UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

For the transition period from to

Commission File Number:333-168346

AVENUE SOUTH LTD.

TBSS INTERNATIONAL, INC.

(formerly Avenue South Ltd.)

(Exact name of registrant as specified in its charter)

Registrant’s telephone number (including area code): (845) 548-0888(855) 645-4653

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesX No ____

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [ ]

As of July 22,February 21, 2011, there were 4,200,000165,000,000 shares of company common stock issued and outstanding.

TBSS INTERNATIONAL, INC. (FORMERLY AVENUE SOUTH LTD.)

Quarterly Report on Form 10-Q

TABLE OF CONTENTS

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to historical information, this Quarterly Report on Form 10-Q contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in such forward-looking statements.  We cannot give any guarantee that the plans, intentions or expectations described in the forward looking statements will be achieved.  All forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including those factors described in the “Risk Factors” section of our annual report on Form 10K that was filed with the Securities & Exchange Commission on June 14, 2011. Readers should carefully review such risk factors as well as factors described in other documents that we file from time to time with the Securities and Exchange Commission.

In some cases, you can identify forward-looking statements by terminology such as “guidance,” “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “proposed,” “intended,” or “continue” or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other “forward-looking” information. There may be events in the future that we are not able to accurately predict or control. You should be aware that the occurrence of any of the events described in our risk factors and other disclosures could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, and levels of activity, performance or achievements. Factors that may cause actual results, our performance or achievements, or industry results, to differ materially from those contemplated by such forward-looking statements include, without limitation:

• ·our ability to obtain sufficient working capital to support our business plans;

• ·our ability to expand our product offerings;

• our ability to continue to receive orders from our major client;

• our ability to survive through the current difficult retail environment and changing economic conditions that may further adversely affect consumer demand and spending, and as a result, adversely affect our financial condition

Readers are cautioned not to place undue reliance on our forward-looking statements, which reflect management’s opinions only as of the date thereof.  We undertake no obligation to revise or publicly release the results of any revision of our forward-looking statements, except as required by law.

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Item 1. Financial Statements

TBSS INTERNATIONAL, INC.

(Formerly Avenue South Ltd.)

(A Development Stage Company)

CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2011

(UNAUDITED) AND MARCH 31, 2011

See accompanying notes to unaudited consolidated financial statements

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TBSS INTERNATIONAL, INC.

(Formerly Avenue South Ltd.)

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2011 AND 2010, AND FOR THE PERIOD SINCE INCEPTION JULY 6, 2007TO DECEMBER 31, 2011

See accompanying notes to unaudited consolidated financial statements

4

5

Seeaccompanying notes tounauditedconsolidatedfinancialstatements

TBSS INTERNATIONAL, INC.

(Formerly Avenue South, Ltd)

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY (DEFICIT)

(UNAUDITED) FOR THE PERIOD SINCE INCEPTION JULY 6, 2007 TO DECEMBER 31, 2011

See accompanying notes to unaudited consolidated financial statements

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TBSS INTERNATIONAL, INC. (FORMERLY AVENUE SOUTH LTD.)

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED) FOR THE NINE MONTHS ENDED DECEMBER 31, 2011 AND 2010 AND FOR THE PERIOD SINCE INCEPTION JULY 6, 2007 TO DECEMBER 31, 2011

See accompanying notes to unaudited consolidated financial statements

TBSS INTERNATIONAL, INC.

(Formerly Avenue South Ltd.)

(A Development Stage Company)

NOTES TOCONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of the TBSS International, Inc. (Formerly Avenue South Ltd. and its subsidiary) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive consolidated financial statements and should be read in conjunction with our audited consolidated financial statements for the year ended March 31, 2011.

In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three-month period have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year.  When used in these notes, the terms "Company", "we", "us" or "our" mean TBSS International, Inc. (Formerly Avenue South Ltd. and its subsidiarysubsidiary) included in these consolidated financial statements.

