AMERI METRO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

See accompanying notes to condensed consolidated financial statements.

AMERI METRO, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

April 30,January 31, 2021 and 2020

(Unaudited)

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Ameri Metro, Inc. (“Ameri Metro” and the “Company”) was formed to engage primarily in high-speed rail for passenger and freight transportation and related transportation projects.  The Company initially intends to develop a Midwest high-speed rail system for passengers and freight.  Currently the Company is engaged in raising capital and entering into relationships in furtherance of its planned activities.

The Company’s activities are subject to significant risks and uncertainties including failure to secure additional funding to properly execute the company’s business plan.

In December 2019, an outbreakThe following transactions changed the corporate operating structure of a new strain of coronavirus the Company since February 2020:

(“COVID-19”) began in Wuhan, Hubei Province, China. In MarchOn February 18, 2020, the World Health Organization declaredCompany issued 3,230,520 shares of Class C common stock to acquire 2% of Susquehanna Mortgage Bankers Corp. (formerly Global Infrastructure SP BankersCOVID-19 a pandemic. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption of financial markets. The extent).   On April 28, 2020, by consent of the impactCompany’s Board of directors, the Company agree to issue 23,000,000 shares of Original Class C common stock to acquire an additional 23% in Susquehanna Mortgage Bankers Corp.  The intent is to become a licensed Commercial & Residential lender, an entity supervised by the State banking commission.  Once licensed, it will then apply for a Fintech mortgage lender with the U.S. Office of Currency Control to become a licensed lender under the U.S. Federal Reserve system.  On September 18, 2020, the Company issued 23,000,000 shares of Original Class C common stock to Susquehanna Mortgage Bankers.

On April 28, 2020, by consent of the COVID-19 pandemic on our abilityCompany’s Board of directors, the Company agreed to secure fundingissue 23,000,000 shares of the Original Class C common stock to acquire 25% ownership interest in Ann Charles International Airport. The Company is the developer of this project.  On September 18, 2020, the Company issued 23,000,000 shares of Original Class C common stock to Ann Charles International Airport.

On September 18, 2020, the CEO of the Company transferred 102,600,000 shares of Class B common stock from his personal holdings to 20 related entities in which the Company holds a 25% ownership interest in 19 of the 20 related entities and to execute our business plans10% interest in one of the related entities.  

On September 18, 2020, the Company reserved 4,000,000,000 Class B shares of common stock in the expected time frame, will depend on future developments, including the duration and spreadname of the pandemic, allAmeri Metro, Inc. Trust, for the purpose of whichany future purchases of commodities, supplies, equipment and other tangible items for current and future projects.  The shares are uncertain and cannot be predicted. The management team is closely followingbeing administered by the progressionHSRF Statutory Trust on behalf of COVID-19 and its potential impact on the Company.  Since the Company is not currently trading and has not begun full-scale operations, there is minimal impact on the Company’s current financial condition.  The Company sees an opportunity for additional U.S. projects given the Administration’s interest in advancing a $2 Trillion infrastructure package.  Although the Company expects a significant reduction in GDP globally, the Company anticipates a return to growth later in the fiscal year 2020.  Management will continue to monitor the situation and take appropriate actionsbe issued out of trust when the Company is capitalized.  deems it appropriate to issue Class B shares of common stock for these purchases.

As a result of the previous transactions, the Company has a 25% participating profits interest in nineteen related entities and a 10% participating profit in one other entity. These entities have not commenced substantial operations or revenue producing activities.

On December 8, 2020, Atlantic Energy & Utility Products, Inc. a related party of the Company, entered into an agreement with Bayelsa Oil Company Limited to extract 70 million barrels of oil from the OPL 240 asset. The related entity and Bayelsa Oil Company Limited will create a joint venture to raise approximately $300.55MM to further develop the OPL 240 asset.  Ameri Metro, Inc. holds a 25% non-controlling interest in Atlantic Energy & Utility Products, Inc.

On February 8, 2021, the Ameri Metro Inc Board of Directors voted to proceed with the creation of a wholly-owned subsidiary "Africa High Speed Rail and Infrastructure Development Co." for projects located on the African continent. The wholly-owned subsidiary will also apply for listing on the Nigerian Stock Exchange (NSE) in the near future.

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Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company.Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 8 of Regulation S-X, and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s consolidated financial statements filed with the Securities and Exchange Commission (“SEC”) on Form 10-K.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for the unaudited interim condensed consolidated financial statements to be not misleading have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The unaudited interim condensed consolidated statements do not include all of the information and notes required by U.S. GAAP for complete financial statements.  Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for the most recent fiscal year 20192020 as reported in Form 10-K, have been omitted.

