UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB (Mark One)  x
        Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.  For the quarterly period ended June 30, 2006. or  o
        Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.  For the transition period from ______to______.  Commission file number 000-50354  ASAH CORP. (Exact name of registrant as specified in its charter) Delaware
        98-0403551(State or other jurisdiction of
        (I.R.S. Employer Identification No.)incorporation or organization)  10039 Bissonnet #250Houston, Texas
        77036-7852(Address of principal executive offices)
        (Zip Code)  (713) 779-9800 (Registrants telephone number, including area code)  (Former name, former address and former fiscal year, if changed since last report)  Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesxNoo  Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.  Yes
        o
        Nox  State the number of shares outstanding of each of the issuer's classes of common equity, as of August 21, 2006: 29,048,394 shares of
common stock.         ASAH CORP.

(Formerly known as Renfrew, Inc.)

FINANCIAL STATEMENTS



INDEX



PART I-- FINANCIAL INFORMATION




Item 1.
        Financial Statements


Item 2.
        Managements Discussion and Analysis of Financial Condition


Item 3.
        Control and Procedures

PART II-- OTHER INFORMATION




Item 1.
        Legal Proceedings


Item 2.
        Changes in Securities


Item 3.
        Defaults Upon Senior Securities


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


Item 5.
        Other Information


Item 6.
        Exhibits and Reports on Form 8-K

SIGNATURE



Item 1. Financial Information



BASIS OF PRESENTATION



The accompanying reviewed financial statements are presented in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-QSB and item 310 under subpart A of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal occurring accruals) considered necessary in order to make the financial statements not misleading, have been included. Operating results for the six months ended June 30, 2006 are not necessarily indicative of results that may be expected for the year ending December 31, 2006. The financial statements are presented on the accrual basis.













ASAH CORP. AND SUBSIDIARY

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2006

(UNAUDITED)




ASAH CORP. AND SUBSIDIARY



CONTENTS






PAGE
        1
        CONDENSED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2006 (UNAUDITED)PAGE
        2
        CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE & SIX MONTHS ENDED JUNE 30, 2006 (CONSOLIDATED) AND 2005 (COMBINED) (UNAUDITED)PAGE
        3
        CONDENSED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2006 (CONSOLIDATED) AND 2005 (COMBINED) (UNAUDITED)PAGES
        4  8
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)




ASAH CORP. AND SUBSIDIARY

CONDENSED CONSOLIDATEDBALANCE SHEET

AS OF JUNE 30, 2006

(UNAUDITED)










ASSETSCURRENT ASSETSCash
        $
        1,146,425Accounts receivable
        
        1,498,312Advances to employees
        
        13,513Prepaid expenses and other current assets
        
        11,132Total Current Assets
        
        2,669,382PROPERTY AND EQUIPMENT, NET
        
        95,710TOTAL ASSETS
        $
        2,765,092LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESAccounts payable and accrued expenses
        $
        142,087Due to related party
        
        5,000Accrued income tax
        
        845,314TOTAL CURRENT LIABILITIES
        
        992,401STOCKHOLDERS EQUITYPreferred stock, $0.001 par value, 10,000,000 shares authorized,
none issued and outstanding
        
        -Common stock, $0.001 par value, 100,000,000 shares authorized, 29,048,394 shares issued and outstanding
        
        29,190Additional paid-in capital
        
        489,705Deferred compensation
        
        (218,750)Retained earnings
        
        1,472,546Total Stockholders Equity
        
        1,772,691TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
        $
        2,765,092




See accompanying notes to consolidated financial statements.

1



ASAH CORP. AND SUBSIDIARY

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)










For the Three Months Ended June 30, 2006
(Consolidated)
        
        For the Three Months Ended June 30, 2005
(Combined)
        
        For the Six Months Ended June 30, 2006
(Consolidated)
        
        For the Six Months Ended June 30, 2005
(Combined)REVENUE, NET
        $
        2,678,909
        $
        1,102,367
        $
        4,914,836
        $
        1,877,372COST OF REVENUES
        
