10-Q

UNITED STATES 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, 2021

☐   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: 333-253043

DRAX, INDUSTRIES INC.

(Exact name of registrant as specified in its charter)

Wyoming	85-3564745
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3125 Scott Street, Vista, California 92081

(Registrant's telephone number, including area code)

(760) 739-0069

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  ☐

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

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

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

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

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

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of August 90, 2021: 6,856,574 common shares and 0 shares of preferred stock.

TABLE OF CONTENTS

	Page
Financial Statements
Balance Sheets as of June 30, 2021 (Unaudited) and December 31, 2020	3
Statements of Operations for the Three Months ended June 30, 2021 and June 30, 2020 and six months ended June 30, 2021 and June 30, 2020 (Unaudited)	4
Statement of Stockholders’ Equity (Deficit) from March 20, 2020, inception to June 30, 2021	5
Statement of Cash Flows for the six months ended June 30, 2021 and June 30, 2020 (Unaudited)	6
Notes to the Financial Statements	7

2 

PART I — FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

DRAX, INDUSTRIES INC.

BALANCE SHEETS

Balance Sheet as of June 30, 2021 and December 31, 2020

	June 30			December 31
	2021			2020
ASSETS		(Unaudited)
Current assets:
Cash	$	712,811		$	3,300
Inventory		2,699			—
Prepaid Expenses		—			2,500
Total current assets		715,510			5,800
Other assets:
Security Deposit		1,000			1,000
ROU asset		59,428			—
Total assets	$	775,938		$	6,800
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current liabilities:
Lease Liability, Current portion	$	24,863		$	—
Accrued interest		509			28
Liabilities:
Note payable, net of unamortized discount of $452		10,086			10,000
Line of Credit		9,500			—
Deferred Rent Liability		—			1,125
Lease Liability net of current portion		48,065			—
Total liabilities:		93,023			11,153
Stockholder's equity (deficit):
Preferred stock, $0.0001 par value, 100,000 authorized and 0 issued and outstanding		—			—
Common stock, $0.0001 par value, 70,000,000 authorized, and 6,856,574 issued and out standing		686			400
Additional paid in capital		713,857
Deficit accumulated during development stage		(4,753	)		(4,753	)
Loss		(26,875	)		—
Total stockholder's equity (deficit):		682,915			(4,353	)
Total liabilities and stockholder's equity (deficit):	$	775,938		$	6,800

The accompanying notes are an integral part of these financial statements

3 

 DRAX, INDUSTRIES INC.
STATEMENTS OF OPERATIONS
Three months and six months ending June 30, 202, three months ending June 30, 2020
and the period from March 24, 2020 (date of inception) through June 30, 2020

	Three months ended			Three months ended		Six months  ended		March 24, 2020 (inception) through
	June 30, 2021			June 30, 2020		June 30, 2021		June 30, 2020
	(Unaudited)			(Unaudited)		(Unaudited)		(Unaudited)
Revenue	$	—		$	—	$	—	$	—
EXPENSES:
Rent expense	$	6,750		$	—		12,375		—
Legal expense		3,000			—		3,000		—
Audit expense		1,500			—		7,500		—
Edgar expense		3,230			—		3,230		—
TOTAL OPERATING EXPENSES:	$	14,480		$	—		26,105		—
OTHER EXPENSE
Amortization expense	$	38		$	—		86		—
Interest expense		301			—		481		—
Bank charges		85			—		203		—
TOTAL OTHER EXPENSES:	$	424		$	—		770		—
NET LOSS	$	14,904		$	—		26,875		—
Net income (loss) per common share, basic and diluted	$	(0.003	)	$	—		(0.005)		—
Weighted average number of common shares outstanding, basic and deficit		4,638,751			—		6,321,140		—

The accompanying notes are an integral part of these financial statements

4 

 DRAX, INDUSTRIES INC.
UNAUDITED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the three and six months ended June 30, 2021 and June 30, 2020

					Additional					Total
	Common stock				Paid-In		Accumulated			Stockholders'
	Shares		Amount		Capital		(Deficit)			Equity
Balance, March 24, 2020 (inception)		—	$	—	$	—	$	—		$	—
Net loss for the period from March 24, 2020 (inception) through March 31, 2020		—		—		—		—			—
Balance, March 31, 2020		—	$	—	$	—	$	—		$	—
Net loss for the three months ended June 30, 2020		—		—		—		—			—
Balance June 30, 2020		—	$	—	$	—	$	—		$	—
Balance December 31, 2020		4,000,000	$	400	$	—	$	(4,753	)	$	(4,353	)
Net loss for the three months ended March 31, 2021		—		—		—		(11,971	)		(11,971	)
Balance, March 31, 2021		4,000,000	$	400	$	—	$	(16,724	)	$	(16,324	)
Shares issued for cash		2,856,574		286		713,857		—			714,143
Net loss for the three months ended June 30, 2021		—		—		—		(14,904	)		(14,904	)
Balance June 30, 2021		6,856,574	$	686	$	713,857	$	(31,628	)	$	682,915

The accompanying notes are an integral part of these financial statements

5 

DRAX, INDUSTRIES INC.
STATEMENTS OF CASH FLOWS
Six Months ending June 30, 2021 and the period from
March 24, 2020 (date of inception) through June 30, 2020

	Six months ended			March 24, 2020 (inception) through
	June 30, 2021			June 30, 2020
	(Unaudited)			(Unaudited)
CASH FLOWS FORM OPERATING ACTIVITIES
Net loss	$	(26,875	)	$	—
Adjustments to reconcile net loss to net cash used in operating activities
Amortization expense		86			—
Interest Expense		481			—
Prepaid expenses		2,500			—
Inventory		(2,699	)		—
ROU asset		10,650			—
Lease liability		1,725			—
Net cash used for operating activities		(14,132	)	$	—
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		714,143			—
Proceeds from line of credit		9,500			—
Net cash provided by financing activities		723,643			—
Net increase in cash		709,511			—
Cash, beginning of year		3,300			—
Cash, end of period	$	712,811		$	—
Supplemental Disclosures
Interest Paid	$	—		$	—
Taxes Paid	$	—		$	—
Non-Cash transactions
Operating lease ROU asset/Lease liability	$	70,078		$	—

The accompanying notes are an integral part of these financial statements

6 

 DRAX, INDUSTRIES INC.

