SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

      FOR ANNUAL AND TRANSITIONAL REPORTS UNDER SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                                   (MARK ONE)

   [X] ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
                 OF 1934 FOR FISCAL QUARTER ENDED MARCH 31, 2005

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

         FOR THE TRANSITION PERIOD FROM _____________ TO ______________

                        COMMISSION FILE NUMBER: 000-31403

                          INTERNATIONAL SURFACING, INC.
      --------------------------------------------------------------------
      (Exact Name of Small Business Registrant as Specified in its Charter)

               DELAWARE                             52-2257557
       -------------------------------- ------------------------------------
       (State or other jurisdiction of  (I.R.S. Employer Identification No.)
  incorporation or organization)

                        5 Erie Street, Garfield, NJ 07026
               --------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                            (973) 253-6131
              ---------------------------------------------------
              (Registrant's telephone number, including area code)

              Securities Registered Under Section 12(B) Of The Act:

                                      None

         Securities Registered Under Section 12(G) of the Exchange Act:

                                (Title Of Class)
                         Common Stock, Par Value $0.0001

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 [ ]

Check if no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is contained in this form, and no disclosure will be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-QSB or any
amendment to this Form 10-QSB. [__]

The Registrant's Common Stock is not traded on any market at the date of this
report.

March 31, 2005, the Registrant had outstanding 32,194,480 shares of Common
Stock, $0.0001 par value.

The Registrant's revenues for the quarter ended March 31, 2005 were $0.


<PAGE>

                          INTERNATIONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                              FINANCIAL STATEMENTS

                                 March 31, 2005

                                Table of Contents

<TABLE>
<CAPTION>


                                                                                                           Page
                                                                                                          Number
                                                                                                          ------
<S>                                                                                                         <C>

Financial Statements:

      Balance Sheet as of March 31, 2005 and December 31, 2004                                               1

      Statement of Operations for the three months ended March 31, 2005 and
         March 31, 2004                                                                                      2

      Statement of Stockholders' Deficit for the three months ended March 31, 2005                           3

      Statement of Cash Flows for the three months ended March 31, 2005 and
         March 31, 2004                                                                                      4


Notes to Financial Statements                                                                                5

</TABLE>


<PAGE>

                          INTERNATIONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                                 BALANCE SHEETS

                   As of March 31, 2005 and December 31, 2004

<TABLE>
<CAPTION>
                                                                                            March 31,            Dec. 31,
                                                                                               2005                2004
                                                                                         -----------------    ----------------
<S>                                                                                              <C>                <C>
                                                                                           (Unaudited)           (Note 1)
                                       ASSETS
Current Assets:
Cash                                                                                     $          1,507     $           146
Loans receivable                                                                                      440                 440
                                                                                         -----------------    ----------------
        Total current assets                                                                        1,947                 586
                                                                                         -----------------    ----------------

Fixed Assets, net (Note 5)                                                                         10,315              11,757
Security deposits                                                                                   5,000               5,000
                                                                                         -----------------    ----------------

           Total assets                                                                  $         17,262     $        17,343
                                                                                         =================    ================

                        LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
      Accounts payable                                                                   $         97,504     $        91,882
      Accrued expenses                                                                             77,250              77,250
      Loans payable-other (Note 6)                                                                 21,500               8,000
      Loans payable -officer (Note 6)                                                             180,784             123,437
                                                                                         -----------------    ----------------
          Total current liabilities                                                               377,038             300,569
                                                                                         -----------------    ----------------
 Stockholders' deficit:
       Preferred stock, par value $.0001, per share; authorized 20,000,000 shares,
        none issued and outstanding                                                                     -                   -

       Common stock, par value $.0001, per share; 100,000,000 shares authorized,
        32,194,480 shares issued and outstanding at March 31, 2005 and at December
        31, 2004                                                                                    3,219               3,219
       Additional paid in capital                                                               1,045,401           1,045,401
       Deficit accumulated during the developmental stage                                      (1,408,396)         (1,331,846)
                                                                                         -----------------    ----------------
           Total stockholders' deficit                                                           (359,776)           (283,226)
                                                                                         -----------------    ----------------
          Total liabilities and stockholders' deficit                                    $         17,262     $        17,343
                                                                                         =================    ================
</TABLE>