Principles of Consolidation

The consolidated financial statements present the financial position, results of operations and cash flows for Ameri Metro and its wholly-owned subsidiary, Global Transportation & Infrastructure, Inc. (“GTI”). Intercompany transactions and balances have been eliminated in consolidation.

The financial position, results of operations and cash flows as of, and for the period reported include the results of operations for Ameri Metro and GTI.

Investment in Related CompaniesParticipating Profits Interest

As at April 30, 2020,January 31, 2021, the Company has a 25% ownershipparticipating profits interest in sixteennineteen related entities and 2% ownership interesta 10% participating profit in a relatedone other entity. The remaining ownershipparticipating profits interest (and 100% voting control) is owned by the Company’s majority shareholder. These entities have had no operations, no assets, other than the 33,931,475 shares of Class B common stockor liabilities, and 3,230,520 shares of Class C common stock of the Company, and no liabilities, as of April 30, 2020.  

Participating Profits Interest

As at April 30, 2020, the Company has a 10% participating profits interest in a project. The remaining 90% participating profits interest (and 100% voting control) is owned by the Company’s majority shareholder. As of April 30, 2020, the project has not commenced andJanuary 31, 2021, the Company’s participating profits interest in these companies was $0.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP 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 year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates.

Income (Loss) Per Share

Basic loss per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Due to loss for the period ended April 30,January 31, 2021 and 2020, and 2019, the outstanding options are anti-dilutive. As a result, the computations of net loss per common shares is the same for both basic and fully diluted common stock. Potentially dilutive securities, which includeincludes 10,890,000 and 13,700,000 stock options as at April 30,January 31, 2021 and 2020, and 2019, have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been antidilutive.

Recent Accounting Pronouncements

In February 2016,December 2019, the FASBFinancial Accounting Standards Board (“FASB”) issued ASU 2016-02,Accounting Standards Update (“ASU”) 2019-12, Leases (Topic 842), which, among other things, requires lessees to recognize most leases on their balance sheets related to“Simplifying the rights and obligations created by those leases.Accounting for Income Taxes”. The new standard also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The amendments in this update should be applied under a modified retrospective approach. The new standard is effective for annual reporting periods beginning after December 15, 2018. The Company’s only lease as at August 1, 2019 is a month-to-month rent agreement for office space.  The month-to-month rent agreement is considered a lease with a term of 12 months or less.  As the leases standard does not require lessees to apply the guidance to arrangements with a lease term of 12 months or less, the adoption of the new standard had no material impact on the Company’s consolidated financial statements.  

In June 2018, the FASB issued ASU 2018-07, whichpronouncement simplifies the accounting for nonemployee share-based payment transactions.income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The amendments specify thatpronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to740 by clarifying and amending existing guidance. ASU 2019-12 will be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard became effective for the Companyus beginning in the first quarter of fiscal year 2020. The2021, with early adoption permitted. We have evaluated the impact of thisthe new FASB standard didand determine that it will not have a material impact on the Company’sour consolidated financial statements.

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

NOTE 2 – GOING CONCERN

These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated any revenues since inception, management’s business strategy involves commencing development of various economic development projects and is unlikelyclosing of acquisitions that are expected to generate earnings inbe profitable subject to the immediate or foreseeable future.availability of financing to make these projects and acquisitions commercially successful. As at April 30, 2020,January 31, 2021, the Company has a working capital deficiencydeficit of $50,884,616approximately $58.6 million and has accumulated losses of $57,050,375$64,906,345 since inception. The ability of Ameri Metro to continue as a going concern is dependent on the Company generating cash from the sale of its common stock and/or obtaining debt financing and attaining future profitable operations.

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Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and on-going operations; however, there can be no assurance the Company will be successful in these efforts. These factors create substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

NOTE 3 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES – RELATED PARTIES

As of April 30, 2020, $47,622,143January 31, 2021, $55,931,712 (July 31, 20192020 - $40,605,372)$51,226,763) is accrued in relation to various employment agreements, directorship agreements and audit committee agreements as described in Note 8.   

On January 14, 2020, the Company issued 300,000,000 options to Penndel Land Company, a company owned by Company Founder, for $1,368,217 of loans and accrued interest owed to the Company’s Founder as at December 31, 2019.  The fair value of the 300,000,000 options was $13,300 on the grant date and the Company recognized a gain of $1,354,610 on settlement of debt.  On February 14, 2020, the Company issued 300,000,000 shares of Class B common stock upon the exercise of stock options.

