| Nevada                                                         |   | 98-05255034                          |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

----

| PART I – FINANCIAL INFORMATION                                                                      | 2 |
|-----------------------------------------------------------------------------------------------------------|---|
| Item 1.  Financial Statements                                                                        | 2 |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 3 |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                  | 6 |
| Item 4.  Controls and Procedures                                                                     | 6 |
| PART II – OTHER INFORMATION                                                                         | 7 |
| Item 1.  Legal Proceedings                                                                           | 7 |
| Item 2.  Unregistered Sales of Equity Securities                                                     | 7 |
| Item 3.  Defaults Upon Senior Securities                                                             | 7 |
| Item 4.  (Removed and Reserved)                                                                      | 7 |
| Item 5.  Other Information                                                                           | 7 |
| Item 6.  Exhibits                                                                                    | 7 |

----

PART I – FINANCIAL INFORMATION

Item 1.  Financial Statements

| Consolidated Balance Sheet                           | F-1 |
|------------------------------------------------------|-----|
| Consolidated Statement of Operations                 | F-2 |
| Consolidated Statement of Cash Flows                 | F-3 |
| Consolidated Statement of Stockholders’ Equity | F-4 |
| Notes to Consolidated Financial Statements           | F-5 |

----

|                                                        |   | June 30,    |       |   | December 31, |   |
|-------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                        |   | 2010        |       |   | 2009         |   |
|                                                        |   | (Unaudited) |       |   |         |   |
| ASSETS                                                      |   |        |       |   |         |   |
| Current Assets                                              |   |        |       |   |         |   |
| Cash and Cash Equivalents                                   |   | $           | 2,062      |   |         | $      | 279 |   |
| Prepaid Expenses                                            |   |        | -          |   |         |   | - |   |
| Inventory                                                   |   |        | 9,836      |   |         |   | 9,836 |   |
| Total Current Assets                                        |   |        | 11,898     |   |         |   | 10,115 |   |
| Property and Equipment                                      |   |        |       |   |         |   |   |   |
| Fixed Assets, Net of Accumulated Depreciation               |   |        | 37,063     |   |         |   | 41,045 |   |
| Other Assets                                                |   |        |       |   |         |   |   |   |
| Patents                                                     |   |        | 121,610    |   |         |   | 121,610 |   |
|                                                        |   |        |       |   |         |   |   |   |
| TOTAL ASSETS                                                |   | $           | 170,571    |   |         | $      | 172,770 |   |
|                                                        |   |        |       |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)              |   |        |       |   |         |   |   |   |
| Current Liabilities                                         |   |        |       |   |         |   |   |   |
| Accounts Payable                                            |   |        | 1,070      |   |         |   | 292 |   |
| Notes Payable                                               |   |        | 46,787     |   |         |   | 28,000 |   |
| Subscriptions Received                                      |   |        | 291,291    |   |         |   | 291,291 |   |
| Stockholders’ Loans                                   |   |        | 86,237     |   |         |   | 91,714 |   |
| Total Current Liabilities                                   |   |        | 425,385    |   |         |   | 411,297 |   |
|                                                        |   |        |       |   |         |   |   |   |
| Stockholders' Equity (Deficit)                              |   |        |       |   |         |   |   |   |
| Common Stock, no par value; stated value $0.001, authorized |   |        |       |   |         |   |   |   |
| 375,000,000 shares, issued and outstanding                  |   |        |       |   |         |   |   |   |
| 55,234,063 as at June 30, 2010,                             |   |        |       |   |         |   |   |   |
| 55,234,063 as at December 31, 2009                          |   |        | 55,234     |   |         |   | 55,234 |   |
| Additional Paid-In Capital                                  |   |        | 948,974    |   |         |   | 948,974 |   |
| Accumulated Other Comprehensive Income                      |   |        | 30,177     |   |         |   | 30,166 |   |
| Accumulated Deficit During the Development Stage            |   |        | (1,289,199 | )      |         |   | (1,272,901 | ) |
|                                                        |   |        |       |   |         |   |   |   |
| TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                        |   |        | (254,814   | )      |         |   | (238,527 | ) |
|                                                        |   |        |       |   |         |   |   |   |
| TOTAL LIABILITIES AND STOCKOLDERS' EQUITY                   |   | $           | 170,571    |   |         | $      | 172,770 |   |