            The accompanying notes should be read in conjunction with
                           these financial statements


                                        1
<PAGE>
                          INTERNATIONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                             STATEMENT OF OPERATIONS

               For the Three Months Ended March 31, 2005 and 2004

<TABLE>
<CAPTION>


                                                                                                                   Cumulative
                                                                      March 31,              March 31,             Development
                                                                        2005                    2004                  Stage
                                                                 --------------------    -------------------   --------------------
<S>                                                                      <C>                      <C>                  <C>
Expenses:
Research and development (Note 10)                               $             5,208     $           13,992    $           301,163
General and administrative (Note 8)                                           69,900                 83,657                518,529
Compensation expense                                                               -                      -                577,250
Depreciation and amortization                                                  1,442                  1,408                 11,454
                                                                 --------------------    -------------------   --------------------

Total expenses                                                                76,550                 99,057               1,408,396
                                                                 --------------------    -------------------   --------------------

Net loss                                                         $           (76,550)    $          (99,057)   $        (1,408,396)
                                                                 ====================    ===================   ====================

Basic and fully diluted loss per common share                    $              (.00)    $             (.00)
                                                                 ====================    ===================

Weighted average number of shares outstanding                    $        32,194,480     $       26,630,480
                                                                 ====================    ===================
</TABLE>



            The accompanying notes should be read in conjunction with
                           these financial statements

                                       2
<PAGE>

                          INTERNATIONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                       STATEMENT OF STOCKHOLDERS' DEFICIT

                    For the Three Months Ended March 31, 2005
<TABLE>
<CAPTION>
                                                                               Additional                             Total
                                                Common Stock                    Paid-in          Accumulated      Stockholders'
                                          Shares             Amount             Capital            Deficit             Equity
                                     -----------------  -----------------  ----------------  ------------------ --------------------
<S>                                          <C>                  <C>             <C>                <C>               <C>
Balances at January 1, 2005                32,194,480   $          3,219   $     1,045,401   $      (1,331,846)  $         (283,226)

Net loss for the three months ended
March 31, 2005                                      -                  -                 -             (76,550)             (76,550)

                                     -----------------  -----------------  ----------------  ------------------ --------------------

Balances at March 31, 2005                 32,194,480   $          3,219   $     1,045,401        $ (1,408,396)         $  (359,776)
                                     =================  =================  ================  ================== ====================

</TABLE>

            The accompanying notes should be read in conjunction with
                           these financial statements

                                       3
<PAGE>


                          INTERNATIONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                             STATEMENT OF CASH FLOWS

               For the Three Months Ended March 31, 2005 and 2004
<TABLE>
<CAPTION>

                                                                                                                     Cumulative
                                                                           March 31,             March 31,           Development
                                                                            2005                  2004                 Stage
                                                                       ------------------    ------------------   ------------------
<S>                                                                            <C>                   <C>                   <C>
Cash flows from operating activities:
Net loss                                                               $         (76,550)    $         (99,057)         $(1,408,396)
                                                                       ------------------    ------------------   ------------------
Adjustments to reconcile net loss to net cash used in operating
    activities:
        Depreciation and amortization                                              1,442                 1,408               11,454

Changes in assets and liabilities:
        (Increase) decrease in loans receivable                                        -                     -                 (440)
        (Decrease) in bank overdraft                                                   -                     -               (5,000)
        Increase in accounts payable                                               5,623                 1,810               97,504
        Increase (decrease) in accrued expenses                                        -                     -               77,250
        Increase in loans payable-other                                           13,500                -                    21,500
                                                                       ------------------    ------------------   ------------------
Net adjustment to reconcile net income to net cash provided (used) in
operating activities:                                                             20,565                 3,218              202,268
                                                                       ------------------    ------------------   ------------------

