10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2020

OR

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

For the transition period from ______________ to ______________ 

Commission File Number: 333-231172

EVIL EMPIRE DESIGNS, INC

(Exact Name of Registrant as Specified in Its Charter)

Nevada	45-5530035
(State of Incorporation)	(IRS Employer Identification No.)
441 Eastgate Rd, Henderson, NV	89011
(Address of Principal Executive Offices)	(Zip Code)

(725) 666-3700

(Registrant’s Telephone Number) 

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

Title of each class Trading Symbol(s) Name of each exchange on which registered

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) 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 and post such files). Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated file, non-accelerated filer, or a smaller reporting company.

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 ☒

As of August 18, 2020, the Registrant had 8,033,000 shares of common stock issued and outstanding.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statement (Unaudited)	4
	Balance Sheets as of June 30, 2020 and December 31, 2019	4
	Unaudited Statements of Operations for the Three and Six Months Ended June 30, 2020 and 2019	5
	Unaudited Statements of Shareholders’ Deficit for the Six Months Ended June 30, 2020 and 2019	6
	Unaudited Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019	7
	Notes to Unaudited Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risks	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 and Use of Proceeds	15
Item 3.	Default upon Senior Securities	15
Item 4.	Mine Safety Information	15
Item 5.	Other Information	15
Item 6.	Exhibits	16
SIGNATURES		17

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q of Evil Empire Designs, Inc., a Nevada corporation (the “Company”), contains “forward-looking statements,” as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (i) the development and protection of our brands and other intellectual property, (ii) the need to raise capital to meet business requirements, (iii) significant fluctuations in marketing expenses, (iv) the ability to achieve and expand significant levels of revenues, or recognize net income, from the sale of our products, (v) the Company’s ability to conduct the business if there are changes in laws, regulations, or government policies related to the motorcycle or motorcycle parts industry, (vi) management’s ability to attract and maintain qualified personnel necessary for the development and commercialization of its planned products, and (vii) other information that may be detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission (“SEC”).

Our management has included projections and estimates in this Form 10-Q, which are based primarily on management’s experience in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information filed by our competitors with the SEC or otherwise publicly available. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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PART I – FINANCIAL INFORMATION

ITEM: 1 FINANCIAL STATEMENT

EVIL EMPIRE DESIGNS, INC

BALANCE SHEETS

(Unaudited)

	June 30, 2020			December 31, 2019
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	6,404		$	19,097
Inventory		--			11,105
Other asset					73
Total current assets		6,404			30,275
Fixed assets
Fixed assets, net of depreciation of $25,319 and $21,608		10,720			14,514
Other assets, net of amortization of $ 12,503 and $11,462		83			2,167
Investment		100,000			--
Total assets	$	117,207		$	46,956
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$	88,674		$	79,297
Convertible notes payable		266,669			181,669
Total current liabilities		355,343			260,966
Stockholders’ deficit:
Preferred stock, $0.001 par value 25,000,000 authorized none are issued or outstanding		-			-
Common stock, $0.001 par value 100,000,000 authorized, 8,033,000, and 7,767,500 issued and outstanding, respectively:		8,033			7,768
Additional paid-in capital		177,782			127,097
Accumulated deficit		(423,951	)		(348,875	)
Total stockholders’ deficit		(238,136	)		(214,010	)
Total liabilities and stockholders’ deficit	$	117,207		$	46,956

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

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EVIL EMPIRE DESIGNS, INC.

STATEMENTS OF OPERATIONS

As of June 30,

(Unaudited)

	Three Months						Six Months
	2020			2019			2020			2019
Revenue	$	1,844		$	332		$	3,765		$	460
Cost of goods		--			--			--			--
Operating expenses:
General and administrative expense		29,267			9,283			52,567			22,493
Depreciation and amortization		2,918			2,606			5,878			5,211
Total operating expenses		32,185			11,889			58,445			27,704
Income (loss) from operations		(30,341	)		(11,557	)		(54,680	)		(27,244	)
Other income (expense):
Other income		--			--			60			--
Loss on asset		(11,105	)		--			(11,105	)
Interest expense		(4,662	)		(4,046	)		(9,350	)		(7,777	)
Total other income (expense)		(15,767	)		(4,046	)		(20,395	)		(7,777	)
Net income (loss)	$	(46,108	)	$	(15,603	)		(75,075	)	$	(35,021	)
Net income (loss) per share, basic and diluted	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.03	)
Weighted average number of shares outstanding, basic and diluted		7,862,569			7,275,000			7,837,386			7,275,000

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

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EVIL EMPIRE DESIGNS, INC

STATEMENTS OF STOCKHOLDERS’ DEFICIT

(Unaudited)

