10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

Mark One

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

For the quarterly period ended January 31, 2020

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

For the transition period from ______ to _______

Commission File No. 333-1915008

LEPOTA INC.
 (Exact name of registrant as specified in its charter)

Nevada (State or Other Jurisdiction of Incorporation or Organization) 5999 (Primary Standard Industrial Classification Number) EIN 47-1549749  (IRS Employer Identification Number)  

5348 Vegas Dr.

Las Vegas, NV 89108

+7918 553 90 95

 (Address and telephone number of principal executive offices)

Indicate by checkmark whether the issuer: has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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[   ]

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Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file  reports  pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

Indicate by check mark whether the registrant 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 shorter period that the registrant as 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K  is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes [ ] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [ ]                        Accelerated filer [ ]

Non-accelerated filer [ ]                          Smaller reporting company [X]

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

As of January 31, 2020, the registrant had 7,430,000 shares of common stock issued and outstanding. No market value has been computed based upon the fact that no active trading market has been established as of January 31, 2020.

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PART 1	FINANCIAL INFORMATION
Item 1	Financial Statements (Unaudited)	4
	Balance Sheets	4
	Statements of Operations    Statements of Stockholders' Equity	5 6
	Statements of Cash Flows	7
	Notes to Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	13
Item 4.	Controls and Procedures	13
PART II.	OTHER INFORMATION
Item 1	Legal Proceedings	14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14
Item 3	Defaults Upon Senior Securities	14
Item 4	Mine safety disclosures	14
Item 5	Other Information	14
Item 6	Exhibits	14
	Signatures	15

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LEPOTA INC.

BALANCE SHEETS

ASSETS	January 31, 2020	July 31, 2019 (audited)
Current Assets
Cash and cash equivalents	$452	$2,334
Total Assets	452	2,334
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Current Liabilities
Loan from director	11,074	5,474
Related party loan	4,210	4,210
Total Liabilities	15,284	9,684
Commitments and contingencies
Stockholders’ Deficit
Common stock, par value $0.001; 75,000,000 shares authorized, 7,430,000 and 7,430,000 shares issued and outstanding respectively;	7,430	7,430
Additional Paid-in Capital	21,870	21,870
Accumulated deficit	(44,132)	(36,650)
Total Stockholders’ Deficit	(14,832)	(7,350)
Total Liabilities and Stockholders’ Equity	$452	$2,334

See accompanying notes to financial statements.

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LEPOTA INC.

STATEMENTS OF OPERATIONS

(unaudited)

	Three months ended January 31, 2020	Three months ended January 31, 2019	Six months  ended January 31, 2020	Six months ended January  31, 2019
OPERATING EXPENSES
General and Administrative Expenses	$2,820	$2,590	$7,482	$5,068
TOTAL OPERATING EXPENSES	2,820	2,590	7,482	5,068
NET LOSS FROM OPERATIONS	(2,820)	(2,590)	(7,482)	(5,068)
PROVISION FOR INCOME TAXES	-	-	-	-
NET LOSS	$(2,820)	$(2,590)	$(7,482)	$(5,068)
NET LOSS PER SHARE: BASIC AND DILUTED	$(0.00)*	$(0.00)*	$(0.00)*	$(0.00)*
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED	7,430,000	7,430,000	7,430,000	6,832,610

*denotes a loss of less than $(0.01) per share.

 See accompanying notes to financial statements

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LEPOTA INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

( Unaudited)

	Common Stock		Additional Paid-in	Accumulated	Total Stockholders’
	Shares	Amount	Capital	Deficit	Equity
Balance, July 31, 2017	6,020,000	$6,020	$9,180	$(16,604)	$(1,904)
Shares issued for cash at $0.01 per share as of July 31, 2018	120,000	120	1,080	-	1,200
Stock Subscription Receivable	(50,000)	(50)	(450)		(500)
Net loss for the year 2018	-	-	-	(10,102)	(10,102)
Balance, July 31, 2018	6,090,000	$6,090	$9,810	$(26,706)	$(10,806)
Shares issued for cash at $0.01 per share as of July 31, 2019	1,340,0000	1,340	12,060	-	13,400
Net loss for the year 2019	-	-	-	(9,945)	(9,945)
Balance, July 31, 2019	7,430,000	$7,430	$21,870	$(36,650)	$(7,350)
Net loss for the period quarter ended October 31 2019	-	-	-	(4,662)	(4,662)
Balance, October 31, 2019	7,430,000	$7,430	$21,870	$(41,312)	$(12,012)
Net loss for the period quarter ended January 31, 2020	-	-	-	(2,820)	(2,820)
Balance, January 31, 2020	7,430,000	$7,430	$21,870	$(44,132)	$(14,832)

