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

                                   FORM 10-QSB

[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

        For the quarterly period ended May 31, 2005.

[_]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

        For the transition period from _______ to ________

                        COMMISSION FILE NUMBER: 001-31343

                         INTERNATIONAL DEVELOPMENT CORP.
                 (Name of small business issuer in its charter)

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

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

                                 (416) 490-0254
                           (Issuer's telephone number)

     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the past 12 months (or for 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
[_]

     State  the  number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: As of July 12, 2005 the issuer
had  483,404,226  shares  of  its  common  stock  issued  and  outstanding.

     Transitional  Small  Business Disclosure Format (check one): Yes [_] No [X]


<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

<S>                                                                       <C>

PART I - FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . .  2
Item 1.  Financial Statements (Unaudited). . . . . . . . . . . . . . . .  2
Item 2.  Management's Discussion and Analysis or Plan of Operation . . .  2
    Item 3.  Controls and Procedures . . . . . . . . . . . . . . . . . . .5
PART II - OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . .  5
    Item  1.  Legal Proceedings. . . . . . . . . . . . . . . . . . . . . .5
    Item  2.  Unregistered Sales of Equity Securities and Use of Proceeds.5
    Item  3.  Defaults Upon Senior Securities. . . . . . . . . . . . . . .5
    Item  4.  Submission of Matters to a Vote of Security Holders. . . . .5
    Item  5.  Other Information. . . . . . . . . . . . . . . . . . . . . .5
    Item  6.  Exhibits and Reports on Form 8-K . . . . . . . . . . . . . .6
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002. .
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002. .
CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002. .
CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002. .
</TABLE>


                                        1
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS.

     The  financial  statements  and  related notes are included as part of this
Quarterly  Report  as  indexed  in  the  appendix  on  page  F-1  through  F-12.

ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATIONS.

FORWARD-LOOKING INFORMATION

     Much  of  the  discussion in this Item is "forward looking" as that term is
used  in  Section  27A  of  the Securities Act and Section 21E of the Securities
Exchange  Act  of 1934. Actual operations and results may materially differ from
present  plans  and  projections  due  to  changes  in  economic conditions, new
business  opportunities,  changed  business  conditions, and other developments.
Other factors that could cause results to differ materially are described in our
filings  with  the  Securities  and  Exchange  Commission.

     The  following  are  factors  that  could cause actual results or events to
differ  materially  from  those anticipated, and include, but are not limited to
general  economic,  financial and business conditions, changes in and compliance
with  governmental  laws  and  regulations,  including various state and federal
environmental  regulations,  our  ability  to  obtain  additional financing from
outside investors and/or bank and mezzanine lenders; and our ability to generate
sufficient  revenues  to  cover  operating  losses  and  position  us to achieve
positive  cash  flow.

     Readers  are  cautioned  not to place undue reliance on the forward-looking
statements  contained herein, which speak only as of the date hereof. We believe
the  information  contained  in  this  Form 10-QSB to be accurate as of the date
hereof.  Changes  may occur after that date. We will not update that information
except  as  required  by  law  in  the  normal  course  of our public disclosure
practices.

     Additionally,  the  following  discussion regarding our financial condition
and  results  of  operations  should  be  read in conjunction with the financial
statements  and related notes contained in Item 1 of Part I of this Form 10-QSB,
as  well as the financial statements in Item 7 of Part II of our Form 10-KSB for
the  fiscal  year  ended  August  31,  2004.

RESULTS  OF  OPERATIONS

     For  the  nine  months  ended  May 31, 2005 and 2004, we had no sales. As a
result of the lack of sales during the prior year period, during the second half
of the year ended August 31, 2004, we focused our time and efforts in developing
new  marketing  strategies  and  discussing  potential plans to reorganize in an
effort  to  increase  sales  of  its water purification and activation products.
Subsequent  to  the  year  ended  August  31,  2004,  we  formalized  a  plan to
reorganize,  in  which  the  water treatment operations would be spun off into a
wholly-owned  subsidiary  of  the  reorganized  corporation, as the focus of the
reorganized  corporation  would  be  on  identifying  and  closing  focused
acquisitions,  building  through  steady planned growth. As a result of the time
spent  on  the  development  of  new  marketing  strategies  and  discussions on
potentially  reorganizing,  our  focus  on  generating  new  sales  was limited,
therefore  directly  resulting  in no sales during the nine months ended May 31,
2005.  Commencing  with  our  last  quarter of this fiscal year, we will also be
focusing  on  the  generation  of new water purification equipment sales and the
completion  of  the  testing  of  our  water  activation  products in the field.