Net cash used in operating activities                                            (55,985)              (91,839)          (1,206,128)
                                                                       ------------------    ------------------   ------------------
Cash flows from investing activities:
        Payment made in connection with recapitalization                               -                     -              (15,000)
        Purchase of equipment                                                          -                (3,780)             (21,769)
                                                                       ------------------    ------------------   ------------------
Net cash used in investing activities                                                  -                (3,780)             (36,769)
                                                                       ------------------    ------------------   ------------------
Cash flows from financing activities:
        Issuance of additional shares of common stock                                  -                    35                1,458
        Additional paid in capital arising from issuance of additional
        shares                                                                         -                85,934            1,009,362
        Execution of convertible notes payable                                         -                                     52,800
        Increase in loans payable- officer                                        57,346                14,240              180,784
                                                                       ------------------    ------------------   ------------------
Net cash provided by financing activities                                         57,346               100,209            1,244,404
                                                                       ------------------    ------------------   ------------------

Net increase (decrease) in cash                                                                            590                1,507
                                                                                   1,361
Cash at beginning of period                                                                              2,711                    -
                                                                                     146
                                                                       ------------------    ------------------   ------------------
Cash at end of period                                                  $           1,507     $           3,301    $           1,507
                                                                       ==================    ==================   ==================

Interest paid                                                          $               -     $               -
                                                                       ==================    ==================
Taxes paid                                                             $               -     $               -
                                                                       ==================    ==================
</TABLE>

            The accompanying notes should be read in conjunction with
                           these financial statements

                                       4
 <PAGE>
                          INTERNATIONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1-   INTERIM RESULTS AND BASIS OF PRESENTATION

          The accompanying unaudited financial statements as of March 31, 2005
          and March 31, 2004 and for the three months then ended have been
          prepared in accordance with generally accepted accounting principles
          for interim financial information and with the instructions to Form
          10-QSB. In the opinion of management, the unaudited financial
          statements have been prepared on the same basis as the annual
          financial statements and reflect all adjustments, which include only
          normal recurring adjustments, necessary to present fairly the
          financial position as of March 31, 2005 and March 31, 2004 and the
          results of operations and cash flows for the three months then ended.
          The financial data and other information disclosed in these notes to
          the interim financial statements related to these periods are
          unaudited. The results for the three months ended March 31, 2005, are
          not necessarily indicative of the results to be expected for any
          subsequent quarter or the entire fiscal year. The balance sheet at
          December 31, 2004 has been derived from the audited financial
          statements at that date.

          Certain information and footnote disclosures normally included in
          financial statements prepared in accordance with generally accepted
          accounting principles have been condensed or omitted pursuant to the
          Securities and Exchange Commission's rules and regulations. The
          Company believes, however, that the disclosures in this report are
          adequate to make the information presented not misleading in any
          material respect. The accompanying financial statements should be read
          in conjunction with the audited financial statements of International
          Surfacing, Inc. as of December 31, 2004 and the notes thereto included
          in the Company's report on Form 10-KSB as filed with the Securities
          and Exchange Commission


Note 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

           Description of Business:

          Harmonica Acquisition Corporation, a Delaware corporation ("the
          Company") was formed on March 24, 1999, but did not conduct any
          operating activities nor generate any revenues and was dormant until
          January 2002.

          The Company was founded to develop, manufacture, market and distribute
          rubber horseshoes and related products. The Company's initial target
          markets are the horse racing and equestrian industries. Management
          believes that the product can be utilized throughout the equine world.

          In December 2002, International Surfacing Inc. ("ISI") purchased all
          of the outstanding common stock of the Company for $15,000 in a
          transaction deemed to be a recapitalization. As a part of the overall
          transaction, ISI, exchanged its common shares of the Company for its
          own common shares through an exchange agreement with its shareholder,
          and the Company subsequently changed its name to International
          Surfacing Inc. The Company, as previously restated, accounted for the
          loss on the acquisition as a reduction of paid-in capital; and the
          acquisition as a recapitalization.