See accompanying notes to financial statements

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LEPOTA INC.

STATEMENTS OF CASH FLOWS

(unaudited)

	Six months ended January 31, 2020	Six months ended January 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) for the period	$(7,482)	$(5,068)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Changes in assets and liabilities:
Accrued Expenses	-	(2,500)
CASH FLOWS USED IN OPERATING ACTIVITIES	(7,482)	(7,568)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Sale of common stock	-	13,400
Loan from Director	5,600	-
CASH FLOWS PROVIDED FROM FINANCING ACTIVITIES	5,600	13,400
NET INCREASE IN CASH	(1,882)	5,832
Cash, beginning of period	2,334	1,379
Cash, end of period	$452	$7,211
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$ -	$ -
Income taxes paid	$ -	$ -

See accompanying notes to financial statements.

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                                                                                                     LEPOTA INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

January 31, 2020

(UNAUDITED)

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

Lepota Inc. (the "Company" or “Lepota”) was incorporated under the laws of the State of Nevada on December 9, 2013.

Our primary business is in the import of cosmetics into the Russian Federation and distribution of the products through shops and drugstores. Company’s contact address is 5348 Vegas Dr. Las Vegas, NV 89108.

NOTE 2 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES

Recent Accounting Pronouncements

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.

In February 2017, the FASB issued ASU 2017-02, “Leases” (Topic 842), which issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company in the fiscal year beginning January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures.

Basis of Presentation

The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States.  The Company has elected a July 31 fiscal year end.

Fair Value of Financial Instruments

In accordance with ASC 820, the Company’s financial instruments consist of cash and cash equivalents and amounts due to related parties. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Income Taxes

The Company accounts for income taxes under the asset/liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

In January 31, 2020, the FASB issued ASC 740, “Accounting for Uncertainty in Income Taxes”, which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. ASC 740 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties.  Under this pronouncement, the Company recognizes the financial statement benefit of a tax position only after determining that a position would more likely than not be sustained based upon its technical merit if challenged by the relevant taxing authority and taken by management to the court of the last resort. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority. ASC 740 became effective for the Company as of October 1, 2008 and had no material impact on the Company’s financial statements.

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The Company’s policy is to recognize both interest and penalties related to unrecognized tax benefits in income tax expense. Interest and penalties on unrecognized tax benefits expected to result in payment of cash within one year are classified as accrued liabilities, while those expected beyond one year are classified as other liabilities. The Company has not recorded any interest and penalties since its inception.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue in accordance with FASB ASC Topic 605, “Revenue Recognition” which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. As of January 31, 2020 , the Company has not generated any revenue.

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718.  To date, the Company has not adopted a stock option plan and has not granted any stock options.

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of January 31, 2020.

Comprehensive Income

The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances.  When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity.  Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income.

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Recent Accounting Pronouncements

The results for the six months ended January 31, 2020 are not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10K for the year ended July 31, 2020, filed with the Securities and Exchange Commission. In the opinion of management all adjustments necessary for a fair statement of the results for the interim periods have been made, and a statement that all adjustments are of a normal recurring nature or a description of the nature and amount of any adjustments other than normal recurring adjustments.

NOTE 3 – GOING CONCERN

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.  The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable.  If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources.  Management's plans to obtain such resources for the Company include (1) obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses, and (2) seeking out and completing mergers with existing operating companies.  However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 4-DIRECTOR LOAN

As of January 31, 2020, the Company had loan outstanding with the director in the amount of $11,074.

