0001493152-20-006968.txt : 20200423 0001493152-20-006968.hdr.sgml : 20200423 20200423090105 ACCESSION NUMBER: 0001493152-20-006968 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 28 CONFORMED PERIOD OF REPORT: 20200331 FILED AS OF DATE: 20200423 DATE AS OF CHANGE: 20200423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ECOMAT INC CENTRAL INDEX KEY: 0001008653 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PERSONAL SERVICES [7200] IRS NUMBER: 133865026 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-21613 FILM NUMBER: 20809387 BUSINESS ADDRESS: STREET 1: 40 WALL STREET, 28TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 3235529867 MAIL ADDRESS: STREET 1: 40 WALL STREET, 28TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 10-Q 1 form10-q.htm

 

 

 

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 March 31, 2020

 

Commission file number: 000-21613

 

Ecomat, Inc.

(Exact Name Of Registrant As Specified In Its Charter)

 

Nevada   13-3865026
(State of Incorporation)   (I.R.S. Employer Identification No.)
     
2275 Huntington Drive, Suite 851, San Marino, CA   91108
(Address of Principal Executive Offices)   (ZIP Code)

 

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

 

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

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
None   N/A   N/A

 

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. Yes [X] No [  ]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [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 of the Exchange Act) or a smaller reporting company.

 

Large accelerated filer [  ]   Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company) Smaller reporting company [X]
Emerging growth company [  ]      

 

On April 23, 2020, the Registrant had 23,811,750 shares of common stock outstanding.

 

 

 

   
 

 

TABLE OF CONTENTS

 

Item

 

Description

 

Page

         
    PART I - FINANCIAL INFORMATION  
       
ITEM 1.   FINANCIAL STATEMENTS.   3
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS.   9
ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.   10
ITEM 4.   CONTROLS AND PROCEDURES.   10
       
    PART II - OTHER INFORMATION  
       
ITEM 1.   LEGAL PROCEEDINGS.   10
ITEM 1A.   RISK FACTORS.   10
ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.   10
ITEM 3.   DEFAULT UPON SENIOR SECURITIES.   10
ITEM 4.   MINE SAFETY DISCLOSURE.   10
ITEM 5.   OTHER INFORMATION.   10
ITEM 6.   EXHIBITS.   10

 

 2 
 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS Back to Table of Contents

 

Ecomat, Inc.

Balance Sheets

Balance Sheets as of March 31, 2020 and June 30, 2019

Back to Table of Contents

 

   March 31, 2020 (Unaudited)   June 30, 2019 
ASSETS          
Current assets:          
Cash  $-   $- 
Total current assets   -    - 
           
Total assets  $-   $- 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
Current liabilities:          
Accounts payable -trade  $1,125   $- 
Advances from - related party   27,280    19,831 
Accrued compensation - related party   90,000    45,000 
Accrued interest related party   15,220    13,469 
Convertible note - related party   75,000    125,000 
Total current liabilities   208,625    203,300 
           
Stockholders’ deficit:          
Preferred stock, $0.0001 par value; 1,000,000 authorized;   -    - 
Common stock, $0.0001 par value; 74,000,000 shares authorized; 23,811,750 and 16,836,750 issued and outstanding at March 31, 2020 and June 30, 2019   2,381    1,684 
Additional paid in capital   58,894    3,791 
Accumulated deficit   (269,900)   (208,775)
Total stockholders’ deficit   (208,625)   (203,300)
Total liabilities and stockholders’ deficit  $-   $- 

 

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

 

 3 
 

 

Ecomat, Inc.

Statements of Operations

For the Three and Nine Months ended March 31, 2020 and 2019

Back to Table of Contents

 

   Three Months   Three Months   Nine Months   Nine Months 
   Ended   Ended   Ended   Ended 
   March 31, 2020   March 31, 2019   March 31, 2020   March 31, 2019 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Revenue  $-   $-   $-   $- 
Costs and expenses:                    
General and administrative   16,475    16,050    53,573    51,280 
Total operating expenses   16,475    16,050    53,573    51,280 
                     
Other income and expenses                    
Interest expense   2,040    2,784    7,552    6,726 
Net loss  $(18,515)  $(18,834)  $(61,125)  $(58,006)
                     
Per shares amounts:                    
Basic and diluted net loss  $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted average shares outstanding (basic and diluted)   23,811,750    16,836,750    20,210,114    16,836,750 

 

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

 

 4 
 

 

Ecomat, Inc.