     As  a  result  of  the  recent reorganization, we believe that we are in an
improved  position  to  take  advantage  of  operational efficiencies and market
growth  opportunities.

     During  the year ended August 31, 2004, we had incurred very minimal direct
costs  relating  to  the development of new marketing strategies and discussions
regarding  the potential reorganization of the corporation. All costs associated
with  the formal reorganization plan were incurred and recorded in the financial
statements  subsequent  to  the  year  ended  August  31,  2004.

     The  net  loss for the nine months ended May 31, 2005 was $992,415 compared
to  a  net  loss  of  $276,308  for  the  nine  months  ended  May  31,  2004.


                                        2
<PAGE>
     Expenses for the nine months ended May 31, 2005 increased $716,000 compared
to  the  nine  months  ended  May  31, 2004. Increases in consulting expenses of
$218,000, general and administrative expenses of $101,000, marketing expenses of
$110,000,  and restructuring charges 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
explained below. Interest expense increased $8,000 as a result of an increase in
the  outstanding  balances from the Directors' and Stockholders' advances during
the first nine months of the current fiscal year. The increases were offset by a
decrease  in  the  provision for bad debts of $66,000, as less of an increase in
the  allowance  for  doubtful  accounts was needed in the current year period as
compared  to  the  prior  year  period.

     In  2003,  we  paid a refundable commitment fee of $50,000 to U.S. Capital,
Inc., a California based investment banking firm, to secure a proposed financing
of $5,000,000. Although U.S. Capital, Inc. continues to attempt to complete this
proposed  financing,  we  have  reviewed the financial position of U.S. Capital,
Inc.  and  have  written  off  the balance of the commitment fee, $40,000, as it
appears  U.S.  Capital, Inc. would be unable to repay the commitment fee if they
did  not  complete  our  financing.

LIQUIDITY  AND  CAPITAL  RESOURCES

     Our  operations  used approximately $795,000 in cash during the nine months
ended May 31, 2005. Cash required during the nine months ended May 31, 2005 came
from  proceeds  from  the  exercise  of stock options of $612,000, directors and
stockholder  advances  of $163,000, and the sale of restricted common shares for
$25,000,  of  which  $5,000  was paid to repurchase 800,000 shares of our common
stock  for  cancellation.

     We  plan  to keep future purchases of our water purification and activation
equipment  to  a  minimum  once we have sold our present inventory. Based on our
current  estimates, we anticipate to liquidate our entire current inventory over
the  next twelve to fifteen months. We have arranged for a warehouse facility to
store  the  current  inventory  at  $150  per  month.

     We  estimate  our  business  operational expenses during the next 12 months
will  be  approximately  $1.2  million.

     As  discussed  by  our  accountants  in  the unaudited financial statements
included  in  Item  1  of  Part  I  of this Quarterly Report on Form 10-QSB, our
revenue  is  currently  insufficient  to  cover  our  costs  and  expenses.

     Directors,  stockholders  and  proceeds  from the exercise of stock options
granted under our Employee Stock Incentive Plan 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, stockholders,
the exercise of granted stock options, and the selling of our shares 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  accountants'  review report on our May 31, 2005 financial
statements  states that our lack of sources of revenues raise substantial doubts
about  our  ability  to  continue  as  a  going  concern.

APPLICATION  OF  CRITICAL  ACCOUNTING  POLICIES

     Our  financial statements and accompanying notes are prepared in accordance
with  accounting  principles generally accepted in the United States of America.
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,  impairment  of  marketing  rights  and  accounting for stock-based
compensation.


                                        3
<PAGE>
     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." We evaluate
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.

     We  account  for  stock-based  compensation in accordance with Statement of
Financial  Accounting  Standards  No.  123R,  "Share-Based  Payment"  and  Staff
Accounting  Bulletin  No.  107,  which  requires  us  to  measure  and recognize
compensation expense for all stock-based payments for services at the grant-date
fair  value,  with  the  cost  recognized  over  the  vesting  period.

