**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **WASHINGTON,
        D.C. 20549**
 
 **FORM
        10-KSB**
 
 (Mark
        One)
 
 x
              ANNUAL
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934
 
 For
        the
        fiscal year ended: **August
        31, 2005**
 
 o
              TRANSITION
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934
 
 For
        the
        transition period from ___________ to ___________
 
 Commission
        file number: **000-31329**
 
 **ROYAL
        SPRING WATER INC.**
 **(FORMERLY
        EASY.COM, INC.)**
 (Name
        of
        small business issuer in its charter)
 
 
 **Nevada**
              **N/A**(State
                  or other jurisdiction of incorporation or organization)
              (I.R.S.
                  Employer Identification No.)
  
 **14553
        Delano Street Suite 217, Van-Nuys CA, 91411**
 (Address
        of principal executive offices)
 
 Issuer’s
        telephone number: (818) 902-3690
 
 **14
        Pico Crescent, Thornhill, Ontario L4J 8P4**
 (Former
        name or former address, if changed since the last report)
 
 Securities
        registered under Section 12(b) of the Exchange Act: **None**
 
 Securities
        registered under Section 12(g) of the Exchange Act: **Common
        Shares, $0.001 par value**
 
 Check
        whether the issuer is not required to file reports pursuant to Section 13
        or
        15(d) of the Exchange Act. o
 
 Check
        whether the issuer (1) filed all reports required to be filed by Section
        13 or
        15(d) of the Exchange Act during the past 12 months (or for such shorter
        period
        that the registrant was required to file such reports), and (2) has been
        subject
        to such filing requirements for the past 90 days. Yes x No o
 
 
 1
  Check
        if
        there is no disclosure of delinquent filers in response to Item 405 of
        Regulation S-B 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. o
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act). Yes o No x
 
 State
        issuer’s revenues for its most recent fiscal year: $0
 
 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: $15,178, assuming a price per share
        of
        $0.001 as of May 19, 2006. For the purpose of this disclosure, shares of
        common
        stock held by directors, officers and stockholders whose ownership exceeds
        five
        percent of the common stock outstanding were excluded. Exclusion of shares
        held
        by any person should not be construed to indicate that such person possesses
        the
        power, direct or indirect, to direct or cause the direction of management
        or
        policies of the issuer, or that such person is controlled by or under common
        control of the issuer.
 
 State
        the
        number of shares outstanding of each of the issuer’s classes of common equity,
        as of the latest practicable date. 30,072,000 as of May 19,
        2006.
  2
  **ROYAL
        SPRING WATER INC. (FORMERLYEASY.COM,
        INC.)**
 
 **Form
        10-KSB**
 **For
        the Fiscal Year Ended August 31, 2005**
  PagePart
                  IItem
                  1.
              Description
                  of Business
              4Item
                  2.
              Description
                  of Property
              10Item
                  3.
              Legal
                  Proceedings
              11Item
                  4.
              Submission
                  of Matters to a Vote of Security
                  Holders
              11Part
                  IIItem
                  5.
              Market
                  for Common Equity and Related Stockholder
                  Matters
              12Item
                  6.
              Management’s
                  Discussion and Analysis or Plan of
                  Operation
              12Item
                  7.
              Financial
                  Statements
              15Item
                  8.
              Changes
                  In and Disagreements with Accountants on Accounting and
                  Financial Disclosure
              15Item
                  8A.
              Controls
                  and Procedures
              15Item
                  8B.
              Other
                  Information
              15Part
                  IIIItem
                  9.
              Directors,
                  Executive Officers, Promoters and Control Persons;
                  Compliance with Section 16(a) of the Exchange Act
              16Item
                  10.
              Executive
                  Compensation
              18Item
                  11.
              Security
                  Ownership of Certain Beneficial Owners and Management
                  and Related Stockholder Matters
              18Item
                  12.
              Certain
                  Relationships and Related
                  Transactions
              18Item
                  13.
              Exhibits
              19Item
                  14.
              Principal
                  Accountant Fees and Services
              19SIGNATURES
              20
 3
 *Table
              of Contents*
 *Index
              to Financial
              Statements*
  **PART
        I**
  **Item
                  1.**
              **Description
                  of Business.**
 
 **Overview**
 
 Easy.com,
        Inc. (the "Company") was incorporated under the laws of the State of Nevada
        on
        May 9, 2000. On June 30, 2005, the Company acquired 100% of the common stock
        of
        Royal Spring Water Inc., a Nevada corporation.
 
 Royal
        Spring Water Inc. (the
        "Company" or “RSW”) was
        established around April of 2005. In April 2006, the Company filed Articles
        of
        Merger in Nevada and legally combined the entities of Easy.com and Royal
        Spring
        Water Inc. They concurrently changed the name of the surviving entity to
        Royal
        Spring Water Inc. The Company was established to extract, process, and bottle
        Artesian Spring Well water of supreme quality. The Company’s plant is in
        Hereford Texas, which is also known as the “city without a tooth ache” due to
        its fluoride rich water; see the article at the following web address:
 
 http://www.texasescapes.com/towns/herefordtexas/herefordtexas.htm
  **Risk
          Factors**
 
 Except
          for historical information contained herein, this document contains
          forward-looking statements. Such forward-looking statements involve risks
          and
          uncertainties and include, but are not limited to, statements regarding
          future
          events and the Registrant’s plans and expectations. The Registrant’s actual
          results may differ materially from such statements. Although the Registrant
          believes that the assumptions underlying the forward-looking statements
          herein
          are reasonable, any of the assumptions could prove inaccurate and, therefore,
          there can be no assurance that the results contemplated in such forward-looking
          statements will be realized. In addition, the business and operations of
          the
          Registrant are subject to substantial risks which increase the uncertainties
          inherent in the forward-looking statements included in this document. The
          inclusion of such forward-looking information should not be regarded as
          a
          representation by the Registrant or any other person that the future events,
          plans or expectations contemplated by the Registrant will be
          achieved.
  4
 *Table
              of Contents*
 *Index
              to Financial Statements*
  There
          is
          a limited public market for our common stock. Persons who may own or intend
          to
          purchase shares of common stock in any market where the common stock may
          trade
          should consider the following risk factors, together with other information
          contained elsewhere in our reports, proxy statements and other available
          public
          information, as filed with the commission, prior to purchasing shares of
          our
          common stock:
  From
          our
          inception through the date of these financial statements, we have realized
          no
          revenues and incurred significant organizational and operating expenses,
          therefore the company is a development stage enterprise. Consequently,
          our
          operations are subject to all risks inherent in the establishment of a
          new
          business enterprise. For the period from inception through August 31, 2005,
          we
          have accumulated losses of $209,904.
 
 We
          are
          not profitable and suffer from cash flow difficulties and will have to
          raise
          additional capital to finance our operations. Relying on outside financing
          for
          our cash needs will have the effect of diluting the ownership share of
          our
          existing stockholders.
 
 We
          have
          not commissioned or obtained marketing studies which support the likelihood
          of
          success of our business plan. No independent studies with regard to the
          feasibility of our proposed business plan have been conducted by any independent
          third parties with respect to our present and future business prospects
          and our
          capital requirements. In addition, there can be no assurances that our
          products
          will find sufficient acceptance in the marketplace to enable us to fulfill
          our
          long and short term goals, even if adequate financing is available and
          our
          products are approved to come to market, of which there can be no
          assurance.
 
 The
          audited financial statements included as part of this annual report contain
          a
“going concern” opinion from our independent auditors. The report of our
          independent auditors issued in connection with our audited financial statements
          included in this Annual Report on Form 10-KSB for the year ended August
          31, 2005
          includes a paragraph which generally provides that the financial statements
          accompanying such auditor's report were prepared assuming that we will
          continue
          as a going concern, that expresses that our historical operating losses
          and
          accumulated deficit raise substantial doubt about our ability to continue
          as a
          going concern. The financial statements do not include any adjustments
          relating
          to the recoverability of our recorded assets and classification of liabilities
          that might be necessary in the event that we cannot continue in existence.
          The
          independent auditor's report assumes that the establishment of our continued
          business operations are dependent upon receipt of significant additional
          outside
          financing and our ability to complete the development of our operating
          facility
          and commencement of operations, and that we will be able to obtain such
          outside
          financing on terms favorable to us or at all, or establish future profitable
          operations. If we do not succeed, then we may be forced to discontinue
          our
          operations and close our business.
 
 Our
          ability to develop, market, license and/or sell products could be harmed
          if we
          are unable to retain or hire key personnel.
  5
 *Table
              of Contents*
 *Index
              to Financial Statements*
 
 We
          face
          competition from companies that have significantly greater resources than
          ours.
          We will directly and indirectly compete with other businesses. In many
          cases,
          these competitors are larger and more firmly established than we are. In
          addition, many of such competitors have greater marketing and development
          budgets and greater capital resources than we have. Accordingly, there
          can be no
          assurance that we will be able to achieve and maintain a competitive position
          in
          our industry in the market that we compete in.
 