Statement of Stockholders’ Deficit

For the Nine Months ended March 31, 2020 and for the year ended June 30, 2019

Back to Table of Contents

 

   Common Stock   Additional       Total 
   Number of   Stated Or   Paid-In   Accumulated   Shareholders’ 
   Shares   Par Value   Capital   Deficit   Deficit 
Balance at June 30, 2018   16,836,750   $1,684   $3,791   $(131,903)  $(126,428)
Net loss   -    -    -    (76,872)   (76,872)
Balance at June 30, 2019   16,836,750   $1,684   $3,791   $(208,775)  $(203,300)
Shares issued upon debt conversion   6,975,000    697    55,103    -    55,800 
Net loss   -    -    -    (61,125)   (61,125)
Balance at March 31, 2020   23,811,750    2,381    58,894    (269,900)   (208,625)

 

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

 

 5 
 

 

Ecomat, Inc.

Statements of Cash Flows

For the Nine Months ended March 31, 2020 and 2019

Back to Table of Contents

 

   Nine Months   Nine Months 
   Ended   Ended 
   March 31, 2020   March 31, 2019 
   (Unaudited)   (Unaudited) 
Cash flows from operating activities:          
Net loss  $(61,125)  $(58,006)
Adjustments required to reconcile net loss  to cash used in operating activities:          
Changes in operating assets and liabilities:          
Increase (decrease) in accounts payable   -    1,050 
Increase (decrease) in accounts payable and accrued liabilities   53,676    51,727 
Cash flows used by operating activities   (7,449)   (5,229)
           
Cash flows from financing activities:          
Advances from related party   7,449    5,229 
Cash generated by financing activities   7,499    5,229 
           
Change in cash   -    - 
Cash - beginning of period   -    - 
Cash - end of period  $-   $- 
           
Non-cash investing and financing activities:          
Accrued compensation settled with convertible notes payable  $-   $75,000- 
Common stock issued upon conversion of debt   55,800    - 

 

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

 

 6 
 

 

Ecomat, Inc.

Background and Significant Accounting Policies

March 31, 2020

Back to Table of Contents

 

Note 1. The Company and Significant Accounting Policies

 

Ecomat, Inc. (the “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-cleaning methods.

 

Basis of Presentation:

 

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.

 

The Financial Statements presented herein have been prepared by us in accordance with the accounting policies described in our June 30, 2019 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 us 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 ongoing basis, we evaluate our estimates, including those related to intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our 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, 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 nine-month periods ended March 31, 2020 and 2019. 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 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 three months ended March 31, 2020, 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.

 

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 became 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 became 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.

 

 7 
 

 

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 concern The Company has incurred losses, has negative operational cash flows and has no revenues. The future of the Company is dependent upon Management success in its efforts and limited resources to pursue and effect a business combination. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

 

If a business combination transaction is not consummated, we do not believe that we could succeed in raising additional capital, from unrelated parties, needed to sustain our operations without some strategic transaction, such as a business combination or merger. If we are unable to consummate such a transaction, we expect that we would need to cease all operations and wind down. Although we are currently evaluating our strategic alternatives with respect to all aspects of our business, we cannot assure you that any actions that we take would raise or generate sufficient capital to fully address the uncertainties of our financial position.

 

Note 3. Convertible Note

 

On July 8, 2017, we issued a convertible promissory note for services provided in the principal amount of $50,000 bearing interest at 1% per annum until paid or converted. 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 $0.008 per share. Interest will be payable upon the maturity date at July 7, 2018. On October 1, 2018, the Company agreed to adjust the interest rate, effective July 1, 2018, on this convertible note from 1% to 8%. On November 19, 2019, WWYD, Inc., the note holder, and the Company agreed to convert the principal amount and the accrued interest of $55,800 into 6,975,000 shares of restricted common stock. During the three-months ended March 31, 2020 and 2019, the Company recorded $0 and $975 in interest, respectively. As of March 31, 2020 and June 30, 2019, the accrued interest for this convertible note was $0 and $4,266, respectively.