2. ORGANIZATION AND NATURE OF BUSINESS

On July 6, 2007, our then principal stockholder acquired 100% of the equity of Avenue South, Inc., a North Carolina corporation. On July 6, 2007, Avenue South Ltd., a Nevada corporation was formed by our then principal stockholder and our then principal stockholder entered into a share exchange agreement, pursuant to which all the common stock held by our principal stockholder in Avenue South, Inc. was acquired by Avenue South Ltd. by issuing 2 million common shares to our then principal stockholder. On September 27, 2011, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Nevada Secretary of State. The Articles had the effect of changing the Company’s name from Avenue South Ltd. then becameto TBSS International, Inc. An 8-K was filed on October 14, 2011.On October 12, 2011 the parent corporation owning 100%Board of Avenue South, Inc.

Avenue South, Inc. was incorporated inDirectors decided to exit the Stateweb-based retail business of North Carolina on February 15, 2005 (date of predecessor inception) with the principal business objective of a “one-stop” web based supplier of imported and domestic art reproductions, collectibles andselling home décor itemsand will focus its efforts as an international service company to assist companies that are difficult to find in traditional home furnishing retail outlets. All items are sold throughhave begun gold mining, drilling, as well as work on water well drilling, trenching and construction (including lighting for the Company’s website, www.avenuesouth.com.energy-efficient neon lighting market)

Going Concern

The Company’s success will depend in part on its ability to marketpursue clients and sell its products over the internetsign lucrative contracts and through other marketing channels.perform under those contracts. There can be no assurance that the Company will secure these marketing efforts will be successful. contracts.The Company does not currently have sufficient cash and financing commitments to meet its funding requirements over the next year. In addition, the Company may wish to selectively pursue additional products complementary to those of the Company in the future in order to expand its presence in the marketplace and achieve operating efficiencies. The Company may expect to seek to obtain additional funding through debt or equity transactions. There can be no assurance as to the availability or terms upon which such financing and capital might be available.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the TBSS International, Inc. (Formerly Avenue South Ltd.) and its wholly-owned subsidiary Avenue South, Inc., after elimination of all material intercompany accounts, transactions, and profits.

A summary of significant accounting policies of TBSS International, Inc. (Formerly Avenue South Ltd.) (A Development Stage Company) (the “Company” or “Successor”) is presented to assist in understanding the Company’s financial statements. The accounting policies presented in these footnotes conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the accompanying financial statements. The Company has not realized any significant revenues from its planned principal business purpose and is considered to be in a development stage in accordance with ASC 915, “Development Stage Entities.”915.

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TBSS International Inc.

(Formerly Avenue South Ltd.)

(A Development Stage Company)

NOTES TOCONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Inventory

Inventories consist of finished goods of home furnishing products.dock pilings and strip lights for the energy-efficient neon lighting market.  Cost is stated at the lower of cost or market on a first-in, first-out (FIFO) basis.  The Company has not recorded an allowance for slow-moving or obsolete inventory.  ThereInventory was no inventory on hand$3,192,730 at June 30,December 31, 2011 and $0 at March 31, 2011.

Income Taxes

The Company uses the liability approach to financial accounting and reporting for income taxes.  The differences between the financial statement and tax basesbasis of assets and liabilities are determined annually.  Deferred income tax assets and liabilities are computed for those differences that have future tax consequences using the currently enacted tax laws and rates that apply to the period in which they are expected to affect taxable income.  Valuation allowances are established, if necessary, to reduce deferred tax asset accounts to the amounts that will more likely than not be realized.  Income tax expense is the current tax payable or refundable for the period, plus or minus the net change in the deferred tax asset and liability accounts.

Revenue Recognition

The Company recognizes revenue in accordance with accounting standards issued by the FASB,ASC 605, which specifies that revenue is realized or realizable and earned when four criteria are met:

The Company recognizes revenue whenunder multiple deliverable arrangements from installation and other services as the goodsservices are accepted by the customer and title has passed. The Company sells its goods via shipment from its suppliers directly to its customers. Shipping and handling costs were not significant. The Company has a 30 day return policy and customers have a general right of 30 days return on products delivered.performed.

The Company did not provide for an allowance for return products since the Company has not experienced any sales returns.