NOTE 5 – RELATED PARTY TRANSACTIONS

As of January 31, 2020, the Company had loan outstanding with related parties in amount of $4,210.

NOTE 6 – COMMON STOCK

The Company has 75,000,000, $0.001 par value shares of common stock authorized.

As of July 31, 2019 and January 31, 2020, there were total of 7,430,000 shares of common stock issued and outstanding. 

All shares were issued for cash.

NOTE 7 – COMMITMENTS AND CONTINGENCIES

The Company neither owns nor leases any real or personal property. An officer has provided office services without charge.  There is no obligation for the officer to continue this arrangement.  Such costs are immaterial to the financial statements and accordingly are not reflected herein.  The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

The Company was not subject to any legal proceedings during the period from December 9, 2013 to January 31, 2020 and no proceedings are threatened or pending to the best of our knowledge and belief.

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NOTE 8 – INCOME TAXES

As of January 31, 2020, the Company had net operating loss carry forwards of approximately $44,132 that may be available to reduce future years’ taxable income in varying amounts through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for Federal income tax consists of the following:

	January 31, 2020	January 31, 2019
Federal income tax benefit attributable to:
Current Operations	$592	$1,064
Less: valuation allowance	(592)	(1,064)
Net provision for Federal income taxes	$      0	$       0

The cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows:

	January 31, 2020	January 31, 2019
Deferred tax asset attributable to:
Net operating loss carryover	$9,268	$6,673
Less: valuation allowance	(9, 268)	(6,673)
Net deferred tax asset	$    0	$      0

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $44,132for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

NOTE 9 – SUBSEQUENT EVENTS

In accordance with ASC 855-10 we have analyzed our operations subsequent January 31, 2020 to the date that the financial statements were issued and have determined that we do not have any material subsequent events to disclose.

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

EMPLOYEES AND EMPLOYMENT AGREEMENTS

At present, we have no employees other than our officer and director.  We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, we may adopt such plans in the future.  There are presently no personal benefits available to any officers, directors or employees.

Results of Operation

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Three and Six Months Period Ended January 31, 2020 and 2019

Our net loss for the three and six months periods ended January 31, 2020 and January 31, 2019 were $(2,820) and $(7,482) and (2,590) and (5,068). During the three and six months period ended January 31, 2020 and 2019 we have not generated any revenue.

The weighted average number of shares outstanding was 7,430,000 and 7,430,000 for the three months ended January 2020 and 2019; and, 7,430,000 and 6,832,610 for the six months periods ended January 31, 2020 and 2019.

Liquidity and Capital Resources

Six Months Period Ended January 31, 2020 

As at January 31, 2020, our total assets were $452. Total assets were comprised of $452 in cash and cash equivalents.  As at January 31, 2020 our current liabilities were $15,284. Stockholders’ equity was $(14,832) as of January 31, 2020.  

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. For the six months period ended January 31, 2020, net cash flows used in operating activities was $(7,482). For the six months period ended January 31, 2019, net cash flows used in operating activities was $(7,568).

Cash Flows from Investing Activities

We have not generated cash flows from investing activities for the period six months ended January 31, 2020 and 2019

Cash Flows from Financing Activities

We have generated cash flows from financing activities for the period six months ended January 31, 2020 in the amount of $5,600 from the loan from directorand we have generated cash flows from financing activities for the period six months ended January 31, 2019 in the amount of $13,400 from the issuance of common stock.

.

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Plan of Operation and Funding

 

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. We will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.

Off-Balance Sheet Arrangements

As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Going Concern

The independent auditors' report accompanying our July 31, 2019 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

No report required.

ITEM 4. CONTROLS AND PROCEDURES

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

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An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of January 31, 2020. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the six-month period ended January 31, 2020  that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

No report required.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

No report required.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

No report required.

