UNITED STATES

SECURITIES AND
EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-QSB



[X] QUARTERLY REPORT
UNDER SECTION 13 OR 15(d)

OF THE SECURITIES
EXCHANGE ACT OF 1934



For the quarterly
period ended: September 30, 2004



[ ] TRANSITION REPORT
PURSUANT TO SECTION 13 OR

15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934



Commission file number
333-84568



DOGS INTERNATIONAL

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



|Nevada                                   | 90-0006843            
|---------------------------------------- | ----------------------
|(State or other jurisdiction of          | (I.R.S.
Employer      
|incorporation or organization)           | Identification Number)
|                                        
|408 S. Daytona                          
|Flagler Beach, Florida                   | 32136                 
|(Address of Principal Executive
Offices) | (Zip Code)            



(386) 439-4006

(Issuer's telephone
number, including area code)



Check whether the
registrant (1) filed all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the last 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 ____



The number of shares
of Common Stock, $0.001 par value, outstanding on September 30, 2004, was
20,100,000 shares.



Transitional Small
Business Disclosure Format (check one):



Yes   No X



---



ITEM 1. FINANCIAL
STATEMENTS



DOGS INTERNATIONAL AND
SUBSIDIARY

(a Nevada Corporation)

CONSOLIDATED BALANCE
SHEET

(unaudited)



|                                                                                                            | September 30,
		2004 | December 31,
		2003
|----------------------------------------------------------------------------------------------------------- | -------------------- | -------------------
|Assets                                                                                                      |                      |                    
|                                                                                                            |                      |                    
|Current assets:                                                                                             |                      |                    
|Cash                                                                                                        | $ 43,614             | $ -                
|Total current assets                                                                                        | 43,614               | -                  
|                                                                                                            |                      |                    
|Fixed assets, net                                                                                           | 473,063              | 491,116            
|Total fixed assets                                                                                          | 473,063              | 491,116            
|                                                                                                            |                      |                    
|Other assets:                                                                                               |                      |                    
|Goodwill                                                                                                    | 18,269               | 18,269             
|Total other assets                                                                                          | 18,269               | 18,269             
|Total assets                                                                                                | $ 534,946            | $ 509,385          
|                                                                                                            |                      |                    
|Liabilities and Stockholders'
		Equity                                                                      |                      |                    
|                                                                                                            |                      |                    
|Current liabilities:                                                                                        |                      |                    
|Bank Overdraft                                                                                              | $ -                  | $ 424              
|Accrued expenses                                                                                            | 7,199                | 4,633              
|Accrued expenses - related
		party                                                                          | 4,500                | -                  
|Notes payable                                                                                               | 6,000                | 6,279              
|Total current liabilities                                                                                   | 17,699               | 11,336             
|                                                                                                            |                      |                    
|Long term liabilities:                                                                                      |                      |                    
|Installment loans                                                                                           | 10,665               | 13,872             
|Mortgage payable                                                                                            | 175,177              | 173,973            
|Mortgage payable - related
		party                                                                          | 200,000              | 200,000            
|Interest payable - related
		party                                                                          | 16,750               | 7,750              
|Total long term liabilities                                                                                 | 402,593              | 395,595            
|                                                                                                            |                      |                    
|Stockholders' equity:                                                                                       |                      |                    
|Preferred stock, $0.001 par
		value 20,000,000 shares authorized, 28,334 shares issued and outstanding      | 28                   | 28                 
|Common stock, $0.001 par
		value, 100,000,000 shares authorized, 20,100,000 shares issued and
		outstanding | 20,100               | 20,100             
|Stock subscription payable                                                                                  | 130,965              | -                  
|Additional paid-in capital                                                                                  | 207,372              | 207,372            
|Accumulated (deficit)                                                                                       | (243,811)            | (125,046)          
|                                                                                                            | 114,655              | 102,454            
|                                                                                                            |                      |                    
|                                                                                                            | $ 534,946            | $ 509,385          



The accompanying notes
are an integral part of these financial statements

1

---



DOGS INTERNATIONAL AND
SUBSIDIARY

(a Nevada Corporation)

CONSOLIDATED STATEMENT
OF OPERATIONS

(unaudited)



