SECURITIES AND
EXCHANGE COMMISSION



Washington, D.C. 20549





Form 10-KSB





Annual Report Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934





Date of Report:
December 31, 2005





LFG INTERNATIONAL,
INC.

(Exact name of
registrant as specified in its charter)







|Nevada                                                             | 333-103986                   | 98-0384073                           
|------------------------------------------------------------------ | ---------------------------- | -------------------------------------
|(State of other
    jurisdiction of incorporation or organization) | (Commission File
    Number) | (IRS Employer
    Identification No.)







15321 Main Street,
Suite 102

PO Box 5000, PMB 152

Duvall, WA 98019

(Address of principal
executive offices)





Registrant's telephone
number: (425) 788-9823



(Mark One)

[X] Annual report
pursuant to Section 13 or 15(d) of the securities exchange act of 1934 for the
fiscal year ended December 31, 2004.



[ ] Transition report
under Section 13 or 15(d) of the securities exchange act of 1934





Securities registered
under Section 12(b) of the Exchange Act:





Securities registered
under Section 12(g) of the Exchange Act:



Common stock



Check whether the issuer is not required to file reports
pursuant to Section 13 or 15(d) of the Exchange Act. [ ]



Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. [X]
Yes [ ] No



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



Indicate by checkmark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). [X] Yes [ ] No



State issuer's revenues for its most recent fiscal year: $0.00



State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which
the common equity was sold, or the average bid and asked price of such common
equity, as of a specified date within the past 60 days. $0.00(1)



State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date. As of March 16,
2006, the issuer had 67,311



DOCUMENTS INCORPORATED BY REFERENCE

No documents are incorporated herein by reference.



Transitional Small Business Issuer Format Yes [ ] No [X]

``



CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION



Certain statements in this annual report on Form 10-KSB contain
or may contain forward-looking statements that are subject to known and unknown
risks, uncertainties and other factors which may cause actual results,
performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. These forward-looking statements were based on various factors and
were derived utilizing numerous assumptions and other factors that could cause
our actual results to differ materially from those in the forward-looking
statements. These factors include, but are not limited to, our ability to
consummate a merger or business combination, economic, political and market
conditions and fluctuations, government and industry regulation, interest rate
risk, U.S. and global competition, and other factors. Most of these factors are
difficult to predict accurately and are generally beyond our control. You should
consider the areas of risk described in connection with any forward-looking
statements that may be made herein. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date of
this report. Readers should carefully review this annual report in its entirety,
including but not limited to our financial statements and the notes thereto.
Except for our ongoing obligations to disclose material information under the
Federal securities laws, we undertake no obligation to release publicly any
revisions to any forward-looking statements, to report events or to report the
occurrence of unanticipated events. For any forward-looking statements contained
in any document, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.

---



PART I



Item 1. Description of Business



Business Development



LFG International, Inc., was incorporated on November 4, 2002,
in the state of Nevada as Can/Am Autosales, Inc. The Company changed its name on
August 27, 2004 to LFG International, Inc. LFG has never declared bankruptcy, it
has never been in receivership, and it has never been involved in any legal
action or proceedings.



Business of LFG, International, Inc.

On August 17, 2004, the Company signed a Letter of Intent with
London Finance Group, Ltd., a British company (LFG), for a share exchange of all
of the shares of LFG for common and preferred stock of the Company. LFG has
several subsidiaries, including two European banks and a software trading
platform. The Company and LFG signed a definitive agreement to purchase the
shares of LFG, and LFG delivered all of the outstanding shares to the Company.
Subsequently, and prior to the satisfaction of conditions precedent to
completion of the transaction, the Company learned that LFG would not have any
assets, since the assets of LFG were seized by the government of Switzerland.
The Company did not issue any stock in contemplation of completion of the
agreement. Subsequently, LFG and the Company signed an agreement termination the
transaction, the shares of LFG were returned to LFG, and both parties have
executed a release.

The Company ceased its automobile resale business in
contemplation of the agreement with LFG. The Company has no business activities
at present, and is seeking other business opportunities. For a further
description of the transaction with LFG, please se Management's Plan of
Operations, below.