ITEM 6. EXHIBITS

Exhibits:

31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

32.1 Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Lepota Inc.
Dated: February 18, 2020	By: /s/ IURII IURTAEV
	IURII IURTAEV , President and Chief Executive Officer and Chief Financial Officer

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EX-31.1

302 CERTIFICATION

I, Iurii Iurtaev, certify that:

         1. I have reviewed this quarterly report on Form 10-Q of Lepota 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 registrant as of, and for, the periods presented in this report;

         4. I am 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 registrant and have:

      a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures, to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 registrant's disclosure controls and procedures and presented in this report my 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

         5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’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 registrant'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 registrant's internal control over financial reporting.

Date: February 18, 2020

/s/Iurii Iurtaev

Iurii Iurtaev

Chief Executive Officer

Chief Financial Officer




EX-32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officer of Lepota Inc. (the "Company"), hereby certifies, to such officer's knowledge, that the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2020 (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/Iurii Iurtaev

Iurii Iurtaev

Chief Executive Officer

Chief Financial Officer

February 18, 2020

XML

BALANCE SHEETS (Parenthetical) - USD ($)	Jan. 31, 2020	Jul. 31, 2019
Statement of Financial Position [Abstract]
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	75,000,000	75,000,000
Common stock shares issued and outstanding	7,430,000	7,430,000

XML

STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) for the period	$ (7,482)	$ (5,068)
Changes in assets and liabilities:
Accrued Expenses	0	(2,500)
CASH FLOWS USED IN OPERATING ACTIVITIES	(7,482)	(7,568)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Sale of common stock	0	13,400
Loan from Director	5,600	0
CASH FLOWS PROVIDED FROM FINANCING ACTIVITIES	5,600	13,400
NET INCREASE IN CASH	(1,882)	5,832
Cash, beginning of period	2,334	1,379
Cash, end of period	452	7,211
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	0	0
Income taxes paid	$ 0	$ 0

XML

- RELATED PARTY TRANSACTIONS

6 Months Ended

Jan. 31, 2020

- RELATED PARTY TRANSACTIONS [Abstract]

- RELATED PARTY TRANSACTIONS

NOTE 5 – RELATED PARTY TRANSACTIONS

As of January 31, 2020, the Company had loan outstanding with related parties in amount of $4,210.

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- SUBSEQUENT EVENTS

6 Months Ended

Jan. 31, 2020

- SUBSEQUENT EVENTS [Abstract]

- SUBSEQUENT EVENTS

NOTE 9 – SUBSEQUENT EVENTS

In accordance with ASC 855-10 we have analyzed our operations subsequent January 31, 2020 to the date that the financial statements were issued and have determined that we do not have any material subsequent events to disclose.

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

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-DIRECTOR LOAN (Details Text)	Jan. 31, 2020 USD ($)
Fair Value, Option, Loans Held as Assets [Abstract]
As of January 31, 2020, the Company had loan outstanding with the director in the amount of $11,074 .	$ 11,074

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- INCOME TAXES (Details 2) - USD ($)	Jan. 31, 2020	Jan. 31, 2019
Deferred tax asset attributable to:
Net operating loss carryover	$ 9,268	$ 6,673
Less: valuation allowance	(9,268)	(6,673)
Net deferred tax asset	$ 0	$ 0

XML

- RELATED PARTY TRANSACTIONS (Details Text)	Jan. 31, 2020 USD ($)
Related Party Transaction, Due from (to) Related Party, Current [Abstract]
As of January 31, 2020, the Company had loan outstanding with related parties in amount of $4,210 .	$ 4,210

XML

- INCOME TAXES (Details Text)	12 Months Ended
	Jan. 31, 2020 USD ($)
Operating Income (Loss) [Abstract]
As of January 31, 2020, the Company had net operating loss carry forwards of approximately $44,132 that may be available to reduce future years' taxable income in varying amounts through 2032	$ 44,132
The cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows:	21.00%

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BALANCE SHEETS - USD ($)	Jan. 31, 2020	Jul. 31, 2019
Current Assets
Cash and cash equivalents	$ 452	$ 2,334
Total Assets	452	2,334
Current Liabilities
Loan from director	11,074	5,474
Related party loan	4,210	4,210
Total Liabilities	15,284	9,684
Commitments and contingencies
Stockholders' Deficit
Common stock, par value $0.001; 75,000,000 shares authorized, 7,430,000 and 7,430,000 shares issued and outstanding respectively;	7,430	7,430
Additional Paid-in Capital	$ 21,870	$ 21,870
Accumulated deficit	(44,132)	(36,650)
Total Stockholders' Deficit	(14,832)	(7,350)
Total Liabilities and Stockholders' Equity	$ 452	$ 2,334