        1,698,992
        
        617,082
        
        3,225,839
        
        1,199,462GROSS PROFIT
        
        979,917
        
        485,285
        
        1,688,997
        
        677,910OPERATING EXPENSESGeneral and administrative
        
        142,410
        
        97,193
        
        261,630
        
        167,452Salaries
        
        269,446
        
        75,264
        
        399,284
        
        142,118Rent
        
        31,186
        
        21,150
        
        58,566
        
        40,980Total Operating Expenses
        
        443,042
        
        193,607
        
        719,480
        
        350,550NET INCOME FROM OPERATIONS
        
        536,875
        
        291,678
        
        969,517
        
        327,360OTHER INCOMEInterest income
        
        1,856
        
        31
        
        2,854
        
        80Total Other Income
        
        1,856
        
        31
        
        2,854
        
        80INCOME FROM OPERATIONS BEFORE INCOME TAXES
        
        538,731
        
        291,709
        
        972,371
        
        327,440Provision for Income Taxes
        
        (205,597)
        
        (104,844)
        
        (378,841)
        
        (118,945)NET INCOME
        $
        333,134
        $
        186,865
        $
        593,530
        $
        208,495Net income per share - basic and diluted
        $
        0.01
        $
        0.01
        $
        0.02
        $
        0.01Weighted average number of shares outstanding during the period  basic and diluted
        
        29,041,025
        
        20,000,000
        
        29,027,140
        
        20,000,000






See accompanying notes to consolidated financial statements.

2



ASAH CORP. AND SUBSIDIARY

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)










For the Six Months Ended June 30, 2006 (Consolidated)
        
        For the Six Months Ended June 30, 2005 (Combined)CASH FLOWS FROM OPERATING ACTIVITIES:Net income
        $
        593,530
        $
        208,495Adjustments to reconcile net income to net cash provided by (used in) operating activities:Depreciation and amortization
        
        14,642
        
        8,464Changes in operating assets and liabilities:(Increase) decrease in accounts receivable, net
        
        137,201
        
        (454,354)(Increase) decrease in advance to employees
        
        2,042
        
        889Decrease in prepaid expenses
        
        4,925
        
        21,570Increase (decrease) in accounts payable and accrued expenses
        
        (2,079)
        
        430Increase in accrued taxes
        
        373,771
        
        120,518Decrease in deferred compensation
        
        25,000
        
        -Net Cash Provided By (Used In) Operating Activities
        
        1,149,032
        
        (93,988)CASH FLOWS FROM INVESTING ACTIVITIES:Deposit
        
        -
        
        (1,783)Purchase of property and equipment
        
        (45,450)
        
        (8,405)Net Cash Used In Investing Activities
        
        (45,450)
        
        (10,188)CASH FLOWS FROM FINANCING ACTIVITIES:Bank overdraft
        
        -
        
        12,831Repayment to related party
        
        (90,000)
        
        -Loan from related party
        
        5,000
        
        45,000Stock issued for cash
        
        30,002
        
        -Net Cash Provided (Used) By Financing Activities
        
        (54,998)
        
        57,831NET INCREASE (DECREASE) IN CASH
        
        1,048,584
        
        (46,345)CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
        
        97,841
        
        46,345CASH AND CASH EQUIVALENTS AT END OF PERIOD
        
        1,146,425
        
        -SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid for income taxes
        $
        -
        $
        -Cash paid for interest expense
        $
        118
        $
        -

3



ASAH CORP. AND SUBSIDIARY

NOTES TO CONDENSED FINANCIAL STATEMENTS

AS OF JUNE 30, 2006 (CONSOLIDATED) AND 2005 (COMBINED)

(UNAUDITED)








NOTE 1
        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

(A) Organization



ASAH Corp. formerly known as RenFrew, Inc., was organized under the laws of the State of Delaware.



American Surgical Assistants, Inc. (ASA) was organized under the laws of the State of Texas on April 4, 2001 as a Texas limited partnership.  On June 27, 2002, the Company converted to a Texas corporation. The Company provides surgical assistants to hospitals in the Houston, Texas area.



On October 10, 2005, pursuant to a Stock Purchase Agreement and Share Exchange by and among ASAH Corp., a Delaware corporation (ASAH), ASA and the shareholders of ASA, ASAH purchased all of the outstanding shares of ASA for a total of 12,000,000 shares of ASAHs common stock to the ASA shareholders.  Pursuant to the agreement, ASA became a wholly-owned subsidiary of ASAH.



The Company has accounted for the transaction as a combination of entities under common control as the companies had the same ownership and management and accordingly, recorded the merger at historical cost.  Accordingly, all shares and per share amounts have been retroactively restated.



ATS Billing Services, Inc. was organized under the laws of the State of Texas on March 30, 2006 and as of April 1, 2006 became a wholly-owned subsidiary of ASAH Corp.  The Company was formed to engage in HIPPAA-compliant billing services to and collection for healthcare industry professionals, mainly, but not exclusively, surgical assistants.  ATS services include primary claim billing to insurance companies and to patients, with follow-up for collection purposes.