					Additional					Total
	Common Stock				Paid-In		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Deficit
THREE MONTHS JUNE 30, 2019
Balance at March 31, 2019		7,275,000	$	7,275	$	29,100	$	(222,575	)	$	(186,200	)
Net loss		--		--		--		(15,603	)		(15,603	)
Balance at June 30, 2019		7,275,000		7,275		29,100		(238,178	)		(201,803	)
THREE MONTHS JUNE 30, 2020
Balance at March 31, 2020		7,819,500		7,820		137,445		(377,843	)		(232,578	)
Common stock issued for cash		213,250		213		40,337		--			40,550
Net loss		--		--		--		(46,108	)		(46,108	)
Balance at June 30, 2020		8,032,750		8,033		177,782		(423,951	)		(238,136	)
SIX MONTHS JUNE 30, 2019
Balance at December 31, 2018		7,275,000		7,275		29,100		(203,157	)		(166,782	)
Net loss		--		--		--		(35,021	)		(35,021	)
Balance at June 30, 2019		7,275,000		7,275		29,100		(238,178	)		(201,803	)
SIX MONTHS JUNE 30, 2020
Balance at December 31, 2019		7,767,500		7,768		127,097		(348,875	)		(214,010	)
Common stock issued for cash		262,250		263		50,685		--			50,950
Net loss		--		--		--		(75,075	)		(75,075	)
Balance at June 30, 2020		8,032,750	$	8,033	$	177,782	$	(423,951	)	$	(238,136	)

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

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EVIL EMPIRE DESIGNS, INC

STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
	2020			2019
Cash flows from operating activities:
Net (loss)	$	(75,075	)	$	(35,021	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		5,878			5,211
Changes in operating assets and liabilities:
Accounts receivable		73			(3,956	)
Inventory		11,105
Accounts payable and accrued expenses		9,377			7,777
Net cash used in operating activities		(48,643	)		(25,989	)
Cash Flows from in investing activity
Investment		(60,000	)		--
Net cash used in investing activities		(60,000	)		--
Cash flows from financing activities:
Common stock issued for cash		50,950
Proceeds from notes payable		45,000			27,520
Net cash provided by financing activities		95,950			27,520
Net increase (decrease) in cash		(12,693	)		1,531
Cash and cash equivalents – beginning of year		19,097			9,784
Cash and cash equivalents – end of period	$	6,404		$	11,315
SUPPLEMENT DISCLOSURES:
Interest paid	$	--		$	--
Income taxes paid	$	--		$	--
NON CASH TRANSACTIONS
Common stock issued for debt	$	--		$	--

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

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EVIL EMPIRE DESIGNS, INC

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - NATURE OF BUSINESS

Evil Empire Designs, Inc., (formerly Jaycor Resources Inc.) (Jaycor) was organized on December 23, 2009 under the name US Terra Energy Corp in the State of Nevada. The Company was organized to explore investment opportunities in the energy business. In June 2016, the Company changed its business model to making and selling accessories to the motorcycle market.

The Company authorized 125,000,000 shares consisting of 100,000,000 of common stock with a par value of $0.001 per share and 25,000,000 shares of preferred stock with a par value of $0.001 per share.

On April 24, 2012, the Company filed a Certificate of Amendment amending the Articles of Incorporation changing the name of the Corporation to Jaycor Resources, Inc.

On September 12, 2016, the Company filed a Certificate of Amendment amending the Articles of Incorporation changing the name of the Corporation to Evil Empire Designs, Inc.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for financial information and reflect all adjustments which, in the opinion of management, are necessary for a fair presentation.

The unaudited interim financial statements of the Company for the three and six months ended June 30, 2020 and 2019 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position and the results of operations for the interim periods presented herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any subsequent quarters or for an entire year.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of June 30, 2020 the Company did not have any cash equivalents.

Accounts receivable

Accounts receivable are carried at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable include receivables from customers that have received their product order. Bad debt expense is a recognition of uncollectable receivables based on past years’ experience and management’s estimate of likely losses for the year. No allowance for bad debt was considered necessary as of June 30, 2020 and 2019, respectively.

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Inventory

Inventories are stated at the lower or cost of market using the first-in; first-out (FIFO) cost method of accounting. The inventory consists of raw materials used to make various products for sale.

Revenue recognition

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Property and Equipment

Property and equipment is recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the expected useful life of the asset (3 to 5 years), beginning when the asset is available and ready for use. Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment are capitalized, while expenditures that do not, such as repairs and maintenance, are expensed as incurred. For the six months ended June 30, 2020 and depreciation and amortization expense totaled $5,857 and $5,211.

Impairment of long-lived assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical-cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is estimated based upon either discounted cash flow analysis or estimated salvage value. As of June 30, 2020 no impairment losses have been recognized.

Income Taxes

Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized.

The Company accounts for income taxes under the provisions of Financial Accounting Standards Board) Accounting Standards Codification 740, Accounting for Income Taxes. It prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the Company has applied a more-likely-than-not recognition threshold for all tax uncertainties. The guidance only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the various taxing authorities.

The Company classifies penalties and interest related to unrecognized tax benefits as income tax expense in the Statements of Operations.

