The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $9,318,952 as of March 31, 2020 which raises substantial doubt about the Company's ability to continue as a going concern.

The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements.

No assurance can be given that additional financing will be available when needed or that such financing will be available on terms acceptable to the Company. This also may be affected given the uncertainties surrounding the Covid 19 pandemic. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.

Recent Accounting Pronouncements

In December 2018, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities - FASB ASU 2016-01

Summary - The amendments in ASU 2016-01, among other things.

The Company has no expectation that any of these items will have a material effect upon the financial statements.

Update 2018-07-Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This was early adopted and there were no outstanding equity awards to be re-valued.

NOTE 4 -RELATED PARTY TRANSACTIONS

As of, March 31, 2020 and December 31, 2019, the balance owed to Company CEO, John Sprovieri was $5,542 and $6,766 respectively. These advances were primarily for operating expenses.

NOTE 5 - PROPERTY, INVENTORY AND EQUIPMENT

During July 2019, the Company sold their Industrial Property they had bought from the city of Goldendale in February 2018. The original purchase price was $100,000 for the 5 acre lot. The Company sold the land back to the City under the original contract for a discounted price of $90,000.

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Notes to Inventory Type and Value:

Inventory consists of Raw Materials that are valued at the lower of cost or market.







Raw Materials:

Raw materials consist of rebar, insulation, surfactant, powdered cement, threaded inserts and sundry items. The cost of $2,100 is based on the cost of purchase from a non-related supplier.

Property and Equipment at March 31, 2020 were comprised of the following at:






                                     March 31, 2020     December 31, 2019
Property Plant and Equipment (Gross)       $ 79,045              $ 75,355
Vehicles                                      6,344                 6,344
Accumulated Depreciation                   (23,945)              (22,638)
Property, Plant and Equipment (net)       $ 61,444              $ 59,061

During the quarter, the Company purchased $3,690 in manufacturing equipment so there was an increase to $79,045 in Gross equipment. The Depreciation expense was $1,307 for the three months ended March 31, 2020. and 2019.

NOTE 6 - COMMON STOCK

Common Stock:

The Company Authorized Capital to 20,000,000,000 common shares at $0.0001 par value.

During November 2019 the company performed a reverse split in the ratio of 1 for 200.

There were 15,597,927 shares issued and outstanding as of December 31, 2019.

During the Period January 1, 2019 to December 31, 2019, the Company issued 5,250,000 shares for services based on post-split numbers.

During the Period January 1, 2019 to December 31, 2019, the Company issued 10,061,438 shares for convertible note conversions based on post-split numbers.

During the Period January 1, 2020 to March 31, 2020 there were 50,000,000 shares issued to

these individuals to recompense post-split roll back numbers issued for service compensation to the Company.

During the Period January 1, 2020 to March 31, 2020, the Company issued 12,433,402 shares for convertible note conversions based on post-split numbers.


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     Shareholder        Issued   Cost Basis
Michael A. Young      1,000,000    17,000
Otto B. Paulette      1,000,000    17,000
William S. Beers      1,000,000    17,000
Julie Jett-Regnell    1,000,000    17,000
Elbert L. Odom        1,000,000    17,000
Kimberly A. Grimm     3,000,000    51,000
Kathleen D. Jett      5,000,000    85,000
John & Mary Sprovieri 37,000,000  629,000







NOTE 7 - INCOME TAXES

Federal Income taxes are not currently due since we have had losses since inception.

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 ("Federal Tax Rate") from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the nine months ended September 30, 2018 using a Federal Tax Rate of 21%.

Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes - Recognition. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the "more likely than not" standard required by ASC 740-10-25-5.

Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes.

As of March 31, 2020, we had a net operating loss carry-forward of approximately $(9,318,952) and a deferred tax asset of approximately $1,956,980 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years. However, due to the uncertainty of future events we have booked valuation allowance of $(1,956,980). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At March 31, 2020, the Company had not taken any tax positions that would require disclosure under FASB ASC 740.