Unaudited Notes to The Financial Statements

June 30, 2021

(Information for the Three Months ended June 30, 2021 and 2020)

NOTE 1 – NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

DRAX, INDUSTRIES INC. ("the Company", "Drax") was incorporated in the state of Wyoming on March 24, 2020 ("Inception"). The Company is an assembly company that intends to provide one product to consumers:  a mobile evaporative cooling trailer that is 83 inches by 16 feet called "Cool Box"

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained therein.

The Company filed a General form for registration of securities under the Securities Act of 1933 on February 12, 2021. The registration Statement became effective May 13, 2021. Pursuant to the May 13, 2021, registration Statement the company sold to 32 investors 2,856,574 shares of the company stock and received $714,143 cash.

The company has adopted a fiscal year-end of December 31.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP).  

The financial statements present the Balance Sheet, Statements of Operations, Shareholders' Equity and Cash Flows of the Company. These financial statements are presented in United States dollars.  All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein.

Use of Estimates

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

Cash and Cash Equivalents

Cash and equivalents include investments with initial maturities of three months or less. The Company maintains its cash balances at credit-worthy financial institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. There were no cash equivalents at June 30, 2021.

7 

Inventory

Inventories are stated at the lower of cost or market value, using the first-in, first-out convention. Inventories consist of raw materials, work in progress and finished goods. Raw materials are stocked to reduce the risk of impact on manufacturing for potential supply interruptions due to the COVID-19 pandemic or long lead times on certain components.

Components of inventory are:	June 31,		December 31,
	2021		2020
Raw Materials	$	2,699	$	—
Work in progress		—
Finished goods		—		—
Total inventory		2,699		—
Less: Reserve for obsolete		—		—
Total net inventory		2,699		—

Beneficial Conversion Features

From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method. As of June 30, 2021, the company does not have any loans that contain a beneficial conversion feature.

Fair Value of Financial Instruments

The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820 on June 6, 2011. Under this FASB, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value.

The Company may have various financial instruments that must be measured under the new fair value standard including cash, promissory notes payable. The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:

8 

Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.  The fair value of the Company's cash is based on quoted prices and therefore classified as Level 1. 

Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

Cash, security deposit, prepaid expenses, accrued expenses and note payable reported on the balance sheet are estimated by management to approximate fair market value due to their short-term nature.

The following table presents assets and liabilities that were measured and recognized at fair value as of June 30, 2021 on a recurring basis:  

Description		Level 1		Level 2		Level 3		Total Realized Loss
		$	—	$	—	$	—	$	—
	Total:	$	—	$	—	$	—	$	—

Basic and Diluted Loss Per Share

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the periods presented, there were no outstanding potential common stock equivalents and therefore basic and diluted earnings per share result in the same figure.

Share Based Expenses

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more readily determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

9 

Stock Based Compensation

In December of 2004, the FASB issued a standard which applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are based on the fair value of those equity instruments. For any unvested portion of previously issued and outstanding awards, compensation expense is required to be recorded based on the previously disclosed methodology and amounts. Prior periods presented are not required to be restated. The company adopted the standard as of inception. The Company has not issued any stock options to its Board of Directors and officers as compensation for their services. If options are granted, they will be accounted for at a fair value as required by the FASB ASC 718. 

Net Loss Per Share

The Company adopted the standard issued by the FASB, which requires presentation of basic earnings or loss per share and diluted earnings or loss per share. Basic income (loss) per share ("Basic EPS") is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share ("Diluted EPS") are similarly calculated using the treasury stock method except that the denominator is increased to reflect the potential dilution that would occur if dilutive securities at the end of the applicable period were exercised. 

Advertising and Promotion

All costs associated with advertising and promoting products are expensed as incurred. There are no advertising or promotional expenses at this time.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. This update requires that lessees recognize right-of-use assets and lease liabilities that are measured at the present value of the future lease payments at lease commencement date. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will largely remain unchanged and shall continue to depend on its classification as a finance or operating lease. The update will become effective for periods beginning after December 15, 2020. The Company has performed a comprehensive review in order to determine what changes were required to support the adoption of this new standard and has determined that the adoption of the new standard will have a material impact on the Company’s financial statements with the recognition of operating ROU assets and lease liabilities. The Company elected the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods.

The company adopted at its inception March 24, 2020 the May 2017 FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. In addition, ASU 2014-09 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for fiscal years beginning after December 15, 2017. The new revenue standard is principle based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. The implementation of this standard did not have a material effect on the Company’s results of operations.

10 

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, current U.S. GAAP requires the performance of procedures to determine the fair value at the impairment testing date of assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, the amendments under this ASU require the goodwill impairment test to be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU became effective for the Company on March 24, 2020. The amendments in this ASU will be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed. 

NOTE 3 – DEBT TRANSCATIONS

Promissory Note Payable

On December 15, 2020, the Company issued a promissory note to U.S. Affiliated, Inc. for $10,500 of cash consideration.  The note bears interest at 6% and matures on December 14, 2023. The Loan included fees of $500. During the period ended December 31, 2020 the company paid the loan fees of $500 and recorded them as a discount against the note. The Company recognized interest expense of $312 and 0 for the periods ended June 30, 2021 and 2020. The company also recognized amortization expense of $86 on the promissory note.

Note payable

On March 10, 2021, the Company entered into a Note (Line of Credit Agreement) with U.S. Affiliated, Inc. an unrelated third party for $100,000 maturing on May 1, 2024. The Line of Credit bears interest at 10% simple interest per annum. The company drew down $9,500 during the period ending June 30, 2021.

The Company recognized interest expense for both loans for the six-month period ending June 30, 2021 of $481.

NOTE 4 – GOING CONCERN

As shown in the accompanying financial statements, the Company has incurred net losses from operations resulting in an accumulated deficit of $31,628 as of June 30, 2021. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management is actively pursuing its business plan in an effort to begin to realize revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations. The Company, however, is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern.

