---

SECURITIES
AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM
10-Q

(Mark
One)

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

ACT
OF 1934

For
the quarterly period ended June 30, 2014

OR

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

From
the transition period from_____________________________	to	.



Commission File Number 333-150829

HALL
TEES, INC.

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



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





7405
Armstrong, Rowlett, Texas 75088
(Address of principal executive offices)

(Issuer's
telephone number)



N/A

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

Indicate
by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days:. Yes [X] No [ ].

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

Large
Accredited Filer [ ]	Accelerated Filer [ ]

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

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

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

As
of August 15, 2014, there were 7,755,400 shares of Common Stock of the issuer outstanding.

1







TABLE
OF CONTENTS







|       | PART I FINANCIAL STATEMENTS                                |   
|------ | ---------------------------------------------------------- | --
|       |                                                            |   
|Item 1 | Financial Statements (Unaudited)                           | 3 
|       |                                                            |   
|Item 2 | Management's Discussion and Analysis or Plan of Operation  | 11
|       |                                                            |   
|Item 3 | Quantitative and Qualitative Disclosures about Market Risk | 13
|       |                                                            |   
|Item 4 | Controls and Procedures                                    | 13
|       |                                                            |   
|       | PART II OTHER INFORMATION                                  |   
|       |                                                            |   
|Item 5 | Mine Safety Disclosures                                    | 14
|       |                                                            |   
|Item 6 | Exhibits and Reports on Form 8-K                           | 14







2





HALL
TEES, INC.

Condensed
Consolidated Balance SheetsJune 30, 2014 and December 31, 2013

|ASSETS                                                                                                             |  | 2014 (Unaudited) |          | 2013 (Audited)
|------------------------------------------------------------------------------------------------------------------ |  | ---------------- | -------- | --------------
|Current Assets                                                                                                     |  |                  |          |               
|Cash and Cash Equivalents                                                                                          |  | $                | 35,140   |               
|                                                                                                                   |  |                  |          |               
|Accounts Receivable, Net of Allowance for Doubtful Accounts of                                                     |  |                  |          |               
|$0 and $0                                                                                                          |  |                  | 134      |               
|Total Current Assets                                                                                               |  |                  | 35,274   |               
|                                                                                                                   |  |                  |          |               
|Fixed Assets, Net of Accumulated Depreciation of $98,201 and $90,518                                               |  |                  | 11,766   |               
|                                                                                                                   |  |                  |          |               
|Other assets                                                                                                       |  |                  | 0        |               
|                                                                                                                   |  |                  |          |               
|TOTAL ASSETS                                                                                                       |  | $                | 47,040   |               
|                                                                                                                   |  |                  |          |               
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                               |  |                  |          |               
|Current Liabilities                                                                                                |  |                  |          |               
|Accounts Payable                                                                                                   |  | $                | 13,243   |               
|Accrued Expenses                                                                                                   |  |                  | 41,081   |               
|Amounts due to Shareholder                                                                                         |  |                  | 49,643   |               
|                                                                                                                   |  |                  |          |               
|Total Current Liabilities                                                                                          |  |                  | 103,967  |               
|                                                                                                                   |  |                  |          |               
|Total Liabilities                                                                                                  |  |                  | 103,967  |               
|                                                                                                                   |  |                  |          |               
|Stockholders' Equity                                                                                               |  |                  |          |               
|Preferred Stock, $.001 par value, 25,000,000 shares authorized, 0 and 0 shares issued and outstanding              |  |                  | 0        |               
|Common Stock, $.001 par value, 50,000,000 shares authorized, 7,755,400 and 7,755,400 shares issued and outstanding |  |                  | 7,755    |               
|Additional Paid-In Capital                                                                                         |  |                  | 389,945  |               
|Accumulated Deficit                                                                                                |  |                  | (454,627 | )             
|Total Stockholders' Equity                                                                                         |  |                  | (56,927  | )             
|                                                                                                                   |  |                  |          |               
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                         |  | $                | 47,040   |               



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

3







|HALL
        TEES, INC.
        Condensed
        Consolidated Statements of Operations
        For
        the Three and Six Months Ended June 30, 2014 and 2013
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------