----

|                                                          |   |                       |       |   |                     |   |       | `             |   |   |       |   |   | For the Period |       |
|---------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|------------|---------------|--------|--------|------------|--------|--------|----------------|------------|
|                                                          |   |                       |       |   |                     |   |       |          |   |   |       |   |   | of Inception   |       |
|                                                          |   |                       |       |   |                     |   |       |          |   |   |       |   |   | from Nov. 16,  |       |
|                                                          |   | For the three months ended |       |   | For the six months ended |   |       | 1999, through |   |
|                                                          |   | June 30                    |       |   | June 30                  |   |       | June 30,      |   |
|                                                          |   | 2010                       |       |   | 2009                     |   |       | 2010          |   |   | 2009       |   |   | 2010           |       |
| Revenue                                                       |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |
|    Sales                                            |   | $                          | -          |   |                     | $      | -          |          |   | $      | -          |   |   | $              | -          |   |   | $ | 5,113 |   |
| Selling, General and Administrative Expenses:                 |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |   |   |   |   |   |
| Marketing                                                     |   |                       | -          |   |                     |   | -          |          |   |   | -          |   |   |           | -          |   |   |   | 40,345 |   |
| Professional Fees                                             |   |                       | 12,191     |   |                     |   | 15,523     |          |   |   | 12,191     |   |   |           | 21,700     |   |   |   | 423,201 |   |
| Exploration Costs and Expenses                                |   |                       | -          |   |                     |   | -          |          |   |   | -          |   |   |           | -          |   |   |   | 22,219 |   |
| Occupancy Costs                                               |   |                       | -          |   |                     |   | 4,200      |          |   |   | -          |   |   |           | 12,718     |   |   |   | 44,839 |   |
| Consulting                                                    |   |                       | -          |   |                     |   | -          |          |   |   | -          |   |   |           | -          |   |   |   | 430,698 |   |
| Depreciation                                                  |   |                       | 1,991      |   |                     |   | 2,060      |          |   |   | 3,982      |   |   |           | 4,120      |   |   |   | 44,624 |   |
| Impairment of mineral rights                                  |   |                       | -          |   |                     |   | -          |          |   |   | -          |   |   |           | -          |   |   |   | 3,600 |   |
| Stock Transfer Fees                                           |   |                       | -          |   |                     |   | -          |          |   |   | -          |   |   |           | -          |   |   |   | 11,018 |   |
| Administration                                                |   |                       | -          |   |                     |   | 8,422      |          |   |   | -          |   |   |           | 13,524     |   |   |   | 53,564 |   |
| Other Selling, General and Administrative Expenses            |   |                       | 55         |   |                     |   | 2,180      |          |   |   | 124        |   |   |           | 8,218      |   |   |   | 220,143 |   |
| Total Selling, General and Administrative  Expenses |   |                       | 14,237     |   |                     |   | 32,385     |          |   |   | 16,297     |   |   |           | 60,280     |   |   |   | 1,294,251 |   |
|                                                          |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |   |   |   |   |   |
| Net Operating Loss                                            |   |                       | (14,237    | )      |                     |   | (32,385    | )             |   |   | (16,297    | )      |   |           | (60,280    | ) |   |   | (1,289,138 | ) |
|                                                          |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |   |   |   |   |   |
| Other Income (Expense)                                        |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |   |   |   |   |   |
| Interest Income                                               |   |                       | -          |   |                     |   | -          |          |   |   | -          |   |   |           | 252        |   |   |   |   |   |
| Other Income                                                  |   |                       | 777        |   |                     |   | -          |          |   |   | 777        |   |   |           | -          |   |   |   | 777 |   |
| Interest Expense                                              |   |                       | (478       | )      |                     |   | (476       | )             |   |   | (778       | )      |   |           | (678       | ) |   |   | (838 | ) |
|                                                          |   |                       | (476       | )      |                     |   | 280        |          |   |   | 2,553      |   |   |           | 7,598      |   |   |   | 30,352 |   |
|                                                          |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |   |   |   |   |   |
| Net Loss                                                      |   |                       | (13,888    | )      |                     |   | (32,861    | )             |   |   | (16,298    | )      |   |           | (60,706    | ) |   |   | (1,289,199 | ) |
| Currency Translation Adjustment                               |   |                       | 12         |   |                     |   | -          |          |   |   | 11         |   |   |           | 2,979      |   |   |   | 30,177 |   |
|                                                          |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |   |   |   |   |   |
| Comprehensive Loss                                            |   | $                          | (13,876    | )      |                     | $      | (32,861    | )             |   | $      | (16,287    | )      |   | $              | (57,727    | ) |   | $ | (1,259,022 | ) |
|                                                          |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |   |   |   |   |   |
|  Loss Per Common Share, Basic and Diluted                |   | $                          | (0.000     | )      |                     | $      | (0.000     | )             |   | $      | (0.000     | )      |   | $              | (0.001     | ) |   |   |   |   |
|                                                          |   |                       |       |   |                     |   |       |          |   |   |       |   |   |           |       |   |   |   |   |   |
| Weighted Average Shares Outstanding, Basic and Diluted:       |   |                       | 55,237,063 |   |                     |   | 55,237,063 |          |   |   | 55,237,063 |   |   |           | 55,237,603 |   |   |   |   |   |