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STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Jul. 31, 2019	Jul. 31, 2018
Statement of Stockholders' Equity [Abstract]
Shares issued for cash at $0.01 per share	$ 0.01	$ 0.01

XML

- COMMON STOCK

6 Months Ended

Jan. 31, 2020

- COMMON STOCK [Abstract]

- COMMON STOCK

NOTE 6 – COMMON STOCK

The Company has 75,000,000, $0.001 par value shares of common stock authorized.

As of July 31, 2019 and January 31, 2020, there were total of 7,430,000 shares of common stock issued and outstanding. 

All shares were issued for cash.

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jan. 31, 2020

Significant Accounting Policies (Policies) [Abstract]

Basis of Presentation

Recent Accounting Pronouncements

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.

In February 2017, the FASB issued ASU 2017-02, “Leases” (Topic 842), which issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company in the fiscal year beginning January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures.

Basis of Presentation

The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States.  The Company has elected a July 31 fiscal year end.

Fair Value of Financial Instruments

In accordance with ASC 820, the Company’s financial instruments consist of cash and cash equivalents and amounts due to related parties. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Income Taxes

The Company accounts for income taxes under the asset/liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

In January 31, 2020, the FASB issued ASC 740, “Accounting for Uncertainty in Income Taxes”, which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. ASC 740 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties.  Under this pronouncement, the Company recognizes the financial statement benefit of a tax position only after determining that a position would more likely than not be sustained based upon its technical merit if challenged by the relevant taxing authority and taken by management to the court of the last resort. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority. ASC 740 became effective for the Company as of October 1, 2008 and had no material impact on the Company’s financial statements.

Use of Estimates

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The Company’s policy is to recognize both interest and penalties related to unrecognized tax benefits in income tax expense. Interest and penalties on unrecognized tax benefits expected to result in payment of cash within one year are classified as accrued liabilities, while those expected beyond one year are classified as other liabilities. The Company has not recorded any interest and penalties since its inception.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue in accordance with FASB ASC Topic 605, “Revenue Recognition” which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. As of January 31, 2020 , the Company has not generated any revenue.

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718.  To date, the Company has not adopted a stock option plan and has not granted any stock options.

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of January 31, 2020.

Comprehensive Income

The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances.  When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity.  Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income.

Recent Accounting Pronouncements

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Recent Accounting Pronouncements

The results for the six months ended January 31, 2020 are not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10K for the year ended July 31, 2020, filed with the Securities and Exchange Commission. In the opinion of management all adjustments necessary for a fair statement of the results for the interim periods have been made, and a statement that all adjustments are of a normal recurring nature or a description of the nature and amount of any adjustments other than normal recurring adjustments.

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- INCOME TAXES (Details 1) - USD ($)	Jan. 31, 2020	Jan. 31, 2019
Federal income tax benefit attributable to:
Current Operations	$ 592	$ 1,064
Less: valuation allowance	(592)	(1,064)
Net provision for Federal income taxes	$ 0	$ 0

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-DIRECTOR LOAN

6 Months Ended

Jan. 31, 2020

-DIRECTOR LOAN [Abstract]

-DIRECTOR LOAN

NOTE 4-DIRECTOR LOAN

As of January 31, 2020, the Company had loan outstanding with the director in the amount of $11,074.

