10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2013

OR

[    ] TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

From the transition period from ___________ to ____________.

Commission File Number 333-150829

HALL TEES, INC.

(Exact name of small business issuer as specified in its charter)

Nevada	26-0875401
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

7405 Armstrong, Rowlett, Texas 75088

(Address of principal executive offices)

  (214) 883-0140

(Issuer's telephone number)

N/A

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

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

Large Accredited Filer	[   ]	Accelerated Filer	[   ]
Non-Accredited Filer	[   ]	Smaller Reporting Company	[X]

Indicate by a check mark whether the company is a shell company (as defined by Rule 12b-2 of the Exchange Act:  Yes []   No [  X  ].

Indicate by check mark whether the registrant has submitted electronically and posted on its website, if any, every Interactive File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (SS325.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files), Yes [ ] No [X ]

As of November 18, 2013, there were 7,755,400 shares of Common Stock of the issuer outstanding.

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TABLE OF CONTENTS

	PART I FINANCIAL STATEMENTS
Item 1	Financial Statements (Unaudited)	3
Item 2	Management's Discussion and Analysis or Plan of Operation	11
Item 3	Quantitative and Qualitative Disclosures about Market Risk	13
Item 4	Controls and Procedures	13
	PART II OTHER INFORMATION
Item 4	Mine Safety Disclosures	14
Item 6	Exhibits and Reports on Form 8-K	14

2

HALL TEES, INC.

Condensed Consolidated Balance Sheets

September 30, 2013 and December 31, 2012

(Unaudited)

	2013			2012
ASSETS
Current Assets
Cash and Cash Equivalents	$	62,549		$	98,435
Accounts Receivable, Net		0			1,799
Total Current Assets		62,549			100,234
Fixed Assets, Net		23,290			35,421
TOTAL ASSETS	$	85,939		$	135,655
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	12,583		$	8,283
Accrued Expenses		32,098			22,230
Amounts due Shareholder		49,643			49,575
Total Current Liabilities		94,324			80,088
Total Liabilities		94,324			80,088
Stockholders' Equity
Preferred Stock, $.001 par value, 25,000,000 shares authorized,
0 and 0 shares issued and outstanding		0			0
Common Stock, $.001 par value, 50,000,000 shares authorized,
7,755,400 and 7,755,400 shares issued and outstanding		7,755			7,755
Additional Paid-In Capital		389,945			389,945
Accumulated Deficit		(406,185	)		(342,133	)
Total Stockholders' Equity		(8,485	)		55,567
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	85,839		$	135,655

The Accompanying Notes are an Integral Part of these Condensed Consolidated Financial Statements.

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HALL TEES, INC.

Condensed Consolidated Statements of Operations

For the Three and Nine months ended September 30, 2013 and 2012

(Unaudited)

	Three Months Ended						Nine months Ended
	September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
REVENUE	$	21,927		$	28,400		$	50,353		$	53,505
COST OF SALES		4,417			14,206			12,176			24,835
GROSS PROFIT		17,510			14,194			38,177			28,670
OPERATING EXPENSES
Depreciation		3,641			5,110			12,131			15,446
Selling and Advertising Expenses		—			890			—			1,406
Other General Expenses		27,942			21,980			90,153			60,649
TOTAL OPERATING EXPENSES		31,583			27,980			102,284			77,501
NET OPERATING LOSS		(14,073	)		(13,786	)		(64,107	)		(48,831	)
OTHER INCOME
Interest Income		13			47			55			150
TOTAL OTHER INCOME		13			47			55			150
NET LOSS BEFORE INCOME TAXES		(14,060	)		(13,739	)		(64,052	)		(48,681	)
Provision for Income Taxes (Expense) Benefit		—			—			—			—
NET LOSS	$	(14,060	)	$	(13,739	)	$	(64,052	)	$	(48,681	)
EARNINGS PER SHARE, Basic and Diluted
Weighted Average of Outstanding Shares		7,755,400			7,755,400			7,755,400			7,755,400
Income (Loss) for Common Stockholders	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)

The Accompanying Notes are an Integral Part of these Condensed Consolidated Financial Statements.

4

HALL TEES, INC.

Condensed Consolidated Statement of Changes in Stockholders’ Equity(Deficit)

For the Nine months ended September 30, 2013 and

The Year Ended December 31, 2012

(Unaudited)

	Common Stock
	Shares		Amount		Paid-In Capital		Accumulated (Deficit)			Totals
Stockholders' Equity (Deficit),
January 1, 2012	7,755,400	$	7,755	$	389,945	$	(282,353	)	$	115,347
Net Loss							(59,780	)		(59,780	)
Stockholders' Equity (Deficit),
December 31, 2012	7,755,400	$	7,755	$	389,945	$	(342,133	)	$	55,567
Net Loss							(64,052	)		(64,052	)
Stockholders' Equity (Deficit),
September 30, 2013	7,755,400	$	7,755	$	389,945	$	(406,185	)	$	(8,485	)

The Accompanying Notes are an Integral Part of these Condensed Consolidated Financial Statements.

5

HALL TEES, INC.

Condensed Consolidated Statements of Cash Flows

For the Nine months ended September 30, 2013 and 2012

(Unaudited)

	2013			2012
CASH FLOWS USED BY OPERATING ACTIVITIES
Net Loss	$	(64,052	)	$	(48,681	)
Adjustments to reconcile net loss to net cash used
by operating activities:
Depreciation		12,131			15,446
Bad Debt Expense		—			1,406
Changes in assets and liabilities:
Accounts Receivable		1,799			(989	)
Accounts Payable		4,300			(1,107	)
Accrued Expenses		9,868			(11,359	)
Net Cash Used by Operating Activities		(35,954	)		(45,284	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets		—			4,568
Net Cash Provided by Investing Activities		—			4,568
CASH FLOWS FROM FINANCING ACTIVITIES
Capitalized Lease Payments		—			(4,383	)
Borrowings: Stockholder Advances		68			4,099
Net Cash Provided (Used) by Financing Activities		68			(284	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(35,886	)		(41,000	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		98,435			141,106
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	62,549		$	100,106
SUPPLEMENTAL DISCLOSURES
Cash Paid During the Year for Interest Expense	$	—		$	—
Cash Paid During the Year for Taxes	$	—		$	—

The Accompanying Notes are an Integral Part of these Condensed Consolidated Financial Statements.