Certain customer arrangements require evaluation of the criteria outlined in the accounting standards of reporting revenue “Gross” as a Principal Versus “Net” as an Agent in determining whether it is appropriate to record the gross amount of revenue and related costs or the net amount earned as agent fees. Generally, when we are primarily obligated in a transaction, revenue is recorded on a gross basis. Other factors that we consider in determining whether to recognize revenue on a gross versus net basis include our assumption of credit risk, our latitude in establishing prices, our determination of service specifications and our involvement in the provision of services. When we conclude that we are not primarily obligated as a principal, we record the net amount earned as agent fees within net sales.

Basic Income/Loss Per Common Share

The computation of income / loss per share is based on the weighted average number of shares outstanding during the period presented in accordance with ASC 260, “Earnings Per Share”.260. At June 30,December 31, 2011 and March 31, 2011, the Company did not have any stock equivalents.

UseIntangible Assets

Patents are amortized over their remaining life and theLighting system observable by humans but not turtles to protect turtle nesting environment or US patent #6471369 was filed in May 2001 and will therefore expire in May 2021. Thus, the patent is being amortized over 113 months, on a straight line basis. The Company performs an impairment evaluation whenever events or changes in business circumstances indicate that the carrying value of the intangible assets may not be recoverable.

TBSS International, Inc.

(Formerly Avenue South Ltd.)

(A Development Stage Company)

NOTES TOCONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

Estimates

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

Foreign Currency Transactions

For the three months ended June 30,December 31, 2011 and 2010, there are no gain and loss on foreign currency transaction as all transactions are denominated in US dollars.

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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-CONTINUED

Cash and cash equivalents

The Company considers all cash on hand and in banks, certificates of deposit and other highly-liquid investments with original maturities of three months or less, when purchased, to be cash and cash equivalents.

4. RECENT CHANGES IN ACCOUNTING STANDARDS

Recent Accounting Pronouncements

In August 2009, the FASB issued an Accounting Standards Update (“ASU”) No.2009.05 regarding measuring liabilities at fair value. This ASU provides additional guidance clarifying the measurement of liabilities at fair value in circumstances in which a quoted price in an active market for the identical liability is not available; under those circumstances, a reporting entity is required to measure fair value using one or more of valuation techniques, as defined. This ASU is effective for the first reporting period, including interim periods, beginning after the issuance of this ASU. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

The Company does not expect that adoption of recently issued accounting pronouncements will have a material impact on its financial position, results of operations or cash flows.

5. INTANGIBLE ASSETS

Intangible assets consist of the following at December 31, 2011 and March 31, 2011.

On December 16, 2011 the President and CEO of the Company entered into an agreement on behalf of the Company, with a third party, to purchase a patent valued at $807,270. The President and CEO then assigned the patent to the Company. The patent, originally filed in May 2001, has nine years and three months left before expiring. Amortization expense for the three and nine months ending December 31, 2011 was $7,144 and $0 for the three and nine months ending December 31, 2010.

6. DUE TO RELATED PARTIES

As of June 30,

On November 16, 2011 the amountPresident and CEO loaned the Company $100,000. On December 13, 2011 the President and CEO paid $3,900,000 directly to Velella International Lighting, Inc.on behalf of the Company for a total of $4,000,000. This loan has an interest rate of 3% and is has no specific due to related partiesdate. $6,090 of $6,829 representedinterest was recorded in the amount due to President, Principal Accounting Officer, Secretary and director. three month period ending December 31, 2011.

TBSS International, Inc

(Formerly Avenue South Ltd)

(A Development Stage Company)

NOTES TOCONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

As of March 31, 2011, the amount due to related parties of $72,210 included $72,210 due to the former President, Principal Accounting Officer, Secretary and director.Director. The amounts due are unsecured, non-interest bearing, and due on demand. Amount has been repaid as of December 31, 2011.

6.