At April 30, 2020, the Company is indebted to the majority shareholder for $1,250,594 (July 31, 2019 - $1,315,350) for accrued interest of $474 on related party loans, $1,249,006 of consulting fees owed and $1,114 of expenses paid on behalf of the Company.

At April 30, 2020 and July 31, 2019, the Company is indebted to three directors of the Company for an aggregate of $1,050 for expenditures incurred on behalf of the Company.  The amount is unsecured, non-interest bearing and due on demand.agreements.   

NOTE 4 – LOANS PAYABLE – RELATED PARTIESPARTY

As of April 30, 2020, $173,333January 31, 2021, $272,125 (July 31, 20192020 - $1,157,924)$253,897) is due to the majority shareholder as he paid expenses on behalf of the Company.  The amount is unsecured, bears interest at 3%1% per annum and is due on April 30, 2021.  At April 30, 2020, accrued interest on the loan is $474 (July 31, 2019 - $66,651), which is included in accounts payable and accrued expenses – related parties.demand.   

NOTE 5 – STOCK PAYABLE

Effective October 2, 2014, the Company entered into an employment agreement with Mr. Shah Mathias (the Company’s founder and a majority shareholder) for the Head of Mergers and Acquisitions and Business Development, and as non-board member President (See Note 9). According to the agreement, the Company agreed to issue stock options of 1.2% of all authorized stock capitalization to Mr. Shah Mathias at the time of appointment. In addition, the Company agreed to issue shares of common stock equal to 10% of any shares issued under a public offering pursuant to a Form S-1 registration statement; and if shares are issued at such time to any other party Mr. Shah Mathias is to be issued an equal amount of shares. As of April 30, 2020, the Company has not completed its public offering pursuant to a Form S-1 registration statement. On April 3, 2015, the Company amended the employment agreement to eliminate the requirement to issue stock options of 1.2% of all authorized stock capitalization and, instead, agreed to issue Mr. Shah Mathias a total of 1.2% of Class A and Class B shares of common stock, and 1% of Class C and D shares of common stock at the time of the amendment. As of July 31, 2018, the Company has issued 48,000,000 shares of Class D common stock and 43,200,000 shares of Class C common stock pursuant to the employment agreement, and recorded $13,281 of stock payable for unissued stock consisting of 84,000 unissued Class A common stock, 4,800,000 unissued Class B common stock, and 48,000,000 unissued Class D Stock.

NOTE 6 – CAPITAL STOCK

On November 5, 2018, the Company issued 2,000,000 shares of Class B common stock with a fair value of $500 to two officers and directors of the Company for services pursuant to directorship agreements dated August 30, 2018.  The shares were issued from the 2015 Equity Incentive Plan reserved shares.  The shares vest 285,714 per year for seven years.  DuringAs of the nine monthsyear ended April 30,July 31, 2020, the shares were fully vested.

On September 18, 2020, the Company recorded $107 (2019 - $93) forissued the vested portion of the shares, leaving $258 of unvested compensation expense to be recognized in future periods.

On December 15, 2019, the Company issued a stock dividend of 14,769,48023,000,000 shares of Class C common stock from the Ameri Metro, Inc. Trust reserved shares.

On January 7, 2020, the Company increased the voting rights of its Class A common stock from 1000:1 to 40,000:1.  

On January 7, 2020, the Company increased the number of authorized shares of its Class B common stock to 10,000,000,000 shares.

On January 7, 2020, the Company created 40 series of Class C common stock for the purpose of equity participation in forty infrastructure projects.  The Company increased the number of authorized shares of itsOriginal Class C common stock to 8,000,000,000 shares, of which 7,500,000,000 shares are allocated evenly to the 40 series.Susquehanna Mortgage Bankers Corp. (formerly Global Infrastructure SP Bankers).

On January 7, 2020, the Company created 40 series of Class D common stock for the purpose of equity participation in forty infrastructure projects.  The Company increased the number of authorized shares of its Class D common stock to 8,000,000,000 shares, of which 7,500,000,000 shares are allocated evenly to the 40 series.

On January 13,September 18, 2020, the Company issued 3,475,248the 23,000,000 shares with a fair value of $869 from the 2015 Incentive PlanOriginal Class C common stock to acquire 25% ownership interest in a related entity.  Ann Charles International Airport.