11 

The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 5 – RELATED PARTY

On December 31, 2020, the Company sold 4,000,000 founder's shares at the par value of $0.0001 in exchange for proceeds of $400 in cash.

The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 6 – STOCKHOLDER'S EQUITY

On March 24, 2020, the founder of the Company established 70,000,000 authorized shares of $0.0001 par value common stock. Additionally, on March 24, 2020, the Company's founder established 100,000 authorized shares of $0.0001 par value preferred stock. No preferred stock has been issued. There is no designation for the preferred stock at this time.

Common Stock

On December 31, 2020, the Company sold 4,000,000 founder's shares at the par value of $0.0001 in exchange for proceeds $400 in cash.

On June 29, 2021, the Company sold 2,856,754 shares to 32 investors at $0.25 per share in exchange for $714,143.

NOTE 7 – INCOME TAXES

The Company accounts for income taxes under FASB ASC 740-10, which requires use of the liability method. FASB ASC 740-10-25 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences.

For the quarter ending June 30, 2021, the company incurred a net operating loss and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. On June 30, 2021, the company had approximately $6,642 of federal net operating losses. The net operating loss carry forwards, if not utilized, will begin to expire in 2034.

12 

The components of the Company's deferred tax asset are as follows:

	June 30,
	2021
Deferred tax assets
Net operating loss carry forwards	$	998
Net deferred tax assets before valuation allowance		6,642
Less: Valuation allowance		(6,642	)
Net deferred tax assets	$	—

Based on the available objective evidence, including the company's history of its loss, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the company provided for a full valuation allowance against its net deferred tax assets at June 30, 2021.

A reconciliation between the amounts of income tax benefit determined by applying the applicable U.S. and State statutory income tax rate to pre-tax loss is as follows:

	June 30,
	2021
Federal statutory rate		21	%
State statutory rate		11	%

In accordance with FASB ASC 740, the company has evaluated its tax positions and determined there are no uncertain tax positions.

NOTE 8 – COMMITMENTS AND CONTINGENCIES

Operating Leases

Drax, Industries Inc. leased office/warehouse at located at 3125 Scott Street, Vista California 92081 effective December 15, 2020. The lease is for a period of 36 months. The warehouse space consists of 2,500 square feet of warehouse space and 500 feet of office space for a total of 3,000 square feet. Rent for the facility is $-0- per month for the first nine months; and then $3,000 per month thereafter. The Company is not responsible for property taxes and repairs. There are currently no proposed programs for renovation, improvement, or development of the facility.

13 

The table below discloses the Company’s future minimum lease payment obligations as of June 30, 2021.

YEAR	AMOUNT
2021	$	12,000
2022		36,000
2023		33,000
TOTAL	$	81,000
Less: imputed interest		8,072
Lease liability	$	72,928

Legal Proceedings

The company may be subject to legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened ligation where the ultimate disposition or solution could have a material adverse effect on its financial position, results of operations or liquidity.

NOTE 9 – SUBSEQUENT EVENTS

Management has evaluated subsequent events according to the requirements of ASC 855, and there are currently no subsequent events to report as of August 9, 2021.

14 

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

GENERAL OVERVIEW

DRAX, INDUSTRIES INC. ("the Company", "Drax") was incorporated in the state of Wyoming on March 24, 2020 ("Inception"). The Company is an assembly company that intends to provide one product to consumers:  a mobile evaporative cooling trailer that is 83 inches by 16 feet called "Cool Box". These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained therein.

The Company filed a general form for registration of securities (S-1), under the Securities Act of 1933 on February 12, 2021. The registration Statement became effective May 13, 2021. Pursuant to the May 13, 2021, registration Statement the company sold to 32 individuals 2,856,574 shares of the company stock and received $714,143 cash.

The company has adopted a fiscal year-end of December 31.

Nature of Business

Drax, Industries Inc. is an assembly company that intends to provide one (1) product to consumers:  an evaporative cooling trailer that is 83" by 16' foot called Cool Box.

Since our inception on March 24, 2020, through June 30, 2021, we have incurred cumulative losses of $31,628.

Drax, Industries Inc. leases 3,000 square feet of warehouse and office space (2,500 warehouse space and 500 office space at 3125 Scott Street, Vista California 92081, to assemble its Cool Box product. Drax will purchase the component pieces of machinery and assembles the unit for us at our leased space at 3125 Scott Street, Vista California 92081 which is located in San Diego County, California for $16,000 per unit. Funds are paid by the customer directly to Drax, Industries Inc. Mr. Enriquez to date has not sold or made any units. The cooling trailer is self-contained, fully equipped cooling systems that allow people to sit in and escape the outdoor heat by lowering temperatures as much as 30 degrees. The evaporative cooling trailers are designed to aid in the relief of heat stress in outdoor work sites.

The Department of Labor Occupational Safety & Health Administration, OSHA Technical Manual Section III Chapter 4 sets forth Guidelines for Operations conducted outdoors in hot weather. Such as construction, refining, and fire control, especially those that require workers to wear protective clothing. A Cool Box trailer on the job site allows the workers to cool off in compliance with the OSHA regulations.  It is likely that the OSHA requirements will increase in the future increasing the market for cool Box products.

The evaporative cooling trailer will have two 3,500 lb. axles, brakes with a breakaway kit, 12,000lb jack, two 5/16 adjustable cast coupler, 3 x 2 Angle cross members, 5" Channel frame and tongue, 5" Boxed flush floor, all lights sealed rubber mounted in frame and 225/75/15 8 ply tires with spare.  The system will use an evaporating cooling system and a 325-gallon water tank. 

The Company plans on selling the Cool Box to the customers, at a price of approximately $16,000. Since our inception on March 24, 2020, we have incurred cumulative losses of $26,875 to June 30, 2021.

15 

Results of Operations

March 24, 2020, (inception) to June 30, 2020 and June 30, 2021.

During the period we incorporated the company, hired an attorney, and an independent auditor for the preparation of this Registration Statement. We have prepared an internal business plan. We have also reserved the domain name www.draxindustries.net and www.Coolbox.net and begun the development of our website. Our net loss since inception is as a result of incurring expenses of $26,875 for incorporation fees and expenses as they relate to the filing of this Registration Statement.

