UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2009

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________ To ______________________

Commission file number: 333-142019

PURIO INC.

(Exact name of registrant as specified in its charter)

Nevada		98-05255034
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1048 – 1685 H Street

Blaine, Washington 98230

(Address of principal executive offices)

888.590.1156

(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. Yesþ No o

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 o Accelerated filer o Non-accelerated filer o Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

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

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 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 o No o

APPLICABLE ONLY TO CORPORATE ISSUERS

As of August 19, 2009 the registrant’s outstanding common stock consisted of 55,234,063 shares.

Table of Contents

PART I – FINANCIAL INFORMATION	3

Item 1. Financial Statements	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3. Quantitative and Qualitative Disclosures About Market Risk	10
Item 4. Controls and Procedures	10

PART II – OTHER INFORMATION	11

Item 1. Legal Proceedings	11
Item 2. Unregistered Sales of Equity Securities	11
Item 3. Defaults Upon Senior Securities	11
Item 4. Submission of Matters to a Vote of Security Holders	11
Item 5. Other Information	11
Item 6. Exhibits	11

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

The unaudited interim financial statements of Purio Inc. follow. All currency references in this report are to U.S. dollars unless otherwise noted.

Purio Inc.

(A Development Stage Company)

June 30, 2009

Index

Consolidated Balance Sheet	F-1
Consolidated Statement of Operations	F-2
Consolidated Statement of Cash Flows	F-3
Consolidated Statement of Stockholders’ Equity	F-4
Notes to the Consolidated Financial Statements	F-5

PURIO, INC.

( A Development Stage Company)

CONSOLIDATED BALANCE SHEET

	June 30, 2009			December 31, 2008
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	1,579		$	36,409
Prepaid Expenses		11,088			11,088
Inventory		13,092			11,006
Total Current Assets		25,759			58,503
Property and Equipment
Fixed Assets, net		41,996			45,999
Other Assets
Patents		121,610			121,610

TOTAL ASSETS	$	189,365		$	226,112

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable		9,416			9,988
Deposits		167,395			265,385
Subscriptions Received		126,130			35,955
Loans from Officer		31,290			17,089
Total Current Liabilities		334,231			328,417

Other Liabilities
Note Payable	$	15,166		$	-

TOTAL LIABILITIES	$	349,397		$	328,417

Shareholders' Equity (Deficit)
Common Stock, no par value; stated value $0.001, authorized
375,000,000 shares; issued and outstanding
55,234,063 as at June 30, 2009,
55,234,063 as at December 31, 2008		55,234			55,234
Additional Paid-In Capital		933,365			933,365
Deficit accumulated during the development stage		(1,148,631	)		(1,090,904	)

TOTAL SHAREHOLDERS' EQUITY (DEFICIT)		(160,032	)		(102,305	)

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	189,365		$	226,112

F-1

PURIO INC.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

													For the Period
													of Inception
													from Nov. 16,
	For the three months ended						For the six months ended						1999, through
	June 30						June 30						June 30,
	2009			2008			2009			2008			2008
Revenue
Sales	$	-		$	138		$	-		$	414		$	5,113
Selling Expenses
Marketing		-			-			-			414			40,345
General and Administrative Expenses:
Professional Fees		15,523			1,377			21,700			29,005			352,697
Exploration Costs and Expenses		-			-			-						22,219
Occupancy Costs		4,200			5,544			12,718			5,544			30,397
Consulting					12,000			-			30,208			430,698
Depreciation		2,060			0			4,120			1,007			33,110
Impairment of mineral rights		-			0			-						3,600
Stock Transfer Fees		-			0			-						4,987
Administration		8,422			0			13,524						42,894
Other General and Administrative
Expenses		2,180			18,835			8,218			43,215			190,288
Total General and Administrative Expenses		32,385			37,756			60,280			108,979			1,110,890

Net Operating Loss		(32,385	)		(37,618	)		(60,280	)		(108,565	)		(1,146,122	)

Other Comprehensive Income					594
Currency translation adjustment		-			280			2,979			7,598			30,385
Interest Income		-			-			252			-			708
Interest Expense		(476	)		-			(678	)		-			(741	)
		(476	)		280			2,553			7,598			30,352

Comprehensive Loss	$	(32,861	)	$	(37,338	)	$	(57,727	)	$	(100,967	)	$	(1,115,770	)

Loss Per Common Share, basic and diluted	$	(0.001	)	$	(0.001	)	$	(0.001	)	$	(0.002	)