Employees



Other than LFG's Directors and Executive Officer who is
currently donating his time to the development of the company, there are no
employees of LFG. LFG does not intend to hire employees until the business has
been successfully launched with sales revenues flowing into it. LFG's Officers
and Directors intend to do whatever work is necessary to bring it to the point
of earning revenues. Human resource planning will be part of an ongoing process
that will include constant evaluation of operations and revenue realization.



Reports to Security Holders



LFG will voluntarily make available an annual report including
audited financials on Form 10-K or Form 10-KSB to security holders.



The public may read and copy any materials filed with the SEC at
the SEC's Public Reference Room at 100 F Street, N.E., Washington DC 20549. The
public may obtain information on the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that
contains reports, proxy and information statements, and other information
regarding LFG's that file electronically with the SEC at http://www.sec.gov.



Item 2. Description of Property.



LFG's principal place of business and corporate offices are
located at the home of its President. We have no intention of finding another
office during the development stage of LFG.



LFG does not have any investments or interests in any real
estate. LFG does not invest in real estate mortgages, nor does it invest in
Securities of, or interests in, persons primarily engaged in real estate
activities.



Item 3. Legal Proceedings



We are not a party to any pending legal proceedings.



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



No matter was submitted during the fourth quarter of the fiscal
year ended December 31, 2005, to a vote of security holders, through the
solicitation of proxies or otherwise.



PART II



Item 5. Market for Common Equity and Related Stockholder
Matters.



Market for Stock.



`The Company's common stock is currently traded on the Over-The-Counter Bulletin Board under symbol LFGT`



Holders.



As of December 31, 2005, LFG had thirty-three (33) shareholders
of record of its common stock.



Stock Option Grants



To date, LFG has not granted any stock options.



Registration Rights



LFG has not granted registration rights to the selling
shareholders or to any other persons.



Dividends.



As of December 31, 2005, LFG had not paid any dividends to its
shareholder. There are no restrictions which would limit the ability of LFG to
pay dividends on common equity or that are likely to do so in the future.



Recent Sales of Unregistered Securities



None.



Item 6. Management's Plan of Operation.

LFG International, Inc. (formerly Can/Am Autosales, Inc.) ("LFG"),
is a development stage company with no operations, no revenue, no financial
backing and limited assets. The original plan was to market used cars through
the internet and auto trade magazines to individuals in the U.S. and Canada.

As of December 31, 2005, LFG had no cash on hand. Development
stage net loss for the year ended December 31, 2005 was $140,890, compared to
$81,663 for the year ended December 31, 2004. The loss for the year ended
December 31, 2005 consisted primarily of legal and accounting expenses incident
to the company's development stage activities.

On August 17, 2004, the Company signed a Letter of Intent with
London Finance Group, Ltd., a British company (LFG), for a share exchange of all
of the shares of LFG for common and preferred stock of the Company. LFG has
several subsidiaries, including two European banks and a software trading
platform.

On August 25, 2004, the Company entered into a Stock Purchase
Agreement with Lion Energy (Europe) Ltd. ("Lion"). Lion is the sole shareholder
of 100% of the capital stock of LFG. Prior to this Agreement, there was no
material relationship between the Company and Lion of LFG. In exchange for 100%
of the shares of LFT, Lion was to receive, upon closing of the Agreement, thirty
(30) million common shares and forty (40) million preferred shares of the
Company. Preferred stock of the Company pays no dividend, but is convertible, at
the sole and absolute discretion of the Board of Directors without notice, at
fifteen (15) shares of common stock for each one (1) share of preferred stock.
The Agreement was intended to close on or about August 31, 2004. The shares of
LFG were tendered to the Company, but the Company has never issued shares to
Lion Energy to complete the transaction.

In late October, the Company learned that one of its
shareholders was being investigated by European authorities. That individual
owned assets of certain subsidiaries of LFG, prior to those subsidiaries
obtaining the assets. Management is unsure as of the date of the filing of this
report as to the status of the assets, and whether governmental authorities will
attempt to encumber the assets of those subsidiaries. However, it appears that
the assets of the subsidiaries will not be allowed to be transferred to the
Company.

Because of the uncertain nature of the transaction, the
inability of LFG to insure that the assets of the subsidiaries would be owned
without encumbrances by LFG, the Company elected, as of December 15, 2004, to
terminate the Agreement with LFG. Management will be returning all of the shares
of LFG, and is seeking other potential business opportunities.