March 31, 2020 December 31, 2019

Deferred Tax Asset $1,956,980 $ 1,771,688 Valuation Allowance (1,956,980) (1,771,688)

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Deferred Tax Asset (Net) $               - $               -

The Company is subject to tax in the U.S. federal and Washington jurisdictions. These filings are subject to a three-year statute of limitations unless the returns have not been filed at which point the statute of limitations becomes indefinite. No filings are currently under examination. No adjustments have been made to reduce the estimated income tax benefit at year end. Any valuations relating to these income tax provisions will comply with U.S. generally Accepted Accounting principles.

Note 8 - Notes Payable and Derivative Liabilities

On May 8, 2018, the company issued a 12-month Convertible Note for the sum of $50,000 to RB Capital at 12%. Convertible at $.004. No beneficial conversion was recognized as the conversion price was higher than the stock price.

On June 28, 2018, the company issued a 12-month Convertible Note for the sum of $10,000 to RB Capital at 12%. Convertible at $.004. No beneficial conversion was recognized as the conversion price was higher than the stock price.

On December 7, 2018, the company issued a 12-month Convertible Note for the sum of $25,000 to RB Capital at 12%. Convertible at $.004. No beneficial conversion was recognized as the conversion price was higher than the stock price.

On October 25, 2019, the company issued a 12-month Convertible Note for the sum of $15,000 to RB Capital at 12%. Convertible at $.01. As a result we recognized a beneficial conversion cost of $45,000.

On November 15, 2019, the company issued a 12-month Convertible Note for the sum of $25,000 to RB Capital at 12%. Convertible at $.01. As a result, we recognized a beneficial conversion cost of $7,500.

On December 13, 2019, the company issued a 12-month Convertible Note for the sum of $20,000 to RB Capital at 12%. Convertible at $.03. No beneficial conversion was recognized as the conversion price was higher than the stock price.

On May 28, 2019 we entered into a one-year convertible promissory note in the amount of $27,500 with and interest rate of 12% and a conversion rate of 55% of the lowest prior 25 days trading period.

On August 20, 2019, the company issued a 12-month Convertible Note for the sum of $40,000 to LG Capital at 8%. Convertible at 60% of lowest of the prior 20 days trading period.

On December 16, 2019, the company issued a 12-month Convertible Note for the sum of $32,000 to LG Capital at 8%. Convertible at 60% of lowest of the prior 20 days trading period.

On January 13, 2020, the company issued a 12-month Convertible Note for the sum of $20,000 to RB Capital at 12%. Convertible at $.1. No beneficial conversion was recognized as the conversion price was higher than the stock price.


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On February 10, 2020, the company issued a 12-month Convertible Note for the sum of $25,000 to RB Capital at 12%. Convertible at $.15. No beneficial conversion was recognized as the conversion price was higher than the stock price.

On March 6, 2020, the company issued a 12-month Convertible Note for the sum of $35,000 to LG Capital at 8%. Convertible at 60% of lowest of the prior 20 days trading period. We recognized a derivative liability of $66,811, an original debt discount of $35,000 and a loss on issuance of $31,811

As a result of the convertible notes we recognized the embedded derivative liability on the date that the note was convertible. We also revalued the remaining derivative liability on the outstanding note balance on the date of the balance sheet. The inputs used were a weighted volatility of 255% to 262% and a risk free discount rate of .15% to .42 The remaining derivative liabilities valued using the level 3 inputs in the fair value hierarchy were:

The convertible notes have interest rates that range from 8% to 12% per annum and default rates that range from 12% to 24% per annum. The maturity dates range from six months to one year. The conversion rates range from 55% discount to the market to 62% discount to the market.

For the three months ended March 31, 2020 the convertible notes had converted into 12,433,402 shares of common stock and we recognized $500 in finance fees on the conversions.

Outstanding Derivative Liabilities:




                                             March 31, 2020 December 31, 2019
Derivative Liabilities on Convertible Loans:
Outstanding Balance                          $247,130       $729,308




NOTE - 9 COMMITMENTS

On June 14, 2019 the company signed a 6 month lease on a 8,000 sq. ft. facility located in outer Goldendale and monthly lease cost is $2,000. The lease converted to a month to month on December 14, 2019 at $2,000 per month. The total lease payments for 2019 were $12,000.

