UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

FOR THE QUARTERLY PERIOD ENDED ~~March~~June 3130, 2020

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

FOR THE TRANSITION PERIOD FROM __________ TO __________

COMMISSION FILE NUMBER 000-32341

OMPHALOS, CORP.
(Exact name of registrant as specified in its charter)

Nevada	84-1482082
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Unit 2, 15 Fl., 83, Nankan Rd. Sec. 1,
Luchu Dist., Taoyuan City 338, Taiwan
(Address of principal executive offices, Zip Code)

011-8863-322-9658
(Registrant's telephone number, including area code)

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

Securities registered under Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001		OMPS		OTC Pink

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 preceding 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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 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 [X] No [ ]

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

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [X]	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 account standards provided 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 [ ] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: As of ~~June~~August 154, 2020, there were 115,063,760 shares of common stock, par value $0.0001 per share, issued and outstanding.

Securities registered pursuant to Section 12(b) of the Act: N/A

EXPLANATORY NOTE

On March 4, 2020 the Securities and Exchange Commission (the “Commission”) issued an Order (Release No. 34-88318) under Section 36 of the Exchange Act granting exemptions from specified provisions of the Exchange Act and certain rules thereunder (the “Order”). The Order provides that a registrant subject to the reporting requirements of Exchange Act Section 13(a) or 15(d), and any person required to make any filings with respect to such a registrant, is exempt from any requirement to file or furnish materials with the Commission under Exchange Act Sections 13(a), 13(f), 13(g), 14(a), 14(c), 14(f), 15(d) and Regulations 13A, Regulation 13D-G (except for those provisions mandating the filing of Schedule 13D or amendments to Schedule 13D), 14A, 14C and 15D, and Exchange Act Rules 13f-1, and 14f-1, as applicable, where certain conditions are satisfied.

As a result of the global outbreak of the COVID-19 virus, the Company’s workforce, who have been largely working remotely during the COVID-19 pandemic, were delayed in completing the processes necessary for its internal controls and preparation of its financial statements and thus were unable to timely prepare this Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020. Based on the foregoing, on May 15, 2020, the Company filed a Current Report on Form 8-K to avail itself of a 45-day extension to file this Form 10-Q relying on the exemptions provided by the Order. This Form 10-Q is being filed in reliance on the Order.

TABLE OF CONTENTS

Page

		Page

	PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operation	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6
Item 4.	Controls and Procedures	6

	PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	7
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7
Item 3.	Defaults Upon Senior Securities	7
Item 4.	Mine Safety Disclosures	7
Item 5.	Other Information	7
Item 6.	Exhibits	7

SIGNATURES

	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operation	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6
Item 4.	Controls and Procedures	6
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	7
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7
Item 3.	Defaults Upon Senior Securities	7
Item 4.	Mine Safety Disclosures	7
Item 5.	Other Information	7
Item 6.	Exhibits	7
SIGNATURES

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

CONTENTS

	Page
Condensed Consolidated Balance Sheets	F-1
Condensed Consolidated Statements of Operations and Comprehensive Loss	F-2
Condensed Consolidated Statements of Cash Flows	F-3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit)	F-4
Notes to Consolidated Financial Statements	F-5-F-15
Notes to Condensed Consolidated Financial Statements	F-5-F-15

OMPHALOS, CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS

		March 31,			December 31,
		June 30,			December 31,
		2020			2019
Assets		(Unaudited)
Current Assets
Cash and cash equivalents	$	108,~~197~~722		$	4,596
Accounts receivable, net		6,~~415~~533			3,268
Inventory, net		6365,~~780~~456			64,358
Prepaid and other current assets		1936,~~928~~124			23,684
Total current assets		~~100~~116,~~320~~835			95,906
Leasehold improvements and equipment, net		~~378~~317			453
Operating lease right-of-use assets		4739,~~129~~658			56,127
Intangible assets, net		98,~~094~~463			10,011
Deposits		2,~~819~~040			2,844
Total Assets	$	~~159~~167,~~740~~313		$	165,341
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$	1816,~~202~~051		$	20,915
Accrued salaries and bonus		8,~~937~~100			11,924
Accrued expenses		3353,~~709~~685			31,659
Due to related parties		~~915~~989,~~423~~245			881,527
Loan from shareholders - current portion		~~165~~510,~~500~~000			167,000
Operating lease liability - current portion		2826,~~268~~063			31,436
Total current liabilities		1,~~170~~603,~~039~~144			1,144,461
Non-current Liabilities
Loan from shareholders, less current portion		~~827~~510,~~500~~000			835,000
Operating lease liability, less current portion		1813,~~861~~595			24,691
Total liabilities		2,~~016~~126,~~400~~739			2,004,152
Stockholders' deficit
Common stock, $0.0001 par value, 120,000,000 shares authorized, 115,063,760 shares issued and outstanding as of March 31, 2020 and December 31, 2019		11,507			11,507
Common stock, $0.0001 par value, 120,000,000 shares authorized, 115,063,760 shares issued and outstanding as of June 30, 2020 and December 31, 2019		11,507			11,507
Additional paid-in capital		124,023			124,023
Accumulated other comprehensive income		~~490~~436,~~060~~334			472,669
Accumulated deficit		(2,~~482~~531,~~250~~290	)		(2,447,010	)
Total stockholders' deficit		(1,~~856~~959,~~660~~426	)		(1,838,811	)
Total Liabilities and Stockholders' Deficit	$	~~159~~167,~~740~~313		$	165,341

See accompanying Notes to Condensed Consolidated Financial Statements

F-1

OMPHALOS, CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ~~ANDCOMPREHENSIVE LOSSFOR THE THREE MONTHS ENDED MARCH 31, 2020~~ AND ~~2019~~COMPREHENSIVE ~~(UNAUDITED)~~LOSS

		Three Months Ended			Three Months Ended
		March 31, 2020			March 31, 2019
Sales, net	$	9,267		$	1,020
Cost of sales		2,460			5,282
Gross profit (loss)		6,807			(4,262	)
Selling, general and administrative expenses		35,938			63,818
Loss from operations		(29,131	)		(68,080	)
Other income (expenses)
Interest expense		(7,470	)		(7,300	)
Rent income		1,402			-
Gain (loss) on foreign currency exchange		(41	)		118
Total other income (expenses)		(6,109	)		(7,182	)
Loss before provision for income taxes		(35,240	)		(75,262	)
Provision for income taxes		-			-
Net loss	$	(35,240	)	$	(75,262	)
Weighted average number of common shares:
Basic and diluted		115,063,760			115,063,760
Net loss per share:
Basic and diluted	$	(0.00	)	$	(0.00	)
Other Comprehensive Loss:
Net Loss	$	(35,240	)	$	(75,262	)
Foreign currency translation adjustment, net of tax		17,391			13,486
Comprehensive Loss	$	(17,849	)	$	(61,776	)

(UNAUDITED)

		For the Six						For the Three
		Months Ended June 30,						Months Ended June 30,
		2020			2019			2020			2019