RECENT DEVELOPMENTS

     Effective  April  7,  2005, we designated 1,000,000 shares of our Preferred
Stock  as  the  Series  B  Preferred Stock. The shares of our Series B Preferred
Stock  are  not  convertible  into  shares  of  our common stock. On all matters
submitted  to  a  vote of our stockholders the holders of the Series B Preferred
Stock  are entitled to the number of votes equal to the number of shares held by
such  stockholder  multiplied  by  500.

     Effective April 12, 2005, we amended the Certificate of Designation for our
Series B Preferred Stock to increase the number of shares designated as Series B
Preferred  Stock  from  1,000,000  to  5,000,000.

     At  a  Board of Directors meeting of the Company held on April 13, 2005 the
following  resolutions  were  adopted:

     1)   Authorized 5,000,000 shares of Class B Preferred Stock available for
          issuance.
     2)   Authorized the appointment of Douglas Robertson and Arthur Kelly to
          the Audit Committee, with Arthur Kelly as the Chair of the Audit
          Committee, and the appointment of Douglas Robertson and Richard Proulx
          to the Compensation Committee, with Douglas Robertson as the Chair of
          the Compensation Committee.
At  a  Board  of  Directors  meeting  of  the  Company held on July 11, 2005 the
following  resolutions  were  adopted:
     1)   Authorized the issuance of 1,000,000 Class B Preferred Shares to
          Betty-Ann Harland in consideration for $1,000 cash.
     2)   Approved the surrender and cancellation of 900,000 Class A Preferred
          Shares held by Betty-Ann Harland.
OFF-BALANCE SHEET ARRANGEMENTS

     We  do  not  have  any  off-balance  sheet  arrangements.

ITEM  3.  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 Quarterly 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)


                                        4
<PAGE>
of the Exchange Act).  Based on this evaluation, our chief executive officer and
chief  financial  officer  concluded that our disclosure controls and procedures
are  effective  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.

     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  quarter  that  has
materially  affected, or is reasonably likely to materially affect, our internal
controls.

                           PART II - OTHER INFORMATION

ITEM 1.   LEGAL  PROCEEDINGS.

     As  of  the  date  of  this  report,  we  are  not  involved  in  any legal
proceedings.

ITEM 2.   UNREGISTERED  SALES  OF  EQUITY  SECURITIES AND USE OF PROCEEDS. .

     None. .

ITEM 3.   DEFAULTS  UPON  SENIOR  SECURITIES.

     None.

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

     None.

ITEM 5.   OTHER INFORMATION.

     None.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

     (a)     Exhibits.

<TABLE>
<CAPTION>
  EXHIBIT
    NO.                                           IDENTIFICATION OF EXHIBIT
-----------  -----------------------------------------------------------------------------------------------------------
<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.
    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.
    4.1**    Certificate of Designation for the Series B Preferred Stock, filed with the Nevada Secretary of State
             effective April 7, 2005.
    4.2**    Certificate of Amendment to the Certificate of Designation for the Series B Preferred Stock, filed with the
             Nevada Secretary of State effective April 12, 2005.
    10.1*    Private Placement Agreement between Ozolutions Inc., now International Development Corp., and Betty-
             Ann Harland dated September 23, 2004, filed with the Form 10-KSB for the period ended August 31, 2004.
    10.2*    Charter of Compensation Committee dated November 15, 2004.
    10.3*    Charter of Audit Committee dated November 15, 2004.


                                        5
<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.
    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.


                                        6
<PAGE>
(b)     Reports on Form 8-K.

        On March 15, 2005 we filed a Form 8-K reporting the resignation of our
Director Robert W. Gingell.

        On April 20, 2005 we filed a Form 8-K reporting the appointment of our
Director Richard Proulx.

                                   SIGNATURES

        In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                   INTERNATIONAL DEVELOPMENT CORP.

Dated July 15, 2005.

