10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2021

or

☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _________ to _________
	Commission File Number 333-199193

Cloudweb, Inc.

(Exact name of registrant as specified in its charter)

Florida	47-0978297
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
800 W El Camino Real Suite 180 Mountain View, CA	94040
(Address of principal executive offices)	(Zip Code)

713-583-6813

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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	None	None

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     ☐ NO

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ YES     ☐ NO

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ YES     ☒ NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. ☐ YES     ☐ NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

63,140,557 common shares issued and outstanding as of August 10, 2021.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition or Plan of Operation	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4.	Controls and Procedures	14
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	15
Item 1A.	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	15
Item 4.	Mine Safety Disclosures	15
Item 5.	Other Information	15
Item 6.	Exhibits	16
SIGNATURES		17

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CLOUDWEB, INC.

BALANCE SHEETS

AS OF JUNE 30, 2021 AND DECEMBER 31, 2020

(in U.S. Dollars, except for number of shares or otherwise stated)

(Unaudited)

	June 30, 2021			December 31, 2020
ASSETS
Total Current Assets	$	-		$	-
TOTAL ASSETS	$	-		$	-
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued liabilities	$	53,662		$	55,409
Accrued interest		125,927			107,565
Promissory notes payable		2,160			2,160
Convertible notes payable, net of note discount of $2,384 and $0, respectively		153,595			39,982
Due to related party		24,100			-
Total Current Liabilities		359,444			205,116
Convertible notes payable, net of note discount of $0 and $3,584, respectively		-			112,416
Promissory notes payable		67,326			67,326
Total Liabilities		426,770			384,858
Stockholders’ Deficit
Common stock, no par value; 500,000,000 shares authorized, 63,140,557 shares issued and outstanding		128,437,821			128,437,821
Accumulated deficit		(128,768,375	)		(128,726,463	)
Accumulated deficit from discontinued operations		(96,216	)		(96,216	)
Total Stockholders’ Deficit		(426,770	)		(384,858	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	-		$	-

The accompanying notes are an integral part of these unaudited condensed financial statements.

3

CLOUDWEB, INC.

STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(in U.S. Dollars, except for number of shares or otherwise stated)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
OPERATING EXPENSES
Professional fees	$	5,300		$	8,257		$	22,350		$	13,407
Stock based compensation		-			11,625,000			-			23,250,000
Total Operating Expenses		5,300			11,633,257			22,350			23,263,407
OTHER EXPENSES
Interest expense		(9,832	)		(18,711	)		(19,562	)		(51,200	)
Total Operating Expenses		(9,832	)		(18,711	)		(19,562	)		(51,200	)
NET LOSS	$	(15,132	)	$	(11,651,968	)	$	(41,912	)	$	(23,314,607	)
NET LOSS PER SHARE: BASIC AND DILUTED	$	(0.00	)	$	(0.18	)	$	(0.00	)	$	(0.58	)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED		63,140,557			63,140,557			63,140,557			40,343,854

The accompanying notes are an integral part of these unaudited condensed financial statements.

4

CLOUDWEB, INC.

STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(in U.S. Dollars, except for number of shares or otherwise stated)

(Unaudited)

								Accumulated Deficit
								From
	Common Stock (no par value)							Discontinued			Total
	Number of Shares		Amount		Accumulated Deficit			Operations Deficit			Stockholders' Deficiency
Balance - December 31, 2020		63,140,557	$	128,437,821	$	(128,726,463	)	$	(96,216	)	$	(384,858	)
Net loss		-		-		(26,780	)		-			(26,780	)
Balance - March 31, 2021		63,140,557	$	128,437,821	$	(128,753,243	)	$	(96,216	)	$	(411,638	)
Net loss		-		-		(15,132	)		-			(15,132	)
Balance – June 30, 2021		63,140,557	$	128,437,821	$	(128,768,375	)	$	(96,216	)	$	(426,770	)

	Common Stock (no par value)										Discontinued			Total
	Number of Shares		Amount		Stock Payable			Accumulated Deficit			Operations Deficit			Stockholders' Deficiency
Balance - December 31, 2019		140,557	$	35,369,809	$	46,500,000		$	(82,109,560	)	$	(96,216	)	$	(335,967	)
Conversion of convertible notes into common stock		3,000,000		9,000		-			-			-			9,000
Beneficial Note Conversion Feature		-		21,801		-			-			-			21,801
Stock-based compensation		60,000,000		58,125,000		(46,500,000	)		-			-			11,625,000
Net loss		-		-		-			(11,662,639	)		-			(11,662,639	)
Balance - March 31, 2020		63,140,557	$	93,525,610	$	-		$	(93,772,199	)	$	(96,216	)	$	(342,805	)
Beneficial Note Conversion Feature		-		13,800		-			-			-			13,800
Stock-based compensation				11,625,000		-			-			-			11,625,000
Net loss		-		-		-			(11,651,968	)		-			(11,651,968	)
Balance - June 30, 2020		63,140,557	$	105,164,410	$	-		$	(105,424,167	)	$	(96,216	)	$	(355,973	)

The accompanying notes are an integral part of these unaudited condensed financial statements.

5

CLOUDWEB, INC.

STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(in U.S. Dollars, except for number of shares or otherwise stated)

(Unaudited)

	Six Months Ended
	June 30,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(41,912	)	$	(23,314,607	)
Adjustments to reconcile net loss to net cash from operating activities:
Amortization of debt discount		1,197			36,800
Stock based compensation		-			23,250,000
Changes in operating liabilities:
Accounts payable and accrued liabilities		(1,747	)		(5,160	)
Accrued interest		18,362			14,399
Net cash used in operating activities		(24,100	)		(18,568	)
CASH FLOWS FROM INVESTING ACTIVITIES		-			-
CASH FLOWS FROM FINANCING ACTIVITIES
Advancement from related party		24,100			-
Proceeds from issuance of convertible notes		-			18,568
Net cash provided by financing activities		24,100			18,568
Net change in cash and cash equivalents		-			-
Cash and cash equivalents - beginning of period		-			-
Cash and cash equivalents - end of period	$	-		$	-
Supplemental Cash Flow Disclosures
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-
Non-Cash Investing and Financing Activity:
Amendment of promissory note to convertible note	$	-		$	17,033
Conversion of convertible notes for common stock	$	-		$	9,000
Beneficial conversion feature	$	-		$	35,601

The accompanying notes are an integral part of these unaudited condensed financial statements.

