  the
integration  into  our corporate structure. Integration issues are complex, time
consuming  and  expensive and, without proper planning and implementation, could
significantly  disrupt our business including, but not limited to, the diversion
of  management's  attention,  the loss of key business and/or personnel from the
acquired  company,  unanticipated events, and legal liabilities. If the business
becomes  impaired,  there  could be partial or full write-offs attributed to the
acquisition.

COMPETITION.

     We  face  intense competition in all the business segments in which we have
identified  to  do  business.  Some  competitors will have substantially greater
resources,  including  greater  financial  resources,  larger customer base, and
greater  name  and  brand  recognition.  Any of these circumstances could have a
material  adverse  effect  on  our  business  development,  financial condition,
and results  of  operations.

FUTURE CAPITAL REQUIREMENTS; UNCERTAINTY OF FUTURE FUNDING.

     Our plan of operation calls for additional capital to facilitate growth and
support  our  long-term development and acquisition strategy marketing programs.
It  is  likely  that  we  will  have to seek additional financing through future
public  or private sales of our securities, including equity securities.  We may
also seek funding for the development and acquisitions marketing of our products
through  strategic partnerships and other arrangements with investment partners.
There  can  be  no  assurance,  however, that such collaborative arrangements or
additional funds will be available when needed, or on terms acceptable to us, if
at  all.  Any  such  additional  financing may result in


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<PAGE>
significant  dilution  to  existing  stockholders.  If  adequate  funds  are not
available  we  may  be  required  to curtail one or more of our future activates
programs.

THERE IS SUBSTANTIAL DOUBT THAT WE CAN CONTINUE AS A GOING CONCERN.

     We expect to incur significant capital expenses in pursuing our development
and  acquisition  strategy plans to increase sales volume, expanding our product
lines  and  obtaining additional financing through stock offerings, or licensing
agreements  or  other  feasible  financing  alternatives.  In  order  for  us to
continue  our  operations,  we  will  require  additional funds over the next 12
months.  While  we  hope we will be able to generate funds necessary to maintain
our  operations,  without  additional  funds  there will be a limitation to  the
number  of  new  projects that we could take on, which may have an effect on our
ability  to  maintain our operations.  Additional financing may not be available
on  terms  favorable to us, or at all. If additional funds are not available, we
may not be able to execute our business model plan or take advantage of business
opportunities.  Our  ability  to obtain such additional financing and to achieve
our operating goals is uncertain.  In the event that we do not obtain additional
capital  or  are  not  able  to  increase  cash  flow through the increase of in
revenues,  there is a substantial doubt of our being able to continue as a going
concern.

     Additionally,  it  should  be  noted  that  our  independent  auditors have
included  a  going  concern  opinion  and related discussion in the notes to our
financial  statements.  The  auditors  have included the going concern provision
because  we  have  incurred  significant  and  recurring losses and have a large
working capital deficit that the auditors believe raises substantial doubt about
our  ability  to  continue  as  a  going  concern.  Until  such  time we receive
additional  debt  or  equity  financing,  there is a risk that our auditors will
continue  to  include  a  going  concern provision in the notes to our financial
statements.

DEPENDENCE ON KEY EMPLOYEES.

     Our  business is dependent upon our senior executive officers, principally,
Max  Weissengruber,  our  chief  operating  officer,  who is responsible for our
operations,  including  marketing and business development. We currently have an
employment  agreement with Mr. Weissengruber. However, discretionary approval of
a  FreshWater  Technologies Stock Purchase Agreement between the Company and Max
Weissengruber,  Chief  Operating  Officer  and  Brian  Robertson Chief Financial
Officer  deals  with  the  sale  of  100  percent  of  the  outstanding stock of
FreshWater  Technologies Inc. to Mr. Weissengruber and Mr. Robertson for a total
purchase  price  of  $  60,210, pending stockholder approval. The purchase price
will  be  paid  by  Messrs. Weissengruber and Robertson by releasing the Company
from  all  obligations  owed  to  them.

In  the  event  of future growth in administration, marketing, manufacturing and
customer support functions, we will need to increase the depth and experience of
our  management  team  by adding new members. Our success will depend to a large
degree  upon the active participation of our key officers and employees. Loss of
services  of  any  of  the  current  officers  and  directors,  especially  Mr.
Weissengruber,  could  have  a  significant adverse effect on our operations and
prospects.  There  can  be no assurance that we will be able to employ qualified
persons  on  acceptable terms to replace officers who become unavailable. If the
sale  of  Freshwater Technologies, Inc. is approved by our stockholders, Messrs.
Weissengruber  and  Robertson  are  not  expected to remain in the employ of the
Company.  Therefore,  we  will  have  to  replace  them.

NEED FOR ADDITIONAL SPECIALIZED PERSONNEL.

     Although  we  are  committed to the continued development and growth of our
business,  the addition of specialized key personnel and sales persons to assist
us  in  the  execution  of  our  business  model  may be needed. There can be no
assurance  that we will be able to locate and hire such specialized personnel on
acceptable  terms.

DEPENDENCE ON ABILITY TO MARKET SERVICES.

     Due  to  our limited resources, the execution of our business model, sales,
and marketing of our services has been limited to date. Our success is dependent
upon  our  ability  to  execute  with  such  limited  resources.

TERRORISM.

     Terrorist acts or acts of war may cause damage or disruption to or business
or  business  strategy,  which  could  adversely  impact revenues, ability to do
acquisitions,  and  financial  condition.


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<PAGE>
Risks Relating to Our Stock

WE  MAY  NEED  TO RAISE ADDITIONAL CAPITAL.  IF WE ARE UNABLE TO RAISE NECESSARY
ADDITIONAL CAPITAL, OUR BUSINESS MAY FAIL OR OUR OPERATING RESULTS AND OUR STOCK
PRICE  MAY  BE  MATERIALLY  ADVERSELY  AFFECTED.

     Because  we  are  a  newly  reorganized company, we need to secure adequate
funding.  If  we  are  unable  to obtain adequate funding, we may not be able to
successfully  develop and market our products and services and our business will
most  likely  fail.  We  do  not  have commitments for additional financing.  To
secure  additional  financing,  we  may  need  to  borrow  money  or  sell  more
securities, which may reduce the value of our outstanding securities.  We may be
unable  to  secure  additional  financing  on  favorable  terms  or  at  all.

     Selling  additional  stock,  either privately or publicly, would dilute the
equity  interests  of our stockholders. If we borrow more money, we will have to
pay interest and may also have to agree to restrictions that limit our operating
flexibility.  If  we  are  unable  to  obtain adequate financing, we may have to
curtail  business  operations  which  would  have  a material negative effect on
operating results and most likely result in a lower stock price.

OUR  COMMON  STOCK HAS EXPERIENCED IN THE PAST, AND IS EXPECTED TO EXPERIENCE IN
THE  FUTURE,  SIGNIFICANT  PRICE  AND  VOLUME  VOLATILITY,  WHICH  SUBSTANTIALLY
INCREASES  THE RISK THAT YOU MAY NOT BE ABLE TO SELL YOUR SHARES AT OR ABOVE THE
PRICE  THAT  YOU  PAY  FOR  THE  SHARES.

     Because  of the limited trading market for our common stock, and because of
the possible price volatility, you may not be able to sell your shares of common
stock when you desire to do so. During 2002, 2003 and 2004, and through the date
of  this  Annual  Report, our common stock was sold and purchased at prices that
ranged from a high of $0.30 to a low of $0.0001 per share. The inability to sell
your  shares  in a rapidly declining market may substantially increase your risk
of  loss  because  of  such illiquidity since the price for our common stock may
suffer  greater  declines  due  to  its  price  volatility.

     The price of our common stock that will prevail in the market may be higher
or  lower  than the price you pay. Certain factors, some of which are beyond our
control,  that may cause our share price to fluctuate significantly include, but
are  not  limited  to,  the  following:

-    Variations in our quarterly operating results;

-    The development of a market in general for our products and services;

-    Changes in market valuations of similar companies;

-    Announcement  by  us  or  our  competitors  of  significant  contracts,
     acquisitions,  strategic  partnerships,  joint  ventures  or  capital
     commitments;

-    Loss of a major customer or failure to complete significant transactions;

-    Additions or departures of key personnel; and

-    Fluctuations in stock market price and volume.

     Additionally,  in  recent  years  the  stock market in general, and the OTC
Bulletin  Board  in  particular,  have  experienced  extreme  price  and  volume
fluctuations.  In  some  cases,  these  fluctuations  are  unrelated  or
disproportionate  to  the operating performance of the underlying company. These
market and industry factors may materially and adversely affect our stock price,
regardless  of  our  operating  performance.

     Over  the past few months, there have been periods of significant increases
in  trading  volume  of our common stock during which the price of our stock has
both  increased and decreased. The historical trading of our common stock is not
necessarily  an  indicator  of  how  it will trade in the future and our trading
price as of the date of this Annual Report does not necessarily portend what the
trading price of our common stock might be in the future.


                                        6
<PAGE>
     Moreover,  class action litigation has often been brought against companies
following periods of volatility in the market price of the common stock of those
companies.  If  we  become involved in this type of litigation in the future, it
could  result  in  substantial  costs  and diversion of management attention and
resources,  which could have a further negative effect on your investment in our
stock.

OUR  DIRECTORS  HAVE  THE RIGHT TO AUTHORIZE THE ISSUANCE OF PREFERRED STOCK AND
ADDITIONAL  SHARES  OF  OUR  COMMON  STOCK.

     Our  directors,  within  the  limitations and restrictions contained in our
articles  of  incorporation and without further action by our stockholders, have
the  authority  to  issue  shares of preferred stock from time to time in one or
more  series and to fix the number of shares and the relative rights, conversion
rights,  voting rights, and terms of redemption, liquidation preferences and any
other  preferences,  special  rights  and qualifications of any such series.  We
have  no intention of issuing preferred stock at the present time.  Any issuance
of  preferred  stock  could adversely affect the rights of holders of our common
stock.

     Should we issue additional shares of our common stock at a later time, each
investor's  ownership  interest in our stock would be proportionally reduced. No
investor  will  have  any  preemptive  right to acquire additional shares of our
common  stock,  or  any  of  our  other  securities.

IF  WE FAIL TO REMAIN CURRENT ON OUR REPORTING REQUIREMENTS, WE COULD BE REMOVED
FROM  THE  OTC BULLETIN BOARD WHICH WOULD LIMIT THE ABILITY OF BROKER-DEALERS TO
SELL  OUR SECURITIES AND THE ABILITY OF STOCKHOLDERS TO SELL THEIR SECURITIES IN
THE  SECONDARY  MARKET.

     Companies  trading on the OTC Bulletin Board, such as we, must be reporting
issuers  under  Section  12  of  the  Exchange Act, and must be current in their
reports under Section 13, in order to maintain price quotation privileges on the
OTC Bulletin Board.  If we fail to remain current on our reporting requirements,
we  could  be  removed  from  the  OTC  Bulletin Board.  As a result, the market
liquidity  for  our  securities could be severely adversely affected by limiting
the  ability  of  broker-dealers  to  sell  our  securities  and  the ability of
stockholders to sell their securities in the secondary market.

OUR  COMMON  STOCK  IS  SUBJECT  TO  THE  "PENNY STOCK" RULES OF THE SEC AND THE
TRADING  MARKET  IN  OUR  SECURITIES IS LIMITED, WHICH MAKES TRANSACTIONS IN OUR
STOCK  CUMBERSOME  AND  MAY  REDUCE  THE  VALUE  OF  AN INVESTMENT IN OUR STOCK.

     The  Securities  and  Exchange  Commission  has  adopted  Rule  15g-9 which
establishes  the definition of a "penny stock," for the purposes relevant to us,
as  any  equity security that has a market price of less than $5.00 per share or
with  an  exercise  price  of  less  than  $5.00  per  share, subject to certain
exceptions.  Inasmuch  as that the current bid and ask price of our common stock
is  less  than $5.00 per share, our shares are classified as "penny stock" under
the  rules  of  the  SEC.  For  any  transaction involving a penny stock, unless
exempt,  the  rules  require:

-    That  a  broker  or  dealer  approve a person's account for transactions in
     penny  stocks;  and

-    The  broker or dealer receives from the investor a written agreement to the
     transaction,  setting forth the identity and quantity of the penny stock to
     be  purchased.

     In  order  to  approve a person's account for transactions in penny stocks,
the  broker  or  dealer  must:

-    Obtain  financial  information  and investment experience objectives of the
     person;  and

-    Make  a  reasonable determination that the transactions in penny stocks are
     suitable  for  that  person  and  the  person  has sufficient knowledge and
     experience  in  financial  matters to be capable of evaluating the risks of
     transactions  in  penny  stocks.

     The broker or dealer must also deliver, prior to any transaction in a penny
stock,  a  disclosure schedule prescribed by the SEC relating to the penny stock
market,  which,  in  highlight  form:


                                        7
<PAGE>
-    Sets  forth  the  basis  on which the broker or dealer made the suitability
     determination;  and

-    That  the  broker  or  dealer received a signed, written agreement from the
     investor  prior  to  the  transaction.

     Generally,  brokers  may  be  less  willing  to  execute  transactions  in
securities  subject to the "penny stock" rules.  This may make it more difficult
for  investors  to dispose of our common stock and cause a decline in the market
value  of  our  stock.

     Disclosure also has to be made about the risks of investing in penny stocks
in  both  public  offerings  and  in secondary trading and about the commissions
payable  to  both  the  broker-dealer and the registered representative, current
quotations  for  the  securities  and  the  rights  and remedies available to an
investor  in  cases  of  fraud  in  penny  stock transactions.  Finally, monthly
statements  have  to  be  sent disclosing recent price information for the penny
stock held in the account and information on the limited market in penny stocks.