 Our
          shares of common stock currently are listed for trading on the over-the-counter
          market on the NASD bulletin board, which is generally considered to be
          a less
          efficient market than markets such as NASDAQ or other national exchanges,
          and
          which may cause difficulty in conducting trades and difficulty in obtaining
          future financing. Further, our securities are subject to the "penny stock
          rules"
          adopted pursuant to Section 15 (g) of the Securities Exchange Act of 1934,
          as
          amended or the Exchange Act. The penny stock rules apply to companies,
          other
          than companies that trade on certain national securities exchanges or an
          automated quotation system that meet certain initial listing requirements
          (such
          as those currently applicable to NASDAQ listed companies) or whose common
          stock
          trades at less than $5.00 per share or which have tangible net worth of
          less
          than $5,000,000 ($2,000,000 if we have been operating for three or more
          years).
          Such rules require, among other things, that brokers who trade "penny stock"
          to
          persons other than "established customers" complete certain documentation,
          make
          suitability inquiries of investors and provide investors with certain
          information concerning trading in the security, including a risk disclosure
          document and quote information under certain circumstances. Many brokers
          have
          decided not to trade "penny stock" because of the requirements of the penny
          stock rules and, as a result, the number of broker-dealers willing to act
          as
          market makers in such securities is limited. In the event that we remain
          subject
          to the "penny stock rules" for any significant period, there may develop
          an
          adverse impact on the market, if any, for our securities. Because our securities
          are subject to the "penny stock rules," investors will find it more difficult
          to
          dispose of our securities. Further, for companies whose securities are
          traded in
          the Over-The-Counter Market, it is more difficult: (i) to obtain accurate
          quotations, (ii) to obtain coverage for significant news events because
          major
          wire services, such as the Dow Jones News Service, generally do not publish
          press releases about such companies, and (iii) for companies whose shares
          are
          traded in the Over-The-Counter Market to obtain needed capital.
 
 We
          have
          paid no dividends on our common stock to date and there are no plans for
          paying
          dividends on our common stock in the foreseeable future. We intend to retain
          earnings, if any, to provide funds for the expansion of our
          business.
 **The
        Industry**
 
 The
        U.S.
        consumer interest in health can be credited for the growth of the bottled
        water
        industry. Increasingly, consumers are realizing the importance of pure water
        for
        their overall well being, energy level and appearance. The 1950's - 1970's
        saw a
        huge increase in soda and sugary drink consumption. Today, more and more
        people
        are looking to bottled water as their choice for natural refreshment. Consumer
        reports indicate that approximately 60% of the U.S. population today drinks
        bottled water. The bottled water and value added beverage business, now
        approaching $7.7 billion annually in North America, is predicted to double
        within the next three to four years in the water category alone. Market analysts
        predict that the bottled water market will continue this rapid growth well
        into
        the future. At the same time, the more healthful products, including value
        added
        water products, have established an impressive foothold in the buying of
        mainstream shoppers. This growing demand provides for primarily two types
        of
        sales for the Company; contract packing and branded products.
 
 www.panda.org/livingwaters/pubs/bottled_water.pdf
  6
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  The
        numbers tell the story:
 
 Bottled
        water is the fastest growing segment of the entire beverage industry. In
        fact,
        in 2004:
 
 ·
              Bottled
                  water became the number two beverage behind soft
                  drinks
 ·
              Industry
                  wholesale dollar sales, approached $9.2 billion in
                  2004
 ·
              Total
                  U.S. category volume surpassed 6.8 billion gallons, an 8.6% advance
                  over
                  2003’s volumehttp://www.beveragemarketing.com/news3e.htm
 ·
              Thepolyethylene
                  terephthalate (PET)
                  plastic bottle segment of the market drove the entire category
                  growth by
                  representing 42% of all bottle
                  sales.
 
 **The
        Market**
 
 Reasons
        for choosing bottled water over other drink choices:
 
 With
        little to no advertising, especially compared to other beverage types such
        as
        soft drinks and coffee, consumers are selecting bottled water as an alternative
        to other drink choices. Reports indicate the bottled water market is the
        fastest
        growing sector of the overall U.S. beverage market. Health and safety reasons
        drive consumers to purchase bottled water. Some people reach for it as a
        healthy
        substitute for caffeinated or alcoholic beverages. Others are wary of tap
        water
        and are suspicious of its health effects.
 
 Although
        health and safety are foremost among water quality concerns, a significant
        reason for the increase  in
        bottled water consumption is purely aesthetic. Many consumers object to the
        taste and smell of their tap water that is often times treated with chlorine
        and
        other agents used for sanitization.
 
 Some
        people also believe that using purified water instead of tap water ensures
        higher quality and better tasting foods and beverages. Therefore, they use
        bottled water as part of their ingredients to cook or make tea, coffee and
        ice
        cubes.
 
 Another
        reason for using bottled water is that it is convenient and easily accessible
        and transportable. Whether you’re working, playing, or traveling (by car, plane,
        or subway) bottled water is readily available and can easily be
        purchased.
  7
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **Competition**
 
 When
        bottling water for other companies and retail stores (Ralph’s Market, Pathway,
        Albertson’s, Kirkland) as well as the actual bottle companies (Poland Springs,
        Crystal Geyser etc.) our main competitor will be other spring water and well
        water owners currently packing water for others.
        Many of
        these competitors have far greater capital resources than we have at this
        time
        and for the foreseeable future. However, we hope to have a
        competitive edge over these companies since our current premises lease, at
        a
        rate of $25,000 per month, includes water wells that will easily meet RSW
        production requirements. We also believe the quality of our water is superior
        to
        most of our competition. Compared to most other water production plants that
        have an average of 30% to 35% rate for filtering waste water, RSW will only
        need
        to have 5-10% filtered to produce the high quality of water desired.
        Additionally, RSW has a great taste to our water, as it comes from an Artesian
        well source. In addition, RSW is located in the heart of our country, Hereford,
        Texas, located 30 miles from Interstate 40, the main East/West trucking
        transportation route across the United States. The property that we occupy
        in
        Hereford includes a railroad spur which connects our loading docks to the
        main
        railroad station in Hereford which we believe will add an additional competitive
        edge in both price and quality.
 
 **Products
        and Services**
 
 RSW
        has
        Artesian well water that will be extracted from an underground source located
        in
        the Ogallala Aquifer of Texas. The Ogallala Aquifer has existed for over
        10
        million years.
 
 In
        the
        future, the Company plans to produce various flavored water. However, for
        the
        first year or so, we will concentrate on our main product of plain,
        non-carbonated bottled water. The basis for all the other beverage products
        we
        plan to produce in the future is water. We therefore deem it necessary to
        first
        concentrate on our bottled water operations before branching off into other
        types of alcoholic and non-alcoholic beverages.
 
 **The
        Geography of Royal Spring Water Wells**
 
 The
        Ogallala Aquifer (pronounced OH-GA-LA-LA) is one of the largest aquifer systems
        in the world, stretching across parts of eight states including South Dakota,
        Nebraska, Wyoming, Colorado, Kansas, Oklahoma, New Mexico and Texas and
        underlying about 174,000 square miles.
 
 The
        Ogallala Aquifer can almost always be counted on to yield water to a well
        drilled into it. Some wells yield only a few gallons per minute, while others
        yield 1,000 gallons per minute or more. The Ogallala Aquifer is that portion
        of
        the Ogallala Formation that is saturated (i.e., filled with water).
 
 The
        Ogallala Formation was deposited about 10 million years ago, during the geologic
        time periods of late Miocene and early Pliocene by eastwardly flowing braided
        streams, which originated in the Rocky Mountains. Coarse-grained sand, gravel,
        fine clay, silt, and sand were deposited over the pre-Ogallala land surface,
        which was much like the present-day area just east of the High Plains low,
        rolling hills, valleys, and streams.
 
 These
        variations in the depth of the base of the formation cause variations in
        the
        amount of formation material filled with water, generally described as the
        saturated thickness. This is the area from the top of the water table down
        to
        the base of the formation. In some parts of Nebraska, the saturated thickness
        exceeds 1,000 feet, while it is less than 20 feet in some other areas of
        the
        Great Plains.
  8
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  The
        amount of water in storage in the aquifer in each state is dependent on the
        actual extent of the formation's saturated thickness. In 1990, the Ogallala
        Aquifer in the eight-state area of the Great Plains contained 3.270 billion
        acre-feet of water, of which about 65% was located under Nebraska. Texas
        had
        about 12% of the water in storage, or approximately 417 million acre-feet
        of
        water. Kansas had 10% of the water. About 4% was located under Colorado,
        with
        3.5% located under Oklahoma. Another 2% was under South Dakota, and 2% was
        under
        Wyoming. The remaining 1.5% of the water was under New Mexico.
 
 The
        surface area of each state covered by the Ogallala Formation varies in about
        the
        same proportion as the volume of water in storage. Nebraska, with 64,400
        square
        miles and Texas with 36,080 square miles are the largest. New Mexico, Oklahoma,
        South Dakota, and Wyoming all have less than 10,000 square miles of surface
        area
        underlain by the Ogallala aquifer.
 
 Changes
        in climatic conditions over geologic time resulted in changes in erosion
        patterns causing the Ogallala to be cut off from its original supply of water
        and formation materials. The southern portion of the formation in Texas and
        New
        Mexico is now a plateau, cut off on all sides.
 
 The
        Ogallala Formation is heterogeneous, meaning that the amount, depth, and
        location of the sand, gravels, and clay vary throughout the
        formation.
 
 The
        most
        distinctive layer of the formation is the caprock. This top layer is made
        up of
        caliche and may be as thick as 60 feet in some areas.
 
 The
        water
        in the formation generally flows from northwest to southeast at a rate of
        about
        150 feet per year.
 