At inception, we sold 4,000,000 shares of common stock to our sole officer and director, Mr. Virgil Enriquez, for $400.  These shares were issued in reliance on the exemption under Section 4(2) of the Securities Act of 1933, as amended (the "Act"). These shares of our common stock qualified for exemption under Section 4(2) of the Securities Act of 1933 since the issuance shares by us did not involve a public offering. The Offering was not a "public offering" as defined in Section 4(2) due to the insubstantial number of persons involved in the deal, size of the offering, manner of the offering and number of shares offered. We did not undertake an offering in which we sold a high number of shares to a high number of investors. In addition, the foregoing investor had the necessary investment intent as required by Section 4(2) since they agreed to and received share certificates bearing a legend stating that such shares are restricted pursuant to Rule 144 of the 1933 Securities Act. This restriction ensures that these shares would not be immediately redistributed into the market and therefore not be part of a "public offering." Based on an analysis of the above factors, we have met the requirements to qualify for exemption under Section 4(2) of the Securities Act of 1933 for this transaction.

The Company filed a general form for registration of securities (S-1), under the Securities Act of 1933 on February 12, 2021. The registration Statement became effective May 13, 2021.

Pursuant to the May 13, 2021, registration Statement the company sold to 32 investors 2,856,574 shares of the company stock and received $714,143 cash.

The following tables and narrative discussion set forth key components of our results of operations for the period indicated, in dollars, and key components of our revenue for the period indicated, in dollars.

	March 24, 2020
	(inception) to
	June 30, 2021
Revenue	$	0
Operating Expenses:		26,087
Total operating expenses:		26,087
Deficit accumulated during development stage		4,753
Net Loss	$	31,628

16 

Revenue

For the period from March 24, 2020 (inception) to June 30, 2021, we generated no revenues. There were no revenues from the inception at March 24, 2020 because the Company has not yet commenced operations,

We presently have a loan commitment of Ninety-five Thousand Dollars ($95,000.00) from the Company’s President Mr. Enriquez. A loan from an investor for Ten thousand five hundred Dollars ($10,500.00) and a Line of Credit Agreement with an investor for One Hundred Thousand dollars ($100,000). 

Operating Expenses

Total operating expenses for the period on March 24, 2020 (inception) to December 31, 2020 was $4,753. The period January 1, 2021 through June 30, 2021 was $26,087.

Net Loss

For the period from March 24, 2020 (inception) to June 30, 2021 we incurred a net loss of $26,875.

Liquidity and Capital Resources

We believe that our existing sources of liquidity will not be sufficient to fund our operations, anticipated capital expenditures, working capital and other financing requirements for at least the next 12 months. In the event the company is unable to achieve profitable operations in the near term, it may require additional equity and/or debt financing, or reduce expenses, including officer's compensation, to reduce such losses. However, we cannot assure that such financing will be available to us on favorable terms, or at all. We will continue to monitor our expenditures and cash flow position and however, at some time in the future, we may need to obtain additional financing to complete our business plan. There is no assurance that we will be able to obtain such financing if needed and the failure to do so could negatively impact the viability of our company to continue with this business and the business may fail.

We are paying the expenses of the offering because we seek to (i) become a reporting company with the Commission under the Securities Exchange Act of 1934 (the "1934 Act"); and (ii) enable our common stock to be traded on the OTC Market ("OTCQB"). We believe that the registration of the resale of shares on behalf of our existing security holders may facilitate the development of a public market in our common stock if our common stock is approved for trading on the OTC Market ("OTCQB").

The Company entered into a Loan Commitment for ninety-five thousand dollars ($95,000) with its President Virgil Enriquez on December 31, 2020. The loan commitment is due and payable on December 31, 2021, it carries an interest rate of 6% per annum based on a 365-year. There is no fee in connection with the Loan Commitment.

The Company entered into a Promissory Note for ten thousand five hundred ($10,500) with an investor on December 15, 2020. The Promissory Note is due and payable on December 15, 2023, it carries an interest rate of 6% per annum based on a 365-year and a loan fee of five hundred dollars ($500).

The Company entered into a Line of Credit Agreement for one hundred thousand dollars ($100,000) with an investor on March 10, 2021. The Line of Credit Agreement is due and payable on March 10, 2024, it carries an interest rate of 10% per annum based on a 360-day year. There is no fee in connection with the Line of Credit. The Company has drawn down $9,500 on the line credit as June 30, 2021.

17 

Pursuant to the May 13, 2021, registration Statement the company sold to 32 investors 2,856,574 shares of the company stock and received $714,143 cash.

The following table summarizes total assets, accumulated (deficit), stockholder's equity (deficit) and working capital (deficit) at June 30, 2021:

	June 30, 2021
Total Assets	$	775,938
Accumulated (Deficit)	$	(31,628	)
Stockholder’s Equity	$	682,915
Working Capital	$	715,510

As of June 30, 2021, our total assets were $775,938 consisting of cash of $712,811, inventory of $2,699, security deposit of $1,000 and Rent ROU asset of $59,428. Our total liabilities were $93,023, consisting of lease liability of $72,928, loans payable of $19,586 and accrued interest 509.

Expected Purchase or Sale of Significant Equipment

We do not anticipate the purchase or sale of any significant equipment as such items are not required by us at this time or in the next 12 months.

Additional Disclosure of Outstanding Share Data

As of June 30, 2021, we had 6,856,574 shares of common stock issued and outstanding.

Off-Balance Sheet Arrangements

We currently have no off-balance sheet arrangements.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

Not Applicable

Item 4.  Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(c) and 15d – 15(e)). Based upon that evaluation, our principal executive officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer, as appropriate to allow timely decisions regarding required disclosure.  

18 

Inherent Limitations of Internal Controls

Our Principal Executive Officer does not expect that our disclosure controls or internal controls will prevent all error and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting, other than those stated above, during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

PART II—OTHER INFORMATION

Item 1.  Legal Proceedings.

None

Item 1A. Risk Factors.

Not applicable.

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

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4.  Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None

19 

Item 6. Exhibits.

