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

                           FORM 10-QSB


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

     For the quarterly period ended May 31, 2001

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

     For the transition period from        to

                   Commission File No. 0-31343

                         OZOLUTIONS INC.
     (Exact name of small business issuer as specified in its
                            charter)

           Delaware                         98-0229321
(State or Other Jurisdiction of           (IRS Employer
Incorporation or Organization)         Identification No.)

 30 Denver Crescent, Suite 200, Toronto, Ontario, Canada M2J 1G8
            (Address of principal executive offices)

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

                         Not Applicable
  (Former name, address and 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.  Yes  [ X ]    No
[  ]

APPLICABLE  ONLY  TO  ISSUERS INVOLVED IN BANKRUPTCY  PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:

Check whether the registrant has filed all documents and reports
required  to  be  filed by Sections 12,  13,  or  15(d)  of  the
Exchange Act subsequent to the distribution of securities  under
a plan confirmed by a court.  Yes  [   ]   No [   ]

APPLICABLE ONLY TO CORPORATE ISSUERS:
State  the number of shares outstanding of each of the  issuer's
classes of common equity, as of the latest practicable date:  At
April  10,  2001, there were 18,999,133 shares of  common  stock
outstanding.

<PAGE>



                           FORM 10-QSB
                        OZOLUTIONS, INC.

                              INDEX
                                                                   Page

PART I.   Item 1. Financial Information                             3

          Balance Sheets at May 31, 2001                            3
          (Unaudited) and August 31, 2000

          Statements of Changes in Stockholders'                    4
          Equity (Deficit) for the Three Months and Nine Months
          Ended May 31, 2001 and 2000 and for the
          Period from Date of Inception (January 10, 1996)
          through May 31, 2001 (Unaudited)

          Statements of Operations for the Three                    6
          Months Ended May 31, 2001 and 2000, and for
          the Period from Date of Inception (January 10,
          1996) through May 31, 2001 (Unaudited)

          Statements of Operations for the Nine                     7
          Months Ended May 31, 2001 and 2000 (Unaudited)

          Statements of Cash Flows for the Nine                     8
          Months Ended May 31, 2001 and 2000, and for the
          Period from Date of Inception (January 10, 1996)
          through May 31, 2001 (Unaudited)

          Notes to Financial Statements                            10

          Item   2.  Management's  Discussion   and                13
          Analysis or Plan of Operation

PART II.  Other Information                                        15

Signatures                                                         15

                               2
<PAGE>



                             PART I.
                  Item 1. Financial Information

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada

BALANCE SHEETS

                                                   (U.S. Dollars)
                                               (Unaudited)
                                                May 31,   August 31,
                                                  2001       2000

ASSETS

Cash and Cash Equivalents                     $        60  $        -
Marketing Rights, Net of Accumulated
  Amortization                                    880,854     998,969
Deposits                                           56,292           -

Total Assets                                  $   937,206   $ 998,969

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities
Accounts Payable                              $    23,801   $   6,845
Deferred Revenue                                   33,000           -
Due to 1421209 Ontario Limited - Due Within
 One Year                                       1,000,000     800,000
Due to Director                                    54,503           -
Due to Stockholders                               110,935      28,883

Total Current Liabilities                       1,222,239     835,728

Other Liabilities
Due to 1421209 Ontario Limited - Due
 After One Year                                         -     200,000

Total Liabilities                               1,222,239   1,035,728

Stockholders' Equity (Deficit)
Common Stock:  $.001 Par; 50,000,000 Shares
 Authorized 18,999,133 Issued and Outstanding      18,999      18,999
Additional Paid-In Capital                         66,217      33,217
Deficit Accumulated During Development Stage    (370,249)    (88,975)

Total Stockholders' Equity (Deficit)            (285,033)    (36,759)

Total Liabilities and Stockholders' Equity    $  937,206  $  998,969
(Deficit)

  The accompanying notes are an integral part of this financial
                           statement.

