UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,Washington, D.C. 20549

FORMForm 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2019FOR THE QUARTERLY PERIOD ENDED:  March 31, 2020

or

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

For the transition period from ______to______.__________ to __________

Commission File Number: 333-171636________________

Inspired Builders, Inc.INSPIRED BUILDERS, INC.

(Exact name of registrant as specified in its Charter)charter)

917-575-89273445 Lawrence Ave., Oceanside, NY 11572

 (Address of principal executive offices, Zip Code)

(646) 768-8417

(Registrant’s telephone number, including area code)

c/o Nevada Registered Agents LLC

401 Ryland St, Suite 200-A

Reno, NV 89502

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

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒☐    No ☐ ☒

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

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.  Act☐

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

Securities registered pursuant to Section 12(b) of the Act: None

  Indicate the

The number of shares outstanding of each of the issuer’s classes of common equity: 1,011,254 shares of the registrant’s common stock par value of $0.001 per share, were outstanding as of July 19, 2019.April 27, 2020 was 1,011,254.

Inspired Builders, Inc.FORM 10-Q

INSPIRED BUILDERS, INC.

 Quarterly Report on Form 10-Q

June 30, 2019

March 31, 2020

TABLE OF CONTENTS

FORWARD LOOKING STATEMENTS

This report contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this report. Additionally, statements concerning future matters are forward-looking statements.

Although forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings “Risks Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our report on Form 10-K which was filed with the SEC on November 12, 2019 (the “10-K”), in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q and information contained in other reports that we file with the SEC. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.

We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. You can also read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

PART I -I. FINANCIAL INFORMATION

Item 1. Financial Statements.

INSPIRED BUILDER,BUILDERS, INC.

CONDENSED BALANCE SHEETS

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

See accompanying notes to financial statements.

INSPIRED BUILDERS, INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)(Unaudited)

SeeThe accompanying notes toare an integral part of these unaudited condensed financial statements.

INSPIRED BUILDERS, INC.

STATEMENT OF STOCKHOLDERS’ DEFICIT

FOR THE THREESIX MONTH PERIODS ENDED MARCH 31, 2020 AND NINE MONTHS ENDED JUNE 30,MARCH 31, 2019 AND 2018

(UNAUDITED)

(Unaudited)

SeeStatement of Stockholders’ Deficit for the Six Months ended March 31, 2020

Statement of Stockholders’ Deficit for the Six Months ended March 31, 2019

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

INSPIRED BUILDERS, INCINC.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)(Unaudited)

SeeThe accompanying notes toare an integral part of these unaudited condensed financial statements.

Inspired Builders, Inc.

INSPIRED BUILDERS, INC.

NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS

June 30, 2019FOR THE SIX MONTH PERIOD ENDED MARCH 31, 2020

(Unaudited)

NOTE 1. GENERAL ORGANIZATION AND BUSINESSNote 1 – Organization and basis of accounting

Basis of Presentation and Organization

Inspired Builders, Inc. (the “Company”) was incorporated in the State of Nevada in February 2010. Until August 15, 2017 the Company was directing its focus on acquiring, investing in, developing and managing real estate properties and related investments. On August 15, 2017, pursuant to a change in control transaction, we relocated to Miami, Florida and ceased all operations as a real estate company. On February 15, 2018, Inspired Builders (the “Company”), the majority shareholders of the Company (the “Sellers”) and Santa Alba, LLC (the “Purchaser”) entered into a stock purchase agreement (the “Stock Purchase Agreement”), whereby the Purchaser purchased from the Sellers 956,440 shares of common stock, par value $0.001 per share, of the Company (the “Shares”), representing approximately 94.58% of the issued and outstanding shares of the Company, for an aggregate purchase price of $300,000 (the “Purchase Price”). On February 15, 2018, the closing of the transaction occurred (“Closing Date”). Also, in connection therewith, Scott Silverman, the Company’s sole officer and Director, resigned from his positions and named Kai Ming Zhao as sole director and to the positions of CEO, CFO, Chief Accounting Officer and Secretary. In

On January 16, 2020, Santa Alba, LLC sold the 956,440 shares of common stock to Custodian Ventures, LLC for an aggregate purchase price of $145,000. At this point there was a change of control of the Company and Kai Ming Zhao resigned as President, Secretary, Treasurer and Director and David Lazar was appointed as President, Secretary, Treasurer and Director.