 

On October 12, 2018, we issued a $75,000 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 $0.034 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 October 12, 2020. During the three months ended March 31, 2020 and 2019, the Company expensed interest of $1,496 each period related to this note. As of March 31, 2020, the Company has recorded $8,745 in accrued interest with respect to this convertible note.

 

In accordance with ASC # 815, Accounting for Derivative Instruments and Hedging Activities, we evaluated the note holder’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 4. Related Party Transactions

 

Due to Related Parties:

 

Amounts due to related parties consist of advances made by our CEO and accrued interest due to our CEO.

 

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. On June 28, 2019, the Loan Agreement was extended to September 1, 2020. As of March 31, 2020, the outstanding balance on this loan was $27,280 with accrued interest of $6,475. During the three months ended March 31, 2020 and 2019, the Company borrowed $1,475 and $2,240, respectively, under this Loan Agreement. During the three months ended March 31, 2020 and 2019, the Company expensed interest of $544 and $515, respectively related to this note. During the nine months ended March 31, 2020 and 2019, the Company borrowed $7,449 and $5,229, respectively, under this Loan Agreement. During the nine months ended March 31, 2020 and 2019, the Company expensed interest of $1,528 and $979, respectively related to this note.

As of March 31, 2020 and June 30, 2019, our CEO has made total advances of $27,280 and $19,831, respectively, under this Loan Agreement.

 

During the As of March 31, 2020 and June 30, 2019, accrued interest due to our CEO was $15,220 and $9,204, respectively. As of March 31, 2020 and June 30, 2019, accrued compensation due to our CEO was $90,000 and $45,000, respectively.

 

During the three and nine month period ended March 31, 2019, we incurred total interest expenses of $2,040 and $7,552, respectively, related to accrued compensation and advances due to our CEO.

 

On October 12, 2018, the Company issued a convertible note of $75,000 to our CEO evidencing previously accrued compensation.

 

On November 19, 2019, the Company and WWYD, Inc., a note holder, agreed to convert the principal amount of $55,000 and the accrued interest of $5,800 into 6,975,000 shares of restricted common stock.

 

Note 5. Subsequent Events

 

The Company had no subsequent events after March 31, 2020 to the date the financial statements were issued.

 

 8 
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION Back to Table of Contents

 

Some of the statements contained in this quarterly report of Ecomat, Inc. (hereinafter the “Company”, “We” or the “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,” 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

 

The Company’s current business objective is to seek a business combination with an operating company. We intend to use the Company’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:

 

● may significantly reduce the equity interest of our stockholders;

● 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

● may adversely affect the prevailing market price for our common stock.

 

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

 

● default and foreclosure on our assets if our operating revenues after a business combination were insufficient to pay our debt obligations;

● 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;

● 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 March 31, 2020 as compared to the three months ended March 31, 2019

 

We have not generated any revenues during the three months ended March 31, 2020 and 2019. We had total operating expenses of $16,475 related to general and administrative expenses during the three months ended March 31, 2020 compared to $16,050 during the same period in the prior year. We incurred interest expense of $2,040 during three months ended March 31, 2020 compared to interest expense of $2,784 during the three months ended March 31, 2019. During the three months ended March 31, 2020 and 2019, we had a net loss of $18,515 and $18,834, respectively.

 

Results of Operations during the nine months ended March 31, 2020 as compared to the nine months ended March 31, 2019

 

We have not generated any revenues during the nine months ended March 31, 2020 and 2019. We had total operating expenses of $53,573 related to general and administrative expenses during the nine months ended March 31, 2020 compared to $51,280 during the same period in the prior year. We incurred interest expense of $7,552 during nine months ended March 31, 2020 compared to interest expense of $6,726 during the nine months ended March 31, 2019. During the nine months ended March 31, 2020 and 2019, we had a net loss of $61,125 and $58,006, respectively.

 

Liquidity and Capital Resources

 

At present, the Company has no business operations and no cash resources other than advances provided by our CEO. Our CEO and/or an affiliated party 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. 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:

 

● filing of Exchange Act reports.

● franchise fees, registered agent fees and accounting fees, and

● investigating, analyzing and consummating an acquisition or business combination.