Sales, net	$	14,256		$	145,958		$	4,989		$	144,938

Cost of sales		6,169			120,297			3,709			115,015

Gross profit		8,087			25,661			1,280			29,923

Selling, general and administrative expenses		82,027			136,571			46,089			72,753

Loss from operations		(73,940	)		(110,910	)		(44,809	)		(42,830	)

Other income (expenses)
Interest income		1			37			1			37
Rent income		4,763			-			3,361			-
Interest expense		(15,013	)		(14,526	)		(7,543	)		(7,226	)
Gain (loss) on foreign currency exchange		(91	)		481			(50			363
Gain on disposal of fixed assets		-			10,110			-			10,110
Total other income (expenses)		(10,340	)		(3,898	)		(4,231	)		3,284

Loss before provision for income taxes		(84,280	)		(114,808	)		(49,040	)		(39,546	)

Provision for income taxes		-			-			-			-

Net loss	$	(84,280	)	$	(114,808		$	(49,040	)	$	(39,546	)

Net loss per share:
Basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Weighted average number of common shares:
Basic and diluted		115,063,760			115,063,760			115,063,760			115,063,760

Other Comprehensive Income (Loss):
Net loss	$	(84,280	)	$	(114,808	)	$	(49,040	)	$	(39,546	)
Foreign currency translation adjustment, net of tax		(36,335	)		21,443			(53,726	)		7,957
Comprehensive Loss	$	(120,615	)	$	(93,365	)	$	(102,766	)	$	(31,589	)

See accompanying Notes to Condensed Consolidated Financial Statements.

F-2

OMPHALOS, CORP.
CONSOLIDATED STATEMENTS OF CHANGE IN STOCKHOLDERS' EQUITY (DEFICIT)
(UNAUDITED)

	Common Stock				Additional		Accumulated			Accumulated Other Comprehensive
	Shares		Amount		Paid-in Capital		~~Deficits~~Deficit			Income		Total
Balance at December 31, 2018	115,063,760	$	11,507	$	124,023	$	(2,220,140	)	$	516,668	$	(1,567,942	)
Translation adjustment	-		-		-		-			13,486		13,486
Net loss	-		-		-		(75,262	)		-		(75,262	)
Balance at March 31, 2019	115,063,760	$	11,507	$	124,023	$	(2,295,402	)	$	530,154	$	(1,629,718	)
Translation adjustment	-		-		-		-			7,957		7,957
Net loss	-		-		-		(39,546	)		-		(39,546	)
Balance at June 30, 2019	115,063,760	$	11,507	$	124,023	$	(2,334,948	)	$	538,111	$	(1,661,307	)

	Common Stock				Additional		Accumulated			Accumulated Other Comprehensive
	Shares		Amount		Paid-in Capital		~~Deficits~~Deficit			Income			Total
Balance at December 31, 2019	115,063,760	$	11,507	$	124,023	$	(2,447,010	)	$	472,669		$	(1,838,811	)
Translation adjustment	-		-		-		-			17,391			17,391
Net loss	-		-		-		(35,240	)		-			(35,240	)
Balance at March 31, 2020	115,063,760	$	11,507	$	124,023	$	(2,482,250	)	$	490,060		$	(1,856,660	)
Translation adjustment	-		-		-		-			(53,726	)		(53,726	)
Net loss	-		-		-		(49,040	)		-			(49,040	)
Balance at June 30, 2020	115,063,760	$	11,507	$	124,023	$	(2,531,290	)	$	436,334		$	(1,959,426	)

See accompanying Notes to Condensed Consolidated Financial Statements

F-3

OMPHALOS, CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019(UNAUDITED)

		Six Months			Six Months
		Ended			Ended
		June 30, 2020			June 30, 2019
Cash flows from operating activities
Net loss	$	(84,280	)	$	(114,808	)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
Amortization and depreciation		1,836			2,336
Bad debt expense		-			1,220
Gain on disposal of fixed assets		-			(10,110	)
Changes in assets and liabilities:
Increase in accounts receivable		(3,140	)		(18,034	)
Decrease in inventory		57			24,065
(Increase) decrease in prepaid and other assets		(10,928	)		12,488
(Decrease) increase in accounts payable		(5,132	)		58,524
Increase (decrease) in accrued expenses		17,061			(10,466	)
Increase in due to related parties		88,495			44,481
Net cash provided by (used in) operating activities		3,969			(10,304	)

Cash flows from investing activities
Proceeds from disposal of equipment		-			12,914
Net cash provided by investing activities		-			12,914

Effect of exchange rate changes on cash and cash equivalents		157			9,015

Net increase in cash and cash equivalents		4,126			11,625

Cash and cash equivalents
Beginning		4,596			55,499
Ending	$	8,722		$	67,124

Supplemental disclosure of cash flows
Cash paid during the year for:
Interest expense	$	-		$	4,842
Income tax	$	-		$	-

		Three Months			Three Months
		Ended			Ended
		March 31, 2020			March 31, 2019
Cash flows from operating activities
Net loss	$	(35,240	)	$	(75,262	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization and depreciation		900			1,467
Changes in assets and liabilities:
Increase in accounts receivable		(3,187	)		11,027
Increase in inventory		-			(65,645	)
Decrease in prepaid and other assets		3,554			13,352
(Decrease) increase in accounts payable		(2,533	)		51,020
(Decrease) increase in accrued expenses		(548	)		346
Increase in due to related parties		42,706			12,800
Net cash provided by (used in) operating activities		5,652			(50,895	)
Effect of exchange rate changes on cash and cash equivalents		(51	)		5,682
Net increase (decrease) in cash and cash equivalents		5,601			(45,213	)
Cash and cash equivalents
Beginning		4,596			55,499
Ending	$	10,197		$	10,286
Supplemental disclosure of cash flows
Cash paid during the year for:
Interest expense	$	-		$	4,867
Income tax	$	-		$	-

See accompanying Notes to Condensed Consolidated Financial Statements

F-4

OMPHALOS, CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited, condensed consolidated financial statements, footnote disclosures and other information should be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. Organization - Omphalos Corp. was incorporated as TOP Group Holdings, Inc. under the laws of Delaware in March 2003 and later changed its name to Soyodo Group Holdings, Inc. (the "Soyodo") in August 2005. On February 5, 2008, Soyodo acquired the outstanding shares of Omphalos Corp. Omphalos Corp. (the "Omphalos BVI) was incorporated on October 30, 2001 under the laws of the British Virgin Islands. For accounting purposes, the acquisition was treated as a recapitalization of Omphalos BVI. Omphalos BVI owns 100% of Omphalos Corp. (Taiwan), All Fine Technology Co., Ltd. (Taiwan), and All Fine Technology Co., Ltd. (B.V.I.). Omphalos Corp. (Taiwan) was incorporated on February 13, 1991 under the laws of Republic of China. All Fine Technology Co., Ltd. (Taiwan) was incorporated on March 23, 2004 under the laws of Republic of China. All Fine Technology Co., Ltd. (B.V.I.) was incorporated on February 2, 2005 under the laws of the British Virgin Islands. Omphalos Corp. (B.V.I.) and its subsidiaries supplies a wide range of equipment and parts including reflow soldering ovens and automated optical inspection machines for printed circuit board (PCB) manufacturers in Taiwan and China. Effective April 18, 2008 Soyodo entered into an Agreement and Plan of Merger (the "Merger Agreement") with Omphalos, Corp., a Nevada corporation. Pursuant to the Merger Agreement, Soyodo was merged with and into the surviving corporation, Omphalos Corp. The certificate of incorporation and bylaws of the surviving corporation became the certificate of incorporation and bylaws of the Company, and the directors and officers of Soyodo became the members of the board of directors and officers of the Company. Following the execution of the Merger Agreement, the Company filed a Certificate of Merger with the Secretary of State of Delaware and Nevada. Omphalos, Corp was incorporated on April 15, 2008 under the laws of the state of Nevada. The main purpose of the merger is to change the company's name to Omphalos, Corp. Basis of Consolidation - The condensed consolidated financial statements include the accounts of Omphalos Corp. and its wholly owned subsidiaries. All significant intercompany accounts and transactions are eliminated. Going Concern - The Company has incurred a significant net loss in the past two years and had an accumulated deficit of $2,531,290 and $2,447,010 as of June 30, 2020 and December 31, 2019, respectively. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business. This presentation presumes funds will be available to finance ongoing research and development, operations and capital expenditures and permit the realization of assets and the payment of liabilities in the normal course of operations for the foreseeable future.

