10-K/A 1 reac007_10ka.htm FORM 10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-K/A

(Amendment No. 1)

(Mark one)

Annual Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934

For the fiscal year ended December 31, 2019

Transition Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934

For the transition period from ______________ to _____________

Commission File Number: 0-53900

Renewable Energy Acquisition Corp.

(Exact name of registrant as specified in its charter)

Nevada		74-3219044
(State of incorporation)		(IRS Employer ID Number)

10935 57^th Avenue North, Plymouth, MN 55442

(Address of principal executive offices)

(952) 541-1155

(Issuer's telephone number)

Securities registered pursuant to Section 12 (b) of the Act - None

Securities registered pursuant to Section 12(g) of the Act: - Common Stock - $0.0001 par value

Indicate by check mark if the registrant is a well known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ¨ No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.

Yes ¨ No x

Indicate by check mark whether the registrant has (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x
Emerging growth company ¨

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 by pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes x No ¨

The aggregate market value of voting and non-voting common equity held by non-affiliates as of June 30, 2019 was approximately $-0- based upon -0- shares held by non-affiliates and no trading market.

As of May 14, 2020, there were 700,000 shares of common stock issued and outstanding.

EXPLANATORY NOTE

The purpose of this Amendment No. 1 to the Company's Annual Report on Form 10-K for the period ended December 31, 2019, filed with the Securities and Exchange Commission on May 14, 2020 (the "Form 10-K"), is solely to include the following information:

1) The following two paragraphs, inserted at the end of Item 1 – Business, General:

On March 27, 2020, the Company filed a Current Report on Form 8-K seeking relief provided by the Securities and Exchange Commission (SEC) Order under Section 36 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), granting exemptions from specified provisions of the Exchange Act, as set forth in SEC Release No. 34-88318 (the “Order”). By filing the Current Report on Form 8-K, the Company is relied on the Order to receive an additional 45 days to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “10-K”). The 10-K would have been due on March 30, 2020.

The Company is dependent on its sole officer/director and primary shareholder to fund the reporting and other expenses of the Company. Circumstances created by the COVID-19 outbreak adversely impacted this individual’s ability to advance funds to the company, and the company did not have the resources to pay its auditors to undertake the audit procedures necessary to file the 10-K in time to file timely.

2) A Table of Contents, inserted after the signature page as page F-1.

3) The Report of Independent Registered Accounting Firm, inserted as page F-2.

Renewable Energy Acquisition Corp.

Form 10-K for the Year Ended December 31, 2019

Index to Contents

		Page Number
Part I
Item 1	Business	4
Item 1A	Risk Factors	7
Item 1B	Unresolved Staff Comments	7
Item 2	Properties	7
Item 3	Legal Proceedings	7
Item 4	Mine Safety Disclosures	7
Part II
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	7
Item 6	Selected Financial Data	8
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	8
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	10
Item 8	Financial Statements and Supplementary Data	10
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	10
Item 9A	Controls and Procedures	10
Item 9B	Other Information	11
Part III
Item 10	Directors, Executive Officers and Corporate Governance	11
Item 11	Executive Compensation	12
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	13
Item 13	Certain Relationships and Related Transactions, and Director Independence	13
Item 14	Principal Accountant Fees and Services	14
Part IV
Item 15	Exhibits, Financial Statement Schedules	15
Signatures		16

Caution Regarding Forward-Looking Information

Certain statements contained in this annual filing, including, without limitation, statements containing the words "believes", "anticipates", "expects" and words of similar import, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include, among others, the following: international, national and local general economic and market conditions: demographic changes; the ability of the Company to sustain, manage or forecast its growth; the ability of the Company to successfully make and integrate acquisitions; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; and other factors referenced in this and previous filings.

Given these uncertainties, readers of this Form 10-K and investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

PART I

Item 1 - Business

General

Renewable Energy Acquisition Corp. (hereinafter referred to as "we", "us", "our", or the "Company") was incorporated in the State of Nevada on June 21, 2007. Since inception, we have been engaged in organizational efforts, and have not generated any revenue to date. We were formed as a vehicle to pursue a merger, capital stock exchange, asset acquisition, or other similar business combination with an operating business in one or more of the renewable energy, energy conservation, energy efficiency, or the environmental industries and their related infrastructures.

We are focused on acquiring a business in one or more of the renewable energy, energy conservation, energy efficiency, or the environmental industries. We have considered a number of specific business combinations but none has reached the point of entering into a binding agreement. We have been approached by candidates (or representative of any candidates) with respect to a possible acquisition transaction with our company, but, again, no binding agreements have been entered into with any candidates. We have not engaged or retained any agent or other representative to identify or locate any suitable acquisition candidate for us.

Renewable Energy Industry and Its Related Infrastructure

The renewable energy industry and its related infrastructure generally includes the production, generation, transmission and distribution of electricity, heat, fuel and other consumable forms of energy through the utilization of renewable fuel sources such as geothermal, biofuels, synfuels, wind, ocean waves, "clean coal," and waste stream pyrolysis (to mention a few); and the infrastructure needed to maintain and operate the facilities, services and installations used in the foregoing areas. Although we may consider a target business in any segment of the renewable energy industry, we currently intend to concentrate our search for an acquisition candidate on companies in the following segments:

Wind electric generation, distribution and transmission;

Solar power;

Co-generation;

Bio-mass;

Synthetic gas production, distribution and transmission;

Energy efficiency and energy conservation related products and services;

Alternative transportation technologies;

Steam generation and distribution;

Alternative transportation technologies;

Energy storage technologies;

Other alternative and renewable energy technologies; and

The development, installation or manufacturing of any of the above.

Development Plan

Based on our proposed business activities, we are a "blank check" company. The U.S. Securities and Exchange Commission (the "SEC") defines "blank check" companies as,

any development stage company that is issuing a penny stock, within the meaning of Section 3(a)(51) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and that has no specific business plan or purpose, or has indicated that its business plan is to merge with an unidentified company or companies.