6

CLOUDWEB, INC.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

AS OF AND FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(in U.S. Dollars, except for number of shares or otherwise stated)

NOTE 1 – ORGANIZATION AND BUSINESS OPERATIONS

Cloudweb, Inc. (the “Company”, or “we”) is a Florida corporation incorporated on May 25, 2014 as Formigli, Inc. In December 2015, the Company changed its name to Data Backup, Inc., and on November 4, 2016, the Company changed its name to Data Backup Solutions Inc. On October 1, 2017, the Company changed its name to Cloudweb, Inc.

We are currently exploring different options of further developing and marketing our web hosting and data storage services. This includes plans to make hosting available for free while being supported by advertiser content. The Company will also look into white labeling its services to allow other brands to use our platforms for their own needs.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2020 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended December 31, 2020 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 10, 2021.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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.

Basic and Diluted Income (Loss) Per Share

The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

For the six months ended June 30, 2021 and 2020, respectively, the following convertible notes were excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive:

	June 30,		June 30,
	2021		2020
	(Shares)		(Shares)
Convertible notes payable		57,827,097		44,445,917

7

Recent accounting pronouncements

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its financial statements.

NOTE 3 – GOING CONCERN

The Company believes that its existing capital resources may not be adequate to enable it to execute its business plan. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The Company estimates that it will require additional cash resources from loan from related party and unaffiliated parties based on its current operating plan and condition. The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business and expansion plans.

NOTE 4 – RELATED PARTY TRANSACTIONS

During the six months ended June 30, 2021, the Director of the Company advance $24,100 for paying operating expenses on behalf of the Company. The loan is non-interest bearing and due on demand.

NOTE 5 – PROMISSORY NOTES

		June 30,			December 31,
	Expiry Date	2021			2020			Interest Rate
Promissory Note - November 2017	Due on demand	$	2,160		$	2,160		60% per annum
Promissory Note - March 2018	3/31/2028		15,296			15,296		30% per annum
Promissory Note - June 2018	6/29/2028		12,249			12,249		30% per annum
Promissory Note - September 2018	9/29/2028		5,408			5,408		30% per annum
Promissory Note - December 2018	12/30/2028		6,137			6,137		30% per annum
Promissory Note - March 2019	3/30/2029		7,150			7,150		30% per annum
Promissory Note - June 2019	6/30/2029		10,105			10,105		30% per annum
Promissory Note - September 2019	9/30/2029		4,081			4,081		30% per annum
Promissory Note - December 2019	12/31/2029		6,900			6,900		30% per annum
			69,486			69,486
Less current portion of promissory note payable			(2,160	)		(2,160	)
Long-term promissory notes payable		$	67,326		$	67,326

As of June 30, 2021 and December 31, 2020, the accrued interest on the promissory notes was $56,687 and $34,895, respectively.

8

NOTE 6 – CONVERTIBLE NOTES

		June 30,			December 31,
	Expiry Date	2021			2020
Convertible Notes - July 2017	6/30/2022	$	116,000		$	116,000
Convertible Notes - January 2020	Due on demand		8,033			8,033
Convertible Notes - March 2020	Due on demand		4,768			4,768
Convertible Notes - June 2020	Due on demand		13,800			13,800
Convertible Notes - September 2020	Due on demand		7,307			7,307
Convertible Notes - December 2020	Due on demand		6,074			6,074
Less debt discount			(2,387	)		(3,584	)
			153,595			152,398
Less current portion of convertible note payable			(153,595	)		(39,982	)
Long-term convertible notes payable		$	-		$	112,416

Convertible Notes – July 2017

On July 1, 2017, the Company replaced the promissory notes held by the four non-affiliated assignees with convertible notes at principal amount of $34,000, for total note principal amount of $136,000. The convertible notes bear interest at 4% per annum, has an original expiry date of June 30, 2019 and subsequently extended to June 30, 2022 and are convertible at $0.005 per share for the Company common stock. On January 2, 2018, the four non-affiliated holders of the convertible notes elected to convert $5,000 principal portion of their notes for 1,000,000 shares of common stock at $0.005 per share. An aggregate $20,000 principal amount of the four convertible notes were converted for 4,000,000 common shares.

Convertible Note – January 2020

On January 2, 2020, the Company replaced a promissory note of $17,033 originally issued to an unaffiliated party on December 31, 2017 with a convertible note of $17,033. The convertible note is due on demand, bear interest at 10% per annum and is convertible at $0.003 per share. The discount on convertible note from beneficial conversion feature of $17,033 was fully amortized during the year ended December 31, 2020. On March 4, 2020, this convertible note was sold to another unaffiliated party.

Convertible Note – March 2020

On March 4, 2020, the convertible note originally issued on January 2, 2020 comprising of principal amount of $17,033 and accrued interest of $21,073 was sold to another unaffiliated party. On March 23, 2020, the principal amount of the convertible note of $9,000 was converted into 3,000,000 shares of common stock. (see Note 7)

On March 31, 2020, the Company issued to an unaffiliated party a convertible note at $4,768 for paying operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 30% per annum and is convertible at $0.001 per share. The discount on convertible note from beneficial conversion feature of $4,768 was fully amortized during the year ended December 31, 2020.