The Company's current business objective is to seek a business combination with an operating company. We intend to use the Company's limited personnel and financial resources in connection with the changesuch activities. The Company will utilize its capital stock, debt or a combination of capital stock and debt, in control, the Company plans to implement its business plan by acquiringeffecting a business incombination. It may be expected that entering into a business combination will involve the technology and intellectual property industry. There is no assurance at this point, however, that such plan will be executed.issuance of restricted shares of capital stock.

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information necessary for a comprehensive presentation of financial position and results of operations. The unaudited interimcondensed financial statements should be read in conjunction with the financial statements and related notes included in our Annual Report onform 10-K for the year ended September 30, 2018,2019, filed with the SEC on December 7, 2018.November 12, 2019. The interim results for the period ended June 30, 2019March 31, 2020 are not necessarily indicative of expected results for the full fiscal year. It is management’s opinion, however that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statements presentation.

Note 2 – Summary of significant accounting policies

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following; estimates of the probability and potential magnitude of contingent liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, valuation of shares issued in connection with the purchase of real estate, the valuation of the real estate and the evaluation of any impairment on the real estate.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.

Cash and Cash Equivalents

CashFor purposes of reporting within the statements of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and cash equivalents are reported in the balance sheet at cost, which approximates fair value. For the purpose of the financial statements cash equivalents include all highly liquid investmentsdebt instruments purchased with an originala maturity of three months or less when purchased. There were noto be cash equivalents at June 30, 2019 and September 30, 2018.cash equivalents.

Earnings (Loss) per Share

In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,” basic earnings (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. As of June 30,March 31, 2020 and 2019, and June 30, 2018, the Company did not have any outstanding dilutive securities.securities, respectively.

Inspired Builders, Inc.

NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS

June 30, 2019

(Unaudited) 

Reverse Stock Split

On May 15, 2018, the Company’s board of directors approved a reverse stock split whereby each one hundred (100) shares of our Common Stock was converted automatically into one (1) share of Common Stock. To avoid the issuance of fractional shares of Common Stock, the Company issued an additional share to all holders of a fractional share. The effective date of the reverse stock split was July 9, 2018, the Company has 1,011,254 issued and outstanding shares of common stock. The reverse split is reflected retrospectively in the accompanying financial statements.

Income Taxes

The Company adopted FASB ASC 740,Income Taxes, at its inception. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. No deferred tax assets or liabilities were recognized as of June 30, 2019March 31, 2020 and September 30, 20182019 respectively.

Fair Value of Financial Investments

The fair value of cash and cash equivalents, accounts payable, accrued liabilities, and notes payable approximates the carrying amount of these financial instruments due to their short-term maturity.

Use of Estimates

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

Revenue Recognition

Effective October 1, 2018, the Company adopted the guidance of ASC 606, Revenue from Contracts. The implementation of ASC 606 did not have a material impact on the Company’s financial statements. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The adoption of ASC 606 had no effect on previously reported balances.

We have no source of revenue as we are currently a shell company which is moving forward with the business of identifying and entering into a business combination with a privately held business or company. As such, we recognize no revenue.

Fair Value of Financial Investments

The fair value of cash and cash equivalents, accounts payable, accrued liabilities, and loans and notes payable approximates the carrying amount of these financial instruments due to their short-term maturity.

