UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





x
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934





For the
quarterly period ended March 31,
2010




 ̈TRANSITION
REPORT UNDER
SECTION 13 OR 15(d) OF THE EXCHANGE ACT


For the
transition period from _____________________ to ______________





Commission
file number 000-50903





FLURIDA
GROUP, INC.


((Exact name of
registrant as specified in its charter)





Nevada
            
            3469
            
            26-0688130(State or other jurisdiction of
              incorporation or organization)
            
            (Primary Standard
              Industrial Classification
              Code Number)
            
            IRS I.D.





800
      West Fifth Avenue, Suite 210B
              Naperville,
      IL
            
            60563(Address
      of principal executive offices)
            
            (Zip
      Code)





Issuer’s
telephone number:  630-778-8519





N/A







(Former
name, former address and former three months, if changed since last
report)





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  ̈





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.





Large
      accelerated filer
             ̈
            
            Accelerated
      filer
            
             ̈Non-accelerated
      filer
             ̈
            
            Smaller
      Reporting Company
            
            x





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes  ̈No
x





As of May
1, 2010 there were 38,990,827 shares issued and outstanding of the registrant’s
common stock.








TABLE
OF CONTENTS





PART
      I — FINANCIAL INFORMATION
                3Item
      1.  Financial Statements.Item
      2.  Management’s Discussion and Analysis or Plan of
      Operation.
                23Item
      3.  Quantitative and Qualitative Disclosure about Market
      Risk
                28Item
      4.  Controls and Procedures.
                28PART
      II — OTHER INFORMATION
                29Item
      1.  Legal Proceedings.
                29Item
      2.  Unregistered Sales of Equity Securities and Use of
      Proceeds.
                29Item
      3.  Defaults Upon Senior
Securities
                29Item
      4.  Submission of Matters to a Vote of Security
      Holders.
                29Item
      5.  Other Information.
                29Item
      6.  Exhibits.
                30


2




PART
I — FINANCIAL INFORMATION


FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 
 Financial
Statements
 (Unaudited)
 
 As
of March 31, 2010, 2009, and 2008
 
 3
  Table
of Contents
 
 Condensed
      Consolidated Balance Sheets
                  
                  5Condensed
      Consolidated Statement of Operation
                  
                  6Condensed
      Consolidated Shareholders Equity
                  
                  7Condensed
      Consolidated Statement of Cash Flows
                  
                  8Notes
      to Condensed Consolidated Financial Statements
                  
                  9
 
 4
  FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 CONSOLIDATED
BALANCE SHEETS
 March 31
                    
                    
                    December 31
                    
                    
                    December 312010
                    
                    
                    2009
                    
                    
                    2008(
      Unaudited)ASSETSCurrent
      assets:Cash
      and cash equivalents
                    
                    $
                    318,204
                    
                    
                    $
                    700,959
                    
                    
                    $
                    605,932Accounts
      receivable, net
                    
                    
                    1,579,403
                    
                    
                    
                    876,375
                    
                    
                    
                    479,431Inventory
                    
                    
                    1,375,132
                    
                    
                    
                    1,253,869
                    
                    
                    
                    618,151Total
      Current Assets
                    
                    $
                    3,272,739
                    
                    
                    $
                    2,831,203
                    
                    
                    $
                    1,703,514Property,
      plant and equipment, net
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -Other
      assets:Loan
      to Supplier
                    
                    $
                    278,091
                    
                    
                    $
                    278,091
                    
                    
                    $
                    -Accrued
      Interest Receivable
                    
                    
                    11,080
                    
                    
                    
                    7,389
                    
                    
                    
                    -Total
      Other Assets
                    
                    $
                    289,171
                    
                    
                    $
                    285,480
                    
                    
                    $
                    -TOTAL
      ASSETS
                    
                    $
                    3,561,910
                    
                    
                    $
                    3,116,683
                    
                    
                    $
                    1,703,514LIABILITIES
      & EQUITYCurrent
      liabilities:Loans
      from shareholders
                    
                    $
                    -
                    
                    
                    $
                    -
                    
                    
                    $
                    -Account
      Payable
                    
                    
                    2,178,220
                    
                    
                    
                    1,830,077
                    
                    
                    
                    626,868Unearned
      Revenue
                    
                    
                    60,000
                    
                    
                    
                    -
                    
                    
                    
                    -Credit
      Card Payable
                    
                    
                    -
                    
                    
                    
                    656
                    
                    
                    
                    1,269Total
      Current Liabilities
                    
                    $
                    2,238,220
                    
                    
                    $
                    1,830,733
                    
                    
                    $
                    628,137Stockholders'
      Equity:Common
      stock, $0.001 par value;200,000,000
      shares authorized;38,990,827
      shares issued and outstanding.
                    
                    $
                    38,991
                    
                    
                    $
                    38,991
                    
                    
                    $
                    38,991Paid-in
      capital
                    
                    
                    1,221,613
                    
                    
                    
                    1,221,613
                    
                    
                    
                    1,221,613Deficit
      accumulated during the development stage
                    
                    
                    29,936
                    
                    
                    
                    (23,633
                    )
                    
                    
                    (214,698
                    )Accumulated
      other comprehensive Income(Loss)
                    
                    
                    33,150
                    
                    
                    
                    48,979
                    
                    
                    
                    29,471Total
      stockholders' equity
                    
                    $
                    1,323,690
                    
                    
                    $
                    1,285,950
                    
                    
                    $
                    1,075,377TOTAL
      LIABILITIES & EQUITY
                    
                    $
                    3,561,910
                    
                    
                    $
                    3,116,683
                    
                    
                    $
                    1,703,514
 
 5
  FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 CONSOLIDATED
STATEMENT OF OPERATION
 Cumulative fromThree
                    
                    
                    Three
                    
                    
                    Three
                    
                    
                    December 19, 2006Months Ended
                    
                    
                    Months Ended
                    
                    
                    Months Ended
                    
                    
                    (Date of Inception)March 31
                    
                    
                    March 31
                    
                    
                    March 31
                    
                    
                    Through2010
                    
                    
                    2009
                    
                    
                    2008
                    
                    
                    March 31, 2010Unaudited
                    
                    
                    Unaudited
                    
                    
                    Unaudited
                    
                    
                    UnauditedRevenues:
                    
                    $
                    2,186,665
                    
                    
                    $
                    1,504,324
                    
                    
                    $
                    -
                    
                    
                    $
                    11,747,752Cost
      of Goods Sold
                    
                    $
                    1,938,730
                    
                    
                    $
                    1,416,293
                    
                    
                    $
                    -
                    
                    
                    $
                    10,649,429Gross
      Profit
                    
                    $
                    247,935
                    
                    
                    $
                    88,030
                    
                    
                    $
                    -
                    
                    
                    $
                    1,098,323Operating
      expenses:Research
      and development
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -Selling,
      general and administrative expenses
                    
                    
                    198,057
                    
                    
                    
                    137,738
                    
                    
                    
                    105,118
                    
                    
                    
                    1,069,799Depreciation
      and amortization expenses
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -Total
      Operating Expenses
                    
                    
                    198,057
                    
                    
                    
                    137,738
                    
                    
                    
                    105,118
                    
                    
                    
                    1,069,799Operating
      Income (Loss)
                    
                    $
                    49,878
                    
                    
                    $
                    (49,708
                    )
                    
                    $
                    (105,118
                    )
                    
                    $
                    28,524Investment
      income, net
                    
                    $
                    3,691
                    
                    
                    $
                    496
                    
                    
                    $
                    2,423
                    
                    
                    $
                    33,740Interest
      Expense, net
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    $
                    625Income
      (Loss) before taxes
                    
                    $
                    53,569
                    
                    
                    $
                    (49,212
                    )
                    
                    $
                    (102,695
                    )
                    
                    $
                    61,639Income
      (Loss) tax expense
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    $
                    31,703Net
      Income (Loss)
                    
                    $
                    53,569
                    
                    
                    $
                    (49,212
                    )
                    
                    $
                    (102,695
                    )
                    
                    $
                    29,936Net
      Income (Loss) per common share-Basics
                    
                    $
                    0.00
                    
                    
                    $
                    (0.00
                    )
                    
                    $
                    (0.00
                    )
                    
                    $
                    0.00Net
      Income (Loss) per common share-Diluted
                    
                    $
                    0.00
                    
                    
                    $
                    (0.00
                    )
                    
                    $
                    (0.00
                    )
                    
                    $
                    0.00Other
      comprehensive Income(Loss), net of tax:Foreign
      currency translation adjustments
                    
                    
                    (15,829
                    )
                    
                    
                    (14,447
                    )
                    
                    
                    7,095
                    
                    
                    
                    33,150Total
      other comprehensive Income(Loss)
                    
                    $
                    (15,829
                    )
                    
                    $
                    (14,447
                    )
                    
                    $
                    7,095
                    
                    
                    $
                    33,150Comprehensive
      Income (Loss)
                    