We also qualify as a "shell company," as defined under Rule 12b-2 adopted by the SEC pursuant to the Exchange Act, because we have no or nominal assets (other than cash) and no or nominal operations. Many states have enacted statutes, rules and regulations limiting the sale of securities of blank check companies in their respective jurisdictions.

Management does not intend to undertake any effort to cause a market to develop in our securities, either debt or equity, until we have successfully concluded a business combination. We intend to comply with the periodic reporting requirements of the Exchange Act for so long as we are subject to those requirements. We were organized as a vehicle to investigate and, if such investigation warrants, acquire a target company or business seeking the advantages of being a reporting company. After the consummation of a business combination with an operating company, the surviving company will continue to be subject to the reporting requirements of the Exchange Act, which may be advantageous when establishing a public market. Furthermore, being a reporting company is required in order to seek a listing on a national exchange.

We have a nominal amount of capital and will depend on our directors to provide us with the necessary funds to implement our business plan. We intend to seek opportunities demonstrating the potential of long-term growth as opposed to short-term earnings. However, at the present time, we have not identified any business opportunity that we plan to pursue, nor have we reached any agreement or definitive understanding with any person concerning an acquisition or merger. The analysis of new business opportunities will be undertaken by or under the supervision of our officers and directors. Our officers and directors will collectively devote approximately five hours per week to searching for a target company until an acquisition candidate is identified and a transaction closed.

We believe that business opportunities may come to our attention from various sources, including, professional advisors such as attorneys, and accountants, securities broker-dealers, venture capitalists, members of the financial community and others who may present unsolicited proposals. We have no plan, understanding, agreements, or commitments with any individual for such person to act as a finder of opportunities for us. We can give no assurances that we will be successful in finding or acquiring a desirable business opportunity, given the limited funds that are expected to be available to us for implementation of our business plan. Furthermore, we can give no assurances that any acquisition, if it occurs, will be on terms that are favorable to us or our current stockholders. Discussions have been held from time to time with potential business combination candidates, and the Company has been paid strandstill fees in connection with Letters of Intent that were entered into regarding potential business combinations. However, as of this date, no Letter of Intent has resulted in any definitive agreement being entered into with any party. We have flexibility in seeking, analyzing and participating in potential business opportunities. In our effort to analyze potential acquisition targets, we will consider the following kinds of factors:

Potential for growth, indicated by new technology, anticipated market expansion or new products;

Competitive position as compared to other firms of similar size and experience within the industry segment as well as within the industry as a whole;

Strength and diversity of management, either in place or scheduled for recruitment;

Capital requirements and anticipated availability of required funds, to be provided from operations, through the sale of additional securities, through joint ventures or similar arrangements, or from other sources;

The cost of participation by us as compared to the perceived tangible and intangible values and potentials;

The extent to which the business opportunity can be advanced;

The accessibility of required management expertise, personnel, raw materials, services, professional assistance, and other required items; and

Other relevant factors.

In applying the foregoing criteria, no one of which will be controlling, management will attempt to analyze all factors and circumstances and make a determination based upon reasonable investigative measures and available data. Potentially available business opportunities may occur in many different industries, and at various stages of development, all of which may make the task of comparative investigation and analysis of such business opportunities difficult and complex. Due to our limited capital available for investigation, we may not discover or be able to fully investigate potential adverse factors concerning the opportunity to be acquired.

Form of Acquisition

The manner in which we participate in an opportunity will depend upon the nature of the opportunity, the respective needs and desires of us and the promoters of the opportunity, and the relative negotiating strength of us and such promoters. It is likely that we will acquire our participation in a business opportunity through the issuance of our common stock or other securities. Although the terms of any such transaction cannot be predicted, it should be noted that in certain circumstances the criteria for determining whether or not an acquisition is a so-called "tax free" reorganization under Section 368(a)(1) of the Internal Revenue Code of 1986, as amended (the "Code"), depends upon whether the owners of the acquired business own 80% or more of the voting stock of the surviving entity. If a transaction were structured to take advantage of these provisions rather than other tax free transaction provisions under the Code, all prior stockholders would retain 20% or less of the total issued and outstanding shares of the surviving entity. Under other circumstances, depending upon the relative negotiating strength of the parties, prior stockholders may retain substantially less than 20% of the total issued and outstanding shares of the surviving entity. This could result in substantial additional dilution to the equity of those who are stockholders prior to the acquisition. Our present stockholders will likely not have control of our majority voting securities following an acquisition transaction. However, our present stockholders will benefit from such a transaction by retaining an equity interest in the surviving company, a cash payment in exchange for outstanding shares, or a combination of both cash and equity. As part of such a transaction, our present directors or officers may resign and one or more new directors or officers may be appointed in connection with the transaction.

In the case of an acquisition, the transaction may be accomplished upon the sole determination of management without any vote or approval by stockholders. In the case of a statutory merger or consolidation directly involving us, it will likely be necessary to call a stockholders' meeting and obtain the approval of the holders of a majority of the outstanding securities. The necessity to obtain such stockholder approval may result in delay and additional expense in the consummation of any proposed transaction and will also give rise to certain appraisal rights to dissenting stockholders. Most likely, management will seek to structure any such transaction so as not to require stockholder approval. It is anticipated that the investigation of specific business opportunities and the negotiation, drafting and execution of relevant agreements, disclosure documents and other instruments will require management time and attention and substantial cost for accountants, attorneys and others. If a decision is made not to participate in a specific business opportunity, the costs theretofore incurred in the related investigation might not be recoverable. Furthermore, even if an agreement is reached for the participation in a specific business opportunity, the failure to consummate that transaction may result in the loss to us of the related costs incurred.