6

HALL TEES, INC.

NOTES TO FINANCIAL STATEMENTS

September 30, 2013

(Unaudited)

NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities, History and Organization:

Hall Tees, Inc. (The “Company”) operates as a printer and silk screener.  The Company is located in Rowlett, Texas and was incorporated on September 13, 2007 under the laws of the State of Nevada.

Hall Tees, Inc., is the parent company of Hall Tees & Promotions, L.L.C., (“Hall Tees Texas”), a company incorporated under the laws of the State of Texas. Hall Tees Texas was established in 2007 and for the past fifteen months has been operating a single facility in Texas.

On September 12, 2007, Hall Tees, Inc. ("Hall Tees Nevada"), a private holding company established under the laws of Nevada, was formed in order to acquire 100% of the outstanding membership interests of Hall Tees Texas.  On September 15, 2007, Hall Tees Nevada issued 7,000,000 shares of common stock in exchange for a 100% equity interest in Hall Tees Texas.  As a result of the share exchange, Hall Tees Texas became the wholly owned subsidiary of Hall Tees Nevada.  As a result, the members of Hall Tees Texas owned a majority of the voting stock of Hall Tees Nevada.  The transaction was regarded as a reverse merger whereby Hall Tees Texas was considered to be the accounting acquirer as its members retained control of Hall Tees Nevada after the exchange, although Hall Tees Nevada is the legal parent company.  The share exchange was treated as a recapitalization of Hall Tees Nevada.  As such, Hall Tees Texas (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if Hall Tees Nevada had always been the reporting company and, on the share exchange date, changed its name and reorganized its capital stock.

Change of Domicile: In May the Company filed a Form S-4 with the US Securities & Exchange Commission (SEC) to effectuate the redomiciling of its charter from Nevada to the British Virgin Islands through the merger of Hall Tees, Inc. with Studio 82, a British Virgin Islands company. Studio 82 has no assets and liabilities and the redomiciling will have a negligible effect on the financial condition of the company.  The SEC has submitted comments and is continuing its review. As of the date of this filing the Form S-4 has not been declared effective.

Unaudited Interim Consolidated Financial Statements:

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and applicable Securities and Exchange Commission (“SEC”) regulations for interim financial information. These consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring accruals) necessary to present fairly the balance sheets, statements of operations and statements of cash flows for the periods presented in accordance with accounting principles generally accepted in the United States. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to SEC rules and regulations. It is presumed that users of this interim financial information have read or have access to the audited financial statements and footnote disclosure for the preceding fiscal year contained in the Company’s Annual Report on Form 10-K filed with the SEC on April 16, 2013. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.

Significant Accounting Policies:

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application.  The application of accounting principles requires the estimating, matching and timing of revenue and expense.  Below is a summary of certain significant accounting policies selected by management.

The condensed consolidated financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. 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.

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Management believes that all adjustments necessary for a fair statement of the results of the nine months ended September 30, 2013 and 2012 have been made.

Basis of Presentation:

The Company prepares its consolidated financial statements on the accrual basis of accounting.  All intercompany balances and transactions are eliminated.  The Company’s subsidiaries are consolidated with the parent company.

Cash and Cash Equivalents:

All highly liquid investments with original maturities of six months or less are included in cash and cash equivalents.  All deposits are maintained in FDIC insured depository accounts in local financial institutions and balances are insured up to $250,000.

Fair Value of Financial Instruments:

The carrying amounts of cash, cash equivalents, accounts receivable, capital leases, accounts payable and notes payable approximate their fair values due to the short-term maturities of these instruments.

Accounts Receivable:

Accounts receivable are carried at their face amount, less an allowance for doubtful accounts.  On a periodic basis, the Company evaluates accounts receivable and establishes the allowance for doubtful accounts based on a combination of specific customer circumstances and credit conditions, based on a history of write offs and collections.  The Company’s policy is generally not to charge interest on trade receivables after the invoice becomes past due.  A receivable is considered past due if payments have not been received within agreed upon invoice terms.   The Company provides an allowance for all receivables that are greater than 90 days old. Allowances for Doubtful Accounts totaled $2,200 and $2,200 at September 30, 2013 and December 31, 2012 respectively.  Write offs are recorded at a time when a customer receivable is deemed uncollectible. During the nine months ended September 30, 2013 the Company had no write-offs.

Fixed Assets:

Fixed assets are stated at cost if purchased, or at fair value in a nonmonetary exchange, less accumulated depreciation.  Major renewals and improvements are capitalized; minor replacements, maintenance and repairs are charged to current operations. Depreciation is computed by applying the straight-line method over the estimated useful lives which are generally three to seven years.  Leases that meet the requirements of ASC 840-10, are capitalized and included in fixed assets.

Revenue Recognition:

The Company recognizes revenue in accordance with ASC 605-10. Revenue will be recognized only when all of the following criteria have been met:

- Persuasive evidence of an arrangement exists;

- Ownership and all risks of loss have been transferred to buyer, which is generally upon shipment or at the time the service is provided;

- The price is fixed and determinable; and

- Collectability is reasonably assured.

Earnings per Share:

Earnings per share (basic) is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period covered.  As the Company has no potentially dilutive securities, fully diluted earnings per share is identical to earnings per share (basic).

