The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30,, 2018 2019 and the results of operations and cash flows for the periods presented. The results of operations for the nine months ended September 30,, 2018 2019 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 20172018 filed with the SEC on April 2, 2018. 29, 2019.

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has established itself as a stable ongoing business entity with established revenues sufficient to cover its operating costs and allow it to continue as a going concern. However, thethe ability of the Company to continue as a going concern is also dependent on the Company obtaining adequate Sales so that the Company can liquidate its inventories and continue as a going business.

In order to continue as a going concern, the Company will need, among other things, Sales of its product lines. Management has obtained obtained such sales through Internet sales and marketing companies who specialize in promotion of such businesses. Management is obtaininghas obtained capital from managementcommercial lines of credits and significant shareholders sufficient to meet its minimal operating expense and is expecting that cash flow from sales will soon be available to augment the operating capital needs. However, management cannot provide an assurance that the Company will be successful in accomplishing any of its plans.plans as, in most of the businesses,  market circumstances could change.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually fulfill the secured  purchase orders to attain profitable operations.reaching is targeted sales level. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

In February 2015, the company incorporated a subsidiary, Promedaff, Inc. and purchased a skin care product line and formulations for $2,000,000 against a promissory note. An e commerce platform was set up for sales and marketing. The efforts did not bear any success and the entire inventory was sold through the Seller and the Promissory Note was cancelled and marked “VOID”. The name of this entity has been changed to Motors & Metals, Inc. and has remained inactive but is in good standing. Motors & Metals, Inc. operates as a separate entity to conduct business in refurbishing automotive engines and selling metals recovered from Accurate Auto Parts, Inc.’s facility, and has an independent profit center. The company has continued its research on the related subjects and expects to activate this line of business once it is adequately funded.

THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR UNAUDITED FINANCIAL STATEMENTS AND NOTES THERETO INCLUDED HEREIN. IN CONNECTION WITH, AND BECAUSE WE DESIRE TO TAKE ADVANTAGE OF, THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, WE CAUTION READERS REGARDING CERTAIN FORWARD LOOKING STATEMENTS IN THE FLOWING DISCUSSION AND ELSEWHERE IN THE THIS REPORT AND IN ANY OTHER STATEMENT MADE BY, OR AN BEHALF, WHETHER OR NOT IN FUTURE FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, FORWARD-LOOKING STATEMENTS ARE STATEMENT NOT BASED ON HISTORICAL INFORMATION AND WHICH RELATE TO FUTURE OPERATIONS, STRATEGIES, FINANCIAL RESULTS OR OTHER DEVELOPMENTS. FORWARD-LOOKING STATEMENTS ARE NECESSARILY BASED UPON ESTIMATES AND ASSUMPTIONS THAT ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE UNCERTAINTIES, MANY OF WHICH ARE BEYOND OUR CONTROL AND MANY OF WHICH, WITH RESPECT TO FUTURE BUSINESS DECISIONS, ARE SUBJECT TO CHANGE, THESE UNCERTAINTIES AND CONTINGENCIES CAN AFFECT ACTUAL RESULTS AND COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FORM THOSE EXPRESSED IN ANY FORWARD-LOOKING STATEMENTS AND COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN ANY FORWARD LOOKING STATEMENTS MADE BY, OR ON OUR BEHALF, WE DIS TO UPDATE FORWARD-LOOKING STATEMENTS.

Accurate Auto Parts, Inc. the Company’sCompany’s used auto parts subsidiary has made a sale of $117,648$255,310 of Automobile Parts and Services.Services. The Company continues seeking additional sales both in the domestic and international markets.

The Company did recognize revenue for a sum of $117648 $255,310 during the nine months ended September 30, 20182019 and $317,651$117,648 of revenues during the Nine monthmonth ended September 30, 2017. While the2018. The net revenues for the period ended September 30, 20182019 were lessmore by $200,003$137,661 than for the same period during 2017 but2018 and the Cost of Goods Sold was also less by $104,117$3,181 during the period ended September 30, 20182019 as compared to the same period during 2017.2018. The Gross Profit had a decrease,an increase, i.e. by $ 95,886140,842 during the period ended September 30, 20182019 as compared to the same period during 2017.2018.

During the Nine months ended ended September 30, 2018,2019, the Company incurred operational expenses of $93,085.$255,936. This compares to $150,183$93,085 for the nine months ended September 30, 2017.2018. This increase in operational expenses reflects the increase in operation staff and financial expenses that are attributed to mortgage payments for the facility.

During the nine months ended September 30, 20182019 the company recognized a net loss of $8,611.00$60,041 as compared to $12,140.00$8,611 for the corresponding period in the year 2017,2018, thus recognizing a decreasean increase of approximately 30 %7 times as compared to the nine months ended September 30, 2017.2018. The optimal utilization of staff and infrastructure that has been build up will take time to show the desired results. Staff is being trained to achieve the productivity that will result in better revenues in near future. The company made a profit of $32,584 during the third quarter of 2019 as compared to a loss of $72,630 for the same period during 2018. Thus the operating loss as reported on June 30, 3019 was reduced from $105,522 to $60,041 as of September 30, 2019.

