0001524777-11-000049.txt : 20110819 0001524777-11-000049.hdr.sgml : 20110819 20110819130652 ACCESSION NUMBER: 0001524777-11-000049 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20110630 FILED AS OF DATE: 20110819 DATE AS OF CHANGE: 20110819 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Aquasil International Inc. CENTRAL INDEX KEY: 0001405260 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 0208 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-54252 FILM NUMBER: 111046796 BUSINESS ADDRESS: STREET 1: 380 LEXINGTON AVE STREET 2: 17TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10168 BUSINESS PHONE: 888-510-3394 MAIL ADDRESS: STREET 1: 380 LEXINGTON AVE STREET 2: 17TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10168 FORMER COMPANY: FORMER CONFORMED NAME: BWI Holdings, Inc. DATE OF NAME CHANGE: 20081203 FORMER COMPANY: FORMER CONFORMED NAME: Gray Creek Mining Inc. DATE OF NAME CHANGE: 20070629 10-Q 1 form10q.htm FORM 10-Q form10q.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
 
For the quarterly period ended June 30, 2011
   
[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
 
For the transition period from __________ to ______________

000-54252
(Commission File Number)
   
AQUASIL INTERNATIONAL INC.
(Exact name of registrant as specified in its charter)
   
Nevada
N/A
 
(I.R.S. Employer Identification No.)
   
380 Lexington Avenue, 17th Floor, New York, NY
10168
(Address of principal executive offices)
(Zip Code)
   
(888) 510-3394
(Registrant’s telephone number, including area code)
 
(Former name, former address and former fiscal year, if changed since last report)

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.

 
Yes [X]  No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data 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).

 
Yes [ X ]  No [  ]

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

Large accelerated filer
[  ]
Accelerated filer
[  ]
       
Non-accelerated filer
[  ]
Smaller reporting company
[X]
(Do not check if a smaller reporting company)
     
 
 
 
1

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

 
Yes [  ]  No [X]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

 
Yes [  ]  No [  ]

APPLICABLE ONLY TO CORPORATE ISSUERS

149,498,349 common shares outstanding as of August 10, 2011
(Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.)

 
2

 
AQUASIL INTERNATIONAL INC.
TABLE OF CONTENTS

   
Page
 
PART I – FINANCIAL INFORMATION
3
     
Item 1.
Consolidated Financial Statements
4
     
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
10
     
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
12
     
Item 4.
Controls and Procedures
12
     
 
PART II – OTHER INFORMATION
14
     
Item 1.
Legal Proceedings
14
     
Item 1A.
Risk Factors
14
     
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
14
     
Item 3.
Defaults Upon Senior Securities
14
     
Item 4.
Removed and Reserved
14
     
Item 5.
Other Information
14
     
Item 6.
Exhibits
15
     
 
SIGNATURES
16
 
 
3

 

PART I

ITEM 1.               CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 210 8-03 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments considered necessary for a fair presentation have been included.  All such adjustments are of a normal recurring nature.  Operating results for the three and six month periods ended June 30, 2011, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2011.  For further information refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-KT for the fiscal year ended December 31, 2010.

 
Page
   
Consolidated Financial Statements
 
   
Consolidated Balance Sheets
   
Consolidated Statements of Operations
6
   
Consolidated Statements of Cash Flows
7
   
Notes to Consolidated Financial Statements
8 to 9

 
4

 

AQUASIL INTERNATIONAL INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
Consolidated Balance Sheets

ASSETS
 
June 30, 2011
(Unaudited)
   
December 31, 2010
(Audited)
 
Current
           
Cash
  $ 669     $ 865  
Total Assets
  $ 669     $ 865  
                 
LIABILITIES
               
Current
               
Accounts payable and accrued liabilities
  $ 283,082     $ 101,160  
Advances from stockholders
    245,187       922,527  
Total Current Liabilities
    528,269       1,023,687  
                 
STOCKHOLDERS’ DEFICIT
               
Capital stock –
               
Preferred stock, $0.0001 par value, non-voting, 20,000,000 authorized, none issued and outstanding
    -       -  
Common stock, $0.0001 par value, voting, 500,000,000 authorized, 149,498,349 issued and outstanding
    14,950       7,950  
Additional Paid-in Capital
    693,000       -  
Deficit accumulated during the development stage
    (1,235,550 )     (1,030,772 )
Total Stockholders’ Deficit
    (527,600 )     (1,022,822 )
Total Liabilities and Stockholders’ Deficit
  $ 669     $ 865  
The accompanying notes are an integral part of these consolidated financial statements