7. INCOME TAXES

The Company accounts for income taxes usingadopted the provisions of ASC 740, at inception. As a result of the implementation of ASC 740, the Company recognized no increase in the liability method; under which deferredfor unrecognized tax liabilitiesbenefits. The Company has no uncertain tax positions at December 31, 2011 and assets are determined based on the difference between the financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in2010 for which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, inultimate deductibility is highly certain but for which there is uncertainty about the opiniontiming of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment.such deductibility

At June 30,December 31, 2011, the Company had accumulated deficit during the development stage of $26,779$258,814 to offset future taxable income. The Company has established a valuation allowance equal to the full amount of this deferred tax asset due to the uncertainty of the utilization of the operating losses in future periods.

The Company adopted the provisions of ASC 740, “Accounting for Uncertainty in Income Taxes,” at inception. As a result of the implementation of ASC 740, the Company recognized no increase in the liability for unrecognized tax benefits.

The Company has no uncertain tax positions at June 30, 2011 and 2010 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

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7.8. STOCKHOLDER’S’ EQUITY (DEFICIT)

The Company’s Articles of Incorporation authorize 100,000,000500,000,000 shares of $0.001 par value common stock.  On December 17, 2008, the Company issued 450,00013,050,000 shares of its Common Stock to the Company’s sole stockholder at $0.02 per share, for total proceeds of $9,000.

On March 28, 2010 the Company had received stock subscriptions to issue 1,750,00050,750,000 shares of its common stock to 28 non-US investors at $0.02$0.001 per share. The Company completed the private placement offering for gross proceeds of $35,000 to non-US persons in reliance of Regulation S promulgated under the Securities Act of 1933 in June 2010. The total amount of common stock subscribed at March 31, 2010 was $35,000. The Company also entered into a Registration Rights Agreement on March 28, 2010 with each investor whereby as soon as possible but in any event not later than the 120th day after March 28, 2010, the Company agreed to file a registration statement on Form S-1. Upon the failure by the Company to have the Registration Statement declared effective within 180 days from the date of the closing of our offering (September 27, 2010), the Company may be required to issue additional shares of its common stock (valued at $0.02 per share) to each Subscriber as liquidated damages. The penalty amount is equal to five percent of the subscription price paid by each subscriber for the first month starting September 27, 2010, if the Registration Statement is not declared effective by that date. The penalty amount equals an additional 87,500 total common shares that may be issued to all the investors for a one month delay and one percent of the subscription price paid in shares (valued at $0.02 per share) to each subscriber for every month thereafter. The maximum amount of liquidated damages due shall not exceed twenty five percent of the Subscription Price paid by the Subscribers (valued at $0.02 per share), which equals a potential maximum of 437,500 additional total common shares that may be issued to all subscribers.

On June 16, 2010 the Company collected all stock subscriptions receivable totaling $35,000 and issued the 1,750,00050,750,000 shares that were subscribed in the offering.

Effective the close of business on September 2, 2011, we effected a 29:1 forward stock split in the form of which shareholders of record at the close of business on September 2, 2011 receive an additional 29 shares of our common stock for each share of common stock held by them. All references in this report to our issued and outstanding common stock give retroactive effect to the forward stock split and as such has resulted in negative Additional Paid in Capital. Additional Paid in Capital has been reduced to zero with the effect recorded in Deficit Accumulated During the Development Stage

On October 13, 2011 the Company issued 100,000,000 shares valued at par, or $.001 per share, with a value of $100,000. Of the 100,000,000 shares issued, 40,000,000 were issued to the President and CEO. On November 18, 2011 the Company issued $14,000,000 shares for services at par, or $.001 per share, with a value of $14,000. On December 19, 2011 the Company issued 250,000 shares at par, or $.001 per share, with a value of $250. The total value of the shares issued was 114,250,000 for services with a value of $114,250.

On October 13, 2011 the Company cancelled 71,050,000 shares (by the Company’s former President, Secretary, Principal Accounting Officer & Director). The shares were valued at par, or $.001 per share, with a total value of $71,050 being credited to Paid-in-Capital.

TBSS International, Inc

(Formerly Avenue South Ltd)

(A Development Stage Company)

NOTES TOCONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

9. SUBSEQUENT EVENTS

On January 12, 2012 the President and CEO loaned the Company $3,186,000. The loan has interest of 3% and has no specific due date. The total principal loaned by the President and CEO to the Company through the date of this report is $7,186,000.