----

|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   | For the Period |    |
|-----------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|---------|---------------|--------|--------|---------|--------|--------|----------------|---------|
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   | of Inception   |    |
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   | Nov. 16,       |    |
|                                                      |   | For the three months ended |    |   | For the six months ended |   |    | 1999, through |   |
|                                                      |   | June 30,                   |    |   | June 30,                 |   |    | June 30,      |   |
|                                                      |   | 2010                       |    |   | 2009                     |   |    | 2010          |   |   | 2009    |   |   | 2010           |    |
|  Cash Flows from Operating Activities:               |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |
| Net Operating Income (Loss)                               |   | $                          | (13,888 | )      |                     | $      | (32,861 | )             |   | $      | (57,727 | )      |   | $              | (57,727 | ) |   | $ | (1,289,119 | ) |
| Adjustments to Reconcile Net Loss to                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
| Net Cash Used by Operating Activities:                    |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
| Non-Cash Depreciation                                     |   |                       | 1,992   |   |                     |   | 2,060   |          |   |   | 3,982   |   |   |           | 4,120   |   |   |   | 44,624 |   |
| Subscriptions Received                                    |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           | 3,500   |   |   |   | 291,291 |   |
| Non Cash Common Stock for Services                        |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   | 373,979 |   |
| Consolidation of Subsidiary Paid-In Capital               |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   | (28,994 | ) |
| Change in Operating Assets and Liabilities:               |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
| Accounts Payable, Accrued Interest                        |   |                       | 428     |   |                     |   | 1,976   |          |   |   | 778     |   |   |           | 1,664   |   |   |   | 1,070 |   |
| Inventory                                                 |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           | (2,087  | ) |   |   | (9,836 | ) |
|  Net Cash (Used by) Operating  Activities  |   |                       | (11,468 | )      |                     |   | (28,825 | )             |   |   | (11,538 | )      |   |           | (50,530 | ) |   |   | (617,065 | ) |
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
|  Cash Flows from Investing Activities:               |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
|  Acquisition of Patents                              |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   | (121,610 | ) |
|  Disposal (Acquisition) of Equipment                 |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   | (63,904 | ) |
|  Acquisition of Water Vessels                        |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   | (15,722 | ) |
|  Net Cash (Used by) Investing Activities             |   |                       | -       |   |                     |   | -       |          |   |   | -       |   |   |           | -       |   |   |   | (201,236 | ) |
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
|  Cash Flows from Financing Activities:               |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
| Common Stock Issued for Cash                              |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   | 564,768 |   |
| Proceeds (Repayment) of Stockholders’ Loans         |   |                       | (5,477  | )      |                     |   | 14,200  |          |   |   | (5,477  | )      |   |           | 14,200  |   |   |   | 86,237 |   |
| Proceeds (Repayment) of Notes Payable                     |   |                       | 18,786  |   |                     |   | 1,500   |          |   |   | 18,786  |   |   |           | 1,500   |   |   |   | 46,786 |   |
| Other Contributed Capital                                 |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   | 92,395 |   |
|  Net Cash (Used by) Provided by Financing Activities |   |                       | 13,309  |   |                     |   | 15,700  |          |   |   | 13,309  |   |   |           | 15,700  |   |   |   | 790,186 |   |
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
|  Effect of exchange rates on cash                    |   |                       | 12      |   |                     |   |    |          |   |   | 12      |   |   |           |    |   |   |   | 30,177 |   |
|  Net increase (decrease) in cash                     |   |                       | 1,853   |   |                     |   | (13,125 | )             |   |   | 1,783   |   |   |           | (34,830 | ) |   |   | 2,062 |   |
|  Cash, beginning of the period                       |   |                       | 209     |   |                     |   | 14,704  |          |   |   | 279     |   |   |           | 36,409  |   |   |   | - |   |
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
|  Cash, end of the period                             |   | $                          | 2,062   |   |                     | $      | 1,579   |          |   | $      | 2,062   |   |   | $              | 1,579   |   |   | $ | 2,062 |   |
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
|  Supplemental cash flow disclosure:                  |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |
|  Interest paid                                       |   | $                          | -       |   |                     | $      | 476     |          |   | $      | -       |   |   | $              | 678     |   |   | $ | 2,471 |   |
|  Taxes paid                                          |   | $                          | -       |   |                     | $      | -       |          |   | $      | -       |   |   | $              | -       |   |   | $ | - |   |
|                                                      |   |                       |    |   |                     |   |    |          |   |   |    |   |   |           |    |   |   |   |   |   |