9

Convertible Note – June 2020

On June 30, 2020, the Company issued to an unaffiliated party a convertible note at $13,800 for paying operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 30% per annum and is convertible at $0.001 per share. The discount on convertible note from beneficial conversion feature of $13,800 was fully amortized during the year ended December 31, 2020.

Convertible Note – September 2020

On September 30, 2020, the Company issued to an unaffiliated party a convertible note at $7,307 for paying operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 30% per annum and is convertible at $0.001 per share. The discount on convertible note from beneficial conversion feature of $7,307 was fully amortized during the year ended December 31, 2020.

Convertible Note – December 2020

On December 31, 2020, the Company issued to an unaffiliated party a convertible note at $6,074 for paying operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 30% per annum and is convertible at $0.001 per share. The discount on convertible note from beneficial conversion feature of $6,074 was fully amortized during the year ended December 31, 2020.

During the six months ended June 30, 2021 and 2020, the Company recognized amortization of debt discount and beneficial conversion feature of $1,197 and $36,800, respectively.

As of June 30, 2021 and December 31, 2020, the convertible notes payable was $153,595 and $152,398, net of note discount of $2,384 and $3,584, and accrued interest payable was $69,240 and $61,684, respectively.

NOTE 7 - EQUITY

Authorized Stock

The Company’s authorized common stock consists of 500,000,000 shares with no par value.

Common Shares

On March 5, 2020, the Company issued 60,000,000 shares of restricted common stock valued at $93,000,000 to a corporation controlled by the Company’s CEO. (Note 4)

On March 23, 2020, principal amount of $9,000 from a convertible note was converted for 3,000,000 shares of common stock at stock trading price of $1.25 per share. (Note 6)

NOTE 8 – RISKS AND UNCERTAINTIES

In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease (COVID-19) outbreak a pandemic. This pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s results of operations and financial position at June 30, 2021. The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company in the future. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of these financial statements. These estimates may change, as new events occur and additional information is obtained.

NOTE 9 – SUBSEQUENT EVENTS

On June 20, 2021, a majority of stockholders of our company and board of directors approved a reverse stock split of our issued and outstanding shares of common stock on a basis of up to two hundred (200) old shares for one (1) new share of common stock. The reverse stock splits is expected to be approved by FINRA on August 19, 2021.

10

Item 2. Management’s Discussion and Analysis of Financial Condition or Plan of Operation

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements relating to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “intends”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors which may cause our or our industry’s actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these statements, which speak only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results, later events or circumstances or to reflect the occurrence of unanticipated events.

In this report unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares of our capital stock.

The management’s discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

As used in this quarterly report, the terms “we”, “us”, “our”, and “our company” means Cloudweb, Inc., unless otherwise indicated.

General Overview

Our Company

Cloudweb, Inc. is a Florida corporation incorporated on May 25, 2014 as Formigli, Inc. In December 2015, the Company changed its name to Data Backup, Inc., and on November 4, 2016, the Company changed its name to Data Backup Solutions Inc. On October 1, 2017, the Company changed its name to Cloudweb, Inc.

Our headquarters are located at 800 W El Camino Real Suite 180 Mountain View, Florida, CA 94040.

We are currently exploring different options of further developing and marketing our web hosting and data storage services Hostwizer.com, W8hosting.com, and JeyCloud.com. This includes plans to make hosting available for free while being supported by advertiser content. The Company will also look into white labeling its services to allow other brands to use our platforms for their own needs.

We do not have any subsidiaries.

We have never declared bankruptcy, been in receivership, or involved in any kind of legal proceeding.

11

Results of Operations

The following summary of our operations should be read in conjunction with our unaudited financial statements for the three months ended June 30, 2021 and 2020.

Three months ended June 30, 2021 compared to three months ended June 30, 2020

	Three Months Ended
	June 30,
	2021		2020		Changes			%
Operating Expenses
Professional fees	$	5,300	$	8,257	$	(2,957	)	(36		%)
Stock based compensation		-		11,625,000		(11,625,000	)		-
Total operating expenses		5,300		11,633,257		(11,627,957	)	(100		%)
Other expenses		9,832		18,711		(8,879	)	(47		%)
Net Loss	$	15,132	$	11,651,968	$	(11,636,836	)	(100		%)

We had no revenue for the three months ended June 30, 2021 and 2020.

Our net loss for the three months ended June 30, 2021 was $15,132 compared with net loss of $11,651,968 for the three months ended June 30, 2020 due to the decrease in stock based compensation expenses. During the three months ended June 30, 2020, we incurred stock based compensation of $11,625,000 attributed to shares issued for Chief Executive Officer’s second quarter portion of the year 2020 salary.

Six months ended June 30, 2021 compared to six months ended June 30, 2020

	Six months ended
	June 30,
	2021		2020		Changes			%
Operating expenses
Professional fees	$	22,350	$	13,407	$	8,943			67	%
Stock based compensation		-		23,250,000		(23,250,000	)		-
Total operating expenses		22,350		23,263,407		(23,241,057	)	(100		%)
Other expenses		19,562		51,200	(31,638)				(62	%)
Net Loss	$	41,912	$	23,314,607	$	(23,272,695	)	(100		%)

We had no revenue for the six months ended June 30, 2021 and 2020.

Our net loss for the six months ended June 30, 2021 was $41,912 compared with net loss of $23,314,607 for the six months ended June 30, 2020 due to the decrease in stock based compensation expenses. During the six months ended June 30, 2020, we incurred stock based compensation of $23,250,000 attributed to shares issued for Chief Executive Officer’s first half of the year 2020 salary.

12

Liquidity and Capital

Working Capital

	As of			As of
	June 30,			December 31,
	2021			2020			Changes			%
Current Assets	$	-		$	-		$	-
Current Liabilities	$	359,444		$	205,116		$	154,328			75	%
Working Capital Deficiency	$	(359,444	)	$	(205,116	)	$	(154,328	)		75	%

As at June 30, 2021 and December 31, 2020, our company had no cash and assets.