Basis of Presentation - The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited, condensed consolidated financial statements, footnote disclosures and other information should be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.

Organization - Omphalos Corp. was incorporated as TOP Group Holdings, Inc. under the laws of Delaware in March 2003 and later changed its name to Soyodo Group Holdings, Inc. (the "Soyodo") in August 2005. On February 5, 2008, Soyodo acquired the outstanding shares of Omphalos Corp. Omphalos Corp. (the "Omphalos BVI) was incorporated on October 30, 2001 under the laws of the British Virgin Islands. For accounting purposes, the acquisition was treated as a recapitalization of Omphalos BVI. Omphalos BVI owns 100% of Omphalos Corp. (Taiwan), All Fine Technology Co., Ltd. (Taiwan), and All Fine Technology Co., Ltd. (B.V.I.). Omphalos Corp. (Taiwan) was incorporated on February 13, 1991 under the laws of Republic of China. All Fine Technology Co., Ltd. (Taiwan) was incorporated on March 23, 2004 under the laws of Republic of China. All Fine Technology Co., Ltd. (B.V.I.) was incorporated on February 2, 2005 under the laws of the British Virgin Islands. Omphalos Corp. (B.V.I.) and its subsidiaries supplies a wide range of equipment and parts including reflow soldering ovens and automated optical inspection machines for printed circuit board (PCB) manufacturers in Taiwan and China.

Effective April 18, 2008 Soyodo entered into an Agreement and Plan of Merger (the "Merger Agreement") with Omphalos, Corp., a Nevada corporation. Pursuant to the Merger Agreement, Soyodo was merged with and into the surviving corporation, Omphalos Corp. The certificate of incorporation and bylaws of the surviving corporation became the certificate of incorporation and bylaws of the Company, and the directors and officers of Soyodo became the members of the board of directors and officers of the Company. Following the execution of the Merger Agreement, the Company filed a Certificate of Merger with the Secretary of State of Delaware and Nevada. Omphalos, Corp was incorporated on April 15, 2008 under the laws of the state of Nevada. The main purpose of the merger is to change the company's name to Omphalos, Corp.

Basis of Consolidation - The condensed consolidated financial statements include the accounts of Omphalos Corp. and its wholly owned subsidiaries. All significant intercompany accounts and transactions are eliminated.

Going Concern - The Company has incurred a significant net loss in the past two years and had an accumulated deficit of $2,482,250 and $2,447,010 as of March 31, 2020 and December 31, 2019, respectively. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business. This presentation presumes funds will be available to finance ongoing research and development, operations and capital expenditures and permit the realization of assets and the payment of liabilities in the normal course of operations for the foreseeable future.

F-5

There can be no assurances that there will be adequate financing available to the Company, and the consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

The Company has taken certain restructuring steps to provide the necessary capital to continue its operations. These steps included: (1) Tightly budgeting and controlling all expenses; (2) Expanding product lines and recruiting a strong sales team to significantly increase sales revenue and profit in 2020; (3) The Company plans to continue actively seeking additional funding opportunities to improve and expand upon its product lines.

Use of Estimates - 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.

Cash and Cash Equivalents - Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

Accounts Receivable - Accounts receivables are carried at original invoice amount less estimates made for doubtful receivables. Management determines the allowance for doubtful accounts on a quarterly basis based on a review of the current status of existing receivables, account aging, historical collection experience, subsequent collections, management's evaluation of the effect of existing economic conditions, and other known factors. The provision is provided for the above estimates made for all doubtful receivables. Account balances are charged off against the allowance only when the Company considers it is probable that a receivable will not be recovered. Recoveries of trade receivables previously written off are recorded when received.

Inventory - Inventory is carried at the lower of cost or market. Cost is determined by using the specific identification method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and charges to operations for known and anticipated inventory obsolescence. Inventory consists substantially of finished goods and is net of an allowance for slow-moving inventory of $~~410~~421,~~775~~944 and $414,498 at ~~March~~June 3130, 2020 and December 31, 2019, respectively.

Property and Equipment - Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets as follows:

Furniture and fixtures	3 years
Machinery and equipment	3 to 5 years
Leasehold improvements	55 years

F-6

Expenditures for major renewals and betterment that extend the useful lives of property and equipment are capitalized. Expenditures for repairs and maintenance are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the asset and accumulated depreciation are removed from the accounts and the resulting profit or loss is reflected in the statement of income for the period. The accumulated depreciation was $9699,~~943~~652 and $97,751 at ~~March~~June 3130, 2020 and December 31, 2019, respectively. Depreciation expense was $71143 and $~~657~~723 for the six months ended June 30, 2020 and 2019, respectively. Depreciation expense was $72 and $66 for the three months ended ~~March~~June 3130, 2020 and 2019, respectively.

Impairment of Long-Lived Assets - The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment ("ASC 360-10"). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long-lived assets for impairment annually or more often if warranted by events and circumstances. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long-lived assets currently exist.

Intangible Assets - Include cost of patent applications that are deferred and charged to operations over their useful lives. The accumulated amortization is $4143,~~397~~402 and $40,938 at ~~March~~June 3130, 2020 and December 31, 2019, respectively. Amortization of intangible assets was $~~829~~1,693 and $~~810~~1,613 for the six months ended June 30, 2020 and 2019, respectively. Amortization of intangible assets was $864 and $803 for the three months ended ~~March~~June 3130, 2020 and 2019, respectively.

Revenue Recognition -During the fiscal year 2018, the Company has adopted FASB Accounting Standards Codification ("ASC"), Topic 606 ("ASC 606"), Revenue from Contracts with Customers, using the modified retrospective method to all contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at the beginning of 2018. The results for the Company's reporting periods beginning on and after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Based on the Company's review of existing sales contracts as of January 1, 2018, the Company concluded that the adoption of the new guidance did not have a significant change on the Company's revenue during all periods presented.