Employees

The Company currently has no employees. Management of the Company expects to use consultants, attorneys and accountants as necessary, and does not anticipate a need to engage any full-time employees so long as it is seeking and evaluating business opportunities. The need for employees and their availability will be addressed in connection with the decision whether or not to acquire or participate in specific business opportunities.

Where You Can Find Information

We are required to file with the Securities and Exchange Commission (“SEC”) annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports of certain events on Form 8-K, and proxy and information statements disseminated to stockholders in connection with meetings of stockholders and other stockholder actions. The Company does not maintain an internet website. The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including the reports filed by the Company. The address of that site is http://www.sec.gov\.

Item 1A - Risk Factors

The COVID-19 outbreak may adversely impact our ability to implement our business plan

As a shell company, we have no specific business plan or purpose other than to merge with an unidentified company or companies. The outbreak of the coronavirus (COVID-19) has resulted in travel restrictions, the shutdown of businesses, quarantines, market downturns, and other mandatory and voluntary changes in behavior related to the pandemic. Reverse merger transactions involving shell companies often involve a contemporaneous funding event. The resulting impacts of the COVID-19 outbreak mentioned above may adversely impact our ability to find a willing merger partner in the near future. If we are able to attract a merger partner, our ability to conduct proper due diligence may be hindered, and finally, if we do enter into an agreement with at suitable target, we may not be able to find investors willing to fund the transaction. The extent to which the coronavirus impacts our results will depend on future developments, which are highly uncertain.

Item 1B - Unresolved Staff Comments

None

Item 2 - Properties

The Company currently maintains a mailing address at 10935 57^th Avenue North, Plymouth, Minnesota 55442. The Company’s telephone number there is (952) 541-1155. Other than this mailing address, the Company does not currently maintain any other office facilities, and does not anticipate the need for maintaining office facilities at any time in the foreseeable future. The Company pays no rent or other fees for the use of the mailing address as these offices are used virtually full-time by other businesses of the Company’s executive officer and director.

It is likely that the Company will not establish an office until it has completed a business acquisition transaction, but it is not possible to predict what arrangements will actually be made with respect to future office facilities.

Item 3 - Legal Proceedings

The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated.

Item 4 - Mine Safety Disclosures

Not applicable to the Company.

PART II

Item 5 - Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market for Trading and Eligibility for Future Sale

Our common stock is not trading on any stock exchange or over-the-counter. We are not aware of any market activity in our common stock since its inception through the date of this filing.

Holders

As of May 14, 2020, there were four stockholders of record, who owned all of the 700,000 shares of our common stock issued and outstanding.

Transfer Agent

The Company operates as its own transfer agent.

Dividends

We have not paid any cash dividends to date and do not anticipate or contemplate paying dividends in the foreseeable future. It is the present intention of management to utilize all available funds for the development of our business.

Securities Authorized for Issuance Under Equity Compensation Plans

We do not have compensation plans under which equity securities are authorized for issuance to any person.

Item 6 - Selected Financial Data

Not applicable

Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

Caution Regarding Forward-Looking Information

General

Renewable Energy Acquisition Corp. was incorporated on June 21, 2007 under the laws of the State of Nevada to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business in either the renewable energy or the environmental industry and their related infrastructures. As we have not had substantial operations or substantial assets since inception, the Company is considered in the development stage.

During calendar year 2015, we accepted $7,500 in “standstill” payments from an unrelated third party in anticipation of conducting due diligence and negotiating an agreement related to a potential acquisition. In addition, we agreed not to enter into discussions or negotiations with any other acquisition target for a period of at least 30 days. We did not reach an agreement and effort to make an agreement has been abandoned.

Results of Operations

We had no operating revenue for either of the years ended December 31, 2019 or 2018, respectively.

Operating expenses for each of the years ended December 31, 2019 and 2018 were $22,033 and $16,736, respectively. These expenses were directly related to the maintenance of the corporate entity and the preparation and filing of periodic reports pursuant to the Exchange Act. Earnings (loss) per share for the respective years ended December 31, 2019 and 2018 were $(0.04) and $(0.03), respectively, based on the weighted-average shares issued and outstanding at the end of each respective period.

It is anticipated that future expenditure levels will remain relatively consistent until such time that the Company completes a business combination transaction. Upon completion of a business combination transaction, it is anticipated that the Company’s expenses will increase significantly.

The Company does not expect to generate any meaningful revenue or incur operating expenses for purposes other than fulfilling the obligations of a reporting company under the Exchange Act unless and until such time that the Company begins meaningful operations.

Plan of Business

Our development plan, form of acquisition and a discussion of the renewable energy industry and its related infrastructure is more fully discussed in Part 1, Item 1 of this filing.

Liquidity and Capital Resources

Our cash used in operating activities for the year ended December 31, 2019 was $9,584 that primarily reflects our net loss of $25,768, change in accounts payable of $11,533, and change in interest payable of $2,963, compared to $17,715 for the year ended December 31, 2018, that mainly reflects our net loss of $20,466, change in accounts payable of $1,785, and change in interest payable of $2,654. Our cash provided by financing activities for the year ended December 31, 2019 was $7,950, compared to $17,500 for the year ended December 31, 2018. For the year ended December 31, 2019, the Company repaid short term advances of $5,000 and received proceeds from notes payable from a stockholder of $9,800 as well as notes payable of $3,150, compared to proceeds from short term advances of $17,000 and cash received from notes payable to stockholders of $500 for the year ended December 31, 2018.

At December 31, 2019 and 2018, the Company had working capital deficit of approximately $(140,000) and $(114,000), respectively; inclusive of short term loans of $12,000 and $17,000 respectively at December 31, 2019 and 2018, notes payable of $3,150 at December 31, 2019, and stockholder debt of approximately $75,469 and $65,669, respectively, at December 31, 2019 and 2018.