|                                                                                 | Three months
		ended
		September 30, | Nine months
		ended
		September 30,
|-------------------------------------------------------------------------------- | ------------------------------------ | -----------------------------------
|                                                                                 | 2004                                 | 2003                               
|Revenue                                                                          | $ 26,391                             | $ 36,866                           
|Cost of sales                                                                    | 19,858                               | -                                  
|                                                                                 |                                      |                                    
|Gross profit                                                                     | 6,534                                | 36,866                             
|                                                                                 |                                      |                                    
|Expenses:                                                                        |                                      |                                    
|General and administrative
		expenses                                            | 44,678                               | 85,181                             
|General and administrative
		expenses - related party                            | 1,500                                | -                                  
|Depreciation                                                                     | 5,777                                | -                                  
|Consulting fees                                                                  | 1,050                                | -                                  
|Consulting fees - related
		party                                                | -                                    | -                                  
|Interest                                                                         | 4,608                                | 4,687                              
|Interest - related party                                                         | 3,000                                | 4,750                              
|Total expenses                                                                   | 60,613                               | 94,618                             
|                                                                                 |                                      |                                    
|Net (loss)                                                                       | $ (54,079)                           | $ (57,752)                         
|                                                                                 |                                      |                                    
|Weighted average number of
		common shares outstanding - basic and fully diluted | 20,100,000                           | 20,100,000                         
|                                                                                 |                                      |                                    
|Net (loss) per share - basic
		and fully diluted                                 | $ (0.00)                             | $ (0.00)                           



The accompanying notes
are an integral part of these financial statements



2

---

DOGS INTERNATIONAL AND
SUBSIDIARY

(a Nevada Corporation)

CONSOLIDATED STATEMENT
OF CASH FLOWS

(unaudited)



|                                            | Nine months
		ended
		September 30,
|------------------------------------------- | -----------------------------------
|                                            | 2004                               
|                                            |                                    
|Cash flows from operating
		activities      |                                    
|Net (loss)                                  | $ (105,725)                        
|Depreciation                                | 21,852                             
|Adjustments to reconcile net
		(loss) to    |                                    
|net cash (used) by operating
		activities:  |                                    
|(Decrease) in cash overdraft                | (721)                              
|Increase in accounts payable                | -                                  
|Increase in accrued
		liabilities           | 7,067                              
|Net cash (used) by operating
		activities   | (77,527)                           
|                                            |                                    
|Cash flows from investing
		activities      |                                    
|Assets acquired                             | -                                  
|Goodwill purchased                          | -                                  
|Net cash (used) by investing
		activities   | -                                  
|                                            |                                    
|Cash flows from financing
		activities      |                                    
|Due from officer - related
		party          | (279)                              
|Installment loans payable                   | (3,207)                            
|Mortgages payable                           | (3,036)                            
|Mortgages payable - related
		party         | -                                  
|Interest Payable - related
		party          | 9,000                              
|Prior period depreciation
		adjustment      | (12,583)                           
|Common stock                                | -                                  
|Preferred Stock                             | -                                  
|Subscriptions payable                       | 130,965                            
|Additional paid in capital                  | -                                  
|Net cash provided by
		financing activities | 121,140                            
|                                            |                                    
|Net increase (decrease) in
		cash           | 43,614                             
|Cash - beginning                            | -                                  
|Cash - ending                               | $ 43,614                           
|                                            |                                    
|Supplemental disclosures:                   |                                    
|Interest paid                               | $ 14,285                           
|Income taxes paid                           | $ -                                



The accompanying notes
are an integral part of these financial statements



3

---

DOGS INTERNATIONAL AND
SUBSIDIARY

(a Nevada Corporation)

Notes to Financial
Statements



Note 1 - Basis of Presentation



The consolidated interim financial
statements included herein, presented in accordance with United States generally
accepted accounting principles and stated in US dollars, have been prepared by
the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. 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 such
rules and regulations, although the Company believes that the disclosures are
adequate to make the information presented not misleading.



These statements reflect all
adjustments, consisting of normal recurring adjustments, which, in the opinion
of management, are necessary for fair presentation of the information contained
therein. It is suggested that these consolidated interim financial statements be
read in conjunction with the financial statements of the Company for the year
ended December 31, 2003 and notes thereto included in the Company's 10-KSB
annual report. The Company follows the same accounting policies in the
preparation of interim reports.



Results of operations for the interim
periods are not indicative of annual results.



Note 2 - Going concern



The accompanying financial statements
have been prepared using the generally accepted accounting principles applicable
to a going concern, which contemplates the realization of assets and liquidation
of liabilities in the normal course of business. For us to continue as a going
concern we must seek additional sources of capital, and we must attain future
profitable operations. We are currently initiating our business plan and are in
the process of raising additional capital. The accompanying financial statements
do not include any adjustments that might be necessary should we be unable to
continue as a going concern.



Note 3 - Goodwill



Management periodically reviews the
carrying value of acquired intangible assets to determine whether impairment may
exist. The Company considers relevant cash flow and profitability information,
including estimated future operating results in assessing whether the carrying
value of the intangible can be recovered. If the Company determines that the
carrying value will not be recovered from undiscounted future cash flows of the
acquired business, the Company considers such carrying value as impaired and
reduces them by a charge to operations in the amount of the impairment. As of
September 30, 2004, management had determined impairment did not exist.



