Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | ECOMAT INC | |
Entity Central Index Key | 0001008653 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | true | |
Entity Common Stock, Shares Outstanding | 16,836,750 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash | ||
Total current assets | ||
Total assets | 0 | 0 |
Current liabilities: | ||
Accounts payable -trade | 1,125 | |
Advances from - related party | 23,565 | 19,831 |
Accrued compensation - related party | 60,000 | 45,000 |
Accrued interest related party | 16,432 | 13,469 |
Convertible note - related party | 125,000 | 125,000 |
Total current liabilities | 226,122 | 203,300 |
Stockholders' deficit: | ||
Preferred stock, $0.0001 par value; 1,000,000 authorized; | ||
Common stock, $0.0001 par value; 74,000,000 shares authorized; 16,836,750 issued and outstanding at September 30, 2019 and June 30, 2019 | 1,684 | 1,684 |
Additional paid in capital | 3,791 | 3,791 |
Accumulated deficit | (231,597) | (208,775) |
Total stockholders' deficit | (226,122) | (203,300) |
Total liabilities and stockholders' deficit | $ 0 | $ 0 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 74,000,000 | 74,000,000 |
Common stock, shares issued | 16,836,750 | 16,836,750 |
Common stock, shares outstanding | 16,836,750 | 16,836,750 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Revenue | ||
Costs and expenses: | ||
General and administrative | 19,859 | 17,500 |
Total operating expenses | 19,859 | 17,500 |
Other income and expenses | ||
Interest expense | 2,963 | 1,296 |
Net loss | $ (22,822) | $ (18,796) |
Per shares amounts: | ||
Basic and diluted net loss | $ 0 | $ 0 |
Weighted average shares outstanding (basic and diluted) | 16,836,750 | 16,836,750 |
Statement of Stockholders' Defi
Statement of Stockholders' Deficit - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Beginning balance at Jun. 30, 2017 | $ 1,684 | $ 1,177 | $ (12,732) | $ (9,871) |
Beginning balance, shares at Jun. 30, 2017 | 16,836,750 | |||
Imputed interest | 2,614 | 2,614 | ||
Net loss | (119,171) | (119,171) | ||
Ending balance at Jun. 30, 2018 | $ 1,684 | 3,791 | (131,903) | (126,428) |
Ending balance, shares at Jun. 30, 2018 | 16,836,750 | |||
Net loss | (76,872) | (76,872) | ||
Ending balance at Jun. 30, 2019 | $ 1,684 | 3,791 | (208,775) | (203,300) |
Ending balance, shares at Jun. 30, 2019 | 16,836,750 | |||
Net loss | (22,822) | (22,822) | ||
Ending balance at Sep. 30, 2019 | $ 1,684 | $ 3,791 | $ (231,597) | $ (226,122) |
Ending balance, shares at Sep. 30, 2019 | 16,836,750 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||||
Net loss | $ (22,822) | $ (18,796) | $ (76,872) | $ (119,171) |
Changes in operating assets and liabilities: | ||||
Increase (decrease) in accounts payable and accrued liabilities | 19,088 | 16,296 | ||
Cash flows used by operating activities | (3,734) | (2,500) | ||
Cash flows from financing activities: | ||||
Advances from related party | 3,734 | 2,500 | ||
Cash generated by financing activities | 3,734 | 2,500 | ||
Change in cash | ||||
Cash - beginning of period | ||||
Cash - end of period |
The Company and Significant Acc
The Company and Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
The Company and Significant Accounting Policies | Note 1. The Company and Significant Accounting Policies Ecomat, Inc. (the “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-cleaning methods. Basis of Presentation: We adopted “fresh-start” accounting as of June 15, 2006 in accordance with procedures specified by AICPA Statement of Position (“SOP”) No. 90-7, “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, 2019 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 ongoing 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 three-month periods ended September 30, 2019 and 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 became 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 became 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. |
Going Concern
Going Concern | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | 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’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. |
Convertible Note
Convertible Note | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Note | Note 3. Convertible Note On July 8, 2017, we issued a convertible promissory note in the principal amount of $50,000 to Securitis Compliacne 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’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 October 1, 2018, the Company agreed to adjust the interest rate, effective July 1, 2018, on this convertible note from 1% to 8%. During the periods ended September 30, 2019 and 2018, the Company recorded $997 and $997 in interest, respectively. As of June 30, 2018, all services had been provided and no additional services are due under this note. As of September 30, 2019 and 2018, the accrued interest for this convertible note was $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 September 30, 2019, the outstanding balance on this loan was $23,565 with accrued interest of $5,417. During the three months ended September 30, 2019 