Recent Accounting Pronouncements

In May 2014,July 2018, the FASB issued ASUaccounting standard update (“ASU”) No. 2014-09, Revenue from Contracts with Customers2017-02, “Leases (Topic 606)842)”, (“ASU No. 2014-09”2017-02”). and ASU 2014-09 removes inconsistencies and weaknesses in revenue requirements, provides a more robust framework for addressing revenue issues, improves comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets, provides more useful information to users of financial statements through improved disclosure requirements and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance requires2018-10, “Leases (Topic 842)”, (“ASU 2018-10”), respectively. These ASU’s require that an entity depictshould recognize assets and liabilities for leases with a maximum possible term of more than 12 months. A lessee would recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the consideration by applyingleased asset (the underlying asset) for the lease term. This guidance also provides accounting updates with respect to lessor accounting under a five-step analysis in determining when and how revenuelease arrangement. This new lease guidance is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchangeeffective for those goods or services. On April 1, 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard, ASU No. 2014-09. On July 15, 2015, the FASB affirmed these changes, which requires public entities to apply the amendments in ASU 2014-09 for annual reportingfiscal years beginning after December 15, 2017.2018. Entities have the option of using either a full retrospective or a modified approach (cumulative effect adjustment in period of adoption) to adopt the new guidance. Early adoption is permitted for all entities. The Company hascurrently leases no revenueequipment or property, and therefore, the adoption on October 1, 2019 of thisthe new standard did not have anyhas no effect on the Company. Company’s financial statements.

Accounting standards-setting organizations frequently issue new or revised accounting rules. We regularly review all new pronouncements to determine their impact, if any, on our financial statements.

Inspired Builders, Inc.

NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS

June 30, 2019

(Unaudited) 

NOTE 3. GOING CONCERNNote 3 – Going Concern

As reflected in the accompanying financial statements, the Company has a net loss of $47,178,$44,922, an accumulated deficit of $1,502,698$1,558,807 and working capital deficit of $14,838$70,947 as of June 30, 2019.March 31, 2020. In addition, the Company has not had revenues since May 2011 and has relied on the only prospectsupport of its Chief Executive Officer and majority shareholder. A withdrawal of this support, for positive cash flow is throughany reason, will have a material adverse effect on the issuance of common stock or debt.Company’s financial position and its operations. If the Company does not begin to generate sufficient revenue or raise additional funds through a financing, the Company may need to incur additional liabilities with certain related parties to sustain the Company’s existence. There are currently no plans or agreements in place to provide such funding. The Company will require additional funding to finance the growth of its future operations as well as to achieve its strategic objectives. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and generate revenue. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 4. LOANS PAYABLEThe COVID-19 pandemic could have an impact on our ability to obtain financing to fund the operations.The Company is unable to predict the ultimate impact at this time.

Note 4 – RELATED PARTYRelated Party Transactions

On January 29,16, 2020, Santa Alba, LLC sold the 956,440 shares of common stock to Custodian Ventures, LLC for an aggregate purchase price of $145,000. At this point there was a change of control of the Company and Kai Ming Zhao resigned as President, Secretary, Treasurer and Director and David Lazar was appointed as President, Secretary, Treasurer and Director.

During the period October 1, 2019 thru January 16, 2020, Kai Ming Zhao advanced a total of $6,079 to the Company’s CEO loaned the company $250Company to pay for operationaloperating expenses. TheDuring the six months ended March 31, 2020, the loan balance of $9,341 was fully repaid. As of March 31, 2020, the Company had a loan payable remaining of $0 to Kai Ming Zhao.

During the period January 17, 2020 thru March 31, 2020, Custodian Ventures, LLC, a majority shareholder and an entity controlled by our Chief Executive Officer advanced a total of $67,360 to the Company to pay operating expenses. As of March 31, 2020, the Company had a loan payable remaining of $67,360 to Custodian Ventures, LLC. This loan is interest freeunsecured, non-interest bearing, and payable onupon demand.

On February 12, 2019, the Company’s CEO loaned the company $2,512 to pay for operational expenses. The loan is interest freeNote 5 – Loans and Notes payable on demand. 

On February 25, 2019, the Company’s CEO loaned the company $500 to pay for operational expenses. The loan is interest free and payable on demand.