----

|                                              |   |         |        |   |       |   |     |       |   |   | Accumulated |   |   | Accumulated   |   |   |      |     |
|---------------------------------------------------|--------|--------------|-------------|--------|------------|--------|----------|------------|--------|--------|-------------|--------|--------|---------------|--------|--------|-----------|----------|
|                                              |   |         |        |   |       |   |     |       |   |   | Other       |   |   | Deficit       |   |   | Total     |     |
|                                              |   | Common Stock |        |   | Additional |   |     | Comprehen- |   |   | during the  |   |   | Shareholders' |   |
|                                              |   | Number of    |        |   |       |   |     | Paid-In    |   |   | sive        |   |   | Development   |   |   | Equity    |     |
|                                              |   | Shares       |        |   | Capital    |   |     | Capital    |   |   | Income      |   |   | Stage         |   |   | (Deficit) |     |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |
| Inception, November 16, 1999                      |   |         | -           |   |       | $      | -        |       |   | $      | -           |   |   |          |   |   | $         | -        |   |   | $ | - |   |
| Subscriptions received during period              |   |         |        |   |       |   | 20,379   |       |   |   |        |   |   |          |   |   |      |     |   |   |   | 20,379 |   |
| Balances, December 31, 1999                       |   |         | -           |   |       |   | 20,379   |       |   |   |        |   |   |          |   |   |      | -        |   |   |   | 20,379 |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Cash contributed from Global Tech                 |   |         |        |   |       |   |     |       |   |   | 232         |   |   |          |   |   |      |     |   |   |   | 232 |   |
| Subscriptions received during year                |   |         |        |   |       |   | 115,116  |       |   |   |        |   |   |          |   |   |      |     |   |   |   | 115,116 |   |
| Net loss for year ended Dec. 31, 2000             |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      | (2,672   | ) |   |   | (2,672 | ) |
| Balances, December 31, 2000                       |   |         | -           |   |       | $      | 135,495  |       |   | $      | 232         |   |   |          |   |   | $         | (2,672   | ) |   | $ | 133,055 |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Subscriptions received during year                |   |         |        |   |       |   | 1,888    |       |   |   |        |   |   |          |   |   |      |     |   |   |   | 1,888 |   |
| Net loss for year ended Dec. 31, 2001             |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      | (5,126   | ) |   |   | (5,126 | ) |
| Balances, December 31, 2001                       |   |         | -           |   |       | $      | 137,383  |       |   | $      | 232         |   |   |          |   |   | $         | (7,798   | ) |   | $ | 129,817 |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Subscriptions received during year                |   |         |        |   |       |   | 7,630    |       |   |   |        |   |   |          |   |   |      |     |   |   |   | 7,630 |   |
| Net loss for year ended Dec. 31, 2002             |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      | (11,544  | ) |   |   | (11,544 | ) |
| Balances, December 31, 2002                       |   |         | -           |   |       | $      | 145,013  |       |   | $      | 232         |   |   |          |   |   | $         | (19,342  | ) |   | $ | 125,903 |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Subscriptions received during year                |   |         |        |   |       |   | 1,428    |       |   |   |        |   |   |          |   |   |      |     |   |   |   | 1,428 |   |
