| Nevada                                                         |   | 98-0508360                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

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| Balance Sheets                    | F-1 |
|-----------------------------------|-----|
| Statements of Operations          | F-2 |
| Statements of Cash Flows          | F-3 |
| Notes to the Financial Statements | F-4 |

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|                                                                                                                                                                       |   | (Unaudited)March 31,2011$ |       |   | December 31,2010$ |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|------------|--------|-------------------|--------|
|                                                                                                                                                                       |   |                      |       |   |              |   |
| ASSETS                                                                                                                                                                     |   |                      |       |   |              |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |
| Current Assets                                                                                                                                                             |   |                      |       |   |              |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |
| Cash                                                                                                                                                                       |   |                      | 373        |   |              |   | 371 |   |
| Receivables                                                                                                                                                                |   |                      | 3,942      |   |              |   | 4,071 |   |
| Inventory                                                                                                                                                                  |   |                      | 115,823    |   |              |   | 115,823 |   |
| Prepaid consulting fees                                                                                                                                                    |   |                      | 12,230     |   |              |   | 52,109 |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Total Current Assets                                                                                                                                                       |   |                      | 132,368    |   |              |   | 172,374 |   |
| Intangible Assets (Notes 2(l) and 4(a))                                                                                                                                    |   |                      | –    |   |              |   | 22,676 |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Total Assets                                                                                                                                                               |   |                      | 132,368    |   |              |   | 195,050 |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                       |   |                      |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Current Liabilities                                                                                                                                                        |   |                      |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Accounts payable                                                                                                                                                           |   |                      | 103,339    |   |              |   | 81,513 |   |
| Accrued liabilities                                                                                                                                                        |   |                      | 16,389     |   |              |   | 13,357 |   |
| Convertible notes payable (Note 8)                                                                                                                                         |   |                      | 91,354     |   |              |   | 94,869 |   |
| Due to related parties (Note 3(b))                                                                                                                                         |   |                      | 199,619    |   |              |   | 173,873 |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Total Liabilities                                                                                                                                                          |   |                      | 410,701    |   |              |   | 363,612 |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Commitments and Contingencies (Notes 1, 3(a) and 6)                                                                                                                        |   |                      |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Subsequent Events (Note 9)                                                                                                                                                 |   |                      |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Stockholders’ Equity (Deficit)                                                                                                                                       |   |                      |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Class A Common Stock (Notes 4 and 5)Authorized: 300,000,000 common shares, with a par value of $0.001Issued and outstanding: 243,322,063 shares (2010 – 207,247,027) |   |                      | 243,322    |   |              |   | 207,247 |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Class B Common StockAuthorized: 100,000,000 common shares, with a par value of $0.001Issued and outstanding: none                                                          |   |                      | –    |   |              |   | – |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Additional Paid-in Capital                                                                                                                                                 |   |                      | 2,226,706  |   |              |   | 2,230,696 |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Class A Common Stock Issuable (Note 4(a))                                                                                                                                  |   |                      | –    |   |              |   | – |   |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Deficit Accumulated During the Development Stage                                                                                                                           |   |                      | (2,748,361 | )      |              |   | (2,606,505 | ) |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Total Stockholders’ Equity (Deficit)                                                                                                                                 |   |                      | (278,333   | )      |              |   | (168,562 | ) |
|                                                                                                                                                                       |   |                      |       |   |              |   |   |   |
| Total Liabilities and Stockholders’ Equity (Deficit)                                                                                                                 |   |                      | 132,368    |   |              |   | 195,050 |   |

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|                                                              |   | Accumulated from January 21, 2005 (Date of Inception) to March 31, 2011$ |       |   | Three MonthsEndedMarch 31,2011$ |   |          | Three MonthsEndedMarch 31,2010$ |   |
|-------------------------------------------------------------------|--------|--------------------------------------------------------------------------|------------|--------|---------------------------------|--------|---------------|---------------------------------|--------|
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Revenue                                                           |   |                                                                     | 477,307    |   |                            |   | –       |                            |   |   | 220 |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Cost of Sales                                                     |   |                                                                     | 214,999    |   |                            |   | –       |                            |   |   | 133 |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Gross Profit                                                      |   |                                                                     | 262,308    |   |                            |   | –       |                            |   |   | 87 |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Expenses                                                          |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Amortization of intangible assets (Note 4(a))                     |   |                                                                     | 689,732    |   |                            |   | 22,676        |                            |   |   | 85,035 |   |
| Consulting (Note 3(a))                                            |   |                                                                     | 292,000    |   |                            |   | 9,000         |                            |   |   | 9,000 |   |
| General and administrative                                        |   |                                                                     | 583,344    |   |                            |   | 32,641        |                            |   |   | 42,077 |   |
| Imputed interest (Note 3(b))                                      |   |                                                                     | 117,770    |   |                            |   | 2,584         |                            |   |   | 1,887 |   |
| Marketing and sales (Note 3(a))                                   |   |                                                                     | 723,401    |   |                            |   | 35,350        |                            |   |   | 67,536 |   |
| Professional fees                                                 |   |                                                                     | 279,466    |   |                            |   | 20,820        |                            |   |   | 30,550 |   |
| Bad debts expense (recovery)                                      |   |                                                                     | 333,328    |   |                            |   | (7,200        | )                               |   |   | (3,350 | ) |
| Commision Expense                                                 |   |                                                                     | 5,900      |   |                            |   | –       |                            |   |   | – |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Total Expenses                                                    |   |                                                                     | 3,024,941  |   |                            |   | 115,871       |                            |   |   | 232,735 |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Net Loss From Operations                                          |   |                                                                     | (2,762,633 | )      |                            |   | (115,871      | )                               |   |   | (232,648 | ) |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Gain on settlement of debt (Note 4(b))                            |   |                                                                     | 99,709     |   |                            |   | –       |                            |   |   | – |   |
|    Accretion of discounts on convertibles (Note 8) |   |                                                                     | (85,437    | )      |                            |   |  (25,985 | )                               |   |   |  – |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Net Loss                                                          |   |                                                                     | (2,748,361 | )      |                            |   | (141,856      | )                               |   |   | (232,648 | ) |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Net Loss Per Share – Basic and Diluted                      |   |                                                                     |       |   |                            |   | –       |                            |   |   | – |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
|                                                              |   |                                                                     |       |   |                            |   |          |                            |   |   |   |   |
| Weighted Average Shares Outstanding                               |   |                                                                     |       |   |                            |   | 226,060,000   |                            |   |   | 171,098,000 |   |