 Before
        the development of irrigation, the discharge from the formation was a result
        of
        evaporation from water table playa basins and from streams, springs, and
        seeps,
        located mainly along the eastern boundary of the High Plains. Some of these
        still flow today.
 
 Average
        annual rainfall varies across the region. In Lubbock, Texas, the average
        annual
        rainfall is 18 inches per year. The region is characterized by a semi-arid
        climate and persistent winds, which results in high evaporation rates. The
        average annual evaporation rate in Lubbock is about 80 inches per
        year.
 
 Natural
        recharge for the land surface area outside the playa basins is possible and
        probably occurs in rare events when precipitation events occur while the
        top
        four or five feet of soil is wet to field capacity by irrigation or unusual
        precipitation. Also, water can move from the surface into the aquifer through
        micropores created by worms, animal burrows, and decayed plant
        roots.
 
 Prospects
        for the future continue to be promising. The Texas portion of the Ogallala
        Aquifer contained approximately 450 million acre-feet of water in
        2000.
 
 **Production
        Facility and Equipment**
 
 The
        Company’s operating facilities includes a total of approximately 71,000 square
        feet of office, production, and warehouse space, of which 40,000 square feet
        will be allocated to water processing and packaging space made accessible
        by
        loading bays and a railroad extension. Approximately 30,000 square feet is
        available for storage of raw materials and finished goods. The Company believes
        the existing production facilities will be sufficient for it production needs
        for the foreseeable future.
  9
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **Licensing
        and Water Rights**
 
 As
        discussed in Item 2 below, the particular land Royal Spring Water has leased,
        which includes an option to purchase, has all the water rights included.
        Although this will allow us to extract water from the land, it doesn’t
        automatically give us the right to distribute it. In order to distribute
        water
        worldwide and do business, certain licenses must first be acquired. Besides
        necessary licenses, one must pass certain specifications and requirements
        of the
        Food and Drug Administration (FDA). This includes a clean and immaculate
        warehouse, and the use of hygienic filtration, refrigeration, bottling and
        packing operation systems. We will assure that all our operations meet and
        surpass these government requirements.
 
 **Employees**
 
 Currently,
        there are seven full time employees. The Company expects to start operations
        in
        June 2006 and will therefore be hiring additional staff to run the corporate
        office as well as for its warehouse facility. It is estimated that an additional
        eight employees will be required at that time as demand for the products
        increase. With 15 employees, the plant will be operating at full
        capacity.
 
 **Item
                  2.**
              **Description
                  ofProperty.**
 
 The
        Company corporate office is located at 14553 Delano Street, Suite 217, Van
        Nuys
        California.
 
 On
        August
        1, 2005 the Company entered into a lease for operating premises at 3500 Holly
        Sugar Rd. in Hereford, Texas. This lease includes 1,000 square feet of office
        space, a 7,000 square foot warehouse and production facility, six 25,000
        gallon
        liquid juice tanks and related equipment and the water rights from Well #11
        and
        Well #12 (see below).
 
 The
        lease
        calls for an initial rent of $15,000 per month for six months commencing
        November 1, 2005 to April 2006 (but use of the premises from August 1, 2005)
        payable in advance for six months on November 1, 2005. Thereafter for the
        next
        24 years the annual rent shall be $25,000 per month, adjusted annually based
        on
        the consumer price index.
 
 In
        the
        first four years the Company has an option to purchase the facilities at
        an
        amount calculated as set out in the terms of the lease (see exhibit 10) which
        is
        estimated to be $4,590,964.
 
 There
        is
        a total of 71,000 square feet currently constructed on Royal Spring Water’s
        property, of which 40,000 square feet will be allocated to water processing
        and
        packaging space made accessible by loading bays and a railroad extension.
        Another 30,000 square feet will be allocated to the storage of raw materials
        and
        finished goods and an additional 1,000 for office space. In addition, Royal
        Spring Water has six 25,000 gallon water tanks, four water waste ponds, and
        a
        five and a half-mile railroad spur leading directly from the main railroad
        station in Hereford to our loading dock. Also on our property is the Engine
        needed to pull and push the train cars for our shipping needs which will
        enable
        us to keep our shipping cost very low. Under our current contracts we are
        allowed to pump 400,000 gallons of water per day, which translates to 2,909,090
        bottles of water 500ml (16.9 oz.) per day.
  10
 *Table
            of Contents*
 *Index
            to Financial Statements*
 
 **Item
                  3.**
              **Legal
                  Proceedings.**
 
 Royal
        Spring Water Inc. is involved in litigation with a former employee. The Company
        has filed a Cross-Complaint against this former employee, which we believe
        has
        merit and will result in either a recovery for Royal Spring Water or an offset
        in excess of any claim by the former employee.
 
 Management
        and legal counsel for the Company are of the opinion that the employee’s claim
        is without merit. Accordingly, the financial statements do not include any
        adjustments to reflect the possible outcome of this claim. This
        matter is currently not being contested in any court of law.
 
 **Item
                  4.**
              **Submission
                  of Matters to a Vote of Security
                  Holders.**
 
 The
        sole
        shareholder of the registrant agreed to enter and consummate the acquisition
        of
        100% of Royal Spring Water Inc.
 
 In
        September 2004 the sole shareholder agreed to split the issued stock by
        exchanging three shares for every one share held.
  11
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **PART
        II**
 
 **Item
                  5.**
              **Market
                  for Common Equity and Related Stockholder
                  Matters.**
 
 **Market
        Information**
 
 The
        Company's common shares, par value $0.001 (the "Shares") are currently listed
        for trading on the over-the-counter market (Pink Sheets) under the symbol
        RSPG
        and trades by way of unsolicited quotes.
 
 **Stockholders**
 
 As
        of May
        19, 2006, there were 49 shareholders of record. We currently have no outstanding
        options or warrants or similar potentially dilutive securities for the purchase
        of our common stock and have no securities outstanding which are convertible
        into common stock. We have not yet adopted or developed any plans to adopt
        any
        stock option, stock purchase or similar plan for our employees.
 
 **Dividends**
 
 The
        Registrant has not paid or declared any dividends upon its common shares
        since
        its inception and, by reason of its present financial status and its
        contemplated financial requirements, does not intend to pay or declare any
        dividends upon its common shares within the foreseeable future.
 
 **Item
                  6.**
              **Management’s
                  Discussion and Analysis or Plan of
                  Operation.**
 
 The
        following discussion and analysis should be read in conjunction with our
        Consolidated Financial Statements and notes appearing elsewhere in this
        report.
 
 **Plan
        of Operation**
 
 Product
        Mix:
 
 Private
        labeling - Bottle water production for other companies who desire to increase
        their bottled water manufacturing capacity. For these companies, it is more
        cost
        effective for them to have RSW provide the water product than to develop
        and
        open a new or expand existing water bottling facilities. These customers
        will
        provide RSW with the bottles or the molds for the bottles as well as the
        labels,
        and RSW will fill the water, label and ship the products to the customer.
 
 Bottled
        water of its own brand - Besides bottling water for major stores, businesses
        and
        bottled water companies, we will be bottling water using our own label “Royal
        Spring Water”. We will be targeting our product (single serve plastic bottles of
        500ml, 1liter, 1.5liters, 1gallon) directly to the smaller end user -
        convenience stores, fast food establishments, gas stations, major clubs and
        popular restaurants, among others.
  Rectifying
        alcoholic beverages - This product is the mixture of 100% proof alcohol and
        water to create the final alcohol product. Overseas alcoholic beverage
        manufactures prefer to rectify alcoholic beverages in the U.S., as it is
        much
        cheaper. Once alcohol is rectified/mixed, the finished product contains four
        times the liquid volume as the unprocessed raw material. As pure alcohol
        transports in 25,000 gallons per container and glass price is reasonably
        consistent on a global basis, by using our services, the manufacturer of
        alcoholic beverages will save on both the cost of shipping the alcohol (1/4
        the
        liquid volume and weight), as well as saving on the cost of shipping the
        glass
        bottles. The alcoholic beverage manufacturers will provide the bottles, labels,
        alcohol and formula and RSW will provide the water for the rectifying, bottling
        and packing. All transportation will be paid by the alcoholic beverage
        companies.
 
 In
        order
        to obtain high quality products and assure customer satisfaction, we will
        be
        using modern manufacturing technologies machinery. For nearly three years
        now,
        we have spent much of our time, money and efforts into researching the water
        industry in the U.S. As a result, we have acquired broad knowledge about
        procedures, licenses, machinery, and land. During this time we have also
        built
        strong relationships with key individuals within the government and private
        sectors related to the water industry.
  Employees :
 
 Currently,
          there are seven full time employees. The Company expects to start operations
          in
          June 2006 and will therefore be hiring additional staff to run the corporate
          office as well as for its warehouse facility. It is estimated that an additional
          eight employees will be required at that time as demand for the products
          increase. With 15 employees, the plant will be operating at full
          capacity.
  12
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **Sales
        and Marketing Plan**
 
 Target
        Market:
 
 We
        will
        first start off our business by bottling water for major stores (Ralph’s,
        Albertson’s etc.) and major bottled water companies across the
        country.
 
 We
        also
        have contacts in the US Army Ordinance. If we are able to obtain the U.S.
        government as a customer this would represent a major sector within the market.
        When the U.S. Army is on a mission abroad and is no longer on American soil,
        it
        strictly uses water (drinking, cooking, bathing, etc.) provided by the United
        States, for safety reasons.
 
