Company Quick10K Filing
Haha Generation
Price30.05 EPS0
Shares278 P/E1,375,365
MCap8,365 P/FCF-326,094
Net Debt-0 EBIT0
TEV8,365 TEV/EBIT1,375,364
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-12
10-Q 2020-03-31 Filed 2020-05-15
10-K 2019-12-31 Filed 2020-03-30
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-13
10-K 2018-12-31 Filed 2019-03-27
10-Q 2018-09-30 Filed 2018-10-30
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-29
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-06-30 Filed 2017-08-14
10-Q 2017-03-31 Filed 2017-05-15
10-K 2016-12-31 Filed 2017-03-29
10-Q 2016-09-30 Filed 2016-11-14
10-Q 2016-06-30 Filed 2016-08-12
10-Q 2016-03-31 Filed 2016-05-16
10-K 2015-12-31 Filed 2016-04-28

HAHA 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Note 1. Nature of Operations and Summary of Accounting Policies
Note 2. Accrued Expenses
Note 3. Due To Shareholders
Note 4. Convertible Notes Payable - Related Parties
Note 5. Income Taxes
Note 6. Stockholders' Equity (Deficit)
Note 7. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 haha_ex311.htm
EX-32.1 haha_ex321.htm

Haha Generation Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
0.10.10.0-0.0-0.1-0.12015201620182020
Assets, Equity
0.10.10.0-0.0-0.1-0.12015201620182020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12015201620182020
Ops, Inv, Fin

10-Q 1 haha_10q.htm FORM 10-Q haha_10q.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended June 30, 2020

 

 

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934

 

For the Transition Period From __________ To __________

 

Commission File Number: 000-55708

 

HAHA Generation Corp.

(Exact name of registrant as specified in its charter)

    

Nevada

 

32-0442871

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

6F., No.364, Sec. 5, Zhongxiao E. Road, Xinyi District

Taipei City, Taiwan (Republic of China)

 

11060

(Address of principal executive offices)

 

(Zip Code)

 

011-886-2-87860577

(Registrant’s telephone number, including area code)

 

Not Applicable

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

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

  

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

Emerging growth company

  

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

 

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

 

The number of shares of registrant’s common stock outstanding, as of August 12, 2020 is 1,498,280.

   

 

 

    

TABLE OF CONTENTS

 

  

 
2

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements.

   

FINANCIAL STATEMENT SCHEDULES

     

Financial Statements:

 

 

 

 

 

 

 

Balance Sheets

 

F-2

 

 

 

 

 

Statements of Operations

 

F-3

 

 

 

 

 

Statements of Changes in Stockholders’ Equity (Deficit)

 

F-4

 

 

 

 

 

Statements of Cash Flows

 

F-5

 

 

 

 

 

Notes to Financial Statements

 

F-6

 

  

 
F-1

 

    

HAHA GENERATION CORP.

BALANCE SHEETS

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Assets (Unaudited)

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$ 1,681

 

 

$ 9,972

 

Prepaid expense

 

 

900

 

 

 

1,124

 

Total current assets

 

 

2,581

 

 

 

11,096

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$ 2,581

 

 

$ 11,096

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accrued expense and other liabilities

 

$ 24,626

 

 

$ 24,000

 

Due to shareholders

 

 

30,272

 

 

 

20,187

 

Total current liabilities

 

 

54,898

 

 

 

44,187

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

54,898

 

 

 

44,187

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 20,000,000 shares authorized, 0 shares issued and outstanding

 

 

-

 

 

 

-

 

Common stock, $0.001 par value; 1,000,000,000 shares authorized, 1,498,280 shares issued and outstanding

 

 

1,498

 

 

 

1,498

 

Additional paid-in capital

 

 

588,371

 

 

 

588,371

 

Accumulated deficit

 

 

(642,186 )

 

 

(622,960 )

Total stockholders’ deficit

 

 

(52,317 )

 

 

(33,091 )

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Deficit

 

$ 2,581

 

 

$ 11,096

 

  

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

 

F-2

Table of Contents

    

HAHA GENERATION CORP.

STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

For the Six Months

Ended June 30,

 

 

For the Three Months

Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net revenue

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

19,226

 

 

 

43,019

 

 

 

9,613

 

 

 

10,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(19,226 )

 

 

(43,019 )

 

 

(9,613 )

 

 

(10,900 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

-

 

 

 

78

 

 

 

-

 

 

 

78

 

Interest expense – related parties

 

 

-

 

 

 

(1,341 )

 

 

-

 

 

 

(670 )

Gain on forgiveness of debt

 

 

-

 

 

 

60,000

 

 

 

-

 

 

 

60,000

 

Total other income (expense)

 

 

-

 

 

 

58,737

 

 

 

-

 

 

 

59,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

(19,226 )

 

 

15,718

 

 

 

(9,613 )

 

 

48,508

 

Provision for income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss)

 

$ (19,226 )

 

$ 15,718

 

 

$ (9,613 )

 

$ 48,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$ (0.01 )

 

$ 0.01

 

 

$ (0.01 )

 

$ 0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

1,498,280

 

 

 

1,498,280

 

 

 

1,498,280

 

 

 

1,498,280

 

   

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

  

F-3

Table of Contents

    

HAHA GENERATION CORP.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

(UNAUDITED)

  

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Accumulated

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

Balance at December 31, 2018

 

 

1,498,280

 

 

$ 1,498

 

 

$ 311,501

 

 

$ (595,984 )

 

$ (282,985 )

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(32,790 )

 

 

(32,790 )

Balance at March 31, 2019

 

 

1,498,280

 

 

 

1,498

 

 

 

311,501

 

 

 

(628,774 )

 

 

(315,775 )

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

48,508

 

 

 

48,508

 

Balance at June 30, 2019

 

 

1,498,280

 

 

$ 1,498

 

 

$ 311,501

 

 

$ (580,266 )

 

$ (267,267 )
    

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Accumulated

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

Balance at December 31, 2019

 

 

1,498,280

 

 

$ 1,498

 

 

$ 588,371

 

 

$ (622,960 )

 

$ (33,091 )

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,613 )

 

 

(9,613 )

Balance at March 31, 2020

 

 

1,498,280

 

 

 

1,498

 

 

 

588,371

 

 

 

(632,573 )

 

 

(42,704 )

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,613 )

 

 

(9,613 )

Balance at June 30, 2020

 

 

1,498,280

 

 

$ 1,498

 

 

$ 588,371

 

 

$ (642,186 )

 

$ (52,317 )

  

F-4

Table of Contents

  

HAHA GENERATION CORP.

STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

For the Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income (loss)

 

$ (19,226 )

 

$ 15,718

 

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

 

 

 

 

 

Gain on forgiveness of debt

 

 

-

 

 

 

60,000

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Decrease (Increase) in prepaid expenses

 

 

224

 

 

 

224

 

Increase (Decrease) in accrued expenses

 

 

626

 

 

 

(79,050 )

Increase (Decrease) in due to related parties

 

 

10,085

 

 

 

-

 

Increase (Decrease) in accrued interest - related parties

 

 

-

 

 

 

1,341

 

Net cash used in operating activities

 

 

(8,291 )

 

 

(1,767 )

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

(8,291 )

 

 

(1,767 )

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

 

 

 

 

 

 

 

Beginning

 

 

9,972

 

 

 

33,117

 

Ending

 

$ 1,681

 

 

$ 31,350

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flows

 

 

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

 

 

 

Interest

 

$ -

 

 

$ -

 

Income taxes

 

$ -

 

 

$ -

 

  

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

  

F-5

Table of Contents

    

HAHA GENERATION CORP.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

  

NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

  

Basis of Presentation

 

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited financial statements, footnote disclosures, and other information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

 

Organization

 

HAHA Generation Corp. (the “Company”), a company in the developmental stage, was incorporated on June 10, 2014 in the State of Nevada. The Company has conducted limited business operations and had no revenues from operations since its inception. The Company’s business plan is to distribute fabrics that were made out of silicon crystals.