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


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

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


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


<TABLE>
<CAPTION>
TABLE OF CONTENTS
--------------------------------------------------------------------------
<S>                                                                   <C>

Consolidated Balance Sheets at May 31, 2005 (Unaudited)
  and August 31, 2004                                                   1

Consolidated Statements of Changes in Stockholders' Equity (Deficit)
  for the Nine Months Ended May 31, 2005 and 2004 (Unaudited)
  and for the Year Ended August 31, 2004                                2

Consolidated Statements of Operations for the Three and Nine Months
  Ended May 31, 2005 and 2004 (Unaudited)                               3

Consolidated Statements of Cash Flows for the Nine Months Ended
  May 31, 2005 and 2004 (Unaudited)                                    4-5

Notes to Consolidated Financial Statements                            6-12
</TABLE>


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

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

                                                                     (UNAUDITED)
                                                                        MAY 31,      August 31,
                                                                         2005          2004
-----------------------------------------------------------------------------------------------
<S>                                                                  <C>           <C>

ASSETS

CURRENT ASSETS
Cash and Cash Equivalents                                            $     1,561   $       233
Accounts Receivable - Net of Allowance for Doubtful Accounts                   -        23,184
Inventory                                                                205,834       208,798
Prepaid Expenses and Deposits                                                  -        40,000
-----------------------------------------------------------------------------------------------

TOTAL ASSETS                                                         $   207,395   $   272,215
===============================================================================================

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
Accounts Payable                                                     $    81,876   $    93,506
Deferred Revenue                                                           7,037         7,037
Due to Directors                                                         279,661       149,897
Due to Stockholder                                                       141,340       107,327
-----------------------------------------------------------------------------------------------

TOTAL LIABILITIES                                                        509,914       357,767
-----------------------------------------------------------------------------------------------

STOCKHOLDERS' DEFICIT
Common Stock:    $.001 Par; 800,000,000 and 50,000,000 Shares
                 Authorized, respectively; 477,404,226 and
                 34,904,226 Issued and Outstanding, respectively         477,404        34,904
Preferred Stock, Class A:  $.001 Par; 100,000,000 and -0- Shares
                 Authorized, respectively; 1,000,000 and -0- Shares
                 Issued and Outstanding, respectively                      1,000             -
Preferred Stock, Class B:  $.001 Par; 5,000,000 and -0- Shares
                 Authorized, respectively; No Shares Issued and
                 Outstanding, respectively                                     -             -
Additional Paid-In Capital                                             2,222,312     1,890,364
Accumulated Deficit                                                   (3,003,235)   (2,010,820)
-----------------------------------------------------------------------------------------------

TOTAL STOCKHOLDERS' DEFICIT                                             (302,519)      (85,552)
-----------------------------------------------------------------------------------------------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                          $   207,395   $   272,215
===============================================================================================
</TABLE>

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


                                      - 1 -
<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)
=================================================================================================================================

                                               COMMON STOCK           PREFERRED STOCK                                    TOTAL
                                            ($0.001 PAR VALUE)      ($0.001 PAR VALUE)                                   STOCK-
                                          ----------------------  ----------------------    ADDITIONAL     ACCUMU-      HOLDERS'
                                             NUMBER                  NUMBER                  PAID-IN        LATED        EQUITY
                                           OF SHARES      VALUE    OF SHARES     VALUE       CAPITAL       DEFICIT     (DEFICIT)
---------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>           <C>        <C>         <C>         <C>           <C>           <C>
BALANCE - AUGUST 31, 2003                  33,754,226   $ 33,754            -  $        -  $ 1,752,975   $(1,625,380)  $ 161,349
Shares Issued for Cash Consideration          250,000        250            -           -        6,950             -       7,200
Shares Issued as Consideration for
  Acquisition of Marketing Rights             250,000        250            -           -       14,750             -      15,000
Shares Issued to Consultant in
  Exchange for Services                        75,000         75            -           -        2,425             -       2,500
Capital Contribution - Interest Expense             -          -            -           -        6,954             -       6,954
Net Loss for the Period (Unaudited)                 -          -            -           -            -      (276,308)   (276,308)
---------------------------------------------------------------------------------------------------------------------------------

BALANCE - MAY 31, 2004 (UNAUDITED)         34,329,226     34,329            -           -    1,784,054    (1,901,688)    (83,305)

Shares Issued for Cash Consideration          575,000        575            -           -        9,723             -      10,298
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                                  -          -            -           -        3,215             -       3,215
Net Loss for the Period
  (Unaudited)                                       -          -            -           -            -      (109,132)   (109,132)
---------------------------------------------------------------------------------------------------------------------------------

