The following information should be read in conjunction with (i) the financial statements of Evil Empire Designs, Inc., a Nevada corporation (the "Company"), and the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and the December 31, 2021 audited financial statements and related notes included in the Company's Form 10-K (File No. 000-56212; the "Form 10-K"), as filed with the Securities and Exchange Commission on April 18, 2021. Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute "forward-looking" statements.





OVERVIEW

The Company was incorporated in the State of Nevada on December 23, 2009, and has established a fiscal year end of December 31.

The Company's authorized capital stock amounts to 125,000,000 shares, consisting of 100,000,000 of common stock with a par value of $0.001 per share, and 25,000,000 shares of preferred stock with a par value of $0.001 per share.





Going Concern

To date the Company has had operations and revenues of a developing business, and consequently has incurred recurring losses from operations. No substantial revenues are anticipated until we complete the financing we endeavor to obtain, as described in the Form 10-K, and implement our initial business plan. The ability of the Company to continue as a going concern is dependent on raising capital to fund our business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern.

Our activities have been financed from related-party loans and the proceeds of share subscriptions.

The Company plans to raise additional funds through debt or equity offerings. There is no guarantee that the Company will be able to raise any capital through this or any other offerings.





PLAN OF OPERATION

We are an operating motorcycle parts design, manufacturing, marketing and sales business and have generated revenues of $61,229 from our business for the three months ended March 31, 2022. During the 12 months following the date of filing of this Quarterly Report on Form 10-Q, we will be focused on attempting to raise $750,000 of funds to expand our business. We have no assurance that future financing will materialize. If that financing is not available, we may be unable to continue. Management believes that if we are successful in raising $750,000, we will be able to generate sales revenue within the following twelve months thereof. However, if such public financing is not available, we could fail to satisfy our future cash requirements. We have no assurance that future financing will materialize. If that financing is not available we may be unable to continue. Management believes that if subsequent private placements are successful, we will be able to generate sales revenue within the following twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.






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If we are unsuccessful in raising the additional proceeds through a private placement offering we will then have to seek additional funds through debt financing, which would be highly difficult for an early-stage company to secure. Therefore, the Company is highly dependent upon the success of the anticipated private placement offering and failure thereof would result in the Company having to seek capital from other sources such as debt financing, which may not even be available to the Company. However, if such financing were available, because we are an early stage company, it would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If we cannot raise additional proceeds via a private placement of its common stock or secure debt financing it would be required to cease business operations. As a result, investors in our common stock would lose all of their investment.

With new investors joining, the Company will increase its current efforts on marketing and selling its already created variety of products.





RESULTS OF OPERATIONS

Comparison of the three and nine months ended March 31, 2022 and 2021

The Company recorded revenue of $50,895 and $3,829 during the three months ended March 31, 2022 and 2021, respectively. The Company recorded revenue of $61,229 and $7,594 during the nine months ended March 31, 2022 and 2021, respectively.

Operating expenses for the three-month periods ended March 31, 2022 and 2021, were $6,4807 and $27,443, respectively, consisting of a general and administrative expense of $4,583 and depreciation and amortization of $1,897 for the three months ended March 31, 2022, and a general and administrative expense of $25,546 and depreciation and amortization of $1,897 for the three months ended March 31, 2022.

For the three-month period ended March 31, 2022, we had net loss of $19,290. By comparison, for the three-month period ended March 31, 2021, we incurred a net loss of $32,777.

Liquidity and Capital Resources

There are no agreements or understandings about future loans by or with the officers, directors, principals, affiliates, or shareholders of the Company. The Company will continue to raise outside capital through loans, equity sales and possible licensing agreements. These factors raise substantial doubt about the company's ability to continue as a going concern

At March 31, 2022, the Company had negative working capital of $378,173. Current assets were $5,268. Current liabilities as of the same date were $695,835, consisting of convertible debt of $379,125, outstanding notes of $158,959, and accounts payable and accrued liabilities $157,751.

Net cash used in operating activities in the three-month period ended March 31, 2022 was 5,188, compared to net cash used of $18,353 in the same period in 2021. The variance between the same periods relates mainly to a lower loss in 2022 over 2021.

Net cash used in investing activities was $0 for the three-month period ended March 31, 2022 and $(27,500) in the same period in 2021.

Net cash provided by financing activities for the three months period ended March 31, 2022 was $15,911, compared to $41,880 in the same period in 2021. Cash provided was a result of proceeds from convertible notes in the principal amounts of $15,929 in 2022 and $ 41,880 issued in 2021.

As of March 31, 2022, the Company had total assets of $317,662 and total liabilities of $695,835. Our accumulated deficit as of March 31, 2022 was $608,988.





Inflation

We believe that inflation has not had a significant impact on our operations since inception.






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Off-Balance Sheet Arrangements

We had no off-balance sheet arrangements or guarantees of third party obligations at March 31, 2022.





Subsequent Events

None through date of this filing.

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