 
5

 
AQUASIL INTERNATIONAL INC.  AND SUBSIDIARY
 (A DEVELOPMENT STAGE COMPANY)
Consolidated Statements of Operations
For The Three and Six Months Ended June 30, 2011 and
from Inception (September 21, 2010) To June 30, 2011
(Unaudited)

                   
   
Three Months Ended
   
Six Months Ended
   
From Inception
 (September 21, 2010) to
 
   
June 30, 2011
   
June 30, 2011
   
June 30, 2011
 
Revenue
  $ -     $ -     $ -  
                         
Operating Expenses
                       
Professional fees
    24,236       188,414       198,084  
General and administrative expenses
    6,821       16,364       16,499  
Total operating expenses
    31,057       204,778       214,583  
                         
Net Loss
  $ (31,057 )   $ (204,778 )   $ (214,583 )
                         
                         
Basic and diluted loss per share
  $ (0.00 )   $ (0.00 )        
                         
Weighted average number of shares outstanding
    149,498,349       136,348,892          
The accompanying notes are an integral part of these consolidated financial statements

 
6

 
AQUASIL INTERNATIONAL INC.  AND SUBSIDIARY
 (A DEVELOPMENT STAGE COMPANY)
Consolidated Statements of Cash Flows
For The Six Months Ended June 30, 2011 and
from Inception (September 21, 2010) To June 30, 2011
(Unaudited)

         
From Inception
 
   
Six Months Ended
   
(September 21, 2010)
 
   
June 30, 2011
   
to June 30, 2011
 
Cash flows from operating activities
           
Net loss
  $ (204,778 )   $ (214,583 )
Adjustment to reconcile net loss to cash used by operations:
               
Accounts payable and accrued liabilities
    181,922       181,922  
Net cash provided by (used) in operating activities
    (22,856 )     (32,661 )
                 
Cash flows from Financing Activities
               
Acquisition of AquaSil Inc.
    -       1,000  
Advances from stockholders
    22,660       32,330  
Net cash provided by financing activities
    22,660       33,330  
                 
(Decrease) Increase in cash during the period
    (196 )     669  
Cash, beginning of period
    865       -  
Cash, end of period
  $ 669     $ 669  
                 
Supplemental disclosure of cash flow information:
               
Cash paid for:
               
    Interest
  $ -     $ -  
    Income taxes
  $ -     $ -  
                 
Non-cash transactions:
               
Common stock issued for settlement of advances from stockholders
  $ 700,000     $ 700,000  
The accompanying notes are an integral part of these consolidated financial statements

 
7

 
AQUASIL INTERNATIONAL INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
For The Period From Inception (September 21, 2010) To June 30, 2011


1.       ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Organization and Nature of Operations

Gray Creek Mining, Inc. was incorporated on August 10, 2006 under the laws of the State of Nevada. A Certificate of Amendment was filed with the Nevada Secretary of State, on November 7, 2008, changing the Company’s name to BWI Holdings, Inc. A Certificate of Amendment was filed with the Nevada Secretary of State, on January 27, 2011, changing the Company’s name to Aquasil International Inc. (the “Company”).

On December 30, 2010, the Company entered into a stock exchange agreement (the “Stock Exchange Agreement”) with AquaSil, Inc., a New York Company(“AquaSil”) and the sole stockholder of AquaSil.  In accordance with the Stock Exchange Agreement, the Company acquired 100% of the total issued and outstanding shares of common stock of AquaSil in exchange for the issuance of an aggregate 70,000,000 shares of the Company’s common stock to the sole stockholder of AquaSil. As a result of this transaction, AquaSil became a wholly-owned subsidiary of the Company

The Company’s wholly owned subsidiary, AquaSil, was incorporated in the State of New York on September 21, 2010 to engage in the business of selling various water and soft drink products.

Basis of Presentation

The Company is in the development stage and has no revenues. A development stage company is one in which all efforts are devoted substantially to establishing a new business and even if planned principal operations have commenced, revenues are insignificant.

These consolidated financial statements include the accounts of Aquasil International Inc. and its wholly owned subsidiary, AquaSil for the period from inception of AquaSil (September 21, 2010) to December 31, 2010. All significant intercompany balances and transactions have been eliminated upon consolidation.