Income Taxes:

Income from the corporation is taxed at regular corporate rates per the Internal Revenue Code.  There are no provisions for current taxes due to net available operating losses.

Recent Accounting Pronouncements:

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

8

Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

NOTE 2 – FIXED ASSETS

Fixed assets at September 30, 2013 and December 31, 2012 are as follows:

	2013			2012
Furniture & Equipment	$	95,086		$	95,086
Capitalized Leases		29,220			29,220
Gross Fixed Assets		124,306			124,306
Less: Accumulated Depreciation		(101,016	)		(88,885	)
Net Fixed Assets	$	23,290		$	35,421

Depreciation expense for the three months ended September 30, 2013 and 2012 was $3,641 and 5,110, respectively. Depreciation expense for the nine months ended September 30, 2013 and 2012 was $12,131 and $15,446, respectively.

NOTE 3 – CAPITALIZED AND OPERATING LEASES

The Company leases a 1,200 square foot space from the President on a month to month basis for $1,000 per month. Rent expense was $3,000 and $9,000 for the three and nine month periods ended September 30, 2013 and 2012, respectively.

NOTE 4 – EQUITY

The Company is authorized to issue 25,000,000 preferred shares at a par value of $0.001 per share. These shares have full voting rights.  At September 30, 2013 and December 31, 2021, there were zero shares outstanding.

The Company is authorized to issue 50,000,000 common shares at a par value of $0.001 per share. These shares have full voting rights.  At September 30, 2013 and December 31, 2012, there were 7,755,400 shares outstanding respectively.

The Company does not have any stock option plans or warrants. 

NOTE 5 – INCOME TAXES

The Company has adopted ASC 740, which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable (deferred tax liability) or benefit (deferred tax asset).   Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be.

Deferred tax assets at September 30, 2013 and December 31, 2012 consisted of the following:

	2013			2012
Deferred Tax Asset	$	95,285		$	79,285
Less: Valuation Allowance		(95,285	)		(79,285	)
Net Deferred Tax Asset	$	0		$	0

The net deferred tax asset generated primarily by the Company’s net operating loss carryforward has been fully reserved. The cumulative net operating loss carry-forward is approximately $406,185 at September 30, 2013 and $342,133 at December 31, 2012, and will expire in 2025 through 2031.

The difference in the income tax benefit not shown in the consolidated statements of operations and the amount that would result if the U.S. Federal statutory rate of 25% were applied to pre-tax loss for 2013 and 2012 is attributable to the valuation allowance.

The realization of deferred tax benefits is contingent upon future earnings, therefore, is fully reserved at September 30, 2013 and December 31, 2012.

9

The Company recognizes interest and penalties related to unrecognized tax benefits in general and administrative expense. During the nine months ended September 30, 2013 and the year ended December 31, 2012 the Company recognized no interest and penalties.

NOTE 6 – RELATED PARTY TRANSACTIONS

The President and a Stockholder of the Company has advanced the Company $49,643 and $49,575 as of September 30, 2013 and December 31, 2012, respectively, for working capital. No interest is paid on this advance.

Under a contract with the Company beginning November 6, 2007, originally expiring December 31, 2012 and updated to end December 31, 2013, the President provides general management services to the Company for up to $4,000 per month.  Payroll expense incurred under this contract totaled approximately $20,220 and $0 for the nine months ended September 30, 2013 and 2012, respectively.

The Company pays rent of $1,000 per month to the President for warehouse facilities.  Total charges were $9,000 in each of the nine months ended September 30, 2013 and 2012.

Yorkdale Capital, LLC advises and assists the President with many aspects related to the regulatory filings including assistance with the consolidation of financial statements for audit. Yorkdale Capital, LLC or its principals are shareholders and invoice the company reasonable fees for accounting, general consulting and administrative services. The accounts payable balance at September 30, 2013 was $9,250 and at December 31, 2012 was $7,000.

NOTE 7– FINANCIAL CONDITION AND GOING CONCERN

The Company has minimal operations and has negative working capital of $31,775 at September 30, 2013 and positive working capital of $20,146 as of December 31, 2012. Due to the limited operating history and limited operations, the Company may require additional working capital to survive. If the funds the Company has are not sufficient it will also consider bank loans or additional shareholder loans. There are no assurances that the Company will be able to obtain any of these. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital cannot be generated, the Company may not be able to continue its operations.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 8 – REVENUE CONCENTRATION

The Company’s three largest customers account for 85% ($42,977) of the 2013 year-to-date revenues. The table below discloses the largest customers 2013 versus 2012 for the nine months ended September 30, 2013 and 2012 (note: comparison of largest customers year-over-year).

	YTD 2013 Sales		YTD 2012 Sales
TOP 5 customer	$	%	$	%
Cust 1	29,200	58%	15,682	29%
Cust 2	12,757	25%	13,671	26%
Cust 3	1,020	2%	7,207	13%
Cust 4	963	2%	2,305	4%
Cust 5	889	2%	1,456	3%
Other	5,524	11%	13,184	25%
TOTAL	50,353	100%	53,505	100%

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Item 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS

This report contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s actual results could differ materially from those set forth on the forward looking statements as a result of the risks set forth in the Company’s filings with the Securities and Exchange Commission, general economic conditions, and changes in the assumptions used in making such forward looking statements.

General

In the first nine months of 2013 top line revenue decreased 6% to $50,353. Sales slowed in the three months ended September 30, 2013 versus the same period in 2012 as promotional spending slowed as it did in the fiscal second quarter.

RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013

Our quarter ended on September 30, 2013.  Any reference to the end of the fiscal quarter refers to the end of the first quarter for the period discussed herein.

REVENUE.  Revenue for the three months ended September 30, 2013 was $21,927 compared to $28,400 for the three month period ended September 30, 2012.  Revenue decreased $6,473 or 23% due to a decrease in marketing promotional items of $9,100; this was partially offset by an increase in pad printing of $4,000.