On January 15,September 18, 2020, the CEO of the Company issued 400,000transferred 102,600,000 shares of Class B common stock from his personal holdings to 2 officers20 related entities in which the Company holds a 25% ownership interest in 19 of the 20 related entities and directors10% interest in one of the related entities.  

On September 18, 2020, the Company reserved 400,000,000 Class B shares of common stock in the name of the Ameri Metro, Inc. Trust, for the purpose of any future purchases of commodities, supplies, equipment and other tangible items for current and future projects.  The shares are being administered by the HSRF Statutory Trust on behalf of the Company pursuantand will be issued out of trust when the Company deems it appropriate to issue Class B shares of common stock for these purchases.

On September 18, 2020, the exerciseCompany issued 2,400,000 shares of Class B common stock options granted on March 3, 2015 with an amended exercise price of $565.  The shares were issuedat $4,100 per share from the 2015 Equity Incentive Plan reserved shares.  At April 30, 2020, the $226,000,000 proceeds receivable upon the exerciseshares to 12 directors and officers of the options had yet to be received and wasCompany, of which $9,840,000,000 proceeds is recorded as stock subscriptionssubscription receivable.

On January 15,December 28, 2020, the Company issued 1,400,000 sharesmajority shareholder converted approximately $339,000 in debt owed to one of Class B common stock to 7 officers and directors of the Company pursuant to the exercise of stock options granted on November 1, 2016 with an amended exercisehis related companies for a fixed conversion price of $565.  The shares were issued from the 2015 Equity Incentive Plan reserved shares.  At April 30, 2020, the $791,000,000 proceeds receivable upon the exercise of the options had yet to be received and was recorded as stock subscriptions receivable.

On January 15, 2020, the Company issued 400,000 shares of Class B common stock to 2 officers and directors of the Company pursuant to the exercise of stock options granted on August 30, 2018$60 which provided him with an amended exercise price of $565.  The shares were issued from the 2015 Equity Incentive Plan reserved shares.  At April 30, 2020, the $226,000,000 proceeds receivable upon the exercise of the options had yet to be received and was recorded as stock subscriptions receivable.

On January 18, 2020, the Company issued 200,000 shares of Class B common stock to a director of the Company pursuant to the exercise of stock options granted on January 18, 2020 with an exercise price of $665.  The shares were issued from the 2015 Equity

Incentive Plan reserved shares.  At April 30, 2020, the $133,000,000 proceeds receivable upon the exercise of the options had yet to be received and was recorded as stock subscriptions receivable.

On January 31, 2020, the Company declared a 100% stock dividend to all shareholders of Class B common stock at par and recorded a dividend payable of $465,229 for 1,860,916,765 shares to be issued.    On March 30, 2020, the Company issued 1,065,879,277 shares for the stock dividend.

On February 14, 2020, the Company issued 300,000,000 shares of Class B common stock to the Founder of the Company upon the exercise of stock options granted on January 14, 2020 with exercise prices ranging from $665 to $851.  At April 30, 2020, the $226,500,000,000 proceeds receivable upon the exercise of the options had yet to be received and was recorded as stock subscriptions receivable.

On February 18, 2020, the Company issued 480,000,000 shares of Class B common stock with a fair value of $120,000 to the Company Founder pursuant to the amendment to his employment agreement dated January 5, 2020.  

On February 18, 2020, the Company issued 3,230,520 shares of5,640 Class C common stock with a fair value of $808 to acquire 2% of Susquehanna Mortgage Bankers Corp. (formerly Global Infrastructure SP Bankers).   shares.

On March 11, 2020, the Company reinstated 11,292,240 shares of Class B common stock rescinded during the year ended July 31, 2013.   The 11,292,240 shares of Class B common stock were originally issued to a related party as a deposit on a future development.

On March 23, 2020, the Company issued 1,200,000 shares of Class B common stock to a director of the Company pursuant to the exercise of stock options granted on January 18, 2020 with an exercise price of $665.  The shares were issued from the 2015 Equity Incentive Plan reserved shares.  At April 30, 2020, the $798,000,000 proceeds receivable upon the exercise of the options had yet to be received and was recorded as stock subscriptions receivable.

As part of its 100% stock dividend, on March 30, 2020 the Company issued shares to the Ameri Metro, Inc. 2015 Equity Incentive Plan; to the Ameri Metro, Inc. 2018 Equity Incentive Plan; to the Ameri Metro, Inc. Trust; to the Ameri Metro North American Pension Plan; and to the Ameri Metro Universal Pension Plan. The shares are being administered by HSRF Statutory Trust.