On December 11, 2004, the Board of Directors appointed Lyle
Durham as CEO of the Company.

There is substantial doubt about our ability to continue as a
going concern as we have suffered recurring losses from operations and have no
established source of revenue. Accordingly, our independent auditors included an
explanatory paragraph regarding concerns about our ability to continue as a
going concern. Our financial statements contain additional note disclosures
describing the circumstances that lead to this disclosure by our independent
auditors.

Item 7. Financial Statements





LFG INTERNATIONAL, INC.(Formerly CAN/AM AUTOSALES, INC.)Index to Financial StatementsReport of Independent Registered Public Accounting Firm
      
      
      
      F-2Balance Sheet:December 31, 2005
      
      
      
      F-3Statements of Operations:For the periods ended December 31, 2005 and 2004
      
      
      
      F-4Statements of Stockholders' Deficit:For the periods ended December 31, 2005 and 2004
      
      
      
      F-5Statements of Cash Flows:For the periods ended December 31, 2005 and 2004
      
      
      
      F-6Notes to Financial Statements:December 31, 2005 and 2004
      
      
      
      F-7




---

|                                 |                          
|-------------------------------- | -------------------------
|Bateman &
    Co., Inc., P.C.    |                          
|Certified
    Public Accountants |                          
|                                 |                          
|                                 | 5 Briardale Court        
|                                 | Houston, Texas 77027-2904
|                                 | (713) 552-9800           
|                                 | FAX (713) 552-9700       
|                                 | www.batemanhouston.com   



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To The Board of Directors and Stockholders

Of LFG International, Inc.



We have audited the accompanying balance sheet of LFG
International, Inc., formerly CanAm Autosales, Inc., (a Nevada corporation and a
development stage enterprise) as of December 31, 2005, and the related
statements of operations, stockholders' deficit, and cash flows for the each of
the two years in the period ended December 31, 2005, and for the period from
inception, November 22, 2002, through December 31, 2005. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.



We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. The company
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of LFG
International, Inc. (a development stage enterprise) as of December 31, 2005,
and the results of its operations and its cash flows for each of the two years
in the period ended December 31, 2005, and for the period from inception,
November 22, 2002, through December 31, 2005, in conformity with U.S. generally
accepted accounting principles.



The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern. As discussed in Note
2 to the financial statements, the Company is not currently engaged in a
business and has suffered losses from development stage activities to date
approximating $140,000, has negative net worth of approximately $68,800, and has
a deficiency in working capital approximating $69,000, all of which raise
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are also described in Note 2. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.

> BATEMAN & CO., INC., P.C.



Houston, Texas

May 12, 2006



F-2

---



The accompanying notes are an integral part of these
statements.

---









The accompanying notes are an integral part of these
statements.

---







The accompanying notes are an integral part of these
statements.

---





The accompanying notes are an integral part of these
statements.

---

LFG INTERNATIONAL, INC.

(Formerly CAN/AM AUTOSALES, INC.)

(A development stage enterprise)

Notes to Financial Statements

December 31, 2005 and 2004








Note 1 - Organization and summary of significant accounting
policies:

Following is a summary of the Company's organization and
significant accounting policies:



Organization and nature of business - LFG
    International, Inc., formerly Can/Am Autosales, Inc. ("We," or "the
    Company") is a Nevada corporation incorporated on November 4, 2002.
    Effective August 27, 2004, we changed our name to LFG International, Inc. We
    were based in Vancouver, British Columbia, Canada, but in 2004 moved our
    base to Bellevue, Washington.



It was originally our intent is to become an automobile
    vendor to export pre-owned Canadian vehicles for sale in the United States
    and Canada. A website was developed and was intended to be the core
    component of our marketing and advertising strategy.However, on August 16, 2004, we signed a Letter of Intent with London
    Finance Group, Ltd., a British company (London), for a share exchange of all
    of the shares of London for common and preferred stock of CanAm (now renamed
    LFG International, Inc.). London has several subsidiaries, including two
    European banks and a software trading platform. At the time of the
    agreement, existing officers and directors resigned, and new officers and
    directors were elected.