ITEM 2. DESCRIPTION OF PROPERTY.
Our  corporate office is 534 Delaware Avenue, Suite 412, Buffalo, New York 14202
which we rent at the rate of 159.00 per month. In addition, we use approximately
400  square  feet  of  office  space  at 30 Denver Crescent, Suite 200, Toronto,
Ontario  Canada  M2J 1G8. The office space is provided by Max Weissengruber, one
of our officers and directors, at no charge. We rent storage space in Toronto on
a  month-to-month  basis to maintain a limited inventory of product. The cost of
this space is $150 per month. We believe that all of our facilities are adequate
for  at  least the next 12 months. We expect that we could locate other suitable
facilities  at  comparable  rates,  should  we  need  more  space.

ITEM 3. LEGAL PROCEEDINGS.

     In June 2002, David Michael LLC and Feng Shui Consulting, Inc. filed a suit
against  us  for  breach  of  contract for failure to issue shares of our common
stock  under  a  consulting agreement.  We filed a counter claim and third party
complaint  denying  the  substantive  allegations of the complaint and asserting
breach  of  contract  and  fraud  in connection with the transaction.  On August
23,2004  the United States District Court for Utah ordered the dismissal of this
action  in  its  entirety  including  all claims with each party to bear its own
costs  and  fees.  The  shares  of  our  common stock previously issued to David
Michael LLC and Feng Shui Consulting, Inc. are to be returned to us upon payment
of  $5,000  which  was  paid  in  September  2004. To date we have not received
these shares.

     On  January 11, 2002, we entered into a financial consulting and investment
banking agreement with Chapman, Spira & Carson LLC. The purpose of the agreement
was  to  assist  us  with  general  business and financial consulting and obtain
equity  and  debt  financing  up to $2 million on terms agreeable to us. In June
2002,  Chapman,  Spira  &  Carson  LLC made a demand for arbitration through the
American  Arbitration  Association as provided in the agreement claiming $50,000
in  fees, plus nine percent interest, and 200,000 shares of our common stock. In
February  2003,  we  obtained  a  verdict  against  Chapman  and  were  awarded
approximately  $22,000  net  of  any  our  legal  fees.  The amount has not been
recorded  in  the accompanying financial statements as we are uncertain that the
payment will be made. Chapman appealed to the New York Supreme Court in 2004 and
this appeal was dismissed. At the present time Chapman has appealed to the Court
of Appeal in New York.

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

     None.


                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

     Our common stock has been quoted on the OTC Bulletin Board under the symbol
"OZLU.OB."  The  following  table sets forth, for the fiscal quarters indicated,
the  high  and  low bid prices for our common stock which has been quoted on the
OTC  Bulletin  Board.  On  December  9,  2004,  our symbol changed to "IDVL.OB."
These  quotations  reflect  inter-dealer  prices,  without mark-up, mark-down or
commission, and may not represent actual transactions.

<TABLE>
<CAPTION>
                                        HIGH      LOW
<S>                                    <C>      <C>
                    August 31, 2002    $  0.30  $  0.09
                    November 30, 2002  $  0.20  $  0.08
                    February 28, 2003  $  0.12  $  0.08
                    May 31, 2003       $  0.14  $  0.05

                                        HIGH      LOW
                    August 31, 2003    $  0.15  $  0.02
                    November 30, 2003  $  0.16  $  0.05
                    February 28, 2004  $  0.09  $  0.03
                    May 31, 2004       $ 0.065  $  0.02

                                        HIGH      LOW
                    August 31, 2004    $ 0.045  $  0.01
                    November 30,2004   $  0.01  $  0.01
                    February 28, 2005  $0.0024  $0.0022
                    May 31,2005        $0.0007  $0.0006

                                        HIGH      LOW
                    August 31,2005      0.0007   0.0006
</TABLE>

     Since  our  inception,  no dividends have been paid on our common stock. We
intend  to  retain any earnings for use in our business activities, so it is not
expected that any dividends on our common stock will be declared and paid in the
foreseeable  future.

     We  currently  have  483,404,226 shares of our common stock outstanding.
Our  shares  of  common  stock  are  held by approximately 1,672 stockholders of
record.  The  number  of  record  holders was determined from the records of our
transfer  agent  and  does  not  include beneficial owners of common stock whose
shares  are  held  in  the  names  of  various  security  brokers,  dealers, and
registered  clearing  agencies.


                                        8
<PAGE>
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

     See Item 11 of this Annual Report.

RECENT SALES OF UNREGISTERED SECURITIES

     On  September 23, 2004, Betty-Ann Harland acquired 15,000,000 shares of our
common  stock,  which  represented  30.51  percent of our issued and outstanding
common  stock.  In addition, Ms. Harland has proxies to vote 6,000,000 shares of
our  common  stock,  granted  by 1421209 Ontario Limited. The proxies expired on
February  1,  2005. Ms. Harland paid the sum of $25,000 for the shares. Pursuant
to the acquisition agreement, the shares of common stock acquired by Ms. Harland
may  be  converted  into  shares  of our voting preferred stock upon terms to be
determined.  The  shares  were restricted in their transfer under the Securities
Act.  In  January 2005 the 15,000,000 common shares were exchanged for 1,000,000
Class  A  Preferred  Shares.  In  July 2005, the Board of Directors approved the
surrendering  and  cancellation  of  900,000  Class  A  Preferred Shares held by
Betty-Ann  Harland. In July,2005, the Board of Directors authorized the issuance
of  1,000,000  Class B Preferred Shares to Betty-Ann Harland in consideration of
$1,000  and  the  surrendered  900,000  Class  A  preferred  shares.

On October 15, 2005, in consideration of the execution of an Exclusive Licensing
Agreement  with Wataire Industries, Inc., we issued to Wataire 15,000,000 shares
of  our Series C preferred stock, par value $ 0.001 per share. Each share of the
Series  C  preferred  stock received by Wataire is convertible into one share of
our  common  stock.  Likewise,  each  share  of the Series C preferred stock has
voting  rights  equal  to  one  share  of  our  common  stock.


     The  shares  were  issued  in  reliance upon an exemption from registration
pursuant  to  Section  4(2)  of  the  Securities  Act.  Each  recipient took its
securities for investment purposes without a view to distribution and had access
to  information  concerning  us  and  our business prospects, as required by the
Securities  Act.  In  addition, there was no general solicitation or advertising
for  the  purchase of our shares. Our securities were sold only to a person with
whom  we  had  a  direct personal preexisting relationship, and after a thorough
discussion.  Finally,  our  stock  transfer  agent  has  been  instructed not to
transfer  any  of  such  shares, unless such shares are registered for resale or
there  is  an  exemption  with  respect  to  their  transfer.

SECTION 15(g) OF THE EXCHANGE ACT

     The shares of our common stock are covered by Section 15(g) of the Exchange
Act,  and  Rules  15g-1  through  15g-6  promulgated  thereunder,  which  impose
additional sales practice requirements on broker-dealers who sell our securities
to persons other than established customers and accredited investors.

     Rule  15g-2  declares  unlawful  any  broker-dealer  transactions in "penny
stocks"  unless  the  broker-dealer  has  first  provided  to  the  customer  a
standardized  disclosure  document.

     Rule  15g-3 provides that it is unlawful for a broker-dealer to engage in a
"penny  stock"  transaction  unless  the  broker-dealer  first  discloses  and
subsequently  confirms  to  the customer the current quotation prices or similar
market  information  concerning  the  penny  stock  in  question.

     Rule  15g-4  prohibits  broker-dealers  from  completing  "penny  stock"
transactions  for  a  customer  unless  the broker-dealer first discloses to the
customer  the  amount of compensation or other remuneration received as a result
of  the  penny  stock  transaction.

     Rule  15g-5  requires  that  a  broker-dealer  executing  a  "penny  stock"
transaction,  other  than one exempt under Rule 15g-1, disclose to its customer,
at the time of or prior to the transaction, information about the sales person's
compensation.

     Our  common stock may be subject to the foregoing rules. The application of
the  "penny  stock"  rules  may  affect  our stockholders' ability to sell their
shares  because  some  broker-dealers may not be willing to make a market in our
common  stock  because  of  the  burdens  imposed upon them by the "penny stock"
rules.

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

RESULTS OF OPERATIONS

     For  the  12 months ended August 31, 2005, we had $16,000 in sales compared
to  $23,000  for  the year ended August 31, 2004. The sales of our ELCE products
accounted  for $14,000 of our 2005 revenue and all of our 2004 revenue while the
remaining  $2,000  revenue  was from the sale of UV water purification products.
Cost of goods sold was $13,500 or 85 percent of sales for the year ending August
31,  2005  compared to $19,000 or 82 percent of sales for 2004. Gross profit was
$2,500  and  $4,000  for  fiscal  2005  and  2004  respectively.

     The net loss for the year ended August 31,2005 was $1,131,000 compared to a
net  loss  of $385,000 for the year ended August 31, 2004. Expenses for the year
ended  August  31,2005  increased $ 744,000 over the year ended August 31, 2004.
Increases  in  consulting  expenses  of  $311,000, general and administrative of
$86,000,  marketing  expenses of $119,000 and restructuring expenses of $305,000
can  be  directly  attributable  to the costs involved in the reorganization and
implementing  newly  developed  plans  to  generate revenues and for the overall
growth,  as  a  result  of  the  reorganization.  The balance of the increase in
general  and  administrative expenses of $40,000 was due to the write off of the
financing  commitment  fee  based  on  our  review  of the poor finances of U.S.
Capital  Inc.,  the  Corporation  that  was to secure financing for our Company.
Interest  expense  for  the  year  ended  August 31, 2005 increased $12,000 over
fiscal  2004  as  a  result of the increase in the outstanding balances owing to
Directors  and  Stockholder.  These  increases  were offset by a decrease in the
provision  for  bad  debts  of  $129,000.

During  the  second half of the year ended August 31, 2004 and the first half of
fiscal  2005,  we  focused  our  time  and  efforts  on developing new marketing
strategies and discussing potential plans to reorganize in an effort to increase
sales  of  our  water purification and activation products and pursue our future
growth. In January, 2005, we formalized a plan to reorganize, in which the water
treatment  operations  would  be spun off into our wholly-owned subsidiary after
reorganization,  as  the  focus  of  the  reorganized  corporation  would  be on
identifying and closing focused acquisitions and building through steady planned
growth.  As  a  result  of  the  time  spent on our development of new marketing
strategies  and discussions on potentially reorganizing, our focus on generating
new  sales  was limited, therefore, directly resulting in far fewer sales during
the  years  ended  August 31,2005 and 2004 as compared to previous years. During
the year ended August 31, 2004 we incurred very minimal direct costs relating to
the  development  of  new  marketing  strategies  and  discussions regarding the
potential  reorganization.  All  costs associated with the formal reorganization
plan  were  incurred  and recorded in the financial statements in the year ended
August  31,  2005.


                                       10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

     Our  operations  used  approximately $916,000 in cash during the year ended
August  31,2005.  Cash  required  during  the  year  ended  August 31, 2005 came
principally  from  the  proceeds  from the exercise of employee stock options of
$612,000,  director  and  shareholder advances of $283,000 and the proceeds from
the  sale  of  restricted  stock  less the purchase of stock for cancellation of
$21,000  net.

     We  plan  to keep ELCE purchases to a minimum and do not anticipate holding
large  amounts  of  ELCE  product  inventory  at  any one time after selling our
original purchases of ELCE water activation units which we expect to complete by
the  end of August, 2006. We have arranged for a warehouse facility to store the
present  ELCE  inventory  at $150 per month. In order to sell our remaining ELCE
inventory  we  have extended our normal credit terms to 90 days after receipt of
goods.

     R-can UV products and water filters will be ordered when we receive orders
from customers who will pay a deposit upon placement of orders with the balance
due 30 days after shipment.

The  Company's  Licensing  Agreement  with  Wataire  Industries  authorizes
International  Development Corp. to market their atmospheric water generators in
the  United States. The Wataire products will not be marketed through FreshWater
Technologies. Consequently, going forward, our main focus will be to market this
innovative and unique technology that provides high quality, safe drinking water
by  extracting water from natural air. The methods used to produce potable water
by  tapping into nature's hydrologic cycle are unique and the result of 13 years
of  research  and  field  testing.  The Company intends to focus on the large US
residential  and office markets with machines that are approximately the size of
a  household  water cooler that can create up to 8 gallons of water per day. The
Company  also  believes  that  consumers  will be very receptive to this product
because no heavy water bottle exchange is required. Considering the aging of the
general  population,  not  having  to struggle with heavy five gallon bottles is
perceived  to  be  an advantage over current water bottle machines. In addition,
the Company also intends to market large, industrial water generators capable of
producing  up to 50,000 gallons per day. The large capacity units can be used in
facilities  such  as military, industrial, commercial, humanitarian and disaster
relief  and  irrigation water for greenhouse, horticultural systems. The Company
believes  that  consumers  are  becoming  more  and  more  health  conscious and
concerned  about  water  quality  contaminants such as E-Coli, Campylobacter and
Cryptosporidium.  These  concerns  have  lead  to  an  increasing  number  of US
consumers  who  are  purchasing  water  treatment  products.

We  estimate  our  operational  expenses  during  the  next  twelve months to be
approximately  $1,275,000.  Professional  fees  of  $100,000,  management  and
administration  and  consulting  contracts  of  $375,000,  travel, marketing and
distribution  of  $350,000  and  inventory  costs  of  $450,000.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

     Our  financial statements and accompanying notes are prepared in accordance
with  generally  accepted  accounting principles in the United States. Preparing
financial  statements requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenue, and expenses. These
estimates and assumptions are affected by management's application of accounting
policies.  Critical  accounting  policies  include  revenue  recognition
and impairment of long-lived assets.

     We  recognize  revenue in accordance with Staff Accounting Bulletin No.101,
"Revenue  Recognition in Financial Statements." Sales are recorded when products
are  shipped  to  customers.  Provisions for discounts and rebates to customers,
estimated  returns  and allowances and other adjustments are provided for in the
same  period  the  related  sales  are  recorded.