 

On March 31, 2020 and June 30, 2019, we have had no current assets. As of March 31, 2020, we had $208,625 in liabilities consisting of accounts payable of $1,125, advance from a related party of $27,280, accrued compensation of $90,000, accrued interest due to related parties of $15,220 and a $75,000 convertible note. As of June 30, 2019, we had $203,300 in current liabilities consisting of advance from a related party of $19,831, accrued compensation of $45,000, accrued interest due to related parties of $13,469 and $125,000 in two convertible notes.

 

During the nine months ended March 31, 2020, we had negative cash flow from operating activities of $7,449 due to a net loss of $61,125 offset by an increase of $53,676 in accounts payable and accrued liabilities. We financed our negative cash flow from operations through $7,449 in advances from our CEO. During the nine months ended March 31, 2019, we had negative cash flow from operating activities of $5,229 due to a net loss of $58,006 offset by an increase in accounts payable of $1,050 and an increase in accounts payable and accrued liabilities of $51,727. We financed our negative cash flow from operations through $5,229 in advances from our CEO.

 

The Company currently plans to satisfy its cash requirements for the next 12 months through borrowings from its CEO and believes it can satisfy its cash requirements so long as it is able to obtain financing from him. The Company expects that money borrowed will be used during the next 12 months to satisfy the Company’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 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. As of March 31, 2020, the Company has received a total of $27,280 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, 2019 and 2018 with an explanatory paragraph on going concern.

 

 9 
 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Back to Table of Contents

 

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

 

ITEM 4. CONTROLS AND PROCEDURES Back to Table of Contents

 

Evaluation of disclosure controls and procedures. As of March 31, 2020, the Company’s chief executive officer and chief financial officer conducted an evaluation regarding the effectiveness of the Company’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 as of the end of the period covered by this report.

 

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.

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS Back to Table of Contents

 

None.

 

ITEM 1A. RISK FACTORS Back to Table of Contents

 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Risk Factors” in our Form 10 as filed with the SEC, which could materially affect our business, financial condition or future results.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS Back to Table of Contents

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES Back to Table of Contents

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURE Back to Table of Contents

 

None.

 

ITEM 5. OTHER INFORMATION Back to Table of Contents

 

None.

 

ITEM 6. EXHIBITS Back to Table of Contents

 

(a) The following documents are filed as exhibits to this Form 10-Q or incorporated by reference herein. Any document incorporated by reference is identified by a parenthetical reference to the SEC filing that included such document.

 

Exhibit No.   Description
31   Certification of CEO and CFO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32   Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 10 
 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the registrant and in the capacities and on the date indicated.

 

ECOMAT, INC.

 

By: /s/ Ivo Heiden  
  Ivo Heiden  
  Chief Executive Officer  
  (Principal Executive Officer)  
Date: April 23, 2020  
     
By: /s/ Ivo Heiden  
  Ivo Heiden  
  Chief Financial Officer  
  (Principal Financial and Principal Accounting Officer)  
Date: April 23, 2020  

 

 11 

 

EX-31 2 ex31.htm

 

Exhibit 31

 

CERTIFICATION

 

I, Ivo Heiden, certify that:

 

1. I have reviewed this quarterly report of Ecomat Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

 

4. The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

 

5. The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

 

Date: April 23, 2020

 

/s/ Ivo Heiden  
CEO and CFO  

 

   

 

EX-32 3 ex32.htm

 

Exhibit 32

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of Ecomat Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2020 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Ivo Heiden, CEO and CFO of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Ivo Heiden  
Ivo Heiden  
CEO and CFO  
Dated: April 23, 2020  

 

A signed original of this written statement required by Section 906 has been provided to Ecomat Inc. and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

   

 

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Related Party Transactions
9 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Related Party Transactions

Note 4. Related Party Transactions

 

Due to Related Parties:

 

Amounts due to related parties consist of advances made by our CEO and accrued interest due to our CEO.

 

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. On June 28, 2019, the Loan Agreement was extended to September 1, 2020. As of March 31, 2020, the outstanding balance on this loan was $27,280 with accrued interest of $6,475. During the three months ended March 31, 2020 and 2019, the Company borrowed $1,475 and $2,240, respectively, under this Loan Agreement. During the three months ended March 31, 2020 and 2019, the Company expensed interest of $544 and $515, respectively related to this note. During the nine months ended March 31, 2020 and 2019, the Company borrowed $7,449 and $5,229, respectively, under this Loan Agreement. During the nine months ended March 31, 2020 and 2019, the Company expensed interest of $1,528 and $979, respectively related to this note.