However, conditions that were required to be met in
    connection with the agreement were not met. Accordingly, the agreement was
    canceled by mutual consent on December 15, 2004. There were no significant
    penalties incurred by us as a result of the cancellation.



Because of the termination of the agreement, we are not
    now engaged in any business and are seeking other business opportunities. We
    have abandoned our plan to export pre-owned automobiles.



Since inception, our activities have been limited to
    formation and the raising of equity capital, and searching for business
    opportunities. In our current development stage, management anticipates
    incurring substantial additional losses as additional capital is raised and
    the business plan is implemented.



Basis of presentation - Our accounting and reporting
    policies conform to U.S. generally accepted accounting principles applicable
    to development stage enterprises. Changes in classification of 2003 amounts
    have been made to conform to current presentations.



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



Cash and cash equivalents - For purposes of the
    statement of cash flows, we consider all cash in banks, money market funds,
    and certificates of deposit with a maturity of less than three months to be
    cash equivalents.



Funds held in trust, Attorney - Our attorney holds
    funds for our account from time to time, and uses them to pay corporate
    expenses. We do not have a bank account. We consider such funds to be a
    current asset, but do not consider them to be cash equivalents.



Website development costs - We follow Emerging Issues
    Task Force Issue No. 00-2, Accounting for Website Development Costs,
    ("EITF Issue No. 00-2"), which provides that for specific website
    development costs, the accounting should be based generally on AICPA
    Statement of Position 98-1, Accounting for the Costs of Computer
    Software Developed or Obtained for Internal Use. Under SOP 98-1,
    development costs are capitalized and amortized to income over the estimated
    useful life of the website. We amortized our costs over a period ending in
    November, 2004, at which time our domain registration expired. Amortization
    expense recorded was $0 (2005) and $2,174 (2004).



Fair value of financial instruments and derivative
    financial instruments - We have adopted Statements of Financial
    Accounting Standards regarding Disclosure About Derivative Financial
    Instruments and Fair Value of Financial Instruments. The carrying
    amounts of cash, accounts payable, accrued expenses, and other current
    liabilities approximate fair value because of the short maturity of these
    items. These fair value estimates are subjective in nature and involve
    uncertainties and matters of significant judgment, and, therefore, cannot be
    determined with precision. Changes in assumptions could significantly affect
    these estimates. We do not hold or issue financial instruments for trading
    purposes, nor do we utilize derivative instruments in the management of
    foreign exchange, commodity price or interest rate market risks.



Federal income taxes - Deferred income taxes are
    reported for timing differences between items of income or expense reported
    in the financial statements and those reported for income tax purposes in
    accordance with Statements of Financial Accounting Standards regarding Accounting for Income Taxes, which requires the use of the
    asset/liability method of accounting for income taxes. Deferred income taxes
    and tax benefits are recognized for the future tax consequences attributable
    to differences between the financial statement carrying amounts of existing
    assets and liabilities and their respective tax bases, and for tax loss and
    credit carryforwards. Deferred tax assets and liabilities are measured using
    enacted tax rates expected to apply to taxable income in the years in which
    those temporary differences are expected to be recovered or settled.
    Deferred taxes are provided for the estimated future tax effects
    attributable to temporary differences and carryforwards when realization is
    more likely than not.



Net income per share of common stock - We have
    adopted Statements of Financial Standards regarding Earnings per Share,
    which requires presentation of basic and diluted EPS on the face of the
    income statement for all entities with complex capital structures and
    requires a reconciliation of the numerator and denominator of the basic EPS
    computation to the numerator and denominator of the diluted EPS computation.
    In the accompanying financial statements, basic earnings per share of common
    stock is computed by dividing net income by the weighted average number of
    shares of common stock outstanding during the period. We do not have a
    complex capital structure requiring the computation of diluted earnings per
    share.



Note 2 - Uncertainty, going concern:

At December 31, 2005, we were not currently engaged in a
business and had suffered losses from development stage activities to date. In
addition, current liabilities exceed current assets, and we have no operating
funds. Although management is currently attempting to identify business
opportunities and is seeking additional sources of equity or debt financing,
there is no assurance these activities will be successful. Accordingly, we must
rely on our officers to perform essential functions without compensation until a
business operation can be commenced. No amounts have been recorded in the
accompanying financial statements for the value of officers' services, as it is
not considered material.