Pursuant to ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration the Company is entitled to in exchange for the goods or services the Company transfers to the customers. At inception of the contract, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

F-7

Merchandise Sales: The Company recognizes net revenues from machinery product sales when customers obtain control of the Company's products, which typically occurs upon delivery to customer. Product revenues are recorded at the net sales price, or "transaction price," which includes applicable reserves for variable consideration, including discounts, allowances, and returns.

Trade discount and allowances: The Company generally provides invoice discounts on product sales to its customers for prompt payment. The Company estimates that, based on its experience, its customers will earn these discounts and fees, and deducts the full amount of these discounts and fees from its gross product revenues and accounts receivable at the time such revenues are recognized.

Product returns: The Company estimates the amount of each product that will be returned and deducts these estimated amounts from its gross revenues at the time the revenues are recognized. For special ordered and customized machinery, no sales returns were allowed.

To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal.

The following tables provide details of revenue by major products and by geography.

Revenue by Major Products

		For the Three Months Ended
		For the Six Months Ended
		March 31,
		June 30,
		2020		2019
Machine Parts	$	9,267	$	1,020
Laser Machines	$	-	$	129,171
Total	$	9,267	$	1,020
Machine Parts		14,256		16,787
Total	$	14,256	$	145,958

Revenue by Geography

		For the Three Months Ended
		For the Six Months Ended
		March 31,
		June 30,
		2020		2019
Asia Pacific	$	914,~~267~~256	$	1145,~~020~~958
Total	$	914,~~267~~256	$	1145,~~020~~958

Leases - The Company adopted FASB Accounting Standards Codification, Topic 842, Leases ("ASC 842") using the modified retrospective approach, electing the practical expedient that allows the Company not to restate its comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption. For the comparative periods prior to adoption, the Company presented the disclosures which were required under ASC 840.

F-8

The Company applied the following practical expedients in the transition to the new standard and allowed under ASC 842:

Practical Expedient	Description
Reassessment of expired or existing contracts	The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases.
Use of hindsight	The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets.
Reassessment of existing or expired land easements	The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02.
Separation of lease and non- lease components	Lease agreements that contain both lease and non-lease components are generally accounted for separately.
Short-term lease recognition exemption	The Company also elected the short-term lease recognition exemption and will not recognize ROU assets or lease liabilities for leases with a term less than 12 months.

The new leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use ("ROU") assets and lease liabilities. ROU assets represent the Company's right to use underlying assets for the lease terms and lease liabilities represent the Company's obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. The Company's future minimum based payments used to determine the Company's lease liabilities mainly include minimum based rent payments. As most of Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company recognized lease liabilities, with corresponding ROU assets, based on the present value of unpaid lease payments for existing operating leases longer than twelve months as of January 1, 2019. The ROU assets were adjusted per ASC 842 transition guidance for existing lease-related balances of accrued and prepaid rent, unamortized lease incentives provided by lessors, and restructuring liabilities.

The adoption of ASC 842 had a substantial impact on the Company's consolidated balance sheets. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, adoption of this standard resulted in the recognition of operating lease right-of-use assets of $85,704 and operating lease liabilities of $85,704 comprised of $33,019 of current operating lease liabilities and $52,685 of non-current operating lease liabilities on the condensed consolidated balance sheet as of January 1, 2019. The adoption of ASC 842 did not result in a cumulative-effect adjustment to the opening balance of accumulated deficit.

In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in Selling, general and administrative expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur.

F-9

Research and Development Expenses - Research and development costs are generally expensed as incurred. The Company did not incur any significant research and development expenses during the three and ~~three~~six months ended ~~March~~June 3130, 2020 and 2019.

Fair Value Measurements - FASB ASC 820, "Fair Value Measurements" defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows:

	•	Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available.
	•	Level 2 - Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	•	Level 3 - Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability.

F-10

The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, accounts receivable, inventory, prepaid expenses, accounts payable, accrued liabilities, and due to related parties, approximate to fair value due to their relatively short maturities. The carrying amounts of the Company's long-term debt approximate to their fair value because of the short maturity and/or interest rates which are comparable to those currently available to the Company on obligations with similar terms.

Statement of Cash Flows - Cash flows from the Company's operations are based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.

Income Taxes - The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

Loss Per Share - The Company has adopted FASB Accounting Standards Codification subtopic 260-10, Earnings Per Share ("ASC 260-10") which specifies the computation, presentation and disclosure requirements of earnings per share information. Basic earnings per share have been calculated based upon the weighted average number of common shares outstanding. Common equivalent shares are excluded from the computation of the diluted loss per share if their effect would be anti-dilutive. For the ~~three~~six months ended ~~March~~June 3130, 2020 and 2019, the Company did not have any common equivalent shares.

Comprehensive Income (Loss) - Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income on its statements of stockholders' equity and statements of operations and comprehensive income (loss).

Foreign-currency Transactions - Foreign-currency transactions are recorded in New Taiwan dollar ("NTD") at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollar, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under stockholders' equity (deficit).

F-11

Translation Adjustment - The accounts of the Company were maintained, and its financial statements were expressed, in New Taiwan Dollar ("NTD"). Such financial statements were translated into U.S. Dollars ("$" or "USD") in accordance ASC 830, "Foreign Currency Matters", with the NTD as the functional currency. According to the financial statements, all assets and liabilities are translated at the current exchange rate, stockholders' equity (deficit) are translated at the historical rates, and income statement items are translated at an average exchange rate for the period.

Reclassifications - Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net loss or accumulated deficit.

Recently Issued Accounting Pronouncements - ~~Fair Value Measurement:~~ In ~~August~~December ~~2018~~2019, the FASB issued ASU ~~2018~~No. 2019-1312, ~~Fair~~Simplifying ~~Value Measurement ("Topic 820"): Disclosure Framework - Changes to~~ the ~~Disclosure~~Accounting ~~Requirements~~ for ~~Fair~~Income ~~Value Measurement. The ASU modifies the disclosure requirements in Topic 820~~Taxes, ~~Fair~~as ~~Value~~part ~~Measurement,~~of byits ~~removing~~initiative ~~certain disclosure requirements related~~ to ~~the~~reduce ~~fair~~complexity ~~value~~in ~~hierarchy,~~accounting ~~modifying~~standards. ~~existing~~The ~~disclosure~~amendments ~~requirements~~in ~~related to measurement uncertainty and adding new disclosure requirements, such as disclosing~~ the ~~changes~~ASU inare ~~unrealized~~effective ~~gains and losses~~ for ~~the~~fiscal ~~period~~years ~~included~~beginning inafter ~~other~~December ~~comprehensive~~15, ~~income~~2020, ~~for~~including ~~recurring~~interim ~~Level~~periods 3therein. ~~fair~~Early ~~value~~adoption ~~measurements held at the end~~ of the ~~reporting~~standard ~~period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU~~ is ~~effective~~permitted, ~~for~~including ~~public~~adoption ~~companies~~in ~~for~~interim or annual ~~reporting~~ periods ~~and~~for ~~interim~~which ~~periods~~financial ~~within~~statements ~~those~~have ~~annual~~not ~~periods~~yet ~~beginning~~been ~~after December 15, 2019~~issued. The Company is currently evaluating the effect, if any, that the ASU will have on its consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company is currently evaluating the effect, if any, that the ASU will have on its consolidated financial statements.

