The following discussions of results, causes and trends should not be construed to imply any conclusion that these results or trends will necessarily continue into the future.

During the next 12 months we intend to identify and establish markets for our products and arrange for the construction, delivery and commissioning of equipment to satisfy those markets. We anticipate that we will not be able to satisfy our cash requirements for the next 12 months and that we will have to raise additional funds of $1,000,000 for the following:

                                                                      Potential      Estimated
Description                                                        Completion Date   Expenses
                                                                                        ($)
Construction or purchase of purification equipment                    12 months        500,000
Marketing expenses                                                    12 months        300,000
Research and development                                              12 months         50,000
Professional fees (legal, accounting and auditing fees)               12 months        100,000
General and administrative expenses                                   12 months         50,000
Total                                                                                1,000,000

We will require additional funds to implement our growth strategy and develop our water clarification and water reclamation business. These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution to the equity ownership of our common stock. There is no assurance that we will be able to maintain our operations at a level sufficient for an investor to obtain a return on his or her investment in our common stock. Further, we may be unprofitable.

We intend to design and build purification equipment based on contracted orders, and we plan to conduct marketing via demonstrations, participation in trade shows, advertising in electronic and print media and by developing a global representative and dealer network. We will continue to spend money on research and development in order to develop Purio's technology for a broader range of applications.

We cannot provide a guarantee that we will be able to obtain the funds required to continue our operations. We intend to pursue various financing alternatives to meet our immediate and long-term financial requirements, but there is no assurance that additional financing will be available to us when we need it or that we will be able to obtain it on commercially reasonable terms. If we are not able to obtain additional financing on a timely basis, we will be unable to conduct our operations as planned, and we will not be able to meet our obligations as they become due. In such event, we will be forced to scale down or perhaps even cease our operations.

Going Concern

We have not generated any revenues to date and depend on obtaining outside financing to carry out our operations. If we are unable to raise equity or secure alternative financing, we may not be able to continue our operations and our business plan may fail.

If our operations and cash flow improve, management believes that we can continue to operate. However, no assurance can be given that management's actions will result in profitable operations or an improvement in our liquidity situation. The threat of our ability to continue as a going concern will cease to exist only when our revenues have reached a level able to sustain our business operations.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Critical Accounting Policies

Our financial statements are affected by the accounting policies used and the estimates and assumptions made by management during their preparation. We have identified below an accounting policy that is 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.

Cash and Cash Equivalents

For purposes of our cash flow statements, we consider all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.