Revenue for the nine months ended September 30, 2013 was $50,353 compared to $53,505 for the nine month period ended September 30, 2012.  Revenue decreased $3,152 or 6% due to an increase in pad printing of $21,300 which was offset by a decrease in marketing promotional items of $24,700.

COST OF SALES: Cost of sales (COS) were 4,417 (or 20% of revenue) for the three months ended September 30, 2013 compared to $14,206 (or 50% of revenue) for the same period in 2012.  The decrease in COS as a percent of sales is due to product mix as sales were geared toward higher margin products.

Cost of sales (COS) were $12,176 (or 24% of revenue) for the nine months ended September 30, 2013 compared to $24,835 (or 46% of revenue) for the same period in 2012.  The slight decrease in COS as a percent of sales is due to product mix as sales were geared toward higher margin products.

OPERATING EXPENSES. Operating expenses, exclusive of depreciation expense of $3,641 and $5,110, were $27,942 and $22,870 for the three month periods ended September 30, 2013 and 2012 respectively.  The increase expenses were due to payroll costs to the President ($7,000) and fees/services ($7,000) related to redomiciling of the Company to the Cayman Islands and administration.

Operating expenses, exclusive of depreciation expense of $12,131 and $15,446, were $90,153 and $62,055 for the nine month periods ended September 30, 2013 and 2012 respectively.  The increase expenses were due to payroll costs to the President ($20,200) and fees/services ($17,000) related to redomiciling of the Company to the Cayman Islands.

NET LOSS. The Net Loss for the three months ended September 30, 2013 and 2012 was $14,060 versus $13,739, respectively.  The main drivers behind the change are discussed above.  

The Net Loss for the nine months ended September 30, 2013 and 2012 was $64,052 versus $48,681, respectively.  The main drivers behind the change are discussed above.  

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LIQUIDITY AND CAPITAL RESOURCES.

In addition to the preceding, the Company plans for liquidity needs on a short term and long term basis as follows:

Short Term Liquidity:

The Company relies on one primary funding source for short term liquidity needs: advances from the major shareholder / President of the Company. The President has advanced the Company $49,643 and $49,575 as of September 30, 2013 and December 31, 2012, respectively, for working capital.  No interest is paid on this advance.  This is also disclosed in Note 6.

Long Term Liquidity:

The long term liquidity needs of the Company are projected to be met primarily through the cash flow provided by operations. Cash flow from operations for the nine months ended September 30, 2013 was negative $35,954.  The Company continually is seeking new opportunities to spur sales and increase top line revenue.

Going Concern

Our independent auditors included a going concern explanatory paragraph in their report included in our annual report on Form 10-K for the year ended December 31, 2012, which raises substantial doubt about our ability to continue as a going concern. See Note 7.

Capital Resources

We do not expect any significant change to our equity or debt structure and do not anticipate entering into any off-balance sheet arrangements.

Material Changes in Financial Condition

WORKING CAPITAL: Working Capital decreased by approximately $51,900 to negative $31,775 since December 31, 2012.  This decrease is due to the reduction in cash of about $35,900 and an increase in current liabilities of about $14,200.

SHAREHOLDERS’ EQUITY: Shareholders’ Equity decreased by $64,052 due to the net loss.   

Management Advisors

Yorkdale Capital, LLC advises and assists the President with many aspects related to the regulatory filings including assistance with the consolidation of financial statements for audit. Yorkdale Capital, LLC or its principals are shareholders and invoice the company reasonable fees for accounting, general consulting and administrative services. The accounts payable balance at September 30, 2013 was $9,250 and at December 31, 2012 was $7,000.

In May the Company filed a Form S-4 with the US Securities & Exchange Commission (SEC) to effectuate the redomiciling of its charter from Nevada to the British Virgin Islands through the merger of Hall Tees, Inc. with Studio 82, a British Virgin Islands company. Studio 82 has no assets and liabilities and the redomiciling will have a negligible effect on the financial condition of the company.  The SEC has submitted comments and is continuing its review. As of the date of this filing the Form S-4 has not been declared effective.

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Item 3: Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2013.  This evaluation was accomplished under the supervision and with the participation of our chief executive officer / principal executive officer, and chief financial officer / principal financial officer who concluded that our disclosure controls and procedures are not effective.

Based upon an evaluation conducted for the period ended September 30, 2013, our Chief Executive and Chief Financial Officer as of September 30, 2013 and as of the date of this Report, has concluded that as of the end of the periods covered by this report, we have identified the following material weakness of our internal controls:

• Reliance upon independent financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transaction.

• Lack of sufficient accounting staff which results in a lack of segregation of duties necessary for a good system of internal control.

In order to remedy our existing internal control deficiencies, as our finances allow, we will hire additional accounting staff.

Changes in Internal Controls over Financial Reporting

We have not yet made any changes in our internal controls over financial reporting that occurred during the period covered by this report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

13

PART II

Items No. 1, 2, 3, 4, 5 - Not Applicable.

Item No. 6 - Exhibits and Reports on Form 8-K

a) A Form 8-K was filed on November 18, 2013 disclosing the resignation of EFP Rotenberg as our Registered Independent Accounting Firm and the appointment of The Hall Group CPA’s as our new Registered Independent Accounting Firm.

(b) Exhibits

Exhibit Number		Name of Exhibit
31.1	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

In accordance with the requirements 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.

HALL TEES, INC.

By /s/ William Lewis

William Lewis, President, CFO

Date: November 18, 2013

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EX-31.1

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, William Lewis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of HALL TEES, INC.