ASB ASU 2016-02 "Leases (Topic 842)" - In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We not have not adopted the above ASU as of January 1, 2019, as we have no long term leases.





NOTE 10 - SUBSEQUENT EVENTS

Continued Operations Moving Forward

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The Company's Quarter progression activities has brought its newly built Manufacturing plant into the stage of full production readiness despite delays caused by the COVID-19 crisis.

Adequate working capital has been secured to cover building materials for construction and cover expenses including wages and salaries, marketing, IR services and contingencies.

On April 7, 2020 we issued a Convertible Note for $15,000 to RB Capital. The interest rate was 10% and convertible at a set rate of $0.05.

On June 5, 2020 we issued a Convertible Note for $20,000 to RB Capital. The interest rate was 10% and convertible at a set rate of $0.10.

From April 1, 2020 thru the date of this filing, $35,379 of convertible notes were converted into 14,589,623 shares of common stock and conversions increased our Outstanding shares from 78,031,329 to 92,620,952.

In accordance with ASC 855, the Company has analyzed its operations subsequent to March 31, 2020 through the date these financial statements were issued, and has determined that it does not have any other material subsequent events to disclose in these financial statements.

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





Forward Looking Statements

Readers of this discussion are advised that the discussion should be read in conjunction with the financial statements of Registrant (including related notes thereto) appearing elsewhere in this Form 10-Q. Certain statements in this discussion may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Registrant's current expectations regarding future results of operations, economic performance, financial condition and achievements of Registrant, and do not relate strictly to historical or current facts. Registrant has tried, wherever possible, to identify these forward-looking statements by using words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning.

Although Registrant believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties, which may cause the actual results to differ materially from those anticipated in the forward-looking statements. Such factors include, but are not limited to, the following: general economic and business conditions, which will, among other things, affect demand for housing, the availability of prospective buyers; adverse changes in Registrant's real estate and construction market; including, among other things, competition with other manufacturers, risks of real estate development and acquisitions; governmental actions and initiatives; and environmental/safety requirements.

Results of Operations

As at March 31, 2020, the Company had not commenced manufacturing operations. Therefore, there were no material operational changes from the last audited financials of December 31, 2019.

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During the three months ended March 31, 2020, the company was not operating as a revenue producing manufacturer and, with allowances for Derivative allowances, sustained losses of $882,344. These include regular expenses plus additional expenses and sub contract labor that were necessary as the company went ahead with Design Engineering and Fundraising activities.

Liquidity

We have had minimal operating activity since inception of the company in 2010. Our 2020 short-term obligations are being covered by funding received from convertible notes with a total value of $80,000 issued in 2020.

Net cash used in operating activities was $88,474 for the three months ended March 31, 2020 compared to net cash used in operating activity of 54,152 for the three months ended March 31, 2019.

Net cash used in investing activities was $3,690 in the three months ended March 31, 2020. Net cash Provided by in investing activities for the three months ended March 31, 2019 was $775.

Net cash provided by financing activities was $78,000 in the three months ended March 31, 2020. Net cash provided by financing activities in the three months ended March 31, 2019 was 38,500.

As of March 31, 2020, the Company had inadequate cash to operate its business at the current level for the next six months and to achieve its business goals. The success of our business plan during and beyond the next 6 months will be provided by additional loan financing of a minimum of $300,000.

Overview

Auscrete Corporation was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior housing. This "GREEN" product is the culmination of design and development since the early 1980's. The current technology is the amalgamation of various material stages of Company development, taking an idea to a product and further developing that product to address an ongoing problem in the world's largest marketplace, the quest for affordable, efficient and enduring housing.

Auscrete's structures are monetarily very competitive. A turnkey house, ready to move in sells for around $105 per square foot. That is very competitive in today's market but is brought about by Auscrete's ability to manufacture large panels in mass production format. The house is very quickly constructed on site to produce an attractive and functional site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by insect infestation or rot, it saves extensively on energy costs and has very low maintenance needs.

Financing

Auscrete Corporation, a Wyoming public company was incorporated on December 31, 2009 and initially became effective with the SEC for an IPO on August 16, 2012. The IPO was never exercised and expired.