(B) Basis of Presentation



The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information.  Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.



It is management's opinion, however that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statements presentation.  The results for the interim period are not necessarily indicative of the results to be expected for the year.





4



ASAH CORP. AND SUBSIDIARY

NOTES TO CONDENSED FINANCIAL STATEMENTS

AS OF JUNE 30, 2006 (CONSOLIDATED) AND 2005 (COMBINED)

(UNAUDITED)







(C) Principles of Consolidation and Combination



The 2006 consolidated financial statements include the accounts of ASAH Corp. and its wholly owned subsidiaries, American Surgical Assistants, Inc. and ATS Billing Services, Inc.  The 2005 combined financial statements include the accounts of American Surgical Assistants, Inc. and ASAH Corp.



All significant intercompany accounts and transactions have been eliminated in consolidation and combination.  ASAH Corp. and its wholly owned subsidiaries American Surgical Assistants, Inc. and ATS Billing Services, Inc. are hereafter referred to as the Company.



(D) Use of Estimates



In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period.  Actual results could differ from those estimates.



(E) Cash and Cash Equivalents



The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents.  The Company did not have any cash equivalents as of the balance sheet dates presented in the financial statements.



(F) Income Taxes



The Company accounts for income taxes under the Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes (Statement 109).  Under Statement 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  Under Statement 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.



(G) Income Per Share



Basic and diluted net income per common share is computed based upon the weighted average common shares outstanding as defined by Financial Accounting Standards No. 128, Earnings Per Share.  The Company does not have any dilutive securities outstanding as of June 30, 2006 and 2005.





5



ASAH CORP. AND SUBSIDIARY

NOTES TO CONDENSED FINANCIAL STATEMENTS

AS OF JUNE 30, 2006 (CONSOLIDATED) AND 2005 (COMBINED)

(UNAUDITED)







(H) Fair Value of Financial Instruments



The carrying amounts of the Companys financial instruments including accounts receivable, accounts payable and accrued expenses approximate fair value due to the relatively short period to maturity for these instruments.



(I) Revenue Recognition and Provision for Doubtful Accounts



We provide for an allowance against accounts receivable for an amount that could become uncollectible whereby such receivables are reduced to their estimated net realizable value.  We estimate this allowance based on the aging of our accounts receivable, our historical collection experience and other relevant factors.  There are various factors that can impact the collection trends, such as changes in the number of uninsured patients, the increased burden of co-payment to be made by patients with insurance and business practices related to collection efforts.  These factors continuously change and can have an impact on collection trends and our estimation process.



We recognize net operating revenues in the period in which services are
performed. Net operating revenues consist primarily of net patient service
revenues that are recorded based on established billing rates (gross charges),
less estimated discounts for insurance reimbursements and 100% allowances
principally for patients covered by Medicare and Medicaid. We write off the
gross accounts receivable against the related reserve upon collection of the
accounts receivable or upon the determination by management that the receivable
will be uncollectable.



Established billing rates  are not the same as actual pricing, and established billing rates  generally do not reflect what the
Company is ultimately paid and therefore are not displayed in our Consolidated Statements of Operations. The Company is typically
paid amounts based on individual insurance company rates.



Revenues billed under contracts with hospitals are billed monthly over the contract period as services are provided to patients
regardless of the patients ability to pay.



(J) Property and Equipment



Property and equipment are stated at cost, less accumulated depreciation.  Expenditures for maintenance and repairs are charged to expense as incurred.  Depreciation is provided using the straight-line method over the estimated useful life of three to five years.



(K) Business Segments



The Company operates in one segment and therefore segment information is not presented.



(L) Concentration of Credit Risk



The Company at times has cash in banks in excess of FDIC insurance limits.  At June 30, 2006, the Company had approximately $1,046,425 in excess of FDIC insurance limits.





6



ASAH CORP. AND SUBSIDIARY

NOTES TO CONDENSED FINANCIAL STATEMENTS

AS OF JUNE 30, 2006 (CONSOLIDATED) AND 2005 (COMBINED)

(UNAUDITED)







(M) Concentration of Geographic Area



100% of sales are generated in the Houston area in the State of Texas.