As at June 30, 2021, our company had total liabilities of $426,770, of which included convertible notes payable of $153,595, accrued interest of $125,927, promissory notes payable of $69,486 and accounts payable and accrued liabilities of $53,662. As at December 31, 2020, our company had total liabilities of $384,858, of which included convertible notes payable of $152,398, accrued interest of $107,565, promissory note payable of $2,160 and accounts payable and accrued liabilities of $55,409.

As at June 30, 2021, our company had a working capital deficiency of $359,444 compared with a working capital deficiency of $205,116 as at December 31, 2020. The increase in working capital deficit was primarily due to an increase in convertible notes, due to related party and accrued interest.

Cash Flows

	Six months ended
	June 30,
	2021			2020			Changes			%
Cash flows used in operating activities	$	(24,100	)	$	(18,568	)	$	(5,532	)		30	%
Cash flows provided by financing activities		24,100			18,568			5,532			30	%
Net changes in cash	$	-		$	-		$	-			-

Cash Flow from Operating Activities

We have not generated positive cash flow from operating activities. During the six months ended June 30, 2021, net cash used in operating activities was $24,100 compared to $18,568 used during the six months ended June 30, 2020. Cash flows used in operating activities during the six months ended June 30, 2021, comprised of a net loss of $41,912, which was reduced by non-cash expenses of $1,197 for amortization of debt discount and a net change in working capital of $16,615. Cash flows used in operating activities during the six months ended June 30, 2020, comprised of a net loss from of $23,314,607, which was reduced by non-cash expenses of $36,800 for amortization of debt discount, $23,250,000 for stock based compensation and a net change in working capital of $9,239.

Cash Flow from Investing Activities

During the six months ended June 30, 2021 and 2020, our company did not have any investing activities.

Cash Flow from Financing Activities

During the six months ended June 30, 2021, net cash provided by financing activities was $24,100 compared to $18,568 during the six months ended June 30, 2020. During the six months ended June 30, 2021, the Company received $24,100 for advancement from the Company’s Director for paying operating expenses. During the six months ended June 30, 2020, the Company received $18,568 for proceeds from issuance of convertible note.

13

Going Concern

As of June 30, 2021, we had an accumulated deficit of $128,768,375. We believe that its existing capital resources may not be adequate to enable it to execute its business plan. These conditions raise substantial doubt as to our Company’s ability to continue as a going concern. Our Company is currently exploring different options of further developing and marketing our web hosting and data storage services. The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business plans.

Off-Balance Sheet Arrangements

We have no 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 stockholders.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer (our principal executive officer, principal financial officer and principal accounting officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a- 15(e) and 15d- 15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer has concluded that as of such date, our disclosure controls and procedures were not effective such that the information relating to us required to be disclosed in our Securities and Exchange Commission (“SEC”) reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

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

14

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We know of no material, existing or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our company.

Item 1A. Risk Factors

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

15

Item 6. Exhibits

The following exhibits are included as part of this report:

Exhibit Number	Description
31	Rule 13a-14(a)/15d-14(a) Certification
31.1	Section 302 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer
32	Section 1350 Certification
32.1*	Section 906 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer
101	Interactive Data Files
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document

_________

*	Filed herewith. In addition, in accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed.
**	XBRL Information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

16

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CLOUDWEB, INC.
	(Registrant)
Dated: August 11, 2021	/s/ Zhi De Liao
	Zhi De Liao
	President, Chief Executive Officer,
	Chief Financial Officer and Director
	(Principal Executive Officer, Principal
	Financial Officer and Principal Accounting Officer)

17

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Zhi De Liao, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Cloudweb, 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 our supervision, to ensure that material information relating to the registrant, 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 registrant'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 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;

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: August 11, 2021

/s/ Zhi De Liao

Zhi De Liao
President, Chief Executive Officer,

Chief Financial Officer and Director

(Principal Executive Officer, Principal

Financial Officer and Principal Accounting Officer)

EX-32.1

EXHIBIT 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, Zhi De Liao, President, of Cloudweb, Inc., hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	the quarterly report on Form 10-Q of Cloudweb, Inc. for the period ended June 30, 2021 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Cloudweb, Inc.

Date: August 11, 2021

/s/ Zhi De Liao

Zhi De Liao
President, Chief Executive Officer,

Chief Financial Officer and Director

(Principal Executive Officer, Principal

Financial Officer and Principal Accounting Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Cloudweb, Inc. and will be retained by Cloudweb, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 10, 2021
Cover [Abstract]
Entity Registrant Name	Cloudweb, Inc.
Entity Central Index Key	0001619227
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		63,140,557
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

XML

BALANCE SHEETS - USD ($)	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Total Current Assets	$ 0	$ 0
TOTAL ASSETS	0	0
Current Liabilities
Accounts payable and accrued liabilities	53,662	55,409
Accrued interest	125,927	107,565
Promissory notes payable	2,160	2,160
Convertible notes payable, net of note discount of $2,384 and $0, respectively	153,595	39,982
Due to related party	24,100	0
Total Current Liabilities	359,444	205,116
Convertible notes payable, net of note discount of $0 and $3,584, respectively	0	112,416
Promissory notes payable	67,326	67,326
Total Liabilities	426,770	384,858
Stockholders' Deficit
Common stock, no par value; 500,000,000 shares authorized, 63,140,557 shares issued and outstanding	128,437,821	128,437,821
Accumulated deficit	(128,768,375)	(128,726,463)
Accumulated deficit from discontinued operations	(96,216)	(96,216)
Total Stockholders' Deficit	(426,770)	(384,858)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 0	$ 0