NOTE 76 – STOCK OPTIONS

On March 8, 2016, the Company adopted a stock option plan named 2015 Equity Incentive Plan, the purpose of which is to help the Company secure and retain the services of employees, directors and consultants, provide incentives to exert maximum efforts for the success of the Company and any affiliate and provide a means by which the eligible recipients may benefit from increases in value of the common stock.  

On March 8, 2016, the Company granted 8,000,000 stock options to 4 officers and directors of the Company, exercisable at $42 per share and expire on March 8, 2026. The 8,000,000 options vest according to the following schedule: 3,200,000 options vest immediately and 800,000 vest annually for the next 6 years. The weighted average grant date fair value of stock options granted was $0.00009 per share. On June 12, 2019, the Company amended the vesting terms through a Directors’ Resolution so that the remaining 2,400,000 unvested options will vest on November 1 instead of March 8 of each subsequent year. On January 5, 2020, the Company amended the vesting terms of the remaining 2,400,000 options and the vesting date was changed to August 30 of each subsequent year.  The Company also modified the exercise price of 1,600,000 options to $565 per share.  The exercise price of the other 2,800,000 outstanding option was not changed.  The modification did not result in any incremental compensation cost and therefore the stock-based compensation for the unvested portion of the modified options will be recognized based on the original fair value.  On October 12, 2018, 3,600,000 options were exercised at $42 per share.  On January 15, 2020, 400,000 options were exercised at $565 per share.  During the ninethree months ended April 30,January 31, 2021 and 2020, and 2019, the Company recorded stock-based compensation of $17$46 and $49, respectively,$65 on the consolidated statement of operations.

On November 1, 2016, the Company granted 14,000,000 stock options to 7 officers and directors of the Company, exercisable at $42 per share and expire on November 1, 2026.  The 14,000,000 options vest according to the following schedule: 5,600,000 options vest immediately and 1,400,000 vest annually for the next 6 years. On June 12, 2019, the Company amended the vesting terms through a Directors’ Resolution so that 1,400,000 options originally vesting on November 1, 2018 are to be vested on October 12, 2018. On October 12, 2018, 7,200,000 shares were issued upon exercise of the stock options. The weighted average grant date fair value of stock options granted was $0.00009 per share.  On January 5, 2020, the Company amended the vesting terms of the remaining options and the vesting date was changed to August 30 of each subsequent year.  Furthermore, the exercise price was amended to $565 per shareoperations for all options vesting on or after August 30, 2019.  The modification did not result in any incremental compensation cost and therefore the stock-based compensation for the unvested portion of the modified options will be recognizedstock based on the original fair value.  On January 15, 2020, 1,400,000 options were exercised at $565 per share.  compensation.

During the ninesix months ended April 30,January 31, 2021 and 2020, and 2019, the Company recorded stock-based compensation of $81$106 and $109, respectively,$65 on the consolidated statement of operations.

On February 7, 2018, the Company granted 2,000,000 stock options to a consultant of the Company, exercisable at various prices per share and expire on May 1, 2022. The exercise prices are as follows: 250,000 options at $60 per share, 350,000 options at $225 per share, 300,000 options at $250 per share, 300,000 options at $275 per share, 300,000 options at $300 per share, 500,000 options at $325 per share. On June 12, 2019, the Company amended the vesting terms so that all 2,000,000 options vested by October 12, 2018. On

October 12, 2018, 2,000,000 shares that vested pursuant to the amendment were issued. The weighted average grant date fair value of stock options granted was $0.000005 per share. During the nine months ended April 30, 2020 and 2019, the Company recorded stock-based compensation of $nil and $4 on the consolidated statement of operations.

On August 30, 2018, the Company granted 4,000,000 stock options to two officers and directors of the Company, exercisable at $357 per share and expire on August 30, 2028. The 4,000,000 options vest according to the following schedule: 1,600,000 options vest immediately, and 400,000 vest annually for the next 6 years. The weighted average grant date fair value of stock options granted was $0.000008 per share. On January 5, 2020, the exercise price was amended to $565 per shareoperations for all options vesting on or after August 30, 2019.  The modification did not result in any incremental compensation cost and therefore the stock-based compensation for the unvested portion of the modified options will be recognizedstock based on the original fair value.  On January 15, 2020, 400,000 options were exercised at $565 per share.  During the nine months ended April 30, 2020 and 2019, the Company recorded stock-based compensation of $26 and $123 on the consolidated statement of operations.