4

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DOGS INTERNATIONAL AND
SUBSIDIARY

(a Nevada Corporation)

Notes to Financial
Statements

Note 4 - Fixed assets



The Company records fixed assets at
cost and computes depreciation using the straight-line method. The Company's
fixed assets consist of the following:



|                              | September 30,
		2004
|----------------------------- | --------------------
|Land                          | $ 137,000           
|Vehicles                      | 95,256              
|Furniture and fixtures        | 8,253               
|Operating equipment           | 11,650              
|Buildings and improvements    | 259,738             
|                              |                     
|Total fixed assets            | 511,898             
|Less accumulated depreciation | (38,835)            
|                              |                     
|Total                         | $ 473,063           



The Company recorded depreciation
expense of $21,852 during the nine months ended September 30, 2004



Note 5 - Long Term Liabilities



The Company has a 5-year note payable
in the principal amount of $200,000 with an interest rate of 6% to the Company's
President pursuant to the Real Estate Acquisition Contract for the purchase of
the Bed & Biscuit Inn facility in Flagler Beach. During the nine months ended
September 30, 2004, the Company had accrued interest payable of $16,750.



The Company has a first mortgage
payable on the Bed & Biscuit Inn facility in Flagler Beach in the amount of
$96,740 with an interest rate of prime plus one (currently 5.5%) per annum and
monthly interest only payments.



The Company has a second mortgage
payable on the Bed & Biscuit Inn facility in Flagler Beach in the amount of
$78,244 with a stated interest rate of 9.5% per annum with monthly principal and
interest payments in the amount of $669.



The Company expensed $14,285 in
interest during the nine months ended September 30, 2004.



Note 6 - Stockholders' equity



The Company is authorized to issue
20,000,000 shares of $0.001 par value preferred stock and 100,000,000 shares of
$0.001 par value common stock.



5

---

DOGS INTERNATIONAL AND
SUBSIDIARY

(a Nevada Corporation)

Notes to Financial
Statements



On April 23, 2004, the Company
received $130,965 in cash from an officer and stockholder, for the purchase of
52,386 shares of the Company's $0.001 par value common stock, at a price of
$2.50 per share. As of September 30, 2004, the Company had not issued the shares
and a subscription payable was recorded in the amount of $130,965.



There were no other
equity transactions during the nine months ended September 30, 2004.



Note 7 - Related
party transactions



The Company leases nine hundred
square feet of office space from an officer and director of the Company at a
fair market value of $500 per month. During the nine months ending September 30,
2004, the Company accrued rent expense to a relayed party in the amount of
$4,500.

As of September 30, 2004, the Company
paid consulting fees to an officer of the Company in the amount of $2,400.



6

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FORWARD-LOOKING
STATEMENTS



This document
		contains "forward-looking statements" within the meaning of the Private
		Securities Litigation Reform Act of 1995. All statements other than
		statements of historical fact are "forward-looking statements" for
		purposes of federal and state securities laws, including, but not
		limited to, any projections of earnings, revenue or other financial
		items; any statements of the plans, strategies and objections of
		management for future operations; any statements concerning proposed new
		services or developments; any statements regarding future economic
		conditions or performance; any statements or belief; and any statements
		of assumptions underlying any of the foregoing.



Forward-looking statements may include the words "may," "could,"
		"estimate," "intend," "continue," "believe," "expect" or "anticipate" or
		other similar words. These forward-looking statements present our
		estimates and assumptions only as of the date of this report. Except for
		our ongoing securities laws, we do not intend, and undertake no
		obligation, to update any forward-looking statement.



Although we believe
that the expectations reflected in any of our forward-looking statements are
reasonable, actual results could differ materially from those projected or
assumed in any of our forward-looking statements. Our future financial condition
and results of operations, as well as any forward-looking statements, are
subject to change and inherent risks and uncertainties. The factors impacting
these risks and uncertainties include, but are not limited to:



- increased
		competitive pressures from existing competitors and new entrants;
- increases in
		interest rates or our cost of borrowing or a default under any material
		debt agreements;
- deterioration
		in general or regional economic conditions;
- adverse state
		or federal legislation or regulation that increases the costs of
		compliance, or adverse findings by a regulator with respect to existing
		operations;
- adverse
		weather conditions impacting our Florida operations;
- loss of
		customers or sales weakness;
- inability to
		achieve future sales levels or other operating results;
- the
		unavailability of funds for capital expenditures; and
- operational
		inefficiencies in our Florida facility.

For a detailed
description of these and other factors that could cause actual results to differ
materially from those expressed in any forward-looking statement, please see
"Factors That May Affect Results of Operations" in this document and "Business
Risks" in our Annual Report on Form 10-KSB for the year ended December 31, 2003.