----

|                                                                            |   | Three MonthsEndedMarch 31,2011$ |     |   | Three MonthsEndedMarch 312010$ |   |
|---------------------------------------------------------------------------------|--------|---------------------------------|----------|--------|--------------------------------|--------|
|                                                                            |   |                            |     |   |                           |   |   |   |
| Operating Activities                                                            |   |                            |     |   |                           |   |   |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Net loss                                                                        |   |                            | (141,856 | )      |                           |   | (232,648 | ) |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |                            |     |   |                           |   |   |   |
|    Accretion of discounts on convertible debentures              |   |                            | 25,985   |   |                           |   | – |   |
| Amortization of intangible assets                                               |   |                            | 22,676   |   |                           |   | 85,036 |   |
| Donated costs                                                                   |   |                            | –  |   |                           |   | – |   |
| Imputed interest                                                                |   |                            | 2,584    |   |                           |   | 1,887 |   |
| Forgiveness of debt                                                             |   |                            | –  |   |                           |   | – |   |
|    Non cash consulting costs                                     |   |                            | 39,879   |   |                           |   | 44,333 |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Changes in operating assets and liabilities:                                    |   |                            |     |   |                           |   |   |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Accounts receivable                                                             |   |                            | 129      |   |                           |   | – |   |
| Other receivables                                                               |   |                            | –  |   |                           |   | – |   |
| Inventory                                                                       |   |                            | –  |   |                           |   | – |   |
| Prepaid expenses                                                                |   |                            | –  |   |                           |   | – |   |
| Accounts payable and accrued liabilities                                        |   |                            | (1,618   | )      |                           |   | 22,304 |   |
| Due to related parties                                                          |   |                            | 18,000   |   |                           |   | 18,000 |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Net Cash Used In Operating Activities                                      |   |                            | (34,221  | )      |                           |   | (61,088 | ) |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Financing Activities                                                            |   |                            |     |   |                           |   |   |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Loan payable                                                                    |   |                            | 26,477   |   |                           |   | 41,000 |   |
| Advances from related parties                                                   |   |                            | 8,946    |   |                           |   | 21,340 |   |
| Repayments to related parties                                                   |   |                            | (1,200   | )      |                           |   | (900 | ) |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Net Cash Provided By Financing Activities                                       |   |                            | 34,223   |   |                           |   | 61,440 |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Increase (Decrease) in Cash                                                     |   |                            | 2        |   |                           |   | 352 |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Cash – Beginning of Period                                                |   |                            | 371      |   |                           |   | 226 |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Cash – End of Period                                                      |   |                            | 373      |   |                           |   | 578 |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Non-cash Investing and Financing Activities:                                    |   |                            |     |   |                           |   |   |   |
| Issuance of shares of common stock for intangible assets                        |   |                            | –  |   |                           |   | – |   |
| Issuance of shares of common stock for consulting contracts                     |   |                            | –  |   |                           |   | 224,000 |   |
| Issuance of shares for convertible debt                                         |   |                            | 29,500   |   |                           |   | – |   |
| Issuance of shares of common stock to settle debt                               |   |                            | –  |   |                           |   | – |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Supplemental Disclosures                                                        |   |                            |     |   |                           |   |   |   |
|                                                                            |   |                            |     |   |                           |   |   |   |
| Interest paid                                                                   |   |                            | –  |   |                           |   | – |   |
| Income tax paid                                                                 |   |                            | –  |   |                           |   | – |   |