It is the belief of management and significant stockholders that they will provide sufficient working capital necessary to support and preserve the integrity of the corporate entity. However, there is no legal obligation for either management or significant stockholders to provide additional future funding. Further, the Company is at the mercy of future economic trends and business operations for the Company’s majority stockholder to have the resources available to support the Company. Should this pledge fail to provide financing, the Company has not identified any alternative sources. Consequently, there is substantial doubt about the Company's ability to continue as a going concern.

The Company's need for working capital may change dramatically as a result of any business acquisition or combination transaction. There can be no assurance that the Company will identify any such business, product, technology or company suitable for acquisition in the future. Further, there can be no assurance that the Company would be successful in consummating any acquisition on favorable terms or that it will be able to profitably manage the business, product, technology or company it acquires.

The Company has no current plans, proposals, arrangements or understandings with respect to the sale or issuance of additional securities prior to the location of a merger or acquisition candidate. Accordingly, there can be no assurance that sufficient funds will be available to the Company to allow it to cover the expenses related to such activities.

Critical Accounting Policies

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (“GAAP”). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

Our significant accounting policies are summarized in Note D of our financial statements. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the periods presented in this report.

Item 7A - Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 8 - Financial Statements and Supplementary Data

The required financial statements begin on page F-1 of this document.

Item 9 - Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None

Item 9A - Controls and Procedures

Disclosure Controls and Procedures. Our management, under the supervision and with the participation of our Chief Executive and Financial Officer (Certifying Officer), has evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15 promulgated under the Exchange Act as of the end of the period covered by this Annual Report. Disclosure controls and procedures are controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and include controls and procedures designed to ensure that information we are required to disclose in such reports is accumulated and communicated to management, including our Certifying Officer, as appropriate, to allow timely decisions regarding required disclosure. Based upon that evaluation, our Certifying Officer concluded that as of such date, our disclosure controls and procedures were not effective to ensure that the information required to be disclosed by us in our reports is recorded, processed, summarized and reported within the time periods specified by the SEC due to a weakness in our controls described below. However, our Certifying Officer believes that the financial statements included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the respective periods presented.

Management’s Annual Report on Internal Control over Financial Reporting. Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act.

Internal control over financial reporting is defined under the Exchange Act as a process designed by, or under the supervision of, our CEO and CFO and effected by our board of directors, management and other personnel, 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 and includes those policies and procedures that:

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitation, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluations of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate. Accordingly, even an effective system of internal control over financial reporting will provide only reasonable assurance with respect to financial statement preparation.

Management's assessment of the effectiveness of the Company's internal control over financial reporting as of the year ended December 31, 2019 has determined that we are currently considered to be a shell company in as much as we have no specific business plans, no operations, revenues or employees. Because we have only one executive operating officer, the Company's internal controls are deficient for the following reasons, (1) there are no entity level controls because there is only one person serving in the dual capacity of Chief Executive Officer and Chief Financial Officer, (2) there are no segregation of duties as that same person approves, enters, and pays the Company's bills, and (3) there is no separate audit committee. As a result, the Company's internal controls have an inherent weakness, which may increase the risks of errors in financial reporting under current operations and accordingly are deficient as evaluated against the criteria set forth in the Internal Control - Integrated Framework issued by the committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation, our management concluded that our internal controls over financial reporting were not effective as of December 31, 2019.

This Annual Report does not include an attestation report of our registered public accounting firm regarding our internal control over financial reporting because it is not required under applicable regulations.

Changes in Internal Control over Financial Reporting.

There was no change in our internal control over financial reporting that occurred during the year ended December 31, 2019, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting which internal controls will remain deficient until such time as the Company completes a merger transaction or acquisition of an operating business at which time management will be able to implement effective controls and procedures.

Item 9B - Other Information

Not applicable.

PART III

Item 10 - Directors, Executive Officers and Corporate Governance

The directors and executive officers serving the Company are as follows:

Name	Age	Position Held and Tenure
Craig S. Laughlin	70	President, Chief Executive Officer
		Chief Financial Officer and Director

Our director serves for a term beginning with election and ending with resignation, removal by the stockholders, or election of a successor by the stockholders. Executive officers serve by appointment at the discretion of the board of directors.

CRAIG S. LAUGHLIN, PRESIDENT, CHIEF EXECUTIVE OFFICER, AND DIRECTOR.

Mr. Laughlin, a significant stockholder, officer and director, is the founder and President of SRC Funding, LLC, a privately-owned Minnesota company engaged in business consulting services and private investment activity.

Mr. Laughlin served as president and a director, of Vegalab, Inc. (“Vegalab”) (formerly HPC Acquisitions, Inc.), a publicly-owned Nevada corporation until December, 2019. Subsequent to Mr. Laughlin’s resignation, the company surrendered its inventory and other assets to a secured creditor and became inactive. Vegalab, Inc. was engaged in the business of distributing eco-friendly agro-products. .

Compliance With Section 16(a) of the Exchange Act

Section 16(a) of the Exchange Act requires our executive officers and directors and person who own more than 10% of our common stock to file reports regarding ownership of and transactions in our securities with the Commission and to provide us with copies of those filings. Based solely on our review of the copies received by or a written representation from certain reporting persons we believe that during fiscal year ended December 31, 2019, we believe that all eligible persons are in compliance with the requirements of Section 16(a).

Code of Ethics

The Company has not adopted a code of ethics. Since the Company has no employees and one person serving as the sole executive and financial officer, as well as being a director, a code of ethics would have no practical benefit due to the lack of any meaningful reporting or accountability process.

Item 11 - Executive Compensation

Executive Officers

No officer or director has received any compensation from us. Until we consummate a business combination, it is not anticipated that any officer or director will receive compensation from us.