On August 30, 2018, the Company granted 100,000 stock options to a consultant of the Company, exercisable at $515 per share and expire on August 30, 2028. The 100,000 options vest according to the following schedule: 40,000 options vest immediately, and 10,000 vest annually for the next 6 years. On October 11, 2018, the Company issued 10,000 shares upon the exercise of stock option.  The weighted average grant date fair value of stock options granted was $0.000009 per share. On January 5, 2020, the exercise price was amended to $565 per share for all options vesting on or after August 30, 2019.  The modification did not result in any incremental compensation cost and therefore the stock-based compensation for the unvested portion of the modified options will be recognized based on the original fair value.  During the nine months ended April 30, 2020 and 2019, the Company recorded stock-based compensation of $nil and $1 on the consolidated statement of operations.compensation.

On June 12, 2019, the Company amended Equity Incentive Plans, Subscription Agreements and Equity Agreements so that options issued after June 12, 2019 would have a strike price equal to the market price at that grant date.

On January 14, 2020, the Company issued 300,000,000 options to Penndel Land Company, a company owned by Company Founder, for $1,368,217 of loans and accrued interest owed to the Company’s Founder as at December 31, 2019.  These options are exercisable at various prices per share and expire on January 14, 2030. The exercise prices are as follows: 50,000,000 options at $665 per share, 50,000,000 options at $698 per share, 50,000,000 options at $735 per share, 50,000,000 options at $771 per share, 50,000,000 options at $810 per share, 50,000,000 options at $851 per share.  The fair value of the 300,000,000 options was $13,300 on the grant date On February 14, 2020, the Company issued 300,000,000 shares of Class B common stock upon the exercise of stock options. 

On January 18, 2020, the Company granted 2,000,000 stock options to a director of the Company, exercisable at $665 per share and expire on January 18, 2030. The 2,000,000 options vest according to the following schedule: 1,400,000 options vest immediately, 200,000 options vest on August 30, 2020, 200,000 options vest on August 30, 2021, and 200,000 options vest on August 30, 2022.  The exercise price of the 600,000 options vesting on August 30, 2020, 2021 and 2022 are subject to re-set.  The grant date fair value of stock options granted was $0.000046 per share.  On January 18, 2020, 200,000 shares were issued upon the exercise of stock options.  On March 23, 2020, 1,200,000 shares were issued upon the exercise of stock options.  During the nine months ended April 30, 2020, the Company recorded stock-based compensation of $72 on the consolidated statement of operations.F-7

A summary of the Company’s stock option activity is as follow:

The fair value of each option granted was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

At April 30, 2020,January 31, 2021, there was $485$450 of unrecognized compensation costs related to non-vested stock-based compensation arrangements granted under the Plan. There was $nilnil intrinsic value associated with the outstanding stock options at April 30, 2020.January 31, 2021.

NOTE 87 – COMMITMENTS AND CONTINGENCIES

Related and Non-related Party Agreements

The Company has entered into agreements with related and non-related parties for identified projects. As of April 30, 2020January 31, 2021 and through May 26,April 27, 2020, the Company has no commitments or obligations under these agreements due to lack of financing and the need for a feasibility study before each project is begun. The Company will be committed to perform agreed upon services once feasibility study is complete and financing is available.

On June 25, 2019, the Company amended the Opportunity License Agreements it entered with 16 related entities.  The amendment clarifies ownership, voting rights, and distribution of profits for the Company and the Company founder.  The amendment also provides that the Company will purchase non-controlling interest of each of the sixteen entities and the Portus de Jewel project.  On June 29, 2019, the Company issued 33,931,475 shares of Class B common stock from the 2015 Incentive Plan which equal to 25% of the Founder’s shares in 15 of the 16 entities and 20,000,000 shares of Class B common stock from the 2015 Incentive Plan which equal to 10% of the Founder’s shares in the Portus de Jewel project.  On January 13, 2020, the Company issued 3,475,248 shares of Class B common stock from the 2015 Incentive Plan which equal to 25% of the Founder’s shares in 1 of the 16 entities.  During the year ended July 31, 2019, the Company recorded an impairment of $8,483 and opportunity license fees of $5,000 which are included in general and administrative expense.   During the nine months ended April 30, 2020, the Company recorded an impairment of $869 which is included in general and administrative expense.