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. Operating results for the three and six month periods ended June 30, 2011, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2011. For further information refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

 2.       GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company is a development stage company and is dependent on raising capital to commence principal operations. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern.

Management believes the Company’s ability to continue as a going concern is dependent on its ability to raise capital. At present, the Company has no commitments for any additional financing. Management is currently seeking financing through a possible offering of common stock, which will be used to finance operations. Until such financing is obtained, it is the intent of stockholders to provide funds for professional fees related to maintaining the Company’s public reporting status.

The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 
8

 
AQUASIL INTERNATIONAL INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
For The Period From Inception (September 21, 2010) To June 30, 2011

3.       RECENT ACCOUNTING PRONOUNCEMENTS

There have been no significant developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on our consolidated financial statements, from those disclosed in our 2010 Annual Report on Form 10-K.

4.       LICENSE AGREEMENT

On October 25, 2010, the Company’s subsidiary, AquaSil, entered into a license agreement (the “Agreement”) with Khasid ICT, a corporation organized under the laws of the country of Tajikistan and controlled and managed by a controlling stockholder of the Company. Under the agreement, AquaSil has been granted an exclusive, sub-licensable, assignable, royalty-bearing license to use the Formula “ROSS TJ 72 N00422” (the “Formula”) for the purpose of selling the licensed products, as defined, throughout the world. Royalties are due quarterly, calculated at the rate of 5% of gross revenues. The term of the license is through December 31, 2020, unless terminated earlier. The licensor may terminate the Agreement without cause with 180 days prior notice or immediately with written notice.

5.       ADVANCES FROM STOCKHOLDERS
 
On February 3, 2011, the Company issued 70,000,000 shares of common stock in settlement of $700,000 of advances from stockholders.

These advances represent amounts loaned to the business by principal stockholders and are unsecured, non-interest bearing and due on demand.

6.      COMMON STOCK

On January 21, 2011, the Company amended its articles of incorporation to increase its authorized share capital from 100,000,000 to 500,000,000 shares of common stock.

On February 3, 2011, the Company issued 70,000,000 shares of common stock at $0.01 per share in settlement of $700,000 of advances from stockholders.

 
9

 
ITEM 2.             MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS
 
This quarterly report contains forward-looking statements relating to future events or our future financial performance.  In some cases, you can identify forward-looking statements by terminology such as "may", "should", "intends", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology.  These statements are only predictions and involve known and unknown risks, uncertainties and other factors which may cause our or our industry's actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements.

Such factors include, among others, the following: international, national and local general economic and market conditions:  demographic  changes; the ability of the Company to sustain,  manage or  forecast  its growth;  the ability of the Company to successfully make and integrate acquisitions; raw material costs and availability;  new product  development and  introduction;  existing  government regulations  and  changes  in,  or  the  failure  to  comply  with,   government regulations;  adverse publicity; competition; the loss of significant customers or suppliers;  fluctuations  and  difficulty in forecasting  operating  results; changes in business strategy or development  plans; business  disruptions; the ability  to attract  and  retain  qualified  personnel; the  ability to protect technology; and other factors referenced in this and previous filings.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. Except as required by applicable laws, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Given these uncertainties, readers of this Form 10-Q and investors are cautioned not to place undue reliance on such forward-looking statements.  The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

All dollar amounts stated herein are in US dollars unless otherwise indicated.

The management’s discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").  The following discussion of our financial condition and results of operations should be read in conjunction with our audited financial statements for the years ended August 31, 2010, and 2009, together with notes thereto.

General Development of Business

Gray Creek Mining, Inc. was incorporated on August 10, 2006 under the laws of the state of Nevada.  A Certificate of Amendment was filed with the Nevada Secretary of State, on November 7, 2008, changing the Company's name to BWI Holdings, Inc. On November 7, 2008 the Company also increased the authorized capital to 100,000,000 shares of common stock and 200,000,000 shares of preferred stock.  A Certificate of Amendment was filed with the Nevada Secretary of State, on January 27, 2011, changing the Company's name to Aquasil International Inc. (the "Company").  On January 21, 2011, we amended our articles of incorporation to increase our authorized share capital from 100,000,000 to 500,000,000 shares of common stock. 
 