 

The Company’s year-end is December 31.

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As of June 30, 2020, the Company has not emerged from the development stage and had limited operations. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to begin operations and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from a loan commitment of $100,000 from Fang-Ying Liao, our president and sole director, which commitment is for 24 months, and all amounts lent by Ms. Fang-Ying Liao pursuant to that commitment shall not accrue interest and shall be payable on demand; provided however, such demand will not be made prior to the expiration of that 12-month period after the date of that commitment, which was April 1, 2020. The financial statements of the Company did not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. As shown in the accompanying financial statements, the Company has incurred net loss of $19,226 for the six months ended June 30, 2020, and had an accumulated deficit of $642,186 as of June 30, 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

  

F-6

Table of Contents

    

The Company faces all the risks common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams, and difficulties in managing growth. The Company’s losses raise substantial doubt about its ability to continue as a going concern. The Company’s financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.

 

The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its planned business. The Company plans to seek additional funds through private placements of its equity securities and/or capital contributions and loans from officer and director. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements included in the registration statement of which this prospectus is a part do not include any adjustments that might occur from this uncertainty.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles 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.

 

Classification

 

Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net loss or accumulated deficit.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

 

Concentration of Credit Risk

 

The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and restricted cash. The Company places its cash and temporary cash investments in high quality credit institutions in Taiwan, but these investments may be in excess of Taiwan Central Deposit Insurance Corporation’s insurance limits. The Company does not enter into financial instruments for hedging, trading, or speculative purposes. Concentration of credit risk with respect to accounts receivables is limited due to the wide variety of customers and markets in which the Company transacts business, as well as their dispersion across many geographical areas. The Company performs ongoing credit evaluations of its customers and generally does not require collateral, but does require advance deposits on certain transactions.

  

F-7

Table of Contents

  

Beneficial Conversion Feature

 

From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of the warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.

 

Fair Value Measurements

 

FASB ASC 820, “Fair Value Measurements” defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows:

 

 

Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available.

 

 

 

 

Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

 

 

 

Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability.

 

The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, prepaid expenses, accrued expenses, and due to shareholders, approximate fair value due to their relatively short maturities.

 

F-8

Table of Contents

    

Revenue Recognition

 

Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

 

identify the contract with a customer;

 

 

identify the performance obligations in the contract;

 

 

determine the transaction price;

 

 

allocate the transaction price to performance obligations in the contract; and

 

 

recognize revenue as the performance obligation is satisfied.

 

During the three and six months ended June 30, 2020 and 2019, the Company has not realized any revenues from operations.

 

Net Income (Loss) per Share

 

Basic income (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period. Diluted income (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 each period. At June 30, 2020 and December 31, 2019, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented.

 

Income Taxes

 

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

 

Recent Accounting Pronouncements

 

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company is currently evaluating the effect, if any, that the ASU will have on its financial statements.

 

F-9

Table of Contents

 

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company is currently evaluating the effect, if any, that the ASU will have on its financial statements.

    

NOTE 2. ACCRUED EXPENSES

 

Accrued expenses consist of the following:

  

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

 

 

Accrued professional fees

 

$ 24,626

 

 

$ 24,000

 

    

NOTE 3. DUE TO SHAREHOLDERS

 

The Company has advanced funds from its shareholder for working capital purposes. As of June 30, 2020, and December 31, 2019, there were $30,272 and $20,187 advances outstanding. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after 30 days written notice by the shareholder.

    

NOTE 4. CONVERTIBLE NOTES PAYABLE - RELATED PARTIES

 

1% Unsecured Convertible Promissory Notes dated September 8, 2017

On September 8, 2017, the Company sold $271,960 in aggregate principal amount of convertible promissory note (the “Convertible Promissory Notes”) to Shiny City Co., Ltd. (the “Shiny City”), a Taiwanese company owned by a major shareholder of the Company. The Convertible Promissory Notes will mature on September 7, 2020 with accrued interest at 1% per annum due upon maturity.