(a)   The following exhibits are filed with this report.

31.1  Certification by Chief Executive Officer pursuant to Sarbanes Oxley Section 302.

31.2  Certification by Chief Financial Officer pursuant to Sarbanes Oxley Section 302. 

32.1  Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350.

101.INS XBRL Instance Document.

101.SCH Inline XBRL Taxonomy Extension Schema Document.

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

20 

SIGNATURES

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

Signature	Title	Date
/s/ Virgil Enriquez	President, Chief Executive Officer and Director (Principal Executive Officer)	August 11, 2021

/s/ Virgil Enriquez Secretary, Chief Financial Officer, (Chief Accounting Officer) August 11, 2021

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Virgil Enriquez, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Drax, Industries Inc.;

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

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

4. The registrant’s other certifying officer 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 of the period covered by this report based on such evaluation; and

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

5. The registrant’s other certifying officer 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 11, 2021
	By:	/s/ Virgil Enriquez
		Virgil Enriquez Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Virgil Enriquez that:

1. I have reviewed this quarterly report on Form 10-Q of Drax, Industries Inc.;

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

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

5. The registrant’s other certifying officer 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 11, 2021
	By:	/s/ Virgil Enriquez
		Virgil Enriquez Chief Financial Officer (Chief Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF PERIODIC REPORT

I, Virgil Enriquez, President and CEO of Drax, Industries Inc. (the “Company”), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

• the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

• the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the period covered by the Report.

Dated: August 11, 2021
	By:	/s/ Virgil Enriquez
		Virgil Enriquez Chief Executive Officer (Principal Executive Officer)

I, Virgil Enriquez, Chief Financial Officer and Chief Accounting Officer of Drax, Industries Inc. (the “Company”), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

• the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

• the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the period covered by the Report.

Dated: August 11, 2021
	By:	/s/ Virgil Enriquez
		Virgil Enriquez Chief Financial Officer (Chief Accounting Officer)

XML

Cover	6 Months Ended
	Jun. 30, 2021 shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	333-253043
Entity Registrant Name	DRAX, INDUSTRIES INC.
Entity Central Index Key	0001844519
Entity Tax Identification Number	85-3564745
Entity Incorporation, State or Country Code	WY
Entity Address, Address Line One	3125 Scott Street
Entity Address, City or Town	Vista
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92081
City Area Code	760
Local Phone Number	739-0069
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	6,856,574

XML

BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash	$ 712,811	$ 3,300
Inventory	2,699	0
Prepaid Expenses	0	2,500
Total current assets	715,510	5,800
Other assets:
Security Deposit	1,000	1,000
ROU asset	59,428	0
Total assets	775,938	6,800
Current liabilities:
Lease Liability, Current portion	24,863	0
Accrued interest	509	28
Liabilities:
Note payable, net of unamortized discount of $452	10,086	10,000
Deferred Rent Liability	0	1,125
Lease Liability net of current portion	48,065	0
Total liabilities:	93,023	11,153
Stockholder's equity (deficit):
Preferred stock, $0.0001 par value, 100,000 authorized and 0 issued and outstanding	0	0
Common stock, $0.0001 par value, 70,000,000 authorized, and 6,856,574 issued and out standing	686	400
Additional paid in capital	713,857
Deficit accumulated during development stage	(4,753)	(4,753)
Loss	(26,875)	0
Total stockholder's equity (deficit):	682,915	(4,353)
Total liabilities and stockholder's equity (deficit):	$ 775,938	$ 6,800

XML

BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Unamortized discount	$ 452	$ 452
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	6,856,574	6,856,574
Common stock, shares outstanding	6,856,574	6,856,574

XML

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 0	$ 0	$ 0	$ 0
EXPENSES:
Rent expense	6,750	0	12,375	0
Legal expense	3,000	0	3,000	0
Audit expense	1,500	0	7,500	0
Edgar expense	3,230	0	3,230	0
TOTAL OPERATING EXPENSES:	14,480	0	26,105	0
OTHER EXPENSE
Amortization expense	38	0	86	0
Interest expense	301	0	481	0
Bank charges	85	0	203	0
TOTAL OTHER EXPENSES:	424	0	770	0
NET LOSS	$ 14,904	$ 0	$ 26,875	$ 0
Net income (loss) per common share, basic and diluted	$ (0.003)	$ 0	$ 0.005	$ 0
Weighted average number of common shares outstanding, basic and deficit	4,638,751	0	6,321,140	0

XML

UNAUDITED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Mar. 22, 2020
Shares, Outstanding, Beginning Balance at Mar. 22, 2020
Net loss
Ending balance, value at Mar. 31, 2020
Balance at ending, shares at Mar. 31, 2020
Net loss
Ending balance, value at Jun. 30, 2020
Balance at ending, shares at Jun. 30, 2020
Beginning balance, value at Dec. 31, 2020	$ 400		(4,753)	(4,353)
Shares, Outstanding, Beginning Balance at Dec. 31, 2020	4,000,000
Net loss			(11,971)	(11,971)
Ending balance, value at Mar. 31, 2021	$ 400		(16,724)	(16,324)
Balance at ending, shares at Mar. 31, 2021	4,000,000
Shares issued for cash	$ 286	713,857		714,143
Stock Issued During Period, Shares, New Issues	2,856,574
Net loss			(14,904)	(14,904)
Ending balance, value at Jun. 30, 2021	$ 686	$ 713,857	$ (31,628)	$ 682,915
Balance at ending, shares at Jun. 30, 2021	6,856,574

XML

STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021
CASH FLOWS FORM OPERATING ACTIVITIES
Net loss		$ (26,875)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization expense		86
Interest Expense		481
Prepaid expenses		2,500
Inventory		(2,699)
ROU asset		10,650
Lease liability		1,725
Net cash used for operating activities		(14,132)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		714,143
Proceeds from line of credit		9,500
Net cash provided by financing activities		723,643
Net increase in cash		709,511
Cash, beginning of year		3,300
Cash, end of period		712,811
Supplemental Disclosures
Interest Paid
Taxes Paid
Non-Cash transactions
Operating lease ROU asset/Lease liability		$ 70,078

XML

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

DRAX, INDUSTRIES INC. ("the Company", "Drax") was incorporated in the state of Wyoming on March 24, 2020 ("Inception"). The Company is an assembly company that intends to provide one product to consumers:  a mobile evaporative cooling trailer that is 83 inches by 16 feet called "Cool Box"

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained therein.