7

---



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



Critical Accounting
Policies



The preparation of
our consolidated financial statements in conformity with accounting principles
generally accepted in the United States requires us to make estimates and
judgments that affect our reported assets, liabilities, revenues, and expenses,
and the disclosure of contingent assets and liabilities. We base our estimates
and judgments on historical experience and on various other assumptions we
believe to be reasonable under the circumstances. Future events, however, may
differ markedly from our current expectations and assumptions. While there are a
number of significant accounting policies affecting our consolidated financial
statements; we believe the following critical accounting policies involve the
most complex, difficult and subjective estimates and judgments:

revenue
		recognition

Revenue Recognition



For revenue from
boarding and care fees, we recognize revenue in accordance with SEC Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements" ("SAB
101"). SAB 101 requires that four basic criteria must be met before revenue can
be recognized: (1) persuasive evidence of an arrangement exists; (2) service has
occurred; (3) the boarding and care fees are fixed and determinable; and (4)
collectibility is reasonably assured. Determination of criteria (3) and (4) are
based on management's judgments regarding the fixed nature of the selling prices
of the products delivered and the collectibility of those amounts. Provisions
for discounts and rebates to customers, estimated returns and allowances, and
other adjustments are provided for in the same period the related sales are
recorded.



Overview



Dogs International
was originally incorporated in the State of Nevada in January of 2002 under the
name Juris Travel. On March 24, 2003, we changed our name to "DOGS
INTERNATIONAL". On April 9, 2003, we incorporated a new wholly-owned subsidiary,
Bed and Biscuit Inns of America, Inc., a Nevada corporation, which our pet
facility operations are conducted through.



We are primarily
focused on building/acquiring a chain of upscale pet care facilities under the
name "Bed & Biscuit Inn". On May 7, 2003, we completed the acquisition of our
first Bed & Biscuit Inn facility in Flagler Beach, Florida. Situated on
approximately 5 acres, the facility houses numerous indoor/outdoor pet suites,
an onsite pet bakery and Groomingdale's, which provides full service grooming to
guests.



On July 16, 2004,
we issued a press release announcing that we are seeking potential merger and
acquisition candidates in the alternative fuel industry. We continue to review
companies that will improve our ability to diversify our operations. We
anticipate adding additional members to our management team as a result of our
new operations, when established. A copy of the press release was attached as an
exhibit 99 to the Form 10-QSB filed on September 9, 2004.



8

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Results of Operations
for the Three and Nine Months Ended September 30, 2004 and September 30, 2003.





|                     | Three Months
		Ended September 30, 2004 | Three Months
		Ended September 30, 2003 | Nine Months
		Ended September 30, 2004 | Nine Months
		Ended September 30, 2003
|-------------------- | --------------------------------------- | --------------------------------------- | -------------------------------------- | --------------------------------------
|Revenues             | $ 26,391                                | $ 36,866                                | $ 86,198                               | $ 47,000                              
|                     |                                         |                                         |                                        |                                       
|Cost of Sales        | 19,858                                  | -                                       | 23,259                                 | -                                     
|                     |                                         |                                         |                                        |                                       
|Operating
		Expenses | 53,005                                  | 85,181                                  | 145,379                                | 157,892                               
|                     |                                         |                                         |                                        |                                       
|Other Expense        | 7,608                                   | 9,437                                   | 23,285                                 | 9,437                                 
|                     |                                         |                                         |                                        |                                       
|Net Loss             | $ (54,079)                              | $ (57,752)                              | $ (105,725)                            | $ (120,329)                           





Revenues



|                                           |          |          | Increase/(decrease)
|------------------------------------------ | -------- | -------- | -------------------
|                                           | 2004     | 2003     | $                  
|For the three
		months ended September 30: |          |          |                    
|Revenue                                    | $ 26,391 | $ 36,866 | $ (10,475)         



Revenues for the
three months ended September 30, 2004 were $26,391 compared to revenues of
$36,866 in the three months ended September 30, 2003. This resulted in a
decrease in revenues of $10,475, from the same period one year ago. The decrease
in revenues was due to closure of the Bed & Biscuit Inn facility in Flagler
Beach, Florida for a several weeks for minor remodeling of the facility.



|                                          |          |          | Increase/(decrease)
|----------------------------------------- | -------- | -------- | -------------------
|                                          | 2004     | 2003     | $                  
|For the nine
		months ended September 30: |          |          |                    
|Revenue                                   | $ 86,198 | $ 47,000 | $ 39,198           



Revenues for the nine
months ended September 30, 2004 were $86,198 compared to revenues of $47,000 in
the nine months ended September 30, 2003. This resulted in an increase in
revenues of $39,198, from the same period one year ago. The increase in revenues
was due to the change in our business plan from a travel company to the
completed acquisition of our first Bed & Biscuit Inn facility in Flagler Beach,
Florida.



