The files in the File folder of your project are in File.DirAssets and not in the File.DirInternal folder.
These are two different folders.
Databases cannot be accessed in File.DirAssets, they must be copied somewhere else, for example to File.DirInternal.
Attached a modified project.
I suggest you to have a look at the
B4X Booklets and more specific the SQLite chapter in the
B4A User's Guide.
You may also have a look at the SQLiteLight examples, which are shipped with the User's Guide.