                                       5
<PAGE>
                          INTERNATONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)


                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


Note 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

          Description of Business: (continued)

          The Company has 20,000,000 shares of preferred stock authorized with a
          par value of $.0001 and 100,000,000 shares of common stock authorized
          with a par value of $.0001. None of the preferred shares have been
          issued.

          Equipment

          Equipment is recorded at cost, less accumulated depreciation.
          Depreciation expense is provided on the straight-line method, based
          upon estimated useful lives of 3 years. The costs of improvements on
          leased property are capitalized as leasehold improvements and are
          being amortized on the straight-line method over an estimated useful
          life of 3 years. The period of amortization will end in 2005. The
          company anticipates moving into a new facility within the next year.

          It is the Company's policy to account for routine maintenance and
          repairs as a charge to expense when incurred. Major replacements and
          improvements, when incurred, are capitalized. When assets are sold or
          retired, the related cost and accumulated depreciation are removed
          from the accounts and gains or losses from dispositions are credited
          or charged to income.

          Income Taxes

          The Company accounts for income taxes in accordance with the
          "liability method" of accounting for income taxes. Accordingly,
          deferred tax assets and liabilities are determined based on the
          difference between the financial statement and tax basis of assets and
          liabilities, using enacted tax rates in effect for the year in which
          the differences are expected to reverse. Current income taxes are
          based on the respective periods' taxable income for federal and state
          income tax reporting purposes.

          Estimates

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

          Fair Value of Financial Instruments

          Fair value estimates discussed herein are based upon certain market
          assumptions and pertinent information available to management. The
          respective carrying value of certain on-balance-sheet financial
          instruments approximated their fair values. These financial
          instruments included cash and loan receivables. Fair values were
          assumed to approximate carrying values for these financial instruments
          since they are short-term in nature.


                                       6
<PAGE>

                          INTERNATONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


Note 3 -  GOING CONCERN

          At March 31, 2005, the Company reported a stockholders' deficit of
          $359,776. The Company does have significant working capital
          requirements, which to date have been met through private sales of its
          equity. The Company will continue to need substantial infusions of
          capital, which it expects to continue to fund primarily from loans, or
          by a public offering of its equity or debt securities.


Note 4 -  RECENT ACCOUNTING PRONOUNCEMENTS

          In December 2004, the Financial Accounting Standards Board ("FASB")
          issued Statement of Financial Accounting Standards No. 123 (revised
          2004) (`FAS 123R") Share Based Payment. Statement FAS 123R supersedes
          APB Opinion No. 25, and its related implementation guidance. This
          statement establishes standards for the accounting for transactions in
          which an entity exchanges its equity instruments for goods and
          services. It also addresses transactions in which an entity incurs
          liabilities in exchange for goods and services that are based on the
          fair value of the entity's equity instruments or that may be settled
          by the issuance of those equity instruments. FAS 123R focuses
          primarily on accounting for transactions in which an entity obtains
          employee services in share-based payment transactions. The Company
          will be considered a small business issuer for which, the
          implementation of FAS 123R is required as of the beginning of the
          first interim or annual reporting period after December 15, 2005. The
          Company is required to implement FAS 123R beginning in the fiscal year
          beginning January 1, 2006. The Company has implemented FAS 123R
          effective for the year ended December 31, 2004.


Note 5 -  FIXED ASSETS:

          Fixed assets consisted of the following at:
<TABLE>
<CAPTION>

                                                                         March 31,           Dec. 31,
                                                                           2005                2004
                                                                       ---------------    ---------------
<S>                                                                          <C>                <C>
        Office Equipment                                               $        8,980     $        8,980
        Leasehold improvements                                                 12,789             12,789
                                                                       ---------------    ---------------
                                                                               21,769             21,769

        Less accumulated depreciation                                         (11,454)           (10,012)
                                                                       ---------------    ---------------
                                                                       $       10,315     $       11,757
                                                                       ===============    ===============
</TABLE>


          For the three months ended March 31, 2005, depreciation expense
          amounted to $1,442.