As of March 31, 2020 and June 30, 2019, our CEO has made total advances of $27,280 and $19,831, respectively, under this Loan Agreement.

 

During the As of March 31, 2020 and June 30, 2019, accrued interest due to our CEO was $15,220 and $9,204, respectively. As of March 31, 2020 and June 30, 2019, accrued compensation due to our CEO was $90,000 and $45,000, respectively.

 

During the three and nine month period ended March 31, 2019, we incurred total interest expenses of $2,040 and $7,552, respectively, related to accrued compensation and advances due to our CEO.

 

On October 12, 2018, the Company issued a convertible note of $75,000 to our CEO evidencing previously accrued compensation.

 

On November 19, 2019, the Company and WWYD, Inc., a note holder, agreed to convert the principal amount of $55,000 and the accrued interest of $5,800 into 6,975,000 shares of restricted common stock.

XML 12 R14.htm IDEA: XBRL DOCUMENT v3.20.1
Related Party Transactions (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Nov. 19, 2019
Jun. 28, 2019
Oct. 12, 2018
Sep. 01, 2017
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Jun. 30, 2019
Related Party Transaction [Line Items]                  
Accrued interest         $ 15,220   $ 15,220   $ 13,469
Borrowed value from related parties             7,449 $ 5,229  
Interest expense         2,040 $ 2,784 7,552 6,726  
Advances to related parties         27,280   27,280   19,831
Accrued compensation         90,000   90,000   45,000
Convertible notes payable         75,000   75,000   125,000
Convertible Promissory Note [Member]                  
Related Party Transaction [Line Items]                  
Accrued interest         0   0   4,266
Ivo Heiden [Member] | Convertible Promissory Note [Member]                  
Related Party Transaction [Line Items]                  
Debt instrument, interest rate     8.00%            
Debt instrument, maturity date     Oct. 12, 2020            
Outstanding loan balance amount     $ 75,000            
Accrued interest         8,745   8,745    
CEO [Member]                  
Related Party Transaction [Line Items]                  
Accrued interest         15,220   15,220   9,204
Interest expense           2,040   7,552  
Accrued compensation         90,000   90,000   45,000
CEO [Member] | Convertible Promissory Note [Member]                  
Related Party Transaction [Line Items]                  
Convertible notes payable     $ 75,000            
Note Holder [Member] | WWYD, Inc. [Member] | Restricted Stock [Member]                  
Related Party Transaction [Line Items]                  
Accrued interest $ 5,800                
Debt conversion principal amount $ 55,000                
Debt conversion, shares of restricted common stock 6,975,000                
Loan Agreement [Member]                  
Related Party Transaction [Line Items]                  
Borrowed value from related parties         1,475 2,240 7,449 5,229  
Interest expense         544 $ 515 1,528 $ 979  
Loan Agreement [Member] | Ivo Heiden [Member]                  
Related Party Transaction [Line Items]                  
Debt instrument, interest rate       8.00%          
Debt instrument, interest rate terms       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.          
Outstanding loan balance amount         27,280   27,280    
Accrued interest         6,475   6,475    
Loan Agreement [Member] | Ivo Heiden [Member] | Extended Maturity [Member]                  
Related Party Transaction [Line Items]                  
Debt instrument, maturity date   Sep. 01, 2020              
Loan Agreement [Member] | CEO [Member]                  
Related Party Transaction [Line Items]                  
Advances to related parties         $ 27,280   $ 27,280   $ 19,831
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Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Jun. 30, 2019
Cash flows from operating activities:          
Net loss $ (18,515) $ (18,834) $ (61,125) $ (58,006) $ (76,872)
Changes in operating assets and liabilities:          
Increase (decrease) in accounts payable     1,050  
Increase (decrease) in accounts payable and accrued liabilities     53,676 51,727  
Cash flows used by operating activities     (7,449) (5,229)  
Cash flows from financing activities:          
Advances from related party     7,449 5,229  
Cash generated by financing activities     7,499 5,229  
Change in cash      
Cash - beginning of period    
Cash - end of period
Non-cash investing and financing activities:          
Accrued compensation settled with convertible notes payable     75,000  
Common stock issued upon conversion of debt     $ 55,800  
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Balance Sheets - USD ($)
Mar. 31, 2020
Jun. 30, 2019
Current assets:    
Cash
Total current assets
Total assets 0 0
Current liabilities:    
Accounts payable -trade 1,125
Advances from - related party 27,280 19,831
Accrued compensation - related party 90,000 45,000
Accrued interest related party 15,220 13,469
Convertible note - related party 75,000 125,000
Total current liabilities 208,625 203,300
Stockholders' deficit:    
Preferred stock, $0.0001 par value; 1,000,000 authorized;
Common stock, $0.0001 par value; 74,000,000 shares authorized; 23,811,750 and 16,836,750 issued and outstanding at March 31, 2020 and June 30, 2019 2,381 1,684
Additional paid in capital 58,894 3,791
Accumulated deficit (269,900) (208,775)
Total stockholders' deficit (208,625) (203,300)
Total liabilities and stockholders' deficit $ 0 $ 0
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Subsequent Events
9 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 5. Subsequent Events