                    $
                    37,740
                    
                    
                    $
                    (63,659
                    )
                    
                    $
                    (95,600
                    )
                    
                    $
                    63,086
  6
  FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 CONSOLIDATED
STATEMENT OF STOCKHOLDERS EQUITY
 FOR
THE PERIOD ENDED MARCH 31, 2010
 
 DeficitAccumulated
                                                                  
                                                                  
                                                                  AccumulatedAdditional
                                                                  
                                                                  
                                                                  During the
                                                                  
                                                                  
                                                                  Other
                                                                  
                                                                  
                                                                  TotalCommon Stock
                                                                  
                                                                  
                                                                  Paid-in
                                                                  
                                                                  
                                                                  Development
                                                                  
                                                                  
                                                                  Comprehensive
                                                                  
                                                                  
                                                                  Stockholders'Shares
                                                                  
                                                                  
                                                                  Amount
                                                                  
                                                                  
                                                                  Capital
                                                                  
                                                                  
                                                                  Stage
                                                                  
                                                                  
                                                                  Income (Loss)
                                                                  
                                                                  
                                                                  EquityNet
      loss for the year endedDecember
      31 , 2006
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (1,500
                                                                  )
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (1,500
                                                                  )Balance,
      December 31, 2006
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (1,500
                                                                  )
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (1,500
                                                                  )Proceeds
      from sale of commonstock
      @0.001 per shareon
      August 20, 2007
                                                                  
                                                                  
                                                                  25,997,760
                                                                  
                                                                  
                                                                  $
                                                                  25,998
                                                                  
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  25,998Issurance
      of common stocksto
      shareholder @0.05 pershare
      on December 10, 2007
                                                                  
                                                                  
                                                                  1,294,000
                                                                  
                                                                  
                                                                  $
                                                                  1,294
                                                                  
                                                                  
                                                                  $
                                                                  63,406
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  64,700Adjustment
      for Exchangerate
      changes
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (126
                                                                  )
                                                                  
                                                                  $
                                                                  (126
                                                                  )Net
      loss for the yearended
      December 31, 2007
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (19,119
                                                                  )
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (19,119
                                                                  )Balance,
      December 31, 2007
                                                                  
                                                                  
                                                                  27,291,760
                                                                  
                                                                  
                                                                  $
                                                                  27,292
                                                                  
                                                                  
                                                                  $
                                                                  63,406
                                                                  
                                                                  
                                                                  $
                                                                  (20,619
                                                                  )
                                                                  
                                                                  $
                                                                  (126
                                                                  )
                                                                  
                                                                  $
                                                                  69,953Issurance
      of commonstocks
      to Williams @ 0.10per
      share on April 15, 2008
                                                                  
                                                                  
                                                                  50,000
                                                                  
                                                                  
                                                                  $
                                                                  50
                                                                  
                                                                  
                                                                  $
                                                                  4,950
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  5,000Issurance
      of common stocksto
      convert loans @0.10per
      share on April 15, 2008
                                                                  
                                                                  
                                                                  11,649,067
                                                                  
                                                                  
                                                                  $
                                                                  11,649
                                                                  
                                                                  
                                                                  $
                                                                  1,153,257
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  1,164,906Adjustment
      for Exchangerate
      changes
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  29,597
                                                                  
                                                                  
                                                                  $
                                                                  29,597Net
      Loss for the periodended
      December 31, 2008
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (194,079
                                                                  )
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  $
                                                                  (194,079
                                                                  )Balance,
      December 31, 2008
                                                                  
                                                                  
                                                                  38,990,827
                                                                  
                                                                  
                                                                  $
                                                                  38,991
                                                                  
                                                                  
                                                                  $
                                                                  1,221,613
                                                                  
                                                                  
                                                                  $
                                                                  (214,698
                                                                  )
                                                                  
                                                                  $
                                                                  29,471
                                                                  
                                                                  
                                                                  $
                                                                  1,075,377Adjustment
      for Exchangerate
      changes
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  19,508
                                                                  
                                                                  
                                                                  $
                                                                  19,508Net
      Income for the yearended
      December 31, 2009
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  191,065
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  191,065Balance,
      December 31, 2009
                                                                  
                                                                  
                                                                  38,990,827
                                                                  
                                                                  
                                                                  $
                                                                  38,991
                                                                  
                                                                  
                                                                  $
                                                                  1,221,613
                                                                  
                                                                  
                                                                  $
                                                                  (23,633
                                                                  )
                                                                  
                                                                  $
                                                                  48,979
                                                                  
                                                                  
                                                                  $
                                                                  1,285,950Adjustment
      for Exchangerate
      changes
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  (15,829
                                                                  )
                                                                  
                                                                  $
                                                                  (15,829
                                                                  )Net
      Income for the yearended
      March 31, 2010
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  53,569
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  $
                                                                  53,569Balance,
      March 31, 2010
                                                                  
                                                                  
                                                                  38,990,827
                                                                  
                                                                  
                                                                  $
                                                                  38,991
                                                                  
                                                                  
                                                                  $
                                                                  1,221,613
                                                                  
                                                                  
                                                                  $
                                                                  29,936
                                                                  
                                                                  
                                                                  $
                                                                  33,150
                                                                  
                                                                  
                                                                  $
                                                                  1,323,690
 
 7
  FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 CONSOLIDATED
STATEMENT OF CASH FLOWS
 Cumulative fromThree
                                      
                                      
                                      Three
                                      
                                      
                                      Three
                                      
                                      
                                      December 19, 2006Months Ended
                                      
                                      
                                      Months Ended
                                      
                                      
                                      Months Ended
                                      
                                      
                                      (Date of Inception)March 31
                                      
                                      
                                      March 31
                                      
                                      
                                      March 31
                                      
                                      
                                      Through2010
                                      
                                      
                                      2009
                                      
                                      
                                      2008
                                      
                                      
                                      March 31, 2010Unaudited
                                      
                                      
                                      Unaudited
                                      
                                      
                                      Unaudited
                                      
                                      
                                      UnauditedOperating
      Activities:Net
      Income (Loss)
                                      
                                      $
                                      53,569
                                      
                                      
                                      $
                                      (49,212
                                      )
                                      
                                      $
                                      (102,695
                                      )
                                      
                                      $
                                      29,936Adjustments to
      reconcile net income to net cash provided by
      operating activities:Non-cash
      portion of share based legal fee expense
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      5,000Inventory
                                      
                                      
                                      (121,263
                                      )
                                      
                                      
                                      (398,472
                                      )
                                      
                                      
                                      
                                      
                                      
                                      
                                      (1,375,132
                                      )Account
      receivable
                                      
                                      
                                      (703,028
                                      )
                                      
                                      
                                      (332,021
                                      )
                                      
                                      
                                      
                                      
                                      
                                      
                                      (1,579,403
                                      )Loan
      to supplier
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      (278,091
                                      )Accrued
      interest receivable
                                      
                                      
                                      (3,691
                                      )
                                      
                                      
                                      
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      (11,080
                                      )Unearned
      revenue
                                      
                                      
                                      60,000
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      60,000Decrease  in
      other payable
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      (1,500
                                      )Increase
      in account payable
                                      
                                      
                                      348,143
                                      
                                      
                                      
                                      577,857
                                      
                                      
                                      
                                      14,335
                                      
                                      
                                      
                                      2,178,220Decrease
      in credit card payable
                                      
                                      
                                      (656
                                      )
                                      
                                      
                                      (631
                                      )
                                      
                                      
                                      
                                      
                                      
                                      
                                      -Net
      cash provided by operating activities
                                      
                                      $
                                      (366,926
                                      )
                                      
                                      $
                                      (202,479
                                      )
                                      
                                      $
                                      (88,360
                                      )
                                      
                                      
                                      (972,050
                                      )Investing
      Activities:Organization
      cost
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -Net
      cash provided by investing activities
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      -Financing
      Activities:Proceeds
      from issuance of common stock
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      90,698Repay
      loans to shareholders
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      (25,066
                                      )Proceeds
      from loan from shareholders
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      1,191,472Net
      cash provided by financing activities
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      1,257,104Effect
      of  Exchange Rate on Cash
                                      
                                      $
                                      (15,829
                                      )
                                      
                                      $
                                      (14,447
                                      )
                                      
                                      $
                                      7,095
                                      
                                      
                                      $
                                      33,150Net
      increase (decrease) in cash and cash equivalents
                                      
                                      $
                                      (382,755
                                      )
                                      
                                      $
                                      (216,926
                                      )
                                      
                                      $
                                      (81,265
                                      )
                                      
                                      $
                                      318,204Cash
      and cash equivalents at beginning of the year
                                      
                                      $
                                      700,959
                                      
                                      
                                      $
                                      605,932
                                      
                                      
                                      $
                                      1,249,499
                                      
                                      
                                      $
                                      -Cash
      and cash equivalents at end of the period
                                      
                                      $
                                      318,204
                                      
                                      
                                      $
                                      389,006
                                      
                                      
                                      $
                                      1,168,234
                                      
                                      
                                      $
                                      318,204
 
 8
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
  NOTE
A- BUSINESS DESCRIPTION
 
 Flurida
Group, Inc. (the “Company”), incorporated under the laws of Nevada on December
19, 2006, with registered address at 502 East John Street, Carson City, NV
89706.  Flurida Group, Inc. operates its business in USA as Flurida
Group USA, Inc., the Company’s wholly owned branch located in the State of
Illinois and has principle office at 800 West Fifth Avenue, Suite 210,
Naperville, IL 60563.
 