We have no stock option, retirement, pension, or profit-sharing programs for the benefit of directors, officers or other employees.

Our board of directors appoints our executive officers to serve at the discretion of the board. Craig S. Laughlin is our sole operating officer and a director. Our directors receive no compensation from us for serving on the board. Until we consummate a business combination, we do not intend to reimburse our officers or directors for travel and other expenses incurred in connection with attending the board meetings or for conducting business activities.

Executive Compensation

Craig S. Laughlin has received no compensation from us nor have we accrued any cash or non-cash compensation for his services since he was elected as an officer and director. The current management and oversight of the Company requires less than four hours per month. In future periods, subsequent to the consummation of a business combination transaction, the Company anticipates that it will pay compensation to its officer(s) and/or director(s).

We do not have any employment or consulting agreements with any parties nor do we have a stock option plan or other equity compensation plans.

SUMMARY COMPENSATION TABLE

Name and Principal Position	Year	Salary ($)		Total ($)
Craig S. Laughlin,	2019	$	-0-	$	-0-
Principal Executive Officer	2018	$	-0-	$	-0-

Item 12 - Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table sets forth, as of the date of this Annual Report, the number of shares of Common Stock owned of record and beneficially by executive officers, directors and persons who hold 5% or more of the outstanding Common Stock of the Company. Also included are the shares held by all executive officers and directors as a group.

			Shares Beneficially Owned
Name and address	Number of Shares		Percentage (1)

Craig S. Laughlin (2)		640,000		91.4	%
10935 57th Avenue No.
Plymouth, Minnesota 55442

All Executive officers and Directors as a Group (1 person)		640,000		91.4	%

(1)

On May 14, 2020, there were 700,000 shares of our common stock outstanding and no shares of preferred stock issued and outstanding. We have no outstanding stock options or warrants.

(2)

The number of shares held by Mr. Laughlin includes 51,000 shares over which he may be deemed to have shared voting and investment control because they are held by his spouse.

Item 13 - Certain Relationships and Related Transactions, and Director Independence

Relationships and Transactions

During 2019, Craig Laughlin, an officer and director, advanced to us $9,800 to support the Company’s working capital needs, which is in addition to advances made in prior periods. The total amount of advances at the end of 2019 was $75,469. These loans are due upon demand and bear interest at 6.0% per annum.

During 2018, Craig Laughlin, an officer and director, advanced to us $500 to support the Company’s working capital needs, which is in addition to advances made in prior periods. The total amount of advances at the end of 2018 was $65,669. These loans are due upon demand and bear interest at 6.0% per annum.

During 2017, Craig Laughlin, an officer and director, advanced to us $3,275 to support the Company’s working capital needs, which is in addition to advances made in prior periods. The total amount of advances at the end of 2017 was $65,169. These loans are due upon demand and bear interest at 6.0% per annum

On September 23, 2016, we issued 537,625 shares of common stock to Mr. Laughlin, in consideration for the conversion and cancellation of $5,376.25 of note payment obligations owed by us to Mr. Laughlin.

Director Independence

The Board of Directors has determined that none of its directors is "independent" under the criteria set forth in Rule 5065(a)(2) of the Nasdaq Listing Rules. The board does not have a separately designated audit, nominating, or compensation committee, so the functions normally attributed to these committees are performed by the entire board. Accordingly, none of our directors is "independent" under applicable Nasdaq Listing Rules that define independence for purposes of directors performing the functions of such committees.

Item 14 - Principal Accountant Fees and Services

The Company’s financial statements are audited annually by an independent registered public accounting firm. For the year ended December 31, 2018 and December 31, 2019, the audit was performed by Rosenberg Rich Baker Berman, P.A. (“RRBB”) and for the year ended December 31, 2017, the audit was performed by GBH CPA’s PC (“GBH”). Fees for professional services provided by the principal accountants for the fiscal years ended December 31, 2019 and 2018, were as follows:

	RRBB		RRBB		GBH
	Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,
	2019		2018		2018
1. Audit fees	$	4,250	$	4,000	$	9.000
2. Audit-related fees		-				-
3. Tax fees		-				-
4. All other fees		-				-
Totals	$	4,250	$	4,000	$	9,000

We have considered whether the provision of any non-audit services, currently or in the future, is compatible with RRBB maintaining its independence and have determined that these services do not compromise their independence.

Financial Information System Design and Implementation: RRBB did not charge us any fees for financial information system design and implementation fees.

We have no formal audit committee. However, the entire Board of Directors (Board) is the Company's defacto audit committee. In discharging its oversight responsibility as to the audit process, the Board obtained from the independent auditors a formal written statement describing all relationships between us and the auditors that might bear on the auditors' independence as required by the appropriate Professional Standards issued by the Public Company Accounting Oversight Board, the U. S. Securities and Exchange Commission and/or the American Institute of Certified Public Accountants. The Board discussed with the auditors any relationships that may impact their objectivity and independence, including fees for non-audit services, and satisfied itself as to the auditors' independence. The Board also discussed with management, the internal auditors and the independent auditors the quality and adequacy of our internal controls.

The Company’s principal accountant, RRBB, did not engage any other persons or firms other than the principal accountant’s full-time, permanent employees.

Item 15 - Exhibits and Financial Statement Schedules

3.1	Articles of Incorporation (*)
3.1(a)	Certificate of Change filed Pursuant to NRS 78.209 (**)
3.2	By-Laws (*)

31.1	Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
32.1	Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
101	Interactive data files pursuant to Rule 405 of Regulation S-T.

(*)	Incorporated by reference to the Company’s Registration Statement on Form 10 filed on March 3, 2010.
(**)	Incorporated by reference to the Company’s Report on Form 8-K filed September 26, 2016.
(***)	Incorporated by reference to the Company’s Report on Form 8-K filed February 19, 2019.
(****)	Incorporated by reference to the Company’s Report on Form 8-K filed August 13, 2018.