As disclosed inWhile the 10Qbooks show an operating net loss of $60,041 the Company has increased its inventory at by $111,101 thus showing a total inventory at cost of $775,724 as on September 30, 2019 as compared to an inventory at cost for a sum of $571,260 as on December 31, 2018 and $682,361 as on June 30, 2019. While the second quarter, for confidentiality reasons and inCompany cannot predict if this inventory will be sold at the best interestlist price which approximately is three (3) times its book value cost price (it has been calculated at less than 30% of the company,selling price) but the management was waiting for the right time to disclose the factis confident that the landlord had defaulted in servicing her loan to the lending bank, and subsequently filed protection under chapter 11marked list price of the bankruptcy courtinventory is realistic with the current market conditions. The cost of sales is approximately 53% of the sales, thereby leaving an approximately 23% of the list selling price as a hidden value which was convertedequates to a chapter 7. While the company had met its obligations under the lease and had made an advance payment for the leaseminimum of the premises, but the laws in the Commonwealth of Virginia are in favor of the mortgage-holder to get a vacant possession of the premises in the event of foreclosure. The company was constantly under fear that if the property was to foreclose, (which it did) and if the lenders would not accept our offer or if any our business competitor were to make a higher offer than ours, then the company would be facing multiple challenges which would include removing several hundred vehicles and auto parts at a short notice to another properly zoned location – which is hard to find due to environmental permits.approximately over $500,000.*

The inventory valuation is based on the industry standards, the management reviewed financial statements of other companies that are listed on NASDAQ and are audited by PCAOB firms like BDO. The management found that their approach was exactly same thus the inventory valuation is managements view is substantially accurate. Selling price of parts do not have too much fluctuations, in spite of this fact, the management does review their inventory price and the internal monthly reports do reflect any downward change which is subsequently reported in the quarterly reports. The Company has limited history, but the management has access to records to the previous owners’ activities which go back to over 10 years.

The tax returns for the previous years have been filed and there are no tax liabilities due to the fact that the books reflect a net loss.

The company’s administrative office is in Herndon, VA. Now that the Company owns the property the office will soon be locatedhas been relocated at 6269 Caledon Road, King George,VA 20171. The corporate address will also be changed from 13800 Coppermine Road, First Floor, Herndon, VA 20171 to the new address effective January 1, 2019.22485.

THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM’S REPORT ON THE COMPANY’S FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017,2017, AND FOR EACH OF THE PRECEDING YEARS THEN ENDED, INCLUDES A “GOING CONCERN” EXPLANATORY PARAGRAPH, THAT DESCRIBES SUBSTANTIALLY DOUBT ABOUT THE COMPANY’S ABILITY TO CONTINUE AS A GOING CONCERN.

On September 30, 20182019 the Company had total current assets of $525,672 $1,642,270 consisting of $3,861 $11,733 in cash and $5,863$43,072 in trade receivables, and $429,902$775,724 in inventory.inventory at book value. The suggested sale price is over $1,700,000.

The Company’s need was successful in securing the loan to have cash sufficientpurchase the property. The fair market value of the property reported by the Seller (i.e., the lending institution who were in possession of the property upon foreclosure) was over $1,500,000 while it cost the company around $770,000 to meets its cash needs is fulfilled.purchase the same. The Company desires to increase its dismantling capability and storage area. Thus, the management is considering to add another 10,000 to 20,000 sq. ft. steel barn under a lease financing program to facility its growth. Upon this being achieved a greater number of automobiles could be procured for dismantling. An informal analysis has firm commitmentrevealed the fact that from River Valley Bank, Minnesota for workingthe total inventory in hand, approximately 30% is sold annually. Thus to achieve a $1,000,000 sale the inventory level should be increased to $3,000,000. On the other hand, the analysis has also revealed that cost the inventory is around 30%.

The Company recognizes revenues on arrangements in accordance with Securitas and Exchange Commission Staff Accounting Bulletin Topic 13, REVENUE RECOGNITION and FASB ASC 605-15-25, REVENUE RECONGNITION. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonable assured. The Company reported gross revenues of $551,182 for the year ending December 31, 2016.

Not Applicable.

Management is responsible for establishing and maintaining adequate internal control so as to

(1)  maintain the records  in reasonable detail, which will accurately and fairly reflect the transactions and dispositions of the Company's assets;

(2) to provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the Company's receipts and expenditures are  made  within the delegated authority ; and

(3) to provide reasonable assurance for the  prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on company’s financial statements.

However, the management asserts that the company does not have any accounting staff due to limited financial resources though has plans to recruit gradually.  Also, this company does not have a well written document on accounting policies and procedures, though has plans to have them shortly.  Consequently, this can result in possible errors in the presentation and disclosure of financial information in our annual, quarterly, and other filings.

The SIC Code of 1700 as showing in Edgar for this company is no longer valid, since this company is now dealing with the auto parts, as OEM Recycled Auto Parts. Segregation of duties is an important factor in Internal Control.  Though it is achieved to a certain extent, the management is committed to strengthen the internal controls effectively in the coming months.

There have been no changes in our internal controls over financial reporting that occurred during the period ended September 30,, 2018, 2018, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

None.

During the period of January 1, 2015 and March 31, 2015, the Company issued 9,700 shares of Preferred Shares – Series “A” for a sum of $58,000 and 330,000 shares of Preferred Shares – Series “B” for a sum of $330,000 which were the result of conversion of certain debts of the company.

None.

Not Applicable