BALANCE - AUGUST 31, 2004                  34,904,226     34,904            -           -    1,890,364    (2,010,820)    (85,552)

Shares Issued for Cash
  Consideration                            15,000,000     15,000            -           -       10,000             -      25,000
Common Stock Exchanged
  for Preferred Stock                     (15,000,000)   (15,000)   1,000,000       1,000       14,000             -           -
Commitment for Purchase
  of Shares for Cancellation                        -          -            -           -       (5,000)            -      (5,000)
Shares Issued to Consultant
  in Exchange for Services                  9,500,000      9,500            -           -       10,500             -      20,000
Stock Options Granted -
  Compensation for
  Services Rendered                                 -          -            -           -      108,014             -     108,014
Stock Options Exercised                   433,000,000    433,000            -           -      179,082             -     612,082
Capital Contribution -
  Interest Expense                                  -          -            -           -       15,352             -      15,352
Net Loss for the Period (Unaudited)                 -          -            -           -            -      (992,415)   (992,415)
---------------------------------------------------------------------------------------------------------------------------------

BALANCE - MAY 31, 2005 (UNAUDITED)        477,404,226   $477,404    1,000,000  $    1,000  $ 2,222,312   $(3,003,235)  $(302,519)
=================================================================================================================================
</TABLE>

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


                                      - 2 -
<PAGE>
<TABLE>
<CAPTION>

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

CONSOLIDATED  STATEMENTS  OF  OPERATIONS  (UNAUDITED)
=====================================================================================================

                                        THREE MONTHS ENDED MAY 31,        NINE MONTHS ENDED MAY 31,
                                    --------------------------------  -------------------------------

                                          2005             2004             2005            2004
-----------------------------------------------------------------------------------------------------
<S>                                 <C>                <C>            <C>               <C>

REVENUES, NET                       $              -   $          -   $             -   $          -

Cost of Goods Sold                                 -              -                 -              -
-----------------------------------------------------------------------------------------------------

GROSS PROFIT                                       -              -                 -              -
-----------------------------------------------------------------------------------------------------

EXPENSES
Bad Debts Expense (Recovery)                  (8,879)             -            14,065         80,000
Consulting Fees                               98,002         24,600           291,339         73,800
Marketing, Including Amortization
  of Marketing Rights                         69,820         10,625           159,725         49,420
General and Administrative                   101,735         16,226           207,053         66,134
Restructuring Charges                         40,713              -           304,881              -
Interest Expense                               7,360          2,310            15,352          6,954
-----------------------------------------------------------------------------------------------------

TOTAL EXPENSES                               308,751         53,761           992,415        276,308
-----------------------------------------------------------------------------------------------------

LOSS BEFORE PROVISION FOR TAXES             (308,751)       (53,761)         (992,415)      (276,308)

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

NET LOSS FOR THE PERIOD             $       (308,751)  $    (53,761)  $      (992,415)  $   (276,308)
=====================================================================================================

WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING -
  BASIC AND DILUTED                      413,790,097     34,106,128       170,219,245     34,030,229

NET LOSS PER COMMON SHARE -
  BASIC AND DILUTED                 $          (0.00)  $      (0.00)  $         (0.01)  $      (0.01)
=====================================================================================================
</TABLE>

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


                                      - 3 -
<PAGE>
<TABLE>
<CAPTION>

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

CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS  (UNAUDITED)
=======================================================================================

                                                            NINE MONTHS ENDED MAY 31,
                                                        -------------------------------

                                                              2005            2004
---------------------------------------------------------------------------------------
<S>                                                     <C>               <C>

CASH FLOWS FROM OPERATING ACTIVITIES

NET LOSS FOR THE PERIOD                                 $      (992,415)  $   (276,308)

NON-CASH ADJUSTMENTS:
Amortization of Marketing Rights                                      -         15,000
Bad Debts Expense                                                14,065         80,000
Interest on Director/Stockholder Loans                           15,352          6,954
Shares Issued to Consultants                                     20,000          2,500
Compensation Expense on Employee Stock Option Grants            108,014              -