(N) Recent Accounting Pronouncements



In May 2005, the FASB issued SFAS 154, Accounting Changes and Error Corrections.  This Statement replaces APB Opinion No. 20, Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes the requirements for the accounting for and reporting of a change in accounting principle.  This Statement applies to all voluntary changes in accounting principle.  It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions.  SFAS 154 also requires that a change in depreciation, amortization or depletion method for long-lived, non-financial assets be accounted for as a change in accounting estimate affected by a change in accounting principle.  This Statement is effective in fiscal years beginning after December 15, 2005.  The Company
has not yet determined the effect of implementing this standard.



SFAS 155, Accounting for Certain Hybrid Financial Instruments and SFAS 156, Accounting for Servicing of Financial Assets were recently issued.  SFAS 155 and 156 have no current applicability to the Company and have no effect on the financial statements.




NOTE 2
        ACCOUNTS RECEIVABLE

Accounts receivable at June 30, 2006 consisted of the following:




Trade receivables
        $
        1,498,312Less: allowance for doubtful accounts
        
        -Accounts receivable, net
        $
        1,498,312

During the six months ended June 30, 2006 and 2005, the Company recorded an allowance for doubtful accounts of $0.  Management feels
that all accounts are fully collectible as of June 30, 2006 and 2005.




NOTE 3
        LOAN PAYABLE  RELATED PARTY

During 2006, the Company repaid a loan of $90,000 from a related corporation.  The loan was unsecured, interest free and due on demand.



During 2006, the Company received a working capital loan of $5,000 from a company related to its President.  The loan is unsecured, interest free and due on demand.



7



ASAH CORP. AND SUBSIDIARY

NOTES TO CONDENSED FINANCIAL STATEMENTS

AS OF JUNE 30, 2006 (CONSOLIDATED) AND 2005 (COMBINED)

(UNAUDITED)








NOTE 4
        COMMITMENTS AND CONTINGENCIES

(A) Employment Agreement



During July 2005, the Company renewed a service agreement with its President for a period of five years.  The agreement renews annually unless cancelled by either party with sixty days written notice.  The agreement calls for the President to receive annual compensation of $260,000 per year, an automobile allowance, health insurance, disability insurance of $10,000 per month for a period of five years following any disability that lasts more than ninety days, an expense account of $10,000 per month and a severance equal to $3,000,000, and an option to purchase 5% of any shares issued by the Company during the term of the contract at a discount price equal to 25% of the closing price on the date issued by the Company.



During July 2005, the Company renewed a service agreement with its Vice President for a period of five years.  The agreement renews annually unless cancelled by either party with sixty days written notice.  The agreement calls for the Vice President to receive annual compensation of $260,000 per year, an automobile allowance, health insurance, disability insurance of $10,000 per month for a period of five years following any disability that lasts more than ninety days, an expense account of $10,000 per month and a contract termination payment equal to $3,000,000 and an option to purchase 5% of any shares issued by the Company during the term of the contract at a discount price equal to 25% of the closing price on the date issued by the Company.




NOTE 5
        RELATED PARTY TRANSACTIONS

During 2006 and 2005, the Company paid rent expense to a corporation owned by an officer under a sublease agreement of $24,000 and $21,000, respectively.




NOTE 6
        EQUITY

In April 2006, the Company issued 35,294 shares of common stock to individuals
at $0.85 per share for total cash of $30,002.





8








Item 2. Managements Discussion and Analysis or Plan of Operation



GENERAL



The information contained in Item 2 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.



ASAH Corp. (the Company) formerly known as Renfrew, Inc., was incorporated in the State of Delaware on July 22, 2003. On October 10, 2005 (the Effective Date), pursuant to a Stock Purchase Agreement and Share Exchange (the Agreement) by and among ASAH Corp., a Delaware corporation (ASAH); American Surgical Assistants, Inc. (ASA) and the shareholders of American Surgical Assistants, Inc. Shareholders) (collectively ASA and the ASA shareholders shall be known as the ASA Group), ASAH purchased all of the outstanding shares of ASA for a total of 12,000,000 shares of ASAHs common stock to the ASA shareholders. Pursuant to the agreement, ASA became a wholly owned subsidiary of ASAH.



ATS Billing Services, Inc. ("ATS") was organized under the laws of the State of Texas on March 30, 2006 and as of April 1, 2006
became a wholly-owned subsidiary of ASAH Corp. The Company was formed to engage in HIPPAA-compliant billing services to and
collection for healthcare industry professionals, mainly, but not exclusively, surgical assistants. ATS' services include primary
claim billing to insurance companies and to patients, with follow-up for collection purposes.