 Besides
USA operation, Flurida Group, Inc. also established one representative office in
China and one subsidiary in Europe:
 
 Flurida
Group Qingdao Office. (“Flurida Qingdao”): Flurida Group Qingdao Office is
registered on December 10, 2007.  It is a representative office on
behalf of Flurida Group, Inc. to conduct the business of trading services,
distribution, and marketing of the appliance parts in China. The Flurida Group
Qingdao Office is located at Room 301, Unit 1, Yulong Building, 19 Miaoling
Road, Qingdao, China 266061.  The company closed its Flurida Qingdao
China office in July, 2009.
 
 Flurida
Group European S.R.L (“Flurida European”): Flurida Group European S.R.L. was
established on December 28, 2007 and is 100% owned by Flurida Group,
Inc.  Flurida European is in the business of trading services,
distribution, and marketing of the appliance parts in Europe.  The
Flurida European is located at Via locatelli 2, 21010 Vizzola, Ticino,
VA-Italy.
 
 The
Company’s main business includes sourcing, distribution and marketing of
appliance parts in Asia, Europe, North and South America.
 
 These
parts are manufactured in China by Zhong Nan Fu Rui Mechanical Electronics
Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”).  It was established in
2005 specializing in home appliance components and subassemblies manufacturing,
and located in Qingdao City, Shandong Province, China.  On September
18, 2007, Flurida Group, Inc. signed a long-term distribution agreement with
Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd.  Zhong
Nan Fu Rui is a Chinese manufacturing company owned 100% by Mr. Jianfeng Ding,
the founder of the Company.
 
 9
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B – SIGNIFICANT ACCOUNTING POLICIES
 
 Basis of
accounting
 
 The
financial statements reflect the assets, revenues and expenditures of the
Company on the accrued basis of accounting.
 
 Principles of
Consolidation
 
 The
consolidated financial statements of the Company include the accounts of Flurida
Group USA and Flurida Group European S.R.L.  All significant
intercompany balances and transactions have been eliminated in
consolidation.
 
 Use of
Estimates
 
 The
preparation of financial statements in conformity with generally accepted
accounting principles in the United States of America requires management to
make estimates and assumptions that affect certain amounts reported in the
financial statements and disclosures.  Accordingly, actual results
could differ from those estimates.
 
 Cash and Cash
Equivalents
 
 The
Company considers all highly-liquid investments with an original maturity of
three months or less when purchased to be cash equivalents.
 
 Foreign Currency
Translation
 
 The
Company has determined the United States dollars to be its functional currency
for Flurida Group USA and European Euro to be its functional currency in
European business.  Assets and liabilities were translated to U.S.
dollars at the period-end exchange rate.  Statement of operations
amounts were translated to U.S. dollars using the first date of each month
during the year.  Gains and losses resulting from translating foreign
currency financial statements are accumulated in other comprehensive income
(loss), a separate component of shareholders’ equity.
 
 Property, Plant, and
Equipment Depreciation
 
 Property,
plant, and equipment are stated at cost.  Depreciation is being
provided principally by straight line methods over the estimated useful lives of
the assets.  As of March 31, 2010, there were no fixed assets in the
Company’s balance sheets.
 
 10
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B – SIGNIFICANT ACCOUNTING POLICIES
 
 Basics and Diluted Net Loss
Per Common Share
  Basic
earnings per share is computed by dividing income available to common
shareholders (the numerator) by the weighted-average number of common shares
outstanding (the denominator) for the period. Diluted earnings per share assume
that any dilutive convertible securities outstanding were converted, with
related preferred stock dividend requirements and outstanding common shares
adjusted accordingly. It also assumes that outstanding common shares were
increased by shares issuable upon exercise of those stock options for which
market price exceeds the exercise price, less shares which could have been
purchased by us with the related proceeds. In periods of losses, diluted loss
per share is computed on the same basis as basic loss per share as the inclusion
of any other potential shares outstanding would be anti-dilutive.
 
 The
Company only issued one type of shares, i.e., common shares
only.  There are no other types securities were
issued.  Accordingly, the diluted and basics net loss per common share
are the same.
 
 Revenues
 
 Net
revenues include sales of appliance parts in Asia, Europe, and North America.
Flurida Group, Inc recognizes revenue for these products when it is realized or
realizable and earned.  Revenue is considered realized and earned when
persuasive evidence of an arrangement exists; delivery has occurred or services
have been rendered; the Company’s fee to its customer is fixed or determinable;
and collection of the resulting receivable is reasonably assured.
  Revenues
are recognizedfrom product sales
upon shipment, which is the point in time when risk of loss is transferred to
the customer, net of estimated returns and allowances.
 
 Flurida
Group, Inc had total revenue of $2,186,665 including $ 1,413,669 consignment
sales to Electrolux, and $ 772,996 regular sales in first quarter ended at March
31, 2010.
 
 From the
period of January to March 2010, the Company sold total quantity of 23,730
icemakers and 411,264 motors to an US company, Electrolux Mexico, located at
Springfield, TN for $ 1,413,669 as consignment sales.  The icemakers
and motors were manufactured and supplied by Zhong Nan Fu Rui; and Qingdao
Fubida Electronics Co., Ltd.  All the icemakers and motors were
shipped out at FOB shipping point Qingdao, China.
 
 11
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Revenues
(Continued)
 
 The
Company sold total quantity of 60,480 motors to another US company, Master
Precision Global (MPG), a sub-assembler to Electrolux, for $ 231,034. The motors
were manufactured and supplied by Zhong Nan Fu Rui. and shipped out at FOB
shipping point at Qingdao, China.
 
 Also, the
company sold some related refrigerator appliance parts and 15 pieces icemakers
to Electrolux North Carolina for $13,023. The parts were manufactured and
supplied by Zhong Nan Fu Rui, and were shipped out at FOB shipping point at
Qingdao, China.
 
 In the
first quarter of 2010, the company sold total quantity of 4,480 Motor, 26,108
pieces Dac Box, and 37,440 Magnet to Electrolux Hungry for $ 164,980; the
magnets were manufactured and supplied by Shanghai Fulu International Trading
Co., Ltd.; all the parts were shipped out at FOB shipping point at Shanghai,
China.  The dac Boxes were manufactured and supplied by Qingdao Fubida
Electronics Co., Ltd and the motors were manufactured and supplied by Zhong Nan
Fu Rui, and all of those parts were shipped out at FOB shipping point at
Qingdao, China.
 
 The
company sold total quantity of 3,500 Motor, 1,000Lamp, 27,350 Dac Box, 12,100
pieces refrigerator relating parts, and 37,080 Magnet to Electrolux Europe for
$237,632 to Eletrolux Italy. The 37,080 magnets were manufactured and supplied
by Shanghai Fulu International Trading Co., Ltd.; all the parts were shipped out
at FOB shipping point at Shanghai, China.  The motors were
manufactured and supplied by Zhong Nan Fu Rui and the Dac Boxes and other
related refrigerator appliance parts were  manufactured and supplied
by Qingdao Fubida Electronics Co., Ltd., and were shipped out at FOB shipping
point at Qingdao, China.
 
 Also, the
company sold total quantity of 2,880 pieces Dac Box and 1,500 Motors to
Electrolux Lehel KFT for $ 18,641. The dac Boxes were manufactured and supplied
by Qingdao Fubida Electronics Co., Ltd and the motors were manufactured and
supplied by Zhong Nan Fu Rui, and all of those parts were shipped out at FOB
shipping point at Qingdao, China.
 
 12
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Revenues
(Continued)
 
 In the
first quarter of 2010, the company sold some related refrigerator appliance
parts worldwide for $ 107,686.  The parts were manufactured and
supplied by Zhong Nan Fu Rui, Qingdao Fubida Electronics Co., Ltd, and Shanghai
Fulu International Trading Co., Ltd.  All the parts were shipped out
at FOB shipping point Shanghai and Qingdao, China
 
 In
summary, as of March 31, 2010, the Company incurred the total revenue of
$2,186,665 and cost of goods sold $ 1,938,730 respectively.  The cost
of goods sold is also discussed in Note C, Related Party
Transactions.
 
 Comprehensive
Income
 
 The
company’s comprehensive income is comprised of net income, unrealized gains and
losses on marketable securities classified foreign currency translation
adjustments, and unrealized gains and losses on derivative financial instruments
related to foreign currency hedging.
 