F-12

LEASE

The Company has no finance leases. The Company's leases primarily include office and warehouse facility spaces and copy machine under various operating lease arrangements. The Company's operating leases have remaining lease terms of up to two years.

Balance sheet information related to the Company's leases is presented below:

		March 31, 2020
		June 30, 2020
Operating Leases
Operating lease ROU assets	$	4739,~~129~~658
Operating lease liability, current portion		2826,~~268~~063
Operating lease liability, less current portion		1813,~~861~~595
Total operating lease liabilities	$	4739,~~129~~658

The following provides details of the Company's lease expenses:

		Three Months Ended
		Six Months Ended
		March 31, 2020
		June 30, 2020
Operating lease expenses	$	817,~~679~~411
	$	817,~~679~~411

Other information related to leases is presented below:

		Three Months Ended
		Six Months Ended
		March 31, 2020
		June 30, 2020
Cash Paid For Amounts Included In Measurement of Liabilities:
Operating cash flows from operating leases		817,~~679~~411
Weighted Average Remaining Lease Term:
Operating leases		1.4217 years
Weighted Average Discount Rate:
Operating leases		1.28%

The minimum future annual payments under non-cancellable leases during the next five years and thereafter, at rates now in force, are as follows:

		Operating leases
2020 (excluding the three months ended March 31, 2020)	$	23,050
2020 (excluding the six months ended June 30, 2020)	$	14,717
2021		2223,~~766~~314
2022		1,~~793~~982
2023		-
Total future minimum lease payments, undiscounted		40,013
2024		-
Less: Imputed interest		(355	)
Total future minimum lease payments, undiscounted		47,609
Present value of future minimum lease payments	$	39,658
Less: Imputed interest		(480	)
Present value of future minimum lease payments	$	47,129

F-13

3.	RELATED-PARTY TRANSACTIONS

Operating Leases

The Company leases its facility from a shareholder under an operating lease agreement which expires on January 31, 2019. On January 31, 2019, the lease term was extended for another three years, which expires on January 31, 2022. The monthly base rent is approximately $1,~~859~~867. Rent expense under this lease agreement amounted to approximately $11,190 and $10,848 for the six months ended June 30, 2020 and 2019, respectively, and approximately $5,~~577~~613 and $5,~~451~~397 for the three months ended ~~March~~June 3130, 2020 and 2019, respectively.

Loan from related party

On July 26, 2013, the Company entered into a loan agreement bearing interest at a fixed rate at 3% per annum with its shareholder to advance NT$5,000,000, equivalent $~~165~~170,~~500~~000 for working capital purpose. The term of the loan started from July 30, 2013 with maturity date on July 29, 2015. On July 31, 2015, the loan with the same amount of NT$5,000,000, equivalent $~~165~~170,~~500~~000, and the same fixed interest rate of 3% per annum was extended for another two years starting from August 1, 2015 with maturity date on July 31, 2017. On August 1, 2017, the loan with the same amount of NT$5,000,000, equivalent $~~165~~170,~~500~~000, and the same fixed interest rate of 3% per annum was extended for another three years starting from August 1, 2017 with maturity date on July 31, 2020. On August 1, 2020, the loan with the same amount of NT$5,000,000, equivalent $170,000, and the same fixed interest rate of 3% per annum was extended for another three years starting from August 1, 2020 with maturity date on July 31, 2023.

On December 31, 2013, the Company entered into another loan agreement bearing interest at a fixed rate at 3% per annum with its officer and shareholder to advance NT$5,000,000, equivalent $~~165~~170,~~500~~000 for working capital purpose. The term of the loan started from January 1, 2014 with maturity date on December 31, 2015. On December 31, 2015, the loan with the same amount of NT$5,000,000, equivalent $~~165~~170,~~500~~000, and the same fixed interest rate of 3% per annum was extended for another two years starting from January 1, 2016 with maturity date on December 31, 2018. On January 1, 2019, the loan with the same amount of NT$5,000,000, equivalent approximately $~~165~~170,~~500~~000, and the same fixed interest rate of 3% per annum was extended for another three years starting from January 1, 2019 with maturity date on December 31, 2021.

On July 5, 2015, the Company entered into another loan agreement bearing interest at a fixed rate at 3% per annum with its shareholder to advance NT$10,000,000, equivalent $~~331~~340,000, for working capital purpose. The term of the loan started from July 1, 2015 with maturity date on June 30, 2018. On July 1, 2018, the loan with the same amount of NT$10,000,000, equivalent $~~331~~340,000, and the same fixed interest rate of 3% per annum was extended for another three years starting from July 1, 2018 with maturity date on June 30, 2021.

On July 1, 2016, the Company entered into another loan agreement bearing interest at a fixed rate at 3% per annum with its shareholder to advance NT$10,000,000, equivalent $~~331~~340,000, for working capital purpose. The term of the loan started from July 1, 2016 with maturity date on June 30, 2019. On July 1, 2019, the loan with the same amount of NT$10,000,000, equivalent $~~331~~340,000, and the same fixed interest rate of 3% per annum was extended for another three years starting from July 1, 2019 with maturity date on June 30, 2022.

As of ~~March~~June 3130, 2020 and December 31, 2019, there were $~~993~~1,020,000 and $1,002,000 advances outstanding, of which $~~165~~510,~~500~~000 and $167,000 was presented under current liabilities, respectively.

Interest expense was $715,~~470~~013 and $714,~~300~~526 for the ~~three~~six months ended ~~March~~June 3130, 2020 and 2019, respectively.

Interest expense was $7,543 and $7,226 for the three months ended June 30, 2020 and 2019, respectively.

Advances from related party - The Company also has advanced funds from its officer and shareholder for working capital purposes. The Company has not entered into any agreement on the repayment terms for these advances. The advances bear no interest rate and are due upon demand by shareholders.

As of March 31, 2020 and December 31, 2019, there were $915,423 and $881,527 advances outstanding, respectively. The outstanding balance bears no interest and is due upon request.

F-14

As of June 30, 2020 and December 31, 2019, there were $989,245 and $881,527 advances outstanding, respectively. The outstanding balance bears no interest and is due upon request.

4.	SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of ~~March~~June 3130, 2020 have been incorporated into these financial statements and there are no additional subsequent events that require disclosure in accordance with FASB ASC Topic 855, "Subsequent Events."

******

F-15

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operation.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, including this discussion and analysis by management, contains or incorporates forward-looking statements. All statements other than statements of historical fact made in report are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. These forward-looking statements can be identified by the use of words such as "believes," "estimates," "could," "possibly," "probably," anticipates," "projects," "expects," "may," "will," or "should" or other variations or similar words. No assurances can be given that the future results anticipated by the forward-looking statements will be achieved. Forward-looking statements reflect management's current expectations and are inherently uncertain. Our actual results may differ significantly from management's expectations. The potential risks and uncertainties that could cause our actual results to differ materially from those expressed or implied herein are set forth in our Annual Report on Form 10-K for the year ended December 31, 2019.