XML

BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
BALANCE SHEETS
Convertible notes payable, net of note discount current	$ 2,384	$ 0
Convertible notes payable, net of note discount non current	$ 0	$ 3,584
Stockholders' Deficit
Common stock, shares par value	$ 0	$ 0
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	63,140,557	63,140,557
Common stock, shares outstanding	63,140,557	63,140,557

XML

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
OPERATING EXPENSES
Professional fees	$ 5,300	$ 8,257	$ 22,350	$ 13,407
Stock based compensation	0	11,625,000	0	23,250,000
Total Operating Expenses	5,300	11,633,257	22,350	23,263,407
OTHER EXPENSES
Interest expense	(9,832)	(18,711)	(19,562)	(51,200)
Total Operating Expenses	(9,832)	(18,711)	(19,562)	(51,200)
NET LOSS	$ (15,132)	$ (11,651,968)	$ (41,912)	$ (23,314,607)
NET LOSS PER SHARE: BASIC AND DILUTED	$ 0.00	$ (0.18)	$ (0.00)	$ (0.58)
*WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED	63,140,557	63,140,557	63,140,557	40,343,854

XML

STATEMENTS OF STOCKHOLDERS DEFICIT (Unaudited) - USD ($)	Total	Common Stock	Accumulated Deficit	Accumulated Deficit from Discontinued Operations Deficit	Stock Payable
Balance, shares at Dec. 31, 2019		140,557
Balance, amount at Dec. 31, 2019	$ (335,967)	$ 35,369,809	$ (82,109,560)	$ (96,216)	$ 46,500,000
Conversion of convertible notes into common stock, shares		3,000,000
Conversion of convertible notes into common stock, amount	9,000	$ 9,000	0	0	0
Beneficial Note Conversion Feature	21,801	$ 21,801	0	0	0
Stock-based compensation, shares		60,000,000
Stock-based compensation, amount	11,625,000	$ 58,125,000	0	0	(46,500,000)
Net loss	(11,662,639)	$ 0	(11,662,639)	0	0
Balance, shares at Mar. 31, 2020		63,140,557
Balance, amount at Mar. 31, 2020	(342,805)	$ 93,525,610	(93,772,199)	(96,216)	0
Balance, shares at Dec. 31, 2019		140,557
Balance, amount at Dec. 31, 2019	(335,967)	$ 35,369,809	(82,109,560)	(96,216)	46,500,000
Net loss	(23,314,607)
Balance, shares at Jun. 30, 2020		63,140,557
Balance, amount at Jun. 30, 2020	(355,973)	$ 105,164,410	(105,424,167)	(96,216)	0
Balance, shares at Mar. 31, 2020		63,140,557
Balance, amount at Mar. 31, 2020	(342,805)	$ 93,525,610	(93,772,199)	(96,216)	0
Beneficial Note Conversion Feature	13,800	13,800	0	0	0
Net loss	(11,651,968)	0	(11,651,968)	0	0
Stock-based compensation	11,625,000	$ 11,625,000	0	0	0
Balance, shares at Jun. 30, 2020		63,140,557
Balance, amount at Jun. 30, 2020	(355,973)	$ 105,164,410	(105,424,167)	(96,216)	$ 0
Balance, shares at Dec. 31, 2020		63,140,557
Balance, amount at Dec. 31, 2020	(384,858)	$ 128,437,821	(128,726,463)	(96,216)
Net loss	(26,780)	$ 0	(26,780)	0
Balance, shares at Mar. 31, 2021		63,140,557
Balance, amount at Mar. 31, 2021	(411,638)	$ 128,437,821	(128,753,243)	(96,216)
Balance, shares at Dec. 31, 2020		63,140,557
Balance, amount at Dec. 31, 2020	(384,858)	$ 128,437,821	(128,726,463)	(96,216)
Net loss	(41,912)
Balance, shares at Jun. 30, 2021		63,140,557
Balance, amount at Jun. 30, 2021	(426,770)	$ 128,437,821	(128,768,375)	(96,216)
Balance, shares at Mar. 31, 2021		63,140,557
Balance, amount at Mar. 31, 2021	(411,638)	$ 128,437,821	(128,753,243)	(96,216)
Net loss	(15,132)	$ 0	(15,132)	0
Balance, shares at Jun. 30, 2021		63,140,557
Balance, amount at Jun. 30, 2021	$ (426,770)	$ 128,437,821	$ (128,768,375)	$ (96,216)

XML

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (41,912)	$ (23,314,607)
Adjustments to reconcile net loss to net cash from operating activities:
Amortization of debt discount	1,197	36,800
Stock based compensation	0	23,250,000
Changes in operating liabilities:
Accounts payable and accrued liabilities	(1,747)	(5,160)
Accrued interest	18,362	14,399
Net cash used in operating activities	(24,100)	(18,568)
CASH FLOWS FROM INVESTING ACTIVITIES	0	0
CASH FLOWS FROM FINANCING ACTIVITIES
Advancement from related party	24,100	0
Proceeds from issuance of convertible notes	0	18,568
Net cash provided by financing activities	24,100	18,568
Net change in cash and cash equivalents	0	0
Cash and cash equivalents - beginning of period	0	0
Cash and cash equivalents - end of period	0	0
Supplemental Cash Flow Disclosures
Cash paid for interest	0	0
Cash paid for income taxes	0	0
Non-Cash Investing and Financing Activity:
Amendment of promissory note to convertible note	0	17,033
Conversion of convertible notes for common stock	0	9,000
Beneficial conversion feature	$ 0	$ 35,601

XML

ORGANIZATION AND BUSINESS OPERATIONS

6 Months Ended

Jun. 30, 2021

ORGANIZATION AND BUSINESS OPERATIONS

NOTE 1 - ORGANIZATION AND BUSINESS OPERATIONS

Cloudweb, Inc. (the “Company”, or “we”) is a Florida corporation incorporated on May 25, 2014 as Formigli, Inc. In December 2015, the Company changed its name to Data Backup, Inc., and on November 4, 2016, the Company changed its name to Data Backup Solutions Inc. On October 1, 2017, the Company changed its name to Cloudweb, Inc.