(Signatures follow on next page)

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Renewable Energy Acquisition Corp.
Dated: May 20, 2020		/s/ Craig S. Laughlin
		Craig S. Laughlin
		President, Chief Executive Officer
		Chief Financial Officer and Director

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates as indicated.

Dated: May 20, 2020		/s/ Craig S. Laughlin
		Craig S. Laughlin
		President, Chief Executive Officer
		Chief Financial Officer and Director

Renewable Energy Acquisition Corp.

Contents

	Page
Report of Independent Registered Public Accounting Firm	F-2
Financial Statements
Balance Sheets as of December 31, 2019 and 2018	F-3
Statements of Operations for the years ended December 31, 2019 and 2018	F-4
Statements of Changes in Stockholders' Deficit for the Years Ended December 31, 2019 and 2018	F-5
Statements of Cash Flows for the Years Ended December 31, 2019 and 2018	F-6
Notes to Financial Statements	F-7

F-1

www.rrbb.com

ROSENBERG RICH BAKER BERMAN & COMPANY

265 Davidson Avenue, Suite 210 · Somerset, NJ 08873-4120 · phone 908-231-1000 · fax 908-231-6894

111 Dunnell Road, Suite 100 · Maplewood, NJ 07040 · phone 973-763-6363 · fax 973-763-4430

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Renewable Energy Acquisition Corp.

Plymouth, Minnesota

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Renewable Energy Acquisition Corp, (the Company) as of December 31, 2019 and 2018, and the related statements of operations, stockholders’ deficit, and cash flows for each of the years in the two- year period ended December 3 1,2019, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Other Matters

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note C to the financial statements, the Company operating history, limited cash on hand, no operating assets and has a business plan with inherent risk that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note C. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

We have served as the Company’s auditor since 2019.

Somerset, New Jersey

May 13, 2020

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CENTER FOR AUDIT QUALITY • PRIVATE COMPANIES PRACTICE SECTION • PRIME GLOBAL • REGISTERED WITH THE PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD

F-2

Renewable Energy Acquisition Corp.

Balance Sheets

December 31, 2019 and 2018

	December 31,			December 31,
	2019			2018
ASSETS
Current Assets
Cash and cash equivalents	$	29		$	1,663
Prepaid expenses		-			1,688
Total Current Assets	$	29		$	3,351

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable - trade	$	38,169		$	26,636
Short-term advances		12,000			17,000
Notes payable to stockholders		75,469			65,669
Notes payable		3,150			-
Accrued interest payable to stockholders		11,384			8,458
Accrued interest payable		37			-

Total Current Liabilities		140,209			117,763

Commitments and Contingencies

Stockholders' Deficit
Preferred stock - $0.001 par value; 5,000,000 shares authorized; none issued and outstanding		-			-
Common stock - $0.001 par value; 5,000,000 shares authorized; 700,000 shares issued and outstanding		70			70
Additional paid-in capital		63,586			63,586
Accumulated deficit		(203,836	)		(178,068	)

Total Stockholders' Deficit		(140,180	)		(114,412	)

Total Liabilities and Stockholders’ Deficit	$	29		$	3,351

The accompanying notes are an integral part of these financial statements

F-3

Renewable Energy Acquisition Corp.

Statements of Operations

For The Years Ended December 31, 2019 and 2018

	Year Ended			Year Ended
	December 31,			December 31,
	2019			2018

Revenues	$	-		$	-

Operating expenses
Professional fees		15,340			11,847
Other expenses		6,693			4,889

Total operating expenses		22,033			16,736

Loss from operations		(22,033	)		(16,736	)

Other income (expense)

Other income / (expenses):
Gain on vendor settlement		2,500			-
Interest expense		(3,485	)		(1,074	)
Interest expense - related party		(2,750	)		(2,656	)
Total other income / (expenses):		(3,735	)		(3,730	)

Loss before provision for income taxes		(25,768	)		(20,466	)

Provision for income taxes		-			-


Net loss	$	(25,768	)	$	(20,466	)

Net loss per weighted-average share of common stock outstanding - basic and diluted	$	(0.04	)	$	(0.03	)

Weighted-average number of shares of common stock outstanding - basic and diluted		700,000			700,000

The accompanying notes are an integral part of these financial statements

F-4

Renewable Energy Acquisition Corp.

Statements of Changes in Stockholders’ Deficit

For The Years Ended December 31, 2019 and 2018

	Common Stock				Additional
	Shares		Amount		paid in capital		Accumulated deficit			Total

Balance as of December 31, 2017		700,000	$	70	$	63,586	$	(157,602	)	$	(93,946	)

Net loss		-		-		-		(20,466	)		(20,466	)

Balance at December 31, 2018		700,000	$	70	$	63,586	$	(178,068	)	$	(114,412	)

Contributed capital from non-interest bearing notes payable to stockholders		-		-				-			-

Net loss		-		-		-		(25,768	)		(25,768	)

Balance at December 31, 2019		700,000	$	70	$	63,586	$	(203,836	)	$	(140,180	)

F-5

Renewable Energy Acquisition Corp.

Statements of Cash Flows

For The Years Ended December 31, 2019 and 2018

	Year Ended			Year Ended
	December 31,			December 31,
	2019			2018
Cash Flows from Operating Activities
Net loss	$	(25,768	)	$	(20,466	)
Adjustments to reconcile net loss to net cash used in operating activities
Interest expense contributed as capital by stockholders		-			-
Increase (decrease) in
Prepaid expenses		1,688			(1,688	)
Accounts payable - trade		11,533			1,785
Accrued interest payable		2,963			2,654

Net cash used in operating activities		(9,584	)		(17,715	)

Cash Flows from Financing Activities
Cash received from short-term advances		-			17,000
Repayment of short-term advances		(5,000	)		-
Cash received from notes payable		3,150			-
Cash received from notes payable to stockholders		9,800			500

Net cash provided by financing activities		7,950			17,500

Decrease in cash and cash equivalents		(1,634	)		(215	)

Cash at beginning of period		1,663			1,878

Cash at end of period	$	29		$	1,663

Supplemental Disclosure of Interest and Income Taxes Paid
Interest paid during the period	$	3,272		$	1,076
Income taxes paid during the period	$	-		$	-

The accompanying notes are an integral part of these financial statements.