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| a)  | The Company entered into consulting agreements with the President and CFO of the Company. Under these agreements, both the President and CFO receive $3,000 per month commencing June 1, 2006 and expiring December 31, 2011. For the three months ended March 31, 2011, the Company recorded $9,000 (March 31, 2010 - $9,000) of consulting expense and $9,000 (March 31, 2010 - $9,000) as marketing and sales expense. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  | As at March 31, 2011, the Company was indebted to directors and officers of the Company for $199,619 (March 31, 2010 - $145,743) for financing of day-to-day operations. These amounts are non-interest bearing, unsecured, and have no specific terms for repayment. For the three months ended March 31, 2011, the Company recorded $2,584 (2010 - $1,887) of imputed interest at 5.25% relating to these amounts owing. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  | On August 19, 2009, the President and CFO assigned $375,000 of debt owing to them by the Company to personal creditors in full payment of amounts owing to these creditors (see Note 4(b)). |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a) | On January 25, 2009, the Company issued 10,000,000 restricted shares of Class A common stock under the agreement described in Note 6(b). On July 25, 2009, the Company issued 5,000,000 restricted shares of Class A common stock under this agreement. The fair value of the restricted shares issued was estimated to be $438,393. Under the amended agreement dated December 31, 2009, the Company issued the remaining 15,000,000 restricted shares of Class A common stock on January 25, 2010. The fair value of these restricted shares was estimated to be $251,339 on the measurement date. As at March 31, 2011, these shares have been presented as Class A common stock on the balance sheet and the estimated fair value of the 30,000,000 shares issued under the agreement of $689,732 has been fully amortized. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | On August 20, 2009, the Company entered into a debt settlement and subscription agreement, whereby the Company agreed to issue 25,000,000 restricted shares of Class A common stock in consideration of the settlement of $375,000 owing. The fair value of these restricted shares was estimated to be $277,291 as determined on the date of the agreement. The Company recognized a gain on the settlement of debt of $97,709 during the year ended December 31, 2009 in relation to this transaction. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | On January 20, 2010, the Company approved an equity incentive plan entitled the 2010 Non-Qualified Stock Plan (the “Stock Plan”). The purpose of the Stock Plan is to secure for the Company and its stockholders the benefits arising from capital stock ownership by employees, officers and directors of, and consultants or advisors to, the Company who are expected to contribute to the Company’s future growth and success. The Stock Plan will provide for the grant of up to 25,000,000 performance units (the “Performance Units”) that are convertible into common stock of the Company. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| d) | In January 2010, the Company entered into a business consulting services agreement with a consultant whereby the Company issued 6,000,000 shares of Class A common stock, on January 25, 2010, for business consulting services to be rendered over a one year period. The shares were issued under the 2010 Stock Plan registered on Form S-8 on January 20, 2010. The estimated fair value of the shares issued was $84,000 as determined using the closing market price of the shares on the measurement date, being the date of the agreement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e) | In February 2010, the Company entered into a marketing consulting services agreement with a consultant whereby the Company issued 4,000,000 shares of Class A common stock, on February 22, 2010, for consulting services to be rendered over a one year period. The shares were issued under the 2010 Stock Plan registered on Form S-8 on January 20, 2010. The estimated fair value of the shares issued was $80,000 as determined using the closing market price of the shares on the measurement date, being the date of the agreement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f) | In February 2010, the Company entered into a web development consulting services agreement with a consultant whereby the Company issued 3,000,000 shares of Class A common stock, on February 22, 2010, for consulting services to be rendered over a one year period. The shares were issued under the 2010 Stock Plan registered on Form S-8 on January 20, 2010. The estimated fair value of the shares issued was $60,000 as determined using the closing market price of the shares on the measurement date, being the date of the agreement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g) | In May 2010, the Company entered into a six month Public Relations and Corporate Communication Service Agreement whereby the Company issued 9,000,000 restricted shares of Class A common stock to Equitytrend Advisors LLC. The fair value of these restricted shares was estimated to be $180,000 as determined using the closing market price of the shares on the measurement date, being the date of the agreement. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h) | On June 7, 2010, the Company entered into a technical environmental consulting services agreement with a consultant whereby the Company issued 5,000,000 common shares for technical environmental consulting services to be rendered over a six month period. The shares were issued under the 2010 Stock Plan registered on Form S-8 on January 20, 2010. The estimated fair value of the shares issued was $50,000 as determined using the closing market price of the shares on the measurement date, being the date of the agreement. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i) | On July 21, 2010 the Company entered into an investor relations, public relations and corporate communications services agreement commencing July 22, 2010 for a period of three months in exchange for the issuance of 2,000,000 restricted shares of Class A common stock. The fair value of these restricted shares was estimated to be $18,000 as determined using the closing market price of the shares on the measurement date, being the date of the agreement. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j) | On August 17, 2010, the Company entered into a debt settlement and subscription agreement, whereby the Company agreed to issue 4,100,000 restricted shares of Class A common stock at a fair value of $0.01 per share in consideration of the settlement of $41,000 owing as determined using the closing market price of the shares on the measurement date, being the date of the agreement (See Note 8). |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k) | On October 7, 2010, the Company extended its technical environmental consulting services agreement with a consultant whereby the Company issued 5,000,000 shares of Class A common stock for technical environmental consulting services to be rendered over a six month period commencing December 7, 2010. The shares were issued under the 2010 Stock Plan registered on Form S-8 on January 20, 2010. The estimated fair value of the shares issued was $32,500 as determined using the closing market price of the shares on the measurement date, being the date of the agreement. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  l) | On November 8, 2010, $7,500 of the convertible note dated May 3, 2010 was converted into 2,027,027 shares of Class A common stock. |
|----------|------------------------------------------------------------------------------------------------------------------------------------|

| m) | On January 3, 2011, $10,000 of the convertible note dated May 3, 2010 was converted into 9,090,909 shares of Class A common stock. |
|----|------------------------------------------------------------------------------------------------------------------------------------|

| n) | On February 4, 2011, $8,000 of the convertible note dated May 3, 2010 was converted into 8,888,889 shares of Class A common stock. |
|----|------------------------------------------------------------------------------------------------------------------------------------|