                               3
<PAGE>


OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario,
Canada

STATEMENTS  OF  CHANGES  IN STOCKHOLDERS' EQUITY (DEFICIT)  FOR  THE  THREE
MONTHS AND NINE MONTHS ENDED May 31, 2001 AND 2000 AND FOR THE PERIOD  FROM
DATE OF INCEPTION (JANUARY 10, 1996) THROUGH May 31, 2001 (UNAUDITED)
<TABLE>
<CAPTION>

                                         (U.S. Dollars)
                                                                                  Deficit
                                                                                Accumulated     Total
                                                                     Additional   During    Stockholders'
                                    Number        Par      Common      Paid-In  Development    Equity
                                  of Shares      Value      Stock      Capital     Stage      (Deficit)
<S>                              <C>           <C>       <C>        <C>         <C>         <C>
Balance - January 10, 1996                 -   $     -   $      -   $       -   $       -   $         -

January 11, 1996
Common Stock Issued in
 Exchange for Expenses Paid by
 Stockholders                     10,999,133     0.001     10,999           -           -        10,999

Net Loss for the Period                    -         -          -           -     (11,049)      (11,049)


Balance - August 31, 1999         10,999,133     0.001     10,999           -     (11,049)        (50)

Net Loss for the Period                    -         -          -           -           -           -

Balance - November 30, 1999       10,999,133     0.001     10,999           -     (11,049)        (50)

June 21, 2000
Common Stock issued as partial
 consideration for acquisition
 of marketing contracts            8,000,000     0.001      8,000           -           -       8,000

Cash Contribution  of Captial              -         -          -      17,217           -      17,217

Territory Fee Paid by Stockholder
 on Behalf of the Corporation              -         -          -      10,000           -      10,000

Consulting Services Contributed
 by Officers/Directors                     -         -          -       6,000           -       6,000

Net Loss for the Period                    -         -          -           -     (77,926)    (77,926)

Balance - August 31, 2000         18,999,133   $ 0.001   $ 18,999   $  33,217   $ (88,975)  $ (36,759)
</TABLE>

  The accompanying notes are an integral part of this financial
                           statement.
                                              -continued-

                               4
<PAGE>


OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


STATEMENTS  OF  CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  FOR  THE  THREE
MONTHS AND NINE MONTHS ENDED MAY 31, 2001 AND 2000 AND FOR THE PERIOD FROM
DATE  OF  INCEPTION (JANUARY 10, 1996) THROUGH MAY 31, 2001 (UNAUDITED)  -
continued

<TABLE>
<CAPTION>
                                         (U.S. Dollars)

                                                                               Deficit
                                                                             Accumulated     Total
                                                                  Additional   During    Stockholders'
                                   Number       Par     Common     Paid-In   Development    Equity
                                 of Shares     Value     Stock     Capital      Stage      (Deficit)
<S>                            <C>           <C>       <C>        <C>        <C>          <C>
Balance - August 31, 2000       18,999,133   $ 0.001   $ 18,999   $ 33,217   $  (88,975)  $ (36,759)


Consulting Services Contributed
 by Officer/Directors                    -         -          -      9,000            -       9,000

Net Loss for the Period                  -         -          -          -      (95,765)    (95,765)

Balance - November 30, 2000     18,999,133     0.001     18,999     42,217     (184,740)   (123,524)

Consulting Services Contributed
 by Officers/Consultants                 -         -          -     15,000            -      15,000

Net Loss for the Period                  -         -          -          -      (97,505)    (97,505)

Balance - February 28, 2001     18,999,133     0.001     18,999     57,217     (282,245)   (206,029)

Consulting Services Contributed
 by Officer/Consultants                  -         -          -      9,000            -       9,000

Net Loss for the Period                  -         -          -          -      (88,004)    (88,004)

Balance - May 31, 2001          18,999,133  $  0.001   $ 18,999   $ 66,217   $ (370,249)  $(285,033)
</TABLE>

  The accompanying notes are an integral part of this financial
                           statement.

