UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________

FORM 10-Q
___________________

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

For the quarterly period ended DecemberMarch 31, 20172021

OR

For the transition period from to

Commission file number:number 000-21613

Ecomat, Inc.
(Exact Name Of Registrant As Specified In Its Charter)

Registrant's Telephone Number, Including Area Code: (323) 552-9867

(Telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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 pastlast 90 days.

Yes x[X] No ¨
[  ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).

Yes [X] No [  ]

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x[X] No ¨[  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer (as defined in Rule 12b-2

As of the Exchange Act) or a smaller reporting company.

On February 5, 2018, the Registrant had 16,836,750April 29, 2021, there were 23,811,750 shares of common stock, par value $0.0001 per share, outstanding.

TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains certain forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). The statements herein which are not historical reflect our current expectations and projections about the Company’s future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and our interpretation of what we believe to be significant factors affecting our business, including many assumptions about future events. Such forward-looking statements include statements regarding, among other things:

Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words “may,” “should,” “will,” “plan,” “could,” “target,” “contemplate,” “predict,” “potential,” “continue,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “seek,” or “project” or the negative of these words or other variations on these or similar words. Actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors, including the ability to raise sufficient capital to continue the Company’s operations. These statements may be found under Part I, Item 2— “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as well as elsewhere in this Quarterly Report on Form 10-Q generally. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, matters described in this Quarterly Report on Form 10-Q.

In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this Quarterly Report on Form 10-Q will in fact occur.

Potential investors should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, there is no undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. Such statements are presented only as a guide about future possibilities and do not represent assured events, and we anticipate that subsequent events and developments will cause our views to change. You should, therefore, not rely on these forward-looking statements as representing our views as of any date after the date of this Quarterly Report on Form 10-Q.

Potential investors should not make an investment decision based solely on our projections, estimates or expectations.

PART I - I.

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTSBack to Table of Contents

Page 3

Ecomat, Inc.
Statements of Operations
For the Three and Six Months ended December 31, 2017 and 2016
Back to Table of Contents
		Three Months		Three Months		Six Months		Six Months
		Ended		Ended		Ended		Ended
		December 31, 2017		December 31, 2016		December 31, 2017		December 31, 2016
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenue	$	-	$	-	$	-	$	-
Costs and expenses:
General and administrative		29,550		650		59,449		759
Total operating expenses		29,550		650		59,449		759
Other income and expenses
Interest expense		153		12		423		111
Net loss	$	(29,703)	$	(662)	$	(59,872)	$	(870)
Per shares amounts:
Basic and diluted net loss	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)
Weighted average shares outstanding (basic and diluted)		16,836,750		16,836,750		16,836,750		16,836,750
See Summary of Significant Accounting Policies and Notes to Financial Statements.

Page 4

Ecomat, Inc.
Statements of Cash Flows
For the Six Months ended December 31, 2017 and 2016
Back to Table of Contents
		Six Months		Six Months
		Ended		Ended
		December 31, 2017		December 31, 2016
		(Unaudited)		(Unaudited)
Cash flows from operating activities:
Net loss	$	(59,872)	$	(870)
Adjustments required to reconcile net loss
to cash used in operating activities:
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable and accrued liabilities		31,373		-
Cash flows used by operating activities		(28,499)		(870)
Cash flows from financing activities:
Advances from related party		3,499		870
Convertible note borrowings		25,000		-
Cash generated by financing activities		28,499		870
Change in cash		-		-
Cash - beginning of period		-		-
Cash - end of period	$	-	$	-
See Summary of Significant Accounting Policies and Notes to Financial Statements.

Page 5ECOMAT, INC.

BALANCE SHEETS (UNAUDITED)

Balance Sheets as of March 31, 2021 and June 30, 2020

See Summary of Significant Accounting Policies and Notes to Financial Statements. 

ECOMAT, INC.

STATEMENTS OF OPERATIONS (UNAUDITED)

For the Three and Nine Months ended March 31, 2021 and March 31, 2020

See Summary of Significant Accounting Policies and Notes to Financial Statements. 

Ecomat, Inc.ECOMAT, INC.

BackgroundSTATEMENTS OF CASH FLOWS (Unaudited)

For the Nine Months ended March 31, 2021 and 2020

See Summary of Significant Accounting Policies and Notes to Financial Statements. 

ECOMAT, INC.

DecemberSTATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

See Summary of Significant Accounting Policies and Notes to Financial Statements. 

ECOMAT, INC.

