The following discussion and analysis of the results of operations and financial
condition of the Company are for the periods ended June 30, 2021 and 2020. 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.
Overview
We have yet to commence planned operations to any significant measure. As of the
date hereof, we, have had only limited start-up operations and have not
generated revenues. Our administrative office is located at 6F., No.364, Sec. 5,
Zhongxiao E. Road, Xinyi District Taipei City, 11060, Taiwan (Republic of
China). Our fiscal year ends on is December 31.
We are a development stage company located in Taipei City, Taiwan. We plan to
market and distribute in Taiwan silica energy clothing manufactured by Shinin
Silica Corp., a Taiwanese corporation ("Shinin"). Generally, that clothing
consists of men's and women's undergarments and related apparel. That clothing
is made from an energy silicon fiber and yarn made from a fine nanoscale silicon
powder and polymer materials which, together, result in a reactive energy
material. Additionally, that clothing is bio-degradable and quick-drying. As of
the date hereof, we have not sold any silicon energy clothing nor have we
generated any revenue from operations.
We are also looking for opportunities to acquire other business or operations.
Results of Operations
For the Three Months Ended June 30, 2021 and 2020
Net Revenues: We did not generate any revenue for the three months ended June
30, 2021 and 2020. 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 $7,629 for the three months ended June 30, 2021,
as compared to $9,613 for the three months ended June 30, 2020, representing a
decrease of $1,984 or 20.64%, 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 $7,629 for the three months ended
June 30, 2021, as compared to $9,613 for the three months ended June 30, 2020,
representing a decrease of $1,984 or 20.64%. Such decrease was primarily
attributable to the decrease in general and administrative expenses.
Net Loss: As a result of the above factors, our net loss was $7,629 for the
three months ended June 30, 2021, as compared to a net income of $9,613 for the
three months ended June 30, 2020, representing a decrease of $1,984 or 20.64%.
The decrease was a result of the reasons described above.
For the Six Months Ended June 30, 2021 and 2020
Net Revenues: We did not generate any revenue for the six months ended June 30,
2021 and 2020. 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 $19,265 for the six months ended June 30, 2021
as compared to $19,226 for the six months ended June 30, 2020, representing an
increase of $39 or 0.20%. The composition of general and administrative expenses
was similar to same period last year and there is no significant difference.
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Loss from Operations: Loss from operations was $19,265 for the six months ended
June 30, 2021 as compared to $19,226 for the six months ended June 30, 2020,
representing an increase of $39, or 0.20%. Such increase was mainly due to the
increase in general and administrative expenses.
Net Loss: Net loss was $19,265 for the six months ended June 30, 2021, as
compared to $19,226 for the six months ended June 30, 2020, representing an
increase of $39, or 0.20%. The increase in net loss was a result of the reasons
described above.
Liquidity and Capital Resources
As of June 30, 2021, we had a working capital deficit of $83,761 as compared to
the working capital deficit of $64,496 as of December 31, 2020. Cash and cash
equivalents were $1,697 at June 30, 2021 and $4,001 at December 31, 2020.
Net cash used in operating activities was $2,304 during the six months ended
June 30, 2021, compared to $8,291 during the six months ended June 30, 2020,
representing a decrease of $5,987. The decrease in net cash used in operating
activities was primarily attributable to 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, 2021 and 2020.
Net change in cash and cash equivalents was a decrease of $2,304 for the six
months ended June 30, 2021, compared to a decrease of $8,291 for the six months
ended June 30, 2020.
Critical Accounting Policies
The financial statements of the Company as of June 30, 2021 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, 2021, 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 24-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 loss from operations of $19,625 for the six
months ended June 30, 2021, and had an accumulated deficit of $673,630 as of
June 30, 2021. 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.
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Recent Accounting Pronouncements
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 adopted this
ASU on January 1, 2021. This ASU did not have a material effect on the Company's
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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HAHA GENERATION CORP 