| Net loss for year ended Dec. 31, 2003             |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      | (6,149   | ) |   |   | (6,149 | ) |
| Balances, December 31, 2003                       |   |         | -           |   |       | $      | 146,441  |       |   | $      | 232         |   |   |          |   |   | $         | (25,491  | ) |   | $ | 121,182 |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Subscriptions received during year                |   |         |        |   |       |   | 1,613    |       |   |   |        |   |   |          |   |   |      |     |   |   |   | 1,613 |   |
| Net loss for year ended Dec. 31, 2004             |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      | (8,461   | ) |   |   | (8,461 | ) |
| Balances, December 31, 2004                       |   |         | -           |   |       | $      | 148,054  |       |   | $      | 232         |   |   |          |   |   | $         | (33,952  | ) |   | $ | 114,334 |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Net loss for year ended Dec. 31, 2005             |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      | (4,395   | ) |   |   | (4,395 | ) |
| Balances, December 31, 2005                       |   |         | -           |   |       | $      | 148,054  |       |   | $      | 232         |   |   |          |   |   | $         | (38,347  | ) |   | $ | 109,939 |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Net loss for year ended Dec. 31, 2006             |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      | (4,330   | ) |   |   | (4,330 | ) |
| Balances, December 31, 2006                       |   |         | -           |   |       | $      | 148,054  |       |   | $      | 232         |   |   |          |   |   | $         | (42,677  | ) |   | $ | 105,609 |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Capital revalued Sep. 28, 2007                    |   |         |        |   |       |   | (148,054 | )          |   |   |        |   |   |          |   |   |      |     |   |   |   | (148,054 | ) |
| Balances September 28, 2007                       |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
|     before stock issue        |   |         | -           |   |       | $      | -        |       |   | $      | 232         |   |   |          |   |   | $         | (42,677  | ) |   | $ | (42,445 | ) |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Balances September 28, 2007                       |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
|     before stock issue        |   |         | -           |   |       | $      | -        |       |   | $      | 232         |   |   |          |   |   | $         | (42,677  | ) |   | $ | (42,445 | ) |
| Common stock issued for cash @                    |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
|    $0.0026 per share Sep. 28, 2007 |   |         | 10,808,694  |   |       |   | 10,809   |       |   |   | 17,569      |   |   |          |   |   |      |     |   |   |   | 28,378 |   |
| Common stock issued for cash @                    |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
|    $0.036 per share Sep. 28, 2007  |   |         | 9,017,010   |   |       |   | 9,017    |       |   |   | 313,268     |   |   |          |   |   |      |     |   |   |   | 322,285 |   |
| Common stock issued for cash @                    |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
|    $0.25 per share Sep. 28, 2007   |   |         | 776,600     |   |       |   | 776      |       |   |   | 193,329     |   |   |          |   |   |      |     |   |   |   | 194,105 |   |
| Common stock issued for cash @                    |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
|    $0.50 per share Sep. 28, 2007   |   |         | 40,000      |   |       |   | 40       |       |   |   | 19,960      |   |   |          |   |   |      |     |   |   |   | 20,000 |   |