The Company currently generates all of its revenue from its acquisition of ASA and ATS. The following sets forth the business plan of ASA and ATS:



American Surgical Assistants, Inc. is a Texas corporation that is the largest provider of surgical assistant services to patients, surgeons and healthcare institutions in the Houston area. The utilization of the services of surgical assistants is a cost savings for patients, insurance carriers, hospitals and surgeons, offering an alternative to the cost of one aspect of healthcare, without compromising the quality of service to the patient. We are currently implementing our business plan to become a nationwide leader in the surgical assistant industry. ASA is a Healthcare Staffing Firm certified by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO).



Surgical assistants are highly skilled, fully trained, and credentialed through a highly scrutinized and extensive process similar to that utilized to evaluate physicians for credentialing purposes. These assistants are an integral part of the surgical team and provide their services to patients during surgery including, but not limited to: identification of anatomical landmarks, securing blood vessels, recognizing pathological situations and providing and securing adequate, safe and proper exposure of the operative field, closure of the surgical wound, and the application of casts and dressings. They also perform other duties, within the scope of their professional license, delegated by the operating surgeon. ASA surgical assistants provide services in the general surgery, ob-gyn, orthopedic, plastic surgery, urology, cardiac and neurologyand other areas.



ASA assistants are fully trained international medical graduate physicians, registered nurses and certified surgical assistants. Most surgical assistants working with AMA are international medical graduate physicians (IMGs), who are citizens and residentsof the US and have completed their medical education outside the US & Canada. They do not practice in the US as medical doctors, but practice within the scope of their license as a Texas surgical assistant under the direct supervision of licensed physicians. Registered nurses can also be licensed surgical assistants. Certified surgical assistants are certified by a national certifying agency.



Each Licensed/Certified Surgical Assistant is required to acquire 50 recertification hours in a two-year period and must submit a professional activity report every two years. Additionally, they must have assisted on a minimum of 400 procedures or 500 hours every two years in the role of a first assistant (ABSA Standards for recertification).





Our main source of revenue is third party insurers. In addition, a smaller percentage of the revenue is generated from the patients share of the fee that is not covered by the insurers. Another source of revenue is hospital service contracts, in the form of a monthly stipend for On-Call coverage. We are presently providing services to Medicare, Medicaid, Champus and many other providers free of charge, the reason being that these insurers do not reimburse surgical assistants at the present time. Currently, we provide surgical assistant services to the medical community in the Greater Houston area. Our staff and associates are currently credentialed and/or providing services to surgeons and patients at numerous hospitals and surgery centers.



ATS generates revenue from providing HIPPAA-compliant billing services and  collection for healthcare industry professionals, mainly, but not exclusively, surgical assistants. ATS services include primary claim billing to insurance companies and to patients, with follow-up for collection purposes. ATS enters into service agreements with its clients whereby it receives a fee of the total monies paid to that client for claims submitted by ATS on its clients behalf, Currently ATS provides its services for ASA as well as three other clients,



Plan of Operations



Our goal is to expand our leadership position within the surgical assisting healthcare staffing sector in the United States. The key components of our business strategy include:





        
        Strengthening and Expanding Our Relationships with Hospitals and Healthcare Facilities.
We continue to strengthen and expand our existing relationships with our hospital and healthcare facility clients and to develop new relationships. Hospitals and healthcare facilities are seeking a strong business partner for outsourcing that can fulfill the quantity, breadth and quality of their surgical assisting staffing needs and help them develop strategies for the most cost-effective surgical assisting staffing methods. Understanding the personal and distinctive technique of each surgeon leads to the development of a high standard of interaction and remarkable familiarity with the surgeons preferences and individual technique, thus bringing superior quality to the surgical teamwork and contributing
favorably to the quality of the service and to the safe outcome of the surgery to the patient. In addition, over the last few years, hospitals and healthcare facilities have shown an interest in working with a limited number of vendors to increase efficiency. We believe that our proven ability to fill our clients staffing needs provide us with the opportunity to serve our client facilities that implement this strategy. Because we possess a large network of available surgical assistants, we are well positioned to offer our hospital and healthcare facility clients a wide spectrum of effective solutions to meet their surgical assisting staffing needs.
        