The Company filed a General form for registration of securities under the Securities Act of 1933 on February 12, 2021. The registration Statement became effective May 13, 2021. Pursuant to the May 13, 2021, registration Statement the company sold to 32 investors 2,856,574 shares of the company stock and received $714,143 cash.

The company has adopted a fiscal year-end of December 31.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP).  

The financial statements present the Balance Sheet, Statements of Operations, Shareholders' Equity and Cash Flows of the Company. These financial statements are presented in United States dollars.  All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein.

Use of Estimates

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

Cash and Cash Equivalents

Cash and equivalents include investments with initial maturities of three months or less. The Company maintains its cash balances at credit-worthy financial institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. There were no cash equivalents at June 30, 2021.

Inventory

Inventories are stated at the lower of cost or market value, using the first-in, first-out convention. Inventories consist of raw materials, work in progress and finished goods. Raw materials are stocked to reduce the risk of impact on manufacturing for potential supply interruptions due to the COVID-19 pandemic or long lead times on certain components.

Components of inventory are:	June 31,		December 31,
	2021		2020
Raw Materials	$	2,699	$	—
Work in progress		—
Finished goods		—		—
Total inventory		2,699		—
Less: Reserve for obsolete		—		—
Total net inventory		2,699		—

Beneficial Conversion Features

From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method. As of June 30, 2021, the company does not have any loans that contain a beneficial conversion feature.

Fair Value of Financial Instruments

The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820 on June 6, 2011. Under this FASB, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value.

The Company may have various financial instruments that must be measured under the new fair value standard including cash, promissory notes payable. The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:

Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.  The fair value of the Company's cash is based on quoted prices and therefore classified as Level 1. 

Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

Cash, security deposit, prepaid expenses, accrued expenses and note payable reported on the balance sheet are estimated by management to approximate fair market value due to their short-term nature.

The following table presents assets and liabilities that were measured and recognized at fair value as of June 30, 2021 on a recurring basis:  

Description		Level 1		Level 2		Level 3		Total Realized Loss
		$	—	$	—	$	—	$	—
	Total:	$	—	$	—	$	—	$	—

Basic and Diluted Loss Per Share

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the periods presented, there were no outstanding potential common stock equivalents and therefore basic and diluted earnings per share result in the same figure.

Share Based Expenses

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more readily determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Stock Based Compensation

In December of 2004, the FASB issued a standard which applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are based on the fair value of those equity instruments. For any unvested portion of previously issued and outstanding awards, compensation expense is required to be recorded based on the previously disclosed methodology and amounts. Prior periods presented are not required to be restated. The company adopted the standard as of inception. The Company has not issued any stock options to its Board of Directors and officers as compensation for their services. If options are granted, they will be accounted for at a fair value as required by the FASB ASC 718. 

Net Loss Per Share

The Company adopted the standard issued by the FASB, which requires presentation of basic earnings or loss per share and diluted earnings or loss per share. Basic income (loss) per share ("Basic EPS") is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share ("Diluted EPS") are similarly calculated using the treasury stock method except that the denominator is increased to reflect the potential dilution that would occur if dilutive securities at the end of the applicable period were exercised. 

Advertising and Promotion

All costs associated with advertising and promoting products are expensed as incurred. There are no advertising or promotional expenses at this time.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. This update requires that lessees recognize right-of-use assets and lease liabilities that are measured at the present value of the future lease payments at lease commencement date. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will largely remain unchanged and shall continue to depend on its classification as a finance or operating lease. The update will become effective for periods beginning after December 15, 2020. The Company has performed a comprehensive review in order to determine what changes were required to support the adoption of this new standard and has determined that the adoption of the new standard will have a material impact on the Company’s financial statements with the recognition of operating ROU assets and lease liabilities. The Company elected the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods.

The company adopted at its inception March 24, 2020 the May 2017 FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. In addition, ASU 2014-09 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for fiscal years beginning after December 15, 2017. The new revenue standard is principle based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. The implementation of this standard did not have a material effect on the Company’s results of operations.

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, current U.S. GAAP requires the performance of procedures to determine the fair value at the impairment testing date of assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, the amendments under this ASU require the goodwill impairment test to be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU became effective for the Company on March 24, 2020. The amendments in this ASU will be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed. 

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DEBT TRANSCATIONS

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

DEBT TRANSCATIONS

NOTE 3 – DEBT TRANSCATIONS

Promissory Note Payable

On December 15, 2020, the Company issued a promissory note to U.S. Affiliated, Inc. for $10,500 of cash consideration.  The note bears interest at 6% and matures on December 14, 2023. The Loan included fees of $500. During the period ended December 31, 2020 the company paid the loan fees of $500 and recorded them as a discount against the note. The Company recognized interest expense of $312 and 0 for the periods ended June 30, 2021 and 2020. The company also recognized amortization expense of $86 on the promissory note.

Note payable

On March 10, 2021, the Company entered into a Note (Line of Credit Agreement) with U.S. Affiliated, Inc. an unrelated third party for $100,000 maturing on May 1, 2024. The Line of Credit bears interest at 10% simple interest per annum. The company drew down $9,500 during the period ending June 30, 2021.

The Company recognized interest expense for both loans for the six-month period ending June 30, 2021 of $481.

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GOING CONCERN

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

NOTE 4 – GOING CONCERN

As shown in the accompanying financial statements, the Company has incurred net losses from operations resulting in an accumulated deficit of $31,628 as of June 30, 2021. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management is actively pursuing its business plan in an effort to begin to realize revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations. The Company, however, is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern.

The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

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RELATED PARTY

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

RELATED PARTY

NOTE 5 – RELATED PARTY

On December 31, 2020, the Company sold 4,000,000 founder's shares at the par value of $0.0001 in exchange for proceeds of $400 in cash.