NOTES TO FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2017
Back to Table of Contents2021 AND 2020

Note 1. The Company and Significant Accounting Policies

Ecomat, Inc. (the "Company"“Company”) was incorporated on December 14, 1995 pursuant to the laws of the State of Delaware. On February 9, 2007, the Company completed its change in domicile to Nevada. The Company used to operate a wet-cleaning process which was one of the first environmentally sound solution to current dry cleaningdry-cleaning methods.

Bankruptcy Proceedings

On March 26, 1999, the Company filed a petition under Chapter 7 for liquidation of the Company's business. As a result of which all of its properties were transferred to a United States Trustee and the Company terminated all of its business operations. The Bankruptcy Trustee has disposed of all of the assets.

On May 18, 2006, the Trustee for the Company and Park Avenue Group, Inc. entered into a contract that was subject to Bankruptcy Court approval for the sale of certain asset free and clear of all liens, claims and encumbrances, the asset being comprised of the corporate shell of the debtor, Ecomat, Inc. (the "Asset"). On June 14, 2006, the Bankruptcy Court granted an order approving the contract and finding that Park Avenue Group is a good faith purchaser within the meaning of 11 USC Section 363(m) of the Bankruptcy Code.

Basis of Presentation:

We

The Company adopted "fresh-start"“fresh-start” accounting as of June 15, 2006 in accordance with procedures specified by AICPA Statement of Position ("SOP"(“SOP”) No. 90-7, "Financial“Financial Reporting by Entities in Reorganization under the Bankruptcy Code.

The Financial Statementsfinancial statements presented herein have been prepared by usthe Company in accordance with the accounting policies described in ourits June 30, 20172020 audited financial statements and should be read in conjunction with the notes to financial statements which appear as part of those financial statements.

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires usthe Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on goingongoing basis, we evaluatethe Company evaluates our estimates, including those related to intangible assets, income taxes, insurance obligations and contingencies and litigation. We base ourThe Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.

In the opinion of Management,management, the information furnished in these interim financial statements reflects all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the three and six-monthnine-month periods ended DecemberMarch 31, 20172021 and 2016.2020. All such adjustments are of a normal recurring nature. The Financial Statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include some information and notes necessary to conform with annual reporting requirements.

Recently Issued Accounting Pronouncements

In July 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. The amendments in ASU 2018-10 provide additional clarification and implementation guidance on certain aspects of the previously issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) and have the same effective and transition requirements as ASU 2016-02. Upon the effective date, ASU 2018-10 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2018-10 is effective for private companies and emerging growth public companies for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. During the nine-month period ended March 31, 2021, the Company assessed the impact this guidance had on its financial statements and concluded that at present ASU No. 2018-10 has no impact on its financial statements.

In August, 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). Effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company has adopted ASU No. 2016-15 and concluded that at present ASU No. 2016-15 has no impact on its statement of cash flows.

In May, 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yetbecame effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year.

In April, 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yetbecame effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company has adopted ASU No. 2016-12 and ASU No. 2016-10, and concluded that at present ASU No. 2016-12 and ASU No. 2016-10 have no impact on its revenue.

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.

Note 2. Going Concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concernconcern. The Company has incurred losses, has negative operational cash flows and has no revenues. The future of the Company is dependent upon Managementmanagement success in its efforts and limited resources to pursue and effect a business combination.

These conditions raise substantial doubt about the Company'sCompany’s ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

Note 3. "Fresh Start" Accounting

On March 26, 1999, all assets were transferred to the Chapter 7 trustee in settlement of all outstanding corporate obligations. We adopted "fresh-start" accounting as of June 15, 2006 in accordance with procedures specified by AICPA Statement of Position ("SOP") No. 90-7, "Financial Reporting by Entities in Reorganization under the Bankruptcy Code."

On May 18, 2006, the Trustee forIf a business combination transaction is not consummated, the Company and Park Avenue Group, Inc. entered intodoes not believe that it could succeed in raising additional capital, from unrelated parties, needed to sustain its operations without some strategic transaction, such as a contract that was subject to Bankruptcy Court approval for the sale of certain asset free and clear of all liens, claims and encumbrances, the asset being comprised of the corporate shell of the debtor, Ecomat, Inc. (the "Asset"). On June 14, 2006, the Bankruptcy Court granted an order approving the contract and finding that Park Avenue Group is a good faith purchaser within the meaning of 11 USC Section 363(m) of the Bankruptcy Code. All results for periods including and subsequent to June 15, 2006 are referred to as those of the "Successor Company".