                                       7
<PAGE>

                          INTERNATONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)




Note 6 -  RELATED PARTY TRANSACTIONS:

          The Company is currently operating with cash generated from the sale
          of its common stock or from funds loaned by its chief executive
          officer. Since the Company started operations, the chief executive
          officer has loaned the Company $329,142.13 on a non-interest bearing
          basis. The Company has repaid approximately $148,358.62, which has
          resulted in an outstanding balance of $180,783.51 at March 31, 2005.

          As of March 31, 2005, a director of the Company had loaned the Company
          the sum of $18,500 on a non-interest bearing basis, which is due on
          demand. This amount is reported in the accompanying financial
          statements under the caption "loans payable- other".

Note 7 -  COMMITMENTS:

          The Company leases its administrative facilities on a month-to-month
          basis. For the three months ended March 31, 2005 and March 31, 2004
          the Company's rent expense was $7,500 respectively.


Note 8 -  GENERAL AND ADMINISTRATIVE EXPENSES:

          General and administrative expenses were $69,900 in the three months
          ended March 31, 2005. For the three months ended March 31, 2004,
          general and administrative expenses were $83,657. Below is a
          comparative summary of general and administrative expenses:
<TABLE>
<CAPTION>

                                                                        March 31,          March 31,
                                                                          2005                2004
                                                                     ----------------    ---------------
               <S>                                                          <C>                 <C>
          Contracted services                                        $        14,707     $       38,310
          Professional fees                                                   18,200             18,400
          Rent                                                                 7,500              7,500
          Travel                                                               9,800              6,988
          Utilities                                                            1,235              1,697
          Other                                                               18,458             10,762
                                                                     ----------------    ---------------
          Total general and administrative expenses                  $        69,900     $       83,657
                                                                     ================    ===============
</TABLE>



                                       8
<PAGE>

                          INTERNATONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


Note 9 -  LOSS PER SHARE:

          Loss per common share is computed pursuant to SFAS No. 128, "Earnings
          Per Share". Basic loss per share is computed as net loss available to
          common shareholders divided by the weighted average number of common
          shares outstanding for the period. Diluted loss per share reflects the
          potential dilution that could occur from common shares issuable
          through stock options, warrants and convertible preferred stock. For
          the three months ended March 31, 2005 and March 31, 2004, there were
          no items of potential dilution that would impact on the computation of
          diluted loss per share.


Note 10 - RESEARCH AND DEVELOPMENT:

          The Company is currently developing a new type of rubber horseshoe for
          the horse racing and equestrian industries. This product is currently
          in the developmental stage. The Company maintains a small-scale
          manufacturing facility adjacent to its executive offices, where the
          product is manufactured and tested. For the three months ended March
          31, 2005 and March 31, 2004, the Company expended $5,208 and $13,992
          respectively in research and development costs in developing this
          project. The cumulative developmental stage costs for this product
          were $301,163.


Note 11 - STOCK BASED COMPENSATION

          The Company recorded $165,260 in compensation and consulting fees thru
          December 31, 2003. These amounts were not paid and were reflected as
          an accrued liability on prior years financial statements.

          In October 2004, The Company issued 1,000,000 shares to each of its
          two officers. This new issuance represented compensation for both the
          prior compensation referred to above as well as current compensatory
          services rendered to the Company in 2004. The shares issued were
          valued at $.25 per share, which represented the fair market value of
          the common stock. The effect of this issuance was that accrued
          expenses, representing the Company's liability for accrued
          compensatory services at December 31, 2003, were reduced by $88,000
          and compensation expense of $412,000 was recorded in 2004.



Note 12 - PUBLIC OFFERING OF COMMON STOCK:

          The Company has filed a registration statement on Form SB-2 for the
          resale of 7,249,730 shares of common stock presently outstanding and
          held by selling stockholders. The Company is currently awaiting
          approval of the filing by the Security and Exchange Commission.