XML

- INCOME TAXES

6 Months Ended

Jan. 31, 2020

- INCOME TAXES [Abstract]

- INCOME TAXES

NOTE 8 – INCOME TAXES

As of January 31, 2020, the Company had net operating loss carry forwards of approximately $44,132 that may be available to reduce future years’ taxable income in varying amounts through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for Federal income tax consists of the following:

	January 31, 2020	January 31, 2019
Federal income tax benefit attributable to:
Current Operations	$592	$1,064
Less: valuation allowance	(592)	(1,064)
Net provision for Federal income taxes	$      0	$       0

The cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows:

	January 31, 2020	January 31, 2019
Deferred tax asset attributable to:
Net operating loss carryover	$9,268	$6,673
Less: valuation allowance	(9, 268)	(6,673)
Net deferred tax asset	$    0	$      0

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $44,132for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

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- SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Details Text)	74 Months Ended
	Jan. 31, 2020 USD ($)
Summary Of Significant Accounting Policies Details [Abstract]
The Company has not recorded any interest and penalties since its inception.	$ 0

XML

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
OPERATING EXPENSES
General and Administrative Expenses	$ 2,820	$ 2,590	$ 7,482	$ 5,068
TOTAL OPERATING EXPENSES	2,820	2,590	7,482	5,068
NET LOSS FROM OPERATIONS	(2,820)	(2,590)	(7,482)	(5,068)
PROVISION FOR INCOME TAXES	0	0	0	0
NET LOSS	$ (2,820)	$ (2,590)	$ (7,482)	$ (5,068)
NET LOSS PER SHARE: BASIC AND DILUTED	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED	7,430,000	7,430,000	7,430,000	6,832,610

XML

- ORGANIZATION AND NATURE OF BUSINESS

6 Months Ended

Jan. 31, 2020

- ORGANIZATION AND NATURE OF BUSINESS [Abstract]

- ORGANIZATION AND NATURE OF BUSINESS

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

Lepota Inc. (the "Company" or “Lepota”) was incorporated under the laws of the State of Nevada on December 9, 2013.

Our primary business is in the import of cosmetics into the Russian Federation and distribution of the products through shops and drugstores. Company’s contact address is 5348 Vegas Dr. Las Vegas, NV 89108.

XML

- INCOME TAXES (Tables)

6 Months Ended

Jan. 31, 2020

- INCOME TAXES (Tables) [Abstract]

The provision for Federal income

The provision for Federal income tax consists of the following:

	January 31, 2020	January 31, 2019
Federal income tax benefit attributable to:
Current Operations	$592	$1,064
Less: valuation allowance	(592)	(1,064)
Net provision for Federal income taxes	$      0	$       0

The cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows

The cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows:

	January 31, 2020	January 31, 2019
Deferred tax asset attributable to:
Net operating loss carryover	$9,268	$6,673
Less: valuation allowance	(9, 268)	(6,673)
Net deferred tax asset	$    0	$      0

XML

- GOING CONCERN

6 Months Ended

Jan. 31, 2020

- GOING CONCERN [Abstract]

- GOING CONCERN

NOTE 3 – GOING CONCERN

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.  The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable.  If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources.  Management's plans to obtain such resources for the Company include (1) obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses, and (2) seeking out and completing mergers with existing operating companies.  However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

XML

- COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jan. 31, 2020

- COMMITMENTS AND CONTINGENCIES [Abstract]

- COMMITMENTS AND CONTINGENCIES

NOTE 7 – COMMITMENTS AND CONTINGENCIES

The Company neither owns nor leases any real or personal property. An officer has provided office services without charge.  There is no obligation for the officer to continue this arrangement.  Such costs are immaterial to the financial statements and accordingly are not reflected herein.  The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

The Company was not subject to any legal proceedings during the period from December 9, 2013 to January 31, 2020 and no proceedings are threatened or pending to the best of our knowledge and belief.

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XML

- SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES

6 Months Ended

Jan. 31, 2020

- SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES [Abstract]

- SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES

Recent Accounting Pronouncements

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.

In February 2017, the FASB issued ASU 2017-02, “Leases” (Topic 842), which issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company in the fiscal year beginning January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures.

Basis of Presentation

The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States.  The Company has elected a July 31 fiscal year end.