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| o) | On March 3, 2011, $4,500 of the convertible note dated May 3, 2010 was converted into 6,428,571 shares of Class A common stock. |
|----|---------------------------------------------------------------------------------------------------------------------------------|

| p) | On March 11, 2011, $7,000 of the convertible note dated May 3, 2010 was converted into 11,666,667 shares of Class A common stock. |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

| q) | Pursuant to the terms of the convertible notes payable disclosed in Note 8, the Company agreed to reserve for future issuance 102,780,105 common shares and may be required to reserve for issuance an additional 468,198,916 common shares which provides, as applicable, for three or five times the amount of common shares issuable upon the full conversion of the notes as at March 31, 2011. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   |   | $       |   |
|-------------------------------|--------|--------|---------|--------|
|                          |   |   |    |   |
| Advances from related parties |   |   | (45,301 | )      |
|                          |   |   |    |   |
| Net liabilities assumed       |   |   | (45,301 | )      |

| a) | On September 23, 2008, the Company entered into a Consulting Agreement with Rolando Choso Esquivel to act as Director, Latin American Sales and Marketing. The Company will pay $1,500 monthly for these consulting services and will reimburse out of pocket expenses incurred for Company business. The agreement was for a one year term which was to expire on August 31, 2009, is renewable annually with both parties’ approval and can be terminated by the Company with two month’s notice and payment. In August 2010, the Company agreed to extend the term of this agreement to August 31, 2011. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | On January 25, 2009, the Company entered into an agreement with ELCE International Corp. (“ELCE”) under which it obtained the rights to distribute water products purchased from ELCE in certain countries domiciled in South and Central America for a period of two years. As consideration for these rights, the Company agreed to issue to Claudio Sgarbi, the President of ELCE, 10,000,000 restricted shares of common stock upon closing of the agreement (issued on January 25, 2009 – see Note 4(a)), and 5,000,000 restricted shares semi-annually for a period of two years for a total of 20,000,000 additional shares as follows: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5,000,000 on July 25, 2009 (issued on August 20, 2009) |
|--------|--------------------------------------------------------|

|   | 5,000,000 on January 25, 2010 (issued on January 25, 2010) |
|--------|------------------------------------------------------------|

|   | 5,000,000 on July 25, 2010 (issued on January 25, 2010) |
|--------|---------------------------------------------------------|

|   | 5,000,000 on January 25, 2011 (issued on January 25, 2010) |
|--------|------------------------------------------------------------|

----

| $4,500 per month until May 2009;                               |
|----------------------------------------------------------------|
| $6,000 per month thereafter until August 2009;                 |
| $7,500 per month thereafter until November 2009; and           |
| $9,000 per month thereafter until the agreement is terminated. |