 Besides
        bottling water for major stores and major bottle water companies, we will
        be
        bottling water using our own label, “Royal Spring Water”. At first, we will be
        targeting our product (single serve plastic bottles of 355 ml, 500ml, 1 liter,
        1.5 liters and 1 gallon) directly to the end user. Therefore, the first step
        would be to contact major supermarkets, convenience stores, fast food
        establishments, gas stations, major clubs and popular restaurants. A sales
        team
        comprised of Company representatives will be put in charge to first work
        on
        securing new deals and contracts with stores, restaurants and clubs using
        various promotional tools such as pamphlets, price lists, and samples of
        our
        bottled water. Sponsorship is another great marketing tool that we will utilize
        in order to acquire exposure and gain recognition. We will be sponsoring
        concerts, golf tournaments, and dance clubs, for instance. We believe that
        by
        providing free samples of our bottled water to various groups and venues,
        we
        will be able to effectively spread our name and popularity and obtain market
        penetration.
 
 We
        will
        also be targeting all major hotel and casino gaming companies in order to
        provide them with their private labeled bottled water and customized labels
        (specific hotel-casino names, logos and images). We have contacts in some
        of the
        major hotel-casinos in Las Vegas who have already expressed an interest in
        purchasing water from our company when it becomes available. We believe these
        potential customers are interested in our product for two main reasons -
        a
        better price and better quality water. The hotels and major casinos out-source
        100% of their consumable bottled water.
 
 **Liquidity
        and Capital Resources**
 
 The
        Company has raised cash from the shareholders of Royal Spring Water Inc.
        and
        intends to raise additional funds by way of private placements and funding
        from
        outside sources. Although the Company has no firm commitments from investors
        or
        lenders at this time, the Company believes it will be able to raise sufficient
        capital to complete assembly of its production facilities and commence
        production and distribution of its products. There can be no assurance that
        the
        Company will be able to secure additional financing or that the amount of
        any
        additional financing will be sufficient to accomplish its business objectives
        or
        to pay ongoing operating expenses.
  13
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **Future
        Funding Requirements and Going Concern**
 
 While
        we
        have raised the capital necessary to meet our working capital and financing
        needs in the past, additional financing is required in order to meet our
        current
        and projected cash flow needs during our development stage. Within the next
        year, funds will be needed to meet the requirements of our initial
        operations.
  During
        the current fiscal year (2006), we have raised capital through advances made
        by
        the shareholders of the Company in the amount of approximately $1,000,000.
        These
        funds are being used to meet working capital requirements, acquire bottling
        equipment and further develop the plant. In addition the Company is currently
        in
        negotiations with a private investment fund to raise additional capital as
        needed.
 
 The
        majority of the infrastructure necessary for the operation of the plant was
        already in place upon commencement of the lease. The further capital necessary
        to complete the development of the plant and acquisition of bottling equipment,
        leading up to operations to commence in June 2006, was funded through the
        shareholder advances described above.
 
 If
        during
        that period or thereafter, we are not successful in generating sufficient
        liquidity from operations or in raising sufficient capital resources on terms
        acceptable to us, this could have a material adverse effect on our business,
        results of operations, liquidity and financial condition.
 
 Our
        independent certified public accountants have stated in their report included
        herein that we have incurred operating losses since our inception, and that
        we
        are dependent upon management’s ability to develop profitable operations. These
        factors among others raise substantial doubt about our ability to continue
        as a
        going concern.
 
 **Off-Balance
        Sheet Arrangements**
 
 We
        have
        not had, and at August 31, 2005, 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.
 
 **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:
 
 Pervasiveness
        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 amounts of revenues and expenses during the reporting period.
        Actual results could differ from those estimates. Significant estimates were
        used in determining the present value of our capital lease obligation and
        the
        allocation of that total cost to the various assets included in the
        lease.
  Development
          Stage Enterprise:
 
 The
          Company has not earned any revenues from limited principal operations and
          accordingly, the Company's activities have been accounted for as those
          of a
          "Development Stage Enterprise" as set forth in Statement of Financial Accounting
          Standards (“SFAS”) No. 7, *Accounting
          and Reporting by Development Stage Enterprises* (“SFAS
          No. 7 “). Among the disclosures required by SFAS No. 7 are that the Company's
          financial statements be identified as those of a development stage company,
          and
          that the statements of operation, stockholders' deficit and cash flows
          disclose
          activity since the date of the Company's inception.
  14
 *Table
            of Contents*
 *Index
            to Financial Statements*
 
 **Item
                  7.**
              **Financial
                  Statements.**
 
 See
        Financial Statements starting on page F-1 for this information.
 
 **Item
                  8.**
              **Changes
                  In andDisagreements with Accountants on Accounting and
                  Financial Disclosure.**
 
 On
        March
        14, 2005 Michael Johnson & Co. LLC. was terminated as the Company’s
        independent auditor. Since its engagement in November 11 2004 to its termination
        on March 14, 2005, Michael Johnson & Co. LLC. had acted as the Registrant’s
        independent registered public accounting firm. The reports of independent
        registered public accounting firm Michael Johnson & Co. LLC. on the
        financial statements of the Registrant and its subsidiaries for the years
        ended
        August 31, 2004 and August 31, 2003 did not contain an adverse opinion or
        a
        disclaimer of opinion, nor were such reports qualified or modified as to
        uncertainty, audit scope, or accounting principles. However, such reports
        contained an explanatory paragraph regarding the substantial doubt on the
        Company’s ability to continue as a going concern relating to the reports for the
        years presented. The termination of Michael Johnson & Co. LLC. was accepted
        by our board of directors.
 
 During
        the years ended August 31, 2004 and August 31, 2003 and subsequent period
        through to March 2005, there were no disagreements with Michael Johnson &
Co. LLC. on any matter of accounting principles or practices, financial
        statement disclosure, or auditing scope or procedure, which, if not resolved
        to
        the satisfaction of Michael Johnson & Co. LLC., would have caused it to make
        reference to the subject matter of the disagreement in connection with its
        report; nor has Michael Johnson & Co. LLC. ever presented a written report,
        or otherwise communicated in writing to the Registrant or its board of directors
        the existence of any “reportable event or default” as defined in (iv) of
        Regulation S-B Item 304 (a)(1).
 
 Michael
        Johnson & Co. LLC. has provided the Registrant with a letter addressed to
        the Securities and Exchange Commission as required by Item 304(a)(3) of
        Regulation S-B, so that Registrant can file such letter with he Commission.
        The
        letter is attached as an exhibit hereto.
 
 In
        February 2006 the Company appointed, as its new auditor, Grobstein, Horwath
        & Company LLP., Certified Public Accountants, whose address is 15233 Ventura
        Boulevard, Ninth Floor, Sherman Oaks, California 91403. The effective date
        of
        engagement agreed to by the parties was February 6, 2006.
 
 Prior
        to
        their appointment of the new independent registered public accounting firm,
        the
        Company did not consult with the new auditor on the application of accounting
        principles to a specific completed or contemplated transaction, or the type
        of
        audit opinion that might be rendered on the Company’s financial
        statements.
 
 **Item
                  8A.**
              **Controls
                  and Procedures.**
 
 Within
        the 90-day time period prior to filing this report, we conducted an evaluation
        of the effectiveness of our "disclosure controls and procedures," as that
        phrase
        is defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange
        Act of
        1934. The evaluation was carried out under the supervision and with the
        participation of management, including our President.
 
 Based
        on
        and as of the date of that evaluation, our President has concluded that our
        disclosure controls and procedures are effective in timely alerting him to
        material information required to be disclosed in the reports we file with
        or
        submit to the Securities and Exchange Commission ("SEC") under the Securities
        Exchange Act of 1934, and in ensuring that the information required to be
        disclosed in those filings is recorded, processed, summarized and reported
        within the time periods specified in the SEC's rules and forms.
 
 Notwithstanding
        the foregoing, there can be no assurance that the Company's disclosure controls
        and procedures will detect or uncover all failures of persons within the
        Company
        to disclose material information otherwise required to be set forth in the
        Company's periodic reports. There are inherent limitations to the effectiveness
        of any system of disclosure controls and procedures, including the possibility
        of human error and the circumvention or overriding of the controls and
        procedures. Accordingly, even effective disclosure controls and procedures
        can
        only provide reasonable, not absolute, assurance of achieving their control
        objectives.
 
 Subsequent
        to the date of the evaluation, there were no significant changes in internal
        controls or in other factors that could significantly affect the internal
        controls, including any corrective actions taken with regard to significant
        deficiencies and material weaknesses.
 