                               5
<PAGE>


OZOLUTIONS, INC.
(A DEVELOPMENT STAGE
COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada

STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MAY 31,  2001  AND
2000  AND  FOR  THE PERIOD FROM DATE OF INCEPTION (JANUARY  10,  1996)
THROUGH MAY 31, 2001 (UNAUDITED)

                                 (U.S. Dollars)

                                    Date of
                                   Inception    Three Months Ended
                                    Through           May 31,
                                    May 31,
                                     2001        2001        2000

Revenues                         $        -   $         -  $         -

Expenses
Amortization of Marketing           144,363        39,372            -
Contracts
Consulting Fees                     103,376        28,376            -
Professional Fees                    49,743         5,900            -
Organization Costs                   11,049             -            -
Territory Fee                        10,000             -            -
Transfer Agent Fees                  20,161         3,556            -
General and Administrative           13,322         5,046            -
Marketing                            18,235         5,754            -

Total Expenses                      370,249        88,004            -

Net Loss for the Period           $(370,249)   $   (88,004) $         -

Weighted Average of Common                      18,999,133   10,999,133
Shares Outstanding

Net Loss per Common Share -
 Basic and Diluted                              $   (.005)  $    (0.000)

  The accompanying notes are an integral part of this financial
                           statement.

                               6
<PAGE>



OZOLUTIONS, INC.
(A DEVELOPMENT STAGE
COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


STATEMENTS  OF OPERATIONS FOR THE NINE MONTHS ENDED MAY 31,  2001  AND
2000

                                                 Nine Months Ended
                                                      May 31,
                                                 2001        2000

Revenues                                 $         -   $            -

Expenses
Amortization of Marketing Contracts          118,116                -
Consulting Fees                               98,938                -
Professional Fees                             23,410                -
Organization Costs                                 -                -
Territory Fee                                      -                -
Transfer Agent Fees                           13,126                -
General and Administrative                     9,449                -
Marketing                                     18,237                -

Total Expenses                               281,276                -

Net Loss for the Period                   $ (281,276)  $            -

Weighted Average of Common                18,999,133       10,999,133
Shares Outstanding

Net Loss per Common Share -
Basic and Diluted                         $   (0.015)  $       (0.000)

  The accompanying notes are an integral part of this financial
                           statement.

                               7
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada

STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED MAY 31, 2001 AND
2000  AND FOR THE PERIOD FROM DATE OF INCEPTION (JANUARY 10,  1996)
THROUGH MAY 31, 2001 (UNAUDITED)

                                            (U.S. Dollars)

                                           Date of
                                          Inception   Nine Months Ended
                                           Through         May 31,
                                           May 31,
                                            2001        2001      2000

Cash Flows from Operating Activities

Net Loss for the Period                   $(370,249) $(281,275)  $    -

Adjustments:
Contributed Services                         39,000     33,000        -
Amortization of Marketing Contracts         144,363    118,116        -

Changes in Assets and Liabilities:
Marketing Rights                            (17,217)         -        -
Deposits                                    (55,655)   (55,655)       -
Accounts Payable                             23,801     16,956        -
Deferred Revenue                             32,363     32,363        -
Due to Director                              54,503     54,503        -
Due to Stockholders                         110,935     82,052        -

Net Cash Flows from Operating  Activities   (38,156)         60       -

Cash Flows from Investing Activities              -          -        -

Cash Flows from Financing Activities
Paid-In Capital                              27,217          -        -
Proceeds from Common Stock                   10,999          -        -

Net Cash Flows from Financing Activities     38,216          -        -

Net Increase in Cash and Cash Equivalents        60         60        -
Cash and Cash Equivalents - Beginning of
 Period                                           -          -        -

Cash and Cash Equivalents -  End of
 Period                                 $        60   $     60  $     -

  The accompanying notes are an integral part of this financial
                           statement.

                               8
<PAGE>


OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES

                                         Date of
                                        Inception     Nine Months
                                         Through         Ended
                                         May 31,        May 31,
                                           2001      2001     2000

Acquisition of Marketing Contracts
  Assets Purchased                   $ 1,025,217   $     -   $    -

Less:  Purchase Price Financed via
 Payable to 1421209 Ontario Limited   (1,000,000)        -        -

Less:  Purchase Price Paid via
 Stock Issuance                           (8,000)        -        -

Cash Paid - Non-Refundable
 Deposit                             $    17,217   $     -  $     -


                               9
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


NOTES TO FINANCIAL STATEMENTS


Note A -       Basis of Presentation
      The  condensed  financial statements  of  Ozolutions,  Inc.
      (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  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  financial  statements
      should  be  read  in  conjunction with the  annual  audited
      financial statements and the notes thereto included in  the
      Company's Form 10SB, and other reports filed with the SEC.