| Common stock isued for services @                 |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
|   $0.0545 per share Sep. 28, 2007       |   |         | 6,857,696   |   |       |   | 6,858    |       |   |   | 366,886     |   |   |          |   |   |      |     |   |   |   | 373,744 |   |
| Net loss for year ended Dec. 31, 2007             |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      | (626,948 | ) |   |   | (626,948 | ) |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Balances, December 31, 2007                       |   |         | 27,500,000  |   |       | $      | 27,500   |       |   | $      | 911,244     |   |   |          |   |   | $         | (669,625 | ) |   | $ | 269,119 |   |
| Merger: Purio Environmental                       |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Water Source, Inc. (PEWS) and                     |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
| Purio, Inc. February 13, 2008:                    |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |
|    Consolidate Purio Inc.          |   |         |        |   |       |   |     |       |   |   | 78,849      |   |   |          | 4,984  |   |      |     | (93,809 | ) |   |   | (9,976 | ) |
|    Merger adjustments              |   |         |        |   |       |   |     |       |   |   | (28,994     | )      |   |          |   |   |      |     |   |   |   |   | (28,994 | ) |
|    Retire PEWS stock               |   |         | (27,500,000 | )      |       |   | (27,500  | )          |   |   | 27,500      |   |   |          |   |   |      |     |   |   |   |   |   |   |
|    Issue Purio Stock               |   |         | 27,500,000  |   |       |   | 27,500   |       |   |   | (27,500     | )      |   |          |   |   |      |     |   |   |   |   |   |   |
|    Issue Purio Stock               |   |         | 27,737,603  |   |       |   | 27,734   |       |   |   | (27,734     | )      |   |          |   |   |      |     |   |   |   |   |   |   |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |   |
| Net loss for year ended Dec. 31, 2008             |   |         |        |   |       |   |     |       |   |   |        |   |   |          | 22,422 |   |      |     | (354,876 | ) |   |   | (332,454 | ) |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |   |
| Balances, December 31, 2008                       |   |         | 55,237,603  |   |       | $      | 55,234   |       |   | $      | 933,365     |   |   | $             | 27,406 |   |      | $        | (1,118,310 | ) |   | $ | (102,305 | ) |
| Other contributed capital                         |   |         |        |   |       |   |     |       |   |   | 15,609      |   |   |          |   |   |      |     |   |   |   |   | 15,609 |   |
| Net loss for year ended Dec. 31, 2009             |   |         |        |   |       |   |     |       |   |   |        |   |   |          | 2,760  |   |      |     | (154,591 | ) |   |   | (151,831 | ) |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |   |
| Balances, September 30, 2009                      |   |         | 55,237,603  |   |       | $      | 55,234   |       |   | $      | 948,974     |   |   | $             | 30,166 |   |      | $        | (1,272,901 | ) |   | $ | (238,527 | ) |
| Net loss for 6 months ended June 30, 2010         |   |         |        |   |       |   |     |       |   |   |        |   |   |          | 11     |   |      |     | (16,298 | ) |   |   | (16,287 | ) |
|                                              |   |         |        |   |       |   |     |       |   |   |        |   |   |          |   |   |      |     |   |   |   |   |   |   |
| Balances, June 30, 2010                           |   |         | 55,237,603  |   |       | $      | 55,234   |       |   | $      | 948,974     |   |   | $             | 30,177 |   |      | $        | (1,289,199 | ) |   | $ | (254,814 | ) |