 Concentration of credit
risk
 
 The
Company maintains its cash in bank accounts which, at times, may exceed the
federally insured limits.  The Company has not experienced any losses
in such accounts and believes it is not exposed to any significant credit risk
on cash.
 
 Payroll
Expense
 
 Beginning
at 2008, Flurida Qingdao’s Representative office hired 7 full time employees to
take care of daily management and administrative activities for the
Company.  Flurida Group USA began to have payroll for officers at
January 2009.
 
 Start
from July 1, 2009, Flurida Qingdao Representative Office was closed, and there’s
no more payroll expenses incurred since then. And Flurida Group USA hired two
employees to taking care of the office and marketing activities.
 
 13
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Payroll Expense
(Continue)
 
 The
consolidated total payroll expense for the period ended March 31, 2010 was $
108,736.  The payroll expense details are listed as
follows:
 Three Months Ended
                  
                  
                  Three Months Ended
                  
                  
                  Three Months EndedMarch 31, 2010
                  
                  
                  March 31, 2009
                  
                  
                  March 31, 2008Payroll
      Expense - ERHosing
      public accumulate fund -ER
                  
                  $
                  -
                  
                  
                  $
                  361.48
                  
                  
                  $
                  366.70Social  insurance-ER
                  
                  
                  0.00
                  
                  
                  
                  1,785.09
                  
                  
                  
                  1,215.12State
      Unemployment Tax
                  
                  
                  1,646.34US
      Medicare Tax - ER
                  
                  
                  1,442.46
                  
                  
                  
                  579.99
                  
                  
                  
                  -US
      Social Security Tax -ER
                  
                  
                  6,167.76
                  
                  
                  
                  2,479.34
                  
                  
                  
                  -Payroll
      Expense - ER - Other
                  
                  
                  0.00
                  
                  
                  
                  916.62
                  
                  
                  
                  1,010.63Total
      Payroll Expense - ER
                  
                  
                  9,256.56
                  
                  
                  
                  6,122.52
                  
                  
                  
                  2,592.45Payroll
      Expenses - EEFederal
      Tax Withholding
                  
                  
                  14,858.40
                  
                  
                  
                  8,000.01
                  
                  
                  
                  -Housing
      public accumulate fund -EE
                  
                  
                  0.00
                  
                  
                  
                  361.47
                  
                  
                  
                  366.69Net
      Wage Payment-EE
                  
                  
                  73,726.98
                  
                  
                  
                  40,483.34
                  
                  
                  
                  25,354.48Social
      Insurance-EE
                  
                  
                  0.00
                  
                  
                  
                  606.06
                  
                  
                  
                  412.53State
      Tax Withholding
                  
                  
                  3,284.40
                  
                  
                  
                  800.00
                  
                  
                  
                  -US
      Medicare Tax -EE
                  
                  
                  1,442.46
                  
                  
                  
                  579.99
                  
                  
                  
                  -US
      Social Security Tax - EE
                  
                  
                  6,167.76
                  
                  
                  
                  2,480.01
                  
                  
                  
                  -Total
      Payroll Expenses - EE
                  
                  
                  99,480.00
                  
                  
                  
                  53,310.88
                  
                  
                  
                  26,133.70Total
      Payroll Expense
                  
                  $
                  108,736.56
                  
                  
                  $
                  59,433.40
                  
                  
                  $
                  28,726.15
 
 The
housing public accumulated fund and social insurance were paid by both employer
and employees in China; the employee portion of housing public accumulated fund
and social insurance was withheld by employer, and then submitted to local tax
authority in China.
 
 Started
from January 2010, Flurida Group had salaries for officers Jianfeng Ding, Yaru
Huang, and Ying Zhong for $200,000, $70,000, and $70,000 respectively. The
Social Security tax and Medicare tax were paid by both employer and employees in
USA; employees also withheld portion of Federal and State tax calculate by each
individual’s status. All of the tax was submitted to Internal Revenue Service
and local government at a monthly basis.
 
 14
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Operating
Expense
 
 Below
table list the detail operating expense for the period ended at March 31, 2010,
2009, and 2008.
 Three Months Ended
                        
                        
                        Three Months Ended
                        
                        
                        Three Months EndedMarch 31, 2010
                        
                        
                        March 31, 2009
                        
                        
                        March 31, 2008ExpenseBank
      Service Charges
                        
                        $
                        350.11
                        
                        
                        $
                        446.96
                        
                        
                        $
                        660.54Administration
      Expense
                        
                        
                        4,910.00
                        
                        
                        
                        -
                        
                        
                        
                        -Business
      operation tax
                        
                        
                        578.65
                        
                        
                        
                        1,546.77
                        
                        
                        
                        52.99Business
      Registration
                        
                        
                        423.50
                        
                        
                        
                        675.00
                        
                        
                        
                        807.36Certification
      Expense
                        
                        
                        15,608.94
                        
                        
                        
                        -
                        
                        
                        
                        -Commission
                        
                        
                        5,495.33
                        
                        
                        
                        -
                        
                        
                        
                        -Computer
      & Internet Expenses
                        
                        
                        217.14
                        
                        
                        
                        -
                        
                        
                        
                        -Flurida
      Europe Operating Expense
                        
                        
                        21,336.25
                        
                        
                        
                        8,928.00
                        
                        
                        
                        31,632.82Gift
      & Promotion
                        
                        
                        259.66
                        
                        
                        
                        -
                        
                        
                        
                        -Industry
      Show
                        
                        
                        100.00
                        
                        
                        
                        16,895.00
                        
                        
                        
                        -Insurance
      Expense
                        
                        
                        -
                        
                        
                        
                        2,627.72
                        
                        
                        
                        -Meals
      and Entertainment
                        
                        
                        -
                        
                        
                        
                        687.39
                        
                        
                        
                        -Office
      Supplies
                        
                        
                        1,788.29
                        
                        
                        
                        353.15
                        
                        
                        
                        68.45Parking
      fee
                        
                        
                        4.60
                        
                        
                        
                        180.00
                        
                        
                        
                        -Payroll
      Expense - ER
                        
                        
                        9,256.56
                        
                        
                        
                        6,122.52
                        
                        
                        
                        2,592.45Payroll
      Expenses - EE
                        
                        
                        99,480.00
                        
                        
                        
                        53,310.88
                        
                        
                        
                        26,133.70Postage
      & Shipping
                        
                        
                        353.22
                        
                        
                        
                        1,052.04
                        
                        
                        
                        2,038.53Professional
      Fees
                        
                        
                        21,486.68
                        
                        
                        
                        30,200.00
                        
                        
                        
                        29,412.27Repair
      & Maintenance
                        
                        
                        178.12
                        
                        
                        
                        -
                        
                        
                        
                        -Rent
      Expense
                        
                        
                        5,130.00
                        
                        
                        
                        5,175.00
                        
                        
                        
                        6,820.00Telephone
      Expense
                        
                        
                        809.51
                        
                        
                        
                        1,358.27
                        
                        
                        
                        753.21Transfer
      Agent ServiceSet
      up & Application Fee
                        
                        
                        0.00
                        
                        
                        
                        1,250.00
                        
                        
                        
                        -Total
      Transfer Agent Service
                        
                        
                        0.00
                        
                        
                        
                        1,250.00
                        
                        
                        
                        -Travel
      ExpenseAir
      agent fee
                        
                        
                        
                        
                        
                        
                        172.19
                        
                        
                        
                        349.40Airfare
                        
                        
                        5,191.30
                        
                        
                        
                        2,715.82
                        
                        
                        
                        1,391.80Travel
      Expense - Other
                        
                        
                        2,535.77
                        
                        
                        
                        -
                        
                        
                        
                        -Hotel
      Expense
                        
                        
                        2,280.59
                        
                        
                        
                        3,836.58
                        
                        
                        
                        2,404.06Total
      Travel Expense
                        
                        
                        10,007.66
                        
                        
                        
                        6,724.59
                        
                        
                        
                        4,145.26Utilities
                        
                        
                        282.64
                        
                        
                        
                        204.62
                        
                        
                        
                        -Total
      Expense
                        
                        $
                        198,056.86
                        
                        
                        $
                        137,737.91
                        
                        
                        $
                        105,117.58
 
 15
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Inventory
 
 On June,
2008, Flurida Group, Inc signed a consigned inventory agreement with Electrolux
Home Products De Mexico, S.A. DEC.V. (Electrolux).  Under the term of
the agreement, the supplier, Flurida Group, Inc, agreed to produce, to maintain
the transit the customized products per Electrolux’s specification. Electrolux
maintain a storage location within Electrolux’s Juarez site for consigned
inventory. And Flurida Group, Inc is facilitated to use of Electrolux’s storage
location at such site to the sale of products to Electrolux; Electrolux will
provide labor resources for receipt, stock up, and pulls of consigned products.
Flurida Group, Inc. retains title and ownership of products while in transit to
Electrolux’s site and while stored in the consigned inventory
location.
 Title and
ownership will pass to Electrolux when they withdraw products from the consigned
inventory location. Upon withdrawal, Electrolux will pay for it under the
payment term stated in the purchasing order correspond with the withdraw
products.
 Products
residing in the consigned inventory for 90 days with no activity due to non
communicated demand change will no longer qualify for consignment, and will be
considered as withdrawn product after 90 days. Accordingly, title passage and
invoicing shall occur on such product per the term.
 