     We  evaluate  our  long-lived  assets for financial impairment on a regular
basis  in  accordance  with Statement of Financial Accounting Standards No. 144,
"Accounting  for  the Impairment or Disposal of Long-Lived Assets" evaluates the
recoverability  of long-lived assets not held for sale by measuring the carrying
amount  of  the  assets  against  the  estimated  discounted  future  cash flows
associated  with  them.  At  the  time such evaluations indicate that the future
discounted cash flows of certain long-lived assets are not sufficient to recover
the carrying value of such assets, the assets are adjusted to their fair values.

     Our business is more fully described in Part I of this Annual Report.


                                       11
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

     As  discussed  by  our  accountants  in  the  audited  financial statements
included  in  Item  7  of  this  Annual  Report  on  Form 10-KSB, our revenue is
currently  insufficient  to  cover  our  costs  and  expenses.

     Directors  and  shareholders  continue  to  provide  us the funds needed to
continue  our  development  and  operations. To the extent our revenue shortfall
exceeds  the  willingness  and  ability  of  our  directors  and shareholders to
continue  providing  us  the  funds  needed, we anticipate raising any necessary
capital from outside investors coupled with bank or mezzanine lenders. As of the
date  of  this  report, we have not entered into any negotiations with any third
parties  to  provide  such  capital.

     We  anticipate  that  our  current  financing  strategy of private debt and
equity  offerings  will  meet our anticipated objectives and business operations
for  the  next  12  months.  We continue to evaluate opportunities for corporate
development.  Subject  to  our  ability  to  obtain  adequate  financing  at the
applicable time, we may enter into definitive agreements on one or more of those
opportunities.

     Our  independent  auditor's  report  on  our  August  31,  2005  financial
Statements,  included  in this Annual Report, states that our lack of sources of
revenues  raise  substantial  doubts  about  our  ability to continue as a going
concern.

RECENT DEVELOPMENTS

     Please  see Item 1 of this Annual Report for the discussion of our proposed
operations  going  forward  since  August  31,  2005.

On  October  12,  2005,  we executed an Exclusive License Agreement with Wataire
Industries,  Inc., a Nevada corporation, for the entire United States of America
covering  certain  processes  and  products  relating  to technology-based water
generation  and  purification,  all  of  which are the subject of pending patent
applications  (the "License Agreement"). The License Agreement is attached as an
Exhibit  to  this  Current Report. "Water generation and purification" means any
product  developed  by  Wataire,  or  with the assistance or at the direction of
Wataire,  whether  developed  prior  to or subsequent to the date of the License
Agreement,  including  any  process  for  water generation and purification, any
equipment for generating or purifying water, and any apparatus and methods which
may  be  used  by  Wataire in its business of water generation and purification,
provided  that  the  licensed  products  do  not  include  services performed in
association  with  the water generation and purification technology. The license
granted is perpetual, non-revocable, and assignable by the Registrant.

In  consideration  of  the  License  Agreement,  we issued to Wataire 15,000,000
shares  of  our Series C preferred stock, par value $0.001 per share. Each share
of  the  Series  C  preferred  stock received by Wataire is convertible into one
share  of  the  Registrant's  common stock. Likewise, each share of the Series C
preferred  stock has voting rights equal to one share of the Registrant's common
stock.

As a result of the agreement with Wataire, we agreed to elect a director to our
Board of Directors proposed by Wataire.  As of the date of this Annual Report,
we have not yet elected such new director, but expect to do so in the near
future.


OFF-BALANCE SHEET ARRANGEMENTS

     We do not have any off-balance sheet arrangements.

ITEM 7. FINANCIAL STATEMENTS.

     The  financial  statements  and  related notes are included as part of this
Annual Report as indexed in the appendix on page F-1 through F-17.


                                       12
<PAGE>



                         INTERNATIONAL DEVELOPMENT CORP.
                    (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
                             (A NEVADA CORPORATION)
                                BUFFALO, NEW YORK


                      -----------------------------------
                                FINANCIAL REPORTS
                                       AT
                                 AUGUST 31, 2005
                      ===================================



<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
(FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


TABLE OF CONTENT
==============================================================================================
<S>                                                                            <C>

Report of Independent Registered Public Accounting Firm                            F - 1

Consolidated Balance Sheets at August 31, 2005 and 2004                            F - 2

Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the
  Years Ended August 31, 2005 and 2004                                             F - 3

Consolidated Statements of Operations for the Years Ended
  August 31, 2005 and 2004                                                         F - 4

Consolidated Statements of Cash Flows for the Years Ended
  August 31, 2005 and 2004                                                     F - 5 - F - 6

Notes to Consolidated Financial Statements                                     F - 7 - F - 17
</TABLE>


<PAGE>
             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors
  and Stockholders
International Development Corp.
  (formerly Ozolutions Inc.) and Subsidiary
(A Nevada Corporation)
Buffalo, New York


     We  have  audited  the  accompanying  consolidated  balance  sheets  of
International  Development Corp. (formerly Ozolutions Inc.) and Subsidiary as of
August 31, 2005 and 2004, and the related consolidated statements of operations,
changes  in  stockholders'  equity (deficit), and cash flows for each of the two
years  in  the  period  ended  August  31,  2005.  These  consolidated financial
statements  are  the  responsibility  of  the  Company's  management.  Our
responsibility  is  to  express  an  opinion  on  these  consolidated  financial
statements  based  on  our  audits.

     We  conducted  our  audits  in  accordance with the standards of the Public
Company  Accounting  Oversight  Board  (United States).  Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether
the  consolidated  financial  statements  are free of material misstatement.  An
audit  includes  examining, on a test basis, evidence supporting the amounts and
disclosures  in  the  consolidated financial statements.  An audit also includes
assessing  the  accounting  principles  used  and  significant estimates made by
management,  as  well as evaluating the overall consolidated financial statement
presentation.  We  believe  that  our  audits provide a reasonable basis for our
opinion.

     In  our  opinion,  the  consolidated financial statements referred to above
present  fairly, in all material respects, the financial position of the Company
as  of  August 31, 2005 and 2004, and the results of its operations and its cash
flows  for  each  of  the  two  years  in  the  period ended August 31, 2005, in
conformity with accounting principles generally accepted in the United States of
America.

     The  accompanying  consolidated  financial  statements  have  been prepared
assuming  International  Development  Corp.  (formerly  Ozolutions  Inc.)  and
Subsidiary  will  continue  as  a  going concern.  As discussed in Note G to the
consolidated  financial  statements,  the  Company has incurred losses that have
resulted  in  an  accumulated  deficit.  This condition raises substantial doubt
about  the Company's ability to continue as a going concern.  Management's plans
regarding  this  matter  are  described  in  Note G.  The consolidated financial
statements  do not include any adjustments that might result from the outcome of
this  uncertainty.


/s/ Rotenberg & Co., LLP

Rotenberg & Co., LLP
Rochester, New York
  October 20, 2005


                                      F - 1
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED BALANCE SHEETS
==========================================================================================

August 31,                                                            2005         2004
------------------------------------------------------------------------------------------
<S>                                                             <C>           <C>

ASSETS

CURRENT ASSETS
Cash and Cash Equivalents                                       $       194   $       233
Accounts Receivable - Net of Allowance for Doubtful Accounts
                      of $180,995 and $177,042, Respectively         15,678        23,184
Inventory                                                           190,830       208,798
Prepaid Expenses and Deposits                                             -        40,000
------------------------------------------------------------------------------------------

TOTAL ASSETS                                                    $   206,702   $   272,215
==========================================================================================

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
Accounts Payable                                                $    89,524   $    93,506
Deferred Revenue                                                      7,037         7,037
Due to Directors                                                    367,696       149,897
Due to Stockholder                                                  172,940       107,327
------------------------------------------------------------------------------------------

TOTAL LIABILITIES                                                   637,197       357,767
------------------------------------------------------------------------------------------

STOCKHOLDERS' DEFICIT
Common Stock:  $.001 Par; 800,000,000 and 50,000,000 Shares
               Authorized, respectively; 483,404,226 and
               34,904,226 Issued and Outstanding, respectively      483,404        34,904
Preferred Stock, Class A:  $.001 Par; 1,000,000 and -0- Shares
               Authorized, respectively; 100,000 and -0-
               Issued and Outstanding, respectively                     100             -
Preferred Stock, Class B:  $.001 Par; 5,000,000 and -0- Shares
               Authorized, respectively; 1,000,000 and -0-
               Outstanding, respectively                              1,000             -
Additional Paid-In Capital                                        2,226,923     1,890,364
Accumulated Deficit                                              (3,141,922)   (2,010,820)
------------------------------------------------------------------------------------------

TOTAL STOCKHOLDERS' DEFICIT                                        (430,495)      (85,552)
------------------------------------------------------------------------------------------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                     $   206,702   $   272,215
==========================================================================================
<FN>
      THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>


                                      F - 2
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
==================================================================================================================================

                                                            PREFERRED STOCK
                                                      ----------------------------
                                          COMMON                                     ADDITIONAL                        TOTAL
                                           STOCK        CLASS A        CLASS B         PAID-IN      ACCUMULATED    STOCKHOLDERS'
                                        ($0.001 PAR)  ($0.001 PAR)   ($0.001 PAR)      CAPITAL        DEFICIT     EQUITY (DEFICIT)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>            <C>            <C>            <C>           <C>            <C>
BALANCE - AUGUST 31, 2003              $     33,754   $          -   $           -  $ 1,752,975   $ (1,625,380)  $        161,349

Issuance of 825,000 Shares for
  Cash Consideration                            825              -               -       16,673              -             17,498
Issuance of 250,000 Shares as
  Consideration for
  Acquisition of Marketing Rights               250              -               -       14,750              -             15,000
Issuance of 75,000 Shares
  to Consultant
  in Exchange for Services                       75              -               -        2,425              -              2,500
Cancellation of Commitment for
  Purchase of Shares for
  Cancellation                                    -              -               -       81,699              -             81,699
Proceeds from Former Stock
  Purchase Agreement                              -              -               -       11,673              -             11,673
Capital Contribution -
  Interest Expense                                -              -               -       10,169              -             10,169
Net Loss                                          -              -               -            -       (385,440)          (385,440)
----------------------------------------------------------------------------------------------------------------------------------

BALANCE - AUGUST 31, 2004                    34,904              -               -    1,890,364     (2,010,820)           (85,552)

Issuance of 15,000,000 Shares for
  Cash Consideration                         15,000              -               -       10,000              -             25,000
Exchange of 15,000,000 Shares of
  Common Stock for
  1,000,000 Shares
  of Preferred Stock, Class A               (15,000)         1,000               -       14,000              -                  -
Return of 900,000 Shares for
  Cancellation                                    -           (900)              -          900              -                  -
Issuance of 1,000,000 Shares
  for Cash Consideration                          -              -           1,000            -              -              1,000
Commitment for Purchase of
  Shares for Cancellation                         -              -               -       (5,000)             -             (5,000)
Issuance of 9,500,000 Shares to
  Consultant in Exchange for Services         9,500              -               -       10,500              -             20,000
Issuance of 6,000,000 Shares for
  Payment of Accounts Payable                 6,000              -               -       (3,340)             -              2,660
Stock Options Granted -
  Compensation
  for Services Rendered                           -              -               -      108,014              -            108,014
Stock Options for 433,000,000
  Shares Exercised                          433,000              -               -      179,082              -            612,082
Capital Contribution - Interest
  Expense                                         -              -               -       22,403              -             22,403
Net Loss                                          -              -               -            -     (1,131,102)        (1,131,102)
----------------------------------------------------------------------------------------------------------------------------------

BALANCE - AUGUST 31, 2005              $    483,404   $        100   $       1,000  $ 2,226,923   $ (3,141,922)  $       (430,495)
==================================================================================================================================
<FN>
                             THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>


                                      F - 3
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED STATEMENTS OF OPERATIONS
==================================================================================

YEARS ENDED AUGUST 31,                                        2005         2004
----------------------------------------------------------------------------------
<S>                                                    <C>            <C>

REVENUES, NET                                          $     16,115   $    22,950

Cost of Goods Sold                                           13,694        18,619
----------------------------------------------------------------------------------

GROSS PROFIT                                                  2,421         4,331
----------------------------------------------------------------------------------

EXPENSES
Bad Debts Expense                                            14,065       143,788
Consulting Fees                                             372,007        61,049
Marketing, Including Amortization of Marketing Rights       176,767        57,590
General and Administrative                                  243,400       117,175
Restructuring Charges                                       304,881             -
Interest Expense                                             22,403        10,169
----------------------------------------------------------------------------------

TOTAL EXPENSES                                            1,133,523       389,771
----------------------------------------------------------------------------------

LOSS BEFORE PROVISION FOR TAXES                          (1,131,102)     (385,440)

Provision for Taxes                                               -             -
----------------------------------------------------------------------------------

NET LOSS                                               $ (1,131,102)  $  (385,440)
==================================================================================

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING - BASIC AND DILUTED                       264,183,679    34,186,671

NET LOSS PER COMMON SHARE - BASIC AND DILUTED          $      (0.00)  $     (0.01)
==================================================================================
<FN>
    THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>


                                      F - 4
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED STATEMENTS OF CASH FLOWS
====================================================================================

Years Ended August 31,                                       2005          2004
------------------------------------------------------------------------------------
<S>                                                    <C>           <C>

CASH FLOWS FROM OPERATING ACTIVITIES

NET LOSS                                               $(1,131,102)  $     (385,440)

NON-CASH ADJUSTMENTS:
Amortization of Marketing Rights                                 -           15,000
Bad Debts Expense                                           14,065          143,788
Interest on Directors/Stockholder Loans                     22,403           10,169
Shares Issued to Consultants                                20,000            2,500
Compensation Expense on Employee Stock Option Grants       108,014                -

CHANGES IN ASSETS AND LIABILITIES:
Accounts Receivable                                         (6,559)          28,788
Inventory                                                   17,968          (26,435)
Prepaid Expenses and Deposits                               40,000           10,000
Deposits                                                         -           27,292
Accounts Payable                                            (1,322)          26,848
------------------------------------------------------------------------------------