Fair Value of Financial Instruments

In accordance with ASC 820, the Company’s financial instruments consist of cash and cash equivalents and amounts due to related parties. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Income Taxes

The Company accounts for income taxes under the asset/liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

In January 31, 2020, the FASB issued ASC 740, “Accounting for Uncertainty in Income Taxes”, which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. ASC 740 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties.  Under this pronouncement, the Company recognizes the financial statement benefit of a tax position only after determining that a position would more likely than not be sustained based upon its technical merit if challenged by the relevant taxing authority and taken by management to the court of the last resort. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority. ASC 740 became effective for the Company as of October 1, 2008 and had no material impact on the Company’s financial statements.

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The Company’s policy is to recognize both interest and penalties related to unrecognized tax benefits in income tax expense. Interest and penalties on unrecognized tax benefits expected to result in payment of cash within one year are classified as accrued liabilities, while those expected beyond one year are classified as other liabilities. The Company has not recorded any interest and penalties since its inception.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue in accordance with FASB ASC Topic 605, “Revenue Recognition” which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. As of January 31, 2020 , the Company has not generated any revenue.

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718.  To date, the Company has not adopted a stock option plan and has not granted any stock options.

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of January 31, 2020.

Comprehensive Income

The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances.  When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity.  Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income.

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Recent Accounting Pronouncements

The results for the six months ended January 31, 2020 are not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10K for the year ended July 31, 2020, filed with the Securities and Exchange Commission. In the opinion of management all adjustments necessary for a fair statement of the results for the interim periods have been made, and a statement that all adjustments are of a normal recurring nature or a description of the nature and amount of any adjustments other than normal recurring adjustments.

XML

Document and Entity Information	6 Months Ended
	Jan. 31, 2020 shares
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	LEPOTA INC.
Entity Central Index Key	0001617351
Current Fiscal Year End Date	--07-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	7,430,000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	true
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false

XML

STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance at Jul. 31, 2017	$ (1,904)	$ 6,020	$ 9,180	$ (16,604)
Balance (in shares) at Jul. 31, 2017		6,020,000
Shares issued for cash at $0.01 per share	1,200	120	1,080
Shares issued for cash at $0.01 per share (in shares)		$ 120,000
Stock Subscription Receivable	$ (500)	(50)	$ (450)
Stock Subscription Receivable (in shares)		(50,000)
Net loss for the period quarter	(10,102)			(10,102)
Balance at Jul. 31, 2018	(10,806)	$ 6,090	9,810	(26,706)
Balance (in shares) at Jul. 31, 2018		6,090,000
Net loss for the period quarter	(9,945)			(9,945)
Balance at Jul. 31, 2019	$ (7,350)	$ 7,430	$ 21,870	(36,650)
Balance (in shares) at Jul. 31, 2019		7,430,000
Shares issued for cash at $0.01 per share	13,400	1,340	12,060
Shares issued for cash at $0.01 per share (in shares)		$ 1,340,000
Net loss for the period quarter	$ (4,662)			(4,662)
Balance at Oct. 31, 2019	(12,012)	$ 7,430	$ 21,870	(41,312)
Balance (in shares) at Oct. 31, 2019		7,430,000
Balance at Jul. 31, 2019	(7,350)	$ 7,430	21,870	(36,650)
Balance (in shares) at Jul. 31, 2019		7,430,000
Net loss for the period quarter	(7,482)
Balance at Jan. 31, 2020	(14,832)	$ 7,430	21,870	(44,132)
Balance (in shares) at Jan. 31, 2020		7,430,000
Balance at Oct. 31, 2019	(12,012)	$ 7,430	21,870	(41,312)
Balance (in shares) at Oct. 31, 2019		7,430,000
Net loss for the period quarter	(2,820)			(2,820)
Balance at Jan. 31, 2020	$ (14,832)	$ 7,430	$ 21,870	$ (44,132)
Balance (in shares) at Jan. 31, 2020		7,430,000

XML

- COMMON STOCK (Details Text) - USD ($)	Jan. 31, 2020	Jul. 31, 2019
- COMMON STOCK [Abstract]
As of July 31, 2019 and January 31, 2020, there were total of 7,430,000 shares of common stock issued and outstanding.	$ 7,430,000	$ 7,430,000