In accordance with SOP No. 90-7, the reorganized value ofbusiness combination or merger. If the Company was allocatedis unable to consummate such a transaction, it expects that it would need to cease all operations and wind down. Although the Company's assets based on procedures specified by FASB ASC 805, "Business Combinations". Each liability existing atCompany is currently evaluating its strategic alternatives with respect to all aspects of its business, it cannot assure you that any actions that it takes would raise or generate sufficient capital to fully address the plan sale date, other than deferred taxes, was stated at the present valueuncertainties of the amounts to be paid at appropriate market rates. It was determined that the Company's reorganization value computed immediately before June 15, 2006 was $0. We adopted "fresh-start" accounting because holders of existing voting shares immediately before filing and confirmation of the sale received less than 50% of the voting shares of the emerging entity and its reorganization value is less than its post-petition liabilities and allowed claims.financial position.

Note 4.3. Convertible Note

On July 8, 2017, weOctober 12, 2018, the Company issued a $75,000 convertible promissory note to Securities Compliance Corp., bearingIvo Heiden, the then CEO and the then sole officer and director. The convertible note bears interest at 1%8% per annum until paid or converted. The conversion price of the note is $0.034 per share, the closing price of the Company’s common stock on the date of issuance. Interest would be payable upon the maturity date at October 12, 2020. On May 1, 2020, the convertible promissory note was extended to April 30, 2022. On January 6, 2021, the note holder waived interests and liability of the Company and terminated this note. During the three-month periods ended March 31, 2021 and 2020 the Company expensed interest of $0 and $1,496, respectively, related to this note. As of March 31, 2021, and June 30, 2020, the Company has recorded $0 and $10,241, respectively, in accrued interest with respect to this convertible note.

On May 1, 2020, the Company issued a $90,000 convertible promissory note to Ivo Heiden. The convertible note bears interest at 8% per annum until paid or converted. The conversion price of the note is $0.04 per share, the closing price of the Company’s common stock on the date of issuance. Interest will be payable upon the maturity date at July 7, 2018. UnderMay 1, 2022. On January 6, 2021, the termnote holder waived interests and liability of the convertible noteCompany and terminated this note. During the three-month period ended March 31, 2021, the Company can receive upexpensed interest of $0 related to $50,000 in securities compliance services.this note. As of DecemberMarch 31, 2017, Securities Compliance Corp.2021 and June 30, 2020, the Company has provided services valued at $25,000recorded $0 and $1,203, respectively, in accrued interest with respect to the Company. The conversion price of the note is $0.008 per share. The closing price of the Company's common stock on July 7, 2017 was $0.007 per share. The notes represent the fair value of services provided without cost covering several years.this convertible note.

On September 1, 2017, we entered into a Loan Agreement with Ivo Heiden, our sole officer and director, under which we receive funding for general operating expenses from time-to-time as needed by the Company. The Loan Agreement bears interest of 8% per annum and shall be due and payable on a date 366 days from the date of the loan. As of December 31, 2017, the outstanding balance on this loan was $10,552.

In accordance with ASC # 815, Accounting for Derivative Instruments and Hedging Activities, wethe Company evaluated the note holder'sholder’s non-detachable conversion right provision and liquidated damages clause, contained in the terms governing the Convertible Note to determine whether the features qualify as an embedded derivative instrument at issuance. Such non-detachable conversion right provision and liquidated damages clause did not need to be accounted as derivative financial instruments.

Note 5.4. Related Party Transactions

Due to Related Parties:

Amounts due to related parties consist

As of March 31, 2021, and June 30, 2020, the advances made byfrom Ivo Heiden, our previous CEO, were $0 and $28,155, respectively.

As of March 31, 2021, and June 30, 2020, accrued interest due to our previous CEO was $0 and $18,456, respectively.