NET CASH FLOWS FROM OPERATING ACTIVITIES                  (916,533)        (147,490)
------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES                             -                -
------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Issuance of Common Stock                      25,000           17,498
Proceeds from Issuance of Preferred Stock, Class B           1,000                -
Proceeds from Former Stock Purchase Agreement                    -           11,673
Proceeds from Stock Options Exercised                      612,082                -
Payment for Purchase of Common Stock for Cancellation       (5,000)               -
Advances from Directors                                    446,684           68,936
Repayments to Directors                                   (228,885)          (1,337)
Advances from Stockholder                                  120,297           65,381
Repayments to Stockholder                                  (54,684)         (14,555)
------------------------------------------------------------------------------------

NET CASH FLOWS FROM FINANCING ACTIVITIES                   916,494          147,596
------------------------------------------------------------------------------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                        (39)             106

Cash and Cash Equivalents - Beginning of Year                  233              127
------------------------------------------------------------------------------------

CASH AND CASH EQUIVALENTS - END OF YEAR                $       194   $          233
====================================================================================
                                                                      - continued -
<FN>
    THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>


                                      F - 5
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
===========================================================================

Years Ended August 31,                                       2005    2004
---------------------------------------------------------------------------
<S>                                                       <C>     <C>

SUPPLEMENTAL DISCLOSURES
===========================================================================

Interest Paid                                             $    -  $      -
Income Taxes Paid                                         $    -  $      -
===========================================================================


NON-CASH INVESTING AND FINANCING ACTIVITIES
===========================================================================

Issuance of Common Stock for Payment of Accounts Payable  $2,660  $      -
===========================================================================

Commitment for Purchase of Common Stock for Cancellation  $    -  $(81,699)
===========================================================================

Acquisition of Marketing Rights                           $    -  $ 15,000
Purchase Price Paid via Issuance of Common Stock               -   (15,000)
---------------------------------------------------------------------------

TOTAL CASH PAID FOR MARKETING RIGHTS                      $    -  $      -
===========================================================================
<FN>

 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>


                                      F - 6
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------


NOTE A -  THE  COMPANY
          International Development Corp. ("IDC") was formed on October 22, 2004
          under the laws of the state of Nevada. On December 9, 2004, IDC merged
          with  Ozolutions  Inc.,  a  Delaware  Corporation, which was formed on
          January  10,  1996  as Unipak Process, Inc., with IDC as the surviving
          corporation. The Company's principal office is located in Buffalo, New
          York.

          On  December  9,  2004,  IDC  amended the articles of incorporation to
          increase  the  authorized  shares  of  common stock from 50,000,000 to
          800,000,000, and authorized up to 100,000,000 shares of all classes of
          Preferred  Stock.

          On  December  9,  2004,  the Company established a series of Preferred
          Stock,  Class  A, $0.001 Par Value. The Company is authorized to issue
          1,000,000 shares of Preferred Stock, Class A, with each share carrying
          200  to 1 voting rights and convertible into common stock on a 200 for
          1  basis.

          In  April  2005,  the Company established a series of Preferred Stock,
          Class  B,  $0.001  Par  Value.  The  Company  is  authorized  to issue
          5,000,000  shares, with each share carrying 500 to 1 voting rights and
          not  convertible  into  common  stock.

          PRINCIPLES  OF  CONSOLIDATION
          In  January  2005,  IDC  formed  a wholly-owned subsidiary, FreshWater
          Technologies,  Inc., for the purpose of transferring the water related
          assets  and  business  to  a  separate  company  so  that  IDC  could
          concentrate  its  efforts  on  identifying  and  closing  focused
          acquisitions,  building  IDC  through  steady  planned  growth.

          The  consolidated  financial  statements  include  the  accounts  of
          International  Development  Corp.  and  its  wholly-owned  subsidiary,
          FreshWater  Technologies,  Inc.  (the  "Company").  All  significant
          intercompany  balances  and  transactions  have  been  eliminated  in
          consolidation.

          SCOPE  OF  BUSINESS
          The  Company, through its wholly-owned subsidiary, is an international
          marketer  and  distributor  of  water  purification  systems  using
          ultraviolet,  ozone,  and  water activator technology. The markets the
          Company  targets  are  Canada,  the  United States of America, Mexico,
          Costa  Rica,  Panama,  and  Peru.

NOTE B -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES
          METHOD  OF  ACCOUNTING
          The  Company maintains its books and prepares its financial statements
          on  the  accrual  basis  of  accounting.

          CASH  AND  CASH  EQUIVALENTS
          Cash  and  cash  equivalents  include  time  deposits, certificates of
          deposit,  and  all  highly  liquid  debt  instruments  with  original
          maturities  of  three  months  or less. The Company maintains cash and
          cash  equivalents  at  financial  institutions, which periodically may
          exceed  federally  insured  amounts.

                                                                   - continued -


                                      F - 7
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE B -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

          ACCOUNTS  RECEIVABLE  AND  ALLOWANCE  FOR  DOUBTFUL  ACCOUNTS
          The  Company  extends  credit to its customers in the normal course of
          business  and  collateral  is  generally  not  required  for  trade
          receivables.  Exposure to credit risk is controlled through the use of
          credit  approvals,  credit  limits and monitoring procedures. Accounts
          receivable are reported net of an allowance for doubtful accounts. The
          Company  estimates  the  allowance  based  on its analysis of specific
          balances,  taking  into consideration the age of the past due account,
          and anticipated collections resulting from legal issues. An account is
          considered  past  due  after  ninety  (90) days from the invoice date.
          Changes  to the allowance for doubtful accounts are charged to expense
          and  reduced  by  charge-offs,  net  of  recoveries.

          INVENTORY
          Inventory consists of merchandise held for resale and is stated at the
          lower  of  cost  or  market  using  the  first-in,  first-out  method.

          REVENUE  RECOGNITION
          Sales  are  recorded  when  products  are shipped to customers and the
          customer's  right  of return has expired. Provisions for discounts and
          rebates  to  customers,  estimated  returns  and  allowances and other
          adjustments  are provided for in the same period the related sales are
          recorded.

          USE  OF  ESTIMATES
          The  preparation  of financial statements in conformity with generally
          accepted  accounting  principles requires management to make estimates
          and  assumptions  that  affect  the  reported  amounts  of  assets and
          liabilities and disclosure of contingent assets and liabilities at the
          date  of the financial statements and the reported amounts of revenues
          and  expenses  during  the reporting period. Actual results can differ
          from  those  estimates.

          LOSS  PER  COMMON  SHARE
          Loss  per  common  share  is  computed in accordance with Statement of
          Financial  Accounting  Standards  No.  128,  "Earnings  Per Share," by
          dividing  income  (loss)  available to common stockholders by weighted
          average  number  of  common  shares  outstanding  for  each  period.

          INCOME  TAXES
          The  Company accounts for income taxes in accordance with Statement of
          Financial Accounting Standards No. 109, "Accounting for Income Taxes,"
          using  the  asset and liability approach, which require recognition of
          deferred  tax  liabilities  and  assets  for  the  expected future tax
          consequences of temporary differences between the carrying amounts and
          the  tax  basis  of  such assets and liabilities. This method utilizes
          enacted  statutory  tax  rates  in  effect  for  the year in which the
          temporary  differences  are  expected  to  reverse and gives immediate
          effect  to  changes  in  income tax rates upon enactment. Deferred tax
          assets  are  recognized, net of any valuation allowance, for temporary
          differences  and  net  operating  loss  and tax credit carry forwards.
          Deferred  income  tax  expense  represents  the change in net deferred
          assets  and  liability  balances.

                                                                   - continued -


                                      F - 8
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE B -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  CONTINUED

          IMPAIRMENT  OF  LONG-LIVED  ASSETS
          The  Company  evaluates its long-lived assets for financial impairment
          on  a  regular  basis  in  accordance  with  Statement  of  Financial
          Accounting  Standards  No.  144,  "Accounting  for  the  Impairment or
          Disposal  of  Long-Lived  Assets."  The  Company  evaluates  the
          recoverability of long-lived assets not held for sale by measuring the
          carrying  amount of the assets against the estimated discounted future
          cash flows associated with them. At the time such evaluations indicate
          that the future discounted cash flows of certain long-lived assets are
          not  sufficient  to  recover  the  carrying  value of such assets, the
          assets  are  adjusted  to  their  fair  values.

          RECLASSIFICATIONS
          Certain  amounts  in  the  prior  year  financial statements have been
          reclassified  to  conform  with  the  current  year  presentation. The
          reclassifications  made  to  the  prior year have no impact on the net
          income  (loss),  or  overall presentation of the financial statements.

NOTE C -  MARKETING  RIGHTS
          HANKIN  OZONE  SYSTEMS,  LTD
          The Company purchased the exclusive marketing rights to distribute the
          products  of  Hankin  Ozone  Systems,  LTD  ("Hankin")  in Canada, the
          Caribbean,  and  Mexico  from 1421209 Ontario Limited. The acquisition
          occurred on June 21, 2000 in which Ozolutions Inc. received the rights
          to  begin  distributing the products of Hankin and became obligated to
          1421209  Ontario  Limited  for  the  purchase  price  described below.

          The  payment  terms  (as  amended  on  November  7,  2000)  were  for
          $1,017,217,  and the issuance of 8,000,000 common shares of Ozolutions
          Inc.  A  non-refundable payment of $17,217 was paid to 1421209 Ontario
          Limited  in  June  2000.

          In  November 2000, the 8,000,000 shares of common stock were delivered
          to 1421209 Ontario Limited. The Company had an agreement to repurchase
          6,000,000  of  the  8,000,000  shares for $81,699. During August 2004,
          this  agreement  was  canceled  by  both parties. In October 2004, the
          Company  entered  into  an  agreement  with 1421209 Ontario Limited to
          repurchase 3,000,000 common shares for $25,000. The payment terms were
          a  $10,000  non-refundable  deposit  upon acceptance of the agreement,
          with  the  balance  of  $15,000 due on or before February 1, 2005. The
          Company  defaulted  on the second installment, therefore the agreement
          was  cancelled  and  1421209 Ontario Limited retained ownership of the
          3,000,000  shares.

          In  April  2002, the exclusive marketing rights agreement with 1421209
          Ontario  Limited  was  cancelled  and  the obligation of $1,000,000 to
          1421209  Ontario  Limited  was  no  longer  due.

          In  September  2004, Hankin filed for bankruptcy. The Company has made
          arrangements  with another Canadian company to provide ozone products,
          as required. The deposit of $27,292 for 25 EntrOzone units was written
          off  in  full  as  of  August  31,  2004.

                                                                   - continued -


                                      F - 9
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE C -  MARKETING  RIGHTS  -  CONTINUED

          ELCE  INTERNATIONAL  INC.
          In  January 2002, the Company purchased the exclusive marketing rights
          to  distribute the water activator products of ELCE International Inc.
          ("ELCE") in Canada from ELCE. In February 2003, the Company determined
          that  it  could not meet the conditions of the marketing agreement for
          ELCE  in Canada. As a result, the Company lost the exclusive marketing
          rights  to  distribute  the  ELCE products in Canada. In addition, the
          previously  agreed  upon  distributor's  discount  on  purchases  was
          decreased  from  40% to 30%. Based on the above, the Company wrote off
          the  remaining  carrying  value  of  the exclusive marketing rights at
          February  28, 2003 which resulted in a charge to operations during the
          year  ended  August  31,  2003  in  the  amount  of  $171,067.

          In September 2003, the Company issued 250,000 restricted common shares
          to  the  President  of  ELCE  in order to maintain the relationship in
          Canada for the ELCE products. The issuance of common stock resulted in
          a charge to earnings of $15,000 during the year ended August 31, 2004.

NOTE D -  EQUITY  COMPENSATION  PLANS
          In  December 2004, the Company established an Employee Stock Incentive
          Plan and a Non-Employee Directors and Consultants Retainer Stock Plan.

          The  purpose  of  the Employee Stock Incentive Plan (the "Plan") is to
          provide  the  Employees,  who  make  significant  and  extraordinary
          contributions  to the long-term growth and performance of the Company,
          with  equity-based  compensation incentives, and to attract and retain
          the Employees. Under the Plan, the Company may issue up to 500,000,000
          shares  of  $0.001  par value common stock. The Plan has a term of ten
          years,  therefore,  will  expire  in  December  2014.

          The  purposes  of  the Non-Employee Directors and Consultants Retainer
          Stock  Plan  (the  "Plan")  are  to  enable the Company to promote the
          interests  of  the  Company  and  its  stockholders  by attracting and
          retaining Non-Employee Directors and Consultants capable of furthering
          the  future  success  of  the  Company  and by aligning their economic
          interests  more  closely  with those of the Company's stockholders, by
          paying  their  retainer or fees in the form of shares of the Company's
          common  stock.  Under the Plan, the Company may issue up to 50,000,000
          shares  of  $0.001  par value common stock. The Plan has a term of ten
          years,  therefore,  will  expire  in  December  2014.

          In December 2004, the FASB issued SFAS No. 123R, "Share-Based Payment"
          ("SFAS  123R").  SFAS  123R revises FASB Statement No. 123 "Accounting
          for  Stock-Based  Compensation"  and  supersedes  APB  Opinion  No. 25
          "Accounting  for  Stock  Issued  to Employees". SFAS 123R requires all
          public  and non-public companies to measure and recognize compensation
          expense  for  all  stock-based  payments  for services received at the
          grant-date  fair  value,  with  the  cost  recognized over the vesting
          period  (or  the requisite service period). SFAS 123R is effective for
          small  business  issuers for fiscal years beginning after December 15,
          2005.  As  such,  the Company is required to adopt these provisions at
          the  beginning  of  the fiscal year ended August 31, 2007. The Company
          has elected early adoption of SFAS 123R to the beginning of the fiscal
          year  ended  August  31,  2005.