Item 2. Management’s Discussion and Analysis of Financial Conditions of Operations.

The following discussion and analysis of financial condition and results of operations relates to the operations and financial condition reported in our unaudited condensed consolidated financial statements for the three months ended June 30,December 31, 2011 and 2010 and should be read in conjunction with such financial statements and related notes included in this report. Those statements in the following discussion that are not historical in nature should be considered to be forward looking statements that are inherently uncertain. Actual results and the timing of the events may differ materially from those contained in these forward looking statements due to a number of factors, including those discussed in the “Cautionary Note on Forward Looking Statements” set forth elsewhere in this Report.

Overview

We are a visionary development firm with a management team representing over 50 years of collective experience in winning competitive contracts on the strength of incorporating proprietary technologies from a network of venture partners. On October 12, 2011 the Board of Directors decided to exit the web-based retailerretail business of imported and domestic distinctive art reproductions, collectibles andselling home décor items. We sell our products through our website www.avenuesouth.com and throughnow are focusing its efforts as an informal relationshipinternational service company to assist companies that have begun gold mining, drilling, as well as work on water well drilling, trenching and construction. The Company will first concentrate its efforts in the following industries:

Construction (including lighting for theenergy-efficient neon lighting market)

Oil Drilling

Gold Mining

Water Well Drilling

Sonic and Horizontal Drilling

The management team has experience and expertise working with our major customer, a home furnishing distributornumber of Fortune 500 companies requiring an emphasis on environmentally sound practices, in Hong Kong. We do not occupy any physical stores or outlets. We believe that the products we sell are relatively uniqueaddition to smaller companies operating domestically and will sell successfully through our website because they are not readily available at many retail outlets.internationally.

Principal Factors Affecting our Financial Performance

Our operating results are primarily affected by the following factors:

• Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an ongoing business for the next 12 months.

• Our ability to achieve and maintain profitability and positive cash flow is dependent upon:

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• our ability to developsign lucrative contracts and continually update our website;perform under those contracts;

• our ability to procureexpand our intellectual property portfolio and take advantage of new technologies presented to us;

• our ability to maintain on commercially reasonable terms relationships with third partiessizeable credit lines and buying power from whom we acquire inventory;our suppliers, which gives us an edge over the competition;

• our ability to identify and pursue mediums through which we will be able to market our products;services;

• our ability to attract new customers to our website who are interested in purchasing our products; and

• our ability to keep manage our costs and maintain low overhead.

• Based upon current plans, we expect to incur operating losses in future periods because we will continue to be in the development stage and will be incurring expenses and not generating significant revenues.

We are dependent upon our relationships with, Crown Trend Trading Ltd., our major customer and principal distributor at this time, to sell our product inventory. We do not have any formal relationship with them and they may in their sole discretion and without any penalty cease being our distributor at any time. If they cease the distribution of our products then our sole source of distribution will be through our website, which has not generated any significant revenue to date.

Results ofContinuing Operations for the three months ended June 30,December 31, 2011 and June 30,December 31, 2010 (successor).

Revenues

We generated revenues of $18,033 during the three months ended June 30, 2011 and $20,010 during the same period in 2010. This decrease in revenue

Revenues for the three months ended June 30,December 31, 2011 is due a decrease in our saleswere $350,000, all from one Trenching customer, compared to our major customer, a Hong Kong based wholesale distributor of home furnishings of $1,977. We anticipate future increases in revenue from other new distributors and consumer sales through our website but at this time, our ability to generate significant revenues continues to be uncertain and we continue to be a development stage company. Revenue from our major customer$0 for the three months ended June 30, 2011 decreased by $12,973 from the prior three month period (prior quarter) ended MarchDecember 31, 2011. We expect that future revenue from our major customer may decrease in future periods due to the uncertainty of our future business activity with this major customer.2010.

Cost of Sales

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Our cost of sales was $15,112 for the three months ended June 30, 2011 compared to $16,948 for the three months ended June 30, 2010. The decrease in the costCost of sales for the three months ended June 30,December 31, 2011 was due$327,777 compared to our decrease in revenue$0 for the three months ended June 30, 2011 as we were ableDecember 31, 2010. The cost of sales was all related to continue to sell our merchandise to our majorthe single Trenching customer this quarter.referenced above.

