Evil Empire Designs, Inc. (Form: 10-Q, Received: 12/21/2021 16:39:13)

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☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

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

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 every Interactive Data File required to be submitted 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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):

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 Exchange Act Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of December 19, 2021, there were 8,057,750 shares of common stock, $0.001 par value per share, outstanding.

This Quarterly Report on Form 10-Q of Evil Empire Designs, Inc., a Nevada corporation (the “Company”), contains “forward-looking statements,” as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (i) the development and protection of our brands and other intellectual property, (ii) the need to raise capital to meet business requirements, (iii) significant fluctuations in marketing expenses, (iv) the ability to achieve and expand significant levels of revenues, or recognize net income, from the sale of our products, (v) the Company’s ability to conduct the business if there are changes in laws, regulations, or government policies related to the motorcycle or motorcycle parts industry, (vi) management’s ability to attract and maintain qualified personnel necessary for the development and commercialization of its planned products, (vii) the impact of the COVID-19 pandemic on our business, suppliers, consumers, customers, and employees or the overall economy, and (viii) other information that may be detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission (“SEC”).

Our management has included projections and estimates in this Form 10-Q, which are based primarily on management’s experience in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information filed by our competitors with the SEC or otherwise publicly available. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Nevada		45-5530035
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Index		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements.	4

	Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020.	4

	Statements of Operations for the Three and Nine Months ended September 30, 2021 and 2020 (unaudited)	5

	Statements of Stockholders’ Deficit for Three and Nine Months ended September 30, 2021 and 2020 (unaudited).	6

	Statements of Cash Flows for the Nine Months ended September 30, 2021 and 2020 (unaudited).	7

	Notes to Condensed Financial Statements (unaudited).	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	12

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	14

Item 4.	Controls and Procedures.	14

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings.	15

Item 1A.	Risk Factors.	15

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	15

Item 3.	Defaults Upon Senior Securities.	15

Item 4.	Mine Safety Disclosures.	15

Item 5.	Other Information.	15

Item 6.	Exhibits.	16

Signatures		17

	September 30, 2021			December 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	106		$	5,265
Accounts receivable		46,365			-
Loan interest receivable		2,268			-
Inventory		1,736			1,689

Total current assets		50,476			6,954

Fixed assets
Fixed assets, net of depreciation of $34,887 and $29,196		13,325			19,016
Investment		182,500			155,000
Loan receivable		100,000			-

Total assets		346,300		$	180,970

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$	124,983		$	104,581
Convertible notes payable		377,125			323,329
Notes payable		145,030			45,000
Total current liabilities		647,138			472,910

Stockholders’ deficit:
Preferred stock, $0.001 par value 25,000,000 authorized none are issued or outstanding
Common stock, $0.001 par value 100,000,000 authorized, 8,057,750, and 8,057,750 issued and outstanding, respectively:		8,058			8,058
Additional paid-in capital		222,757			222,757
Accumulated deficit		(531,652	)		(522,755	)
Total stockholders’ deficit		(300,837	)		(291,940	)

Total liabilities and stockholders’ deficit	$	346,300		$	180,970

	Three Months						Nine Months
	2021			2020			2021			2020
Revenue	$	50,895		$	3,829		$	61,229		$	7,594
Cost of goods		8,231			793			11,516			793
Gross Margin		42,634			3,036			49,713			6,801

Operating expenses:
General and administrative expense		8,010			22,244			25,184			74,811
Depreciation and amortization		1,897			1,950			5,691			7,828
Total operating expenses		9,907			24,194			30,875			82,639

Income (loss) from operations		32,757			(21,158	)		18,838			(75,838	)

Other income (expense):
Other income		2,267			-			2,967			-
Loss on asset		-			-			-			(11,045	)
Interest expense		(10,314	)		(4,688	)		(30,702	)		(14,038	)
Total other income (expense)		(8,047	)		(4,688	)		(27,735	)		(25,083	)

Net income (loss)	$	24,710		$	(25,846	)	$	(8,897	)	$	(100,921	)

Net income (loss) per share, basic and diluted	$	0.00		$	(0.01	)	$	(0.00	)	$	(0.05	)

Weighted average number of shares outstanding, basic and diluted		8,057,750			8,047,585			8,057,750			7,907,544

					Additional					Total
	Common Stock				Paid-In		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Deficit

Balance at December 31, 2019		7,767,500	$	7,768	$	127,097	$	(348,875	)	$	(214,010	)
Common stock issued for cash		52,000		52		10,348		--			10,400

Net loss		--		--		--		(28,968	)		(28,968	)

Balance at March 31, 2020		7,819,500		7,820		137,445		(377,843	)		(232,578	)
Common stock issued for cash		213,250		213		40,337		--			40,550

Net loss		--		--		--		(46,108	)		(46,108	)

Balance at June 30, 2020		8,032,750		8,033		177,782		(423,951	)		(238,136	)
Contribution investment		--		--		40,000		--			40,000
Common stock sold for cash		25,000		25		4,975		--			5,000

Net loss		--		--		--		(25,846	)		(25,846	)

Balance at September 30, 2020		8,057,750		8,058		222,757		(449,796	)		(218,981	)

Balance at December 31, 2020		8,057,500		8,058		222,757		(522,755	)		(291,940	)

Net loss		--		--		--		(32,777	)		(32,777	)

Balance at March 31, 2021		8,057,500		8,058		222,757		(555,532	)		(324,717	)

Net loss		--		--		--		(830	)		(830	)

Balance at June 30, 2021		8,057,500		8,058		222,757		(556,362	)		325,547	)

Net income (loss)		--		--		--		24,710			24,710

Balance at September 30, 2021		8,057,500	$	8,057	$	222,757	$	(531,652	)	$	(300,837	)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

	September 30, 2021		December 31, 2020

Property and equipment	$	48,212	$	48,212
Less: accumulation depreciation		34,887		29,196
Net property and equipment		13,325		19,016

Number		Description

3.1.1		Articles of Incorporation, dated December 23, 2009 (1)
3.1.2		Certificate of Amendment, dated April 24, 2012 (1)
3.1.2		Certificate of Amendment, dated April 24, 2012 (1)
3.2		Bylaws (1)
31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH*		Inline XBRL Taxonomy Extension Schema Document.
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*		Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

	EVIL EMPIRE DESIGNS, INC.

Date: December 21, 2021	By:	/s/ Sheila Cunningham
	Name:	Sheila Cunningham
	Title:	President and Chief Executive Officer (principal executive officer, principal accounting officer and principal financial officer)

1.	I have reviewed this quarterly report on Form 10-Q of Evil Empire Designs, Inc.;

2.	Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.	Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 21, 2021	/s/ Sheila Cunningham
	Sheila Cunningham
	President and Chief Executive Officer
	(principal executive officer, principal accounting officer and principal financial officer)

(1)	such Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)	the information contained in such Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 fairly presents, in all material respects, the financial condition and results of operations of Evil Empire Designs, Inc.