                                                                   - continued -


                                     F - 10
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE D -  EQUITY  COMPENSATION  PLANS  -  CONTINUED

          In  March 2005, the SEC issued Staff Accounting Bulletin No. 107 ("SAB
          107"),  to  provide  further guidance regarding the interaction of the
          provisions  of  SFAS  123R  and  certain  SEC  rules  and regulations.

          During  the  year  ended  August  31,  2005, the Company granted stock
          options  for  433,000,000  shares  of  common  stock  to  employees as
          compensation for services rendered, under the Employee Stock Incentive
          Plan.  In accordance with the provisions of SFAS 123R and SAB 107, the
          Company  has  recognized  compensation  expense of $108,014 during the
          year  ended  August 31, 2005, for the fair value of the options at the
          date  of  the  grant  using an appropriate option-pricing model. As of
          August  31,  2005,  there  were  no  outstanding  options.

          During  the  year  ended August 31, 2005, the Company issued 9,500,000
          shares  of  common stock to a consultant for services rendered, valued
          at  $20,000,  under  the  Non-Employee Directors and Consultants Stock
          Plan.

NOTE E -  CONSULTING  AND  ADVISORY  AGREEMENTS
          On June 5, 2001, the Company entered into advisory agreements with the
          firms  of  David  Michael  LLC  and Feng Shui Consulting, Inc. In June
          2002,  David  Michael  LLC and Feng Shui Consulting, Inc. filed a suit
          against  the  Company  for  breach  of  contract.  The Company filed a
          counter  claim  and  third  party  complaint  denying  the substantive
          allegations  of  the  complaint  and  asserting breach of contract and
          fraud  in  connection with the transaction. In August 2004, the United
          States  District Court for the State of Utah dismissed the case in its
          entirety  with  prejudice,  with  each party to bear its own costs and
          fees.  As  part  of the dismissal, in September 2004, the Company paid
          $5,000  to  repurchase  the 800,000 common shares that were previously
          issued  to  the  plaintiffs. As of August 31, 2005, the 800,000 shares
          have not been received by the Company for cancellation, therefore, the
          shares  are  still  recorded  as  issued  and  outstanding.

          On  January  11, 2002, the Company entered into a financial consulting
          and  investment  banking  agreement  with  Chapman, Spira & Carson LLC
          ("Chapmam").  Chapman  cancelled  this  agreement  in  June  2002.

          In  June  2002,  Chapman  made  a  demand  for arbitration through the
          American Arbitration Association as provided in the agreement claiming
          $50,000 in fees, plus nine percent interest, and 200,000 shares of the
          Company's common stock. In February 2003, the judge returned a verdict
          against  Chapman  and awarded the Company approximately $22,000 net of
          any  Company  legal  fees.  The  amount  has  not been recorded in the
          accompanying  consolidated  financial  statements  as  the  Company is
          uncertain  that  the payment will be received. Chapman appealed to the
          New York State Supreme Court in 2004 and this appeal was dismissed. At
          the  present time, Chapman has appealed to the Court of Appeals in New
          York.

                                                                   - continued -


                                     F - 11
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE E -  CONSULTING  AND  ADVISORY  AGREEMENTS  -  CONTINUED

          In  October  2002, the Company entered into an agreement with Cybertek
          Capital  Management  Inc.  ("Cybertek") or its assignees to distribute
          the  Company's  products. The agreement was for a five year period. In
          exchange  for  these services, the Company granted options to purchase
          2,000,000  common  shares  at  $0.50 per share. The options would have
          vested  at  a  rate  of 10% per quarter beginning November 1, 2003 and
          would  have  had  a five year term. This issuance had no impact on the
          Company's  financial  statements. In June 2004, it was mutually agreed
          by both parties to terminate this agreement and all stock options were
          cancelled.

          On  October  1,  2004,  the  Company  entered  into  a  client service
          agreement  with  Alexander  &  Wade,  Inc.  and  Francis  A. Zubrowski
          ("Contractor")  for  a  term  of  three  months. The Contractor was to
          advise  and  assist  in  reviewing  the  Company's  customer  business
          portfolios  and  other business assets; to advise, assist, and provide
          business contacts to the Company for possible sale of products; and to
          advise,  assist,  and  provide  business management and infrastructure
          consulting  services.  The Company was to pay a monthly consulting fee
          of  $15,000. This agreement was renewable on a month-to-month basis by
          agreement  of  both  parties.  On February 1, 2005, this agreement was
          renewed for a term of five months, with all other terms and provisions
          remaining  unchanged.  This  renewed agreement was terminated in April
          2005.

          On  January  4,  2005,  the  Company  entered  into  a  client service
          agreement  with  Louis  Shefsky  ("Contractor")  for  a  term of eight
          months.  The  Contractor  was to assist the Company in identifying and
          researching  potential  acquisitions.  The  Company  was  to  pay  the
          Contractor  $5,000  in  cash  or  free  trading  Company  common stock
          monthly.  This  agreement  was  terminated  in  April  2005.


NOTE F -  RELATED  PARTY  TRANSACTIONS
          In  September  2004,  Betty-Ann Harland was appointed CEO and Chair of
          the  Board of Directors of the Company, and received 15,000,000 shares
          of  common  stock  in  consideration for $25,000. In January 2005, the
          15,000,000  common  shares  were  exchanged  for  1,000,000  Class  A
          Preferred  Shares.  In  July 2005, the Board of Directors approved the
          surrendering and cancellation of 900,000 Class A Preferred Shares held
          by  Betty-Ann  Harland.

          In  July  2005,  the  Board  of  Directors  authorized the issuance of
          1,000,000  Class  B  Preferred  Shares  to  Betty-Ann  Harland  in
          consideration  of  $1,000.

          On  October  1,  2004,  the  Company  entered  into  a  client service
          agreement with Ameri-can Equipment Sales & Leasing Inc. ("Ameri-can"),
          a company 100% owned by the spouse of the Company's CEO, for a term of
          three  months. Ameri-can is to advise, assist, and provide support for
          the restructuring and re-organization of the Company. The Company paid
          $150,000  for  these  services, in four monthly payments commencing in
          December  2004.  This agreement is renewable on a month-to-month basis
          by  agreement  of  both parties. As of August 31, 2005, this agreement
          has  not  been  renewed  since  the  expiration  of the original term.

                                                                   - continued -


                                     F - 12
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE F -  RELATED  PARTY  TRANSACTIONS  -  CONTINUED

          Certain  disbursements  of the Company have been paid by two directors
          of  the  Company,  therefore  a  Due  to  Directors  account  has been
          established.  The balance at August 31, 2005 and 2004 was $367,696 and
          $149,897,  respectively.  The  amount  due is non-interest bearing and
          contains  no  formal repayment terms. The Company has imputed interest
          at  the  prime  rate plus 1% and charged operations with an offsetting
          credit  to  additional  paid-in  capital.

          Certain  disbursements of the Company have been paid by a stockholder,
          therefore  a  Due  to  Stockholder  account  has been established. The
          balance  at  August  31,  2005  and  2004  was  $172,940  and $107,327
          respectively.  The  amount due is non-interest bearing and contains no
          formal  repayment terms. The Company has imputed interest at the prime
          rate  plus  1%  and  charged  operations  with an offsetting credit to
          additional  paid-in  capital.

          The  Company used office space in a facility owned by a stockholder at
          no  cost.  The  estimated  fair  rental  of the office space is deemed
          immaterial  to  the  consolidated  financial  statements.

          In  October 2004, the Company entered into a consulting agreement with
          its  Chief  Executive  Officer  for  a  five  year  term,  with annual
          compensation  of  $220,000.

          In  October  2004, the Company entered into consulting agreements with
          its Chief Operating and Chief Financial Officers for three year terms,
          each  with  annual  compensation  of  $100,000.

NOTE G -  GOING  CONCERN
          The Company's consolidated financial statements have been presented on
          the  basis  that  it  is  a  going  concern,  which  contemplates  the
          realization  of  assets  and  the  satisfaction  of liabilities in the
          normal  course  of  business.  The  Company has reported net losses of
          $1,131,102  and $385,440 for the years ended August 31, 2005 and 2004,
          respectively.  As  a  result,  there  is  an  accumulated  deficit  of
          $3,141,922  at  August  31,  2005.

          The  Company's  continued  existence  is dependent upon its ability to
          raise capital and/or to successfully market and sell its products. The
          consolidated  financial statements do not include any adjustments that
          might be necessary should the Company be unable to continue as a going
          concern.

NOTE H -  STOCK  OPTIONS
          Prior  to  the  adoption  of  the  Employee  Stock  Incentive Plan and
          Non-Employee Directors and Consultants Retainer Stock Plan in December
          2004,  the  Company  had a stock option plan under which it could have
          granted  options  to  purchase  shares  of the Company's common stock.
          Options  vested  immediately  and  had  varying  expiration  dates.

                                                                   - continued -


                                     F - 13
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE H -  STOCK  OPTIONS  -  CONTINUED

          The  Company had elected to follow Accounting Principles Board Opinion
          (APBO)  No.  25  and  related  interpretations  in  accounting for its
          stock-based  compensation  made to its employees under this plan. APBO
          No. 25 required no recognition of compensation expense for most of the
          stock-based compensation arrangements provided by the Company, namely,
          broad-based  employee stock purchase plans and option grants where the
          exercise  price was equal to or less than the market value at the date
          of  grant.  However,  APBO No. 25 required recognition of compensation
          expense  for  variable  award  plans  over the vesting periods of such
          plans,  based  upon  the  then-current market values of the underlying
          stock. In contrast, Statement of Financial Accounting Standards (SFAS)
          No.  123,  Accounting for Stock-Based Compensation, as amended by SFAS
          No.  148,  Accounting  for  Stock-Based  Compensation - Transition and
          Disclosure  -  an  amendment  of  FASB  Statement  No.  123,  required
          recognition  of  compensation  expense  for  grants  of  stock,  stock
          options,  and  other  equity  instruments, over the vesting periods of
          such  grants,  based  on the estimated grant-date fair values of those
          grants.  Stock  options  and  awards  made to directors, investors and
          consultants were subject to the provisions of SFAS No. 123.

          DIRECTORS
          In  January  2004,  the  Company granted an option to purchase 125,000
          common  shares  at  $0.10  per  share  to  an  Officer/Director of the
          Company.  This  grant had no impact on the statement of operations for
          the  year  ended  August  31,  2004.

          In September 2004, the Company and all of the option holders agreed to
          cancel  all outstanding Directors' options, effective as of August 31,
          2004.

          VENDORS
          During  2002,  the  Company granted stock options fo 500,000 shares of
          common  stock  to  vendors  in  exchange  for  marketing  rights.  In
          accordance  with  SFAS  No.  123, the Company recorded these marketing
          rights  at  $237,975  in  2002  which represents the fair value of the
          options  at  the  date  of  grant using a Black Scholes option-pricing
          model.  In  September  2003  these  options  were  mutually cancelled.

NOTE I -  INCOME  TAXES
          At  August 31, 2005 and 2004, the Company had approximately $2,965,000
          and  $1,835,000 accumulated tax losses to apply against future taxable
          income. The net operating loss carry forwards begin to expire in 2011.
          The  Company  has  fully reserved for any future tax benefits from the
          net  operating  loss carry forwards since it has not generated any net
          income  to date. The Company has no other material deferred tax assets
          or  liabilities  for  the  periods  presented.

NOTE J -  FAIR  VALUE  OF  FINANCIAL  INSTRUMENTS
          The  fair  value  of  cash  and cash equivalents, accounts receivable,
          inventory,  prepaid expenses, deposits, accounts payable, and deferred
          revenue  approximated  book  value at August 31, 2005 and 2004 because
          their  maturity  is  generally  less  than  one  year  in  duration.

          The fair value of due to directors and due to stockholder could not be
          obtained  without  incurring  excessive  costs as they have no readily
          determinable  market  price.


                                     F - 14
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE K -  PROPOSED  ACQUISITIONS
          In  May  2002,  the  Company  signed a letter of intent to acquire the
          assets  of  Electrical  Systems  in Engineering ("ESE"), an electrical
          parts  distribution  company. As proposed, the Company would have paid
          approximately  $1,500,000  in  cash  to  acquire  the  assets  of ESE.
          Completion  of  this  transaction  was  subject  to  a  number  of
          contingencies,  including  completion  of  due diligence review of the
          parties  involved,  negotiation  of  definitive agreements between the
          parties,  and  arranging  for  the  financing  required  to  pay  the
          consideration for the assets to be acquired. This proposed acquisition
          was  abandoned  during  2005.

NOTE L -  RECENTLY  ISSUED  ACCOUNTING  STANDARDS
          In  November  2004,  the Financial Accounting Standards Board ("FASB")
          issued  Statement  of  Financial  Accounting Standard ("SFAS") No. 151
          "Inventory  Costs  -  an  amendment  of  ARB No. 43, Chapter 4" ("SFAS
          151").  This  statement  amends the guidance in ARB No. 43, Chapter 4,
          "Inventory Pricing," to clarify the accounting for abnormal amounts of
          idle  facility  expense,  freight, handling costs, and wasted material
          (spoilage).  SFAS  151  requires  that  those  items  be recognized as
          current-period  charges.  In  addition,  this  Statement requires that
          allocation  of  fixed  production  overheads to costs of conversion be
          based  upon  the  normal  capacity  of  the production facilities. The
          provisions  of SFAS 151 are effective for fiscal years beginning after
          June  15,  2005.  As  such,  the  Company  is  required to adopt these
          provisions  at the beginning of the fiscal year ended August 31, 2006.
          The  Company  is  currently  evaluating  the impact of SFAS 151 on its
          consolidated  financial  statements.