 

The Company had no subsequent events after March 31, 2020 to the date the financial statements were issued.

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The Company and Significant Accounting Policies
9 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
The Company and Significant Accounting Policies

Note 1. The Company and Significant Accounting Policies

 

Ecomat, Inc. (the “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-cleaning methods.

 

Basis of Presentation:

 

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.

 

The Financial Statements presented herein have been prepared by us in accordance with the accounting policies described in our June 30, 2019 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 us 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 ongoing basis, we evaluate our estimates, including those related to intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our 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, 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 nine-month periods ended March 31, 2020 and 2019. 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 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 three months ended March 31, 2020, 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.

 

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 became 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 became 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 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.

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Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2020
Jun. 30, 2019
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 1,000,000 1,000,000
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 74,000,000 74,000,000
Common stock, shares issued 23,811,750 16,836,750
Common stock, shares outstanding 23,811,750 16,836,750
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Convertible Note (Details Narrative) - USD ($)
3 Months Ended
Nov. 19, 2019
Oct. 12, 2018
Jul. 08, 2017
Mar. 31, 2020
Mar. 31, 2019
Jun. 30, 2019
Oct. 02, 2018
Debt Instrument [Line Items]              
Accrued interest       $ 15,220   $ 13,469  
Note Holder [Member] | WWYD, Inc. [Member] | Restricted Stock [Member]              
Debt Instrument [Line Items]              
Convertible debt $ 55,800            
Debt conversion, shares of restricted common stock 6,975,000            
Accrued interest $ 5,800            
Convertible Promissory Note [Member]              
Debt Instrument [Line Items]              
Interest expense       0 $ 975    
Accrued interest       0   $ 4,266  
Convertible Promissory Note [Member] | Ivo Heiden [Member]              
Debt Instrument [Line Items]              
Debt instrument, face amount   $ 75,000          
Debt instrument, interest rate   8.00%          
Debt instrument, conversion price   $ 0.034          
Debt instrument, maturity date   Oct. 12, 2020          
Interest expense       1,496 $ 1,496    
Accrued interest       $ 8,745      
Convertible Promissory Note [Member] | Minimum [Member]              
Debt Instrument [Line Items]              
Debt instrument, interest rate             1.00%
Convertible Promissory Note [Member] | Maximum [Member]              
Debt Instrument [Line Items]              
Debt instrument, interest rate             8.00%
Convertible Promissory Note [Member] | Service [Member]              
Debt Instrument [Line Items]              
Debt instrument, face amount     $ 50,000        
Debt instrument, interest rate     1.00%        
Debt instrument, conversion price     $ 0.008        
Common stock, share price     $ 0.008        
Debt instrument, maturity date     Jul. 07, 2018        
XML 23 R9.htm IDEA: XBRL DOCUMENT v3.20.1
Convertible Note
9 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Convertible Note

Note 3. Convertible Note

 

On July 8, 2017, we issued a convertible promissory note for services provided in the principal amount of $50,000 bearing interest at 1% per annum until paid or converted. 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 $0.008 per share. Interest will be payable upon the maturity date at July 7, 2018. On October 1, 2018, the Company agreed to adjust the interest rate, effective July 1, 2018, on this convertible note from 1% to 8%. On November 19, 2019, WWYD, Inc., the note holder, and the Company agreed to convert the principal amount and the accrued interest of $55,800 into 6,975,000 shares of restricted common stock. During the three-months ended March 31, 2020 and 2019, the Company recorded $0 and $975 in interest, respectively. As of March 31, 2020 and June 30, 2019, the accrued interest for this convertible note was $0 and $4,266, respectively.

