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HUALE ACOUSTICS Corp
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<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 1 – ORGANIZATION AND NATURE OF
BUSINESS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Huale Acoustics Corporation (“the Company,”
“we,” “us,” or “our”) was incorporated in the State of Nevada on October 17, 2014.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 7, 2017 (the date of the “Change
of Control”), Jaeson Cayne (“Cayne”), on behalf of and as agent for PetsZX, Inc. has acquired control of Three
Million (3,000,000) restricted shares of the Company’s issued and outstanding common stock, representing approximately 83%
of the Company’s total issued and outstanding common stock, from Arusyak Sukiasyan (“Sukiasyan”), the former
officer and director of the Company, in exchange for $315,000 per the terms of a Stock Purchase Agreement by and between Cayne
and Sukiasyan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 31, 2017, the Company entered into an
agreement to acquire approximately 98.8% of the issued and outstanding shares of PetsZX, Inc., a company affiliated with Cayne.
This agreement was cancelled on September 1, 2017, pursuant to the terms of a Cancellation of Stock Purchase Agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 6, 2017, as a result of a private
transaction, the control block of voting stock of Huale Acoustics Corporation (formerly known as Illumitry Corp.) presented by
3,000,000 shares of common stock was transferred from Jaeson Cayne to a syndicated group of investors led by Ms. Xu Dantong (“Purchasers”).
The consideration paid for the Shares, which represents 82.75% of the issued and outstanding share capital of the Company on a
fully-diluted basis, was $342,000. The source of the cash consideration for the shares was personal funds of the Purchasers. In
connection with the transaction, Jaeson Cayne and Collin McMullen released the Company from all debts owed. The extinguishment
of the Company’s accounts payable and related party note payable was recorded as of the date of the transaction.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 17, 2017, our shareholders and board
of directors approved (1) change of our company name to Huale Acoustics Corporation and (2) an increase in the authorized shares
of capital stock to 800,000,000, with 700,000,000 common stock and 100,000,000 preferred stock (the “Amendments”).
The Amendments became effective with the State of Nevada on October 26, 2017. FINRA announced on November 6, 2017 that the new
name of Huale Acoustics Corporation was effective on November 7, 2017, and the new ticker symbol of “HYAS” was effective
on November 7, 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 4, 2018, Ms. Xu Dantong resigned
from her positions with the Company, including that of Chief Executive Officer, President, Secretary,Treasurer and Chairman of
Board of Directors of the Company. The resignation was not the result of any disagreement with the Company on any matter relating
to the Company’s operations, policies or practices. Ms. Xu Dantong has been the Chief Executive Officer, President, Secretary,
Treasure and Chairman of Board of Directors since October 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 4, 2018, the Board of Director
appointed Mr. Huang Zhicheng as new Chief Executive Officer, President, Secretary, Treasurer and Chairman of Board of Directors
of the Company.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – GOING CONCERN</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements
have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company
as a going concern. However, the Company had limited revenues and incurred losses as of June 30, 2018. The Company currently
has negative working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to
cover operating costs over an extended period of time. Due to these factors, there is substantial doubt about the
Company’s ability to continue as a going concern.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management anticipates that the Company will
be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position
itself so that it will be able to raise additional funds through the capital markets. In light of management’s efforts,
there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue
as a going concern.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 3 – BASIS OF PRESENTATION</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited financial statements
of Huale Acoustics Corporation have been prepared in accordance with generally accepted accounting principles for interim financial
information and the instructions to Form 10-Q and Article 8 of Regulation S-X. The results of operations for the interim period
ended June 30, 2018 shown in this report are not necessarily indicative of results. In the opinion of the Company’s management,
the information contained herein reflects all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation
of the Company’s results of operations, financial position and cash flows. The unaudited interim financial statements should
be read in conjunction with the audited financial statements in the Company’s Form 10-K for the year ended December 31, 2017
filed on May 30, 2018 and Management’s Discussion and Analysis of Financial Condition and Results of Operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The timely preparation of financial statements
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 of the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ significantly from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Discontinued Operations</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to the Change of Control, the operations
of the Company prior to the date of the Change of Control are reflected on the financial statements as discontinued operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
with the original maturities of three months or less to be cash equivalents. The Company has cash and cash equivalents of $0 and
$12,285 as of June 30, 2018 and June 30, 2017, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC Topic 740 for recording
the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial
statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset
or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset
or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred
tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more
likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes
in the period of change.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred income taxes may arise from temporary
differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred
taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate.
Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current
depending on the periods in which the temporary differences are expected to reverse.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies a more-likely-than-not
recognition threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater
than fifty percent likelihood of being sustained upon examination by the taxing authorities. As of December 31, 2018 the Company
reviewed its tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood
of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue in accordance
with ASC 605 “Revenue Recognition.” The Company recognizes revenue when products are fully delivered or services have
been provided and collection is reasonably assured.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820 “Fair Value Measurements and
Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy
prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the
market.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of the Company’s loan
from shareholder approximates its fair value due to their short-term maturity.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock-Based Compensation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records stock based compensation
in accordance with the guidance in ASC 718 which requires the Company to recognize expenses related to the fair value of its employee
stock option awards. This requires that such transactions be accounted for using a fair-value-based method. The Company recognizes
the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for equity instruments
issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718-10 and the conclusions
reached by the ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated
fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for
consideration other than employee services is determined on the earliest of a performance commitment or completion of performance
by the provider of goods or services as defined by ASC 505-50.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Net Loss Per Share</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC 260 to account for
the loss per share. Basic loss per common share calculations are determined by dividing net loss by the weighted average number
of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing
net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when
common stock equivalents, if any, are anti-dilutive they are not considered in the computation. There were no potentially dilutive
debt or equity instruments issued or outstanding as of June 30, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 4 – RELATED PARTY TRANSACTIONS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2018 and December 31, 2017 the
Company had loans payable to Ms. Xu Dantong, our former sole director of $32,545 and $21,346, respectively This loan was unsecured,
non-interest bearing and due on demand. The imputed interest on this note was deemed immaterial.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 5 – FIXED ASSETS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2018 and December 31, 2017
the Company had no fixed assets.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 6 – NOTES PAYABLE</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2018, the Company had a note
payable to Ms. Xu Dantong, the Company’s former Chief Executive Officer and controlling shareholder, in the amount of $32,545.
This loan is unsecured, non-interest bearing and due on demand. As of December 31, 2017, the Company had a note payable of $21,346</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 7 – STOCKHOLDERS’ EQUITY</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has 700,000,000, $0.001 par value
shares of common stock authorized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were 3,625,000 shares of common stock
issued and outstanding as at December 31, 2017 and June 30, 2018.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 8 – COMMITMENTS AND CONTINGENCIES</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Legal Matters</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From time to time, the Company may become
subject to legal proceedings, claims and litigation arising in the ordinary course of its business. The Company is not currently
a party to any material legal proceedings, nor is the Company aware of any other pending or threatened litigation that would have
a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation
be resolved unfavorably.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 10 – RECLASSIFICATION OF DISCONTINUED
OPERATIONS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have reclassified certain prior-period
amounts to conform to the current-year’s presentation. The reclassifications relate to operations which have been discontinued
as of the current period due to the change in control.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 9 – SUBSEQUENT EVENTS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 4, 2018, Ms. Xu Dantong resigned
from the positions with the Company, including that of Chief Executive Officer, President, Secretary, Treasurer and Chairman of
Board of Directors of the Company. The resignation was not the result of any disagreement with the Company on any matter relating
to the Company’s operations, policies or practices. Ms. Xu Dantong has been the Chief Executive Officer, President, Secretary,
Treasure and Chairman of Board of Directors since October 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 4, 2018, the Board of Director
appointed Mr. Huang Zhicheng as new Chief Executive Officer, President, Secretary, Treasurer and Chairman of Board of Directors
of the Company.</p>
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<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The timely preparation of financial statements
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 of the financial statements and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ significantly from those estimates.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Discontinued Operations</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to the Change of Control, the operations
of the Company prior to the date of the Change of Control are reflected on the financial statements as discontinued operations.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
with the original maturities of three months or less to be cash equivalents. The Company has cash and cash equivalents of $0 and
$12,285 as of June 30, 2018 and June 30, 2017, respectively.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC Topic 740 for recording
the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial
statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset
or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset
or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred
tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more
likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes
in the period of change.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred income taxes may arise from temporary
differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred
taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate.
Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current
depending on the periods in which the temporary differences are expected to reverse.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies a more-likely-than-not
recognition threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater
than fifty percent likelihood of being sustained upon examination by the taxing authorities. As of December 31, 2018 the Company
reviewed its tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood
of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820 “Fair Value Measurements and
Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy
prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the
market.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of the Company’s
loan from shareholder approximates its fair value due to their short-term maturity.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock-Based Compensation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records stock based compensation
in accordance with the guidance in ASC 718 which requires the Company to recognize expenses related to the fair value of its employee
stock option awards. This requires that such transactions be accounted for using a fair-value-based method. The Company recognizes
the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for equity instruments
issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718-10 and the conclusions
reached by the ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated
fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for
consideration other than employee services is determined on the earliest of a performance commitment or completion of performance
by the provider of goods or services as defined by ASC 505-50.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Net Loss Per Share</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC 260 to account for
the loss per share. Basic loss per common share calculations are determined by dividing net loss by the weighted average number
of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing
net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when
common stock equivalents, if any, are anti-dilutive they are not considered in the computation. There were no potentially dilutive
debt or equity instruments issued or outstanding as of June 30, 2018.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
-0.01
-0.01
-0.01
11458
5208
6250
HYAS
100353
100353
-1558
-1196
3625000
3625000
3625000
3625000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue in accordance
with ASC 605 “Revenue Recognition.” The Company recognizes revenue when products are fully delivered or services have
been provided and collection is reasonably assured.</p>
315000
342000
800000000
Less than a 50% likelihood
12285
4
-4
1196
3468
29895
88646
1558
1196
21346
32545
-0.01
-17453
-49677
6502
-5895