Effective December 30, 2010, BWI Holdings, Inc., entered into a stock exchange agreement (the “Stock Exchange Agreement”) with Aquasil Inc., a New York corporation (“Aquasil”), and Ilya Khasidov, the sole shareholder of Aquasil (the “Aquasil Shareholder”). In accordance with the terms and provisions of the Stock Exchange Agreement, we acquired one hundred percent (100%) of the total issued and outstanding shares of common stock of Aquasil held of record by the Aquasil Shareholder in exchange for issuance of an aggregate 70,000,000 shares of our restricted common stock to the Aquasil Shareholder.  
 
Please note that throughout this Transition Annual Report, and unless otherwise noted, the words "we," "our," "us," the "Company," or "Aquasil International," refers to Aquasil International Inc.

 
10

 
Current Operations

The Company, through its wholly owned subsidiary, AquaSil, Inc.,  will engage in the distribution of the mineral water produced by Khasid ICT, the licensor, under the name “Mineral Silver Water”. Water is life – this is an ancient eastern wisdom. This saying is also true for our days. The technological influence of the humankind on the environment has potentially reached threatening levels.  The use of pesticides in the agriculture, the influence of chemical production, auto transport, worn-out utility lines – this list of the factors which decrease the quality of the water is far from complete. Based on United Nations data, management believes that inhabitants of our planet experience the deficit of water and about 70% of inhabitants consume drinking water of poor quality. With each year the problem of water consumption becomes increasingly urgent, especially in the arid regions of Asia, Africa and etc. The situation here can be described as very pressing, both in the sense of scarcity and quality of water.

Within developed nations, management believes that about 92% of population use for consumption purchased purified water with a stable content of calcium, magnesium, iodine, fluorine and other most important microelements. The concentration of microelement is the most important factor which highly varies in various types of water sold in the stores, starting with almost completely distilled one, obtained by the technology of reverse osmosis, and ending with a very hard one, which is obtained practically without any additional treatment and processing from various underground springs. In the process of estimating the degree of the risk from the nature of undesirable admixtures in the water, the most important role is played by microbiological pollution. Thus, the studies of Dr. Robert Tardiff from the USA showed that the danger of contracting a disease from the microbiologically contaminated water is thousand times higher (up to hundred thousand times) than from the pollution of water by the chemical compounds of various nature.

The government of Republic of Tadzhikistan has been trying to solve the problems of this nature for many years. Tadzhikistan is located in the southeast Central Asia. Tadzhikistan is rich in various mineral waters. Many types of mineral waters are found distinguished by the specific components - carbonate, hydrogen sulfide, iodine-brome, siliceous, radon and also by the level of mineralization - from fresh water to the highly strong brines; by the content of gases - carbonate, hydrogen sulfide, nitric, methane; by the temperature - from cold to very hot. In the Republic of Tadzhikistan, there are registered more than 200 springs. In the regions of paleozoic deposits and magmatic rock there are noted 86 natural yields of carbonate and nitric waters, about 70 of them are located on the Pamirs. The high-yielding springs – Obigarm, Hodja -Obigarm - are located within the limits of Gissar ridge. The gorge Vardob is also located there. The Varzobok gorge contains seven mountain rivers: Varzob (High water}, Simigandzh, Sieme, Vakhsh, Siyi, Amoo, Sokkhab. Pristine beauty of the surrounding nature, region of high mountains, complete absence and remoteness of the industrial centers serves as the reliable protection of the water from the polluting environmental effects.

In this remote location, Khasid ICT, AquaSil Inc's licensor has acquired a section of land and constructed a water intake facility with environmentally protected conservation zone on the basis of the natural, self-effusing spring, with the debit of water 50 m3 in a 24 hour period, which ensures intake and dispatch of the superb, ecologically clean mineral water " Mineral Silver Water" with the natural silver content. At the same time, at the distance of 30 km from the mineral spring in the city of Dushanbe, Khasid has built a plant, equipped with the continuous production cycle facilities for the production of polyethylene terephthalate (“PET”) bottles, bottling and packing of the finished product. Distribution of the finished product is carried out through the network of retail outlets and the foreign Embassies of the city and the republic.
   