F-6

Renewable Energy Acquisition Corp.

Notes to Financial Statements

December 31, 2019 and 2018

Note A - Background and Description of Business

Renewable Energy Acquisition Corp. (the “Company”) was incorporated on June 21, 2007 under the laws of the State of Nevada.

The Company was formed as a blank check company to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business in either the renewable energy or the environmental industry and their related infrastructures. To date, the Company’s efforts have been limited to organizational activities.

Note B - Preparation of Financial Statements

The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles and has elected a year-end of December 31.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented

For segment reporting purposes, the Company operated in only one industry segment during the periods represented in the accompanying financial statements and makes all operating decisions and allocates resources based on the best benefit to the Company as a whole.

Note C - Going Concern Uncertainty

The Company was formed to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business in either the renewable energy or the environmental industry and their related infrastructures. To date, the Company’s efforts have been limited to organizational activities. There is no assurance that the Company will be able to successful in the implementation of this business plan.

The Company has no operating history, limited cash on hand, no operating assets and has a business plan with inherent risk. Because of these factors., Management has determined there is substantial doubt about our ability to continue as a going concern exists from the twelve months following the issuance of these financial statements.

Because of the Company's lack of operating assets, the Company’s continuance is fully dependent upon either future sales of securities and/or advances or loans from significant stockholders or corporate officers to provide sufficient working capital to preserve the integrity of the corporate entity during the development phase.

The Company's continued existence is dependent upon its ability to implement its business plan, generate sufficient cash flows from operations to support its daily operations, and provide sufficient resources to retire existing liabilities and obligations on a timely basis. The Company faces considerable risk in its business plan and a potential shortfall of funding due to our uncertainty to raise adequate capital in the equity securities market.

F-7

The Company is dependent upon existing cash balances to support its day-to-day operations. In the event that working capital sufficient to maintain the corporate entity and implement our business plan is not available, the Company’s existing controlling stockholders intend to maintain the corporate status of the Company and provide all necessary working capital support on the Company's behalf. However, no formal commitments or arrangements to advance or loan funds to the Company or repay any such advances or loans exist. There is no legal obligation for either management or existing controlling stockholders to provide additional future funding. Further, the Company is at the mercy of future economic trends and business operations for the Company’s existing controlling stockholders to have the resources available to support the Company.

The Company anticipates offering future sales of equity securities. However, there is no assurance that the Company will be able to obtain additional funding through the sales of additional equity securities or, that such funding, if available, will be obtained on terms favorable to or affordable by the Company.

The Company’s Articles of Incorporation authorizes the issuance of up to 5,000,000 million shares of preferred stock and 5,000,000 shares of common stock. The Company’s ability to issue preferred stock may limit the Company’s ability to obtain debt or equity financing as well as impede the implementation of the Company’s business plan. The Company’s ability to issue these authorized but unissued securities may also negatively impact our ability to raise additional capital through the sale of our debt or equity securities.

In such a restricted cash flow scenario, the Company would be unable to complete its business plan steps, and would, instead, delay all cash intensive activities. Without necessary cash flow, the Company may become dormant during the next twelve months, or until such time as necessary funds could be raised in the equity securities market.

While the Company is of the opinion that good faith estimates of the Company’s ability to secure additional capital in the future to reach its goals have been made, there is no guarantee that the Company will receive sufficient funding to sustain operations or implement any future business plan steps.

Note D - Summary of Significant Accounting Policies

Cash and cash equivalents

The Company considers all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Income taxes

The Company files income tax returns in the United States of America and various states, as appropriate and applicable. The Company is no longer subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for any period prior to January 1, 2017.

The Company uses the asset and liability method of accounting for income taxes. At December 31, 2019 and 2018, the deferred tax asset and deferred tax liability accounts, as recorded when material to the financial statements, are entirely the result of temporary differences. Temporary differences generally represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily accrued interest.

Recognition of potential liabilities are required as a result of management’s acceptance of potentially uncertain positions for income tax treatment on a “more-likely-than-not” probability of an assessment upon examination by a respective taxing authority. The Company has no liability for uncertain tax positions.

F-8

Income (loss) per share

Basic earnings (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the respective period presented in our accompanying financial statements.

Fully diluted earnings (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company’s net income (loss) position at the calculation date.

As of December 31, 2019 and 2018, respectively, the Company did not have any outstanding items which could be deemed to be dilutive.

Reclassifications

Certain amounts for prior periods have been reclassified to conform to the current presentation., specifically the effects of prior year interest expense classification on short term advances here.

New and Pending Accounting Pronouncements

The Company is of the opinion that any and all pending accounting pronouncements, either in the adoption phase or not yet required to be adopted, will not have a significant impact on the Company's financial position or results of operations.

Subsequent Events

Management has evaluated all activity of the Company through May 13, 2020 the issue date of the financial statements for disclosure purposes.

Note E - Fair Value of Financial Instruments

The carrying amount of cash, prepaid expenses, short term advances and notes payable, as applicable, approximates fair value due to the short term nature of these items and/or the current interest rates payable in relation to current market conditions.

Interest rate risk is the risk that the Company’s earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates. The Company does not use derivative instruments to moderate its exposure to interest rate risk, if any.