Weighted Average Shares Outstanding,
Basic and Diluted:		55,234,063			55,234,063			55,234,063			55,179,105

F-2

PURIO INC.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

													For the Period
													of Inception
													Nov. 16,
	For the three months ended						For the six months ended						1999, through
	June 30,						June 30,						Dec. 31,
	2009			2008			2009			2008			2008
Cash flows from operating activities:
Net Operating Income (Loss)	$	(32,861	)	$	(37,618	)	$	(57,727	)	$	(108,565	)	$	(1,148,631	)
Adjustments to reconcile net loss to net cash used by operating activities:
Non-cash depreciation		2,060						4,120			1,007			35,170
Subscriptions Received								3,500			(12,150	)		126,130
Subscription Receivable
Non Cash Common Stock for services														373,979
Change in operating assets and liabilities:
Accounts Payable		1,976						1,664			(18,370	)		9,416
Inventory								(2,087	)					(13,092	)
Deposits											99,955			167,395
Prepaid Expenses					(11,087	)					(10,317	)		(11,088	)
Net cash (used by) operating activities		(28,825	)		(48,705	)		(50,530	)		(48,440	)		(460,721	)

Cash flows from investing activities:
Acquistion of patents														(121,610	)
Acquisition of equipment					(12,489	)					(12,489	)		(59,199	)
Acquisition of water vessels											(4,200	)		(17,957	)
Net cash (used by) investing activities		-			(12,489	)		-			(16,689	)		(198,766	)

Cash flows from financing activities:
Common stock issued for cash														564,768
Proceeds/Repayment of officer's loan		14,200						14,200						31,290
Bank Advance											25,000
Proceeds of Note Payable		1,500			64,955			1,500			64,955			15,156
Other Contributed Capital											19,834			49,852
Net cash (used by) provided by financing activities		15,700			64,955			15,700			109,789			661,066

Effect of exchange rates on cash					280						7,598
Net increase (decrease) in cash		(13,125	)		4,041			(34,830	)		52,258			1,579
Cash, beginning of the period		14,704			267,709			36,409			219,492			-

Cash, end of the period	$	1,579		$	271,750		$	1,579		$	271,750		$	1,579


Supplemental cash flow disclosure:
Interest paid	$	476		$	-		$	678		$	-		$	1,217
Taxes paid	$	-		$	-		$	-		$	-		$	-

F-3

PURIO INC.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

For the Period from December 31, 2007 to June 30, 2009

(Unaudited)

										Accumulated
										Deficit			Total
	Common Stock						Additional			during the			Shareholders'
	Number of			Par			Paid-In			Development			Equity
	Shares			Value			Capital			Stage			(Deficit)

Balances, December 31, 2007		55,000,000		$	55,000		$	962,593		$	(758,450	)	$	259,143

Feb 13, 2008: shares issued in share exchange agreement		27,734,063			27,734			(27,734	)

Feb 13, 2008: retirement of shares		(27,500,000	)		(27,500	)		27,500

Merger Adjustments								(28,994	)					(28,994	)

Net loss for the year ended December 31, 2008											(332,454	)		(332,454	)

Balances, December 31, 2008		55,234,063		$	55,234		$	933,365		$	(1,090,904	)	$	(102,305	)

Net loss for the 6 months ended June 30, 2009											(57,727	)		(57,727	)

		55,234,063		$	55,234		$	933,365		$	(1,148,631	)	$	(160,032	)

F-4

PURIO INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2009

(Expressed in US Dollars)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

The interim financial statements as of and for the six months ended June 30, 2009 reflect all adjustments which, in the opinion of management, are necessary to fairly state the Company’s financial position and the results of its operations for the periods presented in accordance with the accounting principles generally accepted in the United States of America. All adjustments are of a normal recurring nature.

These interim financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s fiscal year end December 31, 2008 report. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the six month period ended June 30, 2009 are not necessarily indicative of results for the entire year ending December 31, 2009.

(A) Organization

Purio Inc. (f/k/a AOM Minerals Ltd.) (a development stage company) (the “Company”) was incorporated under the laws of the State of Nevada on June 3, 2005. The Company initially was an exploration stage company with an objective of acquiring, exploring and if warranted and feasible, developing natural resource properties. Activities during this stage included developing the business plan and raising capital.