We are currently exploring different options of further developing and marketing our web hosting and data storage services. This includes plans to make hosting available for free while being supported by advertiser content. The Company will also look into white labeling its services to allow other brands to use our platforms for their own needs.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2020 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended December 31, 2020 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 10, 2021.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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.

Basic and Diluted Income (Loss) Per Share

The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

For the six months ended June 30, 2021 and 2020, respectively, the following convertible notes were excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive:

	June 30,		June 30,
	2021		2020
	(Shares)		(Shares)
Convertible notes payable		57,827,097		44,445,917

Recent accounting pronouncements

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its financial statements.

XML

GOING CONCERN

6 Months Ended

Jun. 30, 2021

GOING CONCERN

NOTE 3 - GOING CONCERN

The Company believes that its existing capital resources may not be adequate to enable it to execute its business plan. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The Company estimates that it will require additional cash resources from loan from related party and unaffiliated parties based on its current operating plan and condition. The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business and expansion plans.

XML

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2021

RELATED PARTY TRANSACTIONS

NOTE 4 - RELATED PARTY TRANSACTIONS

During the six months ended June 30, 2021, the Director of the Company advance $24,100 for paying operating expenses on behalf of the Company. The loan is non-interest bearing and due on demand.

XML

PROMISSORY NOTES

6 Months Ended

Jun. 30, 2021

PROMISSORY NOTES

NOTE 5 - PROMISSORY NOTES

		June 30,			December 31,
	Expiry Date	2021			2020			Interest Rate
Promissory Note - November 2017	Due on demand	$	2,160		$	2,160		60% per annum
Promissory Note - March 2018	3/31/2028		15,296			15,296		30% per annum
Promissory Note - June 2018	6/30/2028		12,249			12,249		30% per annum
Promissory Note - September 2018	9/30/2028		5,408			5,408		30% per annum
Promissory Note - December 2018	12/31/2028		6,137			6,137		30% per annum
Promissory Note - March 2019	3/31/2029		7,150			7,150		30% per annum
Promissory Note - June 2019	6/30/2029		10,105			10,105		30% per annum
Promissory Note - September 2019	9/30/2029		4,081			4,081		30% per annum
Promissory Note - December 2019	12/31/2029		6,900			6,900		30% per annum
			69,486			69,486
Less current portion of promissory note payable			(2,160	)		(2,160	)
Long-term promissory notes payable		$	67,326		$	67,326

As of June 30, 2021 and December 31, 2020, the accrued interest on the promissory notes was $56,687 and $34,895, respectively.

XML

CONVERTIBLE NOTES

6 Months Ended

Jun. 30, 2021

CONVERTIBLE NOTES

NOTE 6 - CONVERTIBLE NOTES

		June 30,			December 31,
	Expiry Date	2021			2020
Convertible Notes - July 2017	6/30/2022	$	116,000		$	116,000
Convertible Notes - January 2020	Due on demand		8,033			8,033
Convertible Notes - March 2020	Due on demand		4,768			4,768
Convertible Notes - June 2020	Due on demand		13,800			13,800
Convertible Notes - September 2020	Due on demand		7,307			7,307
Convertible Notes - December 2020	Due on demand		6,074			6,074
Less debt discount			(2,387	)		(3,584	)
			153,595			152,398
Less current portion of convertible note payable			(153,595	)		(39,982	)
Long-term convertible notes payable		$	-		$	112,416

Convertible Notes – July 2017

On July 1, 2017, the Company replaced the promissory notes held by the four non-affiliated assignees with convertible notes at principal amount of $34,000, for total note principal amount of $136,000. The convertible notes bear interest at 4% per annum, has an original expiry date of June 30, 2019 and subsequently extended to June 30, 2022 and are convertible at $0.005 per share for the Company common stock. On January 2, 2018, the four non-affiliated holders of the convertible notes elected to convert $5,000 principal portion of their notes for 1,000,000 shares of common stock at $0.005 per share. An aggregate $20,000 principal amount of the four convertible notes were converted for 4,000,000 common shares.

Convertible Note – January 2020

On January 2, 2020, the Company replaced a promissory note of $17,033 originally issued to an unaffiliated party on December 31, 2017 with a convertible note of $17,033. The convertible note is due on demand, bear interest at 10% per annum and is convertible at $0.003 per share. The discount on convertible note from beneficial conversion feature of $17,033 was fully amortized during the year ended December 31, 2020. On March 4, 2020, this convertible note was sold to another unaffiliated party.

Convertible Note – March 2020

On March 4, 2020, the convertible note originally issued on January 2, 2020 comprising of principal amount of $17,033 and accrued interest of $21,073 was sold to another unaffiliated party. On March 23, 2020, the principal amount of the convertible note of $9,000 was converted into 3,000,000 shares of common stock. (see Note 7)

On March 31, 2020, the Company issued to an unaffiliated party a convertible note at $4,768 for paying operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 30% per annum and is convertible at $0.001 per share. The discount on convertible note from beneficial conversion feature of $4,768 was fully amortized during the year ended December 31, 2020.

Convertible Note – June 2020

On June 30, 2020, the Company issued to an unaffiliated party a convertible note at $13,800 for paying operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 30% per annum and is convertible at $0.001 per share. The discount on convertible note from beneficial conversion feature of $13,800 was fully amortized during the year ended December 31, 2020.

Convertible Note – September 2020

On September 30, 2020, the Company issued to an unaffiliated party a convertible note at $7,307 for paying operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 30% per annum and is convertible at $0.001 per share. The discount on convertible note from beneficial conversion feature of $7,307 was fully amortized during the year ended December 31, 2020.