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

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

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

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

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

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

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

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

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

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

Date: November 18, 2013

By /s/ William Lewis

William Lewis, President, CEO

EX-31.2

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, William Lewis, certify that:

1. I have reviewed this quarterly report on Form 10-Q HALL TEES, INC.

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

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

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

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

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

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

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

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

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

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

Date: November 18, 2013 

By /s/ William Lewis

William Lewis, President, CFO

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of HALL TEES, INC. (the “Company”) on Form 10-Q for the period ended September 30, 2013 as filed with the Securities and Exchange Commission (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Dated: November 18, 2013

/s/ William Lewis

Name: William Lewis

Title: Chief Executive Officer

Dated: November 18, 2013

/s/ William Lewis

Name: William Lewis

Title: Chief Financial Officer

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NOTE 5 INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax, Deferred Taxes

	2013			2012
Deferred Tax Asset	$	95,285		$	79,285
Less: Valuation Allowance		(95,285	)		(79,285	)
Net Deferred Tax Asset	$	0		$	0

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Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]
Revenue	$ 21,297	$ 28,400	$ 50,353	$ 53,505
Cost of Sales	4,417	14,206	12,176	24,835
Gross Profit	17,510	14,194	38,177	28,670
Operating Expenses:
Depreciation	3,641	5,110	12,131	15,446
Selling and Advertising Expenses	0	890	0	1,406
Other General Expenses	27,942	21,980	90,153	60,649
Total Operating Expenses	31,583	27,980	102,284	77,501
Net Operating Loss	(14,073)	(13,786)	(64,107)	(48,831)
Other Income:
Interest Income	13	47	55	150
Total Other Income	13	47	55	150
Net Loss Before Income Taxes	(14,060)	(13,739)	(64,052)	(48,681)
Provision for Income Tax (Expense) Benefit	0	0	0	0
Net Loss	$ (14,060)	$ (13,739)	$ (64,052)	$ (48,681)
Earnings per Share, Basic and Diluted:
Weighted Average of Outstanding Shares	7,755,400	7,755,400	7,755,400	7,755,400
Income (Loss) for Common Stockholders	$ 0.00	$ 0.00	$ (0.01)	$ (0.01)

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NOTE 4 EQUITY

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

EQUITY

The Company is authorized to issue 25,000,000 preferred shares at a par value of $0.001 per share. These shares have full voting rights.  At September 30, 2013 and December 31, 2021, there were zero shares outstanding.

The Company is authorized to issue 50,000,000 common shares at a par value of $0.001 per share. These shares have full voting rights.  At September 30, 2013 and December 31, 2012, there were 7,755,400 shares outstanding respectively.

The Company does not have any stock option plans or warrants. 

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NOTE 5 INCOME TAXES - Income Tax, Deferred Taxes (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements
Prior year deferred tax asset	$ 95,285	$ 79,285
Total deferred tax asset	95,285	79,285
Less: Valuation Allowance	(95,285)	(79,285)
Net Deferred Tax Asset	$ 0	$ 0

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NOTE 8 REVENUE CONCENTRATION (Tables)

21 Months Ended

Sep. 30, 2013

Risks and Uncertainties [Abstract]

Customers, Revenue

Top 5 Customers – Sales $	YTD 2013	YTD 2012
Customer 1	29,200	15,682
Customer 2	12,757	13,671
Customer 3	1,020	7,207
Customer 4	963	2,305
Customer 5	889	1,456
Other	5,524	13,184
TOTAL	50,353	53,505

Customers, Percent of Sales

Top 5 Customers – Sales %	YTD 2013	YTD 2012
Customer 1	58	29
Customer 2	25	26
Customer 3	2	13
Customer 4	2	4
Customer 5	2	3
Other	11	25
TOTAL	100	100

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NOTE 7 FINANCIAL CONDITION AND GOING CONCERN (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Notes to Financial Statements
Working Capital	$ (31,775)	$ 20,146

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NOTE 6 RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Notes to Financial Statements
Amounts Due Shareholder	$ 49,643		$ 49,643		$ 49,575
President Payroll Expense			20,220	0
Rent Expense	3,000	3,000	9,000	9,000
Payables	$ 9,250		$ 9,250		$ 7,000

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NOTE 5 INCOME TAXES (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Notes to Financial Statements
Operating Loss Carryforward	$ 406,185	$ 342,133

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Consolidated Statement of Shareholders Equity (USD $)	Common Stock	Additional Paid-In Capital	Retained Earnings / Accumulated Deficit	Total
Begining balance, APIC at Dec. 31, 2011		$ 389,945
Begining Balance, Accumulated Deficit at Dec. 31, 2011			(282,353)
Begining balance, amount at Dec. 31, 2011	7,755
Begining balance, shares at Dec. 31, 2011	7,755,400
Net Loss			(59,780)
Ending balance, APIC at Dec. 31, 2012		389,945
Accumulated Deficit at Dec. 31, 2012			(342,133)	(342,133)
Common stock, amount at Dec. 31, 2012	7,755
Common stock, shares outstanding at Dec. 31, 2012	7,755,400			7,755,400
Begining balance, stockholders' equity at Dec. 31, 2012				55,567
Net Loss			(64,052)	(64,052)
Stockholders' Equity at Sep. 30, 2013				(8,485)
Accumulated Deficit at Sep. 30, 2013			(406,185)	(406,185)
Ending balance, APIC at Sep. 30, 2013		389,945
Common stock, amount at Sep. 30, 2013	$ 7,755
Common stock, shares outstanding at Sep. 30, 2013	7,755,400			7,755,400

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NOTE 2 FIXED ASSETS

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

FIXED ASSETS

Fixed assets at September 30, 2013 and December 31, 2012 are as follows:

	2013			2012
Furniture & Equipment	$	95,086		$	95,086
Capitalized Leases		29,220			29,220
Gross Fixed Assets		124,306			124,306
Less: Accumulated Depreciation		(101,016	)		(88,885	)
Net Fixed Assets	$	23,290		$	35,421

Depreciation expense for the three months ended September 30, 2013 and 2012 was $3,641 and 5,110, respectively. Depreciation expense for the nine months ended September 30, 2013 and 2012 was $12,131 and $15,446, respectively.