The following discussion and analysis should be read in conjunction with our financial statements, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management.

Results of Operations -Three Months Ended ~~March~~June 3130, 2020 Compared to the Three Months Ended ~~March~~June 3130, 2019

Net sales were $94,~~267~~989 for the three months ended ~~March~~June 3130, 2020 as compared to $1144,~~020~~938 for the three months ended ~~March~~June 3130, 2019. This represented ana ~~increase~~decrease of $8139,~~247~~949 or ~~808~~96.56% compared to the prior year period. The ~~increase~~decrease in net sales was primarily ~~because~~the ~~more~~result ~~machine~~of ~~parts~~a ~~were~~weaker ~~sold~~demand ~~during~~in ~~the~~laser ~~three~~marking ~~months~~machine ~~ended March 31, 2020~~sales.

Cost of sales decreased by $2111,~~822~~306 or 5396.48% to $23,~~460~~709 for the three months ended ~~March~~June 3130, 2020, as compared to $5115,~~282~~015 for the three months ended ~~March~~June 3130, 2019. Gross profit was $61,~~807~~280 for the three months ended ~~March~~June 3130, 2020, compared ~~to gross loss of~~ $(429,~~262)~~923 for the same period in 2019. Gross profit ~~(loss)~~ as a percentage of net sales was approximately 7325.57% for the three months ended ~~March~~June 3130, 2020, compared to approximately ~~(417~~20.86%) in the same period in 2019. The change in gross margin was primarily due to higher margin on the products sold in the three months ended ~~March~~June 3130, 2020.

For the three months ended ~~March~~June 3130, 2020, selling, general and administrative expenses totaled $3546,~~938~~089, represented a decrease of $2726,~~880~~664, or 4336.7%, as compared to $6372,~~818~~753 for the same period in 2019. The decrease in selling, general and administrative expenses was primarily attributable to the decrease in salary, professional, entertainment, ~~insurance~~traveling ~~premiums~~ and repair and maintenance expenses.

For the three months ended ~~March~~June 3130, 2020, loss from operations ~~decreased~~increased to $2944,~~131~~809 as compared to $6842,~~080~~830 for the three months ended ~~March~~June 3130, 2019. This represented aan ~~decreased~~increased loss of $381,~~949~~979, or 574.26% comparing the two periods. The ~~decrease~~increase in loss from operations was mainly due to the ~~increase~~decrease in net sales, ~~and~~partially offset by the decrease in ~~cost of sales and~~ selling, general and administrative expenses for the three months ended ~~March~~June 3130, 2020.

Other income (expenses) were $6(4,~~109~~231) and $73,~~182~~284 for the three months ended ~~March~~June 3130, 2020 and 2019, respectively. This represented aan ~~decreased~~increased loss of $17,~~073~~515 or 14228.98%. The main reason for the ~~decreased~~increased other expenses was primarily due to the ~~increase~~decreased ingain ~~rent~~on ~~income~~disposal of fixed assets.

Our net loss was $3549,~~240~~040 for the three months ended ~~March~~June 3130, 2020, compared to a net loss of $7539,~~262~~546 for the three months ended ~~March~~June 3130, 2019. The ~~decrease~~increase in net loss for the three months ended ~~March~~June 3130, 2020 was due to the reasons described above.

4Results of Operations -Six months Ended June 30, 2020 Compared to the Six months Ended June 30, 2019

~~Liquidity~~Net ~~and~~sales ~~Capital~~were ~~Resources~~$14,256 for the six months ended June 30, 2020 as compared to $145,958 for the six months ended June 30, 2019. This represented a decrease of $131,702 or 90.2% compared to the prior year period. The decrease in net sales was primarily the result of a weaker demand in laser marking machine sales.

~~Cash and cash equivalents were $10,197 on March 31, 2020 and $~~4,596 on December 31, 2019. Our total current assets were $100,320 on March 31, 2020, as compared to $95,906 on December 31, 2019. Our total current liabilities were $1,170,039 on March 31, 2020, as compared to $1,144,461 on December 31, 2019.

WeCost ~~had~~of ~~working~~sales ~~capital~~decreased ~~deficiency~~by of $1114,~~069,719~~128 onor ~~March~~94.9% 31to $6,169 ~~2019~~for ~~compared~~the ~~with~~six ~~working~~months ~~capital~~ended ~~deficiency~~June of30, 2020, as compared to $1120,~~048,555~~297 onfor ~~December~~the 31six months ended June 30, 2019. ~~This~~Gross ~~increase~~profit inwas ~~working~~$8,087 ~~capital~~for ~~deficiency~~the ~~was~~six ~~primarily~~months ~~due~~ended toJune ~~decreased~~30, ~~prepaid~~2020, ~~expense~~compared ~~and~~to ~~other~~$25,661 ~~current~~for ~~assets~~the ~~and~~same ~~inventory,~~period ~~and~~in ~~increased~~2019. ~~accrued~~Gross ~~expenses~~profit ~~and~~as ~~due~~a topercentage ~~related~~of ~~parties,~~net ~~which~~sales was ~~partially~~approximately ~~offset~~56.7% byfor ~~increased~~the ~~cash~~six ~~and~~months ~~cash~~ended ~~equivalents~~June ~~and~~30, ~~accounts receivables~~2020, ~~and~~compared to approximately 17.6% in the ~~decreased~~same ~~accounts~~period ~~payables,~~in ~~current~~2019. ~~portion~~The ofchange ~~loan~~in ~~from~~gross ~~shareholders~~margin ~~and~~was primarily due to higher margin on the ~~current~~products ~~portion~~sold ofin ~~lease~~the ~~liability~~six months ended June 30, 2020.

~~Net~~For ~~cash~~the ~~flows~~six ~~provided~~months inended ~~operating~~June ~~activities~~30, ~~was~~2020, $5selling,~~652~~ ~~during~~general ~~the~~and ~~three~~administrative ~~months~~expenses ~~ended~~totaled ~~March 31~~$82, ~~2020~~027, anrepresented ~~increase~~a decrease of $5654,~~547~~544, ~~compared~~or to39.9%, ~~net~~as ~~cash~~compared ~~flows~~to ~~used in operating activities of~~ $50136,~~895~~571 ~~during~~for the ~~three~~same ~~months~~period ~~ended~~in ~~March 31,~~ 2019. The ~~increase~~decrease in ~~net~~selling, ~~cash~~general ~~flow~~and ~~provided~~administrative byexpenses ~~operating activities during the three months ended March 31, 2020~~ was primarily ~~due~~attributable to the ~~decreases~~decrease in ~~net~~salary, ~~loss and inventory~~professional, ~~and the increase in due to related parties~~entertainment, ~~partially offset by the increase in account receivables and prepaid and other current assets~~rent, and ~~the~~repair ~~decrease in accounts payable~~ and ~~accrued~~maintenance expenses.