          In  December  2004,  the FASB issued SFAS No. 152 "Accounting for Real
          Estate Time-Sharing Transactions - an amendment of FASB Statements No.
          66  and  67" ("SFAS 152"). This statement amends FASB Statement No. 66
          "Accounting  for  Sales  of  Real  Estate"  to reference the financial
          accounting  and  reporting  guidance  for  real  estate  time-sharing
          transactions  that  is  provided  in  AICPA Statement of Position 04-2
          "Accounting  for  Real Estate Time-Sharing Transactions" ("SOP 04-2").
          SFAS  152  also amends FASB Statement No. 67 "Accounting for Costs and
          Initial  Rental  Operations of Real Estate Projects" to state that the
          guidance  for  incidental  operations  and costs incurred to sell real
          estate  projects  does  not  apply  to  real  estate  time-sharing
          transactions, with the accounting for those operations and costs being
          subject  to  the  guidance in SOP 04-2. The provisions of SFAS 152 are
          effective  in fiscal years beginning after June 15, 2005. As such, the
          Company  is required to adopt these provisions at the beginning of the
          fiscal  year  ended  August  31,  2006. Management does not expect the
          adoption  of  SFAS  152  to have a significant impact on the financial
          position  or  results  of  operations  of  the  Company.

          In  December  2004,  the  FASB  issued  SFAS  No.  153,  "Exchanges of
          Nonmonetary Assets - an amendment of APB Opinion No. 29" ("SFAS 153").
          SFAS  153  replaces  the  exception from fair value measurement in APB
          Opinion  No. 29 for nonmonetary exchanges of similar productive assets
          with  a general exception from fair value measurement for exchanges of
          nonmonetary  assets  that  do  not  have  commercial  substance.  A
          nonmonetary exchange has commercial substance if the future cash flows
          of  the entity are expected to change significantly as a result of the
          exchange.  SFAS  153  is  effective  for all interim periods beginning
          after  June  15, 2005. As such, the Company is required to adopt these
          provisions  at  the beginning of the fiscal quarter ended November 30,
          2005.  The  Company  is currently evaluating the impact of SFAS 153 on
          its  consolidated  financial  statements.

                                                                   - continued -


                                     F - 15
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE L -  RECENTLY  ISSUED  ACCOUNTING  STANDARDS  -  CONTINUED

          In  May  2005,  the  FASB issued SFAS No. 154, "Accounting Changes and
          Error  Corrections  -  a  replacement  of  APB Opinion No. 20 and FASB
          Statement  No.  3" ("SFAS 154"). SFAS 154 changes the requirements for
          the  accounting for and reporting of a change in accounting principle.
          These requirements apply to all voluntary changes and changes required
          by  an  accounting  pronouncement  in  the  unusual  instance that the
          pronouncement  does  not  include specific transition provisions. SFAS
          154  is  effective for fiscal years beginning after December 15, 2005.
          As  such,  the  Company  is  required to adopt these provisions at the
          beginning  of  the  fiscal  year ended August 31, 2007. The Company is
          currently  evaluating  the  impact  of  SFAS  154  on its consolidated
          financial  statements.

NOTE M -  COMMITMENTS
          In  April  2003,  the Company accepted a $5,000,000 financing proposal
          from  U.S.  Capital, Inc., a California based investment banking firm.
          The  financing  commitment  is  comprised  of  the following elements:

          -    $2,500,000  will  be provided in the form of senior secured debt.
               The  debt  has  a  5 year term with a 10 year amortization and an
               automatic  option  to  extend  for another 5 years. Principal and
               interest  will  be  due  at the end 10 years. The simple interest
               rate  is  11.25%  per  year.

          -    8,000,000  restricted common shares will be issued for $2,500,000
               with  a put option to buy back 4,000,000 shares for $1,250,000 at
               the end of 5 years and 4,000,000 shares for $1,250,000 at the end
               of 10 years. The Company will pay an annual consulting fee of 10%
               per  year  of  the  amount  outstanding  under  this  part of the
               financing  agreement.

          -    The Company paid a $50,000 commitment fee to secure the financing
               which  U.S. Capital, Inc. expects to conclude in 2006. During the
               year  ended  August  31, 2004, $10,000 of this commitment fee was
               refunded  to  the  Company.

          In  May 2005, the Company wrote-off the balance of the commitment fee,
          as it appears U.S. Capital, Inc. will not be able to refund the fee if
          the  financing  is  not  completed.

NOTE N -  CONCENTRATIONS
          During the year ended August 31, 2005, the largest customer, a foreign
          corporation,  accounted  for  100%  of net sales. The Company does not
          believe  that  they  are  dependent  on  the current customer base for
          future  sales  as  we  have  agreements  with  several  distributors.

          During  the year ended August 31, 2004, the largest customer accounted
          for  86%  of  net  sales. Also, 86% of net sales during the year ended
          August  31,  2004  were  made  to  a  foreign  customer.

          The Company is dependent on a third-party vendor for all of its supply
          of  water-activated  purification systems. The Company is dependent on
          the  ability of its supplier to provide products on a timely basis and
          on favorable pricing terms. The loss of this supplier or a significant
          reduction  in  product  availability  from  this supplier could have a
          material  adverse effect on the Company. The Company believes that its
          relationship  with  this  supplier  is  excellent.


                                     F - 16
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  (FORMERLY OZOLUTIONS INC.) AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
--------------------------------------------------------------------------------


NOTE O -  SUBSEQUENT  EVENTS
          On  September 29, 2005, the Board of Directors approved the following:
               1.   Discretionary approval to implement a reverse stock split of
                    the  common  stock on the basis of up to 1,000 to 1, pending
                    stockholder  approval.
               2.   Discretionary approval for the FreshWater Technologies, Inc.
                    Stock  Purchase  Agreement  between  the  Company  and  Max
                    Weissengruber,  the  Company's Chief Operations Officer, and
                    D.  Brian  Robertson, the Company's Chief Financial Officer.
                    The  Company  will  sell  100%  of  the outstanding stock of
                    FreshWater  Technologies,  Inc. to Mr. Weissengruber and Mr.
                    Robertson  for  a  total  purchase price of $60,210, pending
                    stockholder  approval.  The  purchase  price  will  be  paid
                    through  the  forgiveness of debts owed to Mr. Weissengruber
                    and  Mr.  Robertson by the Company. The fair market value of
                    the  liabilities  of  FreshWater  Technologies,  Inc.  being
                    assumed  by  Mr.  Weissengruber and Mr. Robertson exceed the
                    assets  being sold to Mr. Weissengruber and Mr. Robertson by
                    $134,532.
               3.   Established a series of Preferred Stock, Class C, $0.001 Par
                    Value. The Company is authorized to issue 15,000,000 shares,
                    which  are  convertible  into  common stock on a one for one
                    basis  and  carry  one  for  one  voting  rights.

          On  October  12, 2005, the Company entered into an Exclusive Licensing
          Agreement  with  Wataire Industries, Inc., an unrelated party, for the
          exclusive  right  to  distribute  and  sell the technology-based water
          generation  and  purification  products of Wataire Industries, Inc. in
          the  United  States  of  America.  In  consideration  of the Exclusive
          Licensing Agreement, the Company issued 15,000,000 shares of Preferred
          Stock,  Class  C.


                                      F-17
<PAGE>
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

     None.

ITEM 8A. CONTROLS AND PROCEDURES.

     Disclosure  controls  and procedures are controls and other procedures that
are  designed  to  ensure that information required to be disclosed by us in the
reports  that  we  file or submit under the Exchange Act is recorded, processed,
summarized and reported, within the time periods 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 by us in the reports that we file under the
Exchange  Act  is  accumulated and communicated to our management, including our
principal  executive  and  financial  officers,  as  appropriate to allow timely
decisions  regarding  required  disclosure.

     Evaluation  of disclosure and controls and procedures. As of the end of the
period  covered  by  this  Annual  Report, we conducted an evaluation, under the
supervision  and with the participation of our chief executive officer and chief
financial  officer,  of  our  disclosure  controls and procedures (as defined in
Rules  13a-15(e)  of  the  Exchange Act).

Based  on  this  evaluation,  our  chief  executive  officer and chief financial
officer  concluded  that our disclosure controls and procedures were ineffective
to  ensure  that  information  required to be disclosed by us in reports that we
file  or  submit  under  the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in Securities and Exchange Commission
rules  and  forms.  The ineffective controls and procedures resulted in our late
filing  of  certain  8-K  Forms for the sale of unregistered securities and were
determined  to  be an isolated incident and had an immaterial effect on our Form
10-KSB  Annual  Report. Management has taken the necessary actions to revise the
ineffective  controls  and  procedures  to  prevent future failures, which was a
direct  result  of  a  breakdown  in  communications  on  this  matter.

     Changes  in internal controls over financial reporting. There was no change
in  our  internal  controls,  which  are included within disclosure controls and
procedures,  during  our most recently completed fiscal year that has materially
affected,  or  is reasonably likely to materially affect, our internal controls.

ITEM 8B. OTHER INFORMATION.

     On  April  7,  2005,  we designated a class o Series B Preferred Stock. The
series  consists  of  5,000,000  shares  authorized.  The shares of the Series B
Preferred  Stock  shall  not  be  convertible  into  shares of the Common Stock,
Preferred  Stock,  or  any  other  securities  of  the  Company.  On all matters
submitted  to  a  vote  of  the  holders of the Common Stock, including, without
limitation,  the  election  of  directors,  a  holder  of shares of the Series B
Preferred  Stock  shall be entitled to the number of votes on such matters equal
to  the  number  of  shares  of the Series B Preferred Stock held by such holder
multiplied  by  500.  If no such record date is established, the date to be used
for the determination of the stockholders entitled to vote on such matters shall
be  the date on which notice of the meeting of stockholders at which the vote is
to  be  taken  is  marked,  or  the  date any written consent of stockholders is
solicited  if  the vote is not to be taken at a meeting. The holders of Series B
Preferred  Stock  shall  not  vote  as a separate class, but shall vote with the
holders  of  the  Common  Stock. Except as otherwise may be provided by law, the
holders  of  the  Series  B Preferred Stock shall be entitled to one vote on all
matters  submitted  to  the  vote  of  the  holders  of  the  Preferred  Stock.

     On  October  6,  2005, we designated a Series C Preferred Stock. The series
consists  of  15,000,000 shares authorized. Each share of the Series C Preferred
Stock  may  be  converted  into  one  share  of our Common Stock. On all matters
submitted  to  a  vote  of  the  holders of the Common Stock, including, without
limitation,  the  election  of  directors,  a  holder  of shares of the Series C
Preferred  Stock  shall be entitled to the number of votes on such matters equal
to  the  number  of  shares  of the Series C Preferred Stock held by such holder
multiplied  by  the  number of shares of our Common Stock each such share of the
Series  C  preferred  stock  shall  then  be  convertible.


                                    PART III

ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

     Our  directors  and  executive  officers  are:

<TABLE>
<CAPTION>
            NAME         AGE                 POSITION                  POSITION HELD SINCE
     ------------------  ---  ---------------------------------------  -------------------
<S>                      <C>  <C>                                      <C>
     Betty-Ann Harland   53   Chairman, Chief Executive Officer, and          2004
                                             Director

     Max Weissengruber   67   President, Chief Operating Officer, and         2000
                                             Director

     D. Brian Robertson  63           Chief Financial Officer                 2004

     Douglas Robertson   67                  Director                         2001

     Richard Proulx      52                  Director                         2005

     Arthur N. Kelly     44                  Director                         2004
</TABLE>

     Our  executive  officers  are  elected  annually by our board of directors.
There  are  no  family relationships among our directors and executive officers.

     Betty-Ann  Harland  has  31  years  of  experience  in  a variety of senior
management  positions.  Prior  to  becoming our chief executive officer, she was
vice-president  of  Ameri-can  Equipment  Sales  and  Leasing.  Prior to joining
Ameri-can  Equipment  Sales  and  Leasing, she fulfilled a number of significant
managerial  responsibilities  in the automotive industry. From 1988 to 1993, she
worked  in  finance  and  insurance  and  sales consulting for Decarie Motors, a
Montreal luxury car dealer carrying Jaguar, Rolls Royce, Bentley and Range Rover
product  lines. From 1994 until 1995, she was a finance and insurance specialist
for  Addison  Bay,  a  Toronto  Cadillac,  Pontiac,  and  Buick  dealer.

     Max  Weissengruber has served as our president since April, 2000. From 1980
to  1984,  he  was  a  manager  of  consulting  services  for KPMG, a world wide
professional  consulting  firm  specializing  in  business  advice fro small and
medium sized companies. He then joined Wilson Learning International as director
of  marketing  specializing  in  sales and customer service consulting for firms
such  as General Motors and IBM. In 1993 he became managing partner and owner of
Acris Partners, a marketing and consulting firm specializing in employee surveys
and  marketing  communications  and  sales  training  programs.  A  graduate  in
Behavioral Sciences from Michigan State University, he has taught Organizational
Behaviour  at  the University of Toronto and Entrepreneurial Studies for the MBA
Program  at  the  Canadian  School  of  Management  in  Toronto.

     D.  Brian  Robertson,  a  Chartered  Accountant,  is  responsible  for  our
financial  management,  preparation  of  all  financial  reports,  forecasts and
budgets as well as assuring financial compliance with all regulatory authorities
and liaison with auditors. In 1959, he joined Touche Ross & Co. and obtained his
Chartered  Accountant's degree in 1964. In 1982, he became an investment advisor
for  a  national  investment  dealer  and in 1988 he became a vice-president and
director  of  Continental  Securities  Limited.  During  the  1990's,  he  was
self-employed  as  a  business and financial consultant to a number of different
business  enterprises.  In 2000, he was instrumental in founding Ozolutions Inc.
where  he continued to act as a financial consultant and business advisor in the
development  of  our  water  treatment  business.


                                       13
<PAGE>
     Douglas  R.  Robertson  has served as our chief financial officer from July
2003  until  September  23,  2004. Mr. Robertson has been general manager of MTL
Trading  of  Toronto,  Ontario  since  May  2001.  MTL Trading is engaged in the
business  of  buying  and selling meat and poultry products. For over five years
prior  to May 2001, Mr. Robertson was the president and owner of Robertson Foods
of  Toronto,  Ontario, a company engaged in the business of exporting pork, beef
and  poultry.