General and
Administrative expenses



|                                           |          |          | Increase/(decrease)
|------------------------------------------ | -------- | -------- | -------------------
|                                           | 2004     | 2003     | $                  
|For the three
		months ended September 30: |          |          |                    
|General &
		Administrative expenses        | $ 53,005 | $ 85,181 | $ (32,176)         



9

---

General and
administrative expenses were $53,005 for the three months ended September 30,
2004 versus $85,181 for the three months ended September 30, 2003, which
resulted in a decrease of $32,176. The decrease in general and administrative
expenses was primarily due to the decrease in operational and administrative
expenses with the change in our business plan from a travel company to the
completed acquisition of our first Bed & Biscuit Inn facility in Flagler Beach,
Florida.



|                                          |           |           | Increase/(decrease)
|----------------------------------------- | --------- | --------- | -------------------
|                                          | 2004      | 2003      | $                  
|For the nine
		months ended September 30: |           |           |                    
|General &
		Administrative expenses       | $ 145,379 | $ 157,892 | $ (12,513)         



General and
administrative expenses were $145,379 for the nine months ended September 30,
2004 versus $157,892 for the nine months ended September 30, 2003, which
resulted in a decrease of $12,513. The decrease in general and administrative
expenses was primarily due to the decrease in operational and administrative
expenses with the change in our business plan from a travel company to the
completed acquisition of our first Bed & Biscuit Inn facility in Flagler Beach,
Florida.



Net Loss



|                                           |            |            | Increase/(decrease)
|------------------------------------------ | ---------- | ---------- | -------------------
|                                           | 2004       | 2003       | $                  
|For the three
		months ended September 30: |            |            |                    
|Net loss                                   | $ (54,079) | $ (57,752) | $ (3,673)          



The net loss for the
three months ended September 30, 2004 was $54,079, versus a net loss of $57,752
for the three months ended September 30, 2003, a change in net loss of $3,673.
The decrease in the net loss was primarily due to the increase in sales
attributed with the change in our business plan from a travel company to the
completed acquisition of our first Bed & Biscuit Inn facility in Flagler Beach,
Florida.



|                                          |             |             | Increase/(decrease)
|----------------------------------------- | ----------- | ----------- | -------------------
|                                          | 2004        | 2003        | $                  
|For the nine
		months ended September 30: |             |             |                    
|Net loss                                  | $ (105,725) | $ (120,329) | $ (14,604)         



The net loss for the
nine months ended September 30, 2004 was $105,725, versus a net loss of $120,329
for the nine months ended September 30, 2003, a change in net loss of $14,604.
The decrease in the net loss was primarily due to the increase in sales
attributed with the change in our business plan from a travel company to the
completed acquisition of our first Bed & Biscuit Inn facility in Flagler Beach,
Florida.



10

---

Liquidity and Capital
Resources at September 30, 2004 Compared with December 31, 2003.



The following table
summarizes total assets, accumulated deficit and stockholders' equity.



|                       | September 30,
		2004 | December 31,
		2003
|---------------------- | -------------------- | -------------------
|                       |                      |                    
|Total Assets           | $ 534,946            | $ 509,385          
|                       |                      |                    
|Accumulated
		Deficit  | $ (243,811)          | $ (125,046)        
|                       |                      |                    
|Stockholders'
		Equity | $ 114,655            | $ 102,454          



A critical component
of our operating plan impacting our continued existence is the ability to obtain
additional capital through additional equity and/or debt financing. Cash
increased primarily due to the receipt of funds from a extraordinary stock
purchase by our President. Since inception, we have financed our cash flow
requirements through issuances of common stock. As we expand our activities, we
may continue to experience net negative cash flows from operations, pending
receipt of significant sales revenues.



Additionally, we
anticipate obtaining additional financing to fund operations through common
stock offerings and bank borrowings, to the extent available, or to obtain
additional financing to the extent necessary to augment our working capital. In
the event we cannot obtain the necessary capital to pursue our strategic plan,
we may have to cease or significantly curtail our operations. This would
materially impact our ability to continue operations.



We believe that
existing capital and anticipated funds from operations will not be sufficient to
sustain operations and planned expansion over the next twelve months. We
anticipate substantial increases in our cash requirements; which will require
additional capital generated from either the sale of common stock, the sale of
preferred stock, or debt financing. Consequently, we will be required to seek
additional capital in the future to fund growth and expansion through additional
equity or debt financing or credit facilities. No assurance can be made that
such financing would be available, and if available it may take either the form
of debt or equity. In either case, the financing could have a negative impact on
our financial condition and our Stockholders. We currently have no agreements
which would provide for either loans to us, or the sale of our securities.



We anticipate that we
will incur operating losses in the next twelve months. Our prospects must be
considered in light of the risks, expenses and difficulties frequently
encountered by companies in their early stage of development. Such risks for us
include, but are not limited to, an evolving and unpredictable business model
and the management of growth. To address these risks, we must, among other
things, obtain a customer base, implement and successfully execute our business
and marketing strategy, respond to competitive developments, and attract, retain
and motivate qualified personnel. There can be no assurance that we will be
successful in addressing such risks, and the failure to do so can have a
material adverse effect on our business prospects, financial condition and
results of operations.