 

On October 12, 2018, we issued a $75,000 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 $0.034 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 October 12, 2020. During the three months ended March 31, 2020 and 2019, the Company expensed interest of $1,496 each period related to this note. As of March 31, 2020, the Company has recorded $8,745 in accrued interest with respect to this convertible note.

 

In accordance with ASC # 815, Accounting for Derivative Instruments and Hedging Activities, we evaluated the note holder’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.

XML 24 R5.htm IDEA: XBRL DOCUMENT v3.20.1
Statement of Stockholders' Deficit - USD ($)
Common Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Deficit [Member]
Total
Beginning balance at Jun. 30, 2018 $ 1,684 $ 3,791 $ (131,903) $ (126,428)
Beginning balance, shares at Jun. 30, 2018 16,836,750      
Net loss (76,872) (76,872)
Ending balance at Jun. 30, 2019 $ 1,684 3,791 (208,775) (203,300)
Ending balance, shares at Jun. 30, 2019 16,836,750      
Shares issued upon debt conversion $ 697 55,103 55,800
Shares issued upon debt conversion, shares 6,975,000      
Net loss (61,125) (61,125)
Ending balance at Mar. 31, 2020 $ 2,381 $ 58,894 $ (269,900) $ (208,625)
Ending balance, shares at Mar. 31, 2020 23,811,750      
XML 25 R1.htm IDEA: XBRL DOCUMENT v3.20.1
Document and Entity Information - shares
9 Months Ended
Mar. 31, 2020
Apr. 23, 2020
Document And Entity Information    
Entity Registrant Name ECOMAT INC  
Entity Central Index Key 0001008653  
Document Type 10-Q  
Document Period End Date Mar. 31, 2020  
Amendment Flag false  
Current Fiscal Year End Date --06-30  
Entity Current Reporting Status Yes  
Entity Interactive Data Current No  
Entity Filer Category Non-accelerated Filer  
Entity Small Business Flag true  
Entity Emerging Growth Company false  
Entity Shell Company true  
Entity Common Stock, Shares Outstanding   23,811,750
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2020  
XML 27 R12.htm IDEA: XBRL DOCUMENT v3.20.1
The Company and Significant Accounting Policies (Policies)
9 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation:

 

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.

 

The Financial Statements presented herein have been prepared by us in accordance with the accounting policies described in our June 30, 2019 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 us 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 ongoing basis, we evaluate our estimates, including those related to intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our 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, 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 nine-month periods ended March 31, 2020 and 2019. 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

Recently Issued Accounting Pronouncements

 

In July 2018, 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 three months ended March 31, 2020, 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.

 

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 became 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 became 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 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.

XML 28 R4.htm IDEA: XBRL DOCUMENT v3.20.1
Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Income Statement [Abstract]        
Revenue
Costs and expenses:        
General and administrative 16,475 16,050 53,573 51,280
Total operating expenses 16,475 16,050 53,573 51,280
Other income and expenses        
Interest expense 2,040 2,784 7,552 6,726
Net loss $ (18,515) $ (18,834) $ (61,125) $ (58,006)
Per shares amounts:        
Basic and diluted net loss $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average shares outstanding (basic and diluted) 23,811,750 16,836,750 20,210,114 16,836,750
XML 29 R8.htm IDEA: XBRL DOCUMENT v3.20.1
Going Concern
9 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

Note 2. Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern The Company has incurred losses, has negative operational cash flows and has no revenues. The future of the Company is dependent upon Management success in its efforts and limited resources to pursue and effect a business combination. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

 

If a business combination transaction is not consummated, we do not believe that we could succeed in raising additional capital, from unrelated parties, needed to sustain our operations without some strategic transaction, such as a business combination or merger. If we are unable to consummate such a transaction, we expect that we would need to cease all operations and wind down. Although we are currently evaluating our strategic alternatives with respect to all aspects of our business, we cannot assure you that any actions that we take would raise or generate sufficient capital to fully address the uncertainties of our financial position.