NOTE 5. NOTES PAYABLE – RELATED PARTIESRelated Parties

On January 13, 2012, the Company entered into a 12-month unsecured promissory note in the amount of $211,000. Interest accrues in arrears on the outstanding principal at the rate of ten percent (10.00%) per annum. Interest shall be payable on the last day of each quarter, commencing March 30, 2012, and continuing until the maturity date. Should the maker fail to pay the entire principal and accrued interest by the maturity date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014. The loan maturity dates were further extended to January 13, 2016. On May 22, 2012, the Company borrowed an additional $32,714 from the related party, with the same terms, the loan maturity dates were extended to January 13, 2016. On September 17, 2012, the Company borrowed an additional $22,032 from the related party, with the same terms, the loan maturity dates were extended to January 13, 2016. On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company borrowed an additional $30,000 from the related party, with the same terms. The loans maturity dates were further extended to February 7, 2016 and July 31, 2016, respectively. On December 20, 2013, the Company borrowed $2,500, on January 7, 2014, the Company borrowed $5,000, on February 6, 2014, the Company borrowed $5,520, the loans maturity dates were further extended to December 20, 2015 and January 7, 2016. On February 17, 2014, the Company borrowed $4,400 and on June 26, 2014, the Company borrowed $3,080, the loans maturity dates were further extended to February 6, 2016 and February 17, 2016, respectively. On November 15, 2016, the Company and the related party entered into a Release and Settlement Agreement whereby $342,519 in principal and $149,258 in accrued interest was forgiven. The transaction was accounted for as contributed capital. On December 31, 2019, the Company obtained a legal opinion that the note payable for $2,500 was no longer collectible under the statute of limitations in the State of California, the jurisdiction where the note was written. As a result, the principal amount of $2,500 and accrued interest of $694 was written off and accounted for as Cancellation of Debt Income. The total outstanding principal at June 30,March 31, 2020 and December 31, 2019 and September 30, 2018 amounted to $2,500$0 and $2,500,$0, respectively. Accrued interest at June 30,March 31, 2020 and December 31, 2019, and September 30, 2018, amounted to $630$0 and $537,$0, respectively.

During the period October 1, 2019 thru January 16, 2020, Kai Ming Zhao advanced a total of $6,079 to the Company to pay operating expenses. During the six months ended March 31, 2020, the loan balance of $9,341 was fully repaid. As of March 31, 2020, the Company had a loan payable remaining of $0 to Kai Ming Zhao.

During the period January 17, 2020 thru March 31, 2020, Custodian Ventures, LLC, a majority shareholder and an entity controlled by our Chief Executive Officer advanced a total of $67,360 to the Company to pay operating expenses. As of March 31, 2020, the Company had a loan payable remaining of $67,360 to Custodian Ventures, LLC. This loan is unsecured, non-interest bearing, and payable upon demand.

Inspired Builders, Inc.

NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS

June 30, 2019

(Unaudited) 

NOTE 6. COMMITMENTS AND CONTINGENCIES

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business. The Company is currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.

NOTE 7. SHAREHOLDERS’ EQUITY

Capital Contributions

During the nine months ended June 30, 2019, a company controlled by our CEO contributed $34,900 to the Company to pay for operational expenses. It was accounted for as contributed capital.  

NOTE 8. CONCENTRATION OF CREDIT RISKNote 6 – Commitments and Contingencies

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business. The Company is currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.

Note 7 – Concentration of Credit Risk

The Company relies heavily on the support of its president and majority shareholder. A withdrawal of this support, for any reason, will have a material adverse effect on the Company’s financial position and its operations.