WeFor ~~did~~the ~~not~~six ~~have~~months ~~net~~ended ~~cash~~June ~~flows~~30, ~~provided~~2020, byloss ~~nor~~from ~~used~~operations indecreased ~~investing~~to ~~activities~~$73,940 ~~and~~as ~~financing~~compared ~~activities~~to ~~during~~$110,910 for the ~~three~~six months ended ~~March~~June 3130, ~~2020~~2019. This represented a decreased loss of $36,970, or 33.3% comparing the two periods. The decrease in loss from operations was mainly due to the decrease in selling, general and ~~2019~~administrative expenses for the six months ended June 30, 2020.

~~Net~~Other ~~change~~expenses inwere ~~cash~~$10,340 and ~~cash~~$3,898 ~~equivalents~~for ~~was~~the ansix ~~increase~~months ofended $5June 30,~~601~~ ~~during~~2020 ~~the~~and ~~three~~2019, ~~months~~respectively. ~~ended~~This ~~March~~represented 31an increased loss of $6,442 ~~2020~~or 165.3%. ~~Net~~The ~~change~~main inreason ~~cash~~for ~~and~~the ~~cash~~increased ~~equivalents~~other expenses was aprimarily ~~decrease~~due ofto ~~$45,213~~the ~~during~~decreased ~~the~~gain ~~three~~on ~~months~~disposal ~~ended~~of ~~March~~fixed 31assets, ~~2019~~partially offset by the increased rent income.

~~Going~~Our ~~Concern~~net loss was $84,280 for the six months ended June 30, 2020, compared to a net loss of $114,808 for the six months ended June 30, 2019. The decrease in net loss for the six months ended June 30, 2020 was due to the reasons described above.

~~The~~Liquidity ~~Company had an accumulated deficit of $2,482,250~~ and ~~$2,447,010~~Capital as of March 31, 2020 and December 31, 2019, respectively. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business. This presentation presumes funds will be available to finance ongoing research and development, operations and capital expenditures and permit the realization of assets and the payment of liabilities in the normal course of operations for the foreseeable future.Resources

~~These~~Cash ~~factors~~and cash equivalents were $8,722 ~~among~~on ~~others~~June 30, ~~raise~~2020 ~~substantial~~and ~~doubt~~$4,596 ~~about~~on ~~our~~December ~~ability~~31, to2019. ~~continue~~Our total current assets were $116,835 on June 30, 2020, as acompared ~~going~~to ~~concern.~~$95,906 ~~The~~on ~~accompanying~~December ~~consolidated~~31, ~~financial~~2019. ~~statements~~Our dototal ~~not~~current ~~include~~liabilities ~~any~~were ~~adjustments~~$1,603,144 ~~that~~on ~~might~~June ~~result~~30, ~~from~~2020, ~~the~~as ~~outcome~~compared ofto ~~this~~$1,144,461 ~~uncertainty~~on December 31, 2019.

~~Future~~We ~~Impact~~had working capital deficiency of ~~Covid-19~~$1,486,309 on June 30, 2019 compared with working capital deficiency of $1,048,555 on December 31, 2019. This increase in working capital deficiency was primarily due to the increased accrued expenses, due to related parties and current portion of loan from shareholders, which was partially offset by the increased cash and cash equivalents, accounts receivables, inventories, and prepaid and other current assets, and the decreased accounts payables and the current portion of lease liability.

~~Our~~Net ~~results~~cash offlows ~~operations~~provided ~~could be adversely affected by general conditions~~ in ~~the~~operating ~~global~~activities ~~economy,~~was ~~including conditions that are outside of our control~~$3,969 ~~such~~during as the ~~impact~~six ofmonths ~~health~~ended ~~and~~June ~~safety~~30, ~~concerns~~2020, ~~from~~an ~~the~~increase ~~outbreak~~ of ~~COVID-19.~~$14,273, ~~The~~compared ~~outbreak~~to innet ~~China~~cash ~~has~~flows ~~resulted~~used in ~~the~~operating ~~temporary~~activities ~~closures~~ of ~~factories~~$10,304 asduring ~~mandated by~~ the ~~provincial~~six ~~governments~~months inended ~~various~~June ~~provinces of China from late January to March~~30, ~~which has adversely affected our ability to supply equipment, services and related products to our customers~~2019. ~~Due~~The toincrease ~~the Chinese factories' shutdowns and traffic restrictions during the outbreak~~ in ~~China~~net ~~and~~cash ~~potential~~flow ~~shutdowns~~provided ~~and~~by ~~traffic~~operating ~~restrictions~~activities induring the ~~countries~~six ~~where~~months ~~our~~ended ~~suppliers~~June ~~are located~~30, ~~our~~2020 ~~supply~~was ~~chain~~primarily ~~and~~due ~~business~~to ~~operations of our suppliers may be affected. Disruptions from~~ the ~~closure~~decrease of ~~supplier~~inventories, and ~~manufacturer facilities, interruptions in~~ the ~~supply~~increase of ~~raw~~accrued ~~materials~~expenses and ~~components,~~due ~~personnel~~to ~~absences~~related parties, orpartially ~~restrictions~~offset onby ~~the~~net ~~shipment of our or our suppliers' or customers' products~~loss, ~~could~~the ~~have~~increase ~~adverse ripple effects on our manufacturing output and delivery schedule. We also face difficulties~~ in ~~collecting our~~ accounts receivables ~~due~~and toprepaid ~~the effects of COVID-19 on our customers~~ and ~~risk~~other ~~gaining~~current ~~a large amount of bad debt. Global health concerns~~assets, ~~such as COVID-19, could also result in social, economic,~~ and ~~labor instability in~~ the ~~countries~~decrease ~~and localities~~ in ~~which~~accounts ~~we or our suppliers and customers operate~~payable.

5Net cash flows provided by investing activities was $0 and $12,914 during the six months ended June 30, 2020 and 2019, respectively. The decrease was primarily due to the decreased proceeds from disposal of fixed assets.

~~Although~~We ~~China~~did ~~has~~not ~~already~~have ~~begun~~net tocash ~~recover~~flows ~~from~~provided the outbreak of COVID-19, the epidemic continues to spread on a global scale and there is the risk of the epidemic returning to China in the future, thereby causing further business interruption. While the potential economic impact brought by ~~and~~nor ~~the~~used ~~duration of COVID-19 may be difficult to assess or predict, a widespread pandemic could result~~ in ~~significant~~financing ~~disruption~~activities ofduring ~~global financial markets, reducing our ability to access capital, which could in~~ the ~~future~~six ~~negatively~~months ~~affect~~ended ~~our~~June ~~liquidity. In addition~~30, a2020 ~~recession or market correction resulting from the spread of COVID-19 could materially affect our business~~ and ~~the value of our common stock~~2019. If our future sales continue to decline significantly, we may risk facing bankruptcy due to our recurring fixed expenses. The extent to which COVID-19 impacts our results will depend on many factors and future developments, including new information about COVID-19 and any new government regulations which may emerge to contain the virus, among others.

~~Inflation~~Net change in cash and cash equivalents was an increase of $4,126 during the six months ended June 30, 2020. Net change in cash and cash equivalents was an increase of $11,625 during the six months ended June 30, 2019.