Liquidity and Capital Resources

As of June 30, 2011 the Company had total cash of $669 and a working capital deficit of ($527,600) as compared to December 31, 2010 with $865 in cash and a working capital deficit of $1,022,822.  Since inception, the Company has financed its working capital needs through advances from stockholders. The Company believes it will require up to $1,000,000 in order to meet its proposed business operations over the next twelve months.  The Company requires $250,000 for operating expenses including but not limited to marketing and advertising of its new products, $250,000 for general and administrative expenses and $500,000 for inventory.  The Company's future liquidity requirements will be dependent upon the ability to raise financing either by debt or by equity through private placement transactions. Until such financing is obtained, it is the intent of stockholders to provide funds for professional fees related to maintaining the Company’s public reporting status.

The Company is a development stage company and is dependent on raising capital to commence principal operations.  The Company has not begun operations of its acquired business, has incurred a loss for the period and is dependent on debt financing for its operating cash flow. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern.

 
11

 
Management believes the Company’s ability to continue as a going concern is dependent on its ability to raise capital. At present, the Company has no commitments for any additional financing. Management is currently seeking financing through a possible private offering of common stock, which will be used to finance operations.

Results of Operations

For the six month period ended June 30, 2011, the Company has incurred professional fees totaling $188,414 and general and administrative fees totaling $16,364, with $24,236 in professional fees and $6,821 in general and administrative was incurred in the three months ended June 30, 2011.  There are no comparable expenditures for the period ended June 30, 2010 as the reverse merger occurred in September, 2010.   The Company has not yet generated any revenues and is only able to undertake limited operations until such time as sufficient funding can be raised for operations.

Off-Balance Sheet Arrangements

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 financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

ITEM 3.              QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is a smaller reporting company and is not required to provide this information.

ITEM 4.              CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and the principal financial officer, are responsible for conducting an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end of the quarterly period covered by this report. Disclosure controls and procedures means that the material information required to be included in our Securities and Exchange Commission reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our company, including any consolidating subsidiaries, and was made known to us by others within those entities, particularly during the period when this report was being prepared. Based on this evaluation, our principal executive officer and principal financial officer concluded as of the evaluation date that our disclosure controls and procedures were not effective as of June 30, 2011.
 
Management’s Report on Internal Control Over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The internal control process has been designed, under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America.

Management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting as of June 30, 2011, including (i) the control environment, (ii) risk assessment, (iii) control activities, (iv) information and communication, and (v) monitoring. Based on this assessment, management has determined that the Company’s internal control over financial reporting as of June 30, 2011 was not effective for the reason described herein.

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) inadequate segregation of duties consistent with control objectives. The aforementioned material weaknesses were identified by our Chief Executive Officer in connection with the review of our financial statements as of June 30, 2011.

Management believes that the material weakness set forth above did not have an effect on our financial results.

 
12

 
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparations and presentations. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
This quarterly report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide on management’s report on this quarterly report.

Changes in Internal Control Over Financial Reporting

There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the evaluation date. We have not identified any significant deficiencies or material weaknesses in our internal controls, and therefore there were no corrective actions taken.
 
 
13

 

PART II – OTHER INFORMATION
 
ITEM 1.               LEGAL PROCEEDINGS

The Company is not a party to any legal proceedings and is not aware of any pending legal proceedings as of the date of this Form 10-Q.

ITEM 1A.           RISK FACTORS

The Company is a smaller reporting company and is not required to provide this information.

ITEM 2.              UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Securities:

There were no unregistered securities to report which were sold or issued by the Company without the registration of these securities under the Securities Act of 1933 in reliance on exemptions from such registration requirements, within the period covered by this report, which have not been previously included in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K.

ITEM 3.               DEFAULTS UPON SENIOR SECURITIES

The Company does not have any senior securities as of the date of this Form 10-Q.

ITEM 4.              REMOVED AND RESERVED

ITEM 5.              OTHER INFORMATION

On August 11, 2011, Mr. Bruce Milroy the Company’s Chief Financial Officer resigned and Mr. Ilya Khasidov, the Company’s current Chief Executive Officer, President, Secretary and Treasurer was appointed Chief Financial Officer, making Mr. Khasidov the sole officer of the Company.
 