 

On July 24, 2019, the Company and Shiny City entered into an addendum to the Convertible Promissory Notes, pursuant to which the Company agreed to issue 276,870,180 shares of common stock of the Company to Shiny City at a conversion price of $0.001 per share to repay the Convertible Promissory Notes in full, including the principal amount of $271,960 and accrued interest of $4,910 as of June 30, 2019. As of June 30, 2020, these shares have not been issued.

    

NOTE 5. INCOME TAXES

 

The Company files income tax returns in the U.S. federal jurisdiction. The Company is not currently under examination by the Internal Revenue Service or any state income tax authorities. The 2016 through 2018 tax years remain subject to examination by the Internal Revenue Service.

  

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On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the Tax Act) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (the “Federal Tax Rate”) from 35% to 21% effective January 1, 2018. The 21% Federal Tax Rate will apply to earnings reported for the full 2018 fiscal year. In addition, the Company must re-measure its net deferred tax assets and liabilities using the Federal Tax Rate that will apply when these amounts are expected to reverse. As of June 30, 2020, and December 31, 2019, the Company can determine a reasonable estimate for certain effects of tax reform and is recording that estimate as a provisional amount. The provisional remeasurement of the deferred tax assets and allowance valuation of deferred tax assets resulted in a net effect of $0 discrete tax expenses (benefit).

 

As of June 30, 2020, the Company had net operating loss carry forwards of approximately $642,186 that may be available to reduce future years’ taxable income. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

 

The provision for federal income tax consists of the following:

 

 

 

For the Six Months

Ended June 30,

 

 

 

2020

 

 

2019

 

Federal income tax expenses (benefit) attributable to:

 

 

 

 

 

 

 

Current operations

 

$ (4,037 )

 

$ 3,301

 

Less: valuation allowance

 

 

4,037

 

 

 

(3,301 )

Net provision for Federal income taxes

 

$ -

 

 

$ -

 

 

The significant items comprising the Company’s net deferred tax amount as of June 30, 2020 and December 31, 2019 is as follows:

 

 

 

June 30,

2020

 

 

December 31, 2019

 

 

 

(Unaudited)

 

 

 

Deferred tax asset attributable to:

 

 

 

 

 

 

Net operating loss carryover

 

$ 134,858

 

 

$ 130,821

 

Less: valuation allowance

 

 

(134,858 )

 

 

(130,821 )

Net deferred tax asset

 

$ -

 

 

$ -

 

 

The difference between the effective rate reflected in the provision for income taxes on loss before taxes and the amounts determined by applying the applicable statutory U.S. tax rate for the six months ended June 30, 2020 and 2019 are analyzed below:

    

 

 

For the Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

Statutory tax benefit

 

 

(21 )%

 

 

(21 )%

Change in deferred tax asset valuation allowance

 

 

21 %

 

 

21 %

Provision for income taxes

 

-

%

 

-

%

 

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For the six months ended June 30, 2020 and 2019, the Company had no unrecognized tax benefits and related interest and penalties expenses. Currently, the Company is not subject to examination by major tax jurisdictions.

    

NOTE 6. STOCKHOLDERS’ EQUITY (DEFICIT)

 

On June 20, 2016, the Company, pursuant to action by a Written Consent of Sole Director, filed a Certificate of Change with the Nevada Secretary of State to increase the authorized number of shares of the Company’s common stock to 25,000,000 and effectuate a forward stock split on a 5 for 1 basis (the “Certificate”). Pursuant to the Certificate, the authorized number of shares of the Company’s common stock is increased to 25,000,000, par value $0.1, and the Company issues 5 shares for every 1 share of the Company’s common stock that was issued and outstanding (the “Forward Stock Split”). No fractional shares will be issued in connection with the Forward Stock Split. All shares outstanding for all periods have been retroactively restated to reflect Company’s 1 to 5 forward stock split.