Financial risk is the risk that the Company’s earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates. The Company does not use derivative instruments to moderate its exposure to financial risk, if any.

F-9

Note F - Income Taxes

The components of income tax (benefit) expense for the each of the years ended December 31, 2019 and 2018, are as follows:

		Year Ended		Year Ended
		December 31,		December 31,
		2019		2018
Federal:
Current	$	-	$	-
Deferred		-		-
		-		-
State:
Current		-		-
Deferred		-		-
		-		-

Total	$	-	$	-

As of December 31, 2019, the Company had an aggregate net operating loss carryforward(s) to offset future taxable income of approximately $181,000. The amount and availability of any net operating loss carryforward(s) will be subject to the limitations set forth in the Internal Revenue Code. Such factors as the number of shares ultimately issued within a three-year look-back period; whether there is a deemed more than 50% change in control; the applicable long-term tax exempt bond rate; continuity of historical business; and subsequent income of the Company all enter into the annual computation of allowable annual utilization of any net operating loss carryforward(s).

The Company's income tax (benefit) expense for the each of the years ended December 31, 2019 and 2018, are as follows:

	Year Ended			Year Ended
	December 31,			December 31,
	2019			2018

Statutory rate applied to loss before income taxes	$	(4,826	)	$	(3,740	)
Increase (decrease) in income taxes resulting from:
State income taxes		-			-
Reserve for deferred tax asset		4,826			3,740

Income tax expense	$	-		$	-

The Company’s only temporary difference due to statutory requirements in the recognition of assets and liabilities for tax and financial reporting purposes, as of December 31, 2019 and 2018, respectively, relate solely to the Company’s net operating loss carryforward(s) and non-deductible interest expense. These differences give rise to the financial statement carrying amounts and tax bases of assets and liabilities causing either deferred tax assets or liabilities, as necessary, as of December 31, 2019 and 2018:

	December 31,		December 31,
	2019		2018
Deferred tax assets
Net operating loss carryforwards	$	37,991	$	33,165
Less valuation allowance		(37,991)		(33,165	)

Net Deferred Tax Asset	$	-	$	-

F-10

	Year Ended			Year Ended
	December 31,			December 31,
	2019			2018

Net loss before taxes per financial statements	$	(25,768	)	$	(20,466	)
Temporary differences		2,787			2,656
Taxable amount		(22,981	)		(17,810	)
Income tax rate		21	%		21	%
Income tax benefit at statutory rate		(4,826	)		(3,740	)
Impact of change in tax rates		-			-
Change in valuation allowance		4,826			3,740
Provision for income taxes	$	-		$	-

During the each of the years ended December 31, 2019 and 2018, the valuation allowance for the deferred tax asset changed by $4,826 and $3,740, respectively.

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”). Corporate taxpayers may carryback net operating losses (NOLs) originating between 2018 and 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act.

The Company is currently evaluating the potential effects from the enactment of the CARES Act in 2020.

Note G - Notes Payable

During 2019, a non related party loaned an aggregate $3,150 in cash to the Company to support operations. These advances are due upon demand and bear interest at 6.0% per annum. As of December 31, 2019 accrued interest amounted to $37.

Note H - Notes Payable to Stockholders

During 2018, the majority stockholder loaned an additional aggregate $500 in cash to the Company to support operations. These advances are due upon demand and bear interest at 6.0% per annum.

During 2019, the majority stockholder loaned an additional aggregate $9,800 in cash to the Company to support operations. These advances are due upon demand and bear interest at 6.0% per annum.

The Company has accrued interest payable to the majority stockholder aggregating $11,384 and $8,458 as of December 31, 2019 and 2018, respectively.

As of December 31, 2019 and 2018, the outstanding aggregate balances payable to stockholders were as follows:

	December 31,		December 31,
	2019		2018

Notes payable	$	75,469	$	65,669
Accrued interest payable		11,384		8,458

Total due stockholders	$	86,853	$	74,127

F-11

Note J - Contingency

During 2015, the Company accepted an aggregate $7,500 in “stand still” payments from an unrelated third party.

During the year ended December 31, 2018, the Company borrowed $17,000 in advances from credit card lines of credit. During the year ended December 31, 2019 the Company repaid $5,000 leaving a balance of $12,000 at December 31, 2019. The weighted average interest rate on these borrowings is approximately 27%. The unused credit limit on cash advances totaled approximately $ 8,380.

Note K – Short Term Advances

During the year ended December 31, 2018, the Company borrowed $17,000 in advances from credit card lines of credit. During the year ended December 31, 2019 the Company repaid $5,000 leaving a balance of $12,000 at December 31, 2019. The weighted average interest rate on these borrowings is approximately 17%. The unused credit limit on cash advances totaled approximately $13,650. During the year ended December 31, 2019 the Company recorded interest expense of should be $3,488 on these advances.

Note L - Subsequent Events

Management has evaluated all activity of the Company through May 14, 2020 the issue date of the financial statements for disclosure purposes. The Company borrowed $4,600 from the majority shareholder during the period from January 1, 2020 through April 17, 2020.

On March 11, 2020, the World Health Organization declared the new strain of the coronavirus (COVID-19) a global pandemic. Federal, state, and local governments have since implemented various restrictions, including travel restrictions, border closings, restrictions on public gatherings, quarantining of people who may have been exposed to the virus, shelter-in-place restrictions and limitations on business operations. While this uncertain matter may negatively impact the results of operations, cash flows and financial position of the Company in the future, the related financial impact cannot be reasonably estimated at this time.

On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act is intended to bring relief to certain industries and many businesses by providing much-needed liquidity in this time of uncertainty. State and local governments may pass similar tax legislation. An entity that plans to take advantage of active measures taken by the government to provide financial assistance in the form of grants, loans, or subsidies should include the expected effects of these actions in its mitigating plans.

F-12