Basic and diluted net loss per share

Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. Diluted loss per share calculations includes the dilutive effect of common stock. Basic and diluted net loss per share is the same due to the absence of common stock equivalents.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and shareholder loans. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

9

Financial assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:

Level 1 — Quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

Level 3 — Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Related Parties

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Recent Accounting Pronouncements

Because the Company has been recently reorganized and has not yet transacted any business, the new accounting standards have no significant impact on the financial statements and related disclosures. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

NOTE 3 - GOING CONCERN

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has an accumulated deficit of $423,951 as of June 30, 2020 and $348,875 as of December 31, 2019. The Company is establishing nominal source of revenue to cover its operating costs. These factors raise substantial doubt as to the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

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NOTE 4 - PROPERTY AND EQUIPMENT

Fixed assets including molds, printing equipment and a motorcycle for use in making products it sells. The value of the assets when acquired were $32,117. During the year ended December 31, 2019 the Company acquired $4,006 in fixed assets. The assets are being depreciated over a 3 year life. Property and equipment consisted of the following at June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Property and equipment	$	36,122	$	36,122
Less: accumulation depreciation		25,319		21,608
Net property and equipment		10,803		14,514

Depreciation expense totaled $3,794 and $3,127 for the six months periods ended June 30, 2020 and 2019, respectively.

NOTE 5 - OTHER ASSETS

On November 15, 2016, the Company issued 2,500,000 shares of common stock to a related party for certain designs and assets. The assets were accounted for at the transferor’s carry over basis of $7,465 on the acquisition date, due to the transferor being in control of Evil Empire at the date of transfer. The assets are being amortized over 36 months from date of completion which was prior to the date of acquisition. As of June 30, 2020 the net value of the asset is $83.

NOTE 6 - RELATED PARTY TRANSACTIONS

During the six months period ended June 30, 2020 and 2019 the Company paid compensation to a related party of $18,900 and $5,399, respectively.

NOTE 7 - EQUITY 

During the six months ended June 30, 2020 the Company issued 262,250 shares of common stock with a value of $50,950 for cash

NOTE 8 - CONVERTIBLE NOTES

On May 24, 2018 Provencal Investments Limited, the purchaser of the note from Capilano Capital Inc. converted $1,125 of convertible debt into 225,000 shares of common stock. As of March 31, 2019 the outstanding balance of the note was $28,875 plus interest of $30,875 for a total of $49,403.

On February 2, 2018, the Company issued a one year $3,000 Convertible note Black Ridge Holdings Inc. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share. The note is in default.

On March 22, 2018, the Company issued a one year $3,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share. The note is in default.

On April 13, 2018, the Company issued a one year $3,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On May 15, 2018, the Company issued a one year $2,500 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On June 20, 2018, the Company issued a one year $2,500 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On June 28, 2018, the Company issued a one year $2,000 Convertible note to Blue Diamond Equities. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On January 9, 2019, the Company issued a one year $4,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On February 20, 2019, the Company issued a one year $3,500 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

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On March 19, 2019, the Company issued a one year $6,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On May 5, 2019, the Company issued a one year $4,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On May 8, 2019, the Company issued a one year $2,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On June 5, 2019, the Company issued a one year $8,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On July 12, 2019, the Company issued a one year $5,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On July 24, 2019, the Company issued a one year $5,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On August 26, 2019, the Company issued a one year $4,500 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On September 18, 2019, the Company issued a one year $1,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

As of June 30, 2020 the Company had $266,669 of convertible debt plus interest of $76,233 for total of $342,902.

The Company determined the convertible note does not meets the requirements for derivative liability accounting as described in ASC 815. As the shares of the Company do not have a value other than par, are not readily convertible to cash at the date of issuance and are not registered to be traded. Additionally, there is no beneficial conversion feature described in ASC 470 on the date of issuance.

NOTE 9 -NOTES PAYABLE

On April 14, 2020, the Company issued a one year $40,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 12% per annum.

On June 17, 2020, the Company issued a one year $3,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 12% per annum.

On June 30, 2020, the Company issued a one year $2,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum.

NOTE 10 – INVESTMENTS

On December 12, 2019, the Company signed a memorandum of understanding with Top of the Line Design, LLC whereas the Company will purchase 100 % of Top of the Line for $250,000 and advance Top of the Line $350,000 in working capital as further expanded in a definitive agreement. The Company made a good faith deposit to Top of the Line of $40,000 at the signing of the agreement and an additional $60,000 during the six months ending June 30, 2020. The agreement is effective for 90 days and if terminate by both parties the deposits were to be terminated. As of June 30, 2020 the agreement was still in effect.

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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERTIONS

Evil Empire Designs, Inc., (formerly Jaycor Resources Inc.) (Jaycor) was organized on December 23, 2009 under the name US Terra Energy Corp in the State of Nevada. The Company was organized to explore investment opportunities in the energy business. In June 2016, the Company changed its business model to making and selling accessories to the motorcycle market.

The Company authorized 125,000,000 shares consisting of 100,000,000 of common stock with a par value of $0.001 per share and 25,000,000 shares of preferred stock with a par value of $0.001 per share.

On April 24, 2012, the Company filed a Certificate of Amendment amending the Articles of Incorporation changing the name of the Corporation to Jaycor Resources, Inc.

On September 12, 2016, the Company filed a Certificate of Amendment amending the Articles of Incorporation changing the name of the Corporation to Evil Empire Designs, Inc.

Results of Operations

The Company recorded revenue of $3,765 and $1,844 during the three and six month periods ended June 30, 2020 and $460 and $332 for the same periods in 2019, respectively.