        Expanding Our Network of Qualified Surgical Assistant Professionals.Through our recruiting efforts both in the United States and internationally, we continue to expand our network of qualified surgical assistant professionals. We continue to build our supply of professionals through referrals from healthcare professionals who are currently working or have been placed by us in the past, as well as through advertising and internet sources. Most surgical assistants working with American Surgical Assistants, Inc. are international medical graduate physicians (IMGs/FMGs). These IMGs are not licensed physicians in the United States and do not practice in the US as medical doctors.
        
        Expanding Service Offerings Through New Staffing Solutions.In order to further enhance the growth in our business and improve our competitive position in the surgical assisting healthcare staffing sector, we continue to introduce new service offerings. As our hospital and healthcare facility clients needs change, we constantly explore what additional specialized surgical assisting services we can provide to better serve them. Our recruiting efforts include attracting highly specialized surgical assistants in areas of all surgical disciplines and sub-specialties. Properly qualified and trained to the highest standards, our staff is capable of providing valuable assistance on a wide variety of surgical procedures.




        
        Expanding Our Geographic Presence.We provide surgical assistant services to hospitals, surgeons and their patients in the greater Houston area. In order to further enhance the growth in our business and improve our competitive position in the surgical assisting healthcare staffing sector, we are currently seeking new geographic locations throughout Texas and the U.S. Our success in the Greater Houston Area has created opportunities to expand our services throughout Texas and the U.S.A. Demand is created due to the to the utilization of the services of surgical assistants, the cost effectiveness to the patient, the insurance carrier, the hospital and the surgeon, offering a reasonable alternative to the increasing cost of one aspect of healthcare without compromising the quality of service to the patient.Legislative Changes are Expected To
Increase Demand. Texas has currently implemented Licensed Surgical Assistants, while Illinois has implemented registration of Certified Surgical Assistants and Kentucky has passed legislation permitting reimbursement for Surgical Assistants. Other states have some form of legislation either pending or being considered regarding Surgical Assistants. Such legislative changes will support the growth of our business.



        
        Building the Strongest Management Team to Optimize Our Business Model. Our operations management team is comprised of highly skilled and experienced surgical assistants. We have continued to focus on training and professional development for all levels of management and have hired several additional experienced management members over the last few years. Our management team has been further broadened and strengthened by the addition of two extremely well experienced consultants.



        
        Capitalizing on Strategic Acquisition Opportunities.In order to enhance our competitive position, we will continue to selectively explore strategic acquisitions. We believe we have opportunities for strategic acquisitions which will increase our staffing solutions to our hospital and healthcare facility clients and acquisitions that will give us a foothold into new geographic markets.

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2005



Revenues



Revenue increased from $4,914,836 for the six months ended June 30, 2006 from
$1,877,372 for the six months ended June 30, 2005 an increase of $3,037,464. The
increase in revenues for the period was attributable to strengthening and
expanding our existing relationships with our hospital and healthcare facility
clients as well as attracting new clients, resulting in an increase in new
business and increased service fees for our surgical assistant services.
Additionally, during the first quarter of 2005 we began the year with
approximately 12 hospital and healthcare facilities, and by the end of the first
quarter of 2006, we had surgical assistant professionals on assignment at over
29 different hospitals and healthcare facilities throughout the Greater Houston,
Texas area.



Costs of Revenue.



Costs of revenue increased to $3,225,839 for the six months ended June 30, 2006 from $1,199,462 for the six months ended June 30, 2005. The increase was attributable to the increase of the number of surgical assistants we employed or contracted for services.



Gross Profit. Gross profits increased to $1,688,997 for the six months ended June 30, 2006 from $677,910 for the six months ended
June 30, 2005, representing gross margins of 36.6% and 44.1%, respectively. The decrease in gross margins was primarily attributable
to an increased cost of recruiting and hiring new surgical assisting employees and increase cost in retaining our currently employed
surgical assistants.



Selling, General and Administrative expenses for the six months ended June 30, 2006 increased to $261,630 from $167,452 for the six
months ended June 30, 2005, representing an increase of $94,178. The increase in costs and expenses for the six month periods were
primarily attributable to the increased salaries, increases in employee expenses, increased insurance premiums and increased cost
related to servicing new clients during the first and second quarter of 2006.





Income Tax Expense. Provision for Income Tax expense increased to $378,841 for the six months ended June 30, 2006 from $118,945 for the six months ended June 30, 2005. Future cash flow of the company will be affected by the reversal of temporary income tax deferral.