(Unaudited)



|                                             |  | Three Months Ended |           | Six months Ended
|-------------------------------------------- |  | ------------------ | --------- | ----------------
|                                             |  | June 30, 2014      |           | June 30, 2013   
|                                             |  |                    |           |                 
|REVENUE                                      |  | $                  | 16,380    |                 
|COST OF SALES                                |  |                    | 620       |                 
|GROSS PROFIT                                 |  |                    | 15,760    |                 
|                                             |  |                    |           |                 
|OPERATING EXPENSES                           |  |                    |           |                 
|Depreciation                                 |  |                    | 3,842     |                 
|General and Administrative Expenses          |  |                    | 23,963    |                 
|TOTAL OPERATING EXPENSES                     |  |                    | 27,805    |                 
|                                             |  |                    |           |                 
|NET OPERATING LOSS                           |  |                    | (12,045   | )               
|                                             |  |                    |           |                 
|OTHER INCOME                                 |  |                    |           |                 
|Interest Income                              |  |                    | 2         |                 
|                                             |  |                    |           |                 
|TOTAL OTHER INCOME                           |  |                    | 2         |                 
|                                             |  |                    |           |                 
|NET LOSS BEFORE INCOME TAXES                 |  |                    | (12,043   | )               
|                                             |  |                    |           |                 
|Provision for Income Taxes (Expense) Benefit |  |                    | —         |                 
|                                             |  |                    |           |                 
|NET LOSS                                     |  | $                  | (12,043   | )               
|                                             |  |                    |           |                 
|EARNINGS PER SHARE, Basic and Diluted        |  |                    |           |                 
|                                             |  |                    |           |                 
|Weighted Average of Outstanding Shares       |  |                    | 7,755,400 |                 
|Income (Loss) for Common Stockholders        |  | $                  | (0.00     | )               





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

4





HALL
TEES, INC.Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit)For the Six Months ended June 30, 2014 andThe Year Ended December 31, 2013(Unaudited)

|                                                  |  | Common Stock |           |        |  |                                                                                        |      
|------------------------------------------------- |  | ------------ | --------- | ------ |  | -------------------------------------------------------------------------------------- | -----
|                                                  |  | Shares       |           | Amount |  | Paid-In
                                                                       Capital |      
|Stockholders’ Equity (Deficit),                   |  |              |           |        |  |                                                                                        |      
|January 1, 2013                                   |  |              | 7,755,400 |        |  | $                                                                                      | 7,755
|Net Loss                                          |  |              |           |        |  |                                                                                        |      
|                                                  |  |              |           |        |  |                                                                                        |      
|Stockholders' Equity (Deficit), December 31, 2013 |  |              | 7,755,400 |        |  | $                                                                                      | 7,755
|                                                  |  |              |           |        |  |                                                                                        |      
|Net Loss                                          |  |              |           |        |  |                                                                                        |      
|                                                  |  |              |           |        |  |                                                                                        |      
|Stockholders' Equity (Deficit), June 30, 2014     |  |              | 7,755,400 |        |  | $                                                                                      | 7,755



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

5





HALL
TEES, INC.Condensed Consolidated Statements of Cash FlowsFor the Six Months ended June 30, 2014 and 2013(Unaudited)

|                                                                            |  | 2014 |         | 2013
|--------------------------------------------------------------------------- |  | ---- | ------- | ----
|CASH FLOWS USED BY OPERATING ACTIVITIES                                     |  |      |         |     
|Net Loss                                                                    |  | $    | (28,325 | )   
|Adjustments to reconcile net loss to net cash used by operating activities: |  |      |         |     
|Depreciation                                                                |  |      | 7,683   |     
|Bad Debt Expense                                                            |  |      | —       |     
|Changes in assets and liabilities:                                          |  |      |         |     
|(Increase) Decrease in Accounts Receivable                                  |  |      | (87     | )   
|(Increase) Decrease in Other Assets                                         |  |      | 108     |     
|Increase (Decrease) in Accounts Payable                                     |  |      | 2,393   |     
|Increase (Decrease) in Accrued Expenses                                     |  |      | 6,070   |     
|Net Cash Used by Operating Activities                                       |  |      | (12,158 | )   
|CASH FLOWS FROM INVESTING ACTIVITIES                                        |  |      |         |     
|                                                                            |  |      | —       |     
|Net Cash Provided by Investing Activities                                   |  |      |         |     
|                                                                            |  |      |         |     
|CASH FLOWS FROM FINANCING ACTIVITIES                                        |  |      |         |     
|Capitalized Lease Payments                                                  |  |      |         |     
|Borrowings: Stockholder Advances                                            |  |      |         |     
|Net Cash Provided (Used) by Financing Activities                            |  |      | —       |     
|                                                                            |  |      |         |     
|NET DECREASE IN CASH AND CASH EQUIVALENTS                                   |  |      | (12,158 | )   
|                                                                            |  |      |         |     
|CASH AND CASH EQUIVALENTS AT BEGINNING OF                                   |  |      |         |     
|PERIOD                                                                      |  |      | 47,298  |     
|                                                                            |  |      |         |     
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                  |  | $    | 35,140  |     
|                                                                            |  |      |         |     
|SUPPLEMENTAL DISCLOSURES                                                    |  |      |         |     
|                                                                            |  |      |         |     
|Cash Paid During the Year for Interest Expense                              |  | $    | —       |     
|Cash Paid During the Year for Taxes                                         |  | $    | —       |     



