Some of the statements contained in this quarterly report of Ecomat, Inc. (hereinafter the "Company", "We" or the "Registrant") discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use of words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. From time to time, we also may provide forward-looking statements in other materials we release to the public.





Overview

The Company's current business objective is to seek a business combination with an operating company. We intend to use the Company's limited personnel and financial resources in connection with such activities. The Company will utilize its capital stock, debt or a combination of capital stock and debt, in effecting a business combination. It may be expected that entering into a business combination will involve the issuance of restricted shares of capital stock. The issuance of additional shares of our capital stock:

? may significantly reduce the equity interest of our stockholders; ? will likely cause a change in control if a substantial number of our shares of capital stock are issued, and most likely will also result in the resignation or removal of our present officer and director; and ? may adversely affect the prevailing market price for our common stock.

Similarly, if we issued debt securities, it could result in:

? default and foreclosure on our assets if our operating revenues after a business combination were insufficient to pay our debt obligations;

? acceleration of our obligations to repay the indebtedness even if we have made all principal and interest payments when due if the debt security contained covenants that required the maintenance of certain financial ratios or reserves and any such covenants were breached without a waiver or renegotiations of such covenants;

? our inability to obtain additional financing, if necessary, if the debt security contained covenants restricting our ability to obtain additional financing while such security was outstanding.

Results of Operations during the three months ended December 31, 2020 as compared to the three months ended December 31, 2019

We have not generated any revenues during the three months ended December 31, 2020 and 2019. We had total operating expenses of $1,085 related to general and administrative expenses during the three months ended December 31, 2020 compared to $17,239 during the same period in the prior year. We incurred interest expenses of $3,971 during three months ended December 31, 2020 compared to interest expenses of $2,549 during the three months ended December 31, 2019. During the three months ended December 31, 2020 and 2019, we had a net loss of $5,056 and $19,788, respectively. The decrease in our net loss was due to discontinued officer compensation.





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Results of Operations during the six months ended December 31, 2020 as compared to the six months ended December 31, 2019

We have not generated any revenues during the six months ended December 31, 2020 and 2019. We had total operating expenses of $2,609 related to general and administrative expenses during the six months ended December 31, 2019 compared to $37,098 during the same period in the prior year. We incurred interest expenses of $7,917 during six months ended December 31, 2020 compared to interest expenses of $5,512 during the six months ended December 31, 2019. During the six months ended December 31, 2020 and 2019, we had a net loss of $10,526 and $42,610, respectively. The decrease in our net loss was due to discontinued officer compensation.

Liquidity and Capital Resources

At present, the Company has no business operations and no cash resources other than advances provided by our sole Shareholder. Our sole Shareholder and/or an affiliated party have agreed to provide funding as may be required to pay for accounting fees and other administrative expenses of the Company until such time the Company enters into a business combination. The Company would be unable to continue as a going concern without interim financing provided by our sole Shareholder. If we require additional financing, we cannot predict whether equity or debt financing will become available at terms acceptable to us, if at all. At present, the Company has no financial resources to pay for such services and may be required to issue restricted shares in lieu of cash or, in the alternative, issue debt instruments evidencing financial obligations if and when they arise.

During the next 12 months we anticipate incurring costs related to:

? filing of Exchange Act reports.

? registered agent fees and accounting fees, and

? investigating, analyzing and consummating an acquisition or business combination.

On December 30, 2020 and June 30, 2020, we had no current assets. As of December 31, 2020, we had $225,487 in liabilities consisting of accounts payable of $0, advance from a related party of $34,114, accrued interest due to related parties of $26,373 and $165,000 in two convertible notes. As of June 30, 2020, we had $214,961 in liabilities consisting of accounts payable of $3,350, advance from a related party of $28,155, accrued interest due to related parties of $18,456 and a $165,000 in convertible notes.

During the six months ended December 30, 2020, we had negative cash flow from operating activities of $5,959 due to a net loss of $10,526. We financed our negative cash flow from operations through $5,959 in advances from the then CEO. During the six months ended December 30, 2019, we had negative cash flow from operating activities of $5,974 due to a net loss of $42,610 offset by an increase of $36,636 in accounts payable and accrued liabilities. We financed our negative cash flow from operations through $5,974 in advances from our then CEO.

The Company currently plans to satisfy its cash requirements for the next 12 months through borrowings from its sole Shareholder and believes it can satisfy its cash requirements so long as it is able to obtain financing from it. The Company expects that money borrowed will be used during the next 12 months to satisfy the Company's operating costs, professional fees and for general corporate purposes. On September 1, 2017, we formalized a verbal funding agreement and entered into a Loan Agreement with Ivo Heiden, our then sole officer and director, under which we receive funding of up to $100,000 for general operating expenses from time-to-time as needed by the Company. The loan bears an interest rate of 8% per annum and shall be due and payable on a date three hundred sixty-six (366) days from the date of the Loan Agreement. On June 28, 2019, the Loan Agreement was extended to September 1, 2020 and further on May 1, 2020, the Loan Agreement was extended again to September 1, 2021. As of December 31, 2020, the Company has received a total of $34,114 under this Loan Agreement.





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On January 6, 2021, our then sole officer and director Ivo Heiden confirmed and certified the full repayment and cancellation and release of any and all liabilities of us under the loan agreement dated September 1, 2017.

The Company has only limited capital. Additional financing is necessary for the Company to continue as a going concern. Our independent auditors have unqualified audit opinion for the years ended June 30, 2020 and 2019 with an explanatory paragraph on going concern.

Off-Balance Sheet Arrangements

The Company has not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, it has not entered into any derivative contracts that are indexed to its own shares and classified as stockholders' equity, or that are not reflected in its financial statements. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. Moreover, the Company does not have any variable interest in any unconsolidated entity that it provides financing, liquidity, market risk or credit support to or engages in hedging or research and development services with the Company.

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