 

Effective on January 5, 2018, the Company amended its Articles of Incorporation to increase the number of common stock authorized from 25,000,000 to 1,000,000,000, and to change par value of common stock from $0.1 to $0.001, and to increase the number of preferred stock authorized from 0 to 20,000,000, par value of $0.001.

 

On July 24, 2019, the Company and Shiny City entered into an addendum to the Convertible Promissory Notes, pursuant to which the Company agreed to issue 276,870,180 shares of common stock to Shiny City at a conversion price of $0.001 per share to repay the Convertible Promissory Notes in full, including the principal amount of $271,960 and accrued interest of $4,910 as of June 30, 2019. As of June 30, 2020, these shares have not been issued (see Note 4).

    

NOTE 7. SUBSEQUENT EVENTS

 

Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of June 30, 2020 have been incorporated into these financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”

 

 

******

  

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Results of Operations

 

For the Three Months Ended June 30, 2020 and 2019

 

Net Revenues: We did not generate any revenue for the three months ended June 30, 2020 and 2019. We have had limited business operations since incorporation.

 

General and Administrative Expenses: General and administrative expenses primarily consist of legal, accounting, and professional service fees. General and administrative expenses was $9,613 for the three months ended June 30, 2020, as compared to $10,900 for the three months ended June 30, 2019, representing a decrease of $1,287 or 11.81%, The decrease in those expenses was primarily attributable to the decrease in legal, accounting, and professional service fees. 

 

Loss from Operations: Loss from operations was $9,613 for the three months ended June 30, 2020, as compared to $10,900 for the three months ended June 30, 2019, representing a decrease of $1,287 or 11.81%. Such decrease was primarily attributable to the decrease in general and administrative expenses.

 

Other Income (Expenses): Other income (expenses) was $0 for the three months ended June 30, 2020, as compared to $59,408 for the three months ended June 30, 2019, representing a decrease of $59,408, or 100%. Such decrease was mainly because one of our consultants agreed to forgive the unpaid balance of $60,000 and we recorded the gain on forgiveness of debt as other income during the three months ended June 30, 2019.

 

Net Income (Loss): As a result of the above factors, our net loss was $9,613 for the three months ended June 30, 2020, as compared to a net income of $48,508 for the three months ended June 30, 2019, representing a decrease of $58,121, or 119.82%. The decrease was a result of the reasons described above.

 

For the Six Months Ended June 30, 2020 and 2019

 

Net Revenues: We did not generate any revenue for the six months ended June 30, 2020 and 2019. We have had limited business operations since incorporation.

 

General and Administrative Expenses: General and administrative expenses primarily consist of legal, accounting, and professional service fees. General and administrative expenses was $19,226 for the six months ended June 30, 2020, as compared to $43,019 for the six months ended June 30, 2019, representing a decrease of $23,793 or 55.31%. Such decrease was mainly attributable to the termination of consultant service.

 

Loss from Operations: Loss from operations was $19,226 for the six months ended June 30, 2020, as compared to $43,019 for the six months ended June 30, 2019, representing a decrease of $23,793 or 55.31%. Such decrease was primarily due to the decrease in general and administrative expenses.

 

Other Income (Expenses): Other income (expenses) was $0 for the six months ended June 30, 2020, as compared to $58,737 for the six months ended June 30, 2019, representing a decrease of $58,737, or 100%. Such decrease was mainly because one of our consultants agreed to forgive the unpaid balance of $60,000 and we recorded the gain on forgiveness of debt as other income during the six months ended June 30, 2019.

 

Net Income (Loss): As a result of the above factors, our net loss was $19,226 for the six months ended June 30, 2020, as compared to a net income of $15,718 for the six months ended June 30, 2019, representing a decrease of $34,944, or 222.32%. The decrease was a result of the reasons described above.