The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

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STOCKHOLDER'S EQUITY

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

STOCKHOLDER'S EQUITY

NOTE 6 – STOCKHOLDER'S EQUITY

On March 24, 2020, the founder of the Company established 70,000,000 authorized shares of $0.0001 par value common stock. Additionally, on March 24, 2020, the Company's founder established 100,000 authorized shares of $0.0001 par value preferred stock. No preferred stock has been issued. There is no designation for the preferred stock at this time.

Common Stock

On December 31, 2020, the Company sold 4,000,000 founder's shares at the par value of $0.0001 in exchange for proceeds $400 in cash.

On June 29, 2021, the Company sold 2,856,754 shares to 32 investors at $0.25 per share in exchange for $714,143.

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INCOME TAXES

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 7 – INCOME TAXES

The Company accounts for income taxes under FASB ASC 740-10, which requires use of the liability method. FASB ASC 740-10-25 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences.

For the quarter ending June 30, 2021, the company incurred a net operating loss and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. On June 30, 2021, the company had approximately $6,642 of federal net operating losses. The net operating loss carry forwards, if not utilized, will begin to expire in 2034.

The components of the Company's deferred tax asset are as follows:

	June 30,
	2021
Deferred tax assets
Net operating loss carry forwards	$	998
Net deferred tax assets before valuation allowance		6,642
Less: Valuation allowance		(6,642	)
Net deferred tax assets	$	—

Based on the available objective evidence, including the company's history of its loss, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the company provided for a full valuation allowance against its net deferred tax assets at June 30, 2021.

A reconciliation between the amounts of income tax benefit determined by applying the applicable U.S. and State statutory income tax rate to pre-tax loss is as follows:

	June 30,
	2021
Federal statutory rate		21	%
State statutory rate		11	%

In accordance with FASB ASC 740, the company has evaluated its tax positions and determined there are no uncertain tax positions.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 8 – COMMITMENTS AND CONTINGENCIES

Operating Leases

Drax, Industries Inc. leased office/warehouse at located at 3125 Scott Street, Vista California 92081 effective December 15, 2020. The lease is for a period of 36 months. The warehouse space consists of 2,500 square feet of warehouse space and 500 feet of office space for a total of 3,000 square feet. Rent for the facility is $-0- per month for the first nine months; and then $3,000 per month thereafter. The Company is not responsible for property taxes and repairs. There are currently no proposed programs for renovation, improvement, or development of the facility.

The table below discloses the Company’s future minimum lease payment obligations as of June 30, 2021.

YEAR	AMOUNT
2021	$	12,000
2022		36,000
2023		33,000
TOTAL	$	81,000
Less: imputed interest		8,072
Lease liability	$	72,928

Legal Proceedings

The company may be subject to legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened ligation where the ultimate disposition or solution could have a material adverse effect on its financial position, results of operations or liquidity.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 9 – SUBSEQUENT EVENTS

Management has evaluated subsequent events according to the requirements of ASC 855, and there are currently no subsequent events to report as of August 9, 2021.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP).  

The financial statements present the Balance Sheet, Statements of Operations, Shareholders' Equity and Cash Flows of the Company. These financial statements are presented in United States dollars.  All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein.

Use of Estimates

Use of Estimates

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

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and equivalents include investments with initial maturities of three months or less. The Company maintains its cash balances at credit-worthy financial institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. There were no cash equivalents at June 30, 2021.

Inventory

Inventory

Inventories are stated at the lower of cost or market value, using the first-in, first-out convention. Inventories consist of raw materials, work in progress and finished goods. Raw materials are stocked to reduce the risk of impact on manufacturing for potential supply interruptions due to the COVID-19 pandemic or long lead times on certain components.

Components of inventory are:	June 31,		December 31,
	2021		2020
Raw Materials	$	2,699	$	—
Work in progress		—
Finished goods		—		—
Total inventory		2,699		—
Less: Reserve for obsolete		—		—
Total net inventory		2,699		—

Beneficial Conversion Features

Beneficial Conversion Features

From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method. As of June 30, 2021, the company does not have any loans that contain a beneficial conversion feature.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820 on June 6, 2011. Under this FASB, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value.

The Company may have various financial instruments that must be measured under the new fair value standard including cash, promissory notes payable. The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:

Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.  The fair value of the Company's cash is based on quoted prices and therefore classified as Level 1. 

Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

Cash, security deposit, prepaid expenses, accrued expenses and note payable reported on the balance sheet are estimated by management to approximate fair market value due to their short-term nature.

The following table presents assets and liabilities that were measured and recognized at fair value as of June 30, 2021 on a recurring basis:  

Description		Level 1		Level 2		Level 3		Total Realized Loss
		$	—	$	—	$	—	$	—
	Total:	$	—	$	—	$	—	$	—

Basic and Diluted Loss Per Share

Basic and Diluted Loss Per Share

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the periods presented, there were no outstanding potential common stock equivalents and therefore basic and diluted earnings per share result in the same figure.

Share Based Expenses

Share Based Expenses

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more readily determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Stock Based Compensation

Stock Based Compensation

In December of 2004, the FASB issued a standard which applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are based on the fair value of those equity instruments. For any unvested portion of previously issued and outstanding awards, compensation expense is required to be recorded based on the previously disclosed methodology and amounts. Prior periods presented are not required to be restated. The company adopted the standard as of inception. The Company has not issued any stock options to its Board of Directors and officers as compensation for their services. If options are granted, they will be accounted for at a fair value as required by the FASB ASC 718. 

Net Loss Per Share

Net Loss Per Share

The Company adopted the standard issued by the FASB, which requires presentation of basic earnings or loss per share and diluted earnings or loss per share. Basic income (loss) per share ("Basic EPS") is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share ("Diluted EPS") are similarly calculated using the treasury stock method except that the denominator is increased to reflect the potential dilution that would occur if dilutive securities at the end of the applicable period were exercised. 