 At the
year ended December 31, 2009, there was $1,253,869 inventory for Flurida Group,
Inc., that had $ 1,022,568 sold out in the first quarter of 2010.
 
 As of
March 31, 2010, there were 43,057 icemakers and 58,968 motors in Electrolux
Juarez warehouse for $647,799 as of consignment inventory.
 
 Also,
there were 289,224 motors in Electrolux Anderson warehouse for $ 727,333 as of
consignment inventory.
 
 As a
result, the company had total of $1,375,132 inventory in the first quarter end
of 2010.
 
 16
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Recent
Accounting Pronouncements
 
 Business
Combinations —The new guidance on business combinations retains the
underlying concepts of the previously issued standard in that the acquirer of a
business is required to account for the business combination at fair value. As
with previous guidance, the assets and liabilities of the acquired business are
recorded at their fair values at the date of acquisition. The excess of the
purchase price over the estimated fair values are recorded as goodwill. The new
pronouncement results in some changes to the method of applying the acquisition
method of accounting for business combinations in a number of significant
aspects. Under the new guidance, all acquisition costs are expensed as incurred
and in-process research and development costs are recorded at fair value as an
indefinite-lived intangible asset. Prior to the adoption, in-process research
and development costs were immediately expensed and acquisition costs were
capitalized. Further, the new guidance generally requires restructuring charges
associated with a business combination to be expensed subsequent to the
acquisition date.
 
 Fair Value Measurements and
Disclosures — The pronouncements define fair value, establish
guidelines for measuring fair value, and expand disclosures regarding fair value
measurements.
 
 Derivative Instruments and Hedging
Activities — The pronouncement requires additional disclosures about
the objectives of derivative instruments and hedging activities, the method of
accounting for such instruments, and a tabular disclosure of the effects of such
instruments and related hedged items on Financial Statements. The pronouncement
does not change the accounting treatment for derivative
instruments.
 
 Variable Interest Entities and
Transfers of FinancialAssets and Extinguishments of
Liabilities — The pronouncement on transfers of financial assets and
extinguishments of liabilities removes the concept of a qualifying
special-purpose entity and removes the exception from applying variable interest
entity accounting to qualifying special-purpose entities. The new guidance on
variable interest entities requires an entity to perform an ongoing analysis to
determine whether the entity’s variable interest or interests give it a
controlling financial interest in a variable interest entity. The pronouncements
are effective for fiscal years beginning after November 15,
2009.
  Management
does not anticipate that the adoption of these standards will have a material
impact on the financial statements.
  17
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Accrued Interest
Receivable
 
 In July
1st,
2009, the company loan $278,090 to its main supplier Zhong Nan Fu Rui Mechanical
electronics Co., Ltd at interest rate of 5.31%, term July 1, 2009 to June 30,
2010. As of March 31, 2010, total of $11,080 accrued interest receivable was
incurred.
 
 Unearned
Revenue
 
 One of
the customers prepaid the Company $ 60,000 for a design of refrigerator part,
which is the service income that the Company haven’t earned as of March 31,
2010.
 
 NOTE
C – RELATED PARTY TRANSACTIONS
 
 Common Shares Issued to
Executive and Non-Executive Officers and Directors
 
 As of
March 31, 2010, total 30,129,960 shares were issued to officers and
directors.  Please see the table below for details:
 
 Name
                                      
                                      Total Shares
                                      
                                      
                                      Total Amount
                                      
                                      
                                      PercentageFenglan  Li
                                      
                                      
                                      165,000
                                      
                                      
                                      
                                      15,750
                                      
                                      
                                      
                                      0.42
                                      %Fuling
      Li
                                      
                                      
                                      115,000
                                      
                                      
                                      
                                      10,750
                                      
                                      
                                      
                                      0.29
                                      %Ying
      Zhong
                                      
                                      
                                      2,000,000
                                      
                                      
                                      
                                      200,000
                                      
                                      
                                      
                                      5.13
                                      %Gian
      Franco Barbieri
                                      
                                      
                                      102,000
                                      
                                      
                                      
                                      9,700
                                      
                                      
                                      
                                      0.26
                                      %Xiaoyong
      Fu
                                      
                                      
                                      750,000
                                      
                                      
                                      
                                      75,000
                                      
                                      
                                      
                                      1.92
                                      %Jianfeng
      Ding & Yaru Huang
                                      
                                      
                                      26,997,760
                                      
                                      
                                      
                                      323,998
                                      
                                      
                                      
                                      69.24
                                      %Total
                                      
                                      
                                      30,129,760
                                      
                                      
                                      $
                                      635,198
                                      
                                      
                                      
                                      77.26
                                      %
 
 *
Based on total issued shares as of March 31, 2010: 38,990,827.
 
 18
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS (Continued)
 
 Cost of Goods
Sold
 
 The
Company’s purchase is primarily from supplier, Zhong Nan Fu Rui Mechanical
Electronics Manufacturing Co., Ltd., owned 100% by the founder of the Company,
Jianfeng Ding.  Due to Jianfeng Ding, and Yaru Huang, husband and
wife, combined hold 74.37% issued common shares for Flurida Group, Inc., the two
entities, Flurida Group, Inc., and Zhong Nan Fu Rui Mechanical Electronics
Manufacturing Co., Ltd., are under conmmon control according to EITF
02-5.
 
 The
products the Company will sell are manufactured in China by Zhong Nan Fu Rui
Mechanical Electronics Manufacturing Co., Ltd. (“Zhong Nan Fu
Rui”).  It was established in 2005 specializing in home appliance
components and subassemblies manufacturing,
and located in Qingdao City, Shandong Province, China.  On September
18, 2007, amended June 25, 2008 and further amended on August 4, 2008, Flurida
Group, Inc. signed a five year distribution agreement with Zhong Nan Fu Rui
Mechanical Electronics Manufacturing Co., Ltd.  Zhong Nan Fu Rui is a
Chinese manufacturing company owned 100% by Mr. Jianfeng Ding, our
president.  Under the terms of the agreement Zhong Nan Fu Rui
authorizes Flurida to be its exclusive sales agent for the ice making product
lines, including icemaker and ice water dispensing systems all over the world.
The ice making product lines shall include the products that Zhong Nan Fu Rui
developed before the agreement signed and the products that will be developed
solely by Zhong Nan Fu Rui during the term of the agreement. Zhong Nan Fu Rui is
the exclusive supplier of the products we sell.  Although the
distribution agreement requires that the purchase price we will pay for these
products will be comparable to what the Flurida would have paid a non-related
party in market price, Mr. Ding may face a conflict in calculating the price the
products are sold to Flurida and the determining amount of products the Flurida
purchase.  However, because Mr. Ding has a fiduciary duty to Flurida
and the shareholders, he has indicated that he will assure strict adherence to
this provision of the agreement and will not require Flurida to purchase a
quantity of products in excess of that which Flurida can reasonably afford or
reasonably expect to sell in within two to three months of our purchase of the
products.
 
 The
management of Flurida Group, Inc. believes that the purchase price for the parts
from Zhong Nan Fu Rui will be market price.  Flurida Group, Inc. and
Zhong Nan Fu Rui are two totally separated entities, i.e., Flurida Group, Inc.
is a USA corporation and will fully comply with USA regulations and USA general
accepted accounting principles; Zhong Nan Fu Rui is a Chinese company and it
will comply with Chinese legal systems.
 
 19
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS (Continued)
 
 Cost of Goods Sold
(Continued)
 
 Flurida
Group, Inc. and Zhong Nan Fu Rui will operate independently.  Zhong
Nan Fu Rui, as a Chinese local manufacturer, will record their manufacturing
costs and inventories based on the Chinese accounting regulations
rulings.  But, when Flurida Group, Inc. purchases the parts from Zhong
Nan Fu Rui, Flurida Group will record the actual costs paid to Zhong Nan Fu Rui
as the costs for inventory of Flurida Group, Inc.  There is no any
relationship for Zhong Nan Fu Rui’s manufacturing historic costs with Flurida
Group’s inventory value.  Specifically, Flurida’s inventory value is
equal to the purchase price or actual cost of the parts purchased from Zhong Nan
Fu Rui, and the purchase price of the parts will be fair market
price.  Flurida Group, Inc. will adopt the first-in and first-out
inventory system according to generally accepted accounting principles in
USA.
 