 
14

 

ITEM 6. EXHIBITS
 
The following exhibits are included with this filing:
 
Number
Description
 
3.1
Articles of Incorporation
Incorporated by reference to the Exhibits filed with the Form SB-2 filed with the SEC on August 15, 2007
3.1(i)
Amendment to Articles of Incorporation
Incorporated by reference to the Exhibits filed with the Form 8-K filed with the SEC on November 13, 2008
3.1(ii)
Amendment to Articles of Incorporation
Incorporated by reference to the Exhibits filed with the Form 8-K filed with the SEC on February 3, 2011
3.1(iii)
Amendment to Articles of Incorporation
Incorporated by reference to the Exhibits filed with the Form 8-K filed with the SEC on February 18, 2011
3.2
Bylaws
Incorporated by reference to the Exhibits filed with the Form SB-2 filed with the SEC on August 15, 2007
10.1
Stock Exchange Agreement between the Company, AquaSil, Inc. and Ilya Khasidov dated December 30, 2010
Incorporated by reference to the Exhibits attached to the Company's Form 8-K filed with the SEC on January 3, 2011
31.1
Section 302 Certification - Principal Executive Officer
Filed herewith
31.2
Section 302 Certification - Principal Financial Officer
Filed herewith
32.1
Certification Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Filed herewith

 
 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


   
AQUASIL INTERNATIONAL INC.
       
Date:
August 19, 2011
By:
/s/ Ilya Khasidov
   
Name:
Ilya Khasidov
   
Title:
President, Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer)
       


 
16

 

EX-31.1 2 ex311.htm CERTIFICATION ex311.htm


RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Ilya Khasidov, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Aquasil International Inc.;

(2) Based on my knowledge, this  report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: August 19, 2011
By:
/s/Ilya Khasidov  
    Name: Ilya Khasidov  
    Title: President, Chief Executive Officer (Principal Executive Officer)  
       

 
 

 

EX-31.2 3 ex312.htm CERTIFICATION ex312.htm


RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Ilya Khasidov, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Aquasil International Inc.;

(2) Based on my knowledge, this  report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting
 
 
Date: August 19, 2011
By:
/s/Ilya Khasidov  
    Name: Ilya Khasidov  
    Title: Secretary-Treasurer, Chief Financial Officer (Principal Financial and Accounting Officer)  
       
 
 
 
 

 
EX-32.1 4 ex321.htm CERTIFICATION ex321.htm


EXHIBIT 32

AQUASIL INTERNATIONAL INC.

CERTIFICATION PURSUANT TO
18 U.S.C. Section 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aquasil International Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ilya Khasidov, as Chief Executive Officer, President (Principal Executive Officer), Secretary, Treasurer, and Chief Financial Officer (Principal Financial Officer) of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 
(2)
The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Date: August 19, 2011 
By:
/s/ Ilya Khasidov
 
 
 Name:
Ilya Khasidov
 
 Title:
President, Chief Executive Officer (Principal Executive Officer), Secretary, Treasurer, Chief Financial Officer (Principal Financial Officer)

A signed original of this written statement required by Section 1350 of Title 18 of the United States Code has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 1350 of Title 18 of the United States Code and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934 (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing.)
 
 
 

 

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Recent Accounting Pronouncements
6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
Recent accounting pronouncements

3.       RECENT ACCOUNTING PRONOUNCEMENTS

 

There have been no significant developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on our consolidated financial statements, from those disclosed in our 2010 Annual Report on Form 10-K.

XML 17 R6.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Organization, Nature of Operations and Basis of Presentation
6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
Organization, Nature of Operations and Basis of Presentation

1.       ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION

 

Organization and Nature of Operations

 

Gray Creek Mining, Inc. was incorporated on August 10, 2006 under the laws of the State of Nevada. A Certificate of Amendment was filed with the Nevada Secretary of State, on November 7, 2008, changing the Company’s name to BWI Holdings, Inc. A Certificate of Amendment was filed with the Nevada Secretary of State, on January 27, 2011, changing the Company’s name to Aquasil International Inc. (the “Company”).

 

On December 30, 2010, the Company entered into a stock exchange agreement (the “Stock Exchange Agreement”) with AquaSil, Inc., a New York corporation (“AquaSil”) and the sole stockholder of AquaSil.  In accordance with the Stock Exchange Agreement, the Company acquired 100% of the total issued and outstanding shares of common stock of AquaSil in exchange for the issuance of an aggregate 70,000,000 shares of the Company’s common stock to the sole stockholder of AquaSil. As a result of this transaction, AquaSil became a wholly-owned subsidiary of the Company

 

The Company’s wholly owned subsidiary, AquaSil, was incorporated in the State of New York on September 21, 2010 to engage in the business of selling various water and soft drink products.