| c) | In February 2009, the Company entered into an Agency Agreement with Ancizar Rendon Ramirez to act as Agent for FW sales in the Southern Region of Colombia, South America. The Company will pay $1,000 monthly for these consulting services including related sales expenses and a commission of 10% for all collected FW sales initiated by the Agent in the Southern Region of Colombia. The agreement is for a one year term which expired January 31, 2010, is renewable annually and can be terminated by the Company with three months’ notice. In January 2010, the Company agreed to extend the term of this agreement on a month to month basis. In October 2010, both parties agreed to suspend the agreement indefinitely except for the payment of 10% sales commission for collected FW Activator sales. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d) | In July 2009, the Company entered into an Agency Agreement with Luis Alberto Buitrago Gonzalez to act as Agent for FW Activator sales in the Valle de Cauca Region of Colombia, South America. The Company will pay $400 monthly increasing to $600 per month after three months for these consulting services including related sales expenses and a commission of 5% for all collected FW Activator sales initiated by the agent in the Valle de Cauca Region of Colombia. The agreement is for a one year term which expired July 15, 2010, is renewable annually and can be terminated by the Company with three months’ notice. Effective July 2010, the Company agreed to extend the term of this agreement on a month to month basis at $400 per month. Both parties agreed to terminate payments under the agreement as of December 31, 2010 except for the payment of 5% sales commission for collected FW Activator sales. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| a) | On May 3, 2010, the Company issued a $55,000 convertible note with a maturity on February 1, 2011 and bearing interest at 8% per annum for cash proceeds of $55,000. The note is convertible into shares of the Company’s Class A common stock at a 40% discount of the average of the lowest three trading prices (the closing bid price on the Over-the-Counter Bulletin Board or applicable trading market) for the Company’s common stock during the ten trading day period ending one trading day prior to the date the conversion notice is sent by the noteholder to the Company. Pursuant to the terms of the note the Company agreed to reserve for future issuance 10,645,161 shares of Class A common stock which provided for three times the amount of common shares issuable upon the full conversion of the note. The Company is required to maintain this ratio based on the conversion price from time to time and may be subject to significant penalties should an insufficient number of shares be available for issuance on the date of conversion.The Company recognized the intrinsic value of the embedded beneficial conversion feature of $36,667 as additional paid-in capital and reduced the carrying value of the convertible debenture to $18,333. The carrying value was accreted over the term of the convertible debenture up to its face value of $55,000. From November 8, 2010 through March 31, 2011 a total of $37,000 of this convertible note was converted into 38,102,153 Class A common shares. As at March 31, 2011, the carrying values of the convertible debenture and accrued convertible interest payable thereon were $18,000 and $3,304, respectively. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On February 1, 2011, the Company defaulted on its repayment of the convertible note dated May 3, 2010. The note’s principal and interest outstanding at March 31, 2011 amounted to $21,100. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | On May 18, 2010, the Company issued a $35,000 convertible note with a maturity on February 21, 2011 and bearing interest at 8% per annum for cash proceeds of $35,000. The note is convertible into shares of the Company’s Class A common stock at a 40% discount of the average of the lowest three trading prices (the closing bid price on the Over-the-Counter Bulletin Board or applicable trading market) for the Company’s common stock during the ten trading day period ending one trading day prior to the date the conversion notice is sent by the noteholder to the Company. Pursuant to the terms of the note the Company agreed to reserve for future issuance 10,692,464 shares of Class A common stock which provided for three times the amount of common shares issuable upon the full conversion of the note. The Company is required to maintain this ratio based on the conversion price from time to time and may be subject to significant penalties should an insufficient number of shares be available for issuance on the date of conversion.The Company recognized the intrinsic value of the embedded beneficial conversion feature of $23,333 as additional paid-in capital and reduced the carrying value of the convertible debenture to $11,667. The carrying value was accreted over the term of the convertible debenture up to its face value of $35,000. As at March 31, 2011, the carrying values of the convertible debenture and accrued convertible interest payable thereon were $35,000 and $2,140, respectively. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On February 21, 2011, the Company defaulted on its repayment of the convertible note dated May 18, 2010.  The note’s principal and interest outstanding at March 31, 2011 amounted to $37,140. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On June 22, 2010, pursuant to the terms of the May 3rd and May 18th notes, the Company agreed to reserve for future issuance 47,703,180 common shares which provided for three times the amount of common shares issuable upon the full conversion of the notes as of June 22, 2010. The Company is required to maintain this ratio based on the conversion price from time to time and may be subject to significant penalties should an insufficient number of shares be available for issuance on the date of conversion. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | On July 14, 2010, the Company issued a $30,000 convertible note with a maturity on April 19, 2011 and bearing interest at 8% per annum for cash proceeds of $30,000. The note is convertible into shares of the Company’s Class A common stock at a 40% discount of the average of the lowest three trading prices (the closing bid price on the Over-the-Counter Bulletin Board or applicable trading market) for the Company’s common stock during the ten trading day period ending one trading day prior to the date the conversion notice is sent by the noteholder to the Company. Pursuant to the terms of the note the Company agreed to reserve for future issuance 26,785,714 shares of Class A common stock which provides for five times the amount of common shares issuable upon the full conversion of the note. The Company is required to maintain this ratio based on the conversion price from time to time and may be subject to significant penalties should an insufficient number of shares be available for issuance on the date of conversion.The Company recognized the intrinsic value of the embedded beneficial conversion feature of $18,333 as additional paid-in capital and reduced the carrying value of the convertible debenture to $11,666. The carrying value will be accreted over the term of the convertible debenture up to its face value of $30,000. As at March 31, 2011, the carrying values of the convertible debenture and accrued convertible interest payable thereon were $27,731 and $1,716, respectively. On April 19, 2011, the Company defaulted on its repayments of the convertible note dated July 14, 2010. (See Note 9(b)). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| d) | On September 7, 2010, the Company issued a $25,000 convertible note with a maturity on June 10, 2011 and bearing interest at 8% per annum for cash proceeds of $25,000. The note is convertible into shares of the Company’s Class A common stock at a 45% discount of the average of the lowest three trading prices (the closing bid price on the Over-the-Counter Bulletin Board or applicable trading market) for the Company’s common stock during the ten trading day period ending one trading day prior to the date the conversion notice is sent by the noteholder to the Company. Pursuant to the terms of the note the Company agreed to reserve for future issuance 28,291,211 shares of Class A common stock which provides for five times the amount of common shares issuable upon the full conversion of the note. The Company is required to maintain this ratio based on the conversion price from time to time and may be subject to significant penalties should an insufficient number of shares be available for issuance on the date of conversion.The Company recognized the intrinsic value of the embedded beneficial conversion feature of $23,750 as additional paid-in capital and reduced the carrying value of the convertible debenture to $1,250. The carrying value will be accreted over the term of the convertible debenture up to its face value of $25,000. As at March 31, 2011, the carrying values of the convertible debenture and accrued convertible interest payable thereon were $10,623 and $1,129, respectively. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a) | On April 19, 2011, the Company defaulted on its repayment of the convertible note dated July 14, 2010. (See Note 8 (c))  The note’s principal and interest outstanding at April 19, 2011 amounted to $31,835. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | On April 19, 2011, $7,000 of the convertible note dated May 3, 2010 was converted into 11,666,667 shares of common stock in accordance with the terms of the convertible note agreement. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | On March 7, 2011, the Company entered into a letter of intent with Agent155 Media Corp. (“Agent155”) regarding the acquisition of Agent155 in a tax-free reorganization pursuant to Section 368 of the Internal Revenue Code. Agent155 offers models, performers, artists, athletes, musicians, filmmakers and agencies a multimedia content management solution, providing a collaborative forum for the creative world to network and develop. It provides talent agencies, agents, producers, directors, and recording companies a one-stop location to search and view the profiles and work of emerging talent. Through Agent155, the Company plans to produce films, music tours, commercials and various events using talent exclusively from Agent155. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On April 25, 2011, the Company entered into an agreement of purchase and sale with Christopher Martinez, the President and the owner of the assets and business of Agent155, to replace the letter of intent. Pursuant to this agreement, the structure of the transaction was amended such that the Company agreed to acquire certain assets of Agent155 directly from Mr. Martinez in exchange for 100,000,000 shares of the Company’s common stock and additional consideration. This agreement was amended on May 6, 2011, pursuant to which the Company agreed to issue a total of 100,000,000 post-consolidation shares to Mr. Martinez, on the basis of 1,000 pre-consolidation shares being consolidated into 1 post-consolidation share. The Company will initially issue 125,000,000 pre-consolidation shares to Mr. Martinez (equivalent to 125,000 post-consolidation shares), and will subsequently issue a debt instrument to him that is convertible into 99,875,000 post-consolidation shares. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Thefollowing is a description of the other material terms and conditions of the amended agreement: |
|--------|----------------------------------------------------------------------------------------------------|