NOTE 9. RELATED PARTY TRANSACTIONSNote 8 – Common Stock

On January 13, 2012, the Company entered into a 12-month unsecured promissory note in the amountAs of $211,000. Interest accrues in arrears on the outstanding principal at the rateMarch 31, 2020 1,011,254 shares of ten percent (10.00%) per annum. Interest shall be payable on the last daycommon stock with par value of each quarter, commencing March 30, 2012, and continuing until the maturity date. Should the maker fail to pay the entire principal and accrued interest by the maturity date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014. The loan maturity dates were further extended to January 13, 2016. On May 22, 2012, the Company borrowed an additional $32,714 from the related party, with the same terms, the loan maturity dates were extended to January 13, 2016. On September 17, 2012, the Company borrowed an additional $22,032 from the related party, with the same terms, the loan maturity dates were extended to January 13, 2016. On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company borrowed an additional $30,000 from the related party, with the same terms. The loans maturity dates were further extended to February 7, 2016 and July 31, 2016, respectively. On December 20, 2013, the Company borrowed $2,500, on January 7, 2014, the Company borrowed $5,000, on February 6, 2014, the Company borrowed $5,520, the loans maturity dates were further extended to December 20, 2015 and January 7, 2016. On February 17, 2014, the Company borrowed $4,400 and on June 26, 2014, the Company borrowed $3,080, the loans maturity dates were further extended to February 6, 2016 and February 17, 2016, respectively. On November 15, 2016, the Company and the related party entered into a Release and Settlement Agreement whereby $342,519 in principal and $149,258 in accrued interest was forgiven. The transaction was accounted for as contributed capital. The total outstanding principal at June 30, 2019 and September 30, 2018 amounted to $2,500 and $2,500, respectively. Accrued interest at June 30, 2019 and September 30, 2018, amounted to $630 and $537, respectively. $0.001 remains outstanding.

On January 29, 2019, the Company’s CEO loaned the company $250 to pay for operational expenses. The loan is interest free and payable on demand.Note 9 – Subsequent Events

On February 12, 2019, the Company’s CEO loaned the company $2,512 to pay for operational expenses. The loan is interest freeDuring April 2020, Custodian Ventures, LLC, a majority shareholder and payable on demand. 

On February 25, 2019, the Company’s CEO loaned the company $500 to pay for operational expenses. The loan is interest free and payable on demand.

During the nine months ended June 30, 2019, a companyan entity controlled by our CEO contributed $34,900Chief Executive Officer advanced a total of $1,000 to the Company to pay foroperating expenses. This loan is unsecured, non-interest bearing, and payable upon demand.

In March 2020, the World Health Organization categorized the novel coronavirus (COVID-19) as a pandemic, and it continues to spread throughout the United States and the rest of the world with different geographical locations impacted more than others. The outbreak of COVID-19 and public and private sector measures to reduce its transmission, such as the imposition of social distancing and orders to work-from-home, stay-at-home and shelter-in-place, have had a minimal impact on our day to day operations. However this could impact our efforts to enter into a business combination as other businesses have had to adjust, reduce or suspend their operating activities. The extent of the impact will vary depending on the duration and severity of the economic and operational expenses. It was accounted for as contributed capital

impacts of COVID-19. The Company is unable to predict the ultimate impact at this time.

ItemITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should also be read in conjunction with our unaudited consolidated financial statements and the notes to those financial statements appearing elsewhere in this report. The following discussion contains forward-looking statements relating to future events or our future performance. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

Overview Business Development

Inspired Builders, Inc. (“we” or the(the “Company”) was incorporated in the State of Nevada in February 2010. The Company was initially located in Boston, Massachusetts. On January 13, 2012, pursuant to the change of control transaction, we relocated to Santa Monica, California. Until the change of control transaction, we focused on repairing and providing home improvements for the homeowners. Until August 15, 2017 the Company was focuseddirecting its focus on acquiring, investing in, developing and managing real estate properties and related investments. On August 15, 2017, pursuant to anothera change in control transaction, we relocated to Miami, Florida and ceased all operations as a real estate company.

On February 15, 2018, the Company,Inspired Builders (the “Company”), the majority shareholdershareholders of the Company (the “Seller”“Sellers”) and certain buyerSanta Alba, LLC (the “Purchaser”) entered into a stock purchase agreement (the “Stock Purchase Agreement”), whereby the Purchaser purchased from the Seller, 956,439Sellers 956,440 shares of common stock, par value $0.001 per share, of the Company (the “Shares”), representing approximately 94.58% of the issued and outstanding shares of the Company, for an aggregate purchase price of $300,000.