Effective December 5, 2007, the Company changed its name to “Purio Inc.” and entered into a share exchange agreement with Purio Environmental Water Source, Inc. (“Purio Environmental”), a private Nevada corporation, and the shareholders of Purio Environmental. Pursuant to the share exchange agreement, the company issued 27,734,603 shares of its common stock in return for all outstanding shares of Purio Environmental.

Purio Environmental was incorporated under the laws of the State of Nevada and its principal offices are located at 1048 1685 H Street, Blaine, Washington, USA. Purio owns proprietary water clarification technology suitable to a broad number of applications including the clarification of surface water, industrial process water and sewage. The Company is marketing this technology initially for industrial and commercial applications to reclaim water and reduce the need for fresh water in such applications.

The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America and include the following significant accounting policies:

F-5

(B) Principles of Consolidation

The consolidated financial statements include the accounts of Purio Inc. and Purio Environmental Water Source, Inc., a wholly owned subsidiary. Significant inter-company transactions have been eliminated.

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

(D) Cash and Cash Equivalents

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

(E) Long-Lived Assets

The Company accounts for long-lived assets under the Statements of Financial Accounting Standards (“SFAS”) Nos. 142 and 144, “Accounting for Goodwill and Other Intangible Assets” and “Accounting for Impairment or Disposal of Long-Lived Assets” (“SFAS No. 142 and 144”). In accordance with SFAS No. 142 and 144, long-lived assets, goodwill and certain identifiable intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset will not be recoverable. For purposes of evaluating the recoverability of long-lived assets, goodwill and intangible assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. Impairment of experimental water clarification equipment is calculated based on its estimated useful life.

(F) Income Taxes

The Company utilizes SFAS No. 109, “Accounting for Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company generated deferred tax credits through net operating loss carryforwards. However, a valuation allowance of 100% has been established, as the realization of the deferred tax credits is not reasonably certain, based on going concern considerations outlined below.

F-6

(G) Loss Per Share

SFAS No. 128, “Earnings Per Share”, requires presentation of basic earnings per share and diluted earnings per share. Basic income (loss) per share (“Basic EPS”) is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share (“Diluted EPS”) is similarly calculated using the treasury stock. At June 30, 2009, there were no potentially dilutive securities.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the six months ended June 30, 2009 and 2008:

2009 2008

Numerator:

Basic and diluted net loss per share:

Net Loss $(57,727) $ (100,967)

Denominator:

Basic and diluted weighted average number of shares outstanding 55,234,063 55,179,105

Basic and Diluted Net Loss Per Share: $(0.001) $(0.002)

(H) Patent

The patent is United States Patent 5904855 granted May 18, 1999 for a “Closed Chemically Advanced Treatment System”. The invention described in the patent is used by the Company in the water purification equipment which is under development. The patent is not in use to protect marketed products and is therefore not amortized. There has been no change in circumstances that would warrant impairment per an evaluation under SFAS No. 121.

(I) Foreign Currency Translation

In accordance with SFAS No. 52, “Foreign Currency Translation”, the Company has determined that its functional currency is the United States Dollar. The Company recorded a consolidated comprehensive gain of $3,231 in the three months ended March 31, 2008 primarily from the translation of transactions through a Canadian bank. Exchange differences are accumulated as a component of accumulated other comprehensive gain.

F-7

(J) Comprehensive Income (Loss)

Comprehensive income or loss encompasses net income or loss and “other comprehensive income or loss”, which includes all other non-owner transactions and events that change shareholders’ equity/deficiency. The Company’s other comprehensive gain reflects the effect of foreign currency translation adjustments on the translation of the financial statements from the functional currency of Canadian dollars into the reporting currency of U.S. dollars.

(K) Fair Value of Financial Instruments

The carrying amounts on the Company’s financial instruments including accounts payable approximate fair value due to the relatively short period to maturity for this instrument.

NOTE 2 ACQUISITION OF MINERAL PROPERTY

On March 31, 2006, the Company entered into an agreement for an option to acquire a 100% interest in the August Property in the Kettle River Region of British Columbia, Canada for a purchase price of $3,600. The property consists of 2 mineral claims known as the Kenrick #1 and Hard To Beat Claims.

In August 2006, a geological survey on the property was completed, geological report filed, and exploration program recommended.

Because the company had not yet established the viability of the property, the mineral rights were impaired 100% as of March 31, 2008.

NOTE 3 STOCKHOLDERS’ EQUITY

On February 28, 2006, the Company issued 27,500,000 shares of common stock to its founders for cash of $5,500 ($0.0002 per share).