Gross Profit

Our gross profit was $2,921 for the three months ended June 30, 2011 compared to $3,062 for the three months ended June 30, 2010. The decrease in the gross

Gross profit for the three months ended June 30,December 31, 2011 was due$22,223 compared to our decrease in revenue$0 for the three months ended June 30, 2011. We expectDecember 31, 2010. Gross margin of 6.3% is lower than targeted (13%-20%) as this was our future gross profit marginsfirst project and we are aggressively bidding on jobs to continue to be in the range of 13% to 20% with our major customer and 13% to 25% from other customers as we continue to seek new business from wholesale distributors of home furnishing products and other retail consumers.establish revenue streams.

Expenses

Our expenses were $13,462

Expenses for the three months ended June 30,December 31, 2011, exclusive of amortization, was $127,409 compared to $115$9,285 for the three months ended June 30,December 31, 2010. The increase inof $101,991 is related to additional expenses related to the expensesnew business direction. $114,250 is related to the stock issued for services and the remainder is related to travel and general administrative expenses.

Discontinued Operations

The net income related to discontinued operations for the three monthsmonth period ended June 30,December 31, 2011 and 2010 was due to our increase costs incurred for professional fee, credit card feesincome of $0 and other general and administrative expenses for the three months ended June 30, 2011. We expect our general and administrative costs to increase sometime later in 2011 if we can expand our sales in Hong Kong and other locations and increase our profits. We may also increase our general and administrative expenses if we are able to raise money through a combination of debt financing and equity financing by way of doing another private placement.$5,800, respectively.

Net Loss

We had net loss of $10,541 during the three months ended June 30, 2011 and a net loss of $2,947 during the same period in 2010. This increase in net

Net loss for the three months ended June 30,December 31, 2011 was $118,420 compared to a loss of $3,485. The increase is duerelated to our sale to our distributorthe items discussed above as well as the profit from discontinued operations in Hong Kong and increase costs incurred for travel expenses, credit card fees and other general and administrative expenses2010 of $5,800.

Results from Continuing Operations for the threenine months ended June 30, 2011.December 31, 2011 and December 31, 2010 (successor).

Revenues

Revenues for the nine months ended December 31, 2011 were $350,000, all from one Trenching customer, compared to $0 for the nine months ended December 31, 2010.

Cost of Sales

Cost of sales for the nine months ended December 31, 2011 was $327,777 compared to $0 for the nine months ended December 31, 2010. The cost of sales was all related to the single Trenching customer referenced above.

Gross Profit

Gross profit for the nine months ended December 31, 2011 was $22,223 compared to $0 for the nine months ended December 31, 2010. Gross margin of 6.3% is lower than targeted (13%-20%) as this was our first project and we are aggressively bidding on jobs to establish revenue streams.

Expenses

Expenses for the nine months ended December 31, 2011, exclusive of amortization, was $186,686 compared to $19,691 for the nine months ended December 31, 2010. The increase of $166,995 is related to services received for stock issued ($114,250), travel of $10,000 and additional expenses related to the new business direction.

Discontinued Operations

The net income related to discontinued operations for the nine month period ended December 31, 2011 and 2010 was income of $2,921 and $14,516, respectively.

Net Loss

Net loss for the nine months ended December 31, 2011 was $174,776 compared to a loss of $5,175. The increase is related to the items discussed above as well as the profit from discontinued operations which was $2,921 for the nine months ended December 31, 2011 compared to $14,516 for the nine months ended December 31, 2010.

Results offrom Continuing Operations from July 6, 2007 (successor inception) to June 30,December 31, 2011.

Revenues

We generated revenues from continuing operations of $163,022$350,000 during the period from our inception on July 6, 2007 to June 30,December 31, 2011. This revenue was from one Trenching customer.