 

Liquidity and Capital Resources

 

As of June 30, 2020, we had working deficit of $52,317 as compared to working deficit of $33,091 as of December 31, 2019. Cash and cash equivalents were $1,681 at June 30, 2020 and $9,972 at December 31, 2019.

 

Net cash used in operating activities was $8,291 during the six months ended June 30, 2020, as compared to $1,767 for the six months ended June 30, 2019, representing an increase of $6,524. The increase in net cash used in operating activities was primarily attributable to the increase in net loss and the decrease in gain on forgiveness debt, partially offset by the increase in accrued expenses and due to shareholders.

 

We did not have net cash flow provided by (used in) investing and financing activities during the six months ended June 30, 2020 and 2019.

 

Net change in cash and cash equivalents was a decrease of $8,291 for the six months ended June 30, 2020, compared to a decrease of $1,767 for the six months ended June 30, 2019.

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation.

 

The following discussion and analysis of the results of operations and financial condition of the Company are for the periods ended June 30, 2020 and 2019. Such discussion and analysis should be read in conjunction with our financial statements and the related notes thereto and other financial information contained elsewhere in this report.

 

Business Overview

 

HAHA Generation Corp. (the “Company”) was incorporated on June 10, 2014 in the State of Nevada. The Company is considered a shell company and has conducted limited business operations and had no revenues from operations since its inception. The Company’s business plan was to distribute fabrics that were made out of silicon crystals. The Company intends to acquire a business entity focusing on technology research business for electric vehicle motor technology in the energy saving sector.

 

Results of Operations

 

For the Three Months Ended June 30, 2020, and 2019:

 

Net Revenues: We did not generate any revenue for the three months ended June 30, 2020, and 2019. We have had limited business operations since incorporation.

 

General and Administrative Expenses: General and administrative expenses primarily consist of legal, accounting, and professional service fees. General and administrative expenses was $9,613 for the three months ended June 30, 2020, as compared to $10,900 for the three months ended June 30, 2019, representing a decrease of $1,287, or 11.81%. Such decrease was mainly attributable to the termination of consultant service.

 

Loss from Operations: Loss from operations was $9,613 for the three months ended June 30, 2020, as compared to $10,900 for the three months ended June 30, 2019, representing a decrease of $1,287, or 11.81%. Such decrease was mainly due to the decrease in general and administrative expenses.

 

Other Income (Expenses): Other income (expenses) was $0 for the three months ended June 30, 2020, as compared to $59,408 for the three months ended June 30, 2019, representing a decrease of $59,408, or 100%. Such decrease was mainly because one of our consultants agreed to forgive the unpaid balance of $60,000 and we recorded the gain on forgiveness of debt as other income during the three months ended June 30, 2019.

 

Net Income (Loss): As a result of the above factors, our net loss was $9,613 for the three months ended June 30, 2020, as compared to a net income of $48,508 for the three months ended June 30, 2019, representing a decrease of $58,121, or 119.82%. The decrease in net loss was a result of the reasons described above.

 

For the Six Months Ended June 30, 2020, and 2019:

 

Net Revenues: We did not generate any revenue for the six months ended June 30, 2020, and 2019. We have had limited business operations since incorporation.

 

General and Administrative Expenses: General and administrative expenses primarily consist of legal, accounting, and professional service fees. General and administrative expenses was $19,226 for the six months ended June 30, 2020, as compared to $43,019 for the six months ended June 30, 2019, representing a decrease of $23,793, or 55.31%. Such decrease was mainly attributable to the termination of consultant service.

 

Loss from Operations: Loss from operations was $19,226 for the six months ended June 30, 2020, as compared to $43,019 for the six months ended June 30, 2019, representing a decrease of $23,793, or 55.31%. Such decrease was mainly due to the decrease in general and administrative expenses.