RESULTS OF OPERATIONS FOR THE THREE
MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2005

Revenues

Revenue increased from $2,678,909 for
the three months ended June 30, 2006 from $1,102,367 for the three months ended June 30,
2005 an increase of $1,576,542. The increase in revenues for the period was attributable
to strengthening and expanding our existing relationships with our hospital and healthcare
facility clients as well as attracting new clients, resulting in an increase in new
business and increased service fees for our surgical assistant services. Additionally,
during the first quarter of 2005 we began the year with approximately 12 hospital and
healthcare facilities, and by the end of the first quarter of 2006, we had surgical
assistant professionals on assignment at over 29 different hospitals and healthcare
facilities throughout the Greater Houston, Texas area.

Costs of Revenue.

Costs of revenue increased to
$1,698,992 for the three months ended June 30, 2006 from $617,082 for the three months
ended June 30, 2005. The increase was attributable to the increase of the number of
surgical assistants we employed or contracted for services.

Gross Profit. Gross profits increased to $979,917 for the three months ended June 30, 2006 from $485,285 for the three months ended
June 30, 2005, representing gross profits of 36.6% and 44.1%, respectively. The decrease in gross margins was primarily attributable
to an increased cost of recruiting and hiring new surgical assisting employees, and increased cost in retaining our currently
employed surgical assistants.

Selling, General and Administrative expenses for the three months ended June 30, 2006 increased to $142,410 from $97,193 for the
three months ended June 30, 2005, representing an increase of $45,217. The increase in costs and expenses for the three month periods
were primarily attributable to the increased salaries, increases in employee expenses, increased insurance premiums and increased
cost related to servicing new clients during the first and second quarter of 2006..



Income Tax Expense. Provision for
Income Tax expense increased to $205,597 for the three months ended June 30, 2006 from
$104,844 for the three months ended June 30, 2005. Future cash flow of the company will be
affected by the reversal of temporary income tax deferral.

LIQUIDITY AND CAPITAL RESOURCES



Operating Activities.



As of June 30, 2006, we had $1,146,425 in cash. Our general and administrative
expenses are expected to average $100,000 per month for the next 12 months based
upon our projected operating budget. Historically, our principal working capital
need has been for accounts receivable. Our principal source of cash to fund our
working capital needs are generated from operating needs and borrowings. As the
company increases its revenues, our need for working capital for accounts
receivable will increase. We will utilize cash from operations or from
borrowings. These projected expenses do not include any costs that may be
incurred for acquisitions of complimentary businesses. We expect to be able to
finance future acquisitions whether with cash provided from operations,
borrowings, debt or equity offerings, or some combination of the foregoing.



Our operating activities provided cash of $1,149,032 for the six months ended June 30, 2006. As of June 30, 2006, we had total current assets of $2,669,382 including cash of $1,146,425. As of June 30, 2006 our total current liabilities amounted to $992,401.



During the first six month of  2006, the company repaid the balance of a loan in the amount of $90,000 to a related corporation.



We recognize revenue in accordance with SAB 101 and 104. Revenue from services is recorded at the estimated insurance reimbursement at the time of service. Revenue from contract services is recognized over the contract period as services are performed.



Our significant accounting policies are summarized in Note 1 of our financial statements.

We have adopted the following accounting standards. While all these significant accounting policies impact our financial condition and results of operations, our views of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our consolidated financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations, financial position or liquidity for the periods presented in this report:

In January 2003, the Financial Accounting Standards Board (FASB) issued Interpretation (FIN) No. 46, Consolidation of Variable Interest Entities (VIE), (revised December 2003 by FIN No. 46R), which addresses how a business enterprise should evaluate whether it has a controlling financial interest in an entity through means other than voting rights and accordingly should consolidate the entity. For variable interests in VIEs created before January 1, 2004, the Interpretation will be applied beginning on January 1, 2005. For any VIEs that must be consolidated under FIN No. 46R that were created before January 1, 2004, the assets, liabilities and non-controlling interests of the VIE initially would be measured at their carrying amounts with any difference between the net amount added to the balance sheet and any previously recognized
interest being recognized as the cumulative effect of an accounting change. If determining the carrying amounts is not practicable, fair value at the date FIN No. 46R first applies may be used to measure the assets, liabilities and non-controlling interest of the VIE. The adoption of FIN No. 46R did not have a material impact on the Companys financial position, results of operations or cash flows as the Company does not have any VIEs.