These factors raise substantial doubt about the ability of
the Company to continue as a going concern. The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.



Note 3 - Expenses in connection with securities offerings:

In early, 2003, we filed with the SEC a Form SB-2 to register
common stock to be offered for sale. The Form became effective in October, 2003.
In that connection, we incurred $18,229 in legal and accounting fees, which were
deferred and included in Prepaid Expenses at December 31, 2003. These costs were
charged against Capital In Excess of Par Value in 2004 when the securities were
sold.



Note 4 - Related party transactions:

A company related to our controlling shareholder, Dieter
Behring, advanced funds to the Company during 2004 to finance operations. The
advances are not evidenced by a promissory note, do not bear interest, and are
due upon demand. Such advances totaled $20,000 at December 31, 2004 and 2005.



Included in accounts payable and accrued expenses is the
amount of $10,000 for accrued management fees payable to our president for
services rendered in managing the company during 2005.



Note 4- Advance from Lantz Financial, Inc.:

On April 20, 2005 and November 28, 2005, we obtained loans of
$8,500 and $6,000 respectively from Lantz Financial, Inc., a Panamanian company.
Lantz is a non-affiliate of the Company (not associated with any officer,
director, or 5% shareholder). The loans are not evidenced by a note, do not bear
interest, and are unsecured. They are due on demand. The lender has indicated
that it may want to convert the debt into shares in the future, but there is no
agreement to that effect, and no understanding as to any other terms.



Note 5 - Federal income tax:

We follow Statements of Financial Accounting Standards
regarding Accounting for Income Taxes. Deferred income taxes reflect the
net effect of (a) temporary difference between carrying amounts of assets and
liabilities for financial purposes and the amounts used for income tax reporting
purposes, and (b) net operating loss carryforwards. No net provision for
refundable Federal income tax has been made in the accompanying statement of
loss because no recoverable taxes were paid previously. Similarly, no deferred
tax asset attributable to the net operating loss carryforward has been
recognized, as it is not deemed likely to be realized.



The provision for refundable Federal income tax consists of
the following:





|                                               | 2005      | 2004     
|---------------------------------------------- | --------- | ---------
|Refundable Federal income tax attributable to: |           |          
|Current operations                             | $(14,400) | $(27,800)
|Less, Nondeductible expenses                   | 3,400     | -        
|Less, Change in valuation allowance            | 11,000    | 27,800   
|Net refundable amount                          | -         | -        
|                                               |           |          



The cumulative tax effect at the expected rate of 34% of
significant items comprising our net deferred tax amount is as follows:





|                                    | 2005     | 2004    
|----------------------------------- | -------- | --------
|Deferred tax asset attributable to: |          |         
|Net operating loss carryover        | $44,500  | $33,500 
|Less, Valuation allowance           | (44,500) | (33,500)
|Net deferred tax asset              | -        | -       
|                                    |          |         



At December 31, 2005, an unused net operating loss carryover
approximating $130,800 is available to offset future taxable income; it expires
beginning in 2022. Due to the change of control of the Company, the use of the
net operating loss may be limited in the future.



Note 6 - Cumulative sales of stock:

Since its inception, we have issued shares of common stock as
follows:





|         |                                   |               | Price Per |           
|-------- | --------------------------------- | ------------- | --------- | ----------
|Date     | Description                       | Shares        | Share     | Amount    
|11/22/02 | Shares issued for cash            | 300,000       | $0.01     | $3,000    
|01/13/03 | Shares issued for cash            | 300,000       | 0.01      | 3,000     
|01/14/03 | Shares issued for cash            | 275,000       | 0.01      | 2,750     
|01/18/03 | Shares issued for cash            | 150,000       | 0.01      | 1,500     
|01/20/03 | Shares issued for cash            | 300,000       | 0.01      | 3,000     
|01/25/03 | Shares issued for cash            | 100,000       | 0.01      | 1,000     
|02/04/03 | Shares issued for cash            | 50,000        | 0.01      | 500       
|02/17/03 | Shares issued for cash            | 275,000       | 0.01      | 2,750     
|02/24/03 | Shares issued for cash            | 100,000       | 0.01      | 1,000     
|02/25/03 | Shares issued for cash            | 200,000       | 0.01      | 2,000     
|02/26/03 | Shares issued for cash            | 250,000       | 0.01      | 2,500     
|02/27/03 | Shares issued for cash            | 50,000        | 0.01      | 500       
|03/01/03 | Shares issued for cash            | 100,000       | 0.01      | 1,000     
|03/03/03 | Shares issued for cash            | 100,000       | 0.01      | 1,000     
|03/11/03 | Shares issued for cash            | 900,000       | 0.05      | 45,000    
|03/25/04 | Shares issued for cash            | 15,000        | 0.10      | 1,500     
|03/29/04 | Shares issued for cash            | 25,000        | 0.10      | 2,500     
|03/30/04 | Shares issued for cash            | 10,000        | 0.10      | 1,000     
|03/31/04 | Shares issued for cash            | 45,000        | 0.10      | 4,500     
|04/01/04 | Shares issued for cash            | 10,000        | 0.10      | 1,000     
|04/06/04 | Shares issued for cash            | 15,000        | 0.10      | 1,500     
|04/21/04 | Shares issued for cash            | 10,000        | 0.10      | 1,000     
|04/23/04 | Shares issued for cash            | 10,000        | 0.10      | 1,000     
|05/04/04 | Shares issued for cash            | 10,000        | 0.10      | 1,000     
|05/05/04 | Shares issued for cash            | 10,000        | 0.10      | 1,000     
|05/10/04 | Shares issued for cash            | 7,500         | 0.10      | 750       
|05/10/04 | Shares issued for cash            | 10,000        | 0.10      | 1,000     
|05/11/04 | Shares issued for cash            | 25,000        | 0.10      | 2,500     
|         | Cumulative total                  | 3,652,500     |           | $90,750.00
|         | Effect of 5 for 1 split           | 14,610,000    |           |           
|         | Effect of 16.5 for 1 split        | 283,068,750   |           |           
|         | Effect of 1 for 300 reverse split | (300,326,724) |           |           
|         | Cumulative total after all splits | 1,004,526     |           |           
|         |                                   |               |           |           



On June 19, 2004, our Directors approved a 5 for 1 forward split
of the company's common stock. All shareholders of record as of July 13, 2004
received a new certificate for 5 shares for each share they owned as of the
close of business on that date. After the common stock split, the equivalent
number of issued and outstanding shares of the Company outstanding increased
from 3,652,000 to 18,262,500. Total shares authorized of 100 million and par
value of $0.001 per common share remain unchanged.



Then, on August 17, 2004, our Directors approved a 16.5 for 1
forward split of the company's common stock. All shareholders of record as of
August 17, 2004 received a new certificate for 16.5 shares for each share they
owned as of the close of business on that date. After the common stock split,
the equivalent number of issued and outstanding shares of the Company
outstanding increased from 18,262,500 to 301,331,250. Total shares authorized
were increased from 100,000,000 to 1,000,000,000, and par value of $0.001 per
common share remained unchanged.



Then, effective March 21, 2005, Directors approved a 1 for 300
reverse split of our common stock. All shareholders of record as of February 4,
2005 received a new certificate for 1 share for every 300 shares they owned as
of the close of business on that date. After the common stock split, the
equivalent number of shares issued and outstanding decreased from 301,331,250 to
1,004.526. Total shares authorized of 1,000,000,000 and par value of $0.001 per
common share remained unchanged.



The effect of the splits has been retroactively reflected in the
accompanying financial statements.



As a result of the forward splits
in 2004, the increased number of shares outstanding and the resulting increase
in the common stock account caused a deficit in the capital in excess of par
value account at December 31, 2004. The negative balance of $229,264 in capital
in excess of par value was charged to deficit accumulated during the development
stage during the December 31, 2004 quarter. Then, the reverse split during the
quarter ending March 31, 2005 resulted in a positive balance in the capital in
excess of par value account. Accordingly, the $229,264 entry recorded during the
December 31, 2004 quarter was reversed during the March 31, 2005 quarter.



On August 12, 2004, our Directors authorized the issuance of
50,000,000 shares of preferred stock, to be issued from time to time by a
majority of the members of the Board of Directors on such terms as are
established by the Board, and may be issued in one or more series, each with
separate terms and conditions as set by the Board, including, but not limited
to, the authority to provide voting rights for each series. At December 31,
2005, no preferred shares had been issued.