                                       9
<PAGE>

                          INTERNATIONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

Statements contained in this report, which are not historical facts, may be
considered forward-looking information with respect to plans, projections, or
future performance of the Company as defined under the Private Securities
litigation Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties, which could cause actual results to differ materially
from those projected. The words "anticipate", "believe", "estimate", "expect",
"objective", and "think" or similar expressions used herein are intended to
identify forward-looking statements. The forward-looking statements are based on
the Company's current views and assumptions and involve risks and uncertainties
that include, among other things, the effects of the Company's business, actions
of competitors, changes in laws and regulations, including accounting standards,
employee relations, customer demand, prices of purchased raw material and parts,
domestic economic conditions, including housing starts and changes in consumer
disposable income, and foreign economic conditions, including currency rate
fluctuations. Some or all of the facts are beyond the Company's control.

The following discussion and analysis should be read in conjunction with the
consolidated financial statements and related footnotes, which provide
additional information concerning the Company's financial activities and
condition.

CRITICAL ACCOUNTING POLICIES

Description of Business:

Harmonica Acquisition Corporation, a Delaware corporation ("the Company") was
formed on March 24, 1999, but did not conduct any operating activities nor
generate any revenues and was dormant until January 2002.

The Company was founded to develop, manufacture, market and distribute rubber
horseshoes and related products. The Company's initial target markets are the
horse racing and equestrian industries. Management believes that the product can
be utilized throughout the equine world.

In December 2002, International Surfacing Inc. purchased all of the outstanding
common stock of the Company for $15,000 in a transaction deemed to be a
recapitalization. As a part of the overall transaction, International Surfacing
Inc., exchanged its common shares of the Company for its own common shares
through an exchange agreement with its shareholder, and the Company subsequently
changed its name to International Surfacing Inc. The Company as previously
restated accounted for the loss on the acquisition as a reduction of paid-in
capital; and the acquisition as a recapitalization.

The Company has 20,000,000 shares of preferred stock authorized with a par value
of $.0001 and 100,000,000 shares of common stock authorized with a par value of
$.0001. There are no shares of preferred stock that have been issued.


                                       10
<PAGE>
                          INTERNATIONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

CRITICAL ACCOUNTING POLICIES

Equipment

Equipment is recorded at cost, less accumulated depreciation. Depreciation
expense is provided on the straight-line method, based upon estimated useful
lives of 3 years. The costs of improvements on leased property are capitalized
as leasehold improvements and are being amortized on the straight-line basis
over an estimated useful life of 3 years. The period of amortization will end in
2005. The company anticipates moving into a new facility within the next year.

It is the Company's policy to account for routine maintenance and repairs as a
charge to expense when incurred. Major replacements and improvements when
incurred are capitalized. When assets are sold or retired, the related cost and
accumulated depreciation are removed from the accounts and gains or losses from
dispositions are credited or charged to income.

Income Taxes

The Company follows the asset and liability method of accounting for income
taxes. Deferred tax assets and liabilities are recognized for the estimated
future tax consequences attributable to differences between the financial
statements carrying amounts of existing assets and liabilities and their
respective tax bases. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled. The effect
on deferred tax assets and liabilities of a change in tax rates is recognized as
income in the period that included the enactment date. Deferred tax assets
resulting principally from operating losses have not been recognized.

Estimates

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

Fair Value of Financial Instruments

Fair value estimates discussed herein are based upon certain market assumptions
and pertinent information available to management. The respective carrying value
of certain on-balance-sheet financial instruments approximated their fair
values. These financial instruments included cash and loans receivable. Fair
values were assumed to approximate carrying values for these financial
instruments since they are short-term in nature or they were payable on demand.

Going Concern

At March 31, 2005, we reported a stockholders' deficit of $359,776 and we have
significant capital needs, which to date have been met through private sales of
its equity. The Company will continue to need substantial infusions of capital,
which we expect to continue to fund primarily from private sales of its equity
and loans, or by a public offering of its equity or debt securities.