General and administrative expenses for the six and three month periods ended June 30, 2020 and 2019 were $52,567 and $29,267 compared to $22,493 and $9,283 for the same periods in 2019, respectively. Depreciation and amortization for the six and three month periods was $5,878 and $2,918 compared to $5,211 and $2,606 for the same periods in 2019.

Total other expense incurred in the three and six month periods ended June 30, 2020 $15,767 and $20,395, compared to $4,046 and $7,777 in the same periods in 2019, respectively.

For the three and six month periods ended June 30, 2020, our net loss was $46,108 and $75,075 compared to a net losses of $15,603 and $25,021 for the same periods in 2019. The difference pertains to h general & administrative expense in 2020 over 2019.

Liquidity and Capital Resources

There are no agreements or understandings about future loans by or with the officers, directors, principals, affiliates, or shareholders of the Company. The Company will continue to raise outside capital through loans, equity sales and possible licensing agreements. These factors raise substantial doubt about the company’s ability to continue as a going concern.

At June 30, 2020, the Company had negative working capital of $348,939. Current assets consist of cash of 6,404. Current liabilities as of the same date were $355,343 consisting of convertible debt of $266,669 with accounts payable and accrued liabilities $88,674.

Net cash used in operating activities in the six months period ended June 30, 2020 was $48,643 compared to net cash used of $25,989 in the same period in 2019 The variance between the same periods in 2019 relates mainly to a higher net loss in 2020 over 2019.

Net cash used in investing activities was $60,000 for the six months ended June 30, 2020 and none in the same period in 2019.

13

Net cash provided by financing activities for the six month period ended June 30, 2020 was $95,950 compared to $27,520 in the same period in 2019. Cash provided was a result common stock issued for cash of $50,090 and convertible notes of $45,000 issued in 2020 and $27,520 of convertible notes for the same period in 2019.

As of June 30, 2020, the Company had total assets of $117,207 and total liabilities of $355,343. Accumulated deficit as of June 30, 2020 was $423,951. This compares to an accumulated deficit of $348,875 as of December 31, 2019. Liabilities increased in 2020 due mainly to an increase in accounts payables and accrued expense during this period versus the same period in 2019.

NEED FOR ADDITIONAL FINANCING:

The Company recently filed as S-1 registration statement for the sale of up to 1,000,000 share of its common stock. The maximum amount raised through the sale of the shares would be $200,000. The Company estimates their capital needs to be $100,000 per year thus the maximum amount with meet its capital needs for 2 years.

Off-Balance Sheet Arrangements

We had no off-balance sheet arrangements or guarantees of third party obligations at June 30, 2020.

Inflation

We believe that inflation has not had a significant impact on our operations since inception.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 3.

ITEM 4: CONTROLS AND PROCEDURES

Under the supervision and the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation as of June 30, 2020, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were not effective as of June 30, 2020. Such conclusion reflects the identification of material weakness as follows: (1) lack of accounting proficiency of our chief executive officer who is our sole officer and our principal accounting officer which has resulted in a reliance on part-time outside consultants to perform substantially all of our accounting functions, (2) a lack of adequate segregation of duties and necessary corporate accounting resources in our financial reporting process and accounting function, and (3) lack of control procedures that include multiple levels of review. Until we can remedy these material weaknesses, we have engaged third party consultants and accounting firm to assist with financial reporting.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the six months ended June 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

14

PART II – OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

The Company is not currently subject to any legal proceedings.

ITEM 1A: RISK FACTORS

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 1A.

ITEM 2: SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the six months ended June 30, 2020 the Company issued 262,250 shares of common stock with a value of $50,950 for cash.

ITEM 3: DEFAULT UPON SENIOR SECURITIES 

None.

ITEM 4: MINE SAFETY INFORMATION

None.

ITEM 5: OTHER INFORMATION

None.

15

ITEM 6: EXHIBITS

(a) Exhibits required by Item 601 of Regulation SK.:

Number	Description
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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

16

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	EVIL EMPIRE DESIGNS, INC.
Dated: August 18, 2020	By:	/s/ Sheila Cunningham
		Sheila Cunningham
		President and Chief Executive Officer, Secretary and Treasurer (principal executive officer, principal financial officer, and principal accounting officer)

17

EX-31.1

EXHIBIT 31.1

OFFICER’S CERTIFICATE PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Sheila Cunningham, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q Evil Empire Designs, Inc. (the “registrant”) for the period ending June 30, 2020.
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.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d – 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the 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 to the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our 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.

Dated: August 18, 2020

/s/ Sheila Cunningham                                   

Sheila Cunningham

President

(Principal Executive Officer)

(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATE PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report (the “Report”) on the Form 10-Q of Evil Empire Designs, Inc. (the “Company”) for the period ended June 30, 2020, as filed with the Securities and Exchange Commission on the date hereof, I, Sheila Cunningham , Chief Executive Officer and Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

1. The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities and Exchange Act of 1934 (15 U.S.C. 78m or 78o (d)), as amended; and

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

Date: August 18, 2020

/s/ Sheila Cunningham                                  

Sheila Cunningham

President

(Principal Executive Officer)

(Principal Financial Officer)

XML

Cover - shares	6 Months Ended
	Jun. 30, 2020	Aug. 18, 2020
Cover [Abstract]
Entity Registrant Name	Evil Empire Designs, Inc.
Entity Central Index Key	0001759424
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	true
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2020
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		8,033,000
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