      The  accompanying  unaudited interim  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  registration   with   the
      Securities  and Exchange Commission and costs  incurred  to
      raise  capital and acquisitions of patents and  trademarks.
      Certain  financial  information that is  not  required  for
      interim financial reporting purposes has been omitted.

Note B -       Other Matters
      Deposits
      During  the  nine  months ended May 31, 2001,  the  Company
      deposited  $22,292  with  vendors to  purchase  twenty-five
      (25)  Ozone Titan Water Purification Systems, and deposited
      $34,000  with vendors to purchase thirty-one (31) EntrOzone
      Water Purification Systems.

      Additional Capital Contribution
      During  the  nine  months ended May 31, 2001,  the  Company
      received  an additional capital contribution of $27,000  in
      the  form  of  services  contributed  by  an  officer.   In
      addition,  one consultant contributed capital in  the  form
      of services which amounted to $6,000.

      Going Concern
      The  Company's 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
      reported  net losses of $370,249 for the period  from  date
      of  inception (January 10, 1996) through May 31, 2001.   As
      a  result  there is a retained deficit of $370,249  at  May
      31, 2001.

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

                               10
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


NOTES TO FINANCIAL STATEMENTS


Note C -       Marketing Rights
      Marketing   rights  represent  the  exclusive   rights   to
      distribute  "Hankin  Atlas  Ozone  Systems"  acquired  from
      1421209 Ontario Limited.  Contracts are recorded at cost.

      The  aggregate purchase price for the marketing rights  has
      been  allocated  to the three territories  based  upon  the
      estimated  net  revenue  of  each  of  the  territories  as
      follows:

                                                             2001

       Ontario Territory                               $  798,644
       Mexico Territory                                   150,912
       Caribbean Territory                                 75,661

       Total Marketing Contracts                       $1,025,217
       Less:  Accumulated Amortization                    144,363

       Net Marketing Contracts                         $  880,854

      Contracts   for   the   Ontario,   Canada   and   Caribbean
      territories  are  being  amortized over  the  remainder  of
      their  useful  lives  of nine years  which  represents  the
      contractual  terms  of  three  years  plus  two   automatic
      renewal  extensions of three years each.  The contract  for
      the  Mexico territory is being amortized over the remainder
      of  its  initial  contract term of  three  years.   Renewal
      provisions of two, three year terms in the Mexico  contract
      were  not  included in the amortization period,  since  the
      renewal   was   contingent  upon  the   Company   achieving
      approximately $666,000 (U.S.) of sales during each term  of
      the  contract,  which is uncertain as of the  date  of  the
      financial statements.

      The  remaining contractual lives at the date of acquisition
      (June  21, 2000) upon which amortization expense  is  being
      charged to operations is as follows:

       Ontario Territory                               102 Months
       Mexico Territory                                 33 Months
       Caribbean Territory                             105 Months

      Amortization expense amounted to $118,116 and $-0- for  the
      nine months ended May 31, 2001 and 2000, respectively.


                                                         - continued -

                               11
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


NOTES TO FINANCIAL STATEMENTS


Note C -       Marketing Rights - continued

      Impairment of Marketing Rights
      The  Company adopted the Statement of Financial  Accounting
      Standards  (SFAS) No. 121, "Accounting for  the  Impairment
      of  Long-Lived  Assets  and for  Long-Lived  Assets  to  be
      Disposed of."  Under the provisions of this statement,  the
      Company  has evaluated its long-lived assets for  financial
      impairment,  and will continue to evaluate them  as  events
      or  changes  in  circumstances indicate that  the  carrying
      amount of such assets may not be fully recoverable.