     Arthur  N. Kelly has 18 years of marketing, sales and management experience
and is currently vice president of sales-North America for ELTEK Energy where he
is  responsible  for the development and growth of all ELTEK Energy sales in the
U.S. and Canadian markets. He attended Concordia University in Montreal where he
earned  his  Bachelor  of Business Administration degree. Mr. Kelly held various
sales  and  management  positions  with Marconi Communications from 1988 to 2001
where  he  was  responsible  for  sales  of  power  generation and communication
supplies  to  major North American communications companies. Mr. Kelly was sales
manager  for  S.N.P.  Associates  in  France from 1986 to 1988 and also district
sales  manager  for  Pylon  Electronics  in  Montreal  from  1985  to  1986.

     Richard  Proulx Richard Proulx has an extensive background in marketing and
sales  And  presently  is  Director,  Sales  of Cash Acme, Canada, a division of
Reliance  Manufacturing. The Company is a world-wide, Australian based specialty
water  valve  manufacturer  Supplying  its  products  to  the  commercial  and
residential building industry. Prior To joining Cash Acme Canada, Richard Proulx
was North American Sales Manager for Reliance Manufacturing's product launch and
North  American  distribution  network.  From  1998 to 2002,he was General Sales
Manager  of  IIG specialties responsible for Introducing new industrial products
to  the  North American market and managing US AND Canadian sales operations for
existing  product  lines.  From  1985  to  1997,Ricahrd Proulx was President and
Founder  of  Terval  Sales  and  Services,  a  prominent  Plumbing  and  Heating
manufacturer's  sales  agency in Toronto with $ 6 million In annual sales and 12
employees.  He  received  his  C.E.T.  in  Mechanical  Building  Sciences  from
St.Laurent  College  In  1974  and  his  diploma in Business Administration from
Vanier  College  in  1976.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

     Section  16(a)  of  the  Exchange  Act  requires  our  directors, executive
officers  and  persons who own more than 10 percent of a registered class of our
equity securities, file with the SEC initial reports of ownership and reports of
changes  in ownership of our equity securities.  Officers, directors and greater
than  10  percent stockholders are required by SEC regulation to furnish us with
copies  of  all  Section  16(a)  forms they file.  Based solely upon a review of
copies  of  such  forms  filed  on  Forms  3,  4,  and 5, and amendments thereto
furnished  to  us,  we  believe  that during the year ended August 31, 2005, our
executive  officers, directors and greater than 10 percent beneficial owners did
not  comply  on  a  timely  basis  with  all  Section 16(a) filing requirements.
Specifically,  all  of our officers and directors were late in the filing of the
required  forms.

COMMITTEES OF THE BOARD OF DIRECTORS

     Compensation  Committee.  Our  board  of  directors  has recently created a
compensation  committee.  On  April  13,2005  the  Board  of Directors appointed
Douglas  Robertson and Richard Proulx to the Compensation Committee with Douglas
Robertson  as Chair. The compensation committee will make recommendations to the
board  of  directors  concerning  salaries  and  compensation  for our executive
officers and employees. Our board adopted a written charter for the compensation
committee. Since the compensation committee has been formed recently, there have
been  no  meetings  held  to  date.

     Audit  Committee.  Our  board  of  directors  has recently created an audit
committee  which will be directly responsible for the appointment, compensation,
and  oversight  of the work of any registered public accounting firm employed by
us (including resolution of disagreements between our management and the auditor
regarding financial disclosure) for the purpose of preparing or issuing an audit
report  or  related  work.  Our  board  adopted  a written charter for the audit
committee.  The  audit  committee  will review and evaluate our internal control
functions.  The  Board of directors appointed Arthur Kelly and Douglas Robertson
to  the  Audit  Committee  with  Arthur  Kelly  as  Chair.

     The  members  of  the  audit committee will be independent as defined under
Rule  4200(a)(15)  of  the  NASD's  listing  standards.

     Executive  Committee.  We  do not have an executive committee, although our
board  of  directors  is  authorized  to  create  one.

     Nominating  Committee.  Our  board  of  directors  has  recently  created a
nominating  committee.  No  meetings  have  been  held or members appointed. The
functions  to  be  performed  by  the  nominating  committee  include


                                       14
<PAGE>
selecting  candidates to fill vacancies on the board of directors, reviewing the
structure and composition of the board, and considering qualifications requisite
for  continuing board service. The nominating committee will consider candidates
recommended  by  any  of  our stockholders. Any such recommendation for the 2006
Annual  Meeting of Shareholders should be provided to our corporate secretary by
December  31,  2005.

     The  policies  and  procedures  with  respect  to the consideration of such
candidates  are  set  forth  below.

     The  recommended candidate is to be submitted to us in writing addressed to
our principal offices in Toronto, Ontario. The recommendation is to be submitted
by  the  date specified in Rule 14a-8 of the Securities Exchange Act of 1934, as
amended  for  submitting  shareholder  proposals to be included in the Company's
annual  shareholders'  meeting  proxy  statement.

     The  recommendation  shall  be  in  writing and shall include the following
information:  name  of candidate; address, phone, and fax number of candidate; a
statement  signed  by  the  candidate certifying that the candidate wishes to be
considered  for nomination to our board of directors; and information responsive
to  the  requirements of Regulation S-K, Item 401 with respect to the candidate;
and state the number of shares of our stock beneficially owned by the candidate.

     The recommendation shall include a written statement of the candidate as to
why the candidate believes that he meets the director qualification criteria and
would  otherwise  be  a  valuable  addition  to  our  board  of  directors.

     The  nominating  committee  shall  evaluate  the  recommended candidate and
shall, after consideration of the candidate after taking account of the director
qualification criteria set forth below, determine whether or not to proceed with
the  candidate  in  accordance  with  the procedures outlined under "Process for
Identifying  Candidates"  below.

     These  procedures do not create a contract between us, on the one hand, and
our  security holder(s) or a candidate recommended by our security holder(s), on
the  other  hand.  We  reserve the right to change these procedures at any time,
consistent  with  the  requirements of applicable law and rules and regulations.

     Director Qualifications Criteria. A majority of the board of directors must
be  "independent"  in accordance with NASDAQ, the Exchange Act and SEC rules and
regulations.  As  minimum qualifications, all candidates must have the following
characteristics:

-    The  highest  personal  and  professional  ethics,  integrity  and  values;

-    Broad-based  skills  and experience at an executive, policy-making level in
     business,  academia,  government  or  technology  areas  relevant  to  our
     activities;

-    A  willingness  to devote sufficient time to become knowledgeable about our
     business  and  to  carry  out  his duties and responsibilities effectively;

-    A commitment to serve on the board for two years or more at the time of his
     initial  election;  and

-    Be between the ages of 30 and 70, at the time of his initial election.

     Process  for  Identifying  and  Evaluating  Candidates.  The  nominating
     committee's  process  for  identifying  and  evaluating  candidates  is:

-    The chairman of the board, the nominating committee, or other board members
     identify the need to add new members to the board with specific criteria or
     to  fill  a  vacancy  on  the  board;

-    The  chair  of  the  nominating  committee initiates a search, working with
     staff  support  and  seeking input from the members of the board and senior
     management,  and  hiring  a  search  firm,  if  necessary;


                                       15
<PAGE>
-    The  nominating  committee  identifies  an  initial  slate  of  candidates,
     including  any  recommended  by  security  holders  and  accepted  by  the
     nominating  committee,  after taking account of the director qualifications
     criteria  set  forth  above;

-    The nominating committee determines if any board members have contacts with
     identified  candidates  and  if  necessary,  uses  a  search  firm;

-    The  chairman  of  the  board, the chief executive officer and at least one
     member  of  the  nominating  committee  interview prospective candidate(s);

-    The  nominating  committee  keeps  the  board  informed  of  the  selection
     progress;

-    The  nominating committee meets to consider and approve final candidate(s);
     and

     The  nominating  committee  presents selected candidate(s) to the board and
seeks  full  board  endorsement  of  such  candidate(s).

COMPENSATION OF DIRECTORS

     We  do not compensate any of our directors for their services as directors.
However,  we do reimburse our directors for expenses incurred in attending board
meetings.

CODE OF ETHICS

     We  have  adopted  a code of ethics that applies to our principal executive
officer,  principal  financial  officer,  principal  accounting  officer  or
controller,  or  persons  performing  similar  functions.  The code of ethics is
designed  to  deter  wrongdoing  and  to  promote:

-    Honest  and  ethical  conduct,  including the ethical handling of actual or
     apparent  conflicts  of  interest  between  personal  and  professional
     relationships;

-    Full,  fair, accurate, timely, and understandable disclosure in reports and
     documents  that  we  file  with, or submits to, the SEC and in other public
     communications  made  by  us;

-    Compliance with applicable governmental laws, rules and regulations;

-    The  prompt  internal reporting of violations of the code to an appropriate
     person  or  persons  identified  in  the  code;  and

-    Accountability for adherence to the code.

     A  copy  of  our  code  of  ethics  that applies to our principal executive
officer,  principal  financial  officer,  principal  accounting  officer  or
controller,  or  persons  performing similar functions has been previously filed
with  the  SEC.

     We  will  provide to any person without charge, upon request, a copy of our
code  of  ethics. Any such request should be directed to our corporate secretary
at  30  Denver  Crescent, Suite 200, Toronto, Ontario, Canada M2J 1G8, telephone
(416)  490-0254,  or  fax  (416)  495-8625.


                                       16
<PAGE>
ITEM 10. EXECUTIVE COMPENSATION.

SUMMARY OF CASH AND CERTAIN OTHER COMPENSATION

Summary  Compensation  Table

     The  following  table  provides  certain summary information concerning the
compensation earned by the named executive officers (determined as of the end of
the  last  fiscal year) for services rendered in all capacities to International
Development  Corp.  and  our  subsidiaries:

<TABLE>
<CAPTION>
                                  Annual Compensation              Long Term Compensation
                             ----------------------------  -------------------------------------
                                                                     Awards             Payouts
                                                           ---------------------------  --------
                                                 Other                    Securities
                                                Annual     Restricted     Underlying              All Other
     Name and        Fiscal                   Compensati      Stock      Options/SARs     LTIP    Compensati
Principal Position    Year   Salary   Bonus       on        Award(s)         (#)        Payouts       on
-------------------  ------  -------  ------  -----------  -----------  --------------  --------  ----------
<S>                  <C>     <C>      <C>     <C>          <C>          <C>             <C>       <C>
Betty-Ann Harland,    2005    $-0-     $-0-    $-251,667       -0-           $-0-         $-0-
Chairman, CEO         2004    $-0-     $-0-       N/A          -0-           $-0-         $-0-
and Director (1)      2003     N/A     N/A        N/A          N/A           N/A          N/A

Max Weissengruber,    2005    $-0-     $-0-    $-94,974        N/A           $-0-         $-0-
President, COO        2004    $-0-     $-0-      $-0-                        $-0-         $-0-
and Director (2)      2003     N/A     N/A      52,000                       N/A          N/A

D. Brian              2005    $-0-     $-0-    $-94,974        N/A           $-0-         $-0-
Robertson             2004    $-0-     $-0-       N/A                        $-0-         $-0-
CFO (3)               2003     N/A     N/A        N/A                        N/A          N/A
</TABLE>

(1)  Ms. Harland's employment contract commenced on October 1, 2004 as discussed
     below.
(2)  Mr. Weissengruber's management contract commenced on October 1, 2004 as
     discussed below.
(3)  Mr. Robertson's management contract commenced on October 1, 2004 as
     discussed below.

     The  compensation  program  for executives at the Company consists of three
key  elements:

-    A  base  salary,

-    A  performance  bonus,  and

-    Periodic  grants  and/or  options  of  our  common  stock.

     Base  Salary.  The  chief  executive officer and all other senior executive
officers  receive  compensation  base  on  such  factors as competitive industry
salaries,  a  subjective  assessment  of  the contribution and experience of the
officer,  and  the  specific recommendation by the chief executive officer.  For
fiscal  2005 no  base  salary  compensation  was  paid  to any of our executive
officers.

     Performance Bonus. A portion of each officer's total annual compensation is
in  the  form of a bonus. All bonus payments to officers must be approved by the
compensation committee based on the individual officer's performance and company
performance.  For  fiscal  2005  no  bonus  compensation  was paid to any of our
executive  officers.

     Stock  Incentive.  Stock options are granted to executive officers based on
their positions and individual performance.  Stock options provide incentive for
the  creation  of  stockholder value over the long term and aid significantly in
the recruitment and retention of executive officers.  The compensation committee
considers  the  recommendations  of the chief executive officer for stock option
grants  to  executive  officers  (other  than  the  chief executive officer) and
approves, disapproves or modifies such recommendation.  For fiscal 2005 no stock
option  grants  where  given  to  any  of  our  executive  officers.

EMPLOYMENT AGREEMENTS

     We  have  entered  into  various  employment agreements with certain of our
officers  and  affiliated  parties,  as  follows:

-    On  October  1, 2004, we executed an agreement with Ms. Harland whereby she
     would  perform various consulting services to us for a period of five years
     commencing  on  October  1,  2004.  We agreed to pay Ms. Harland the sum of
     $220,000  annually,  at  the  rate  of  $18,333.33  monthly.  Our  board of
     directors  will review this fee from time to time. In addition, Ms. Harland
     was  granted a $50,000 signing bonus and is entitled to a bonus of up to 50
     percent  of  her  annual  compensation  if and when granted by our board of
     directors  subject  to  the  achievement  of annual performance criteria as
     approved  by  the  board. Ms. Harland's duties include (i) execution of our
     business plan and implementing controls and procedures to ensure structured
     growth;  (ii)  identification and performance of due diligence of potential
     merger and acquisitions targets for our board of directors to review; (iii)
     developing  customer  relations  and  awareness;  (iv)  developing  and
     maintaining  government  public  relations;  and  (v)  any  other duties as
     determined  by  our  board  of  directors.