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NOTE 5 INCOME TAXES

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

The Company has adopted ASC 740, which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable (deferred tax liability) or benefit (deferred tax asset).   Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be.

Deferred tax assets at September 30, 2013 and December 31, 2012 consisted of the following:

	2013			2012
Deferred Tax Asset	$	95,285		$	79,285
Less: Valuation Allowance		(95,285	)		(79,285	)
Net Deferred Tax Asset	$	0		$	0

The net deferred tax asset generated primarily by the Company’s net operating loss carryforward has been fully reserved. The cumulative net operating loss carry-forward is approximately $406,185 at September 30, 2013 and $342,133 at December 31, 2012, and will expire in 2025 through 2031.

The difference in the income tax benefit not shown in the consolidated statements of operations and the amount that would result if the U.S. Federal statutory rate of 25% were applied to pre-tax loss for 2013 and 2012 is attributable to the valuation allowance.

The realization of deferred tax benefits is contingent upon future earnings, therefore, is fully reserved at September 30, 2013 and December 31, 2012.

The Company recognizes interest and penalties related to unrecognized tax benefits in general and administrative expense. During the nine months ended September 30, 2013 and the year ended December 31, 2012 the Company recognized no interest and penalties.

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NOTE 3 CAPITALIZED AND OPERATING LEASES

9 Months Ended

Sep. 30, 2013

Leases [Abstract]

CAPITALIZED AND OPERATING LEASES

The Company leases a 1,200 square foot space from the President on a month to month basis for $1,000 per month. Rent expense was $3,000 and $9,000 for the three and nine month periods ended September 30, 2013 and 2012, respectively.

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NOTE 8 REVENUE CONCENTRATION - Customers, Revenue (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements
Customer 1	$ 29,200	$ 15,682
Customer 2	12,757	13,671
Customer 3	1,020	7,207
Customer 4	963	2,305
Customer 5	889	1,456
Other	5,524	13,184
TOTAL	$ 50,353	$ 53,505

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Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Preferred stock, par or stated value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares outstanding	7,755,400	7,755,400

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NOTE 8 REVENUE CONCENTRATION

9 Months Ended

Sep. 30, 2013

Risks and Uncertainties [Abstract]

REVENUE CONCENTRATION

The Company’s three largest customers account for 85% ($25,488) of the 2013 year-to-date revenues. The table below discloses the largest customers 2013 versus 2012 for the nine months ended September 30, 2013 and 2012 (note: comparison of largest customers year-over-year).

	YTD 2013 Sales		YTD 2012 Sales
TOP 5 customer	$	%	$	%
Cust 1	29,200	58%	15,682	29%
Cust 2	12,757	25%	13,671	26%
Cust 3	1,020	2%	7,207	13%
Cust 4	963	2%	2,305	4%
Cust 5	889	2%	1,456	3%
Other	5,524	11%	13,184	25%
TOTAL	50,353	100%	53,505	100%

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (64,052)	$ (48,681)
Adjustments to reconcile net loss to net cash used (provided) by operating activiites
Depreciation	12,131	15,446
Bad Debt Expense	0	1,406
Changes in assets and liabilities:
Accounts Receivable	1,799	(989)
Accounts Payable	4,300	(1,107)
Accrued Expenses	9,868	(11,359)
Net Cash Provided (Used) by Operating Acticities	(35,954)	(45,284)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of Fixed Assets		4,568
Net Cash Provided (Used) by Investing Activities	0	4,568
CASH FLOWS FROM FINANCING ACTIVITIES
Capitalized Lease Payments	0	(4,383)
(Payments) Borrowings: Shareholder Advances	68	4,099
Net Cash Provided by Financing Activities	68	(284)
NET INCREASE (DECREASE) IN CASH AND CASH EQUAVILENTS	(35,886)	(41,000)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	98,435	141,106
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 62,549	$ 100,106

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Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current Assets:
Cash and Cash Equivalents	$ 62,549	$ 98,435
Accounts Receivable, Net	0	1,799
Inventory	0	0
Total Current Assets	62,549	100,234
Fixed Assets, Net	23,290	35,421
TOTAL ASSETS	85,839	135,655
Current Liabilities:
Accounts Payable	12,583	8,283
Accrued Expenses	32,098	22,230
Amounts Due Shareholder	49,643	49,575
Current Portion of Capital Lease		0
Total Current Liabilities	94,324	80,088
Long Term Liabilities:
Capital Lease Obligation	0	0
Less: Current Potion	0	0
Total Long Term Liabilities	0	0
Total Liabilities	94,324	80,088
Stockholders' Equity:
Preferred Stock, $0.001 par value, 25,000,000 shares authorized, 0 and 0 shares issued and outstanding	0	0
Common Stock, $0.001 par value, 50,000,000 shares authorized, 7,755,400 and 7,755,400 shares issued and outstanding, respectively	7,755	7,755
Additional Paid In Capital	389,945	389,945
Accumulated Deficit	(406,185)	(342,133)
Stockholders' Equity	(8,485)	55,567
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 85,839	$ 135,655

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NOTE 8 REVENUE CONCENTRATION - Customers, Percent of Sales (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements
Customer 1	$ 58	$ 29
Customer 2	25	26
Customer 3	2	13
Customer 4	2	4
Customer 5	2	3
Other	11	25
TOTAL	$ 100	$ 100

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NOTE 4 EQUITY (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Notes to Financial Statements
Preferred stock, par or stated value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares outstanding	7,755,400	7,755,400