This revenue is primarily due to our sales to our major customer,from a Hong Kong based wholesale distributor of home furnishings.single contract. We anticipate to obtain other new distributors and consumer sales through our website but at this time, however our ability to generate significant revenues continues to be uncertain and wewill continue to be a development stage company.company if revenues do not increase substantially.

Cost of Sales

Our cost of sales from continuing operations since our inception on July 6, 2007 to June 30,December 31, 2011 was $136,750.

$327,777. The cost of sales was due to our revenue from our merchandise sales to our major customer.the Trenching customer referenced above.

Gross Profit

Our gross profit from continuing operations since our inception on July 6, 2007 to June 30,December 31, 2011 was $26,272. Substantially all$22,223. All of our gross profit is generated from our majorone customer.

Expenses

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From our inception on July 6, 2007 to June 30,December 31, 2011, our total expenses from continuing operations, excluding amortization expense, were $53,051.$226,275. These total expenses since inception to June 30,December 31, 2011 were for general and administrative expenses which consisted of professional fee,fees, credit card fees and other general and administrative expenses.expenses as well as $114,250 for shares issued for services.

Net LossDiscontinued Operations

We have a

The net loss of $26,779 during the period from ourincome related to discontinued operations since inception on July 6, 2007 to June 30, 2011. OurDecember 31, 2011was income of $26,272.

Net Loss

The net loss from continuing operations since inception on July 6, 2007 to December 31, 2011 was $191,014. The net loss is due to the reasons described above.above as well as a profit of $26,272 from discontinued operations.

Liquidity and Capital Resources as of June 30,December 31, 2011 and March 31, 2011

As of June 30,December 31, 2011, we had cash of $28,742$0 and no accounts receivable, of $8,226, total assets of $36,968$4,001,920 and working capital of $27,221$3,183,200 compared to $115,137 in cash, $115,137 in total assets and working capital of $37,762 as of March 31, 2011.   As of June 30,December 31, 2011, we have an accumulated deficit of $26,779.$258,814.

The Company plans for liquidity needs on a short term and long term basis as follows:

Short Term Liquidity:

The company currently relies on short-term financing of working capital from shareholder loans, when necessary, to fund operations. 

Long Term Liquidity:

The company plans to obtain a line-of-credit to enable its operations and eventually generate cash flow from operations to fund the business.

On November 16, 2011 the President and CEO loaned the Company $100,000. On December 13, 2011 the President and CEO loaned the Company $3,900,000 for a total of $4,000,000. The Company will continue to receive loans from shareholder until a line-of-credit can be established and the Company begins to generate positive operating cash flows.

During the threenine months ended June 30,December 31, 2011 we had the net cash if $21,014of $3,235,657 used in operating activities compared to $2,947$6,175 of net cash provided byused in our operating activities for the threenine months ended June 30,December 31, 2010, an increase in cash used in operating activities of $23,961.$3,228,482. This is due to an increase in our net loss for the threenine months ended June 30,December 31, 2011. The Company borrowed $4,000,000 from the President and CEO and purchased assets (inventory and patents) of $4,000,000.

On December 16, 2011 From our inceptionthe President and CEO of the Company entered into an agreement on July 6, 2007behalf of the Company, with a third party, to June 30, 2011, we havepurchase inventory valued at $3,192,730 and a patent of $807,270 for a total amount of $70,829$4,000,000. The patent, originally filed in cash through financing activities.May 2001, has nine years and three months left before expiring. The President and CEO then assigned the assets to the Company.

From our inception on July 6, 2007 to June 30,December 31, 2011, we had net cash of $42,087$3,256,730 used in ourby operating activities. OurFinancing activities total future$807,270 and cash requirements exceed our current cash balances. Currently, we do not have sufficient cash in our bank accounts to cover our estimated expenses for the next 12 months if we expand our future operations. If we lose our one major customer we may not be able to continue our business. We anticipate meeting our future cash requirements through a combination of equity and debt financing.provided by investing activities, $4,064,000.

It may take several years for us to fully realize our business plan.

We estimate that our expenses over the next 12 months (beginning July 1, 2011) will be approximately $140,000 as described in the table below. These estimates may change significantly depending on the nature of our future business activities and our ability to raise capital from shareholders or other sources.