Convertible Note – December 2020

On December 31, 2020, the Company issued to an unaffiliated party a convertible note at $6,074 for paying operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 30% per annum and is convertible at $0.001 per share. The discount on convertible note from beneficial conversion feature of $6,074 was fully amortized during the year ended December 31, 2020.

During the six months ended June 30, 2021 and 2020, the Company recognized amortization of debt discount and beneficial conversion feature of $1,197 and $36,800, respectively.

As of June 30, 2021 and December 31, 2020, the convertible notes payable was $153,595 and $152,398, net of note discount of $2,384 and $3,584, and accrued interest payable was $69,240 and $61,684, respectively.

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EQUITY

6 Months Ended

Jun. 30, 2021

EQUITY

NOTE 7 - EQUITY

Authorized Stock

The Company’s authorized common stock consists of 500,000,000 shares with no par value.

Common Shares

On March 5, 2020, the Company issued 60,000,000 shares of restricted common stock valued at $93,000,000 to a corporation controlled by the Company’s CEO. (Note 4)

On March 23, 2020, principal amount of $9,000 from a convertible note was converted for 3,000,000 shares of common stock at stock trading price of $1.25 per share. (Note 6)

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RISKS AND UNCERTAINTIES

6 Months Ended

Jun. 30, 2021

RISKS AND UNCERTAINTIES

NOTE 8 - RISKS AND UNCERTAINTIES

In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease (COVID-19) outbreak a pandemic. This pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s results of operations and financial position at June 30, 2021. The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company in the future. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of these financial statements. These estimates may change, as new events occur and additional information is obtained.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2021

SUBSEQUENT EVENTS

NOTE 9 - SUBSEQUENT EVENTS

On June 20, 2021, a majority of stockholders of our company and board of directors approved a reverse stock split of our issued and outstanding shares of common stock on a basis of up to two hundred (200) old shares for one (1) new share of common stock. The reverse stock splits is expected to be approved by FINRA on August 19, 2021.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2020 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended December 31, 2020 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 10, 2021.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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.

Basic and Diluted Income (Loss) Per Share

The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

For the six months ended June 30, 2021 and 2020, respectively, the following convertible notes were excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive:

	June 30,		June 30,
	2021		2020
	(Shares)		(Shares)
Convertible notes payable		57,827,097		44,445,917

Recent accounting pronouncements

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its financial statements.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

Schedule of anti-dilutive securities excluded from computation of earnings per share

	June 30,		June 30,
	2021		2020
	(Shares)		(Shares)
Convertible notes payable		57,827,097		44,445,917

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PROMISSORY NOTES (Tables)

6 Months Ended

Jun. 30, 2021

PROMISSORY NOTES (Tables)

Schedule of promissory notes

		June 30,			December 31,
	Expiry Date	2021			2020			Interest Rate
Promissory Note - November 2017	Due on demand	$	2,160		$	2,160		60% per annum
Promissory Note - March 2018	3/31/2028		15,296			15,296		30% per annum
Promissory Note - June 2018	6/30/2028		12,249			12,249		30% per annum
Promissory Note - September 2018	9/30/2028		5,408			5,408		30% per annum
Promissory Note - December 2018	12/31/2028		6,137			6,137		30% per annum
Promissory Note - March 2019	3/31/2029		7,150			7,150		30% per annum
Promissory Note - June 2019	6/30/2029		10,105			10,105		30% per annum
Promissory Note - September 2019	9/30/2029		4,081			4,081		30% per annum
Promissory Note - December 2019	12/31/2029		6,900			6,900		30% per annum
			69,486			69,486
Less current portion of promissory note payable			(2,160	)		(2,160	)
Long-term promissory notes payable		$	67,326		$	67,326

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CONVERTIBLE NOTES (Tables)

6 Months Ended

Jun. 30, 2021

CONVERTIBLE NOTES (Tables)

Schedule of convertible notes

		June 30,			December 31,
	Expiry Date	2021			2020
Convertible Notes - July 2017	6/30/2022	$	116,000		$	116,000
Convertible Notes - January 2020	Due on demand		8,033			8,033
Convertible Notes - March 2020	Due on demand		4,768			4,768
Convertible Notes - June 2020	Due on demand		13,800			13,800
Convertible Notes - September 2020	Due on demand		7,307			7,307
Convertible Notes - December 2020	Due on demand		6,074			6,074
Less debt discount			(2,387	)		(3,584	)
			153,595			152,398
Less current portion of convertible note payable			(153,595	)		(39,982	)
Long-term convertible notes payable		$	-		$	112,416

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Convertible notes payable	57,827,097	44,445,917

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Due to related party	$ 24,100	$ 0
Director [Member]
Due to related party	$ 24,100

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PROMISSORY NOTES (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Promissory Note	$ 69,486	$ 69,486
Less current portion of promissory note payable	(2,160)	(2,160)
Long-term promissory notes payable	67,326	67,326
November 2017 [Member]
Promissory Note	$ 2,160	$ 2,160
Interest Rate per annum	60.00%	60.00%
Expiry Date	Due on demand	Due on demand
March 2018 [Member]
Promissory Note	$ 15,296	$ 15,296
Interest Rate per annum	30.00%	30.00%
Expiry Date	Mar. 31, 2028	Mar. 31, 2028
June 2018 [Member]
Promissory Note	$ 12,249	$ 12,249
Interest Rate per annum	30.00%	30.00%
Expiry Date	Jun. 29, 2028	Jun. 29, 2028
September 2018 [Member]
Promissory Note	$ 5,408	$ 5,408
Interest Rate per annum	30.00%	30.00%
Expiry Date	Sep. 29, 2028	Sep. 29, 2028
December 2018 [Member]
Promissory Note	$ 6,137	$ 6,137
Interest Rate per annum	30.00%	30.00%
Expiry Date	Dec. 30, 2028	Dec. 30, 2028
March 2019 [Member]
Promissory Note	$ 7,150	$ 7,150
Interest Rate per annum	30.00%	30.00%
Expiry Date	Mar. 30, 2029	Mar. 30, 2029
June 2019 [Member]
Promissory Note	$ 10,105	$ 10,105
Interest Rate per annum	30.00%	30.00%
Expiry Date	Jun. 30, 2029	Jun. 30, 2029
September 2019 [Member]
Promissory Note	$ 4,081	$ 4,081
Interest Rate per annum	30.00%	30.00%
Expiry Date	Sep. 30, 2029	Sep. 30, 2029
December 2019 [Member]
Promissory Note	$ 6,900	$ 6,900
Interest Rate per annum	30.00%	30.00%
Expiry Date	Dec. 31, 2029	Dec. 31, 2029