In$300,000 (the “Purchase Price”). On February 15, 2018, the closing of the transaction occurred (“Closing Date”). Also, in connection withtherewith, Scott Silverman, the change in control,Company’s sole officer and Director, resigned from his positions and named Kai Ming Zhao as sole director and to the Company plans to implement its business plan by acquiring a business in the technologypositions of CEO, CFO, Chief Accounting Officer and intellectual property industry. There is no assurance at this point, however, that such plan will be executed.Secretary.

On May 15, 2018, our company’s board of directors, and a majority of our stockholders approved by resolution, a reverse stock split of our authorized and issued and outstandingJanuary 16, 2020, Santa Alba, LLC sold the 956,440 shares of common stock onto Custodian Ventures, LLC for an aggregate purchase price of $145,000. At this point there was a one hundred (100) old for one (1) new basis. Articleschange of Amendmentcontrol of the Company and Kai Ming Zhao resigned as President, Secretary, Treasurer and Director and David Lazar was appointed as President, Secretary, Treasurer and Director.

The Company's current business objective is to seek a business combination with an operating company. We intend to use the ArticlesCompany's limited personnel and financial resources in connection with such activities. The Company will utilize its capital stock, debt or a combination of Incorporation forcapital stock and debt, in effecting a business combination. It may be expected that entering into a business combination will involve the reverse stock split were filed and became effective with the Nevada Secretaryissuance of State on July 3, 2018. Consequently, our issued and outstandingrestricted shares of common stock decreased from 101,125,000 to 1,011,254capital stock. The issuance of additional shares of commonour capital stock:

Similarly, if we issued debt securities, it could result in:

The Company’s fiscal year end is September 30.

In March 2020, the World Health Organization categorized the novel coronavirus (COVID-19) as a pandemic, and it continues to spread throughout the United States and the rest of the world with different geographical locations impacted more than others. The outbreak of COVID-19 and public and private sector measures to reduce its transmission, such as the imposition of social distancing and orders to work-from-home, stay-at-home and shelter-in-place, have had a par valueminimal impact on our day to day operations. However this could impact our efforts to enter into a business combination as other businesses have had to adjust, reduce or suspend their operating activities. The extent of $0.001.the impact will vary depending on the duration and severity of the economic and operational impacts of COVID-19. The reverse split became effective withCompany is unable to predict the OTC Marketsultimate impact at the opening of trading on July 10, 2018.this time.

Results of Operations

The following summary of our results of operations should be read in conjunction with our unaudited interim financial statements forFor the three and nineThree months ended June 30, 2019 and 2018.March 31, 2020 compared to the Three months ended March 31, 2019.

For the three months ended June 30, 2019 and 2018Operating Expenses

Our operating results for the three months ended June 30, 2019 and 2018 are summarized as follows:

For the three months ended June 30, 2019,March 31, 2020, we generated no revenueincurred operating expenses of $12,353 as compared to no revenue$13,333 for the samecomparable period ended June 30, 2018.in 2019, which remains fairly consistent year over year.

Expenses forNet Loss

For the three months ended June 30, 2019 totaled $12,003 resulting inMarch 31, 2020 we incurred a net loss of $12,034. Expenses$12,353 as compared to $13,364 for the threecomparable period in 2019, which remains fairly consistent year over year.

For the Six months ended June 30, 2019 consistedMarch 31, 2020 compared to the Six months ended March 31, 2019.

Operating Expenses

For the six months ended March 31, 2020, we incurred operating expenses of $12,003$48,116 as compared to $35,081 in general and administrative expenses and $31 in interest expense. In comparison, expenses for2019. Increase was attributable to increased costs related to the same periodchange of control transaction.

Net Loss

For the six months ended June 30, 2018 totaled $15,070 resulting inMarch 31, 2020 we incurred a net loss of $15,102. Expenses for the period ended June 30, 2018 consisted of $15,070 in general and administrative expenses, and $32 in interest expense. The decrease in the expenses for the three months ended June 30, 2019 is due to lower costs of professional and legal fees.