11

---

Off-Balance Sheet
Arrangements



We do not have any
off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that is material to investors.



Subsequent Event



AFV Research, Inc.



On October 8, 2004,
we issued a press release announcing the incorporation of a new wholly-owned
subsidiary under the name AFV Research, Inc. ("AFV") AFV's primary focus will be
in the alternative fuel industry. A Copy of the press release, Articles of
Incorporation and Bylaws of AFV are attached as exhibit 99, exhibit 3i and
exhibit 3ii, respectively.



We plan to locate and negotiate with a business entity
for the merger of a target business into AFV. No assurances can be given that we
will be successful in locating or negotiating with any target business.



Management believes
that there are perceived benefits to being a reporting company with a class of
publicly-traded securities. These are commonly thought to include (1) the
ability to use registered securities to make acquisition of assets or
businesses; (2) increased visibility in the financial community; (3) the
facilitation of borrowing from financial institutions; (4) improved trading
efficiency; (5) stockholder liquidity; (6) greater ease in subsequently raising
capital; (7) compensation of key employees through stock options; (8) enhanced
corporate image; and (9) a presence in the United States capital market.



Management is
actively engaged in seeking a qualified company as a candidate for a business
combination. We are authorized to enter into a definitive agreement with a wide
variety of businesses without limitation as to their industry or revenues,
however AFV plans to initially focus on the alternative fuel industry.. It is
not possible at this time to predict with which company, if any, AFV will enter
into a definitive agreement or what will be the industry, operating history,
revenues, future prospects or other characteristics of that company.



AFV may seek a
business opportunity with entities which have recently commenced operations, or
which wish to utilize the public marketplace in order to raise additional
capital in order to expand business development activities, to develop a new
product or service, or for other corporate purposes. AFV may acquire assets and
establish wholly-owned subsidiaries in various businesses or acquire existing
businesses as subsidiaries.



Our management, in
all likelihood will not be experienced in matters relating to the business of a
target business and will rely upon its own efforts in accomplishing our business
purposes. Outside consultants or advisors may be utilized by us to assist in the
search for qualified target companies. If we do retain such an outside
consultant or advisor, any cash fee earned by such person will need to be
assumed by the target business, as we have limited cash assets with which to pay
such obligation.



12

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The analysis of new
business opportunities will be undertaken by, or under the supervision of our
officer and director, who is not a professional business analyst. In analyzing
prospective business opportunities, management may consider such matters as:

the
			available technical, financial and managerial resources;

working
			capital and other financial requirements; history of operations, if
			any;

prospects
			for the future;

nature of
			present and expected competition;

the
			quality and experience of management services which may be available
			and the depth of that management;

the
			potential for further research, development, or exploration;

specific
			risk factors not now foreseeable but which then may be anticipated
			to impact our proposed activities;

the
			potential for growth or expansion;

the
			potential for profit;

the
			perceived public recognition or acceptance of products, services, or
			trades; name identification; and

other
			relevant factors.

Management does not
have the capacity to conduct as extensive an investigation of a target business
as might be undertaken by a venture capital fund or similar institution. As a
result, management may elect to merge with a target business which has one or
more undiscovered shortcomings and may, if given the choice to select among
target businesses, fail to enter into an agreement with the most
investment-worthy target business.



Following a business
combination we may benefit from the services of others in regard to accounting,
legal services, underwritings and corporate public relations. If requested by a
target business, management may recommend one or more underwriters, financial
advisors, accountants, public relations firms or other consultants to provide
such services.



A potential target
business may have an agreement with a consultant or advisor, providing that
services of the consultant or advisor be continued after any business
combination. Additionally, a target business may be presented to us only on the
condition that the services of a consultant or advisor be continued after a
merger or acquisition. Such preexisting agreements of target businesses for the
continuation of the services of attorneys, accountants, advisors or consultants
could be a factor in the selection of a target business.



In implementing a
structure for a particular business acquisition, we may become a party to a
merger, consolidation, reorganization, joint venture, or licensing agreement
with another corporation or entity. We may also acquire stock or assets of an
existing business. On the consummation of a transaction, it is likely that our
present management and stockholder will no longer be in our control. In
addition, it is likely that our officer and director will, as part of the terms
of the acquisition transaction, resign and be replaced by one or more new
officers and directors.



It is anticipated
that any securities issued in any such acquisition/merger would be issued in
reliance upon exemption from registration under applicable federal and state
securities laws. In some circumstances however, as a negotiated element of its
transaction, we may agree to register all or a part of such securities
immediately after the transaction is consummated or at specified times
thereafter. If such registration occurs, of which there can be no assurance, it
will be undertaken by the surviving entity after we have entered into an
agreement for a business combination or have consummated a business combination.
The issuance of additional securities and their potential sale into any trading
market which may develop in our securities may depress the market value of our
securities in the future if such a market develops, of which there is no
assurance.