| ●      | Mr. Martinez will pay approximately $63,000 of the Company’s accounts payable and accrued interest as described in the agreement, as well as the invoices of its legal, edgarizing and filing service providers; |
|---------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●      | the Company will obtain shareholder approval to change our name to “Agent155 Media Corp.”; |
|---------------------------------------|--------------------------------------------------------------------------------------------------------|

| ●      | the Company’s officers and directors will resign and Mr. Martinez will appoint its new Board of Directors; |
|---------------------------------------|------------------------------------------------------------------------------------------------------------------|

| ●      | the Company will enter into consulting agreements with Brian Robertson, Max Weissengruber and Michael Borrelli on terms and conditions agreeable to the parties, acting reasonably and in good faith; |
|---------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●      | the Company will obtain shareholder approval for the transactions contemplated by the agreement, if required by applicable laws; |
|---------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ●      | the Company will enter into an agreement of purchase and sale with Brian Robertson and Max Weissengruber pursuant to which the Company will sell the inventory and assets related to its water treatment business to Mr. Robertson and Mr. Weissengruber for the aggregate amount of $115,823; |
|---------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●      | the Company will enter into an agreement with or obtain approval from its creditors in all outstanding convertible notes that will allow the Company to carry out the transactions contemplated by the amended agreement; and |
|---------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●      | the Company and Mr. Martinez will each be reasonably satisfied with their respective due diligence investigation and review of the other. |
|---------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | The amended agreement may be terminated at any time prior to the closing date by mutual agreement of the parties, by either party in the event of a material breach of the agreement by the other party, or by either party if the transactions contemplated by the agreement have not been consummated prior to June 30, 2011. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d) | On May 11, 2011, the Company’s Board of Directors approved the cancellation of the Company’s authorized Class B common stock of 100,000,000 common shares and an increase in the Company’s authorized Class A Common Stock to 400,000,000 common shares. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| ● | Mr. Martinez will pay approximately $63,000 of our accounts payable and accrued interest as described in the agreement, as well as the invoices of our legal, edgarizing and filing service providers; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | we will obtain shareholder approval to change our name to “Agent155 Media Corp.”; |
|---------|-----------------------------------------------------------------------------------------------|

| ● | our officers and directors will resign and Mr. Martinez will appoint our new Board of Directors; |
|---------|--------------------------------------------------------------------------------------------------|

| ● | we will enter into consulting agreements with Brian Robertson, Max Weissengruber and Michael Borrelli on terms and conditions agreeable to the parties, acting reasonably and in good faith; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | we will obtain shareholder approval for the transactions contemplated by the agreement, if required by applicable laws; |
|---------|-------------------------------------------------------------------------------------------------------------------------|

| ● | we will enter into an agreement of purchase and sale with Brian Robertson and Max Weissengruber pursuant to which we will sell the inventory and assets related to our water treatment business to Mr. Robertson and Mr. Weissengruber for the aggregate amount of $115,823; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | we will enter into an agreement with or obtain approval from our creditors in all outstanding convertible notes that will allow us to carry out the transactions contemplated by the amended agreement; and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Mr. Martinez and us will each be reasonably satisfied with their respective due diligence investigation and review of the other. |
|---------|----------------------------------------------------------------------------------------------------------------------------------|

----

| ● | our self-advertising platform, through which members will be able to set their own daily budget (similar to Google Adwords and Facebook); |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Agent155 Films, through which we will acquire films from members and redistribute, produce and market those films; |
|---------|--------------------------------------------------------------------------------------------------------------------|

| ● | the online sale of music by our musician members, from which we anticipate receiving 30% of the proceeds; |
|---------|-----------------------------------------------------------------------------------------------------------|

| ● | the sale and/or rental of members by their films online, from which we anticipate receiving 30% of the proceeds; and |
|---------|----------------------------------------------------------------------------------------------------------------------|