 

Other Income (Expenses): Other income (expenses) was $0 for the six months ended June 30, 2020, as compared to $58,737 for the six months ended June 30, 2019, representing a decrease of $58,737, or 100%. Such decrease was mainly because one of our consultants agreed to forgive the unpaid balance of $60,000 and we recorded the gain on forgiveness of debt as other income during the six months ended June 30, 2019.

 

 
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Net Income (Loss): As a result of the above factors, our net loss was $19,226 for the six months ended June 30, 2020, as compared to a net income of $15,718 for the six months ended June 30, 2019, representing a decrease of $34,944, or 222.32%. The decrease in net loss was a result of the reasons described above.

 

Liquidity and Capital Resources

 

As of June 30, 2020, we had a working deficit of $52,317 as compared to working deficit of $33,091 as of December 31, 2019. Cash and cash equivalents were $1,681 at June 30, 2020 and $9,972 at December 31, 2019.

 

Net cash used in operating activities was $8,291 during the six months ended June 30, 2020, as compared to $1,767 during the six months ended June 30, 2019, representing an increase of $6,524. The increase in net cash used in operating activities was primarily attributable to the increase in net loss and the decrease in gain on forgiveness debt, partially offset by the increase in accrued expenses and due to shareholders.

 

We did not have net cash flow provided by (used in) investing and financing activities during the six months ended June 30, 2020 and 2019.

 

Net change in cash and cash equivalents was a decrease of $8,291 for the six months ended June 30, 2020, compared to a decrease of $1,767 for the six months ended June 30, 2019.

    

Critical Accounting Policies

 

The financial statements of the Company as of June 30, 2020 have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC.

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As of June 30, 2020, the Company has not emerged from the development stage and had limited operations. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to begin operations and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from a loan commitment of $100,000 from Fang-Ying Liao, our president and sole director, which commitment is for 24 months, and all amounts lent by Ms. Fang-Ying Liao pursuant to that commitment shall not accrue interest and shall be payable on demand; provided however, such command will not be made prior to the expiration of that 12-month period after the date of that commitment, which date was April 1, 2020. The financial statements of the Company did not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. As shown in the accompanying financial statements, the Company has incurred net loss of $19,226 for the six months ended June 30, 2020, and had an accumulated deficit of $642,186 as of June 30, 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company faces all the risks common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams, and difficulties in managing growth. The Company’s losses raise substantial doubt about its ability to continue as a going concern. The Company’s financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.

  

 
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The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its planned business. The Company plans to seek additional funds through private placements of its equity securities and/or capital contributions and loans from officer and director. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements included in the registration statement of which this prospectus is a part do not include any adjustments that might occur from this uncertainty.

 

Recent Accounting Pronouncements

 

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company is currently evaluating the effect, if any, that the ASU will have on its financial statements.

 

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company is currently evaluating the effect, if any, that the ASU will have on its financial statements.

 

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition or results of operations.

  

 
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Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

We are a smaller reporting company and therefore is not required to provide the information required by this item.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Based on an evaluation under the supervision and with the participation of the Company’s management, due to our limited internal audit function and our very limited staff, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were not effective as of June 30, 2020 to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

Changes in Internal Control over Financial Reporting

 

No changes were made to our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

  

 
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PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

There are no actions, suits, proceedings, inquiries or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge 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.

 

Item 1A. Risk Factors.

 

We are a smaller reporting company and therefore not required to provide the information required by this item.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

There is no other information required to be disclosed under this item which was not previously disclosed.

  

 
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Item 6. Exhibits.

 

Exhibit

Number

 

Description

 

31.1

 

Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1+

 

Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS

 

XBRL Instance Document.

101.SCH

 

XBRL Taxonomy Extension Schema Document.

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document.

__________

+ In accordance with the SEC Release 33-8238, deemed being furnished and not filed.

  

 
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SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

HAHA Generation Corp.

 

 

 

Date: August 12, 2020

/s/ Fang-Ying Liao

 

 

Fang-Ying Liao

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Accounting and Financial Officer)

   

 

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