On September 1, 2017, the Company entered into a Loan Agreement (the “Loan Agreement”) with Ivo Heiden, its then sole officer and director, under which the Company received funding for general operating expenses from time-to-time as needed by the Company. The Loan Agreement bears interest of 8% per annum and shall be due and payable on a date 366 days from the date of the loan. On September 1, 2018, the Loan Agreement was extended to September 1, 2019. On June 28, 2019, the Loan Agreement was extended to September 1, 2020. On May 1, 2020, the Loan Agreement was extended to September 1, 2021. On January 6, 2021, the balance of this loan and accrued compensation due to our CEO.

interests were waived by Ivo Heiden and the Loan Agreement was terminated on the same day. As of DecemberMarch 31, 2017,2021, and June 30, 2017, our CEO has made advances2020, the outstanding balance on this loan was $0 and $28,155 with accrued interest of $10,552$0 and $7,053, respectively.$7,012. During the three-month periods ended March 31, 2021 and 2020, the Company borrowed $0 and $544, respectively, under this Loan Agreement. During the three-months period ended March 31, 2021 and 2020, the Company expensed interest of $0 and $544, respectively, related to this Loan Agreement. During the nine-month periods ended March 31, 2021 and 2020, the Company borrowed $5,959 and $7,449, respectively, under this Loan Agreement. During the nine-months period ended March 31, 2021 and 2020, we expensed interest of $1,299 and $1,528, respectively, related to this Loan Agreement.

On March 31, 2021, the Company entered into a Loan Agreement with New York Listing Management Inc, a related party, under which the Company receives funding for general operating expenses from time-to-time as needed by the Company. The Loan Agreement bears interest of 8% per annum and shall be due and payable on a date 366 days from the date of the loan. As of DecemberMarch 31, 2017, and June 30, 2017,2021, the outstanding balance on this loan was $5,916 with accrued interest dueof $0. During the three-month periods ended March 31, 2021, the Company borrowed $5,916, under this Loan Agreement. During the three-months period ended March 31, 2021 we expensed interest of $0, related to our CEO was $3,146 and $2,818, respectively.this Loan Agreement.

As of December 31, 2017, and June 30, 2017, accrued compensation due to our CEO was $30,000 and $0, respectively.

During the threenine months ended DecemberMarch 31, 20172021 and 2016,2020, the Company did not issue anyissued 0 and 6,975,000 shares of common stock.

On January 6, 2021, Ivo Heiden has waived the accrued interests and liabilities of the Loan Agreement and two convertible notes (one dated May 1, 2020, the other October 12, 2018) for the total amount of $225,487, the Company has recorded such amount as additional paid in capital accordingly.

Note 6.5. Subsequent Events

On March 18, 2021, by unanimous written consent of the Board of Directors of the Company, the Board of Directors adopted resolutions approving 1) a reverse split of the Company’s common stock at a ratio of 1-for-10, whereby every 10 shares of the issued and outstanding common stock shall be combined into one share of issued and outstanding common stock (the “Reverse Stock Split”); 2) an increase in the number of the authorized capital stock from 75,000,000 to 500,000,000, with the par value remaining at $0.0001 per share, consisting of 450,000,000 shares of common stock, par value $0.0001 per share and 50,000,000 shares of preferred stock, par value $0.0001 per share (the “Increase of Authorized Stock”); 3) a change of the Company’s name and ticker from “Ecomat, Inc.” and “ECMT,” to “Ecomax, Inc.” and “ECMX,” subject to availability of such name and ticker (the “Change of Name,” together with the Reverse Stock Split and the Increase of Authorized Stock, collectively referred to as the “Corporate Actions”); 4) amendments to its articles of incorporation to reflect the Corporate Actions (the “Amendments of Articles of Incorporation”); and 5) a proposal that such resolutions be submitted for a vote of the stockholders of the Company.

On March 18, 2021, the stockholder holding in the aggregate 20,205,000 shares of common stock or approximately 85% of the common stock outstanding on such date, approved the Corporate Actions. 

On April 1, 2021, the Company filed a preliminary information statement on Schedule 14C with the U.S. Securities and Exchange Commission (the “SEC”).

On April 13, 2021, the Company filed a definitive information statement on Schedule 14C with SEC.

On April 20, 2021, the Company filed a certificate of change and a certificate of amendment with the Secretary of State of the State of Nevada. 

The Company had noCorporate Actions, as of the date of this report, have not come into effect yet.

Beyond the events above, the Company’s management has performed subsequent events after December 31, 2017 toprocedures through the date the financial statements were available to be issued. There were no other subsequent events requiring adjustment to or disclosure in the consolidated financial statements.

Page 9

ITEM 2. MANAGEMENT'SMANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLANRESULTS OF OPERATIONOPERATIONSBack to Table of Contents

Some of the statements contained in this quarterly report of Ecomat, Inc. (hereinafter the "Company"“Company”, "We"“We” or the "Registrant"“Registrant”) discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use of words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. From time to time, we also may provide forward-looking statements in other materials we release to the public.