For the nine months ended June 30, 2019 and 2018

Our operating results for the nine months ended June 30, 2019 and 2018 are summarized as follows:

For the nine months ended June 30, 2019, we generated no revenue$44,922 as compared to no revenue for the same period ended June 30, 2018.

Expenses for the nine months ended June 30, 2019 totaled $47,084 resulting in a net loss of $47,178. Expenses$35,144 for the nine months ended June 30, 2019 consistedcomparable period in 2019. Increase was attributable to increased costs related to the change of $47,084 in general and administrative expenses and $94 in interest expense. In comparison, expenses for the same period ended June 30, 2018 totaled $129,694 resulting in a net loss of $129,788. Expenses for the period ended June 30, 2018 consisted of $129,694 in general and administrative expenses, including the issuance of 900,000 shares of stock to our former CEO valued at $90,000 and $94 in interest expense. The change in the expenses for the nine months ended June 30, 2019 is due to lower costs of professional and legal fees and the non-recurrence of the one-time issuance of equity compensation to our former CEO during the nine months ended June 30, 2018.control transaction.

Liquidity and Capital Resources

ForAs of March 31, 2020, the nineCompany has no business operations and no cash resources other than advances provided by a related party. As of March 31, 2020 we had $0 in cash and a working capital deficit of $70,947. We had a negative cash flow from operations of $64,699 during the six months ended June 30, 2019,March 31, 2020. We financed our negative cash flow from operations during the netsix months ended March 31, 2020 through advances made by a related party.

The Company does not currently engage in any business activities that provide cash usedflow. During the next 12 months we anticipate incurring costs related to:

We estimate that these costs will be in operating activities was $38,666 comparedthe range of twenty to twenty-five thousand dollars per year. The Company has not had revenues since May 2011 and to date, has relied on the support of its president and majority shareholder. A withdrawal of this support, for any reason, will have a material adverse effect on the Company’s financial position and its operations. If the Company does not begin to generate revenue or raise additional funds through a financing, the Company may need to incur additional liabilities with $97,427 usedcertain related parties to sustain the Company’s existence. There are currently no plans or agreements in operating activitiesplace to provide such funding. The Company will require additional funding to finance the growth of its future operations as well as to achieve its strategic objectives. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and generate revenue. Our unaudited condensed financial statements have been prepared on the basis that we will continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Our independent registered public accounting firm has included its audit report to the audited financial statements for the nine monthsyears ended June 30, 2018. While accounts payable and accrued expenses increased from $5,346 to $12,219, our net loss decreased to the non-recurrence of the one-time issuance of equity compensation to our former CEO during the nine months ended June 30, 2018, resulting in an overall decrease in cash used in operating activities in the nine months ended June 30, 2019 compared to the same period in 2018. For the nine months ended JuneSeptember 30, 2019 and June 30, 2018 the net cash used in investing activities was $0 and $0, respectively. The net cash provided by financing activities was $38,162 for the three months ended June 30, 2019 compared with $106,821 for the nine months ended June 30, 2018. As of June 30, 2019, the Company had $3,143 in cash. We are actively pursuing merger opportunitiesstating substantial doubt about our ability to continue as described herein.  a going concern.

The following is a summary ofCOVID-19 pandemic could have an impact on our ability to obtain financing to fund the Company’s cash flows provided by (used in) operating, investing, and financing activities for the nine months ended June 30, 2019 and June 30, 2018:

The Company has generated no revenues since inception.operations. The Company is also dependent uponunable to predict the receipt of capital investment or other financing to fund its ongoing operations and to execute its business plan of seeking a combination with a private operating company. If continued funding and capital resources are unavailableultimate impact at reasonable terms, the Company may not be able to implement its plan of operations.this time.

Off BalanceOff-Balance Sheet ArrangementArrangements

We dodid not have any off-balance sheet arrangements.arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act of 1934.

Contractual Obligations and Commitments

We did not have any contractual obligations.

Critical Accounting Policies

Accounting Basis

Our significant accounting policies are described in the notes to our condensed financial statements are prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. Our company’s fiscal year end is September 30.