| ● | the sale of artwork, paintings, sculptures, jewellery, etc. online by our artist members, from which we anticipate receiving 30% of the proceeds. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                |   | Three Months EndedMarch 31 |     |   | Accumulated fromJanuary 21, 2005 (Date of Inception) to March 31, |   |
|-----------------------------------------------------|--------|----------------------------|----------|--------|-------------------------------------------------------------------|--------|
|                                                |   | 2011                       |     |   | 2010                                                              |   |   | 2011 |   |
|                                                |   |                       |     |   |                                                              |   |   |   |   |
| Revenue                                             |   | $                          | -        |   |                                                              | $      | 220 |   |   | $ | 477,307 |   |
| Cost of Sales                                       |   |                       | -        |   |                                                              |   | 133 |   |   |   | 214,999 |   |
| Gross Profit                                        |   |                       | -        |   |                                                              |   | 87 |   |   |   | 262,308 |   |
|                                                |   |                       |     |   |                                                              |   |   |   |   |   |   |   |
| Expenses                                            |   |                       |     |   |                                                              |   |   |   |   |   |   |   |
|    Amortization of intangible assets |   |                       | 22,676   |   |                                                              |   | 85,035 |   |   |   | 689,732 |   |
| Consulting                                          |   |                       | 9,000    |   |                                                              |   | 9,000 |   |   |   | 292,000 |   |
| General and administrative                          |   |                       | 32,641   |   |                                                              |   | 42,077 |   |   |   | 583,344 |   |
| Imputed interest                                    |   |                       | 2,584    |   |                                                              |   | 1,887 |   |   |   | 117,770 |   |
| Marketing and sales                                 |   |                       | 35,350   |   |                                                              |   | 67,536 |   |   |   | 723,401 |   |
| Professional fees                                   |   |                       | 20,820   |   |                                                              |   | 30,550 |   |   |   | 279,466 |   |
| Commission Expense                                  |   |                       | -        |   |                                                              |   | - |   |   |   | 5,900 |   |
| Bad debts expense (recovery)                        |   |                       | (7,200   | )      |                                                              |   | (3,350 | ) |   |   | 333,328 |   |
| Total Expenses                                      |   |                       | 115,871  |   |                                                              |   | 232,735 |   |   |   | 3,024,941 |   |
|                                                |   |                       |     |   |                                                              |   |   |   |   |   |   |   |
| Net Loss From Operations                            |   |                       | (115,871 | )      |                                                              |   | (232,648 | ) |   |   | (2,762,633 | ) |
|                                                |   |                       |     |   |                                                              |   |   |   |   |   |   |   |
| Other Income                                        |   |                       |     |   |                                                              |   |   |   |   |   |   |   |
| Gain on settlement of debt                          |   |                       | -        |   |                                                              |   | - |   |   |   | 99,709 |   |
| Accretion of discounts on convertibles              |   |                       | (25,985  | )      |                                                              |   | - |   |   |   | (85,437 | ) |
| Net Loss                                            |   | $                          | (141,856 | )      |                                                              | $      | (232,648 | ) |   | $ | (2,748,361 | ) |

----

|                         |   | March 31, 2011 |     |   | December 31, 2010 |   |
|------------------------------|--------|----------------|----------|--------|-------------------|--------|
|                         |   |           |     |   |              |   |
| Current Assets               |   | $              | 132,368  |   |              | $      | 172,374 |   |
| Current Liabilities          |   |           | 410,701  |   |              |   | 363,612 |   |
| Working Capital (Deficiency) |   | $              | (278,333 | )      |              | $      | (191,238 | ) |

| ● | a $39,879 decrease in our prepaid consulting fees resulting from the issuance of our common stock for one-year consulting services agreements with three consultants and a six-month agreement with one consultant, extended to one year in October 2010 under an equity incentive plan entitled the 2010 Non-Qualified Stock Plan; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | a $22,676 decrease in our intangible assets as described below: |
|---------|-----------------------------------------------------------------|

|   | On January 25, 2009, we issued 10,000,000 restricted shares of our Class A common stock under the joint venture agreement with ELCE. On July 25, 2009, we issued 5,000,000 restricted shares of our Class A common stock under this agreement. The fair value of the restricted shares issued was estimated to be $438,393. Under the agreement, we issued a final 15,000,000 restricted shares of our Class A common stock on January 25, 2010. The fair value of these restricted shares was estimated to be $251,339. As at March 31, 2011, these shares are presented as Class A common stock on the balance sheet. The estimated fair value of the 30,000,000 shares issued and to be issued under the agreement of $689,732 has been amortized as of March 31, 2011. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | an increase of $2 in our cash and a decrease of $129 in our receivables. |
|---------|--------------------------------------------------------------------------|

----

----

|                                         |   | Three Months Ended March 31, 2011 |    |   | Three Months Ended March 31, 2010 |   |
|----------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|
| Cash provided (used) in Operating Activities |   | $                                 | (34,221 | )      |                              | $      | (61,088 | ) |
| Cash used by Investing Activities            |   |                              | -       |   |                              |   | - |   |
| Cash provided (used) by Financing Activities |   |                              | 34,223  |   |                              |   | 61,440 |   |
| Net Increase (Decrease) in Cash              |   | $                                 | 2       |   |                              | $      | 352 |   |

----

----

| Operating expenditures                 |   |                  |
|----------------------------------------|--------|-----------------------|
| Marketing                              | $      | 400,000 - 550,000     |
| General and Administrative             | $      | 50,000 - 75,000       |
| Legal and Accounting                   | $      | 50,000 - 75,000       |
| Working capital                        | $      | 400,000 - 500,000     |
| Repayment of Directors’ Advances | $      | 100,000 - 200,000     |
| Total                                  | $      | 1,000,000 - 1,400,000 |