 

Basis of Presentation

 

The Company is in the development stage and has no revenues. A development stage company is one in which all efforts are devoted substantially to establishing a new business and even if planned principal operations have commenced, revenues are insignificant.

 

These consolidated financial statements include the accounts of Aquasil International Inc. and its wholly owned subsidiary, AquaSil for the period from inception of AquaSil (September 21, 2010) to December 31, 2010. All significant intercompany balances and transactions have been eliminated upon consolidation.

 

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. Operating results for the three and six month periods ended June 30, 2011, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2011. For further information refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

XML 18 R9.htm IDEA: XBRL DOCUMENT  v2.3.0.11
License Agreement
6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
License Agreement

4.       LICENSE AGREEMENT

 

On October 25, 2010, the Company’s subsidiary, AquaSil, entered into a license agreement (the “Agreement”) with Khasid ICT, a corporation organized under the laws of the country of Tajikistan and controlled and managed by a controlling stockholder of the Company. Under the agreement, AquaSil has been granted an exclusive, sub-licensable, assignable, royalty-bearing license to use the Formula “ROSS TJ 72 N00422” (the “Formula”) for the purpose of selling the licensed products, as defined, throughout the world. Royalties are due quarterly, calculated at the rate of 5% of gross revenues. The term of the license is through December 31, 2020, unless terminated earlier. The licensor may terminate the Agreement without cause with 180 days prior notice or immediately with written notice.

XML 19 R10.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Advances from Stockholders
6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
Advances from Stockholders

5.       ADVANCES FROM STOCKHOLDERS

 

On February 3, 2011, the Company issued 70,000,000 shares of common stock in settlement of $700,000 of advances from stockholders.

 

These advances represent amounts loaned to the business by principal stockholders and are unsecured, non-interest bearing and due on demand.

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Common Stock
6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
Common Stock

6. COMMON STOCK

 

On January 21, 2011, the Company amended its articles of incorporation to increase its authorized share capital from 100,000,000 to 500,000,000 shares of common stock.

 

On February 3, 2011, the Company issued 70,000,000 shares of common stock at $0.01 per share in settlement of $700,000 of advances from stockholders.

XML 22 R5.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended 9 Months Ended
Jun. 30, 2011
Jun. 30, 2011
Cash flows from operating activities    
Net loss $ (204,778) $ (214,583)
Adjustment to reconcile net loss to cash used by operations:    
Accounts payable and accrued liabilities 181,922 181,922
Net cash provided by (used) in operating activities (22,856) (32,661)
Cash flows from Financing Activities    
Acquisition of AquaSil Inc.   1,000
Advances from stockholders 22,660 32,330
Net cash provided by financing activities 22,660 33,330
(Decrease) Increase in cash during the period (196) 669
Cash, beginning of period 865  
Cash, end of period 669 669
Supplemental disclosure of cash flow information:    
Interest    
Income taxes    
Non-cash transactions:    
Common stock issued for settlement of advances from stockholders 700,000 700,000
XML 23 R7.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Going Concern
6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
Going Concern

 2.       GOING CONCERN

 

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company is a development stage company and is dependent on raising capital to commence principal operations. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern.

 

Management believes the Company’s ability to continue as a going concern is dependent on its ability to raise capital. At present, the Company has no commitments for any additional financing. Management is currently seeking financing through a possible offering of common stock, which will be used to finance operations. Until such financing is obtained, it is the intent of stockholders to provide funds for professional fees related to maintaining the Company’s public reporting status.

 

The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

XML 24 R2.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Balance Sheets (Unaudited) (USD $)
Jun. 30, 2011
Dec. 31, 2010
Current    
Cash $ 669 $ 865
Total Assets 669 865
Current    
Accounts payable and accrued liabilities 283,082 101,160
Advances from stockholders 245,187 922,527
Total Current Liabilities 528,269 1,023,687
STOCKHOLDERS DEFICIT    
Preferred stock, $0.0001 par value, non-voting, 20,000,000 authorized, none issued and outstanding    
Common stock, $0.0001 par value, voting, 500,000,000 authorized, 149,498,349 issued and outstanding 14,950 7,950
Additional Paid-in Capital 693,000  
Deficit accumulated during the development stage (1,235,550) (1,030,772)
Total Stockholders Deficit (527,600) (1,022,822)
Total Liabilities and Stockholders Deficit $ 669 $ 865
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