      The  Company  evaluates  the recoverability  of  long-lived
      assets  not held for sale by measuring the carrying  amount
      of  the assets against the estimated discounted future cash
      flows  associated  with them. At the time such  evaluations
      indicate  that the future discounted cash flows of  certain
      long-lived  assets  are  not  sufficient  to  recover   the
      carrying  value of such assets, the assets are adjusted  to
      their fair values.  Based on these evaluations, there  were
      no  adjustments to the carrying value of long-lived  assets
      in 2001.

Note D -       Advisory Agreements
                 On  June  5,  2001,  the  Company  entered  into
      advisory  agreements with the firms of  David  Michael  LLC
      and   Feng  Shui  Consulting,  Inc.   The  purpose  of  the
      advisory  agreements is to assist the Company in  effecting
      the  purchase  of  businesses and assets  relative  to  its
      business   and  growth  strategy,  acquisition   of   other
      operations  or  businesses, general business and  financial
      consulting, and the introduction of the Company  to  public
      relations firms and consultants and others that may  assist
      the  Company  in its plans. For the services  described  in
      their  respective  agreements, the advisors  will  each  be
      issued   shares  of  Ozolutions,  Inc.  on  the   following
      schedule: June 5, 2001 - 400,000 shares; September 5,  2001
      -  200,000 shares; December 5, 2001 - 200,000 shares; March
      5, 2002 - 150,000 shares.

Note E -  Stock Options
      In  June  of  2001,  the  Board of Directors  approved  the
      issuance  of 325,000 options for common stock to the  three
      directors and senior officers of the Company.

                               12
<PAGE>

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

Plan of Operation

     Ozolutions Inc. is an international marketer and distributor
of water purification systems using ozone technology.  The
markets we are primarily targeting are Mexico, the Caribbean
Zone, and Ontario, Canada.

     Ozolutions acquired the distribution rights to Hankin
products from 1421209 Ontario Limited for 8,000,000 shares of
Ozolutions common stock $17,217 paid at closing, and an
additional $1,000,000 payable in installments.

     Ozolutions was originally required to make a payment of
$550,000 to 1421209 Ontario Limited no later than November 21,
2000, as part of the purchase price for the distribution rights
it acquired from 1421209 Ontario Limited, but this payment
deadline was extended in November 2000 to June 30, 2001 to
provide Ozolutions additional time to commence operations and
raise capital.  Additional payments of $250,000 and $200,000 are
due no later than August 31, 2001 and September 30,2001.
Ozolutions has not made the payment due June 30, 2001.  Under the
terms of the agreement, Ozolutions has a 30-day grace period to
make the payment.  We are attempting to raise capital privately
to make the required payment by the end of July 2001, but there
is no assurance we will be successful in this effort.  There was
no affiliation between 1421209 Ontario Limited and Ozolutions
prior to the purchase of the distribution rights.

     We have sold 56 EntrOzone units in May 2001, but delivery of
the first water treatment units has been delayed due to continued
upgrading of the EntrOzone unit to incorporate additional multi-
barrier protection against water borne contaminants.  Delivery of
initial units is now expected by the end of July 2001.  Field
testing of the enhanced model of the EntrOzone is underway, nine
more units are in production.  Full production will commence in
August 2001.

     There is no assurance that we will be able to generate
sufficient revenue from operations within a time frame that will
allow for timely payment of our obligations to 1421209 Ontario
Limited.  If we are unable to locate financing, Ozolutions will
seek an extension of our payment obligations from 1421209 Ontario
Limited, but there is no assurance that 1421209 Ontario Limited
will grant us another extension should we request it.  Failure to
make our June 2001 payment to 1421209 Ontario Limited as required
under our purchase agreement would give rise to a claim against
Ozolutions that could result in a loss of our marketing rights
and effectively terminate our business.  We expect to negotiate a
further extension if required and have authorized a private
placement to raise capital to complete the required payments and
provide operating capital.

     1421209 Ontario Limited has agreed to lend to Ozolutions up
to $300,000 at our option to provide financing for our operations
at the time 1421209 Ontario Limited receives its first payment of
$550,000 from Ozolutions under the purchase agreement for the
distribution rights to Hankin products.  The loan will be
represented by a note due in two years bearing interest at an
annual rate of 6.5% and payable quarterly in arrears.