and 2018, the Company borrowed $3,734 and $2,500, respectively, under this Loan Agreement. During the three months ended September 30, 2019 and 2018, the Company expensed interest of $470 and $299, respectively related to this note. On October 12, 2018, we issued a $75,000 convertible promissory note to Ivo Heiden. The convertible note 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’s common stock on the date of issuance. Interest will be payable upon the maturity date at October 12, 2020. During the three months ended 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 $5,753 in 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’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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 4. Related Party Transactions Due to Related Parties: As of September 30, 2019 and June 30, 2019, our CEO has made advances of $23,565 and $19,831, respectively. As of September 30, 2019 and June 30, 2019, accrued interest due to our CEO was 11,170 and $9,203, respectively. As of September 30, 2019 and June 30, 2019, accrued compensation due to our CEO was $60,000 and $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 September 30, 2019 and June 30, 2019, the Company owed a $50,000 convertible note and accrued interest of $5,262 and $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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 5. Subsequent Events The Company had no subsequent events after September 30, 2018 to the date the financial statements were issued. |
The Company and Significant A_2
The Company and Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: We adopted “fresh-start” accounting as of June 15, 2006 in accordance with procedures specified by AICPA Statement of Position (“SOP”) No. 90-7, “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, 2019 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 ongoing 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 three-month periods ended September 30, 2019 and 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. |
Recent Accounting Pronouncements | 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 became 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 became 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. |
Convertible Note (Details Narra
Convertible Note (Details Narrative) - USD ($) | Jun. 28, 2019 | Oct. 12, 2018 | Sep. 01, 2017 | Jul. 08, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Oct. 01, 2018 | Jul. 07, 2017 |
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 2,963 | $ 1,296 | |||||||
Accrued interest | 16,432 | $ 13,469 | |||||||
Loan outstanding | 23,565 | 19,831 | |||||||
Advances from related party | 3,734 | 2,500 | |||||||
Loan Agreement [Member] | Ivo Heiden [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 8.00% | ||||||||
Debt instrument, maturity date | Sep. 1, 2020 | ||||||||
Interest expense | 470 | 299 | |||||||
Accrued interest | 5,417 | ||||||||
Debt instrument, interest rate terms | 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. | ||||||||
Debt instrument, maturity date description | On June 28, 2019, the Loan Agreement was extended to September 1, 2020. | ||||||||
Loan outstanding | 23,565 | ||||||||
Advances from related party | 3,734 | 2,500 | |||||||
Convertible Promissory Note [Member] | Ivo Heiden [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 75,000 | ||||||||
Debt instrument, interest rate | 8.00% | ||||||||
Debt instrument, conversion price | $ 0.034 | ||||||||
Debt instrument, maturity date | Oct. 12, 2020 | ||||||||
Interest expense | 1,496 | 0 | |||||||
Accrued interest | 5,753 | ||||||||
Convertible Promissory Note [Member] | WWYD, Inc. [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 50,000 | 50,000 | 50,000 | ||||||
Debt instrument, interest rate | 1.00% | ||||||||
Debt instrument, conversion price | $ 0.008 | ||||||||
Common stock, share price | $ 0.007 | ||||||||
Debt instrument, maturity date | Jul. 7, 2018 | ||||||||
Interest expense | 997 | 997 | |||||||
Accrued interest | $ 5,262 | $ 1,306 | $ 4,266 | ||||||
Convertible Promissory Note [Member] | WWYD, Inc. [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 1.00% | ||||||||
Convertible Promissory Note [Member] | WWYD, Inc. [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 8.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Oct. 12, 2018 | |
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 23,565 | $ 19,831 | ||
Accrued interest | 16,432 | 13,469 | ||
Accrued compensation | 60,000 | 45,000 | ||
Convertible notes payable | $ 125,000 | 125,000 | ||
Common stock issued durring period | ||||
Convertible Promissory Note [Member] | WWYD, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accrued interest | $ 5,262 | $ 1,306 | 4,266 | |
Convertible notes payable | 50,000 | 50,000 | ||
CEO [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 23,565 | 19,831 | ||
Accrued interest | 11,170 | 9,203 | ||
Accrued compensation | $ 60,000 | $ 45,000 | ||
CEO [Member] | Convertible Promissory Note [Member] | ||||
Related Party Transaction [Line Items] | ||||
Convertible notes payable | $ 75,000 |