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

6





HALL
TEES, INC.NOTES TO FINANCIAL STATEMENTSJune 30, 2014(Unaudited)

NOTE
1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTINGPOLICIES

Nature
of Activities, History and Organization:

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

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

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

Unaudited
Interim Consolidated Financial Statements:

The
accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally
accepted in the United States and applicable Securities and Exchange Commission (“SEC”) regulations for interim financial
information. These consolidated financial statements are unaudited and, in the opinion of management, include all adjustments
(consisting of normal recurring accruals) necessary to present fairly the balance sheets, statements of operations and statements
of cash flows for the periods presented in accordance with accounting principles generally accepted in the United States. Certain
information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting
principles generally accepted in the United States have been condensed or omitted pursuant to SEC rules and regulations. It is
presumed that users of this interim financial information have read or have access to the audited financial statements and footnote
disclosure for the preceding fiscal year contained in the Company’s Annual Report on Form 10-K filed with the SEC on April
16, 2014. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected
for the year ending December 31, 2014.

Significant
Accounting Policies:

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

7





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

Management
believes that all adjustments necessary for a fair statement of the results of the three months ended June 30, 2014 and 2013 have
been made.

Basis
of Presentation:

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

Cash
and Cash Equivalents:

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

Fair
Value of Financial Instruments:

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

Accounts
Receivable:

Accounts
receivables are carried at their face amount, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates
accounts receivables and establishes the allowance for doubtful accounts based on a combination of specific customer circumstances
and credit conditions, based on a history of write offs and collections. The Company’s policy is generally not to charge
interest on trade receivables after the invoice becomes past due. A receivable is considered past due if payments have not been
received within agreed upon invoice terms. The Company provides an allowance for all receivables that are greater than 90 days
old. Allowances for Doubtful Accounts totaled $0 at June 30, 2014 and December 31, 2013. Write offs are recorded at a time when
a customer receivable is deemed uncollectible. During the three months ended June 30, 2014, the Company had no write-offs.

Fixed
Assets:

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

Revenue
Recognition:

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



| | – | Persuasive EVIDENCE OF AN ARRANGEMENT EXISTS;                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------
| | – | Ownership and all risks of loss have been transferred to buyers, which is generally pon shipment or at the time the
    service is provided;
| | – | The price is fixed and determinable; and                                                                                                    
| | – | Collectability is reasonably assured                                                                                                        
| |   |                                                                                                                                             



8







Earnings
per Share:

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

Income
Taxes:

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

Recent
Accounting Pronouncements:

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

Estimates:

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

NOTE
2–FIXED ASSETS



|Fixed assets at June 30, 2014 and December 31, 2013 are as follows: |  |      |         |     
|------------------------------------------------------------------- |  | ---- | ------- | ----
|                                                                    |  | 2014 |         | 2013
|Furniture & Equipment                                               |  | $    | 80,747  |     
|Capitalized Leases                                                  |  |      | 29,220  |     
|Gross Fixed Assets                                                  |  |      | 109,967 |     
|Less: Accumulated Depreciation                                      |  |      | (98,201 | )   
|Net Fixed Assets                                                    |  | $    | 11,766  |     



Depreciation
expenses for the six months ended June 30, 2014 and June 30, 2013 were $7,683 and $8,490.