Note 7 - Subsequent events:

On December 22, 2005, our Board of Directors approved a 1 for 15
reverse split of our common shares. The effective date will be January 2, 2006
for shareholders of record January 2, 2006. No fractional shares will be issued;
the number of shares for each shareholder will be rounded up to the nearest
number of whole shares. After the reverse split, our shares outstanding will
decrease from 1,004,526 to 67,133, after adjustment for rounding of fractional
shares. The effect of the reverse split has been retroactively reflected in the
accompanying financial statements.



Note 8 - New accounting pronouncements:

The following recent accounting pronouncements:



- FASB Statements

> Number 145, Rescission of FASB Statements No. 4, 44, and 64,
>     Amendment of FASB Statement No. 13, and Technical Corrections
>     Number 146, Accounting for Costs Associated with Exit or Disposal
>     Activities,
>     Number 147, Acquisitions of Certain Financial Institutions - an
>     amendment of FASB Statements No. 72 and 144 and FASB Interpretation No. 9,
>     Number 148, Accounting for Stock-Based Compensation - Transition and
>     Disclosure - an amendment of FASB Statement No. 123,
>     Number 149, Amendment of Statement 133 on Derivative Investments and
>     Hedging Activities,
>     Number 150, Financial Instruments with Characteristics of Both
>     Liabilities and Equity,
>     Number 151, Inventory Costs - an amendment of ARB 43, Chapter 4
>     Number 152, Accounting for Real Estate Time-Sharing Transactions - an
>     amendment of FASB Statements No. 66 and 67
>     Number 153, Exchanges of Nonmonetary Assets - an amendment of APB
>     Opinion No. 29
>     Number 154, Accounting for Changes and Error Corrections - a
>     replacement of APB Opinion No. 20 and FASB Statement No. 3



- and FASB Interpretations

> Number 45, Guarantor's Accounting and Disclosure Requirements for
>     Guarantees, Including Indirect Guarantees of Indebtedness of Others - and
>     Interpretation of FASB Statements No. 5, 57, and 107 and rescission of FASB
>     Interpretation No. 34
>     Number 46(R), Consolidation of Variable Interest Entities - an
>     Interpretation of ARB No. 51
>     Number 47, Accounting for Conditional Asset Retirement Obligations



are not currently expected to have a material effect on our
financial Statements.



---



Item 8. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosures



None. Not applicable.



Item 8A. Controls and Procedures.



As of December 31, 2005, the Company carried out an evaluation
of the effectiveness of the Company's disclosure controls and procedures (as
defined by Rule 13a-14(c) under the Securities Exchange Act of 1934) under the
supervision and with the participation of the Company's chief executive officer
and chief financial officer (or persons performing similar functions). Based on
and as of the date of such evaluation, the aforementioned officers have
concluded that the Company's disclosure controls and procedures were effective.



The Company also maintains a system of internal accounting
controls that is designed to provide assurance that assets are safeguarded and
that transactions are executed in accordance with management's authorization and
properly recorded. This system is continually reviewed and is augmented by
written policies and procedures, the careful selection and training of qualified
personnel and an internal audit program to monitor its effectiveness. During the
year ended December 31, 2005, there were no significant changes to this system
of internal controls or in other factors that could significantly affect those
controls.



Item 8B. Other Information.



None.





PART III



Item 9. Directors, Executive Officers, Promoters and Control
Persons; Compliance with Section 16(a) of the Exchange Act



LFG's executive officers and directors and their respective
ages as of December 31, 2005, are as follows:



Directors:





|Name of Director | Age
|---------------- | ---
|Lyle Durham      |    





Executive Officers:





|Name of Officer | Age | Office                 
|--------------- | --- | -----------------------
|Lyle Durham     |     | Chief Executive Officer
|                |     |                        





The term of office for each director is one year, or until
the next annual meeting of the shareholders.



Lyle Durham, Chief Executive Officer, Director. has a long
history of innovation and development in the healthcare industry. He has held
senior management positions in the commercialization of several radiation
innovations that have realized global benefit. Lyle was instrumental in the
development of radiation detection devices for the Blood industry and worked
with the American and Canadian Red Cross developing standards for blood
irradiation. He also was the first to take Videofluoroscopy to a mobile setting
for stranded as well as nursing home patients. For the past several years
working in the sun care industry, Lyle developed and commercialized the first
specific UVB monitoring device-enabling people to gauge exposure to UVB
radiation from the sun.