Subsequently the company had an S-1 become Effective on December 30, 2014. This was not an Offering and not used for fundraising.

The company has been quoted on the OTCQB Bulletin Board under the symbol "ASCK" since February 2019 and is DWAC registered.


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Financial Statements in this document represent the full results of the company during the three-month period to March 31, 2020. There are no "off balance sheet" arrangements.







Marketing

Principal marketing efforts will be initially aimed at leveraging specific contacts and relationships that have developed over the last 12 years since the inception of the founders' pilot plant. The company has interviewed and chosen an experienced sales person who will have the luxury of dealing with existing contacts as well as the multitude of inquiries received every week.

Auscrete's product is also extremely suitable for the construction of commercial and industrial structures. Company marketing will also explore the commercial world for applications and it is believed that such construction will become a large part of the company's future direction.

Operations Management

The Auscrete Team will comprise of a minimal tiered management structure that enables control and knowledge to be firmly at the hands of senior management ensuring rapid and simplified direct reporting to action.

Under control of the CEO will be marketing, manufacturing operations, design architecture and engineering, administration and safety compliance. Additionally, the Construction Manager will oversee Auscrete's own construction activities as well as liaise with contractors and developers.

Operations

Design and Engineering will prepare new design concepts and adapt customer's designs, either residential or commercial, to the Auscrete style of construction as well as preparing all drawings for manufacturing on the production floor.

The construction manager will be responsible for liaising with contractors, developers and other customers to ensure the satisfactory completion of their contract. As well, the company will have its own construction division that will not conflict with other contractors but will enable the company the ability to carry out construction operations where no alternative exists. The construction manager will also oversee these operations.

Future Strategy

Auscrete Corporation intends to position itself as a major supplier in the affordable housing market. Housing is generally considered "affordable" when its cost does not exceed 30 percent of the median family income in a given area. In many parts of the country, housing costs have shown signs of adversely affecting corporations, workers and local economies. Yet, still the availability of affordable housing is becoming increasingly scarce.

The company is promoting a product that will not only make housing affordable but also offers some luxuries as well, such as incorporated heat pump/air conditioning units that would not be available in other houses at such comparable pricing. By constructing with the Auscrete Building System, those luxuries will result in lower cost utilities and a comfortable 'feel' to the living environment, as can be achieved with a product offering excellent thermal and soundproofing qualities as well as superb fire resistance.

Developers and contractors will offer the homes as complete ready constructed site-built units on suitable land. They are NOT and will not be offered under the banner of such categories as 'pre-

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fabricated', 'modular" or 'factory built' homes. They are just plain good value masonry homes built of a time proven product, concrete.

Although Auscrete can economically deliver whole house panel sets as far away as New Mexico or Alberta, Canada, the Company will concentrate mostly on its home markets here in the Northwest where future growth will be achieved by servicing this fast-emerging market in this above average (for affordable housing) evolving area.

The company plans on selling most of its output to developers, contractors and builders who will purchase the complete set of wall, roof and interior panels from Auscrete and use their own construction crews to construct the houses.

The Plant's specialized line equipment installation has been completed with end line product fabrication meeting the Company's expectations in high construction standards.

Housing construction planning is currently in a number of project stages. The Company's Marketing efforts have recently diversified to also include designs of small dwellings sometimes referred to as "Tiny Homes." These structures are 80 - 500 square feet housing units built to fill the gap in urban multi-unit homeless transitional housing. This additional new venture in fabrication fits well with Auscrete's overall model in concrete panel construction for housing and commercial structures.

Auscrete has recently had considerable interest and meaningful conversations with associates of the Veterans Administration in Washington State discussing opportunities with the Company involving the "VA's Homeless Providers Grant" program. This Governmental funding will finance the building of transitional housing to homeless Veterans of the State.

Over the next few weeks, the Company will be manufacturing two current designs of "Tiny Homes" which will include a 324 sq. ft. and 420 sq. ft. home which will be used for a time as display units at two separate locations prior to delivery to their customers.

The Company has also entered into recent discussions between its Marketing division and a builder to furnish panels for another traditional medium size home to be built 32 miles from Auscrete's plant in Washington State.

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