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PROMISSORY NOTES (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
PROMISSORY NOTES (Details Narrative)
Accrued interest on promissory notes	$ 56,687	$ 34,895

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CONVERTIBLE NOTES (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Less debt discount	$ (2,387)	$ (3,584)
Convertible note payable	153,595	152,398
Less current portion of convertible note payable	(153,595)	(39,982)
Long-term convertible notes payable	0	112,416
January 2020 [Member]
Convertible note payable	$ 8,033	$ 8,033
Expiry Date	Due on demand	Due on demand
March 2020 [Member]
Convertible note payable	$ 4,768	$ 4,768
Expiry Date	Due on demand	Due on demand
December 2020 [Member]
Convertible note payable	$ 6,074	$ 6,074
Expiry Date	Due on demand	Due on demand
June 2020 [Member]
Convertible note payable	$ 13,800	$ 13,800
Expiry Date	Due on demand	Due on demand
September 2020 [Member]
Convertible note payable	$ 7,307	$ 7,307
Expiry Date	Due on demand	Due on demand
July 2017 [Member]
Convertible note payable	$ 116,000	$ 116,000
Expiry Date	Jun. 30, 2022	Jun. 30, 2022

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CONVERTIBLE NOTES (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Mar. 31, 2020	Mar. 23, 2020	Mar. 04, 2020	Jan. 02, 2020
Convertible notes payable	$ 153,595		$ 152,398
Accrued interest payable	69,240		61,684
Original Discount	2,384		3,584
Amortization of debt discount	$ 1,197	$ 36,800
Conversion Of Stock Description	the conversion rates of the convertible notes remain unchanged while the Companys stock price increased by 200 times over the pre reverse stock split stock price.
Convertible notes bear interest rate	4.90%
Convertible Note	$ 153,595		152,398
Principal amount	153,595		39,982
Debt conversion, amount	$ 69,486		$ 69,486
Common stock Shares	63,140,557		63,140,557
Accrued interest	$ 125,927		$ 107,565
January 2020 [Member]
Convertible Note	$ 8,033		8,033
July 1, 2017 [Member]
Convertible notes bear interest rate	4.00%
Conversion Price per share	$ 0.005
Convertible note principal amount	$ 34,000
Principal amount	$ 136,000
Expiry date	Jun. 30, 2019
June 2020 [Member]
Convertible Note	$ 13,800		13,800
March 2020 [Member]
Convertible Note	$ 4,768		4,768
Convertible note principal amount					$ 9,000
Principal amount						$ 17,033
Common stock Shares					3,000,000
Accrued interest						$ 21,073
Unaffiliated Party [Member] | September 30 2020 [Member]
Convertible notes bear interest rate	30.00%
Convertible Note	$ 7,307
Conversion Price per share	$ 0.001
Debt instrument, debt discount amortized			7,307
Unaffiliated Party [Member] | January 2020 [Member]
Convertible notes bear interest rate							10.00%
Convertible Note							$ 17,033
Conversion Price per share							$ 0.003
Debt instrument, debt discount amortized			17,033
Promissory note							$ 17,033
Unaffiliated Party [Member] | June 2020 [Member]
Convertible notes bear interest rate	30.00%
Convertible Note	$ 13,800
Conversion Price per share	$ 0.001
Debt instrument, debt discount amortized			13,800
Unaffiliated Party [Member] | March 2020 [Member]
Convertible notes bear interest rate				30.00%
Conversion Price per share				$ 0.001
Debt instrument, debt discount amortized			4,768
Convertible note principal amount				$ 4,768
Unaffiliated Party [Member] | December 2020 [Member]
Convertible notes bear interest rate	30.00%
Convertible Note	$ 6,074
Conversion Price per share	$ 0.001
Debt instrument, debt discount amortized			$ 6,074
Four Non-affiliated Holders [Member] | January 2, 2018 [Member]
Conversion Price per share	$ 0.005
Debt conversion, amount	$ 4,000,000
Debt conversion, description	the four non affiliated holders of the convertible notes elected to convert $5,000 principal portion of their notes for 1,000,000 shares of common stock at $0.005 per share.

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EQUITY (Details Narrative) - USD ($)	1 Months Ended
	Mar. 23, 2020	Mar. 05, 2020	Jun. 30, 2021	Dec. 31, 2020
Common stock, shares authorized			500,000,000	500,000,000
Debt conversion, converted instrument, principle	$ 9,000
Debt conversion, converted instrument, shares	3,000,000
Debt conversion, shares price	$ 1.25
Chief Executive Officer [Member]
Debt conversion, converted instrument, shares		60,000,000
Common stock restricted value		$ 93,000,000

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SUBSEQUENT EVENTS (Details Narrative)	6 Months Ended
	Jun. 30, 2021
SUBSEQUENT EVENTS
Reverse stock split	a majority of stockholders of our company and board of directors approved a reverse stock split of our issued and outstanding shares of common stock on a basis of up to two hundred (200) old shares for one (1) new share of common stock.