     Until Ozolutions receives outside financing to fund its
capital commitments, its operations will be limited to those that
can be effected through its officers, directors and consultants.
These persons, except for Edward G. Deans have verbally agreed to
defer payment of compensation from Ozolutions until revenue
generated from sales of product and financing from outside
sources provides sufficient working capital to fund operations
and payment of their compensation.  From June 2000 through May
31, 2001, D. Brian Robertson, Joseph Cira, and Lou Shefsky,
stockholders of Ozolutions, advanced $ 89,843, $3,333,

                               13
<PAGE>

and
$17,717, respectively, to Ozolutions to cover sales and
administrative expenses and an initial deposit of $22,292 made by
Ozolutions for the purchase of 25 EntrOzone water treatment
systems.  Max Weissengruber, President and a Director, has also
advanced $54,503 to Ozolutions.  These advances do not bear
interest and the parties have not set repayment terms.  These
individuals have verbally indicated their willingness to make
further advances in the future as may be required to fund ongoing
sales and administrative operating costs.  These advances are the
sole source of capital to fund operational costs.  However, there
is no written or fixed obligation to make further advances, so
there is no assurance that Ozolutions will have the capital
resources to fund its operations over the next 12 months.

     Under distribution agreements with Hankin, product is
shipped by Hankin against purchase orders we place either
directly to the end user or dealer or to us for delivery to the
end user or dealer.  Accordingly, we do not require any
significant amount of capital for inventory or facilities
required to maintain and distribute inventory.

     Based on Management's evaluation of the potential market and
an initial dealer order and deposit of $34,000 for 31 units,
Ozolutions projects that 2,400 EntrOzone units can be sold in
Ontario by the end of 2001.  We plan on taking delivery of the
first 31 units in August, which units have been sold directly to
one dealer.  Other independent dealers will be acquiring their
initial inventory once Hankin commences delivery of units.  An
additional 25 units have been ordered for delivery by August 2001
for direct customer sales.

     From the date of its inception, on January 10, 1996, through
May 31 2001, Ozolutions has not generated any revenue from the
sale of water treatment systems.  Total expenses from September
1, 2000 to May 31,2001, were $281,275.  This total includes
consulting and professional fees of $123,910, amortization of
marketing rights of $118,115 and $13,126 in transfer agent fees.
As a result, Ozolutions recognized a net loss for the nine months
ending May 31, 2001 of $281,275.  Ozolutions believes its
general, selling and administrative expenses during the 12-month
period following the date it can obtain additional financing will
be $ 255,000.  Approximately  $87,000 will be used for marketing
and sales expenses including:

     *    production of printed sales materials

     *    advertising in industry publications

     *    travel expenses associated with advancing  proposed
          projects in Mexico and the Caribbean Zone

     *    travel expenses associated with establishing an Ontario
          dealer network

     Approximately $90,000 will be used to make payments under a
consulting contract with Edward G. Deans who has assisted
Ozolutions in formulating marketing plans and will assist in
their implementation.  The remaining $78,000 is the estimated
cost of clerical and management staff and facilities required to
operate over the next year.

Forward-Looking Statements

     All statements, other than statements of historical fact,
which address activities, actions, goals, prospects, or new
developments that Ozolutions expects or anticipates will or may
occur in the future, including such things as expansion and
growth of its operations and other such matters are forward-
looking statements.  Any one or a combination of factors could
materially affect Ozolutions' operations and financial condition.
These factors include competitive pressures, success or failure
of marketing

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programs, changes in pricing and availability of
products, and conditions in the capital markets.  Forward-looking
statements made by Ozolutions are based on knowledge of its
business and the environment in which it operates as of the date
of this report.  Because of the factors listed above, as well as
other factors beyond its control, actual results may differ from
those in the forward-looking statements.

                   PART II.  OTHER INFORMATION

EXHIBITS AND REPORTS ON FORM 8-K

Exhibits

None.

Reports on Form 8-K

None

                           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.

                                   OZOLUTIONS, INC.

Date:  July 9, 2001                By: /s/ Max Weissengruber,
                                   President

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