CHANGES IN ASSETS AND LIABILITIES:
Accounts Receivable                                               9,119          4,492
Prepaid Expenses and Deposits                                    40,000          7,722
Inventory                                                         2,964              -
Accounts Payable                                                (11,630)        60,659
---------------------------------------------------------------------------------------

NET CASH FLOWS FROM OPERATING ACTIVITIES                       (794,531)       (98,981)
---------------------------------------------------------------------------------------

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

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Issuance of Common Stock                           25,000          7,200
Proceeds from Stock Options Exercised                           612,082              -
Payment for Purchase of Common Stock for Cancellation            (5,000)             -
Advances from Directors                                         357,598         50,643
Repayments to Directors                                        (227,834)        (1,127)
Advances from Stockholder                                        88,697         48,439
Repayments to Stockholder                                       (54,684)        (5,758)
---------------------------------------------------------------------------------------

NET CASH FLOWS FROM FINANCING ACTIVITIES                        795,859         99,397
---------------------------------------------------------------------------------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                           1,328            416

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

CASH AND CASH EQUIVALENTS - END OF PERIOD               $         1,561   $        543
=======================================================================================

                                                                          - continued -

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


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

STATEMENTS OF CASH FLOWS (UNAUDITED) - CONTINUED
=======================================================================================

                                                            NINE MONTHS ENDED MAY 31,
                                                        -------------------------------

                                                              2005            2004
---------------------------------------------------------------------------------------

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

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


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

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

TOTAL CASH PAID FOR MARKETING RIGHTS                    $             -   $          -
=======================================================================================
</TABLE>

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


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

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================


NOTE  A  -     BASIS  OF  PRESENTATION
               The  condensed consolidated financial statements of International
               Development  Corp. (formerly Ozolutions Inc.) and Subsidiary (the
               "Company")  included  herein  have  been prepared by the Company,
               without  audit,  pursuant  to  the  rules  and regulations of the
               Securities  and  Exchange  Commission  (the  "SEC").  Certain
               information  and  footnote  disclosures  normally  included  in
               consolidated  financial  statements  prepared in conjunction with
               generally  accepted  accounting principles have been condensed or
               omitted  pursuant  to  such  rules  and regulations, although the
               Company  believes  that  the disclosures are adequate to make the
               information  presented  not  misleading.  These  condensed
               consolidated  financial  statements should be read in conjunction
               with  the  annual  audited  financial  statements  and  the notes
               thereto  included in the Company's Form 10-KSB Annual Report, and
               other  reports  filed  with  the  SEC.

               The  accompanying  unaudited  interim  consolidated  financial
               statements  reflect  all  adjustments  of  a normal and recurring
               nature  which  are,  in  the  opinion of management, necessary to
               present  fairly the financial position, results of operations and
               cash  flows of the Company for the interim periods presented. The
               results  of  operations  for  these  periods  are not necessarily
               comparable  to,  or  indicative  of, results of any other interim
               period  of  or for the fiscal year taken as a whole. Factors that
               affect  the comparability of financial data from year to year and
               for  comparable  interim  periods  include non-recurring expenses
               associated  with  the  Company's costs incurred to reorganize the
               Company,  raise  capital,  and  stock options and awards. Certain
               financial  information that is not required for interim financial
               reporting  purposes  has  been  omitted.

               PRINCIPLES  OF  CONSOLIDATION
               In  January  2005,  International  Development  Corp.  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  the Company could concentrate its
               efforts on identifying and closing focused acquisitions, building
               the  Company  through  steady  planned  growth.

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

               RECLASSIFICATIONS
               Certain  amounts  in  the  prior  year  consolidated  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  consolidated  financial  statements.