 **Item
                  8B.**
              **OtherInformation.**
  None.
  15
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **PARTIII**
 
 **Item
                  9.**
              **Directors,Executive
                  Officers, Promoters and Control Persons;
                  Compliance With Section 16(a) of the Exchange
                  Act.**
 
 The
        directors and executive officers of the Registrant as of May 19, 2006 were
        as
        follows:
  **Name
                  and Address**
              
              **Age**
              
              **Position**Alex
                  Hazan
                14553
                  Delano St suite 217
                Van
                  Nuys CA 91411
              
              45
              
              President,
                  CEO and Chairman of the Board of DirectorsHarel
                  Goldstein
                14553
                  Delano St suite 217
                Van
                  Nuys CA 91411
              
              45
              
              Director
                  of Marketing & Sales, CFO and DirectorIsaac
                  Ben Hamou
                14553
                  Delano St suite 217
                Van
                  Nuys CA 91411
              
              45
              
              Director
 
 **Our
        Director and Officers**
 
 **Mr.
        Alex Hazan**
 ***President,
        CEO and Chairman of the Board of directors***
 
 Mr.
        Hazan
        arrived to the United States in the early eighties. After his army service
        in
        one of Israel’s elite units, Alex managed and over saw one of the most
        prestige’s security outfits in the world. Shortly after his arrival in the
        United States Alex raised the financing and owned one of the first home
        improvement companies in Los Angeles with over 30 employees. Alex over saw
        the
        company's strategy, marketing and sales. Over the last few years Alex has
        become
        a real estate developer in Los Angeles and its surroundings. In 1994 Alex
        formed
        Silver Cloud productions and raised the finance as well as self-finance over
        $25
        million for independent films. Alex produced or Executive produced these
        films
        for worldwide markets. In 1996 Alex founded one of Israel’s leading 3D animation
        companies - MIM TV ( http://www.mimtv.com/ )
        Alex
        funded the company entirely and produced and developed a large library of
        children DVD programming as well as CD ROM interactive games. MIMTV is currently
        selling its products to ToysRus.
 
 **Mr.
        Harel Goldstein**
 ***Director
        of Marketing & Sales, CFO and Director***
  Prior
        to
        Harel’s arrival in the United States, he produced and arranged the financing for
        over 80 hours of documentary series and specials. During his early years,
        Harel
        was in charge of manufacturing and marketing for the largest studio in Israel
        with over 25 staff members under his control. Prior to his arrival in the
        U.S.
        Harel served as an officer in the Israeli Army. Harel Goldstein graduated
        from
        the Film and Television School at San Francisco State University in 1986.
        From
        1986 to 1990 Harel produced and line-produced several feature films. His
        first
        network MOW entitled MURDER C.O.D. was made for NBC in 1990. At the world
        sales
        markets, Harel has generated sales, pre-sold and created marketing campaigns
        for
        a multitude of projects based on summary sales sheets, marketing tools and
        Talent pkg’s. During those years Harel ran the companies with 5-15 employees
        spanning from development to finance, contract negotiations and marketing
        strategies.
  16
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **Isaac
        Ben Hamou**
 ***Director***
 
 Isaac
        Ben
        Hamou is head of the transportation department of Stephen S. Wise Temple,
        one of
        the most prominent Temples in Los Angeles. His department consists of 10
        bus
        drivers and 1 bus company supervisor. Mr. Hamou oversees all of the billing
        which comes from Laidlaw Transit, charging each department accurately for
        the
        proportion of the labor they used. Mr. Hamou works opposite the parents on
        a
        daily basis answering all their needs and servicing their
        complaints.
 
 **Mr.
        Vartan Yossefian**
 ***Chief
        Engineer, Production and Plant Director***
 
 As
        an
        owner, operations manager, general manager Vartan’s experience spans over thirty
        years with consumer packaging goods in both water bottling and food industries
        and machine design. Vartan has a hands-on approach with a flair for strong
        analytical, organizational and people skills. He has track record of getting
        results through people in a highly competitive marketing and orchestrating
        departmental turnaround  Over a
        period that spans more then 15 years Vartan directed multiple Plants and
        Distribution Centers. He has Knowledge with WHIMIS, Health and Safety and
        regulatory issues, a strong Engineering background for plant, equipment,
        warehousing layouts and control over inventory of raw materials and finished
        goods in a just in time environment between production and warehouse logistics.
        Over the last five years Vartan owned and operated Global Machinery Repair
        an
        Engineering and Management Consultant. Under this banner he designed and
        managed
        building of Water bottling and Alcoholic beverage Rectification. Vartan
        purchased and set-up state of the art Plastic Blow Molding equipment and
        high
        speed filling equipment. He also installed water processing and bottling
        plants
        in Orlando, Florida and Santa Fe, California. From 1984-2000 Vartan owned
        and
        operated Delta Technologies where a company specializing in Design and
        Manufacturing of - Door and Hood Assembly system for GM, Cadillac plant.
        Vartan
        also designed and installed entire process and packaging plant for Snack
        Food in
        Calgary Canada.
  17
 *Table
            of Contents*
 *Index
            to Financial Statements*
 
 **Item
                  10.**
              **Executive
                  Compensation.**
  At
          this
          time there is no set executive compensation package for any of the directors
          or
          officers of the Company. The Company currently has no stock option plan
          or
          similar plans, nor are there any immediate plans or intentions to establish
          such
          compensation arrangements.
   **Item
                  11.**
              **Security
                  Ownership of Certain Beneficial Owners and
                  Management and
                  Related Stockholder
                  Matters.**
 
 The
        following table sets forth the name, address, number of shares beneficially
        owned, and the percentage of the Registrant’s total outstanding common stock
        shares owned by: (i) each of the Registrant’s Officers and Directors; (ii) the
        Registrant’s Officers and Directors as a group; and (iii) other shareholders of
        5% or more of the Registrant’s total outstanding common stock shares. The
        percentages have been calculated by taking into account all Shares owned
        on the
        record date as well as all such Shares with respect to which such person
        has the
        right to acquire beneficial ownership at such date or within 60 days thereafter.
        Unless otherwise indicated, all persons listed below have sole voting and sole
        investment power over the Shares owned.
 
 **Title
                  of Class**
              
              **Name
                  and Address of**
                **Beneficial
                  Owner**
              
              **Amount
                  and**
                **Nature
                  of**
                **Beneficial**
                **Ownership**
              
              **Percent**
                **of
                  Class**Common
                  Stock
              
              Alex
                  Hazan,14553 Delano
                St
                  suite 217, Van Nuys CA
                91411
              
              1,489,432
              
              4.96%Common
                  Stock
              
              Harel
                  Goldstein,14553
                Delano
                  St suite 217, Van
                Nuys
                  CA 91411
              
              1,489,432
              
              4.96%Common
                  Stock
              
              Isaac
                  Ben Hamou,14553
                Delano
                  St suite 217, Van
                Nuys
                  CA 91411
              
              1,489,428
              
              4.96%Common
                  Stock
              
              Officers
                  and Directors, as a
                Group
                  (4 people)
              
              4,468,292
              
              14.88%
 
 **Item
                  12.**
              **Certain
                  Relationships and Related
                  Transactions.**
  The
          Company’s principal shareholders, who are also officers, have provided short
          term, non-interest bearing working capital advances to the Company through
          August 31, 2005 and subsequently. Such funding has been the primary source
          of
          the Company’s working capital to date.
  18
 *Table
              of Contents*
 *Index
              to Financial
              Statements*
 
 **Item
                  13.**
              **Exhibits.**
 
 Reference
        is herewith made to the financial statements and notes thereto included herein
        and to the cover page of this 10-KSB with respect to documents incorporated
        by
        reference in accordance with Rule 12b-33.
  **Exhibit**
                **Number**
              
              **Description**2*
              
              Acquisition
                  Agreement3*
              
              Articles
                  of Merger10*
              
              Commercial
                  Lease Agreement16*
              
              Letter
                  on Change in Accountant31.1*
              
              Certificate
                  of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
                  Act of 200231.2*
              
              Certificate
                  of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
                  Act of 200232.1*
              
              Certificate
                  of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley
                  Act of 200232.2*
              
              Certificate
                  of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley
                  Act of 2002
  
 *
              Filed
                  herewith.
  
 **Item
                  14.**
              **Principal
                  Accountant Fees and
                  Services.**
 
 The
        Company incurred $40,000 of audit fees pertaining to the year ended August
        31,
        2005 compared to $750 in 2004. However, the 2005 audit fees have not been
        accrued in the financial statements for the year ended August 31, 2005 since
        such services were not rendered prior to that date. There were no other services
        performed by the auditors on behalf of the Registrant during these
        years.
 