XML

BALANCE SHEETS - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 6,404	$ 19,097
Inventory	0	11,105
Other asset		73
Total current assets	6,404	30,275
Fixed assets
Fixed assets, net of depreciation of $25,319 and $21,608	10,720	14,514
Other assets, net of amortization of $ 12,503 and $11,462	83	2,167
Investment	100,000	0
Total assets	117,207	46,956
Current liabilities:
Accounts payable and accrued expenses	88,674	79,297
Convertible notes payable	266,669	181,669
Total current liabilities	355,343	260,966
Stockholders' deficit:
Preferred stock, $0.001 par value 25,000,000 authorized none are issued or outstanding	0	0
Common stock, $0.001 par value 100,000,000 authorized, 8,033,000, and 7,767,500 issued and outstanding, respectively:	8,033	7,768
Additional paid-in capital	177,782	127,097
Accumulated deficit	(423,951)	(348,875)
Total stockholders' deficit	(238,136)	(214,010)
Total liabilities and stockholders' deficit	$ 117,207	$ 46,956

XML

BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Fixed assets
Fixed assets, net of depriciation	$ 25,319	$ 21,608
Other assets, net of depriciation	$ 12,503	$ 11,462
Stockholders' deficit
Preferred stock, shares par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	8,033,000	7,767,500
Common stock, shares outstanding	8,033,000	7,767,500

XML

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
STATEMENTS OF OPERATIONS (Unaudited)
Revenue	$ 1,844	$ 332	$ 3,765	$ 460
Cost of goods	0	0	0	0
Operating expenses:
General and administrative expense	29,267	9,283	52,567	22,493
Depreciation and amortization	2,918	2,606	5,878	5,211
Total operating expenses	32,185	11,889	58,445	27,704
Income (loss) from operations	(30,341)	(11,557)	(54,680)	(27,244)
Other income (expense):
Other income	0	0	60	0
Loss on asset	(11,105)	0	(11,105)
Interest expense	(4,662)	(4,046)	(9,350)	(7,777)
Total other income (expense)	(15,767)	(4,046)	(20,395)	(7,777)
Net income (loss)	$ (46,108)	$ (15,603)	$ (75,075)	$ (35,021)
Net income (loss) per share, basic and diluted	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.03)
Weighted average number of shares outstanding, basic and diluted	7,862,569	7,275,000	7,837,386	7,275,000

XML

STATEMENTS OF STOCKHOLDERS DEFICIT (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance, shares at Dec. 31, 2018		7,275,000
Balance, amount at Dec. 31, 2018	$ (166,782)	$ 7,275	$ 29,100	$ (203,157)
Net loss	(35,021)	$ 0	0	(35,021)
Balance, shares at Jun. 30, 2019		7,275,000
Balance, amount at Jun. 30, 2019	(201,803)	$ 7,275	29,100	(238,178)
Balance, shares at Mar. 31, 2019		7,275,000
Balance, amount at Mar. 31, 2019	(186,200)	$ 7,275	29,100	(222,575)
Net loss	(15,603)	$ 0	0	(15,603)
Balance, shares at Jun. 30, 2019		7,275,000
Balance, amount at Jun. 30, 2019	(201,803)	$ 7,275	29,100	(238,178)
Balance, shares at Dec. 31, 2019		7,767,500
Balance, amount at Dec. 31, 2019	(214,010)	$ 7,768	127,097	(348,875)
Net loss	$ (75,075)	$ 0	0	(75,075)
Common stock issued for cash, shares	262,250	262,250
Common stock issued for cash, amount	$ 50,950	$ 263	50,685	0
Balance, shares at Jun. 30, 2020		8,032,750
Balance, amount at Jun. 30, 2020	(238,136)	$ 8,033	177,782	(423,951)
Balance, shares at Mar. 31, 2020		7,819,500
Balance, amount at Mar. 31, 2020	(232,578)	$ 7,820	137,445	(377,843)
Net loss	(46,108)	$ 0	0	(46,108)
Common stock issued for cash, shares		213,250
Common stock issued for cash, amount	40,550	$ 213	40,337	0
Balance, shares at Jun. 30, 2020		8,032,750
Balance, amount at Jun. 30, 2020	$ (238,136)	$ 8,033	$ 177,782	$ (423,951)

XML

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net (loss)	$ (46,108)	$ (15,603)	$ (75,075)	$ (35,021)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,918	2,606	5,878	5,211
Changes in operating assets and liabilities:
Accounts receivable			73	(3,956)
Inventory			11,105
Accounts payable and accrued expenses			9,377	7,777
Net cash used in operating activities			(48,643)	(25,989)
Cash Flows from in investing activity
Investment			(60,000)	0
Net cash used in investing activities			(60,000)	0
Cash flows from financing activities:
Common stock issued for cash			50,950
Proceeds from notes payable			45,000	27,520
Net cash provided by financing activities			95,950	27,520
Net increase (decrease) in cash			(12,693)	1,531
Cash and cash equivalents - beginning of year			19,097	9,784
Cash and cash equivalents - end of period	$ 6,404	$ 11,315	6,404	11,315
SUPPLEMENT DISCLOSURES:
Interest paid			0	0
Income taxes paid			0	0
NON CASH TRANSACTIONS
Common stock issued for debt			$ 0	$ 0

XML

NATURE OF BUSINESS

6 Months Ended

Jun. 30, 2020

NATURE OF BUSINESS

NOTE 1 - NATURE OF BUSINESS

Evil Empire Designs, Inc., (formerly Jaycor Resources Inc.) (Jaycor) was organized on December 23, 2009 under the name US Terra Energy Corp in the State of Nevada. The Company was organized to explore investment opportunities in the energy business. In June 2016, the Company changed its business model to making and selling accessories to the motorcycle market.