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NOTE 7 FINANCIAL CONDITION AND GOING CONCERN

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

FINANCIAL CONDITION AND GOING CONCERN

The Company has minimal operations and has negative working capital of $31,775 at September 30, 2013 and positive working capital of $20,146 as of December 31, 2012. Due to the limited operating history and limited operations, the Company may require additional working capital to survive. If the funds the Company has are not sufficient it will also consider bank loans or additional shareholder loans. There are no assurances that the Company will be able to obtain any of these. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital cannot be generated, the Company may not be able to continue its operations.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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NOTE 8 REVENUE CONCENTRATION (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements
Top 3 customers, percent of sales	90
Top 3 Customers, Revenue	$ 25,488

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NOTE 2 FIXED ASSETS (Tables)

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

FIXED ASSETS

	2013			2012
Furniture & Equipment	$	95,086		$	95,086
Capitalized Leases		29,220			29,220
Gross Fixed Assets		124,306			124,306
Less: Accumulated Depreciation		(101,016	)		(88,885	)
Net Fixed Assets	$	23,290		$	35,421

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NOTE 6 RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

The President and a Stockholder of the Company has advanced the Company $49,643 and $49,575 as of September 30, 2013 and December 31, 2012, respectively, for working capital. No interest is paid on this advance.

Under a contract with the Company beginning November 6, 2007, originally expiring December 31, 2012 and updated to end December 31, 2013, the President provides general management services to the Company for up to $4,000 per month.  Payroll expense incurred under this contract totaled approximately $20,220 and $0 for the nine months ended September 30, 2013 and 2012, respectively.

The Company pays rent of $1,000 per month to the President for warehouse facilities.  Total charges were $9,000 in each of the nine months ended September 30, 2013 and 2012.

Yorkdale Capital, LLC advises and assists the President with many aspects related to the regulatory filings including assistance with the consolidation of financial statements for audit. Yorkdale Capital, LLC or its principals are shareholders and invoice the company reasonable fees for accounting, general consulting and administrative services. The accounts payable balance at September 30, 2013 was $9,250 and at December 31, 2012 was $7,000.

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NOTE 1 NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities, History and Organization:

Hall Tees, Inc. (The “Company”) operates as a printer and silk screener.  The Company is located in Rowlett, Texas and was incorporated on September 13, 2007 under the laws of the State of Nevada.

Hall Tees, Inc., is the parent company of Hall Tees & Promotions, L.L.C., (“Hall Tees Texas”), a company incorporated under the laws of the State of Texas. Hall Tees Texas was established in 2007 and for the past fifteen months has been operating a single facility in Texas.

On September 12, 2007, Hall Tees, Inc. ("Hall Tees Nevada"), a private holding company established under the laws of Nevada, was formed in order to acquire 100% of the outstanding membership interests of Hall Tees Texas.  On September 15, 2007, Hall Tees Nevada issued 7,000,000 shares of common stock in exchange for a 100% equity interest in Hall Tees Texas.  As a result of the share exchange, Hall Tees Texas became the wholly owned subsidiary of Hall Tees Nevada.  As a result, the members of Hall Tees Texas owned a majority of the voting stock of Hall Tees Nevada.  The transaction was regarded as a reverse merger whereby Hall Tees Texas was considered to be the accounting acquirer as its members retained control of Hall Tees Nevada after the exchange, although Hall Tees Nevada is the legal parent company.  The share exchange was treated as a recapitalization of Hall Tees Nevada.  As such, Hall Tees Texas (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if Hall Tees Nevada had always been the reporting company and, on the share exchange date, changed its name and reorganized its capital stock.

Change of Domicile: In May the Company filed a Form S-4 with the US Securities & Exchange Commission (SEC) to effectuate the redomiciling of its charter from Nevada to the British Virgin Islands through the merger of Hall Tees, Inc. with Studio 82, a British Virgin Islands company. Studio 82 has no assets and liabilities and the redomiciling will have a negligible effect on the financial condition of the company.  The SEC has submitted comments and is continuing its review. As of the date of this filing a Form S-4/A has been prepared and will be filed soon.

Unaudited Interim Consolidated Financial Statements:

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and applicable Securities and Exchange Commission (“SEC”) regulations for interim financial information. These consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring accruals) necessary to present fairly the balance sheets, statements of operations and statements of cash flows for the periods presented in accordance with accounting principles generally accepted in the United States. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to SEC rules and regulations. It is presumed that users of this interim financial information have read or have access to the audited financial statements and footnote disclosure for the preceding fiscal year contained in the Company’s Annual Report on Form 10-K filed with the SEC on April 16, 2013. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.

Significant Accounting Policies:

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application.  The application of accounting principles requires the estimating, matching and timing of revenue and expense.  Below is a summary of certain significant accounting policies selected by management.

The condensed consolidated financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. 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.

Management believes that all adjustments necessary for a fair statement of the results of the six months ended September 30, 2013 and 2012 have been made.

Basis of Presentation:

The Company prepares its consolidated financial statements on the accrual basis of accounting.  All intercompany balances and transactions are eliminated.  The Company’s subsidiaries are consolidated with the parent company.

Cash and Cash Equivalents:

All highly liquid investments with original maturities of six months or less are included in cash and cash equivalents.  All deposits are maintained in FDIC insured depository accounts in local financial institutions and balances are insured up to $250,000.

Fair Value of Financial Instruments:

The carrying amounts of cash, cash equivalents, accounts receivable, capital leases, accounts payable and notes payable approximate their fair values due to the short-term maturities of these instruments.

Accounts Receivable:

Accounts receivable are carried at their face amount, less an allowance for doubtful accounts.  On a periodic basis, the Company evaluates accounts receivable and establishes the allowance for doubtful accounts based on a combination of specific customer circumstances and credit conditions, based on a history of write offs and collections.  The Company’s policy is generally not to charge interest on trade receivables after the invoice becomes past due.  A receivable is considered past due if payments have not been received within agreed upon invoice terms.   The Company provides an allowance for all receivables that are greater than 90 days old. Allowances for Doubtful Accounts totaled $2,200 and $2,200 at September 30, 2013 and December 31, 2012 respectively.  Write offs are recorded at a time when a customer receivable is deemed uncollectible. During the six months ended June 30, 2013 the Company had no write-offs.