 **Policy
        on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services
        of
        Independent Registered Public Accounting Firm**
  The
        Company currently does not have a designated Audit Committee, and accordingly,
        the Company's Board of Directors' policy is to pre-approve all audit and
        permissible non-audit services provided by the independent auditors. These
        services may include audit services, audit-related services, tax services
        and
        other services. Pre-approval is generally provided for up to one year and
        any
        pre-approval is detailed as to the particular service or category of services
        and is generally subject to a specific budget. The independent auditors and
        management are required to periodically report to the Company's Board of
        Directors regarding the extent of services provided by the independent auditors
        in accordance with this pre-approval, and the fees for the services performed
        to
        date. The Board of Directors may also pre-approve particular services on
        a
        case-by-case basis.
  19
 *Table
            of Contents*
 *Index
            to Financial Statements*
 
 **SIGNATURES**
 
 Pursuant
        to the requirements of Section 13 or 15(d) of the Securities Exchange Act
        of
        1934, the Registrant has duly caused this report to be signed on its behalf
        on
        May 19, 2006 by the undersigned, thereunto authorized.
  **ROYAL
                  SPRING WATER INC. (FORMERLY EASY.COM, INC.)**By:
              /s/ 
                  AlexHazanAlexHazan,
                  President
   Pursuant
        to the requirements of the Securities Exchange Act of 1934, this report has
        been
        signed by the following persons on behalf of the Registrant and in the
        capacities on the date(s) indicated.
   **Name**
              
              **Title**
              
              **Date**/s/ 
                  AlexHazan
              
              Chairman of
                  the Board of
              
              May
                  31, 2006Directors
                  and ChiefAlexHazan
              
              Executive
                  Officer/s/ 
                  Harel Goldstein
              
              Director
                  and Chief
              
              May
                  31, 2006Financial
                  OfficerHarel
                  Goldstein/s/ 
                  Isaac Ben Hamou
              
              Director
              
              May
                  31, 2006Isaac
                  Ben Hamou
  20
 *Table
            of Contents*
 *Index
            to Financial Statements*
 
 **INDEX
        TO FINANCIAL STATEMENTS**
 
 PageReport
                  of Independent Registered Public Accounting Firm
              F-2Consolidated
                  Balance Sheets August 31, 2005
              F-3Consolidated
                  Statements of Operations for the Years Ended August 31, 2005 and
                  2004
              F-4Consolidated
                  Statements of Changes in Stockholders’ Equity for the Years Ended August
                  31, 2005 and 2004
              F-5Consolidated
                  Statements of Cash Flows for the Years Ended August 31, 2005 and
                  2004
              F-6Notes
                  to Consolidated Financial Statements
              F-7
  F-1
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **Report
        of Independent Registered Public Accounting Firm**
  
  To
        the
        Board of Directors and Stockholders of
 Easy.com,
        Inc.
  We
          have
          audited the accompanying consolidated balance sheet of Easy.com, Inc. and
          Subsidiary (A Development Stage Company) as of August 31, 2005 and the
          related
          consolidated statements of operations, changes in stockholders’ deficit, and
          cash flows for the years ended August 31, 2005 and 2004 and from the date
          of
          inception (May 9, 2000) to August 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 audits 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 audits include consideration of internal
          control over financial reporting as a basis for designing audit procedures
          that
          are appropriate in the circumstance, but not for expressing an opinion
          on the
          effectiveness of the Company’s internal control over financial reporting.
          Accordingly, we express no such opinion. An audit includes examining, on
          a
          test basis, evidence supporting the amounts and disclosures in the
          financial statements. An audit also includes 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 consolidated financial statements referred to above present
          fairly,
          in all material respects, the financial position of Easy.com, Inc. and
          Subsidiary (A Development Stage Company) at August 31, 2005, and the results
          of
          their operations and their cash flows for the years ended August 31, 2005
          and
          2004 and for the period from inception (May 9, 2000) to August 31, 2005
          in
          conformity with accounting principles generally accepted in the United
          States of
          America.
 
 The
          accompanying consolidated financial statements have been prepared assuming
          that
          the Company will continue as a going concern. As discussed in Note 1 to
          the
          consolidated financial statements, the Company’s significant operating losses,
          negative working capital, and total capital deficiency raise substantial
          doubt
          about its ability to continue as a going concern. Note 1 also describes
          management’s plans to address these financial matters. The consolidated
          financial statements do not include any adjustments that might result from
          the
          outcome of this uncertainty.
   /s/
        Grobstein, Horwath & Company LLP
 
 Sherman
        Oaks, California
 May
        19,
        2006
  F-2
 *Table
            of Contents*
 *Index
            to Financial Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **CONSOLIDATED
        BALANCE SHEET**
 **AUGUST
        31, 2005**
 
 **ASSETS****2005**CURRENT
                  ASSETSCash
                  and cash equivalents
              
              $
              12Prepaid
                  expenses
              
              
              10,000Total
                  Current Assets
              
              
              10,012Property,
                  plant and equipment, net
              
              
              3,337,434TOTAL
                  ASSETS
              
              $
              3,347,446**LIABILITIES
                  AND STOCKHOLDERS’ DEFICIT**CURRENT
                  LIABILITIESAdvances
                  from shareholders
              
              $
              73,546Obligation
                  under capital lease - current portion
              
              
              163,680Total
                  Current Liabilities
              
              
              237,226Obligation
                  under capital lease
              
              
              3,240,052TOTAL
                  LIABILITIES
              
              
              3,477,278STOCKHOLDERS’
                  DEFICITPreferred
                  stock - $.001 par value; 5,000,000 shares authorized, none issued
                  or
                  outstandingCommon
                  stock - $.001 par value; 50,000,000 shares authorized, 30,072,000
                  shares
                  outstanding
              
              
              30,072Deficit
                  accumulated during the development stage
              
              
              (209,904
              )TOTAL
                  STOCKHOLDERS’ DEFICIT
              
              
              (129,832
              )TOTAL
                  LIABILITIES AND STOCKHOLDERS’ DEFICIT
              
              $
              3,347,446
 
 The
        accompanying notes are an integral part of these financial
        statements.
  F-3
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **CONSOLIDATED
        STATEMENTS OF OPERATIONS**
 **FOR
        THE YEARS ENDED** **AUGUST
        31, 2005 AND 2004**
  **2005**
              
              **2004**
              
              **For
                  the Period**
                **From
                  May 9,**
                **2000
                  (Date of**
                **Inception)
                  to**
                **August
                  31, 2005**EXPENSESOccupancy
                  costs
              
              $
              14,973
              
              $
              -
              
              $
              14,973General
                  and administrative
              
              
              59,279
              
              
              -
              
              
              69,848Travel
                  and entertainment
              
              
              5,093
              
              
              -
              
              
              5,093Consulting
                  fees
              
              
              5,000
              
              
              -
              
              
              5,000Vehicle
              
              
              2,293
              
              
              -
              
              
              2,293Telecommunications
              
              
              1,084
              
              
              -
              
              
              1,084Interest
                  and bank charges
              
              
              803
              
              
              -
              
              
              803Professional
                  fees
              
              
              -
              
              
              750
              
              
              3,750Depreciation
              
              
              14,345
              
              
              -
              
              
              14,345TOTAL
                  EXPENSES
              
              
              102,870
              
              
              750
              
              
              117,189LOSS
                  FROM OPERATIONS
              
              
              (102,870
              )
              
              (750
              )
              
              (117,189
              )OTHER
                  EXPENSESInterest
                  on capital lease obligation
              
              
              53,168
              
              
              -
              
              
              53,168NET
                  LOSS
              
              $
              (156,038
              )
              $
              (750
              )
              $
              (170,357
              )Loss
                  per common share, basic and diluted
              
              $
              (0.004
              )
              $
              (.000
              )Weighted
                  average shares outstanding, basic and diluted
              
              
              30,072,000
              
              $
              30,072,000
  The
        accompanying notes are an integral part of these financial
        statements.
  F-4
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **CONSOLIDATED
        STATEMENTS OF CHANGE IN STOCKHOLDERS' DEFICIENCY**
 **FOR
        THE YEARS ENDED** **AUGUST
        31, 2005 AND 2004**
  **Common
                    Stock**
                
                **Additional**
                
                
                
                **Total****Paid-in**
                
                **Accumulated**
                
                **Stockholders'****Shares**
                
                **Par
                    Value**
                
                **Capital**
                
                **Deficit**
                
                **Deficit**BALANCE
                    AT MAY 9, 2000 (Post Split)
                
                
                -
                
                $
                -
                
                $
                -
                
                $
                -
                
                $
                -Stock
                    issued for services
                
                
                30,072,000
                
                
                30,072
                
                
                -
                
                
                (20,048
                )
                
                10,024Net
                    loss for the period
                
                
                -
                
                
                -
                
                
                
                
                
                (13,569
                )
                
                (13,569
                )BALANCE
                    AT AUGUST 31, 2003 (Post Split)
                
                
                30,072,000
                
                
                30,072
                
                
                -
                
                
                (33,617
                )
                
                (3,545
                )Net
                    loss
                
                
                -
                
                
                -
                
                
                -
                
                
                (750
                )
                
                (750
                )BALANCE
                    AT AUGUST 31, 2004 (Post Split)
                
                
                30,072,000
                
                
                30,072
                
                
                -
                
                
                (34,367
                )
                
                (4,295
                )Acquisition
                    of Royal Spring Water Inc.
                
                
                -
                
                
                -
                
                
                -
                
                
                (19,499
                )
                
                (19,499
                )Net
                    loss
                
                
                -
                
                
                -
                
                
                -
                
                
                (156,038
                )
                
                (156,038
                )Services
                    contributed by shareholders
                
                
                -
                
                
                -
                
                
                50,000
                
                
                -
                
                
                50,000BALANCE
                    AT AUGUST 31, 2005
                
                
                30,072,000
                
                $
                30,072
                
                $
                50,000
                
                $
                (209,904
                )
                $
                (129,832
                )
 
 The
        accompanying notes are an integral part of these financial
        statements.
  F-5
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **CONSOLIDATED
        STATEMENTS OF CASH FLOWS**
 **FOR
        THE YEARS ENDED** **AUGUST
        31, 2005 AND 2004**
 **2005**
                
                **2004**
                
                **For
                    the Period**
                  **From
                    May 9,**
                  **2000
                    (Date of**
                  **Inception)
                    to**
                  **August
                    31,**
                  **2005**DECREASE
                    IN CASH AND CASH EQUIVALENTS:CASH
                    FLOWS FROM OPERATING ACTIVITIES:Net
                    Loss
                
                $
                (156,038
                )
                $
                (750
                )
                $
                (120,357
                )Adjustments
                    to reconcile net income to net cash provided (used) by operating
                    activities:Depreciation
                
                
                14,345
                
                
                -
                
                
                14,345Interest
                    on obligation under capital lease
                
                
                53,168
                
                
                
                
                
                53,168Common
                    stock issued for services
                
                
                -
                
                
                -
                
                
                10,024Services
                    contributed by shareholders
                
                
                (50,000
                )Changes
                    in Assets and Liabilities:Prepaid
                    Expenses
                
                
                (10,000
                )
                
                -
                
                
                (10,000
                )Accounts
                    payable and accrued liabilities
                
                
                (750
                )
                
                750
                
                
                -NET
                    CASH USED IN OPERATING ACTIVITIES
                
                
                (49,275
                )
                
                
                
                
                (52,820
                )CASH
                    FLOWS FROM INVESTING ACTIVITIES:Acquisition
                    of property and equipment
                
                
                (1,215
                )
                
                -
                
                
                (1,215
                )Acquisition
                    of Royal Spring Water Inc.
                