----

----

|                                                            |   | 2010   |        |   | 2009   |   |
|-----------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Numerator:                                                      |   |   |        |   |   |   |
| Basic and diluted net loss per share:                           |   | $      | (16,287     | )      |   | $      | (57,727 | ) |
| Net Loss                                                        |   |   |        |   |   |   |   |   |
| Denominator:                                                    |   |   |        |   |   |   |   |   |
| Basic and diluted weighted average number of shares outstanding |   |   | 55,2347,603 |   |   |   | 55,237,603 |   |
| Basic and Diluted Net Loss Per Share:                           |   | $      | (0.000      | )      |   | $      | (0.001 | ) |

----

| -   | Level 1:  Quoted prices in active markets for identical assets or liabilities |
|---------------|-----------------------------------------------------------------------------------------|

| -   | Level 2:  Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Level 3:  Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Cash:  Level One measurement based on bank reporting.  |
|---------------|-----------------------------------------------------------------------|

| -   | Subscriptions Received:  Level 2 based on contract.  |
|---------------|---------------------------------------------------------------------|

| -   | Loans from Officers:  Level 3 based on promissory notes.  |
|---------------|--------------------------------------------------------------------------|

| -   | Notes Payable:  Level 2 based on observable inputs. |
|---------------|---------------------------------------------------------------|

----

----

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

|                                         | Three Months Ended June 30, 2010($)(Unaudited) | Three Months Ended June 30, 2009($)(Unaudited) | Six Months Ended June 30, 2010($)(Unaudited) | Six Months Ended June 30, 2009($)(Unaudited) | Period fromNovember 16, 1999(Date of Inception) toJune, 2010($)(Unaudited) |
|----------------------------------------------|------------------------------------------------|------------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------------------------------------|
| Revenue                                      | -                                              | -                                              | -                                            | -                                            | 5,113                                                                      |
| Selling, General and Administrative Expenses | 14,237                                         | 32,385                                         | 16,297                                       | 60,280                                       | 1,294,251                                                                  |
| Net Loss                                     | 13,888                                         | 32,861                                         | 16,298                                       | 60,706                                       | 1,289,199                                                                  |

----

----

| Description                                             | Potential Completion Date | Estimated Expenses($) |
|---------------------------------------------------------|---------------------------|-----------------------|
| Construction or purchase of purification equipment      | 12 months                 | 500,000               |
| Marketing expenses                                      | 12 months                 | 300,000               |
| Research and development                                | 12 months                 | 50,000                |
| Professional fees (legal, accounting and auditing fees) | 12 months                 | 100,000               |
| Other general and administrative expenses               | 12 months                 | 50,000                |
| Total                                                   |                      | 1,000,000             |

----

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Item 4.  Controls and Procedures

----

PART II – OTHER INFORMATION

Item 1.  Legal Proceedings

Item 2.  Unregistered Sales of Equity Securities

Item 3.  Defaults Upon Senior Securities

Item 4.  (Removed and Reserved)

Item 5.  Other Information

Item 6.  Exhibits

| Exhibit Number | Exhibit Description                                                                                                                                                             |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1           | Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32.1           | Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                        |

----

|  Date: August 9, 2010 | Purio Inc. |
|----------------------------|------------|
|                       |       |   |
|                       | By:        | /s/ Daryl English |
|                       |       | Daryl English  |
|                       |       | President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Secretary, Treasurer and Director |