The following discussion and analysis of the results of operations and financial
condition of the Company are for the periods ended March 31, 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
The following presents the results of the Company for the three months ended
March 31, 2020, and 2019:
Net Revenues: We did not generate any revenue for the three months ended March
31, 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 March 31,
2020, as compared to $32,119 for the three months ended March 31, 2019,
representing a decrease of $22,506, or 70.07%. 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
March 31, 2020, as compared to $32,119 for the three months ended March 31,
2019, representing a decrease of $22,506, or 70.07%. 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 March 31, 2020, as compared to $(671) for the three months ended March 31,
2019, representing a decrease of $671, or 100%. Such decrease in interest
expense was mainly because we agreed to issue shares of common stock to Shiny
City to repay the Convertible Promissory Notes in full, including the principal
and accrued interest as of June 30, 2019. Therefore, no interests were accrued
during the three months ended March 30, 2020.
Net Loss: Our net loss was $9,613 for the three months ended March 31, 2020, as
compared to $32,790 for the three months ended March 31, 2019, representing a
decrease of $23,177, or 70.68%. The decrease in net loss was a result of the
reasons described above.
Liquidity and Capital Resources
As of March 31, 2020, we had a working deficit of $42,704 as compared to working
deficit of $33,091 as of December 31, 2019. Cash and cash equivalents were
$9,972 at March 31, 2020.
Net cash used in operating activities was $0 during the three months ended March
31, 2020, as compared to $1,845 during the three months ended March 31, 2019,
representing a decrease of $1,845. The decrease in net cash used in operating
activities for the three months ended March 31, 2020 was primarily attributable
to the decrease in net loss and the increase in accrued expenses.
We did not have net cash flow provided by (used in) investing and financing
activities during the three months ended March 31, 2020 and 2019.
Net change in cash and cash equivalents was $0 for the three months ended March
31, 2020, compared to a decrease of $1,845 for the three months ended March 31,
2019.
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Critical Accounting Policies
The financial statements of the Company as of March 31, 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 March 31, 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 12
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 $9,613 for the three months
ended March 31, 2020, and had an accumulated deficit of $632,573 as of March 31,
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.
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.
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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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