None of LFG's Directors or executive officers have been
involved, during the past five years, in any bankruptcy proceeding, conviction
or criminal proceedings; has not been subject to any order, judgment, or decree,
not subsequently reversed or suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining, barring, suspending or
otherwise limiting his involvement in any type of business, securities or
banking activities; and has not been found by a court of competent jurisdiction,
the Commission or the Commodity Futures trading Commission to have violated a
federal or state securities or commodities law.



Employment Agreements



N/A

Significant Employees

LFG has no significant employees other than the officers and
directors described above, whose time and efforts are being provided to LFG
without compensation.



Item 10. Executive Compensation.



LFG's Executive officers do not currently receive any
compensation from LFG for their service as corporate officers. LFG's directors
have not and currently do not receive any compensation from LFG for their
service as corporate directors.



Summary Compensation Table



|                            |                     |         |         |                           | Long-Term Compensation   
|--------------------------- | ------------------- | ------- | ------- | ------------------------- | -------------------------
|                            | Annual Compensation | Awards  | Payouts |                          
|Name and principal position | Fiscal Year         | Salary  | Bonus   | Other annual compensation | Restricted stock award(s)
|LYLE Durham
    CEO         | 2004
    2005       | 0
    0 | 0
    0 | 0
    0                   | 0
    0                  



There has been no cash payment paid to the executive officers
for services rendered in all capacities to us for the fiscal period ended
December 31, 2005. There has been no compensation awarded to, earned by, or paid
to the executive officers by any person for services rendered in all capacities
to us for the fiscal period ended December 31, 2005.



Stock Option Grants



LFG did not grant any stock options to the executive officers
during the most recent fiscal period ended December 31, 2005. LFG has also not
granted any stock options to the executive officers since incorporation,
November 4, 2002.



Employment Agreements



There are no employment agreements



Item 11. Security Ownership of Certain Beneficial Owners and
Management.



The following is a table detailing the current shareholders of
our stock who own 5% or more of the common stock, and shares owned by our
Directors and Officers:





|Title of class | Name and address of beneficial owner  | Amount of beneficial ownership | Percent of class
|-------------- | ------------------------------------- | ------------------------------ | ----------------
|Common         | Triantafyllos Groumoutis              | 5,500                          | 8.2%            
|Common         | George Giannopoulos                   | 5,500                          | 8.2%            
|Common         | Nick Beratanos                        | 5,500                          | 8.2%            
|Common         | John Mantas                           | 5,500                          | 8.2%            
|Common         | Officers and Directors as a Group (2) | 0                              | 0%              





The percent of class is based on 67,133 shares of common
    stock issued and outstanding as of March 31, 2006.





Item 12. Certain Relationships and Related Transactions.



No persons who may, in the future, be considered a promoter will
receive or expect to receive assets, services or other consideration from us. No
assets will be or are expected to be acquired from any promoter on behalf of our
company. We have not entered into any agreements that require disclosure to our
shareholders.



Item 13. Exhibits





|Exhibit No. | Document                               | Location        
|----------- | -------------------------------------- | ----------------
|3.1         | Articles of Incorporation              | Previously Filed
|3.2         | Bylaws                                 | Previously filed
|31          | Rule 31a-14(a)/15d-14(a) Certification | Included        
|32          | Section 1350                           | Included        



Item 14. Principal Accountant Fees and Services



1. Audit Fees: $ 4,034
2. Audit-Related Fees: $ 6,720
3. Tax Fees: $ 51
4. All Other Fees: $ 0



The company's Board of Directors did not appoint an audit
committee for the year ended December 31, 2005.







Signatures



In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.



LFG INTERNATIONAL, INC.







/s/ Lyle Durham

`Lyle Durham`

President, Chief
Executive Officer, Director





In accordance with the
Exchange Act, this report has been signed below by the following persons on
behalf of the registrant and in the capacities and on the dates indicated.





/s/ Lyle Durham

Lyle Durham

President,

Chief Executive Officer,

Chief Accounting
Officer,

Director