                
                (19,499
                )
                
                -
                
                
                (19,499
                )NET
                    CASH PROVIDED BY INVESTING ACTIVITIES
                
                
                (20,714
                )
                
                
                
                
                (20,714
                )CASH
                    FLOWS FROM FINANCING ACTIVITIES:Advances
                    from shareholders
                
                
                70,001
                
                
                -
                
                
                73,546NET
                    CASH PROVIDED BY FINANCING ACTIVITES
                
                
                70,001
                
                
                -
                
                
                73,546NET
                    CHANGE IN CASH & CASH EQUIVALENTS
                
                
                12
                
                
                -
                
                
                12CASH
                    AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
                
                
                -
                
                
                -
                
                
                -CASH
                    AND CASH EQUIVALENTS AT END OF PERIOD
                
                $
                12
                
                $
                -
                
                $
                12
  The
        accompanying notes are an integral part of these financial
        statements.
  F-6
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 
 **NOTE
                  1.**
              **SUMMARY
                  OF SIGNIFICANT ACCOUNTING POLICIES, NATURE OF OPERATIONS AND USE
                  OF
                  ESTIMATES**
 
 **ORGANIZATION**
 
 Easy.com,
        Inc. (the “Company”) was incorporated under the laws of the State of Nevada on
        May 9, 2000. The Company was a non-operating shell corporation with nominal
        net
        assets prior to June 2005, when the Company acquired one hundred percent
        (100%)
        of the assets of Royal Spring Water Inc., a Nevada company (“RSW”).
 
 The
        Company was established with a clear mission, namely to extract, process,
        and
        bottle Artesian Spring Well water of supreme quality.
 
 **BUSINESS
        COMBINATION**
 
 On
        June
        30, 2005, the Company acquired all of the outstanding stock of Royal Spring
        Water Inc., a Nevada corporation. This company was incorporated with the
        intent
        to manufacture and distribute bottled water. Since this business combination,
        RSW has not commenced operations and has incurred minimal activity.
  Easy.com,
          Inc. completed the acquisition by having the shareholders of RSW surrender
          100%
          of their common stock to the Company. Since the Company and RSW were under
          common control by essentially the same group of shareholders, this purchase
          has
          been treated as a related party transaction. Accordingly, the net liabilities
          of
          RSW have been recorded at cost, with the accumulated losses of RSW recorded
          as a
          charge to accumulated deficit.
 **GOING
        CONCERN**
 
 The
        Company's financial statements are presented on a going concern basis, which
        contemplates the realization of assets and satisfaction of liabilities in
        the
        normal course of business. The Company has experienced losses from operations
        since inception, and as of August 31, 2005 has a working capital and total
        capital deficiency, which raise substantial doubt as to its ability to continue
        as a going concern.
 
 The
        Company's ability to continue as a going concern is contingent upon its ability
        to obtain the financing and strategic alliances necessary to attain profitable
        operations. Management is pursuing various sources of financing and intends
        to
        raise equity financing through a private placement with a private group of
        investors in the near future. The Company has received letters of intent
        from
        potential customers, which management believes will produce the necessary
        income
        to attain profitability in the future. Since
        August 31, 2005, the Company’s principal shareholders/officers have provided
        approximately $1 million in short-term working capital advances and these
        individuals will continue to provide certain funding as and when required
        on a
        short-term basis.
 
 The
        financial statements do not include any adjustments to reflect the possible
        future effects on the recoverability and classification of assets or the
        amounts
        and classification of liabilities that may result from the possible inability
        of
        the Company to continue as a going concern.
 
 **BASIS
        OF PRESENTATION**
 
 The
        accompanying consolidated financial statements include the accounts of the
        Company and its wholly owned subsidiary, Royal Spring Water Inc., a Nevada
        corporation and have been prepared in accordance with accounting principles
        generally accepted in the United States of America ("GAAP"). All significant
        inter-company accounts and transactions are eliminated.
  The
        Company has not earned any revenues from limited principal operations and
        accordingly, the Company's activities have been accounted for as those of
        a
        "Development Stage Enterprise" as set forth in Statement of Financial Accounting
        Standards (“SFAS”) No. 7, *Accounting
        and Reporting by Development Stage Enterprises* (“SFAS
        No. 7 “). Among the disclosures required by SFAS No. 7 are that the Company's
        financial statements be identified as those of a development stage company,
        and
        that the statements of operation, stockholders' deficit and cash flows disclose
        activity since the date of the Company's inception.
  F-7
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 
 **PERVASIVENESS
        OF ESTIMATES**
 
 The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States requires management to make estimates
        and assumptions that affect the reported amounts of assets and liabilities
        and
        disclosure of contingent assets and liabilities at the date of the financial
        statements and the reported amounts of revenues and expenses during the
        reporting period. Actual results could differ from those estimates.
 
 **CASH
        AND CASH EQUIVALENTS**
 
 Cash
        and
        cash equivalents are considered to be all highly liquid investments purchased
        with an initial maturity of three (3) months or less.
 
 **PROPERTY
        AND EQUIPMENT**
 
 Property
        and equipment are stated at cost less accumulated depreciation and amortization.
        Maintenance and repairs that neither materially add to the value of the property
        nor appreciably prolong its life are charged to operations as incurred.
        Betterments or renewals are capitalized when incurred. Depreciation, based
        on
        the estimated useful lives of the assets, is provided using the straight
        line
        method over the following useful lives:
 
 Equipment
                  under capital lease
              5
                  yearsLocomotive
                  under capital lease
              5
                  yearsBuilding
                  under capital lease
              25
                  yearsFurniture
                  and equipment
              5
                  years
 
 **LONG
        LIVED ASSETS**
 
 Long
        lived assets are accounted for in accordance with SFAS No. 144, *Accounting
        for the Impairment or Disposal of Long-Lived Assets* .
        The
        statement requires that long-lived assets be reviewed for impairment whenever
        events or changes in circumstances indicate that the carrying amount of an
        asset
        may not be recoverable. Assets to be disposed of are reported at the lower
        of
        carrying amount or fair value less cost to sell.
 
 **CAPITAL
        LEASES**
 
 Capital
        leases represent those leases under which substantially all the risks and
        rewards of ownership of the leased assets are transferred to the Company.
        Property, plant and equipment held under capital leases are initially recorded
        at the present value of the minimum payments at the inception of the leases,
        with equivalent liabilities categorized as appropriate under current or
        non-current liabilities. Interest expense, which represents the difference
        between the minimum payments at the inception of the capital leases and the
        corresponding fair value of the assets acquired, is allocated to accounting
        periods over the period of the leases to produce a constant rate of charge
        on
        the outstanding balance.
 
 **INCOME
        TAXES**
 
 The
        Company accounts for income taxes pursuant to SFAS No. 109, Accounting for
        Income Taxes. Deferred tax assets and liabilities are recorded for differences
        between the financial statements and tax basis of the assets and liabilities
        that will result in taxable or deductible amounts in the future based on
        enacted
        tax laws and rates. Valuation allowances are established when necessary to
        reduce deferred tax assets to the amount expected to be realized. Income
        tax
        expense is recorded for the amount of income tax payable or refundable for
        the
        period increased or decreased by the change in deferred tax assets and
        liabilities during the period. As of August 31, 2005, a deferred tax asset
        of
        approximately $50,000 (which arises solely as a result of net operating losses),
        has been entirely offset by a valuation reserve due the uncertainty that
        this
        asset will be realized in the future.
  F-8
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 
 **LOSS
        PER SHARE**
 
 The
        Company accounts for earnings per share pursuant to SFAS No. 128, *Earnings
        per Share* ,
        which
        requires disclosure on the financial statements of "basic" and "diluted"
        earnings (loss) per share. Basic earnings (loss) per share is computed by
        dividing net income (loss) by the weighted average number of common shares
        outstanding for the year. Diluted earnings (loss) per share is computed by
        dividing net income (loss) by the weighted average number of common shares
        outstanding plus common stock equivalents (if dilutive) related to stock
        options
        and warrants for each year.
 
 There
        were no dilutive financial instruments for the period ended August 31, 2005
        and
        2004.
 
 **FAIR
        VALUE OF FINANCIAL INSTRUMENTS**
 
 The
        carrying values of our financial instruments included in current assets and
        current liabilities approximated their respective fair values at each balance
        sheet date due to the immediate or short-term maturity of these financial
        instruments. The fair value of lease obligations is based on current rates
        at
        which we could borrow funds with similar remaining maturities.
 