Overview

Overview

The Company'sCompany’s current business objective is to seek a business combination with an operating company. We intend to use the Company'sCompany’s limited personnel and financial resources in connection with such activities. The Company will utilize its capital stock, debt or a combination of capital stock and debt, in effecting a business combination. It may be expected that entering into a business combination will involve the issuance of restricted shares of capital stock. The issuance of additional shares of our capital stock:

Ÿ   may significantly reduce the equity interest of our stockholders;
Ÿ   will likely cause a change in control if a substantial number of our shares of capital stock are issued, and most likely will also result in the resignation or removal of our present officer and director; and
Ÿ   may adversely affect the prevailing market price for our common stock.

Similarly, if we issued debt securities, it could result in:

Ÿ   default and foreclosure on our assets if our operating revenues after a business combination were insufficient to pay our debt obligations;
Ÿ   acceleration of our obligations to repay the indebtedness even if we have made all principal and interest payments when due if the debt security contained covenants that required the maintenance of certain financial ratios or reserves and any such covenants were breached without a waiver or renegotiations of such covenants;
Ÿ   our inability to obtain additional financing, if necessary, if the debt security contained covenants restricting our ability to obtain additional financing while such security was outstanding.

Results of Operations during the three months ended DecemberMarch 31, 20172021 as compared to the three months ended DecemberMarch 31, 20162020

We have not generated any revenues during the three months ended DecemberMarch 31, 20172021 and 2016.2020. We had total operating expenses of $29,550$47,132 related to general and administrative expenses during the three months ended DecemberMarch 31, 20172021 compared to $650$16,475 during the same period in the prior year. The significant increase is due to the Company becoming a reporting company under the Exchange Act.year. We incurred interest expense of $153$0 during three months ended DecemberMarch 31, 20172021 compared to interest expense of $12$2,040 during the three months ended DecemberMarch 31, 2016.2020. During the three months ended DecemberMarch 31, 20172021 and 2016,2020, we had a net loss of $29,703$47,132 and $662,$18,515, respectively. The increase in our net loss was due to additional legal expenses and compensation paid to CEO.

Results of Operations during the sixnine months ended DecemberMarch 31, 20172021 as compared to the sixnine months ended DecemberMarch 31, 20162020

We have not generated any revenues during the sixnine months ended DecemberMarch 31, 20172021 and 2016.2020. We had total operating expenses of $59,449$57,658 related to general and administrative expenses during the sixnine months ended DecemberMarch 31, 20172021 compared to $759$61,125 during the same period in the prior year. The significant increase is due to the Company becoming a reporting company under the Exchange Act.year. We incurred interest expense of $423$7,917 during sixnine months ended DecemberMarch 31, 20172021 compared to interest expense of $111$7,552 during the sixnine months ended DecemberMarch 31, 2016.2020. During the sixnine months ended DecemberMarch 31, 20172021 and 2016,2020, we had a net loss of $59,872$57,658 and $870,$61,125, respectively. The decrease in our net loss was due to decreased officer compensation.

Page 10

Liquidity and Capital Resources

At present,

As of the date of this report, the Company has no business operations and no cash resources other than advances provided by our CEO. Ourthen CEO and/or an affiliated partyand New York Listing Management Inc., a related party. On March 31, 2021, we entered into a Loan Agreement with New York Listing Management Inc., under which we receive funding for general operating expenses from time-to-time as needed by the Company. New York Listing Management Inc. have agreed to provide funding as may be required to pay for accounting fees and other administrative expenses of the Company until such time the Company enters into a business combination. The Company would be unable to continue as a going concern without interim financing provided by our CEO.New York Listing Management Inc. If we require additional financing, we cannot predict whether equity or debt financing will become available at terms acceptable to us, if at all. At present, the Company has no financial resources to pay for such services and may be required to issue restricted shares in lieu of cash or, in the alternative, issue debt instruments evidencing financial obligations if and when they arise.

During the next 12 months we anticipate incurring costs related to:

Ÿ   filing of Exchange Act reports.
Ÿ   franchise fees, registered agent fees and accounting fees, and
Ÿ   investigating, analyzing and consummating an acquisition or business combination.

On December March 31, 20172021 and June 30, 2017,2020, we have had no current assets. As of DecemberMarch 31, 2017,2021, we had $69,743$47,132 in liabilities consisting of accounts payable of $950 in accounts payable- trade, $10,552 in$40,091, advance from a related party accrued compensation of $30,000,$5,916, accrued interest due to a related partyparties of $3,146, accrued interest of $95$0 and a $25,000$0 in convertible note.notes. As of June 30, 2017,2020, we had $214,961 in liabilities of $9,871 consisting of $7,053 inaccounts payable of $3,350, advance from a related party and $2,818 inof $28,155, accrued interest due to related parties of $18,456 and a related party.$165,000 in convertible notes.