~~Our~~Going ~~opinion is that inflation has not had a material effect on our operations and is not expected to have any material effect on our operations.~~Concern

~~Climate~~The ~~Change~~Company had an accumulated deficit of $2,531,290 and $2,447,010 as of June 30, 2020 and December 31, 2019, respectively. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business. This presentation presumes funds will be available to finance ongoing research and development, operations and capital expenditures and permit the realization of assets and the payment of liabilities in the normal course of operations for the foreseeable future.

~~Our opinion is that neither climate change, nor governmental regulations related to climate change, have had, or are expected to have, any material effect on our operations.~~5

~~Off-Balance~~These ~~Sheet~~factors, ~~Arrangements~~among others, raise substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

WeFuture doImpact not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of ~~operations, liquidity, capital expenditures or capital resources that is material to investors.~~Covid-19

Our results of operations could be adversely affected by general conditions in the global economy, including conditions that are outside of our control, such as the impact of health and safety concerns from the outbreak of COVID-19. The outbreak in China has resulted in the temporary closures of factories as mandated by the provincial governments in various provinces of China from late January to March, which has adversely affected our ability to supply equipment, services and related products to our customers. Due to the Chinese factories' shutdowns and traffic restrictions during the outbreak in China and potential shutdowns and traffic restrictions in the countries where our suppliers are located, our supply chain and business operations of our suppliers may be affected. Disruptions from the closure of supplier and manufacturer facilities, interruptions in the supply of raw materials and components, personnel absences, or restrictions on the shipment of our or our suppliers' or customers' products, could have adverse ripple effects on our manufacturing output and delivery schedule. We also face difficulties in collecting our accounts receivables due to the effects of COVID-19 on our customers and risk gaining a large amount of bad debt. Global health concerns, such as COVID-19, could also result in social, economic, and labor instability in the countries and localities in which we or our suppliers and customers operate.

Although China has already begun to recover from the outbreak of COVID-19, the epidemic continues to spread on a global scale and there is the risk of the epidemic returning to China in the future, thereby causing further business interruption. While the potential economic impact brought by and the duration of COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing our ability to access capital, which could in the future negatively affect our liquidity. In addition, a recession or market correction resulting from the spread of COVID-19 could materially affect our business and the value of our common stock. If our future sales continue to decline significantly, we may risk facing bankruptcy due to our recurring fixed expenses. The extent to which COVID-19 impacts our results will depend on many factors and future developments, including new information about COVID-19 and any new government regulations which may emerge to contain the virus, among others.

Inflation

Our opinion is that inflation has not had a material effect on our operations and is not expected to have any material effect on our operations.

Climate Change

Our opinion is that neither climate change, nor governmental regulations related to climate change, have had, or are expected to have, any material effect on our operations.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is: (1) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure; and (2) recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms.

Management has determined that our internal controls contain material weaknesses due to the absence of segregation of duties, as well as lack of qualified accounting personnel and excessive reliance on third party consultants for accounting, financial reporting and related activities, making it unlikely that we will be able to implement effective internal controls over financial reporting in the near future.

Due to our size and nature, segregation of all conflicting duties is not possible. However, to the extent possible, we plan to implement procedures to assure that the initiation of transactions, the custody of assets and the recording of transactions will be performed by separate individuals if and when we have sufficient income to enable us to hire such individuals, and we cannot give any assurance that we will be able to hire such personnel. Our financial condition makes it difficult for us to implement a system of internal controls over financial reporting.

Until we generate significantly greater revenues and employ accounting personnel, it is doubtful that we will be able implement any system which provides us with any degree of internal controls over financial reporting. Due to the nature of this material weakness in our internal control over financial reporting, there is more than a remote likelihood that misstatements which could be material to our annual or interim financial statements could not be prevented or detected.

A material weakness (within the meaning of PCAOB Auditing Standard No. 5) is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of our financial reporting.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation 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.

Changes in Internal Control over Financial Reporting

There were no changes that have affected, or are reasonably likely to materially affect, our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) under the Exchange Act) during the quarter ended ~~March~~June 3130, 2020.

PART II

Item 1.	Legal Proceedings.
Currently we are not involved in any pending litigation or legal proceeding.
Item 1A.	Risk Factors.
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3.	Defaults Upon Senior Securities.
None.
Item 4.	Mine Safety Disclosures.
None.
Item 5.	Other Information.
None.
Item 6.	Exhibits.

Resignation of Pi-Yun Chu

On April 1, 2020, Ms. Pi-Yun Chu resigned from her position as Chief Financial Officer (“CFO”) of the Company effective immediately. Ms. Yun’s resignation is not as a result of any disagreement with the Company relating to its operations, policies or practices.

Appointment of Ru Yi Wang

Effective April 1, 2020, the Company’s board of directors (the “Board”) appointed Ms. Ru Yi Wang as CFO of the Company to fill the vacancy created by the resignation of Ms. Yun.

The biographical information of Ms. Wang is set forth below.

Ms. Wang has been with Omphalos since 2015. During that time she functioned in various accounting related positions. She was appointed our Chief Financial Officer in April 2020. Ms. Wang has done extensive accounting coursework.

Ms. Wang does not have a family relationship with any director or executive officer of the Company and has not been involved in any transaction with the Company during the past two years that would require disclosure under Item 404(a) of Regulation S-K.

Item 6. Exhibits.

Exhibit Number	Description

3.1	Certificate of Incorporation of the Company (incorporated by reference to the Company's proxy statement on Schedule 14A filed with the Commission on March 5, 2003 (the "Proxy Statement").

3.2	Articles of Amendment to the Articles of Incorporation of the Company (incorporated by reference to the Proxy Statement).

3.3	By-Laws of the Company (incorporated by reference to the Proxy Statement).

3.4	Amended and Restated Certificate of Incorporation of the Company Incorporated by reference to the information statement on Schedule 14C filed with the SEC on March 15, 2005).

3.5	Articles of Amendment to the Articles of Incorporation of the Company (incorporated by reference to the information statement on Schedule 14C filed with SEC on August 26, 2005).

3.6	Amended and Restated By-Laws of Omphalos, Corp., incorporated by reference to Exhibit 3.7 of the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2009.

31.1	Certification by Principal Executive Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.*

31.2	Certification by Principal Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.*

32.1	Certification by Principal Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code.*

32.2	Certification by Principal Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code.*

101.INS	XBRL Instance Document+
101.SCH	XBRL Taxonomy Extension Schema+
101.CAL	XBRL Taxonomy Extension Calculation Linkbase+
101.DEF	XBRL Taxonomy Extension Definition Linkbase+
101.LAB	XBRL Taxonomy Extension Label Linkbase+
101.PRE	XBRL Taxonomy Extension Presentation Linkbase+

*filed herewith
+submitted herewith

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

OMPHALOS, CORP.

Date: June 29, 2020	By:	/s/ Sheng-Peir Yang
Date: August 13, 2020	By:	/s/ Sheng-Peir Yang
		Sheng-Peir Yang
		Chief Executive Officer and Director
		(Principal Executive Officer)
Date: June 29, 2020	By:	/s/ Ru Yi Wang
Date: August 13, 2020	By:	/s/ Ru Yi Wang
		Ru Yi Wang
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

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