On December 27, 2012, the Company entered into a memorandum of understanding (“MOU”) with Jewel’s Real Estate 1086 Master LLLP, a company owned by the Founder of the Company, to acquire certain development rights of the Portus De-Jewel Mexico project.  The Company agreed to issue 11,292,240 shares of Class B common stock as deposit towards the purchase price.  The full purchase price for this project will be determined at a future date.  During the year ended July 31, 2013 the Company issued 11,292,240 shares of common stock as the deposit for the project.   At July 31, 2013 the value of the deposit was determined to be not recoverable and exceeds its fair value.  An impairment loss of $1,142 was recorded.  The 11,292,240 shares were rescinded during the year ended July 31, 2014.  On March 11, 2020, the Company reinstated the 11,292,240 shares of Class B common stock.    

Employee Agreements

The Company has entered into an employment agreement with the Chief Executive Officer (“CEO”) Debra Mathias with an effective date of April 21, 2014. The term of the employment agreements is 3 years, with an annual base salary of $1,200,000.  On April 21, 2017, the agreement was extended to April 21, 2021.

The Company has signed an employment agreement with Mr. Shah Mathias (Company Founder) for the Head of Mergers and Acquisitions and Business Development, and as non-board member President, with an effective date of October 2, 2014. The term of the employment agreement is 20 years, with an annual base salary of $1,200,000 and ten percent (10%) of any revenue producing contract entered into by the Company while the Company Founder is in office, while holding any position under any title, and five percent (5%) of any such revenue producing contract afterward, for the benefit of the Company Founder or his estate, for a period of twenty (20) years. The Company Founder is also eligible to earn an annual bonus award of up to 100% of the annual base salary.  In addition, the Company Founder is entitled to receive shares of the Company’s common stock (See Note 5).  Effective September 1, 2019, the Company Founder’s annual base salary is increased to $1,500,000.  On January 5, 2020, the Company amended the employment agreement. Pursuant to the amendment, the Company Founder shall be entitled to receive shares of the Company’s Class B common stock equal to 12% of the authorized number of shares or 480,000,000 shares.  At no other time in the future will the Founder receive any additional shares of any class, other than additional shares resulting from future stock splits or granted by the Board of Directors.

The Company has entered into an employment agreement with the Chief Engineer with an effective date of December 3, 2014.  The term of the employment agreement is 3 years, with an annual base salary of $175,000.  The Chief Engineer is also entitled to 1,000,000 shares of Class “B” common stock as a signing bonus.  On December 30, 2014, the Company issued 1,000,000 shares of Class “B” common stock to the Chief Engineer.

The Company has entered into a directorship agreementmaterial agreements with a Director ofits Officers and Directors for more information on these contracts please see the Company with an effective date of June 30, 2015.  The initial term of the directorship agreement is one year, with an annual base salary of $150,000.  The director is also entitled to 1,000,000 shares of Class B common stock. On July 24, 2015, the Company issued 1,000,000 shares of Class B common stock to the director.  On March 17, 2016, the term of the agreement was extended toCompany’s July 31, 2021.

The Company entered into an employment agreement with the Chief General Counsel with an effective date of August 4, 2015.  The term of the employment agreement is 3 years, with an annual base of $500,000.  On March 17, 2016, the term of the agreement was extended to July 31, 2021.

The Company entered into thirteen directorship agreements with thirteen Directors of the Company.  The initial term of the directorship agreements is one year, with an annual base salary of $150,000.  Each of the thirteen directors is also entitled to 1,000,000 shares of Class B common stock. On March 17, 2016, the term of the agreements was extended to July 31, 2021.

On October 19, 2016, the Company appointed three individuals as Directors of the Company and the Audit Committee.   Effective November 1, 2016, the annual compensation for each of the individuals is $120,000.

The Company has entered into an employment agreement with the President of the Company with an effective date of November 1, 2016.  The term of the employment agreement is 3 years, with an annual base salary of $650,000.

The Company has entered into an employment agreement with the Chief Risk Officer of the Company with an effective date of November 1, 2016.  The term of the employment agreement is 3 years, with an annual base salary of $500,000.

The Company has entered into an employment agreement with the Vice CEO of the Company with an effective date of November 1, 2016.  The term of the employment agreement is 3 years, with an annual base salary of $750,000.

The Company has entered into an employment agreement with the Treasurer of the Company with an effective date of November 1, 2016.  The term of the employment agreement is 3 years, with an annual base salary of $600,000.