-    On  October  1,  2004,  we  executed  employment  an  agreement  with  Mr.
     Weissengruber whereby he agreed to act as our president and chief operating
     officer.  The  appointment  shall  be  for  a term of 36 months at $100,000
     annually,  to  be paid at the rate of $ 8,334.00 monthly. This compensation
     rate  will  be  reviewed annually by our board of directors, the first such
     review to occur within 12 months of the starting date. We have the right to
     terminate  the  agreement at any time with a payment of twice the remaining
     compensation  rate at the time of termination. These payments may be in the
     form  of  either  cash  or  company  stock  or  any  combination thereof as
     determined  by  our  board  of  directors  at  that  time.

-    On  October  1,  2004,  we  executed  employment an agreement with D. Brian
     Robertson  whereby  he  agreed  to  act as our chief financial officer. The
     appointment  shall  be  for a term of 36 months at $100,000 annually,


                                       17
<PAGE>
     to  be  paid at the rate of $ 8,334.00 monthly. This compensation rate will
     be  reviewed  annually  by our board of directors, the first such review to
     occur  within 12 months of the starting date. In addition, Mr. Robertson is
     entitled  to  a bonus of up to 50 percent of his annual compensation if and
     when granted by our board of directors subject to the achievement of annual
     performance  criteria  as  approved  by  the  board.  We  have the right to
     terminate  the  agreement at any time with a payment of twice the remaining
     compensation  rate at the time of termination. These payments may be in the
     form  of  either  cash  or  company  stock  or  any  combination thereof as
     determined  by  our  board  of  directors  at  that  time.

-    On October 1, 2004, we executed an agreement with Ameri-can Equipment Sales
     &  Leasing,  Inc., an affiliate of Ms. Harland, whereby Ameri-can agreed to
     advise,  assist  and  provide  support  for  our  restructuring  and
     re-organization.  The  duration  of these services is to be from October 1,
     2004  to  December  31,  2004.  We  agreed  to  pay  Ameri-can  the  sum of
     $150,000.00  in  cash  to  be paid in four payments commencing December 10,
     2004

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     The following table presents information regarding the beneficial ownership
of  all  shares  of  our  common  stock  as  of  the  record  date  by:

-    Each person who beneficially owns more than five percent of the outstanding
     shares  of  our  common  stock and preferred stock;

-    Each  of  our  directors;

-    Each  named  executive  officer;  and

-    All  directors  and  officers  as  a  group.

<TABLE>
<CAPTION>
                                                                 COMMON SHARES BENEFICIALLY
                                                                 --------------------------
                                                                          OWNED (2)
                                                                          ---------
NAME OF BENEFICIAL OWNER (1)                                      NUMBER         PERCENT
----------------------------                                   ------------  ---------------
<S>                                                            <C>           <C>
Betty-Ann Harland . . . . . . . . . . . . . . . . . . . . . .           -0-              -0-
Max Weissengruber . . . . . . . . . . . . . . . . . . . . . .           -0-              -0-
D. Brian Robertson (3). . . . . . . . . . . . . . . . . . . .     1,726,546            0.003
Douglas Robertson . . . . . . . . . . . . . . . . . . . . . .           -0-              -0-
Richard Proulx. . . . . . . . . . . . . . . . . . . . . . . .           -0-              -0-
Arthur N. Kelly . . . . . . . . . . . . . . . . . . . . . . .           -0-              -0-
                                                               ------------  ---------------
All directors and executive officers as a group (six persons)
                                                               ------------  ---------------

                                                               ------------  ---------------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,726,546            0.003
                                                               ============  ===============
</TABLE>

<TABLE>
<CAPTION>
                                                              PREFERRED SHARES BENEFICIALLY
                                                             -------------------------------
                                                                          OWNED
                                                                          -----
                                                                  NUMBER         PERCENT
                                                             ---------------  --------------
<S>                                                          <C>              <C>
Betty-Ann Harland . . . . . . . . . . . . Class A preferred          100,000     100 percent
                  . . . . . . . . . . . . Class B preferred        1,000,000     100 percent
</TABLE>

(1)  Unless  otherwise  indicated, the address for each of these stockholders is
     c/o  International  Development  Corp.,  30  Denver  Crescent,  Suite  200,
     Toronto,  Ontario,  Canada  M2J 1G8. Also, unless otherwise indicated, each
     person  named  in  the table above has the sole voting and investment power
     with  respect to our shares of common stock which she/he beneficially owns.
(2)  Beneficial  ownership  is  determined  in  accordance with the rules of the
     Securities  and  Exchange Commission. As of the date of this Annual Report,
     there  were  issued and outstanding 483,404,226 shares of our common stock.

(3)  Mr.  Robertson  owns  directly 1,662,440 shares of our common stock and his
     wife, Margaret Robertson, owns 164,106 shares of our common stock

     Other  than  as  stated  herein,  there  are  no arrangements, known to us,
including any pledge by any person of our securities, the operation of which may
at  a subsequent date result in a change in control of International Development
Corp.

     Other  than  as  stated herein, there are no arrangements or understandings
among members of both the former and the new control groups and their associates
with  respect  to  election  of  directors  or  other  matters.


                                       18
<PAGE>
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

CHANGE OF CONTROL

     On  September 23, 2004, Betty-Ann Harland acquired 15,000,000 shares of our
common  stock,  which  represented  30.51  percent of our issued and outstanding
common  stock.  In addition, Ms. Harland has proxies to vote 6,000,000 shares of
our  common  stock,  granted  by 1421209 Ontario Limited. The proxies expired on
February  1,  2005.  Ms. Harland was elected as our chairman of the board, chief
executive  officer  and  director  on  September  23,  2004.

     On  October  12,  2004,  1421209 Ontario Limited granted to us an option to
redeem 3,000,000 shares of our common stock, which are currently held in escrow,
for  a  total  sum  of  $25,000.00,  payable  in  two  installments.  The  first
installment  of  $10,000  was paid by us on October 12, 2004, and the balance of
$15,000.00  was  due  on  or  before  February 1, 2005.The second installment of
$15,000.00  was  not  paid  and our option to redeem the 3,000,000 shares of our
common  stock  terminated.

     In  January  2005 the 15,000,000 common shares were exchanged for 1,000,000
Class  A  Preferred  Shares.  In  July 2005, the Board of Directors approved the
surrendering  and  cancellation  of  900,000  Class  A  Preferred Shares held by
Betty-Ann  Harland. In July,2005, the Board of Directors authorized the issuance
of  1,000,000  Class B Preferred Shares to Betty-Ann Harland in consideration of
$1,000  and  the  surrendered  900,000  Class  A  preferred  shares.

-    On October 1, 2004, we executed an agreement with Ameri-can Equipment Sales
     &  Leasing,  Inc., an affiliate of Ms. Harland, whereby Ameri-can agreed to
     advise,  assist  and  provide  support  for  our  restructuring  and
     re-organization.  The  duration  of these services is to be from October 1,
     2004  to  December  31,  2004.  We  agreed  to  pay  Ameri-can  the  sum of
     $150,000.00  in  cash  to  be paid in four payments commencing December 10,
     2004.

SALE OF FRESHWATER TECHNOLOGIES, INC.

On  November  24, 2005, International Development Corp., as the sole stockholder
of  Freshwater  Technologies, Inc., agreed to sell Freshwater Technologies, Inc.
to  Max  Weissengruber  and  D.  Brian  Robertson,  two  of  our  officers.  Mr.
Weissengruber  is  also  one  of  our  directors.  The  purchase  price shall be
$60,210.33  to  be  paid  at  the  Closing  as  follows:
(a)     The sum of $32,482.51 shall be paid in the form of forgiveness of debt
for compensation by International Development Corp. to Mr. Weissengruber, as
well as the termination of his employment agreement with International
Development Corp. to be evidenced by a Release.
(b)     The sum of $27,727.82 shall be paid in the form of forgiveness of debt
for compensation owing by International Development Corp. to Mr. Robertson, as
well as the termination of his employment agreement with International
Development Corp., to be evidenced by a Release.

The sale must be approved by the shareholders of International Development Corp.
before  it  becomes effective. A meeting of the shareholders will be held in the
near  future.

ITEM 13. EXHIBITS.

<TABLE>
<CAPTION>
EXHIBIT NO.  IDENTIFICATION OF EXHIBIT          THIS SECTION WILL NEED UPDATING!
-----------  -------------------------
<S>          <C>
       2.1*  Plan and Agreement of Merger Between Ozolutions, Inc. and
             International Development Corp. dated October 25, 2004 and filed
             with Definitive Proxy Statement dated November 19, 2004.
       2.4*  Certificate of Designation for the Series A Preferred Stock, filed
             with Nevada Secretary of State on November 9, 2004.
       2.5*  Certificate of Designation for the Series B Preferred Stock, filed
             with Nevada Secretary of State on April 7, 2005.
       2.6*  Certificate of Designation for the Series C Preferred Stock, filed
             with Nevada Secretary of State on October 6, 2005.
       3.1*  Certificate of Incorporation of Ozolutions, Inc. filed on January
             10, 1996 with the State of Delaware.
       3.2*  Articles of Incorporation of International Development Corp. filed
             on November 9, 2004 with the State of Nevada.
      3.19*  Bylaws of International Development Corp.
      3.21*  Articles of Merger filed with the Delaware Secretary of State on
             December 9, 2004.
      3.22*  Articles of Merger filed with the Nevada Secretary of State on
             December 9, 2004.
      10.1*  Private Placement Agreement between Ozolutions, Inc., now
             International Development Corp., and Betty-Ann Harland dated
             September 23, 2004.
      10.2*  Charter of Compensation Committee dated November 15, 2004.
      10.3*  Charter of Audit Committee dated November 15, 2004.


<PAGE>
      10.4*  Consulting Agreement dated October 1, 2004 with Betty-Ann Harland,
             filed with the Form 10-KSB for the period ended August 31, 2004.
      10.5*  Employment Agreement dated October 1, 2004 with Max Weissengruber
             filed with the Form 10-KSB for the period ended August 31, 2004.
      10.6*  Employment Agreement dated October 1, 2004 with D. Brian Robertson
             filed with the Form 10-KSB for the period ended August 31, 2004.
      10.7*  Consulting Agreement dated October 1, 2004 with Ameri-can Equipment
             Sales & Leasing, Inc, filed with the Form 10-KSB for the period
             ended August 31, 2004.
      10.8*  Consulting Agreement dated October 1, 2004 with Alexander & Wade,
             Inc. filed with the Form 10-KSB for the period ended August 31,
             2004.
      10.9*  Independent Client Service Agreement between the Company and Louis
             Shefsky, dated January 4, 2005.
     10.10*  Amended Independent Client Service Agreement between the Company
             and Francis Zubrowski, dated January 1, 2005.
     10.11*  Employment Agreement between FreshWater Technologies, Inc., the
             Company's wholly-owned subsidiary, and Robert Glassen, dated
             March 15, 2005.
     10.12*  Exclusive License Agreement with Wataire Industries, Inc. dated
             October  12,  2005
        14*  Code of Ethics.
     31.1**  Certification of Betty-Ann Harland, Chief Executive Officer of
             International Development Corp., pursuant to 18 U.S.C. Sec.1350,
             as adopted pursuant to Sec.302 of the Sarbanes-Oxley Act of 2002.
     31.2**  Certification of D. Brian Robertson, Chief Financial Officer of
             International Development Corp., pursuant to 18 U.S.C. Sec.1350,
             as adopted pursuant to Sec.302 of the Sarbanes-Oxley Act of 2002.
     32.1**  Certification of Betty-Ann Harland, Chief Executive Officer of
             International Development Corp., pursuant to 18 U.S.C. Sec.1350,
             as adopted pursuant to Sec.906 of the Sarbanes-Oxley Act of 2002.
     32.2**  Certification of D. Brian Robertson, Chief Financial Officer of
             International Development Corp., pursuant to 18 U.S.C. Sec.1350,
             as adopted pursuant to Sec.906 of the Sarbanes-Oxley Act of 2002.
</TABLE>
_______________

*     Previously  Filed
**    Filed  Herewith


ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

AUDIT  FEES

     The aggregate fees billed by Rotenberg & Co., LLP for professional services
rendered for the audit of our annual financial statements for fiscal years ended
August  31,  2005  and  2004  were  $25,000  and  $36,556,  respectively.

AUDIT-RELATED  FEES

     The  aggregate  audit-related  fees  billed  by  Rotenberg  &  Co., LLP for
professional  services rendered for the audit of our annual financial statements
for  fiscal  years  ended  August  31,  2005  and  2004  were  $1,653  and $-0-,
respectively.

TAX  FEES

     The  aggregate  tax  fees  billed  by Rotenberg & Co., LLP for professional
services  rendered  for  tax services for fiscal years ended August 31, 2005 and
2004  were  $2,000  and  $2,095,  respectively.

ALL OTHER FEES

     There  were  no  other fees billed by Rotenberg & Co., LLP for professional
services  rendered,  other  than  as  stated  under  the  captions  Audit  Fees,
Audit-Related  Fees,  and  Tax  Fees.

                                   SIGNATURES

     In  accordance  with  Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this Annual Report to be signed
on  its  behalf  by  the  undersigned,  thereunto  duly  authorized.

                                       INTERNATIONAL DEVELOPMENT CORP.

Date: November 29, 2005.

                                       By  /s/  Betty-Ann  Harland
                                         ---------------------------------------
                                           Betty-Ann  Harland,
                                           Chief  Executive Officer and Director


                                       By  /s/  D. Brian Robertson
                                         ---------------------------------------
                                           D. Brian Robertson,
                                           Chief  Financial Officer


                                       By  /s/  Max Weissengruber
                                         ---------------------------------------
                                           Max Weissengruber,
                                           Director



                                       By  /s/  Arthur Kelly
                                         ---------------------------------------
                                           Arthur Kelly,
                                           Director


                                       20
<PAGE>