 **RECENT
        ACCOUNTING PRONOUNCEMENTS**
 
 On
        November 24, 2004, the Financial Accounting Standards Board ("FASB") issued
        SFAS
        No. 151, *Inventory
        Costs--an amendment of ARB No. 43, Chapter 4* (“SFAS
        No. 151”) effective for fiscal years beginning after June 15, 2005. This
        Statement amends the guidance in ARB 43, Chapter 4, *Inventory
        Pricing* ,
        to
        clarify the accounting for abnormal amounts of idle facility expense, freight,
        handling costs, and wasted material (spoilage). This Statement requires that
        those items be recognized as current-period charges. In addition, this Statement
        requires that allocation of fixed production overheads to the costs of
        conversion be based on the normal capacity of the production facilities.
        We are
        currently reviewing the requirements of SFAS No. 151; however, we do not
        believe
        that the adoption of SFAS No. 151 will have a material effect on our results
        of
        operations or financial position.
 
 In
        December 2004, the FASB issued SFAS No. 153, *Exchanges
        of Nonmonetary Assets* (“SFAS
        No. 153”). SFAS No. 153 amends the guidance in APB No. 29, *Accounting
        for Nonmonetary Assets* (“APB
        No. 29 “). APB No. 29 was based on the principle that exchanges of nonmonetary
        assets should be measured on the fair value of the assets exchanged. SFAS
        153
        amends APB No. 29 to eliminate the exception for nonmonetary exchanges of
        similar productive assets and replaces it with a general exception for exchanges
        of nonmonetary assets that do not have commercial substance if the future
        cash
        flows of the entity are expected to change significantly as a result of the
        exchange. SFAS 153 is effective for financial statements issued for fiscal
        years
        beginning after June 15, 2005. The
        adoption of SFAS 153 is not expected to have a material effect on the Company’s
        financial position or results of operations.
  In
        December 2004, the FASB issued SFAS 123(R), Share-Based Payment. SFAS 123(R)
        amends SFAS 123, Accounting for Stock-Based Compensation, and APB Opinion
        25,
        Accounting for Stock Issued to Employees. SFAS 123(R) requires that the cost
        of
        share-based payment transactions (including those with employees and
        non-employees) be recognized in the financial statements. SFAS 123(R) applies
        to
        all share-based payment transactions in which an entity acquires goods or
        services by issuing (or offering to issue) its shares, share options, or
        other
        equity instruments (except for those held by an ESOP) or by incurring
        liabilities (1) in amounts based (even in part) on the price of the entity’s
        shares or other equity instruments, or (2) that require (or may require)
        settlement by the issuance of an entity’s shares or other equity instruments.
        This statement is effective (1) for public companies qualifying as SEC small
        business issuers, as of the first interim period or fiscal year beginning
        after
        15 December 2005, or (2) for all other public companies, as of the first
        interim
        period or fiscal year beginning after 15 June 2005, or (3) for all nonpublic
        entities, as of the first fiscal year beginning after 15 December 2005.
        Management is currently assessing the effect of SFAS No. 123(R) on the Company’s
        financial statements.
 
 In
        May
        2005, the FASB issued SFAS No. 154, Accounting Changes and Error Corrections.
        This statement applies to all voluntary changes in accounting principle and
        requires retrospective application to prior periods' financial statements
        of
        changes in accounting principles, unless this would be impracticable. This
        statement also makes a distinction between "retrospective application" of
        an
        accounting principles and the "restatement" of financial statements to reflect
        the correction of an error. This statement is effective for accounting changes
        and corrections of errors made in fiscal years beginning after 15 December
        2005.
        The Company is evaluating the effect the adoption of this interpretation
        will
        have on its financial position, cash flows and results of
        operations.
  F-9
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 
 **NOTE
                  2.**
              **PROPERTY,
                  PLANT & EQUIPMENT**
 
 At
        August
        31, 2005 property, plant and equipment consists of the following:
 
 Land
                  and water rights under capital lease
              
              $
              1,287,853Equipment
                  under capital lease
              
              
              506,555Locomotive
                  under capital lease
              
              
              53,661Building
                  under capital lease
              
              
              1,502,495Furniture
                  and equipment
              
              
              1,2153,351,779Less:
                  accumulated depreciation
              
              
              (14,345Net
                  property, plant and equipment
              
              $
              3,337,434
 
 Depreciation
        expense was $14,345 for the period ended August 31, 2005 ($Nil -
        2004).
 
 **NOTE
                  3.**
              **RELATED
                  PARTY TRANSACTIONS**
 
 The
        advances from shareholders of the Company, to facilitate the payment of debts,
        are non-interest bearing, unsecured and have no specific terms of repayment.
        The
        carrying value of the advances approximates the market value due to the
        short-term maturity of the financial instruments.
  For
          the
          year ended August 31, 2005, the Company's directors and shareholders devoted
          time to the development of the Company. Compensation expense totaling $50,000
          has been recorded for the year ended August 31, 2005. These directors and
          shareholders have waived reimbursement and have considered these services
          as a
          contribution to capital. Accordingly, the contributions have been recorded
          as
          additional paid-in capital.
 
 **NOTE
                  4.**
              **OBLIGATION
                  UNDER CAPITAL LEASE**
 
 The
        Company leases land, building and equipment under a capital lease which contains
        a bargain purchase option which the Company intends to exercise on or before
        its
        expiration on August 1, 2009. The asset and liability under the capital lease
        are recorded at the present value of the minimum lease payments and purchase
        option price. The assets are depreciated over there useful lives as described
        in
        Note 1. Depreciation of the assets under the capital lease is included in
        depreciation expense for 2005.
 
 Future
        minimum lease payments under capital leases as of August 31, 2005 for each
        of
        the next four years and in the aggregate are:
 
 2006
              
              $
              165,0002007
              
              
              300,0002008
              
              
              307,0002009,
                  including bargain purchase option
              
              
              4,881,929Total
                  minimum lease payments
              
              
              5,653,929Less:
                  amount representing interest at 19%
              
              
              (2,250,197
              )Total
                  obligations under capital lease
              
              
              3,403,732Less:
                  current installments of obligations under capital lease
              
              
              (163,680
              )Long-term
                  obligation under capital lease
              
              $
              3,240,052
  **NOTE
                    5.**
                **STOCKHOLDERS'
                    DEFICIT**
 
 During
          the year ended August 31, 2001 the Company issued 30,072,000 shares to
          the
          founders of the corporation for services rendered.
 
 For
          the
          year ended August 31, 2005, the Company's directors and shareholders devoted
          time to the development of the Company. Compensation expense totaling $50,000
          has been recorded for the year ended August 31, 2005. These directors and
          shareholders have waived reimbursement and have considered these services
          as a
          contribution to capital. Accordingly, the contributions have been recorded
          as
          additional paid-in capital.
 
 The
          Company effected a 3-for-1 stock split in September 2004 of all outstanding
          shares of capital stock. All references to share and per share data have
          been
          retroactively adjusted to reflect the stock split.
 
 **NOTE
                    6.**
                **SUPPLEMENTAL
                    CASH FLOW INFORMATION**
 
 During
          the period ended August 31, 2005 there was $803 in interest (2004 - $Nil)
          and no
          taxes paid by the Company.
  Non
          cash
          financing and investing activities includes the acquisition of property
          and
          equipment under capital lease in the amount of $3,350,564 and services
          provided
          by shareholders in the amount of $50,000 for the year ended August 31,
          2005.
 F-10
 *Table
            of Contents*
 *Index
            to Financial
            Statements*
  **EASY.COM,
        INC. & SUBSIDIARY**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 
 **NOTE
                  7.**
              **COMMITMENT**
 
 In
        August
        2005, the Company entered into a land, building and equipment lease agreement
        for a facility to be used for production and head office. This four-year
        lease
        commenced August 1, 2005, and is classified as a capital lease as it contains
        a
        bargain purchase option (see note 5). As of August 31, 2005, future obligations
        under the terms of this lease aggregated $5,653,929, including $2,577,557
        in
        interest.
  In
          December 2005, the Company entered into a lease for their corporate head
          office
          for a period of three years, commencing on January 1, 2006 and terminating
          on
          December 31, 2006. The annual lease payment is approximately
          $88,000.
 **NOTE
                  8.**
              **CONTINGENT
                  LIABILITY**
 
 Royal
        Spring Water Inc. is involved in litigation with a former employee. The former
        employee has filed a complaint against the company, alleging wrongful
        termination. The Company has filed a Cross-Complaint against this former
        employee, which we believe has merit and will result in either a recovery
        for
        Royal Spring Water or an offset in excess of any claim by the former
        employee.
 
 Management
        and legal counsel for the Company are of the opinion that the former employee’s
        claim is without merit. Accordingly, the financial statements do not include
        any
        adjustments to reflect the possible outcome of this matter.
 
 **NOTE
                  9.**
              **SUBSEQUENT
                  EVENTS**
  Between
          November 2005 and May 2006, two shareholders/officers of the Company advanced
          approximately $1,000,000 to the Company to facilitate working capital
          requirements.
 
 In
          April
          2006, the Company filed Articles of Merger in Nevada and legally combined
          the
          entities of Easy.com and Royal Spring Water Inc. They concurrently changed
          the
          name of the surviving entity to Royal Spring Water, Inc.
 F-11