The Company authorized 125,000,000 shares consisting of 100,000,000 of common stock with a par value of $0.001 per share and 25,000,000 shares of preferred stock with a par value of $0.001 per share.

On April 24, 2012, the Company filed a Certificate of Amendment amending the Articles of Incorporation changing the name of the Corporation to Jaycor Resources, Inc.

On September 12, 2016, the Company filed a Certificate of Amendment amending the Articles of Incorporation changing the name of the Corporation to Evil Empire Designs, Inc.

XML

SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2020

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for financial information and reflect all adjustments which, in the opinion of management, are necessary for a fair presentation.

The unaudited interim financial statements of the Company for the three and six months ended June 30, 2020 and 2019 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position and the results of operations for the interim periods presented herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any subsequent quarters or for an entire year.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of June 30, 2020 the Company did not have any cash equivalents.

Accounts receivable

Accounts receivable are carried at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable include receivables from customers that have received their product order. Bad debt expense is a recognition of uncollectable receivables based on past years’ experience and management’s estimate of likely losses for the year. No allowance for bad debt was considered necessary as of June 30, 2020 and 2019, respectively.

Inventory

Inventories are stated at the lower or cost of market using the first-in; first-out (FIFO) cost method of accounting. The inventory consists of raw materials used to make various products for sale.

Revenue recognition

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Property and Equipment

Property and equipment is recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the expected useful life of the asset (3 to 5 years), beginning when the asset is available and ready for use. Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment are capitalized, while expenditures that do not, such as repairs and maintenance, are expensed as incurred. For the six months ended June 30, 2020 and depreciation and amortization expense totaled $5,857 and $5,211.

Impairment of long-lived assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical-cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is estimated based upon either discounted cash flow analysis or estimated salvage value. As of June 30, 2020 no impairment losses have been recognized.

Income Taxes

Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized.

The Company accounts for income taxes under the provisions of Financial Accounting Standards Board) Accounting Standards Codification 740, Accounting for Income Taxes. It prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the Company has applied a more-likely-than-not recognition threshold for all tax uncertainties. The guidance only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the various taxing authorities.

The Company classifies penalties and interest related to unrecognized tax benefits as income tax expense in the Statements of Operations.

Basic and diluted net loss per share

Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. Diluted loss per share calculations includes the dilutive effect of common stock. Basic and diluted net loss per share is the same due to the absence of common stock equivalents.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and shareholder loans. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Financial assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:

Level 1 — Quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

Level 3 — Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Related Parties

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Recent Accounting Pronouncements

Because the Company has been recently reorganized and has not yet transacted any business, the new accounting standards have no significant impact on the financial statements and related disclosures. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

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GOING CONCERN

6 Months Ended

Jun. 30, 2020

GOING CONCERN

NOTE 3 - GOING CONCERN

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has an accumulated deficit of $423,951 as of June 30, 2020 and $348,875 as of December 31, 2019. The Company is establishing nominal source of revenue to cover its operating costs. These factors raise substantial doubt as to the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

XML

PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2020

PROPERTY AND EQUIPMENT

NOTE 4 - PROPERTY AND EQUIPMENT

Fixed assets including molds, printing equipment and a motorcycle for use in making products it sells. The value of the assets when acquired were $32,117. During the year ended December 31, 2019 the Company acquired $4,006 in fixed assets. The assets are being depreciated over a 3 year life. Property and equipment consisted of the following at June 30, 2020 and December 31, 2019:

	June, 2020		December 31, 2019
Property and equipment	$	36,122	$	36,122
Less: accumulation depreciation		25,319		21,608
Net property and equipment		10,803		14,514

Depreciation expense totaled $3,794 and $3,127 for the six months periods ended June 30, 2020 and 2019, respectively.

XML

OTHER ASSETS

6 Months Ended

Jun. 30, 2020

OTHER ASSETS

NOTE 5 - OTHER ASSETS

On November 15, 2016, the Company issued 2,500,000 shares of common stock to a related party for certain designs and assets. The assets were accounted for at the transferor’s carry over basis of $7,465 on the acquisition date, due to the transferor being in control of Evil Empire at the date of transfer. The assets are being amortized over 36 months from date of completion which was prior to the date of acquisition. As of June 30, 2020 the net value of the asset is $83.

XML

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2020

RELATED PARTY TRANSACTIONS

NOTE 6 - RELATED PARTY TRANSACTIONS

During the six months period ended June 30, 2020 and 2019 the Company paid compensation to a related party of $18,900 and $5,399, respectively.