                                       11
<PAGE>

                          INTERNATONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)


MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)

PLAN OF OPERATIONS

We were founded to develop, manufacture, market and distribute unique rubber
horseshoes and related services. The founder of our company, Samuel Serritella,
recognized an opportunity to develop a product that we believe would take less
of a toll on the legs of horses as compared to conventional iron or aluminum
shoes. Our initial market is the horse racing industry; however, we believe our
product may be used on any type of horse. If the StealthShoe(TM) becomes
established in the horse racing industry, we intend to broaden our market to
include shoes for horses used in an urban setting, such as police horses and
carriage horses, shoes for therapeutic purposes for lame horses and shoes for
the general horse owner market.

After nearly three years of research and development by our founders, we have
tested StealthShoe(TM) product in actual racing conditions. We are moving to
increase our pool of research subjects to study the strength arid wear
characteristics of our product. Through our ongoing research and development, we
expect to continue to improve our products and eventually move into commercial
production. Currently, Sam Serritella and Gary Kouletas head our research and
development. We have set up a small scale manufacturing facility to produce our
product for testing purposes. This includes cutting and milling materials as
well as bonding our products. Through this process we have been able to test
adhesives and compare different aluminums and different steel as well as testing
different rubber samples.

We have entered a manufacturing and marketing agreement with Victory Racing
Plate Company (Victory), a company that has been involved in the horseshoe
industry for 75 years. However, we have not yet reached an agreement with
Victory regarding price and/or profit sharing in connection with our combined
manufacturing and marketing efforts. Together with Victory, we introduced the
Stealthshoe into the horseshoe market at the International Hoof Care Summit in
Cincinnati, Ohio on January 29, 2005. Soon, Victory will begin to market the
Stealthshoe to strategic parts of the country, beginning with the east coast.
These marketing efforts will include video marketing, print ads, attendance at
trade shows and consignment to various distributors. We expect to incur
approximately $250,000 in costs in connection with marketing arid production
(including the purchase of raw materials) during this period. We will utilize
Victory's established distribution channels.

Within the forthcoming year we plan, together with Victory to begin the
manufacturing of the steel substrate model to accommodate the police and
carriage horse market. We expect to incur costs related to marketing and
production (including the purchase of raw materials) of approximately $150,000.

Additionally, after we have introduced our product to the police and carriage
horse market, we will begin to market the shoe to other markets including the
pleasure horse and Amish horse markets. We expect to incur costs related to
marketing arid production (including the purchase of raw materials) of
approximately $150,000.

We expect these costs to be funded by sales of our common stock or debt
financing. Victory will be absorbing start up die costs.

                                       12
<PAGE>

                          INTERNATONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)

PLAN OF OPERATIONS

We are currently developing a new type of rubber horseshoe for the horse racing
and equestrian industries. This product is currently in the developmental stage.
We maintain a small-scale manufacturing facility adjacent to its executive
offices, where the product is manufactured and tested. For the three months
ended March 31, 2005, we expended $5,208 in research and development costs in
developing this project. For the three months ended March 31, 2004 research and
development costs were $13,992. The cumulative developmental stage costs for
this product were $301,163.

We have incurred net losses in the aggregate of $1,408,396 since our inception
though the three months ended March 31, 2005. The net loss for the three months
ended March 31, 2005 was $76,550. The net loss for the three months ended March
31, 2004 was $99,057. The net loss consists of general and administrative
expenses, research and development expenses, compensation expenses and
depreciation and amortization. Below is a comparative summary of general and
administrative expenses:
<TABLE>
<CAPTION>

                                                                    March 31,          March 31,
                                                                      2005                2004
                                                                 ----------------    ---------------
<S>                                                                    <C>                 <C>
         Contracted services                                     $        14,707     $       38,310
         Professional fees                                                18,200             18,400
         Rent                                                              7,500              7,500
         Travel                                                            9,800              6,988
         Utilities                                                         1,235              1,697
         Other                                                            18,458             10,762
                                                                 ----------------    ---------------
         Total general and administrative expenses               $        69,900     $       83,657
                                                                 ================    ===============
</TABLE>


To the extent that we are unable to secure additional external financing, and/or
generate cash revenue from operations, our ability to continue as a going
concern may be adversely affected.