----

----

----

| Exhibit Number | Description                                                                                                                    |
|----------------|--------------------------------------------------------------------------------------------------------------------------------|
| 3.1(1)         | Articles of Incorporation                                                                                                      |
| 3.2(1)         | By-laws                                                                                                                        |
| 3.3*      | Certificate of Amendment filed with the Nevada Secretary of State dated May 12, 2011                                           |
| 10.1(1)        | Supplier Agreement with ELCE International Inc. dated August 18, 2001                                                          |
| 10.2(1)        | Distribution Agreement with Avila S.T.E.M., S.A. dated February 1, 2005                                                        |
| 10.3(1)        | Supplier Agreement with R-Can Environmental Inc. dated May 20, 2005                                                            |
| 10.4(1)        | Distribution Agreement with JEUFI International, S.A. dated June 22, 2005                                                      |
| 10.5(1)        | Distribution Agreement with Freshwater Latin, S.A. dated September 1, 2005                                                     |
| 10.6(1)        | Asset Sale Agreement with Max Weissengruber and D. Brian Robertson dated January 1, 2006                                       |
| 10.7(1)        | Consulting Agreement with D. Brian Robertson dated January 1, 2006                                                             |
| 10.8(1)        | Agreement with Max Weissengruber dated January 1, 2006.                                                                        |
| 10.9(2)        | Distribution Agreement with Watergeeks Laboratories Inc. dated October 9, 2008                                            |
| 10.10(3)       | Extension Agreement dated December 31, 2008 to Distribution Agreement with Watergeeks Laboratories Inc., dated October 9, 2008 |
| 10.11(4)       | Joint Venture Agreement with ELCE International Corp. dated January 25, 2009                                                   |
| 10.12(5)       | Form of Debt Settlement Agreement                                                                                              |
| 10.13(6)       | Securities Purchase Agreement with Asher Enterprises, Inc. dated May 5, 2010                                                   |
| 10.14(6)       | Convertible Promissory Note with Asher Enterprises Inc. dated May 5, 2010                                                      |
| 10.15(7)       | Agreement with Equititrend Advisors, LLC dated May 5, 2010                                                                     |
| 10.16(8)       | Securities Purchase Agreement with Asher Enterprises, Inc. dated May 18, 2010                                             |
| 10.17(8)       | Convertible Promissory Note with Asher Enterprises Inc. dated May 18, 2010                                                     |
| 10.18(9)       | Securities Purchase Agreement with Asher Enterprises Inc. dated July 14, 2010                                                  |
| 10.19(9)       | Convertible Note dated July 14, 2010                                                                                           |
| 10.20(10)      | Service Agreement with Mica Capital Partners LLC dated July 21, 2010                                                           |
| 10.21(11)      | Securities Purchase Agreement with Asher Enterprises Inc. dated September 7, 2010                                              |
| 10.22(11)      | Convertible Promissory Note with Asher Enterprises, Inc. dated September 7, 2010                                               |
| 10.23(12)      | Form of Debt Settlement and Subscription Agreement                                                                             |
| 10.24(13)      | Consulting Agreement with Michael Borrelli dated January 11, 2010                                                              |
| 10.25(13)      | Consulting Agreement with Nand Shankar dated February 22, 2010                                                                 |
| 10.26(13)      | Consulting Agreement with Marina Ricci dated February 22, 2010                                                                 |
| 10.27(13)      | Consulting Agreement with Graham Linttell dated June 7, 2010                                                                   |
| 10.28(13)      | Extension Agreement dated October 7, 2010 to Consulting Agreement with Graham Linttell dated June 7, 2010                      |
| 10.29(14)      | Letter of Intent with Agent155 Media Corp. dated March 7, 2011                                                                 |
| 10.30(14)      | Approval to file Letter of Intent with Agent155 Media Corp. dated April 14, 2011                                               |
| 10.31(15)      | Agreement of Purchase and Sale with Christopher Martinez dated April 25, 2011                                                  |
| 10.32*         | Amendment Agreement of Purchase and Sale with Christopher Martinez dated May 6, 2011                                           |
| 31.1*          | Certification of Max Weissengruber pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                   |
| 31.2*          | Certification of D. Brian Robertson pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                  |
| 32.1*          | Certification of Max Weissengruber pursuant Section 906 of the Sarbanes-Oxley Act of 2002                                      |
| 32.2*          | Certification of D. Brian Robertson pursuant Section 906 of the Sarbanes-Oxley Act of 2002                                     |

| (1)  |   | Filed as an exhibit to our Form SB-2 registration statement filed on February 12, 2007. |
|------|--------|-----------------------------------------------------------------------------------------|
| (2)  |   | Filed as an exhibit to our Form 8-K filed on October 16, 2008.                          |
| (3)  |   | Filed as an exhibit to our Form 8-K filed on January 6, 2009.                           |
| (4)  |   | Filed as an exhibit to our Form 8-K filed on February 10, 2009.                         |
| (5)  |   | Filed as an exhibit to our Form 10-Q filed on November 16, 2009.                        |
| (6)  |   | Filed as an exhibit to our Form 8-K filed on May 11, 2010.                              |
| (7)  |   | Filed as an exhibit to our Form 8-K filed on May 12, 2010.                              |
| (8)  |   | Filed as an exhibit to our Form 8-K filed on May 25, 2010.                              |
| (9)  |   | Filed as an exhibit to our Form 8-K filed on July 27, 2010 (file #10970146).            |
| (10) |   | Filed as an exhibit to our Form 8-K filed on July 27, 2010 (file #10971361).            |
| (11) |   | Filed as an exhibit to our Form 8-K filed on September 10, 2010.                        |
| (12) |   | Filed as an exhibit to our Form 8-K filed on October 19, 2010.                          |
| (13) |   | Filed as an exhibit to our Form 8-K filed on October 26, 2010.                          |
| (14) |   | Filed as an exhibit to our Form 10-K filed on April 14, 2011.                           |
| (15) |   | Filed as an exhibit to our Form 8-K filed on April 27, 2011.                            |
| *    |   | Filed herewith                                                                          |

----

|               | FRESHWATER TECHNOLOGIES, INC. |
|--------------------|-------------------------------|
|               |                          |   |
| Date: May 13, 2011 | By:                           | /s/ Max Weissengruber |
|               |                          | Max Weissengruber |
|               |                          | President, Chief Executive Officer and Director(Principal Executive Officer) |
|               |                          |   |
|               |                          |   |
| Date: May 13, 2011 | By:                           | /s/ D. Brian Robertson |
|               |                          | D. Brian Robertson |
|               |                          | Treasurer, Chief Financial Officer, Vice-President of Sales and Director(Principal Accounting Officer and Principal Financial Officer) |