In December 2004, the FASB issued SFAS No. 123R Share-Based Payment (SFAS 123R), a revision to SFAS No. 123 Accounting for Stock-Based Compensation (SFAS 123), and superseding APB Opinion No. 25 Accounting for Stock Issued to Employees and its related implementation guidance. SFAS 123R establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services, including obtaining employee services in share-based payment transactions. SFAS 123R applies to all awards granted after the required effective date and to awards modified, repurchased, or cancelled after that date. Adoption of the provisions of SFAS 123R is effective as of the beginning of the first interim or annual reporting



period that begins after June 15, 2005. The Company is currently in the process of evaluating the potential impact that the adoption of SFAS 123R will have on its consolidated financial position and results of operations.

In November 2004, the FASB issued SFAS No. 151, Inventory Costs  an amendment of ARB No. 43, Chapter 4(SFAS 151) This statement clarifies the criteria of abnormal amounts of freight, handling costs, and spoilage that are required to be expensed as current period charges rather than deferred in inventory. In addition, this statement requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities. SFAS 151 is effective for the Company July 1, 2005. The Company is currently in the process of determining the impact of this statement on the Companys financial statements.

In December 2004, the FASB issued SFAS no. 153,Exchanges of Nonmonetary Assets an amendment of APB Opinion No. 29.This Statement addresses the measurement of exchanges of nonmonetary assets. It eliminates the exception from fair value measurement for nonmonetary exchanges of similar productive assets in paragraph 21(b) of APB Opinion No. 29,Accounting for Nonmonetary Transactions,and replaces it with an exception for exchanges that do not have commercial substance. This Statement specifies that 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. The Company is currently evaluating the impact of this statement on the 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.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 (SOP) 04-2,Accounting for Real Estate Time-Sharing Transactions.This Statement also amends FASB Statement No. 67,Accounting for Costs and Initial Rental Operations of Real Estate Projects,to state that the guidance for (a) incidental operations and (b) costs incurred to sell real estate projects does not apply to real estate time-sharing
transactions. This Statement is effective for financial statements for fiscal years beginning after June 15, 2005. The guidelines of this statement are not applicable to the Company.



SFAS No. 154 (SFAS 154),Accounting Changes and Error Corrections,was issued in May 2005 and replaces APB Opinion No. 20 and SFAS No. 3 (SFAS 3). SFAS No. 154 requires retrospective application for voluntary changes in accounting principle in most instances and is required to be applied to all accounting changes made in fiscal years beginning after December 15, 2005. The Companys expected April 1, 2006 adoption of SFAS No. 154 is not expected to have a material impact on the Companys consolidated financial condition or results of operations.



SFAS 155, "Accounting for Certain Hybrid Financial Instruments" and SFAS 156,
"Accounting for Servicing of Financial Assets" were recently issued. SFAS 155
and 156 have no current applicability to the Company and have no effect on the
financial statements.



Until such time as our shares are traded on a national  exchange,  our  shareholders  can  communicate  with us by contacting our Chief
Executive Officer at the information set forth herein.



Item 3. Controls and Procedures



Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), as of June 30, 2006. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports 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 and that our disclosure and controls 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 accumulated and communicated to our management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.



There were no changes (including corrective actions with regard to significant deficiencies or material weaknesses) in our internal controls over financial reporting that occurred during the second quarter of fiscal 2006 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.







PART II - OTHER INFORMATION



Item 1. Legal Proceedings.



The Company is currently not a party to any pending legal proceedings and no such action by, or to the best of its knowledge, against the Company has been threatened.



Item 2. Changes in Securities.



In April 2006, we completed an offering in which we issued a total of 35,294
shares of our common stock to five investors at a price per share of $.85 for an
aggregate offering price of $30,002. Such shares were issued in reliance on an
exemption from registration under Section 4(2) of the Securities Act of
1933.



Item 3. Defaults Upon Senior Securities.



None



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



No matter was submitted during the quarter ending June 30, 2006, covered by this report to a vote of the Companys shareholders, through the solicitation of proxies or otherwise.



Item 5. Other Information.



None



Item 6. Exhibits and Reports of Form 8-K.




(a)
        Exhibits


31.1 Certification pursuant to Section 302 of Sarbanes Oxley Act of 2002


32.1 Certification pursuant to Section 906 of Sarbanes Oxley Act of 2002


(b)
        Reports of Form 8-K


None





SIGNATURES



In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.




ASAH CORP.Registrant


Date: August 21, 2006
        By:/s/ Zak W ElgamalZak W. ElgamalPresident, Chief Executive Officer,Chairman of Board of Directors