13

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While the terms of a
business transaction to which we may be a party cannot be predicted, it is
expected that the parties to the business transaction will desire to avoid the
creation of a taxable event and thereby structure the acquisition in a tax-free
reorganization under Sections 351 or 368 of the Internal Revenue Code of 1986,
as amended.



With respect to any
merger or acquisition negotiations with a target business, management expects to
focus on the percentage of the Company which target business stockholders would
acquire in exchange for their shareholdings in the target business. Depending
upon, among other things, the target business's assets and liabilities, our
stockholders swill in all likelihood hold a substantially lesser percentage
ownership interest in the Company following any merger or acquisition. Any
merger or acquisition effected by us may have a significant dilutive effect on
the percentage of shares held by our stockholders at such time.



No assurances can be
given that AFV will be able to enter into a business combination, as to the
terms of a business combination, or as to the nature of the target business.



As of the date
hereof, management has not made any final decision concerning or entered into
any written agreements for a business combination. When any such agreement is
reached or other material fact occurs, we will file notice of such agreement or
fact with the Securities and Exchange Commission on Form 8-K.



We anticipate that
the selection of a business opportunity in which to participate will be complex
and without certainty of success. Business opportunities may be available in
many different industries and at various stages of development, all of which
will make the task of comparative investigation and analysis of such business
opportunities extremely difficult and complex. We can provide no assurance that
we will be able to locate compatible business opportunities.



As of the date of
this filing AFV has not commenced any operational activities.



On November 22, 2004, we filed a Form
8-K disclosing the resignation of Beckstead and Watts, LLP as our Independent
Accountant effective November 18, 2004.



We have appointed Shelley
International CPA, as our independent accountants for the year ending December
31, 2004.



On November 23, 2004,
the NASD appended our OTC:BB trading symbol with an "E" as a result of the
delinquency in the filing of this quarterly report on Form 10-QSB.



During the next 12
months we plan to re-assess our business plan, and alternatively seek out other
business opportunities. As a result of our lack of revenue generation, we have
not been satisfied with our business plan or original plan of operation. In an
effort to substantiate stockholder value, we are seeking compatible business
opportunities. We can provide no assurance that we will be able to locate
compatible business opportunities.



14

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FACTORS THAT MAY AFFECT OUR RESULTS
OF OPERATIONS



We are uncertain as
to our ability to obtain additional capital necessary to continue our business.



We have incurred an
accumulated deficit for the year ended December 31, 2003 of $125,046, and for
the period ended September 30, 2004 of $243,811. As a result of these losses and
negative cash flows from operations, our ability to continue operations will be
dependent upon the availability of capital from outside sources unless and until
we achieve profitability.



We will depend almost
exclusively on outside capital to pay for the deficit in our working capital.
Such outside capital may include the sale of additional stock, loans from our
officers and directors, and/or commercial borrowing. There can be no assurance
that capital will continue to be available if necessary to meet these continuing
operational costs or, if the capital is available, it will be on terms
acceptable to our company. The issuances of additional equity securities by our
company could result in a significant dilution in the equity interests of our
current stockholders. Obtaining commercial loans, assuming those loans would be
available, will increase our company's liabilities and future cash commitments.
If we are unable to obtain financing in the amounts and on terms deemed
acceptable, our business and future success may be adversely affected.



Since our shares are
thinly traded, and trading on the OTC Bulletin Board may be sporadic because it
is not an exchange, stockholders may have difficulty reselling their shares.



Our common shares are
currently quoted for public trading on the Over-the-Counter Bulletin Board. The
trading price of our common shares has been subject to wide fluctuations.
Trading prices of our common shares may fluctuate in response to a number of
factors, many of which will be beyond our control. The stock market has
generally experienced extreme price and volume fluctuations that have often been
unrelated or disproportionate to the operating performance of companies with
limited business operations. There can be no assurance that trading prices and
price earnings ratios previously experienced by our common shares will be
matched or maintained. These broad market and industry factors may adversely
affect the market price of our common shares, regardless of our operating
performance.



In the past,
following periods of volatility in the market price of a company's securities,
securities class-action litigation has often been instituted. Such litigation,
if instituted, could result in substantial costs for us and a diversion of
management's attention and resources.



Because our common
stock is deemed a low-priced "Penny" stock, an investment in our common stock
should be considered high risk and subject to marketability restrictions.