On June 30, 2006, the Company issued 27,500,000 shares of common stock for cash of $55,000 ($0.002 per share).

On October 29, 2007, the Company effected a 5:1 forward split of its common stock.

On December 7, 2007, the Company entered into a share exchange agreement with Purio Environmental Water Source, Inc. (“Purio Environmental”), a private Nevada corporation, and the shareholders of Purio Environmental. Pursuant to the terms of the share exchange agreement, the Company agreed to acquire all of the issued and outstanding shares of Purio Environmental’s common stock in exchange for 27,500,000 shares of the Company.

F-8

On February 11, 2008, the share exchange agreement was amended. On February 13, 008, pursuant to the terms of the amendment, the Company acquired all of the issued and outstanding shares of Purio Environmental’s common stock in exchange for the Company’s issuance of 27,734,603 shares of common stock to the shareholders of Purio Environmental. The transaction was accounted for as a purchase, with Purio Inc. being the acquirer for accounting purposes.

On February 13, 2008, 27,500,000 shares of founders’ stock were surrendered to the treasury of the Company and the shares retired.

At March 31, 2009, the Company is authorized to issue 375,000,000 shares, of which there are 55,234,063 shares issued and outstanding.

NOTE 4 GOING CONCERN

As reflected in the accompanying financial statements, the Company is in the development stage with no operations, and from inception has a consolidated net loss of $1,148,631. The Company has negative consolidated working capital of $308,472 and a stockholders’ deficit of $160,032 as at June 30, 2009. There is substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern.

NOTE 5 LITIGATION

There are no significant legal proceedings against the Company with respect to matters arising in the ordinary course of business.

F-9

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

Explanatory Note

As reported in our current report on Form 8-K filed with the United States Securities and Exchange Commission (the “SEC”) on February 14, 2008, we completed a share exchange transaction with Purio Environmental Water Source, Inc., a private Nevada corporation (“Purio”), and the shareholders of Purio that resulted in Purio becoming our wholly-owned subsidiary and our new operating business as of February 13, 2008. The closing of the share exchange transaction resulted in a change of control of our company. The share exchange transaction was accounted for as a reverse acquisition and, as a result, our consolidated financial statements are, in substance, those of Purio, with our assets, liabilities, revenues and expenses included effective from the date of the closing of the share exchange transaction.

Forward Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. Except as required by applicable law, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited financial statements are stated in U.S. dollars and are prepared in accordance with generally accepted accounting principles in the United States. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report.

As used in this quarterly report, the terms "we", "us", "our" and "our company" mean Purio Inc., unless otherwise indicated.

Business Overview

As of the closing date of the share exchange agreement on February 13, 2008, we adopted the business of Purio, which involves selling clarified and reclaimed product water for human consumption, as well as agricultural, industrial, domestic and recreational uses. Our business strategy is to generate revenues through the production, processing and distribution of clarified and reclaimed product water. In addition, we intend to distribute water purification equipment in Canada, the Unites States and internationally through license agreements and other appropriate arrangements.

Purio owns proprietary water clarification technology suitable for a broad number of applications including the clarification of surface water, industrial process water and sewage. We intend to use Purio’s technology initially for industrial and commercial applications to reclaim water and reduce the need for fresh water in such applications. We further intend to use Purio’s technology to produce potable water for commercial and residential use. In all cases, we intend for Purio to retain ownership and operation of its proprietary technology and to sell the water to end users.

We also intend to distribute a comprehensive line of in-home and office drinking water purification equipment in Canada and the Unites States.

Results of Operations

Our results of operations are presented below:

	Three Months Ended June 30, 2009 ($)		Three Months Ended June 30, 2008 ($)		Six Months Ended June 30, 2009 ($)		Six Months Ended June 30, 2008 ($)		Period from November 16, 1999 (Date of Inception) to June 30, 2009 ($)
Revenue		-		138		-		414		5,113
Selling Expenses		-		-		-		414		40,345
General and Administrative Expenses		32,385		37,756		60,280		108,719		1,110,890
Net Loss		32,385		37,618		60,280		108,565		1,146,122

Results of Operations for the Three Month Period Ended June 30, 2009 and for the period from November 16, 1999 (Date of Inception) to June 30, 2009

For the three month period ended June 30, 2009 we incurred a net loss of $32,385, compared to a net loss of $37,618 during the same period in fiscal 2008. Our net loss from our inception on November 16, 1999 to June 30, 2009 was $1,146,122. Our net loss per share for the three month period ended June 30, 2009 was $0.001, as was our net loss per share for the same period in fiscal 2008.