We intend to meet our cash requirements for the next 12 months through a combination of debt financing, lines-of-credit and equity financing by way of private placements. We currently do not have any arrangements in place for the completion of any further private placement financings and there is no assurance that we will be successful in completing any further private placement financings. There is no assurance that any financing will be available or if available, on terms that will be acceptable to us. We may not raise sufficient funds to fully carry out any business plan.

We will also incur certain legal and accounting costs associated with the public reporting obligations in conjunction with becomingbeing a public reporting company.

Off-Balance Sheet Arrangements

As of the date of this Report, we have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.

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Inflation

The effect of inflation on our revenues and operating results has not been significant.

Critical Accounting Policies

Our financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete listing of these policies is included in Note 2 of the notes to our financial statements for the three and nine months ended June 30,December 31, 2011 and 2010 and from date of inception (July 6, 2007) to June 30,December 31, 2011. We have identified below the accounting policies that are of particular importance in the presentation of our financial position, results of operations and cash flows, and which require the application of significant judgment by management.

Use of Estimates

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

Recent Accounting Pronouncements

In August 2009, the FASB issued an Accounting Standards Update (“ASU”) No.2009.05 regarding measuring liabilities at fair value. This ASU provides additional guidance clarifying the measurement of liabilities at fair value in circumstances in which a quoted price in an active market for the identical liability is not available; under those circumstances, a reporting entity is required to measure fair value using one or more of valuation techniques, as defined. This ASU is effective for the first reporting period, including interim periods, beginning after the issuance of this ASU. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

The Company does not expect that adoption of recently issued accounting pronouncements will have a material impact on its financial position, results of operations or cash flows.

Item 3. Quantitative And Qualitative Disclosures About Market Risk.

Pursuant to Item 305(e) of Regulation S-K, we are not required to provide the information required by this Item as we are a “smaller reporting company.”

Not Applicable

Item 4. Controls And Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15(e), our management hasWe carried out an evaluation with the participation and under the supervision of Irina Goldman, our President and Principal Accounting Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30,December 31, 2011.  This evaluation was accomplished under the supervision and with the participation of our chief executive officer / principal executive officer, and chief financial officer / principal financial officer who concluded that our disclosure controls and procedures are not effective.

Based upon an evaluation conducted for the period ended December 31, 2011, our Chief Executive and Chief Financial Officer as of December 31, 2011 and as of the date of this evaluation, Ms. Goldman, determinedReport, has concluded that as of the end of the periods covered by this report, we have identified the following material weakness of our disclosure controls and procedures were effective at the reasonable assurance level.internal controls:

In order to remedy our existing internal control deficiencies, as our finances allow, we will hire additional accounting staff.

Changes in Internal ControlControls over Financial Reporting

During the fiscal quarter ended June 30, 2011 there were no

We have not yet made any changes in our internal controlcontrols over financial reporting that occurred during the period covered by this report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1.     Legal Proceedings

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm business. We are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse affect on our business, financial condition or operating results.

Item 1A. Risk Factors

As a smaller reporting company, we are not required to make disclosures under this Item 1A.

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

None.

Item 3.     Defaults Upon Senior Securities

None.

Item 4.     Removed and ReservedMine Safety Disclosures

Not Applicable

Item 5.     Other Information

None

Item 6.     Exhibits and reports on Form 8-K

October 6, 2011: Announcing the Departures of Directors or Principal Officers; Election of Directors; Appointment of Principal Officer. Effective September 30, 2011, the board of directors appointed Todd Spinelli and Kim Spinelli to fill the vacancies on the board of directors. Georgette Mathers, the Company’s President, Secretary, Chief Executive Officer, Chief Financial Officer and Director resigned from the board of directors and resigned as the Company’s President, Secretary, Chief Executive Officer and Chief Financial Officer.

October 14, 2011: Costs Associated with Exit or Disposal Activities, Unregistered Sales of Equity Securities, Changes in Control of Registrant, and Amendments to the Articles of Incorporation or Bylaws.

(a)  Exhibits

_________________

* Filed herewith

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SIGNATURES

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

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