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Ecomat, Inc.
Statements of Operations
For the Three and Six Months ended December 31, 2018 and 2017
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		Three Months		Three Months		Six Months		Six Months
		Ended		Ended		Ended		Ended
		December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenue	$	-	$	-	$	-	$	-
Costs and expenses:
General and administrative		17,730		29,550		35,230		59,449
Total operating expenses		17,730		29,550		35,230		59,449
Other income and expenses
Interest expense		2,646		153		3,942		423
Net loss	$	(20,376)	$	(29,703)	$	(39,172)	$	(59,872)
Per shares amounts:
Basic and diluted net loss	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)
Weighted average shares outstanding (basic and diluted)		16,836,750		16,836,750		16,836,750		16,836,750
See Summary of Significant Accounting Policies and Notes to Financial Statements.

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Ecomat, Inc.
Statements of Cash Flows
For the Six Months ended December 31, 2018 and 2017
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		Six Months		Six Months
		Ended		Ended
		December 31, 2017		December 31, 2017
		(Unaudited)		(Unaudited)
Cash flows from operating activities:
Net loss	$	(39,172)	$	(59,872)
Adjustments required to reconcile net loss
to cash used in operating activities:
Changes in operating assets and liabilities:
Accounts payable		1,000		-
Increase (decrease) in accounts payable and accrued liabilities		33,943		31,373
Cash flows used by operating activities		(4,229)		(28,499)
Cash flows from financing activities:
Advances from related party		4,229		3,499
Convertible note borrowings		-		25,000
Cash generated by financing activities		4,229		28,499
Change in cash		-		-
Cash - beginning of period		-		-
Cash - end of period	$	-	$	-
Non-cash investing and financing activities:
Accrued compensation settled with convertibles note payable	$	75,000	$	-
See Summary of Significant Accounting Policies and Notes to Financial Statements.

See Summary of Significant Accounting Policies and Notes to Financial Statements.

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Ecomat, Inc.

Statements of Operations

For the Three Months ended September 30, 2019 and 2018

Background andBack to Table of Contents

See Summary of Significant Accounting Policies
December 31, 2018
and Notes to Financial Statements.

Ecomat, Inc.

Statement of Stockholders’ Deficit

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See Summary of Significant Accounting Policies and Notes to Financial Statements.

Ecomat, Inc.

Statements of Cash Flows

For the Three Months ended September 30, 2019 and 2018

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See Summary of Significant Accounting Policies and Notes to Financial Statements.

Ecomat, Inc.
Background and Significant Accounting Policies
September 30, 2019
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Note 1. The Company and Significant Accounting Policies

Ecomat, Inc. (the "Company"“Company”) was incorporated on December 14, 1995 pursuant to the laws of the State of Delaware. On February 9, 2007, the Company completed its change in domicile to Nevada. The Company used to operate a wet-cleaning process which was one of the first environmentally sound solution to current dry cleaningdry-cleaning methods.

Bankruptcy Proceedings

On March 26, 1999, the Company filed a petition under Chapter 7 for liquidation of the Company's business. As a result of which all of its properties were transferred to a United States Trustee and the Company terminated all of its business operations. The Bankruptcy Trustee has disposed of all of the assets. On June 14, 2006, the Bankruptcy Court granted an order for approving the sale of certain asset free and clear of all liens, claims and encumbrances, the asset being comprised of the corporate shell of the debtor, Ecomat, Inc. (the "Asset")

Basis of Presentation:

We adopted "fresh-start"“fresh-start” accounting as of June 15, 2006 in accordance with procedures specified by AICPA Statement of Position ("SOP"(“SOP”) No. 90-7, "Financial“Financial Reporting by Entities in Reorganization under the Bankruptcy Code.

The Financial Statements presented herein have been prepared by us in accordance with the accounting policies described in our June 30, 20182019 audited financial statements and should be read in conjunction with the notes to financial statements which appear as part of those financial statements.

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on goingongoing basis, we evaluate our estimates, including those related to intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.

In the opinion of Management, the information furnished in these interim financial statements reflects all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the six-monththree-month periods ended December 31, 2018September 30, 2019 and 2017.2018. All such adjustments are of a normal recurring nature. The Financial Statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include some information and notes necessary to conform with annual reporting requirements.

Recently Issued Accounting Pronouncements

In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. The amendments in ASU 2018-10 provide additional clarification and implementation guidance on certain aspects of the previously issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) and have the same effective and transition requirements as ASU 2016-02. Upon the effective date, ASU 2018-10 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2018-10 is effective for private companies and emerging growth public companies for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. During the three months ended September 30, 2019, the Company assessed the impact this guidance had on its financial statements and concluded that at present ASU No. 2018-10 has no impact on its financial statements.

In August, 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). Effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period.

In May, 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yetbecame effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year.

In April, 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yetbecame effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year.

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.