Cash and Cash Equivalents

Cash and cash equivalents are reported in the balance sheet at cost, which approximates fair value. For the purpose of the financial statements cash equivalents include all highly liquid investments with an original maturity of three months or less when purchased.

Earnings (Loss) per Share

Our company adopted FASB ASC 260, Earnings per Share. Basic earnings (loss) per share is calculated by dividing our company’s net income available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share is calculated by dividing our company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. There were no dilutive or potentially dilutive shares outstanding for all periods presented.

Income Taxes

Our company adopted FASB ASC 740, Income Taxes, at its inception. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assetssix months ended March 31, 2020, and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable incomeincluded elsewhere in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. A full valuation allowance was used and no deferred tax assets or liabilities were recognized as of June 30, 2019 and September 30, 2018, respectively. this report.

Fair Value of Financial Investments

The fair value of cash and cash equivalents, accounts payable, accrued liabilities, and notes payable approximates the carrying amount of these financial instruments due to their short-term maturity.

Use of Estimates

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

Related Parties

Related parties, which can be a corporation, individual, investor or another entity are considered to be related if the party has the ability, directly or indirectly, to control the other party or exercise significant influence over our company in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Our company has these relationships.

Recent Accounting Pronouncements

Our company has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements including those not yet effective is not anticipated to have a material effect on the financial position or results of operations of our company.

ItemITEM 3.  Quantitative and Qualitative Disclosures About Market Risk.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable because weWe are a smaller reporting company.company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item. 

ItemITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures.Procedures

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

Pursuant to Rule 13a-15(b) under the Securities Exchange Act, of 1934 (“Exchange Act”), the Company carried out an evaluation with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and the Company’s Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013).March 31, 2020. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures arewere not effective as of June 30, 2019,March 31, 2020 due to ensurethe Company’s limited internal resources and lack of ability to have segregation of duties and multiple levels of transaction review.

Management is in the process of determining how best to change our current system and implement a more effective system to insure that information required to be disclosed by the Company in the reports that the Company fileswe file or submitssubmit under the Exchange Act ishave been recorded, processed, summarized and reported withinaccurately. Our management intends to develop procedures to address the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicatedcurrent deficiencies to the Company’sextent possible given limitations in financial and manpower resources. While management includingis working on a plan, no assurance can be made at this point that the Company’s CEOimplementation of such controls and CFO, as appropriate, to allowprocedures will be completed in a timely decisions regarding required disclosure for the reason described below.manner or that they will be adequate once implemented.

Because of our limited operations, we have a limited number of employees which prohibits a segregation of duties. In addition, we lack a formal audit committee with a financial expert. As we grow and expand our operations we will engage additional employees and experts as needed. However, there can be no assurance that our operations will expand.Changes in Internal Control over Financial Reporting

There have been no changes in our internal controlcontrols over financial reporting that occurred during the period covered by this reportquarter ended March 31, 2020, that have materially affected, or are reasonably likely to materially affect, our internal controlcontrols over financial reporting.

PART II - OTHER INFORMATION

ItemITEM 1.  Legal Proceedings.LEGAL PROCEEDINGS

WeThere are currently not involvedno pending legal proceedings to which the Company is a party or in which any litigation that we believe could havedirector, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledgeCompany.  The Company’s property is not the subject of the executive officers of our Company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.pending legal proceedings.

ItemITEM 1A. Risk Factors.RISK FACTORS 

Not applicable because weWe are a smaller reporting company.company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ItemITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no unregistered sales of the Company’s equity securities during the three months ended June 30, 2019.None

ItemITEM 3.  Defaults Upon Senior Securities.DEFAULTS UPON SENIOR SECURITIES

The Company is currently in default of a note payable to a related party, dated December 20, 2013 in the amount of $2,500. None.

ItemITEM 4.  Mine Safety Disclosures.MINE SAFETY DISCLOSURES

Not applicable.

ItemITEM 5.  Other Information.OTHER INFORMATION

None.

Item 6. Exhibits

Item 6. Exhibits.The following exhibits are included with this report.

SIGNATURESSIGNATURE

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

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