Our total operating expenses for the three month period ended June 30, 2009 were $32,385, compared to total operating expenses of $37,756 for the same period in fiscal 2008. Our total operating expenses from our inception on November 16, 1999 to June 30, 2009 were $1,110,890.

Our total operating expenses for the three month period ended June 30, 2009 consisted entirely of general and administrative expenses, including $15,523 in professional fees, $4,200 in occupancy costs, $2,060 in depreciation, $8,422 in administration costs and $2,180 in other general and administrative expenses. We did not incur any other operating expenses during this period.

Our total operating expenses for the three month period ended June 30, 2008 consisted entirely of general and administrative expenses, including $1,377 in professional fees, $5,544 in occupancy costs, $12,000 in consulting fees and $18,835 in other general and administrative expenses. We did not incur any other operating expenses during this period.

Our total operating expenses from our inception on November 16, 1999 to June 30, 2009 consisted of $40,345 in selling expenses, $352,697 in professional fees, $22,219 in exploration costs and advances, $30,397 in occupancy costs, $430,698 in consulting fees, $33,110 in depreciation, $3,600 in impairment of mineral rights, $4,987 in stock transfer fees, $42,894 in administration costs and $190,288 in other general and administrative expenses.

Our general and administrative expenses consisted of travel, meals and entertainment, office maintenance, communication expenses (cellular, internet, fax and telephone), office supplies, web development and courier and postage costs. Our professional fees consisted of legal, accounting and auditing fees.

The decrease in operating expenses for the three month period ended March 31, 2009 was primarily due to a decrease in our consulting fees and other general and administrative expenses.

Results of Operations for the Six Month Period Ended June 30, 2009

For the six month period ended June 30, 2009 we incurred a net loss of $60,280, compared to a net loss of $108,565 during the same period in fiscal 2008. Our net loss per share for the six month period ended June 30, 2009 was $0.001, compared to a net loss per share of $0.002 for the same period in fiscal 2008.

Our total operating expenses for the six month period ended June 30, 2009 were $60,280, compared to total operating expenses of $108,979 for the same period in fiscal 2008.

Our total operating expenses for the six month period ended June 30, 2009 consisted entirely of general and administrative expenses, including $21,700 in professional fees, $12,718 in occupancy costs, $4,120 in depreciation, $13,524 in administration costs and $8,218 in other general and administrative expenses. We did not incur any other operating expenses during this period.

Our total operating expenses for the six month period ended June 30, 2008 consisted of $414 in marketing expenses, $29,005 in professional fees, $5,544 in occupancy costs, $30,208 in consulting fees, $1,007 in depreciation and $43,215 in other general and administrative expenses. We did not incur any other operating expenses during this period.

The decrease in operating expenses for the six month period ended June 30, 2009 was primarily due to a decrease in our professional fees, our consulting fees and our general and administrative expenses.

Liquidity and Capital Resources

As of June 30, 2009 we had cash of $1,579 in our bank accounts. As of June 30, 2009 we also had prepaid expenses of $11,088, inventory of $13,092, property and equipment of $41,996 and patents of $121,610, for total assets of $189,365.

As of June 30, 2009 we had current assets of $25,759, current liabilities of $334,231 and a working capital deficit of $308,472. Our accumulated deficit from our inception on November 16, 1999 to June 30, 2009 was $1,148,631 and was funded primarily through equity financing.

We are dependent on funds raised through our equity financing. Our net loss of $1,146,122 from our inception on November 16, 1999 to June 30, 2009 was funded primarily through equity financing.

For the three month period ended June 30, 2009 we spent net cash of $28,825 on operating activities, compared to net cash spending of $48,705 on operating activities during the same period in fiscal 2008. The decrease in expenditures on operating activities for the three months ended June 30, 2009 was primarily due to a decrease in our prepaid expenses.

For the six month period ended June 30, 2009 we spent net cash of $50,530 on operating activities, compared to net cash spending of $48,440 on operating activities during the same period in fiscal 2008. The decrease in expenditures on operating activities for the six months ended June 30, 2009 was primarily due to decreases in our net operating income and deposits.

For the three month period ended June 30, 2009 we did not engage in any investing activities, compared to net cash spending of $12,489 on investing activities during the same period in fiscal 2008.

For the six month period ended June 30, 2009 we did not engage in any investing activities, compared to net cash spending of $16,689 on investing activities during the same period in fiscal 2008.