Since our common
stock is a penny stock, as defined in Rule 3a51-1 under the Securities Exchange
Act, it will be more difficult for investors to liquidate their investment.
Until the trading price of the common stock rises above $5.00 per share, if
ever, trading in the common stock is subject to the penny stock rules of the
Securities Exchange Act specified in rules 15g-1 through 15g-10. Those rules
require broker-dealers, before effecting transactions in any penny stock, to:



15

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Deliver to
		the customer, and obtain a written receipt for, a disclosure document;

Disclose
		certain price information about the stock;

Disclose the
		amount of compensation received by the broker-dealer or any associated
		person of the broker-dealer;

Send monthly
		statements to customers with market and price information about the
		penny stock; and

In some
		circumstances, approve the purchaser's account under certain standards
		and deliver written statements to the customer with information
		specified in the rules.

Consequently, the
penny stock rules may restrict the ability or willingness of broker-dealers to
sell the common stock and may affect the ability of holders to sell their common
stock in the secondary market and the price at which such holders can sell any
such securities. These additional procedures could also limit our ability to
raise additional capital in the future.



Our sole revenue
generating property is located in Florida and, accordingly, we could be
disproportionately harmed by an economic downturn in this area of the country or
a natural disaster, such as a hurricane.



Our sole revenue
producing asset, the Bed and Biscuit Inn, is located in Flagler Beach, Florida.
This concentration in Florida makes our business disproportionately affected by
economic conditions, competition and real and personal property tax rates in
Florida. Natural disasters in Florida, such as hurricanes and/or tropical
storms, would disproportionately affect our business operations. It is also
possible that because of our Florida concentration, a change in Florida laws
applicable to the pet boarding industry or a change in zoning laws 1 may have a
greater impact on us than a change in comparable laws in another geographical
area. Adverse developments in Florida could harm our revenue or increase our
operating expenses.



Future acquisitions may strain our
business and resources and may result in dilution to our stockholders.

While we are not currently a party to
any agreements or commitments and have no understandings with respect to any
acquisitions, we may find it necessary to acquire additional businesses, to
remain competitive. In the event that we identify an appropriateacquisition candidate, we may not be able to negotiate the terms of any such
acquisition successfully, finance such acquisition or integrate such acquired
business, products or technologies into our existing business and operations.
Further, the negotiation of potential acquisitions, as well as the integration
of an acquired business, could cause significant diversions of management time
and resources. Any potential acquisition, whether or not consummated, could
seriously harm our business, operating results and financial condition. If we
consummate one or more significant acquisitions in which the consideration
consists of stock or other securities, our stockholders could suffer significant
dilution of their interests in us. If we were to proceed with one or more
significant acquisitions in which the consideration included cash, we could be
required to use a substantial portion of our available cash to consummate any
such acquisition. Acquisition financing may not be available on favorable terms,
or at all. In addition, we may be required to impair significant amounts of
goodwill and other intangible assets in connection with future acquisitions,
which may seriously harm our operating results.



16

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Going Concern



The financial
statements included in this filing have been prepared in conformity with
generally accepted accounting principles that contemplate the continuance of us
as a going concern. Our cash position may be inadequate to pay all of the costs
associated with our operations. Management intends to use borrowings and
security sales to mitigate the effects of its cash position, however no
assurance can be given that debt or equity financing, if and when required will
be available. The financial statements do not include any adjustments relating
to the recoverability and classification of recorded assets and classification
of liabilities that might be necessary should we be unable to continue
existence.



Item 3. Controls and
Procedures



We maintains
disclosure controls and procedures designed to ensure that information required
to be disclosed in reports filed under the Securities Exchange Act of 1934, as
amended, is recorded, processed, summarized and reported within the specified
time periods. As of the end of the period covered by this report, our executive
management evaluated the effectiveness of our disclosure controls and
procedures. Based on the evaluation, which disclosed no significant deficiencies
or material weaknesses, our executive management concluded that our disclosure
controls and procedures are effective. There were no changes in our internal
control over financial reporting that occurred during our most recent fiscal
quarter that have materially affected, or are reasonably likely to materially
affect, internal control over financial reporting.



PART II--OTHER INFORMATION



Item 1. Legal Proceedings

None.



Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds.

None.



Item 3. Defaults by the Company upon
its Senior Securities

None.



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

None.



Item 5. Other Information

None.



Item 6. Exhibits



Exhibits

|3i  | Articles of
		Incorporation for AFV Research, Inc.                                                   
|--- | -----------------------------------------------------------------------------------------------------
|3ii | Bylaws of AFV
		Research, Inc.                                                                       
|31  | Certification
		of Rosemary Williams pursuant to Section 302 of the Sarbanes-Oxley Act               
|32  | Certification
		of Rosemary Williams pursuant to Section 906 of the Sarbanes-Oxley Act               
|99  | Press Release
		dated October 8, 2004 - Incorporation of wholly-owned subsidiary AFV
		Research, Inc.



17

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SIGNATURES



Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



DOGS INTERNATIONAL

(Registrant)



By: /s/ Rosemary Williams

Rosemary Williams

Chief Financial Officer

(On behalf of the registrant and as

principal accounting officer)



Date: December 22, 2004