 The
management of Zhong Nan Fu Rui disclosed to Flurida Group, Inc. that, Zhong Nan
Fu Rui  adopted the cost plus pricing policies with market adjustment,
negotiable with customers.  Zhong
Nan Fu Rui adopted the cost plus system for all the products for all customers
including the product, icemakers exclusively distributed by Flurida Group,
Inc.  Specifically, the selling price is determined by total actual
manufacturing cost of direct manufacturing materials (parts), direct
manufacturing labor, and allocated manufacturing overhead cost, plus 5-10% of
total manufacturing cost.  Zhong Nan Fu Rui’s minimum gross profit
margin is 5%.
 
 Flurida
Group also purchased the products from suppliers, Qingdao Fubida Electronics
Co., Ltd and Shanghai Fulu International Trading Co., Ltd on purchase orders
basis.
 
 Qingdao
Fubida Electronics Co., Ltd, owned 100% indirectly by Jianfeng Ding and Yaru
Huang, husband and wife. Qingdao Fubida Electronics Co., Ltd is a manufacturing
company, and it was established in 2003 specializing in home appliance control
components and subassemblies manufacturing, and located in Qingdao City,
Shandong Province, China. The plant space is around 70,000 sq ft. 14units
injection molding machine up to 600 metric tons.
 
 Shanghai
Fulu International Trading Co., Ltd. a trading company established in 2007,
located at Shanghai, China, 100% owned indirectly by Jianfeng Ding and Yaru
Huang.
 
 20
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS (Continued)
 
 Cost of Goods Sold
(Continued)
 
 In the
period end March 31, 2009, Flurida Group, Inc. purchased icemakers and motors
from Zhong Nan Fu Rui at total cost of $1,280,031 for FOB shipping point at
Qingdao, China.  The total parts price from Zhong Nan Fu Rui consists
of 80% of direct manufacturing materials and labor, 10% of allocated
manufacturing overhead, and 10% of profit margin.
 
 Flurida
Group, Inc. also purchased motors, refrigerator relating parts, and dac boxes
from Qingdao Fubida Electronics Co., Ltd. at total cost of $ 557,140 for FOB
shipping point at Qingdao, China.
 
 In
addition, Flurida Group, Inc. purchased magnets from Shanghai Fulu International
Trading Co., Ltd. a trading company established in 2007, located at Shanghai,
China, 100% owned indirectly by Jianfeng Ding and Yaru Huang, at total cost of $
45,506 for FOB shipping point at Shanghai, China.
 
 To
manufacture the related refrigerator appliance parts, Zhong Nan Fu Rui needs key
parts made in USA, which were purchased through Flurida Group, Inc. in
USA.  The costs of purchasing the parts were $55,053.
 
 Therefore,
for the period ended March 31, 2010, the total cost of goods sold was
$1,938,730.
 
 Loan to
Supplier
 
 At July
1st,2009, Flurida Group, Inc. loan $ 278,091 to the company’s primary
supplier, Zhong Nan Fu Rui. The outstanding balance bears interest at 5.31%,
pursuant to a written agreement, for the term from July 1st 2009 to
June 30th 2010.
This receivable was subsequently paid in full during June 2010.
 
 NOTE
D – SHAREHOLDERS’ EQUITY
 
 During
the year ended December 31, 2008, Flurida Group, Inc has issued total 11,699,067
new shares on April 15, 2008, including 11,649,067 shares issued to loan holders
who converted all the loans to common shares. At the year ended December 31,
2008, Flurida Group, Inc. incurred net loss of $ (194,079). Therefore, the total
stockholders’ equity balance at December 31, 2008 was $ 1,075,377.
 
 21
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE D – SHAREHOLDERS’
EQUITY (Continue)
 
 On April
15, 2008, 50,000 shares issued to Williams Law Group at $ 0.10, for the legal
service value of $5,000.  On April 1, 2008, seven non-affiliated loan
holders asked for repayment of their loans in the aggregate amount of $ 25,066
plus the total interest cost of $624.72, which was paid on the same date, April
1, 2008; meantime, seven additional lenders loaned an aggregate amount of $
9,926.  On April 15, 2008, total loan amount of $1,164,906 was
converted to common shares at price of $0.10 per share, for the total shares of
11,649,067 shares, which were issued to the loans holders.
 
 There
were no new shares issued during the period ending March 31,
2010.  .
 
 Therefore,
as of March 31, 2010 total shares issued and outstanding are
38,990,827.
 
 NOTE
E – GOING CONCERN
 
 The
Company’s short operating history and financial resources raise substantial
doubt about its ability to continue as a going concern.  The financial
statements do not include adjustments that might result from the outcome of this
uncertainty and if the Company is unable to generate significant revenue or
secure financing, then the Company may be required to cease or curtail its
operations.  From the period January to March 2010, the Company
generated sales revenue of $2,186,665, and cumulative net income of $29,936 from
December 19, 2006 (date of inception) through March 31, 2010.  The
Company’s single most concentrated customer is Electrolux located in various
countries.  If Electrolux discontinue the purchase which may be very
unlikely in near future, the Company may face the ability to continue as a going
concern.  However, due to the close relationship between the Company
and its suppliers, Zhong Nan Fu Rui and Qingdao Fubida Electronics Co., which
are 100% owned by the founder, Jianfeng Ding, Zhong Nan Fu Rui and Qingdao
Fubida Electronics Co.’s current customers can be served by the Company for the
same quality of products and services.  Besides, as of March 31, 2010,
the cash and cash equivalent balance was $318,204 , the management believes that
the revenues will be generated and its cash flows will be maintained to cover
its operational costs and the risk of going concern in long term is
significantly low.
 
 22




Item
2.   Management’s Discussion and Analysis or Plan of
Operation.




This
10−Q contains forward-looking statements. Our actual results could differ
materially from those set forth as a result of general economic conditions and
changes in the assumptions used in making such forward-looking statements. The
following discussion and analysis of our financial condition and results of
operations should be read together with the audited consolidated financial
statements and accompanying notes and the other financial information appearing
else where in this report. The analysis set forth below is provided pursuant to
applicable Securities and Exchange Commission regulations and is not intended to
serve as a basis for projections of future events. Refer also to "Cautionary
Note Regarding Forward Looking Statements" and “Risk Factors”
below.





Overview





Our
business is the sale of appliance parts in Asia, Europe, North and South America
and Australia. The main products that we sell to these markets are icemakers,
motors, appliance assemblies.





These
parts are manufactured in China by Zhong Nan Fu Rui Mechanical Electronics
Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”)





Zhong Nan
Fu Rui was established in 2005 specializing in home appliance components and
subassemblies manufacturing, and located in Qingdao City, Shandong Province,
China. On September 18, 2007, amended June 25, 2008 and further amended on
August 4, 2008, Flurida Group, Inc. signed a long-term distribution agreement
with Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd. Zhong Nan
Fu Rui is a Chinese manufacturing company owned 100% by Mr. Jianfeng Ding, our
president.





Flurida
Group also purchased the products from suppliers, Qingdao Fubida Electronics
Co., Ltd, Chuzhou Fuda Mechanical & Electronics Co., Ltd. and Shanghai Fulu
International Trading Co., Ltd on purchase orders basis.





Qingdao
Fubida Electronics Co., Ltd, owned 100% indirectly by Jianfeng Ding and Yaru
Huang, husband and wife. Qingdao Fubida Electronics Co., Ltd is a manufacturing
company, and it was established in 2003 specializing in home appliance control
components and subassemblies manufacturing, and located in Qingdao City,
Shandong Province, China. The plant space is around 70,000 sq ft. 14units
injection molding machine up to 600 metric tons.





Chuzhou
Fuda Mechanical & Electronics Co., Ltd. owned 100% indirectly by Jianfeng
Ding and Yaru Huang, husband and wife is an appliance components and
sub-assemblies manufacturer established on March 18, 2008. Chuzhou Flurida is
located in Chuzhou City, Anhui Province, China. The plant space is around
100,000sq. ft. with 18 molding machine up to 800 metric ton and 6 assemblies
lines for appliance components and assemblies.





Shanghai
Fulu International Trading Co., Ltd. a trading company established in 2007,
located at Shanghai, China, 100% owned indirectly by Jianfeng Ding and Yaru
Huang.





We sell
the following types of appliance parts:





 ̈
            Automatic Refrigerator Build-in
      Icemaker:The automatic refrigerator build-in icemaker is designed
      for household refrigeration products, such as refrigerator, under-counter
      refrigerator, freezer to make the ice cubes
  automatically.


23





 ̈
            Refrigerator Through-Door Ice
      Water System:Refrigeration Through-Door Ice Water System is the
      system that stores the ice cubes harvested from the icemaker, delivered
      and dispensed the ice, crushed ice or water to the refrigerator door
      through the electronic control system at the front of the refrigerator
      door. The through-door ice water system normally includes the following
      assemblies: ice bucket assembly, motor rail assembly, module assembly,
      facade assembly, housing assembly. The ice bucket assembly and the motor
      rail assembly can be located in the freezer, in the refrigerator door and
      or sealed chamber in the refrigerator. The module assembly, facade
      assembly and housing assembly vary according to the specific design from
      each client.