NOTE 3 – CAPITALIZED AND
OPERATING LEASES

The
Company leases a 1,200 square foot warehouse space on a month to month basis for $1,000 per month. Rent expense was $6,000 for
the six month periods ended June 30, 2014 and 2013.

NOTE
4– EQUITY

The
Company is authorized to issue 25,000,000 preferred shares at a par value of $0.001 per share. These shares have full voting rights.
At June 30, 2014 and December 31, 2013, there were zero shares outstanding.

The
Company is authorized to issue 50,000,000 common shares at a par value of $0.001 per share. These shares have full voting rights.
At June 30, 2014 and December 31, 2013, there were 7,755,400 shares outstanding respectively.

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

9





NOTE
5–INCOME TAXES

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



Deferred
tax assets at June 30, 2014 and December 31, 2013 consisted of the following:



|                           |  | 2014 |          | 2013
|-------------------------- |  | ---- | -------- | ----
|Deferred Tax Asset         |  | $    | 113,657  |     
|Less: Valuation Allowance  |  |      | (113,657 | )   
|Net
    Deferred Tax Asset |  | $    | 0        |     
|                           |  |      |          |     

The
net deferred tax asset generated by the Company’s net operating loss carry forward has been fully reserved. The cumulative
net operating loss carry-forward is approximately $454,627 at June 30, 2014 and $426,302 at December 31, 2013, and will expire
in 2025 through 2032.



The
difference in the income tax benefit not shown in the consolidated statements of operations and the amount that would result if
the U.S. Federal statutory rate of 25% were applied to pre-tax loss for 2014 and 2013 is attributable to the valuation allowance.



The realization
of deferred tax benefits is contingent upon future earnings, therefore, is fully reserved at June 30, 2014 and December 31, 2013.



The Company
recognizes interest and penalties related to unrecognized tax benefits in general and administrative expense. During the three
months ended June 30, 2014 and the year ended December 31, 2013, the Company recognized no interest and penalties.

NOTE
6 – RELATED PARTY TRANSACTIONS

The
President and a Stockholder of the Company has advanced the Company $49,643 as of June 30, 2014 and December 31, 2013, for working
capital. No interest is paid on this advance.

Under
a contract with the Company beginning November 6, 2007, originally expiring at December 31, 2013 and updated to end at December
31, 2014, the President provides general management services to the Company for up to $4,000 per month. Payroll expense incurred
under this contract totaled approximately $13,700 and $12,420 for the six months ended June 30, 2014 and 2013, respectively.

The
Company pays rent of $1,000 per month to the President for warehouse facilities. Total charges were $6,000 in each of the six
months ended June 30, 2014 and 2013.

NOTE
7– FINANCIAL CONDITION AND GOING CONCERN

The
Company has minimal operations and has negative working capital of $68,693 at June 30, 2014 and negative $48,159 as of December
31, 2013. Due to the limited operating history and limited operations, the Company may require additional working capital to survive.
If the funds the Company has are not sufficient, it will also consider bank loans or additional shareholder loans. There are no
assurances that the Company will be able to obtain any of these. No assurance can be given that additional financing will be available,
or if available, will be on terms acceptable to the Company. If adequate working capital cannot be generated, the Company may
not be able to continue its operations.

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

10





note
8–REVENUE CONCENTRATION





The
Company’s three largest customers account for 97% ($11,827) of the 2014 year-to-date revenues. The table below discloses
the largest customers 2014 versus 2013 for the six months ended June 30, 2014 and 2013 (note: comparison of largest customers
year-over-year).



|June
    YTD 2014 Sales | June
    YTD 2013 Sales |    
|----------------------- | ----------------------- | ---
|TOP
    5 customer      | $                       | %  
|Cust
    1              | 21,554                  | 76%
|Cust
    2              | 4,936                   | 18%
|Cust
    3              | 965                     | 3% 
|TOTAL                   | 27,455                  | 97%

















11





Item
2. MANAGEMENT’S DISCUSSION AND ANALYSIS

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

General

In
the six months ended June 30, 2014, top line revenue was similar to the same six months in 2013. We are hopeful that as the economy
strengthens, we see more companies increase marketing and promotional spending.

RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2014

Our
quarter ended on June 30, 2014. Any reference to the end of the fiscal quarter refers to the end of the second quarter for the
period discussed herein.

Revenue.Revenue for the three months ended June 30, 2014 was $16,380 compared to $12,056 for the three months ended June 30, 2013.
Revenue for the six months ended June 30, 2014 was $28,207 compared to $28,426 for the six month periods ended June 30, 2013.
Revenue was even with the same six months of the prior year.

Cost
of Sales. Cost of sales was $620 (or 4% of revenue) for the three months ended June 30, 2014 compared to $2,272 (or 19% of
revenue) for the same period in 2013. Cost of sales was $2,445 (or 9% of revenue) for the six months ended June 30, 2014 compared
to $7,759 (or 27% of revenue) for the same period in 2013. The large decrease in cost of sales as a percent of sales is due to
product mix as sales were geared toward higher margin products.

Operating
Expense.Operating expenses, exclusive of depreciation expense of $3,842 and $4,042, were $23,963 and $34,458 for the
three month periods ended June 30, 2014 and 2013, respectively. The decrease in expenses was due to a reduction in professional
fees of approximately $8,000 operating expenses, exclusive of depreciation expense of $7,683 and $8,490, were $46,412 and $62,211
for the six month periods ended June 30, 2014 and 2013, respectively. The decrease in expenses was due to a reduction in professional
fees of approximately $12,000 and fees and other expenses of $3,000.

Net
Loss.Net Loss for the thre months ended June 30, 2014 and 2013 was $12,043 versus $28,700, respectively. The main
driver behind the decrease in the net loss was the increase of online competition as discussed above. Net Loss for the six months
ended June 30, 2014 and 2013 was $28,325 versus $49,992, respectively. The main driver behind the decrease in the net loss was
the decrease in expenses as discussed above.

LIQUIDITY
AND CAPITAL RESOURCES.

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

Short
Term Liquidity:

The
Company relies on one primary funding source for short term liquidity needs: advances from the major shareholder / President of
the Company. The President has advanced the Company $49,643 as of June 30, 2014 and December 31, 2013 for working capital. No
interest is paid on this advance. This is also disclosed in Note 6.





12





Long
Term Liquidity:

The
long term liquidity needs of the Company are projected to be met primarily through the cash flow provided by operations. Cash
flow from operations for the six months ended June 30, 2014 was negative $12,158. The Company is continually seeking new opportunities
to spur sales and increase top line revenue.



Going
Concern: Our independent auditors included a going concern explanatory paragraph in their report included in our annual report
on Form 10-K for the year ended December 31, 2013, which raises substantial doubt about our ability to continue as a going concern.
See Note 7.



Capital
Resources

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

Material
Changes in Financial Conditions

Working
Capital:Working Capital decreased by approximately $20,534 to negative $68,693 since December 31, 2013. This decrease
is due to the reduction in cash of $12,158, an increase in accounts receivable of $87 and an increase in current liabilities of
$8,463.

Shareholders’
Equity:Shareholders’ Equity decreased by $28,325 due to the net loss.



Item
3: Quantitative and Qualitative Disclosures About Market Risk



Not applicable.

Item
4. Controls and Procedures

Evaluation
of Disclosure Controls and Procedures

We
carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2014. This evaluation was accomplished under the supervision and
with the participation of our chief executive officer / principal executive officer, and chief financial officer / principal financial
officer who concluded that our disclosure controls and procedures are not effective.

Based
upon an evaluation conducted for the period ended June 30, 2014, our Chief Executive officer and Chief Financial Officer as of
June 30, 2014 and as of the date of this Report, has concluded that as of the end of the periods covered by this report, we have
identified the following material weakness of our internal controls:

-	
Reliance upon independent financial reporting consultants for review of critical accounting areas and

disclosures
and material non-standard transaction.

-	
Lack of sufficient accounting staff which results in a lack of segregation of duties necessary for a good

system
of internal control.

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

Changes
in Internal Controls over Financial Reporting

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

13







PART II



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





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



None
noted

| | (b) | Exhibits
| | --- | --------





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





SIGNATURES

In
accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned, thereunto duly authorized.

HALL
TEES, INC.

By
/s/ William Lewis

William
Lewis, President, CFO

Date:
August 15, 2014

14