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

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================


NOTE  B  -     THE  COMPANY
               At  a stockholders meeting held on December 9, 2004 the following
               resolutions  were  adopted  by  written  consent of a majority of
               stockholders:
               1)   Approved  the  merger  of  Ozolutions Inc. and International
                    Development  Corp.  ("I.D.C."),  a  Nevada Corporation, with
                    I.D.C.  becoming  the  continuing  company.
               2)   Approved  the change of the Company's domicile from Delaware
                    to  Nevada.
               3)   Elected  Directors  of  I.D.C.,  the  surviving  Company.
               4)   Approved  an  increase  in  authorized  common  stock  from
                    50,000,000  to  800,000,000  under  the  articles  of
                    incorporation  of  I.D.C.
               5)   Authorized  100,000,000  shares  of  preferred  stock.
               6)   Authorized  the  Board  of  Directors  to  determine  the
                    preferences,  limitations and rights of classes or series of
                    shares  as provided in Section 78.1955 of the Nevada Revised
                    Statutes  under the articles of incorporation of I.D.C., the
                    surviving  Corporation.
               7)   Approved  the  bylaws  of  I.D.C.  which governs the Company
                    following  the  merger.

               At  a Board of Directors meeting of the Company held on March 30,
               2005  the  following  resolutions  were  adopted:
               1)   Authorized  an  increase  in  share capital from 800,000,000
                    common  shares to 1,500,000,000 common shares. Authorization
                    was  rescinded  by  the Board of Directors on July 11, 2005.
               2)   Authorized  a  new  Series  of Class B Preferred Stock, with
                    shares  carrying  500  to  1 voting rights and no conversion
                    feature.
               3)   Authorized  an  increase  from  500,000,000 common shares to
                    750,000,000 common shares to be available under the Employee
                    Stock  Incentive  Plan.  Authorization  was rescinded by the
                    Board  of  Directors  on  July  11,  2005.

               At  a Board of Directors meeting of the Company held on April 13,
               2005  the  following  resolutions  were  adopted:
               1)   Authorized  5,000,000  shares  of  Class  B  Preferred Stock
                    available  for  issuance.
               2)   Authorized  the  exchange  of  1,000,000  shares  of Class A
                    Preferred  Stock,  held  by Betty-Ann Harland, for 2,000,000
                    shares  of  Class  B  Preferred  Stock.  Authorization  was
                    rescinded  by  the  Board  of  Directors  on  July 11, 2005.
               3)   Authorized  the  appointment of Douglas Robertson and Arthur
                    Kelly to the Audit Committee, with Arthur Kelly as the Chair
                    of  the  Audit  Committee,  and  the  appointment of Douglas
                    Robertson  and Richard Proulx to the Compensation Committee,
                    with  Douglas  Robertson  as  the  Chair of the Compensation
                    Committee.


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

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================


NOTE  C  -     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.

               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  period ended May 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 period ended May 31, 2005, for the fair value
               of  the  options  at  the  date of the grant using an appropriate
               option-pricing  model.  As  of  May  31,  2005,  there  were  no
               outstanding  options.

               During  the  period  ended  May  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.


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

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================


NOTE  D  -     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 District 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 exercise its right
               to  repurchase  the  800,000  common  shares that were previously
               issued  to the plaintiffs. As of May 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 ("Chapman"). 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  with a
               preliminary  hearing  being  set  during  2005.

               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 is 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 is to pay a
               monthly consulting fee of $15,000. This agreement is 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  is to assist the Company in identifying
               and researching potential acquisitions. The Company is to pay the
               Contractor  $5,000  in  cash or free trading Company common stock
               monthly.  This  agreement  was  terminated  in  April  2005.


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

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================


NOTE  E  -     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 this
                    financing,  which  U.S. Capital, Inc. expects to conclude in
                    2005. During the year ended August 31, 2004, $10,000 of this
                    commitment  fee  was  refunded  to  the  Company.

               As  of  May  31, 2005, the Company has written-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  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 is to pay $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 May 31, 2005, this
               agreement  has  not  been  renewed  since  the  expiration of the
               original  term.


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

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================


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 a net loss of $992,415 for the nine months ended May 31,
               2005.  As a result, there is an accumulated deficit of $3,003,235
               at  May  31,  2005.

               The  Company's  continued existence is dependent upon its ability
               to raise capital 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  -     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 -


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

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================


NOTE  H  -     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  I  -     SUBSEQUENT  EVENTS
               In  June  2005, the Company signed a Letter of Intent to purchase
               the  international  marketing  rights  for all markets outside of
               Canada  and  become the sole provider of Wataire Industries, Inc.
               products.  Consideration  for  the  purchase  will  be negotiated
               during the process of drafting the definitive purchase agreement,
               which  is  expected  to  be  completed  by  the end of July 2005.


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