 ̈
            Shade Pole Motor and Motor
      Assembly for Refrigerator or Freezers:The shade pole motor and
      motor assembly is a key part for refrigerators or freezers. Flurida Group
      Inc’s motor part is designed and specified for the refrigerators or
      freezers made by Electrolux, an US company located at Springfield, TN.
      Flurida also supplies the motors and motor assemblies to Electrolux Europe
      facilities in Italy, Hungary.





Results of
Operations





For the three months ended
March 31, 2010 vs. March 31, 2009.





Revenue





Flurida
Group, Inc had total revenue of $2,186,665 including $ 1,413,669 consignment
sales to Electrolux, and $772,996 regular sales in first quarter ended at March
31, 2010, compare with the first quarter revenue of $ 1,504,324 of
2009.





From the
period of January to March 2010, the Company sold total quantity of 23,730
icemakers and 411,264 motors to an US company, Electrolux Mexico, located at
Springfield, TN for $1,413,669 as consignment sales. The icemakers and motors
were manufactured and supplied by Zhong Nan Fu Rui; and Qingdao Fubida
Electronics Co., Ltd. All the icemakers and motors were shipped out at FOB
shipping point Qingdao, China.





The
Company sold total quantity of 60,480 motors to another US company, Master
Precision Global (MPG), a sub-assembler to Electrolux, for $ 231,034. The motors
were manufactured and supplied by Zhong Nan Fu Rui. and shipped out at FOB
shipping point at Qingdao, China.





Also, the
company sold some related refrigerator appliance parts and 15 pieces icemakers
to Electrolux North Carolina for $ 13,023. The parts were manufactured and
supplied by Zhong Nan Fu Rui, and were shipped out at FOB shipping point at
Qingdao, China.





In the
first quarter of 2010, the company sold total quantity of 4,480 Motor, 26,108
pieces Dac Box, and 37,440 Magnet to Electrolux Hungry for $ 164,980; the
magnets were manufactured and supplied by Shanghai Fulu International Trading
Co., Ltd.; all the parts were shipped out at FOB shipping point at Shanghai,
China. The dac Boxes were manufactured and supplied by Qingdao Fubida
Electronics Co., Ltd and the motors were manufactured and supplied by Zhong Nan
Fu Rui, and all of those parts were shipped out at FOB shipping point at
Qingdao, China.


24





The
company sold total quantity of 3,500 Motor, 1,000Lamp, 27,350 Dac Box, 12,100
pieces refrigerator relating parts, and 37,080 Magnet to Electrolux Europe for
$237,632 to Eletrolux Italy. The 37,080 magnets were manufactured and supplied
by Shanghai Fulu International Trading Co., Ltd.; all the parts were shipped out
at FOB shipping point at Shanghai, China. The motors were manufactured and
supplied by Zhong Nan Fu Rui and the Dac Boxes and other related refrigerator
appliance parts were manufactured and supplied by Qingdao Fubida Electronics
Co., Ltd., and were shipped out at FOB shipping point at Qingdao,
China.





Also, the
company sold total quantity of 2,880 pieces Dac Box and 1,500 Motors to
Electrolux Lehel KFT for $ 18,641. The dac Boxes were manufactured and supplied
by Qingdao Fubida Electronics Co., Ltd and the motors were manufactured and
supplied by Zhong Nan Fu Rui, and all of those parts were shipped out at FOB
shipping point at Qingdao, China.





In the
first quarter of 2010, the company sold some related refrigerator appliance
parts worldwide for $ 107,686. The parts were manufactured and supplied by Zhong
Nan Fu Rui, Qingdao Fubida Electronics Co., Ltd, and Shanghai Fulu International
Trading Co., Ltd. All the parts were shipped out at FOB shipping point Shanghai
and Qingdao, China





In
summary, as of March 31, 2010, the Company incurred the total revenue of
$2,186,665 and cost of goods sold $ 1,938,730 respectively.





Cost of
Revenue





Our Costs
of Goods Sold, as we expected will increased slightly due to increasing Chinese
Yuan’s currency exchange rate, labor costs, and raw materials. We anticipate
this trend to continue and may adjust our unit price upward to reduce the impact
of rising costs.





The
Company’s purchase is primarily from supplier, Zhong Nan Fu Rui Mechanical
Electronics Manufacturing Co., Ltd., owned 100% by the founder of the Company,
Jianfeng Ding. Due to Jianfeng Ding, and Yaru Huang, husband and wife, combined
hold 74.37% issued common shares for Flurida Group, Inc., the two entities,
Flurida Group, Inc., and Zhong Nan Fu Rui Mechanical Electronics Manufacturing
Co., Ltd., are under conmmon control according to EITF 02-5.





The
products the Company will sell are manufactured in China by Zhong Nan Fu Rui
Mechanical Electronics Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”). It was
established in 2005 specializing in home appliance components and subassemblies
manufacturing, and located in Qingdao City, Shandong Province, China. On
September 18, 2007, amended June 25, 2008 and further amended on August 4, 2008,
Flurida Group, Inc. signed a five year distribution agreement with Zhong Nan Fu
Rui Mechanical Electronics Manufacturing Co., Ltd. Zhong Nan Fu Rui is a Chinese
manufacturing company owned 100% by Mr. Jianfeng Ding, our president. Under the
terms of the agreement Zhong Nan Fu Rui authorizes Flurida to be its exclusive
sales agent for the ice making product lines, including icemaker and ice water
dispensing systems all over the world. The ice making product lines shall
include the products that Zhong Nan Fu Rui developed before the agreement signed
and the products that will be developed solely by Zhong Nan Fu Rui during the
term of the agreement. Zhong Nan Fu Rui is the exclusive supplier of the
products we sell. Although the distribution agreement requires that the purchase
price we will pay for these products will be comparable to what the Flurida
would have paid a non-related party in market price, Mr. Ding may face a
conflict in calculating the price the products are sold to Flurida and the
determining amount of products the Flurida purchase. However, because Mr. Ding
has a fiduciary duty to Flurida and the shareholders, he has indicated that he
will assure strict adherence to this provision of the agreement and will not
require Flurida to purchase a quantity of products in excess of that which
Flurida can reasonably afford or reasonably expect to sell in within two to
three months of our purchase of the products.


25





The
management of Flurida Group, Inc. believes that the purchase price for the parts
from Zhong Nan Fu Rui will be market price. Flurida Group, Inc. and Zhong Nan Fu
Rui are two totally separated entities, i.e., Flurida Group, Inc. is a USA
corporation and will fully comply with USA regulations and USA general accepted
accounting principles; Zhong Nan Fu Rui is a Chinese company and it will comply
with Chinese legal systems.





Flurida
Group, Inc. and Zhong Nan Fu Rui will operate independently. Zhong Nan Fu Rui,
as a Chinese local manufacturer, will record their manufacturing costs and
inventories based on the Chinese accounting regulations rulings. But, when
Flurida Group, Inc. purchases the parts from Zhong Nan Fu Rui, Flurida Group
will record the actual costs paid to Zhong Nan Fu Rui as the costs for inventory
of Flurida Group, Inc. There is no any relationship for Zhong Nan Fu Rui’s
manufacturing historic costs with Flurida Group’s inventory value. Specifically,
Flurida’s inventory value is equal to the purchase price or actual cost of the
parts purchased from Zhong Nan Fu Rui, and the purchase price of the parts will
be fair market price. Flurida Group, Inc. will adopt the first-in and first-out
inventory system according to generally accepted accounting principles in
USA.





The
management of Zhong Nan Fu Rui disclosed to Flurida Group, Inc. that, Zhong Nan
Fu Rui adopted the cost plus pricing policies with market adjustment, negotiable
with customers. Zhong Nan Fu Rui adopted the cost plus system for all the
products for all customers including the product, icemakers exclusively
distributed by Flurida Group, Inc. Specifically, the selling price is determined
by total actual manufacturing cost of direct manufacturing materials (parts),
direct manufacturing labor, and allocated manufacturing overhead cost, plus
5-10% of total manufacturing cost. Zhong Nan Fu Rui’s minimum gross profit
margin is 5%.





Flurida
Group also purchased the products from suppliers, Qingdao Fubida Electronics
Co., Ltd and Shanghai Fulu International Trading Co., Ltd on purchase orders
basis.





Qingdao
Fubida Electronics Co., Ltd, owned 100% indirectly by Jianfeng Ding and Yaru
Huang, husband and wife. Qingdao Fubida Electronics Co., Ltd is a manufacturing
company, and it was established in 2003 specializing in home appliance control
components and subassemblies manufacturing, and located in Qingdao City,
Shandong Province, China. The plant space is around 70,000 sq ft. 14 units
injection molding machine up to 600 metric tons.





In the
period end March 31, 2009, Flurida Group, Inc. purchased icemakers and motors
from Zhong Nan Fu Rui at total cost of $ 1,280,031 for FOB shipping point at
Qingdao, China. The total parts price from Zhong Nan Fu Rui consists of 80% of
direct manufacturing materials and labor, 10% of allocated manufacturing
overhead, and 10% of profit margin.