Advertising and Promotion

Advertising and Promotion

All costs associated with advertising and promoting products are expensed as incurred. There are no advertising or promotional expenses at this time.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. This update requires that lessees recognize right-of-use assets and lease liabilities that are measured at the present value of the future lease payments at lease commencement date. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will largely remain unchanged and shall continue to depend on its classification as a finance or operating lease. The update will become effective for periods beginning after December 15, 2020. The Company has performed a comprehensive review in order to determine what changes were required to support the adoption of this new standard and has determined that the adoption of the new standard will have a material impact on the Company’s financial statements with the recognition of operating ROU assets and lease liabilities. The Company elected the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods.

The company adopted at its inception March 24, 2020 the May 2017 FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. In addition, ASU 2014-09 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for fiscal years beginning after December 15, 2017. The new revenue standard is principle based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. The implementation of this standard did not have a material effect on the Company’s results of operations.

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, current U.S. GAAP requires the performance of procedures to determine the fair value at the impairment testing date of assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, the amendments under this ASU require the goodwill impairment test to be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU became effective for the Company on March 24, 2020. The amendments in this ASU will be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed. 

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Schedule of inventory

Components of inventory are:	June 31,		December 31,
	2021		2020
Raw Materials	$	2,699	$	—
Work in progress		—
Finished goods		—		—
Total inventory		2,699		—
Less: Reserve for obsolete		—		—
Total net inventory		2,699		—

Schedule of fair value assets and liabilities recurring basis

Description		Level 1		Level 2		Level 3		Total Realized Loss
		$	—	$	—	$	—	$	—
	Total:	$	—	$	—	$	—	$	—

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of deferred tax asset

	June 30,
	2021
Deferred tax assets
Net operating loss carry forwards	$	998
Net deferred tax assets before valuation allowance		6,642
Less: Valuation allowance		(6,642	)
Net deferred tax assets	$	—

Schedule of U.S. and State statutory income tax rate

	June 30,
	2021
Federal statutory rate		21	%
State statutory rate		11	%

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease payment

YEAR	AMOUNT
2021	$	12,000
2022		36,000
2023		33,000
TOTAL	$	81,000
Less: imputed interest		8,072
Lease liability	$	72,928

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NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)		1 Months Ended	12 Months Ended
	May 13, 2021	Jun. 29, 2021	Dec. 31, 2020
Repurchase Agreement Counterparty [Line Items]
Sale of Stock		2,856,754	4,000,000
Proceeds from sales of stock		$ 714,143	$ 400
Thirty Three Investors [Member]
Repurchase Agreement Counterparty [Line Items]
Sale of Stock	2,856,574
Proceeds from sales of stock	$ 714,143

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Raw Materials	$ 2,699	$ 0
Work in progress	0
Finished goods	0	0
Total inventory	2,699	0
Less: Reserve for obsolete	0	0
Total net inventory	$ 2,699	$ 0

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Jun. 30, 2021 USD ($)
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair value of assets and liabilities recurring basis
Total:
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair value of assets and liabilities recurring basis
Total:
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair value of assets and liabilities recurring basis
Total:
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair value of assets and liabilities recurring basis
Total:

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Jun. 30, 2021 USD ($)
Accounting Policies [Abstract]
FDIC Insured Amount	$ 250,000
Cash	$ 712,811

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DEBT TRANSCATIONS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Short-term Debt [Line Items]
Interest expense	$ 312	$ 0
Amortization of debt	$ 86
Unrelated Third Party [Member] | Line Of Credit Agreement [Member]
Short-term Debt [Line Items]
Maturity Date	May 01, 2024
Line of Credit	$ 100,000
Line of Credit interest rate	10.00%
Proceeds from (Repayments of) Notes Payable	$ 9,500
Promissory Note [Member] | U S Affiliated [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount	$ 10,500
Debt Instrument, Interest Rate During Period	6.00%
Maturity Date	Dec. 14, 2023
Loan Processing Fee	$ 500
Interest Expense, Debt	$ 481

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GOING CONCERN (Details Narrative) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 4,753	$ 4,753

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RELATED PARTY (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 29, 2021	Dec. 31, 2020
Repurchase Agreement Counterparty [Line Items]
Sale of stock	2,856,754	4,000,000
Share price	$ 0.25	$ 0.0001
Proceeds from sales of stock	$ 714,143	$ 400
Founders [Member]
Repurchase Agreement Counterparty [Line Items]
Sale of stock		4,000,000
Share price		$ 0.0001
Proceeds from sales of stock		$ 400

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STOCKHOLDER'S EQUITY (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 29, 2021	Dec. 31, 2020	Jun. 30, 2021	Mar. 24, 2020
Repurchase Agreement Counterparty [Line Items]
Common stock, shares authorized		70,000,000	70,000,000
Common stock, par value		$ 0.0001	$ 0.0001
Preferred stock, shares authorized		100,000	100,000
Preferred stock, par value		$ 0.0001	$ 0.0001
Preferred stock, shares issued		0	0
Sale of stock	2,856,754	4,000,000
Share price	$ 0.25	$ 0.0001
Proceeds from sales of stock	$ 714,143	$ 400
Founders [Member]
Repurchase Agreement Counterparty [Line Items]
Common stock, shares authorized				70,000,000
Common stock, par value				$ 0.0001
Preferred stock, shares authorized				100,000
Preferred stock, par value				$ 0.0001
Preferred stock, shares issued				0
Sale of stock		4,000,000
Share price		$ 0.0001
Proceeds from sales of stock		$ 400

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INCOME TAXES (Details 1)	Jun. 30, 2021 USD ($)
Deferred tax assets
Net operating loss carry forwards	$ 998
Net deferred tax assets before valuation allowance	6,642
Less: Valuation allowance	(6,642)
Net deferred tax assets	$ 0

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INCOME TAXES (Details 2)	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%
State statutory rate	11.00%

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INCOME TAXES (Details Narrative)	6 Months Ended
	Jun. 30, 2021 USD ($)
Income Tax Disclosure [Abstract]
Net operating losses	$ 6,642

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COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 12,000
2022	36,000
2023	33,000
TOTAL	81,000
Less: imputed interest	8,072
Lease liability	$ 72,928

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COMMITMENTS AND CONTINGENCIES (Details Narrative)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Rent description	Rent for the facility is $-0- per month for the first nine months; and then $3,000 per month thereafter.