XML

EQUITY

6 Months Ended

Jun. 30, 2020

EQUITY

NOTE 7 - EQUITY

During the six months ended June 30, 2020 the Company issued 262,250 shares of common stock with a value of $50,950 for cash.

XML

CONVERTIBLE NOTES

6 Months Ended

Jun. 30, 2020

CONVERTIBLE NOTES

NOTE 8 - CONVERTIBLE NOTES

On May 24, 2018 Provencal Investments Limited, the purchaser of the note from Capilano Capital Inc. converted $1,125 of convertible debt into 225,000 shares of common stock. As of March 31, 2019 the outstanding balance of the note was $28,875 plus interest of $30,875 for a total of $49,403.

On February 2, 2018, the Company issued a one year $3,000 Convertible note Black Ridge Holdings Inc. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share. The note is in default.

On March 22, 2018, the Company issued a one year $3,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share. The note is in default.

On April 13, 2018, the Company issued a one year $3,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On May 15, 2018, the Company issued a one year $2,500 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On June 20, 2018, the Company issued a one year $2,500 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On June 28, 2018, the Company issued a one year $2,000 Convertible note to Blue Diamond Equities. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On January 9, 2019, the Company issued a one year $4,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On February 20, 2019, the Company issued a one year $3,500 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On March 19, 2019, the Company issued a one year $6,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On May 5, 2019, the Company issued a one year $4,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On May 8, 2019, the Company issued a one year $2,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On June 5, 2019, the Company issued a one year $8,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On July 12, 2019, the Company issued a one year $5,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On July 24, 2019, the Company issued a one year $5,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On August 26, 2019, the Company issued a one year $4,500 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

On September 18, 2019, the Company issued a one year $1,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum and is convertible into common stock at $0.005 per share.

As of June 30, 2020 the Company had $266,669 of convertible debt plus interest of $76,233 for total of $342,902.

The Company determined the convertible note does not meets the requirements for derivative liability accounting as described in ASC 815. As the shares of the Company do not have a value other than par, are not readily convertible to cash at the date of issuance and are not registered to be traded. Additionally, there is no beneficial conversion feature described in ASC 470 on the date of issuance.

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NOTES PAYABLE

6 Months Ended

Jun. 30, 2020

NOTES PAYABLE

NOTE 9 - NOTES PAYABLE

On April 14, 2020, the Company issued a one year $40,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 12% per annum.

On June 17, 2020, the Company issued a one year $3,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 12% per annum.

On June 30, 2020, the Company issued a one year $2,000 Convertible note to 0985358 BC, Ltd. The note bears an interest of 10% per annum.

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INVESTMENTS

6 Months Ended

Jun. 30, 2020

INVESTMENTS

NOTE 10 - INVESTMENTS

On December 12, 2019, the Company signed a memorandum of understanding with Top of the Line Design, LLC whereas the Company will purchase 100 % of Top of the Line for $250,000 and advance Top of the Line $350,000 in working capital as further expanded in a definitive agreement. The Company made a good faith deposit to Top of the Line of $40,000 at the signing of the agreement and an additional $60,000 during the six months ending June 30, 2020. The agreement is effective for 90 days and if terminate by both parties the deposits were to be terminated. As of June 30, 2020 the agreement was still in effect.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2020

SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for financial information and reflect all adjustments which, in the opinion of management, are necessary for a fair presentation.

The unaudited interim financial statements of the Company for the three and six months ended June 30, 2020 and 2019 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position and the results of operations for the interim periods presented herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any subsequent quarters or for an entire year.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of June 30, 2020 the Company did not have any cash equivalents.

Accounts receivable

Accounts receivable are carried at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable include receivables from customers that have received their product order. Bad debt expense is a recognition of uncollectable receivables based on past years’ experience and management’s estimate of likely losses for the year. No allowance for bad debt was considered necessary as of June 30, 2020 and 2019, respectively.

Inventory

Inventories are stated at the lower or cost of market using the first-in; first-out (FIFO) cost method of accounting. The inventory consists of raw materials used to make various products for sale.

Revenue recognition

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Property and Equipment

Property and equipment is recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the expected useful life of the asset (3 to 5 years), beginning when the asset is available and ready for use. Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment are capitalized, while expenditures that do not, such as repairs and maintenance, are expensed as incurred. For the six months ended June 30, 2020 and depreciation and amortization expense totaled $5,857 and $5,211.

Impairment of long-lived assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical-cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is estimated based upon either discounted cash flow analysis or estimated salvage value. As of June 30, 2020 no impairment losses have been recognized.

Income Taxes

Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized.

The Company accounts for income taxes under the provisions of Financial Accounting Standards Board) Accounting Standards Codification 740, Accounting for Income Taxes. It prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the Company has applied a more-likely-than-not recognition threshold for all tax uncertainties. The guidance only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the various taxing authorities.

The Company classifies penalties and interest related to unrecognized tax benefits as income tax expense in the Statements of Operations.