Flurida
Group, Inc. also purchased motors, refrigerator relating parts, and dac boxes
from Qingdao Fubida Electronics Co., Ltd. at total cost of $ 557,140 for FOB
shipping point at Qingdao, China.





In
addition, Flurida Group, Inc. purchased magnets from Shanghai Fulu International
Trading Co., Ltd. a trading company established in 2007, located at Shanghai,
China, 100% owned indirectly by Jianfeng Ding and Yaru Huang, at total cost of $
45,506 for FOB shipping point at Shanghai, China.





To
manufacture the related refrigerator appliance parts, Zhong Nan Fu Rui needs key
parts made in USA, which were purchased through Flurida Group, Inc. in USA. The
costs of purchasing the parts were $55,053.





Therefore,
for the period ended March 31, 2010, the Company incurred a total cost of goods
sold of $ 1,983,730 compared to $ 1,416,293 for the three months period ended
March 31, 2009.


26





Expense





Our
operating expenses consist of selling, general and administrative
expenses.





For the
three months period ended March 31, 2010 and 2009, the company had a total of $
198,057and $ 137,738 operating expenses respectively. The primary reasons for
this increase were increases in payroll expenses from $59,433 in the three
months ended March 31, 2009 vs. $108,736 in the three months ended March 31,
2010. And the increase in travel expense expenses from $6,725 in the three
months ended March 31, 2009 vs. $10,008 in the three months ended March 31,
2010. Also, there’s an additional of $ 15,609 Certification Expense of our
products had made the operating expenses raise.





We expect
selling, general, and administrative expenses to increase in future periods as
we initiate a number of marketing and promotional activities.





Commitments
and Contingencies





The
Company has signed a long-term distribution agreement with Zhong Nan Fu Rui
Mechanical Electronics Manufacturing Co., Ltd. Zhong Nan Fu Rui is a Chinese
manufacturing company owned 100% by Mr. Jianfeng Ding, also the founder of
Flurida Group, Inc. Also, on June 2008, the company signed a consigned inventory
agreement with an US company, Electrolux Home Products DE Mexico, S.A.DEC.V
(Electrolux).





Foreign
Currency Translation





The
Company has determined the United States dollars to be its functional currency
for Flurida Group USA; People’s Republic of China Chinese Yuan Renminbi to be
its functional currency in Flurida Qingdao office; and European Euro to be its
functional currency for our Italian subsidiary. Assets and liabilities were
translated to U.S. dollars at the period-end exchange rate. The exchange rate of
issuance of common stocks to shareholders was used as one U.S. dollar to 6.83
Chinese Yuan (RMB). Statement of operations amounts were translated to U.S.
dollars using the historic rate, i.e., the rate at first date of each month
during the year. Gains and losses resulting from translating foreign currency
financial statements are accumulated in other comprehensive income (loss), a
separate component of shareholders’ equity.





Liquidity
and Capital Resources





At March 31
                  
                  
                  At March 312010
                  
                  
                  2009Current
      Ratio
                  
                  
                  1.59
                  
                  
                  
                  1.70Cash
                  
                  $
                  318,204
                  
                  
                  $
                  700,959Working
      Capital
                  
                  $
                  1,323,690
                  
                  
                  $
                  1,285,950Total
      Assets
                  
                  $
                  3,561,910
                  
                  
                  
                  3,116,683Total
      Liabilities
                  
                  $
                  2,238,220
                  
                  
                  
                  1,830,733Total
      Equity
                  
                  $
                  1,323,690
                  
                  
                  
                  1,285,950Total
      Debt/Equity
                  
                  
                  1.69
                  
                  
                  
                  1.42





*Current
Ratio = Current Assets /Current Liabilities





** Total
Debt / Equity = Total Liabilities / Total Shareholders Equity.


27





The
Company had cash and cash equivalents of $318,24 at March 31, 2010 and the
working capital of $1,323,690.





The total
debt of $2,238,220 for March 31, 2010 that is included the amount of $ 2,178,220
accounts payable and $ 60,000 unearned revenue.





Our
independent auditor has indicated that there is substantial doubt about our
ability to continue as a going concern due to the Company’s short operating
history and heavy concentration of customers. The Company’s short operating
history and financial resources raise substantial doubt about its ability to
continue as a going concern. The financial statements do not include adjustments
that might result from the outcome of this uncertainty and if the Company is
unable to generate significant revenue or secure financing, then the Company may
be required to cease or curtail its operations. The Company’s single most
concentrated customer is Electrolux located in various countries. If Electrolux
discontinue the purchase which may be very unlikely in near future, the Company
may face the ability to continue as a going concern. However, from the period
January to March 2010, the Company generated sales revenue of $2,186,665, and
cumulative net income of $29,936 from December 19, 2006 (date of inception)
through March 31, 2010, and besides, as of March 31, 2010, the cash and cash
equivalent balance was $318,204, the management believes that the revenues will
be generated and its cash flows will be maintained to cover its operational
costs and the risk of going concern in long term is significantly
low.




Item
3. Quantitative and Qualitative Disclosure about Market Risk




Not
applicable.




Item
4. Controls and Procedures.




Evaluation of Disclosure
Controls and Procedures





The
Company has established disclosure controls and procedures to ensure that
information required to be disclosed in this quarterly report on Form 10-Q was
properly recorded, processed, summarized and reported within the time periods
specified in the Commission's rules and forms. The Company’s controls and
procedures are designed to ensure that information required to be disclosed by
the Company in the reports that it files or submits under the Act is accumulated
and communicated to the Company’s management, including its principal executive
and principal financial officers to allow timely decisions regarding required
disclosure. A control system, no matter how well conceived or operated, can
provide only reasonable, not absolute, assurance that the objectives of the
control system are met.





We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) at March 31, 2010 based on the evaluation of these
controls and procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15
under the Exchange Act. This evaluation was carried out under the supervision
and with the participation of our Chief Executive Officer and Chief Financial
Officer. Based upon that evaluation, our Chief Executive Officer and Chief
Financial Officer concluded that, at March 31, 2010, our disclosure controls and
procedures are effective.


28





Changes in Internal Control
over Financial Reporting





There
have been no changes in the Company's internal control over financial reporting
that occurred during the Company's last fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the Company's internal
control over financial reporting.




PART
II — OTHER INFORMATION




Item
1. Legal Proceedings.




None.




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




(a)                 Unregistered Sales of Equity
Securities.





The
Registrant did not sell any unregistered securities during the three months
ended March 31, 2010.  However, in March 2010, 572,667 share owned by
21 former employees that were issued under agreements which provided that any
shares issued would be forfeited back to the Company if the shareholder left the
employment of Zhong Nan Fu Rui Mechanical Electronics Co., Ltd. were transferred
to three shareholders, including our attorney and an affiliate of our
management, by cancellation and reissuance.  There was no change in
the issued and outstanding shares.




(b)                 Use of
Proceeds.




None




Item
3. Defaults Upon Senior Securities




None.




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





The
Registrant did not submit any matters to a vote of its security holders during
the three-months ended March 31, 2010.




Item
5. Other Information.





Not
applicable.


29




Item
6. Exhibits.




(a)
Exhibits.





Exhibit
                No.
              
              Document
      Description31.1
              
              CERTIFICATION
      of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002.31.2
              
              CERTIFICATION
      of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002.32.1
              
              CERTIFICATION
      of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      906 OF THE SARBANES-OXLEYACT OF 200232.2
              
              CERTIFICATION
      of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      906 OF THE SARBANES-OXLEYACT OF
2002








*  This
exhibit shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference in any filing under
the Securities
Act of 1933 of the Securities Exchange Act of 1934, whether made before or after
the date hereof and irrespective of any general incorporation language in any
filings.





SIGNATURES





In
accordance with the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.





Flurida
Group, Inc., a Nevada corporation





Title
              
              Name
              
              Date
              
              SignaturePrincipal
      Executive Officer
              
              Jianfeng
      Ding
              
              May
      ***, 2010
              
              /s/
      Jianfeng Ding





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





SIGNATURE
              
              NAME
              
              TITLE
              
              DATE/s/
      Jianfeng Ding
              
              Jianfeng
      Ding
              
              Principal
      Executive Officer and Director
              
              May
      21, 2010/s/
      Yaru Hang
              
              Yaru
      Hang
              
              Principal
      Financial Officer and Principal Accounting Officer
              
              May
      21, 2010


30





EXHIBIT
INDEX





Exhibit
                No.
              
              Document
      Description31.1
              
              CERTIFICATION
      of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002.31.2
              
              CERTIFICATION
      of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002.32.1
              
              CERTIFICATION
      of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      906 OF THE SARBANES-OXLEYACT OF 200232.2
              
              CERTIFICATION
      of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      906 OF THE SARBANES-OXLEYACT OF
2002





*  This
exhibit shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference in any filing under
the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made
before or after the date hereof and irrespective of any general incorporation
language in any filings.


31