We anticipate losses to continue because we expect to incur additional costs and
expenses related to:

     o    brand development which includes updating the design and engineering
          our horseshoe (estimated to be approximately $50,000);

     o    marketing and other promotional activities which includes attending
          trade shows, creating of pamphlets, displays and videos and media
          advertisements (estimated to be approximately $50,000);

     o    expansion of operations including the updating of office equipment and
          our R&D facility (estimated to be approximately $150,000);

     o    purchase of raw materials such as aluminum, rubber and adhesives
          (estimated to be approximately $500, 000) ; and

     o    monthly operating expenses which includes general operating equipment,
          professional fees and other administrative expenses (estimated to be
          approximately $250,000).

We do not expect to purchase or sell any plant or significant equipment and we
do not expect for there to be a significant change in the number of our
employees during the upcoming year.

                                       13
<PAGE>
                          INTERNATONAL SURFACING, INC.
                         (A DEVELOPMENTAL STAGE COMPANY)


MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)


Liquidity and Capital Resources

On March 31, 2005, we had cash resources of $1,507 with total current
liabilities of $377,038, including normal trade payables. Based on our existing
expenses, we expect to be able to continue our operations for two months and we
will need to raise approximately $1,000,000 in new capital to fund our
operations during the next year. We are currently operating using cash generated
from the sale of our common stock or from funds loaned by our Chief Executive
Officer.

Since we commenced operations in the horseshoe industry, Mr. Serritella, our
Chief Executive Officer, has loaned approximately $329,142.13 to our company to
fund our research and development and working capital. We have repaid Mr.
Serritella approximately $148,358.62, which has resulted in an outstanding
balance of $180,783.51 as of March 31, 2005. These loans are non-interest
bearing and are due on demand. We expect to use the funds generated from future
financings, if any, for the purchase of raw materials, brand development,
expansion of our operations and general monthly expenses. This calculation is
based on its average current monthly expense level of approximately $20,000 per
month. In order to raise the new capital, we may engage in public or private
financing, strategic relationships or other arrangements. We do not have any
commitment from Mr. Serritella to engage in additional financing. There can be
no assurance that such additional funding whether from third parties or Mr.
Serritella will be available on terms acceptable to our Company, or at all. If
adequate funds are not available on acceptable terms, we may be unable to
develop or enhance our products or take advantage of future opportunities either
of which could have a material adverse effect on our business, results of
operations and financial condition.


Item 3. Controls and Procedures

As of the end of the period covered by this 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 Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon
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 the reports that we file or
submit under the Exchange Act is recorded, processed, summarized and reported,
within the time periods specified in the Commission's rules and forms. There was
no change in our internal controls or in other factors that could affect these
controls during our last fiscal quarter that has materially affected, or is
reasonably likely to materially affect, our internal control over financial
reporting.



                                       14
<PAGE>
                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, the Company may be a party to litigation or other legal
proceedings that it considers to be a part of the ordinary course of its
business. The Company is not involved currently in legal proceedings that could
reasonably be expected to have a material adverse effect on its business,
prospects, financial condition or results of operations. The Company may become
involved in material legal proceedings in the future.

Item 2. Changes in Securities.

None.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Submission of Matters to a Vote of Security None Holders.

None

Item 5. Other Information.

None

Item 6. Exhibits

Exhibit Number             Description

31.1           Certification of CEO and CFO Pursuant to Section 302 of the
               Sarbanes Oxley Act of 2002

32.1           Certification of CEO and CFO Pursuant to section 906 of the
               Sarbanes Oxley Act of 2002


                                       15
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed in its
behalf by the undersigned, thereunto duly authorized, on May 21, 2005.

                                    INTERNATIONAL SURFACING, INC.



                                    By: /s/Samuel Serritella
                                        --------------------
                                        Samuel Serritella, CEO and CFO




                                       16