During the sixnine months ended DecemberMarch 31, 2017,2021, we had negative cash flow from operating activities of $28,499$47,132 due to a net loss of $59,872 offset by an increase in accounts payable and accrued interest of $31,373.$57,658. We financed our negative cash flow from operations through $3,499$5,916 in advances provided to usfrom one related party and a total of $225,485 debt and interests waived by our CEO and borrowings under a convertible note.lenders. During the sixnine months ended DecemberMarch 31, 2016,2020, we had negative cash flow from operating activities of $870$7,449 due to a net loss of $870.$61,125 offset by an increase of $53,676 in accounts payable and accrued liabilities. We financed our negative cash flow from operations through $870$7,449 in advances provided to us byfrom our then CEO.

The Company's limited resources and lack of having cash-generating business operations may make it difficult to borrow funds or raise capital. The Company's limitations to borrow funds or raise funds through the issuance of restricted capital stock required to effect or facilitate a business combination may have a material adverse effect on the Company's financial condition and future prospects, including the ability to complete a business combination.

The Company currently plans to satisfy its cash requirements for the next 12 months through borrowings from its CEO or companies affiliated with its CEONew York Listing Management Inc. and believes it can satisfy its cash requirements so long as it is able to obtain financing from these affiliated parties.New York Listing Management Inc. The Company expects that money borrowed will be used during the next 12 months to satisfy the Company'sCompany’s operating costs, professional fees and for general corporate purposes.

On September 1, 2017, we formalized a verbal funding agreement and entered into a Loan Agreement with Ivo Heiden, our former sole officer and director, under which we receive funding of up to $100,000 for general operating expenses from time-to-time as needed by the Company. The loan bears an interest rate of 8% per annum and shall be due and payable on a date three hundred sixty-six (366) days from the date of the Loan Agreement. On June 28, 2019, the Loan Agreement was extended to September 1, 2020 and further on May 1, 2020, the Loan Agreement was extended again to September 1, 2021. As of January 6, 2021, the Company has received a total of $34,114 under this Loan Agreement. On January 6, 2021, the lender has waived the liabilities as well as the interests owed by the Company.

On March 31, 2021, we entered into a Loan Agreement with New York Listing Management Inc., one related party, under which we receive funding of up to $200,000 for general operating expenses from time-to-time as needed by the Company. The loan bears an interest rate of 8% per annum and shall be due and payable on a date three hundred sixty-six (366) days from the date of the Loan Agreement. As of March 31, 2021, the Company has received a total of $5,916 under this Loan Agreement.

The Company intends to repay these advances at a time when it has the cash resources to do so.

The Company has only limited capital. Additional financing is necessary for the Company to continue as a going concern. Our independent auditors have unqualified audit opinion for the years ended June 30, 20172020 and 20162019 with an explanatory paragraph on going concern.

Off-Balance Sheet Arrangements

The Company has not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, it has not entered into any derivative contracts that are indexed to its own shares and classified as stockholders’ equity, or that are not reflected in its financial statements. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. Moreover, the Company does not have any variable interest in any unconsolidated entity that it provides financing, liquidity, market risk or credit support to or engages in hedging or research and development services with the Company.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKRISK.Back

As a small reporting company, we are not required to Table of Contentsprovide the information required by this item.

We have not entered into, and do not expect to enter into, financial instruments for trading or hedging purposes.

ITEM 4. CONTROLS AND PROCEDURESBack to Table of Contents

Evaluation of disclosure controls and procedures.

As of DecemberMarch 31, 2017,2021, the Company'sCompany’s chief executive officer and chief financial officer conducted an evaluation regarding the effectiveness of the Company'sCompany’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controls and procedures as provided under the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013), our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were ineffective asbecause of the endidentification of material weaknesses including lack of sufficient internal accounting personnel in order to ensure complete documentation of complex transactions and adequate financial reporting during the period covered by this report.ended March 31, 2021. The Company has no formal control process related to the identification and approval of related party transactions. As a shell company, the Company currently has no operations and limited personnel, and it has to date not taken corrective actions for the ineffective disclosure controls and procedures. The Company intends to take corrective actions in the future when its starts operations.

Changes in internal controls.

During the quarterly period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.