Fixed Assets:

Fixed assets are stated at cost if purchased, or at fair value in a nonmonetary exchange, less accumulated depreciation.  Major renewals and improvements are capitalized; minor replacements, maintenance and repairs are charged to current operations. Depreciation is computed by applying the straight-line method over the estimated useful lives which are generally three to seven years.  Leases that meet the requirements of ASC 840-10, are capitalized and included in fixed assets.

Revenue Recognition:

The Company recognizes revenue in accordance with ASC 605-10. Revenue will be recognized only when all of the following criteria have been met:

· Persuasive evidence of an arrangement exists;

· Ownership and all risks of loss have been transferred to buyer, which is generally upon shipment or at the time the service is provided;

· The price is fixed and determinable; and

· Collectability is reasonably assured.

Earnings per Share:

Earnings per share (basic) is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period covered.  As the Company has no potentially dilutive securities, fully diluted earnings per share is identical to earnings per share (basic).

Income Taxes:

Income from the corporation is taxed at regular corporate rates per the Internal Revenue Code.  There are no provisions for current taxes due to net available operating losses.

Recent Accounting Pronouncements:

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

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NOTE 1 NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements
Allowance for Doubtful Accounts	$ 2,200	$ 2,200

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NOTE 1 NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

21 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Significant Accounting Policies:

Significant Accounting Policies:

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application.  The application of accounting principles requires the estimating, matching and timing of revenue and expense.  Below is a summary of certain significant accounting policies selected by management.

The consolidated financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. 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.

Management believes that all adjustments necessary for a fair statement of the results of the six months ended June 30, 2012 and 2011 have been made.

 Basis of Presentation:

The Company prepares its consolidated financial statements on the accrual basis of accounting.  All intercompany balances and transactions are eliminated.  The Company’s subsidiaries are consolidated with the parent company.

Cash and Cash Equivalents:

Cash and Cash Equivalents:

All highly liquid investments with original maturities of three months or less are included in cash and cash equivalents.  All deposits are maintained in FDIC insured depository accounts in local financial institutions and balances are insured up to $250,000.

Fair Value of Financial Instruments:

Fair Value of Financial Instruments:

The carrying amounts of cash, cash equivalents, accounts receivable, capital leases, accounts payable and notes payable approximate their fair values due to the short-term maturities of these instruments.

Accounts Receivable:

Accounts Receivable:

Accounts receivable are carried at their face amount, less an allowance for doubtful accounts.  On a periodic basis, the Company evaluates accounts receivable and establishes the allowance for doubtful accounts based on a combination of specific customer circumstances and credit conditions, based on a history of write offs and collections.  The Company’s policy is generally not to charge interest on trade receivables after the invoice becomes past due.  A receivable is considered past due if payments have not been received within agreed upon invoice terms.   The Company provides an allowance for all receivables that are greater than 90 days old. Allowances for Doubtful Accounts totaled $3,000 and $4,780 at June 30, 2012 and December 31, 2011 respectively.  Write offs are recorded at a time when a customer receivable is deemed uncollectible and during the quarter ended March 31, 2012 the Company wrote-off $2,295.

Fixed Assets:

Fixed Assets:

Fixed assets are stated at cost if purchased, or at fair value in a nonmonetary exchange, less accumulated depreciation.  Major renewals and improvements are capitalized; minor replacements, maintenance and repairs are charged to current operations. Depreciation is computed by applying the straight-line method over the estimated useful lives which are generally three to seven years.  Leases that meet the requirements of ASC 840-10, are capitalized and included in fixed assets.

Revenue Recognition:

Revenue Recognition:

The Company recognizes revenue in accordance with ASC 605-10, "Revenue Recognition in Financial Statements," Revenue will be recognized only when all of the following criteria have been met:

· Persuasive evidence of an arrangement exists;

· Ownership and all risks of loss have been transferred to buyer, which is generally upon shipment or at the time the service is provided;

· The price is fixed and determinable; and

· Collectability is reasonably assured.

Earnings per Share

Earnings per Share:

Earnings per share (basic) is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period covered.  As the Company has no potentially dilutive securities, fully diluted earnings per share is identical to earnings per share (basic).

Income Taxes:

Income Taxes:

Income from the corporation is taxed at regular corporate rates per the Internal Revenue Code.  There are no provisions for current taxes due to net available operating losses.

Recent Accounting Pronouncements:

Recent Accounting Pronouncements:

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

Estimates:

Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

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NOTE 3 CAPITALIZED AND OPERATING LEASES (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Notes to Financial Statements
Capital Lease Obligation - Current					$ 0
Rent Expense	$ 3,000	$ 3,000	$ 9,000	$ 9,000

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NOTE 2 FIXED ASSETS - FIXED ASSETS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Notes to Financial Statements
Furniture & Equipment	$ 95,086	$ 95,086
Capitalized Leases	29,220	29,220
Gross Fixed Assets	124,306	124,306
Less: Accumulated Depreciation	(101,016)	(88,885)
Net Fixed Assets	$ 23,290	$ 35,421

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Document and Entity Information (USD $)	9 Months Ended
	Sep. 30, 2013	Nov. 18, 2013
Document And Entity Information
Entity Registrant Name	Hall Tees, Inc.
Entity Central Index Key	0001431499
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 7,755,400
Entity Common Stock, Shares Outstanding		7,755,400
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2013

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NOTE 2 FIXED ASSETS (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements
Depreciation Expense	$ 3,641	$ 5,110	$ 12,131	$ 15,446