For the three month period ended June 30, 2009 we received net cash of $15,700 from financing activities, compared to net cash received of $64,955 from financing activities during the same period in fiscal 2008. The decrease in receipts from financing activities for the three months ended June 30, 2009 was primarily due to a decrease in the proceeds of a note payable.

For the six month period ended June 30, 2009 we received net cash of $15,700 from financing activities, compared to net cash received of $109,789 from financing activities during the same period in fiscal 2008. The decrease in receipts from financing activities for the six months ended June 30, 2009 was primarily due to a decrease in bank advances, the proceeds of a note payable and other contributed capital.

During the three months ended June 30, 2009 our monthly cash requirements to fund our operating activities was approximately $4,375 compared to approximately $1,347 during the same period in fiscal 2008. Our cash of $1,579 as of March 31, 2009 is sufficient to cover our current monthly burn rate for less than one month.

We estimate our planned expenses for the next 12 months (beginning August 2009) to be approximately $1,000,000, as summarized in the table below:

Description	Potential Completion Date	Estimated 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
Other general and administrative expenses	12 months	50,000
Total		1,000,000

Our general and administrative expenses for the year will consist of travel, meals and entertainment, office maintenance, communication expenses (cellular, internet, fax and telephone), office supplies, web development and courier and postage costs. Our professional fees include legal, accounting and auditing fees, and are related to our regulatory filings throughout the year.

Based on our planned expenditures, we require additional funds of approximately $998,400 (a total of $1,000,000 less our approximately $1,579 in cash as of June 30, 2009) to proceed with our business plan over the next 12 months. 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.

Future Financings

We have generated limited revenues, have achieved losses since our inception, and rely upon the sale of our securities to fund our operations. We anticipate that we will incur substantial losses for the foreseeable future, and we are dependent upon obtaining outside financing to carry out our operations. Our financial statements for the three months ended March 31, 2009 have been prepared on a going concern basis and do not include any adjustments that might result from the outcome of this uncertainty.

We will require approximately $1,000,000 over the next 12 months in order to enable us to proceed with our plan of operations, including paying our ongoing expenses. These cash requirements are in excess of our current cash and working capital resources. Accordingly, we intend to raise the balance of our cash requirements for the next 12 months (approximately $998,400) from private placements, stockholder loans or possibly a registered public offering (either self-underwritten or through a broker-dealer). If we are unsuccessful in raising enough money through such efforts, we may review other financing possibilities such as bank loans. At this time we do not have a commitment from any broker-dealer to provide us with financing, and there is no guarantee that any financing will be available to us or if available, on terms that will be acceptable to us.

If we are unable to obtain the necessary additional financing, then we plan to reduce the amounts that we spend on our operations, our professional fees and our other general and administrative expenses so as not to exceed the amount of capital resources that are available to us. If we do not secure additional financing our current cash reserves and working capital will be not be sufficient to enable us to sustain our operations and for the next 12 months, even if we do decide to scale back our 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, changes in 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. A complete summary of these policies is included in Note 1 of the notes to our financial statements. 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.

Principles of Consolidation

Patent

Inflation

The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Disclosure Controls

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) designed to provide reasonable assurance the information required to be reported in our Exchange Act filings is recorded, processed, summarized and reported within the time periods specified and pursuant to Securities and Exchange Commission rules and forms, including controls and procedures designed to ensure that this 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 of the end of the period covered by this report, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were (1) designed to ensure that material information relating to our Company is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, in a timely manner, particularly during the period in which this report was being prepared, and (2) effective, in that they provide reasonable assurance that information we are required to disclose in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Changes in Internal Control

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) during the quarterly period ended June 30, 2009 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not aware of any legal proceedings to which we are a party or of which our property is the subject. None of our directors, officers, affiliates, any owner of record or beneficially of more than 5% of our voting securities, or any associate of any such director, officer, affiliate or security holder are (i) a party adverse to us in any legal proceedings, or (ii) have a material interest adverse to us in any legal proceedings. We are not aware of any other legal proceedings that have been threatened against us.

Item 2. Unregistered Sales of Equity Securities

We did not have any previously unreported sales of unregistered equity securities during the period covered by this report.

Item 3. Defaults Upon Senior Securities

None.

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

None.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Exhibit Description
31.1	Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 19, 2009	Purio Inc.

	By:	/s/ Daryl English
		Daryl English
		President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Secretary, Treasurer and Director

PURIO INC. 10-Q