Basic and diluted net loss per share

Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. Diluted loss per share calculations includes the dilutive effect of common stock. Basic and diluted net loss per share is the same due to the absence of common stock equivalents.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and shareholder loans. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Financial assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:

Level 1 — Quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

Level 3 — Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Related Parties

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Recent Accounting Pronouncements

Because the Company has been recently reorganized and has not yet transacted any business, the new accounting standards have no significant impact on the financial statements and related disclosures. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

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PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2020

PROPERTY AND EQUIPMENT

Schedule of property and equipment

	June, 2020		December 31, 2019
Property and equipment	$	36,122	$	36,122
Less: accumulation depreciation		25,319		21,608
Net property and equipment		10,803		14,514

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NATURE OF BUSINESS (Details Narrative) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
NATURE OF BUSINESS
Total shares authorized	125,000,000
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares par value	$ 0.001	$ 0.001

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SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Depreciation and amortization	$ 2,918	$ 2,606	$ 5,878	$ 5,211
Property, Plant and Equipment [Member] | Minimum [Member]
Estimated useful life			3 years
Property, Plant and Equipment [Member] | Maximum [Member]
Estimated useful life			5 years

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GOING CONCERN (Details Narrative) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
GOING CONCERN
Accumulated deficit	$ (423,951)	$ (348,875)

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PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
PROPERTY AND EQUIPMENT
Property and equipment	$ 36,122	$ 36,122
Less: accumulation depreciation	25,319	21,608
Net property and equipment	$ 10,803	$ 14,514

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PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Depreciation expense	$ 3,794	$ 3,127
Fixed assets acquired			$ 4,006
Molds And Motorcycle [Member]
Property and equipment	$ 32,117
Estimated useful life	3 years

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OTHER ASSETS (Details Narrative) - USD ($)	1 Months Ended
	Nov. 15, 2016	Jun. 30, 2020
OTHER ASSETS
Business acquisition, shares Issued for asset aquired	2,500,000
Amortization period, description	The assets are being amortized over 36 months from date of completion which was prior to the date of acquisition.
Business acquisation asset aquired, value	$ 7,465
Other assets		$ 83

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
RELATED PARTY TRANSACTIONS
Compensation paid to a related party	$ 18,900	$ 5,399

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EQUITY (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
EQUITY
Common stock issued for cash, amount	$ 40,550	$ 50,950
Common stock issued for cash, shares		262,250

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CONVERTIBLE NOTES (Details Narrative) - USD ($)								1 Months Ended										6 Months Ended
	Jun. 05, 2019	May 08, 2019	May 05, 2019	Jan. 09, 2019	May 15, 2018	Apr. 13, 2018	Feb. 02, 2018	Sep. 18, 2019	Aug. 26, 2019	Jul. 24, 2019	Jul. 12, 2019	Mar. 19, 2019	Feb. 20, 2019	Jun. 28, 2018	Jun. 20, 2018	May 24, 2018	Mar. 22, 2018	Jun. 30, 2020	Mar. 31, 2019
Outstanding principal balance fo convertible debt																		$ 266,669
Debt instrument outstanding interest amount																		76,233
Total outstanding balance of convertible debt																		$ 342,902
Debt instrument, interest rate during period																		10.00%
Notes payable [Member]
Total outstanding balance of convertible debt																		$ 40,000
Debt instrument, interest rate during period	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%		10.00%	12.00%
Debt instrument, convertible, conversion price	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005	$ 0.005		$ 0.005
Proceeds from issuance of convertible debt	$ 8,000	$ 2,000	$ 4,000	$ 4,000	$ 2,500	$ 3,000	$ 3,000	$ 1,000	$ 4,500	$ 5,000	$ 5,000	$ 6,000	$ 3,500	$ 2,000	$ 2,500		$ 3,000
Provencal Investments [Member]
Outstanding principal balance fo convertible debt																			$ 28,875
Debt instrument outstanding interest amount																			30,875
Total outstanding balance of convertible debt																			$ 49,403
Debt instrument converted amount, shares issued																225,000
Debt instrument converted amount																$ 1,125

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NOTES PAYABLE (Details Narrative) - USD ($)								1 Months Ended									6 Months Ended
	Jun. 05, 2019	May 08, 2019	May 05, 2019	Jan. 09, 2019	May 15, 2018	Apr. 13, 2018	Feb. 02, 2018	Sep. 18, 2019	Aug. 26, 2019	Jul. 24, 2019	Jul. 12, 2019	Mar. 19, 2019	Feb. 20, 2019	Jun. 28, 2018	Jun. 20, 2018	Mar. 22, 2018	Jun. 30, 2020
Interest Rate																	10.00%
Debt conversion, converted instrument, amount																	$ 342,902
Notes payable [Member]
Interest Rate	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	12.00%
Debt conversion, converted instrument, amount																	$ 40,000
Notes payable [Member] | June 17, 2020 [Member]
Interest Rate																	12.00%
Debt conversion, converted instrument, amount																	$ 3,000

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INVESTMENTS (Details Narrative) - USD ($)		6 Months Ended
	Dec. 12, 2019	Jun. 30, 2020
Effective Agreement		90 Days
Additional Deposit		$ 60,000
LLC [Member]
Advance in working capital	$ 350,000
Deposits agreement	40,000
Business aquisition, consideration transferred	$ 250,000
Business aquisition, percentage	100.00%