Note 2. Going Concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concern The Company has incurred losses, has negative operational cash flows and has no revenues. The future of the Company is dependent upon Management success in its efforts and limited resources to pursue and effect a business combination. These conditions raise substantial doubt about the Company'sCompany’s ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

If a business combination transaction is not consummated, we do not believe that we could succeed in raising additional capital, from unrelated parties, needed to sustain our operations without some strategic transaction, such as a business combination or merger. If we are unable to consummate such a transaction, we expect that we would need to cease all operations and wind down. Although we are currently evaluating our strategic alternatives with respect to all aspects of our business, we cannot assure you that any actions that we take would raise or generate sufficient capital to fully address the uncertainties of our financial position.

Note 3. Convertible Note

On July 8, 2017, we issued a convertible promissory note in the principal amount of $50,000 to Securitis ComplainceCompliacne and subsequently assigned this note to WWYD, Inc., bearing interest at 1% per annum until paid or converted. The conversion price of the note is $0.008 per share. The closing price of the Company'sCompany’s common stock on July 7, 2017 was $0.007 per share. Interest will be payable upon the maturity date at July 7, 2018. On July 6, 2018, the Company and WWYD, Inc. agreed to extend the maturity date of the note to July 7, 2019. On October 1, 2018, the Company agreed to adjust the interest rate, effective July 1, 2018, on this convertible notesnote from 1% to 8%. During the periods ended December 31,September 30, 2019 and 2018, and 2017, the Company recorded $997 and $95, respectively,$997 in interest.interest, respectively. As of June 30, 2018, all services had been provided and no additional services are due under this note. As of December 31,September 30, 2019 and 2018, the accrued interest offor this convertible note was $2,304.$5,262 and $1,306, respectively. As of September 30, 2019 and June 30, 2019, the principal amount of this not is $50,000.

On September 1, 2017, we entered into a Loan Agreement with Ivo Heiden, our sole officer and director, under which we receive funding for general operating expenses from time-to-time as needed by the Company. The Loan Agreement bears interest of 8% per annum and shall be due and payable on a date 366 days from the date of the loan. On June 28, 2019, the Loan Agreement was extended to September 1, 2020. As of December 31, 2018,September 30, 2019, the outstanding balance on this loan was $16,731$23,565 with accrued interest of $4,250.$5,417. During the three month-periodmonths ended December 31,September 30, 2019 and 2018, the Company borrowed $3,734 and 2017, we$2,500, respectively, under this Loan Agreement. During the three months ended September 30, 2019 and 2018, the Company expensed interest of $334$470 and $184,$299, respectively related to this Loan Agreement.note.

On October 12, 2018, we issued a $75,000 convertible promissory note to Ivo Heiden evidencing previously accrued compensation.Heiden. The convertible notnote bears interest at 8% per annum until paid or converted. The conversion price of the note is $0.034 per share, the closing price of the Company'sCompany’s common stock on the date of issuance. Interest will be payable upon the maturity date at October 12, 2020. During the periodthree months ended December 31,September 30 2019 and 2018, the Company expensed interest of $1,496 and $0, respectively, related to this note. As of September 30, 2019, the Company has recorded $1,315$5,753 in interest.accrued interest with respect to this convertible note.

In accordance with ASC # 815, Accounting for Derivative Instruments and Hedging Activities, we evaluated the note holder'sholder’s non-detachable conversion right provision and liquidated damages clause, contained in the terms governing the Convertible Note to determine whether the features qualify as an embedded derivative instrument at issuance. Such non-detachable conversion right provision and liquidated damages clause did not need to be accounted as derivative financial instruments.

Note 5.4. Related Party Transactions

Due to Related Parties:

Amounts due to related parties consist of advances made by our CEO and accrued interest due to our CEO.

As of December 31, 2018September 30, 2019 and June 30, 2018,2019, our CEO has made advances of $16,731$23,565 and $12,502,$19,831, respectively.

As of December 31, 2018September 30, 2019 and June 30, 2018,2019, accrued interest due to our CEO was $5,56511,170 and $3,617,$9,203, respectively.

As of December 31, 2018September 30, 2019 and June 30, 2018,2019, accrued compensation due to our CEO was $15,000$60,000 and $60,000,$45,000, respectively.

On October 12, 2018, the Company issued a convertible note of $75,000 to our CEO evidencing previously accrued compensation.

As of December 31, 2018September 30, 2019 and June 30, 2018,2019, the Company owed a $50,000 convertible note and accrued interest of $2,303$5,262 and $309,$4,266, respectively, to WWYD, Inc., a related party.

During the three months ended September 30, 2019 and 2018, the Company did not issue any shares of common stock.

Note 6.5. Subsequent Events

The Company had no subsequent events after December 31,September 30, 2018 to the date the financial statements were issued.

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ITEM 2. MANAGEMENT'SMANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONBack to Table of Contents

Some of the statements contained in this quarterly report of Ecomat, Inc. (hereinafter the "Company"“Company”, "We"“We” or the "Registrant"“Registrant”) discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use of words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. From time to time, we also may provide forward-looking statements in other materials we release to the public.

Overview

Overview