Forward Looking Statements

This report and other reports filed by our Company from time to time with the United States Securities and Exchange Commission (collectively the "Filings") contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, our management as well as estimates and assumptions made by our management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the filings, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," or the negative of these terms and similar expressions as they relate to us or our management identify forward-looking statements. Such statements reflect our current view with respect to future events and are subject to risks, uncertainties, assumptions, and other factors, including those set forth in the Risk Factors on page 7. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Except, as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.

Please note the consolidated financial statements for the fiscal years ending December 31, 2020 and 2019 have been prepared assuming that the Company will continue as a going concern. As shown in the consolidated financial statements the Company had a working capital deficiency of $739,492 as well as an accumulated deficit of $2,328,320. These factors, among other things, raise substantial doubt about its ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities that might be necessary should the Company be unable to continue in operation.

Company Overview

The Company was organized on December 1, 1997. Its operations to date have been limited to obtaining the licenses to various environmental and other technologies, conducting preliminary marketing efforts and seeking financing.

Plan of Operations

The Company is a development stage corporation. It has not commenced its planned operations of manufacturing and marketing. Its operations to date have been limited to conducting various tests on its technologies and seeking financing.

The Company will continue to investigate and develop technologies, which the Company believes have great market potential. The first technology is an automated personal waste collection and cleaning machine Haruka (formerly "Heartlet"), developed by Nanomax Corporation in Japan. The Haruka is a machine used in retirement homes, hospitals, and even in private residences. The Haruka allows the patient maximum comfort. The Haruka lowers the burden on the caretaker with an automated cleaning system. This machine is the only machine in its class to have a 90% government rebate, which the company believes makes the technology, extremely competitive even in the current global economic crisis. The company obtained sales and manufacturing rights to the Haruka brand and is now seeking, manufacturing partners. The second technology is Thoughts Routine Mechanism ("RUNE") developed by the Company. We plan to develop this operating software to be used on electronic devices, such as smart phones, PC's and gaming machines. We have secured technology and human resources that extend this technology to other applications outside the gaming sector. The Company has developed an alliance with Valhalla Game Studios ("VGS") to jointly conduct game development and application development on "fate diagnosis based statistical theory, and "fate diagnosis" game service on mobile phones, smart phones, and tablets. We believe the collaboration between the Company and VGS may contribute to the future growth of the Company. Currently, Mr. Maki offers a wide range of advice as a special advisor, and this business continues to be evaluated and developed. In addition, cartoons, movies and games play a large role and influence world views and we believe that this technology be a very effective tool in this area.

The Company will also be concentrating its efforts on capital raising efforts to fund the development and marketing of these technologies.

As stated above, the Company cannot predict whether or not it will be successful in its capital raising efforts and, thus, be able to satisfy its cash requirements for the next 12 months. If the Company is unsuccessful in raising at least $150,000, it may not be able to complete its plan of expanding operations as discussed above. The company is expecting to gain the capital from issuing and selling the shares of the Company. The Company has been able to fund its existing operations from the proceeds of loans from a shareholder.




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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Results of Operations

There were no revenues for the years ended December 31, 2020 and 2019.

General and administrative expenses decreased $4,387 (6.6%) for the year ended December 31, 2020 to $61,906 as compared to $66,293 for the year ended December 31, 2019 primarily as a result of lower travel expenses and professional fess partially offset by higher supplies expense.

Interest expense-stockholders and officers increased $2,989 (19.6%) to $18,272 for the year ended December 31, 2020 as compared to $15,283 for the year ended December 31, 2019, due to additional loan from stockholders and officers during the year ended December 31, 2020.

As a result of the above, the Company incurred a net loss of $80,178 for the year ended December 31, 2020 as compared to a net loss of $81,576 for the year ended December 31, 2019.

Liquidity and Capital Resources

Total assets as of December 31, 2020 were $23,216, compared to $33,299 as of December 31, 2019. Total liabilities as of December 31, 2020 were $751,689 compared to $681,594 at December 31, 2019. The increase is primarily due an increase in advances from stockholders and officers and accrued expenses due to stockholders and officers of the Company.

The Company intends to raise additional funds in the near future through private placements of its common stock. The Company received $50,000 for stock sales in 2013. During 2015, the Company received $61,030 for a deposit for the purchase of common stock, this amount is classified as a current liability in the accompanying balance sheets as of December 31, 2020 and 2019. The proceeds from such private placements were allocated for administrative salaries, office expenses and travel, product development and testing.

The Company's minimum cash requirements for the next twelve months are estimated to be $60,000. This amount is primarily for rent, interest and professional fees. The Company does not have sufficient cash on hand to support its overhead for the next twelve months and there are no material commitments for capital at this time other than as described above. The Company will need to issue and sell shares to gain capital for operations or arrange for additional shareholder or related party loans. There is no current commitment for either of these fund sources.

During the year ended December 31, 2020, the Company had a net decrease in cash of $7,356. The Company's principal sources and uses of funds were as follows:

Cash used in operating activities. For the year ended December 31, 2020, the Company used $33,024 in cash for operations as compared to $46,821 in cash for the year ended December 31, 2019. This decrease in cash used in operations is primarily attributed to the increase in accrued expenses - stockholders and officers.

Cash provided by financing activities. Net cash provided by financing activities for the year ended December 31, 2020 was $25,668 as compared to $53,492 for the year ended December 31, 2019. This decrease is primarily the result of the decrease in amounts due to affiliates offset partially by an increase in loans from stockholders and officers.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

New Accounting Pronouncements:

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes - simplifying the accounting for income taxes (Topic 740), which is meant to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendment also improves consistent application and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective January 1, 2021, and we do not expect the adoption of this standard to have a significant impact on our financial position and results of operations.

No other recently issued accounting pronouncements had or are expected to have a material impact on the Company's consolidated financial statements.

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