The Company has entered into an employment agreement with the Non-Executive General Manager of the Company with an effective date of November 1, 2016.  The term of the employment agreement is 3 years, with an annual base salary of $160,000.2020 Form 10-K.

The Company has entered into an employment agreement with the Chief Operations Officer of the Company with an effective date of August 30, 2018.  The term of the employment agreement is three years, with an annual base salary of $425,000. Effective September 1, 2019, the Chief Operations Officer’s annual base salary is increased to $500,000.  

The Company has entered into an employment agreement with the Chief Financial Officer of the Company with an effective date of August 30, 2018.  The term of the employment agreement is three years, with an annual base salary of $375,000.  Effective September 1, 2019, the Chief Financial Officer’s annual base salary is increased to $500,000.

As of April 30, 2020,January 31, 2021 and July 31, 2019,2020, total accrued compensation expenses to related parties related to the above employment agreements were $47,622,143$54,680,581 and $40,605,372,$49,974,956, respectively. At April 30, 2020,As of January 31, 2021 and July 31, 2019,2020, the Company has accrued payroll taxes of $1,355,248$1,525,329 and $1,154,197,$1,401,084, respectively, related to the accrued compensation expenses.

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Operating Lease

On April 30, 2014, the Company terminated its existing office space lease, and entered into a new month-to-month rent agreement for office space. The new agreement which commenced on November 1, 2015, calls for monthly rent payments of $1,440. The terminated lease agreement has not been resolved as to payment of existing amounts due or as to any early termination fees. According to the lease agreement, the Company’s unpaid rental balance shall bear interest until paid at a rate equal to the prime rate of interest charged by the M&T Bank, plus 2 percent. Late payment charge is $25 per day beginning with the first day following the due date. As of April 30, 2020,January 31, 2021, and July 31, 2019,2020, the Company recorded unpaid rent expense of $27,753and $27,753, respectively, and accrued interest and late fee of $183,327$170,060 and $163,389, respectively.

Legal Proceedings

On September 14, 2017, the Company received a letter from Zimmerman & Associates, on behalf of J. Harold Hatchett, III and Ronald Silberstein, claiming breach of contract, wrongful termination, and wrongful violations of the Business Corporations Act, and knowingly inaccurate SEC Reporting against the Company and the board of directors. The Company plans to work amicably to come to a settlement. As of April 30,January 31, 2021 and July 31, 2020, the Company has accrued $1,263,870 and $1,295,120 in salaries for each of J. Harold Hatchett III and Ronald Silberstein, respectively.respectively for each period.

The Company received a lawsuit on June 13, 2017 by Estate of Robert A. Berry Esq. (decedent, Oct 22, 2015), plaintiff (the “Plaintiff Estate”). The Plaintiff Estate asserted a claim for $50,000 and 11,000 common class “B” shares of the Company relating to shares and

accrued stipend beginning 2015. The Company, in 2015, had previously booked the liability of $50,000 without interest accruing and issued the 11,000 shares of common class “B” stock of the Company to decedent Robert A. Berry Esq.  Company anticipates paying the $50,000 when the Company raises capital. 

Memorandum of Understanding

On September 30, 2018, the Company entered into a memorandum of understanding (“MOU”) to purchase 100% of Air Cyprus Aviation Limited (ACA) in exchange for £9,500,000. An amendment to the MOU was signed to cause the MOU to become binding which is subject to government regulatory approval.

NOTE 98 – INCOME TAXES

At April 30, 2020January 31, 2021 and July 31, 2019,2020, the Company’s deferred tax assets consisted of principally net operating loss carry forwards. The material reconciling items between the tax benefit computed at the statutory rate and the actual benefit recognized in the financial statements consisted of accrued expenses and the change in the valuation allowance during the applicable period. The Company has recorded a 100% valuation allowance as management is uncertain that the Company will realize the deferred tax assets.

The Company has filed its federal and state tax returns for the year ended July 31, 20192020 and 2018.has filed its federal and state tax returns for the year ended July 31, 2019. The Net operating losses (“NOLs”) for these years will not be available to reduce future taxable income until the returns are filed. AsAssuming these returns are filed, as of April 30, 2020,January 31, 2021, the Company had approximately $7.8$10.9 million of federal and state net operating losses that may be available to offset future taxable income. The net operating loss carryforwards will begin to expire in 20302021 unless utilized.

The tax years 2019 and 20182013 to 2020 remain open to examination by the major taxing jurisdictions to which the Company is subject.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the 2017 Tax Cuts and Jobs Act ("2017 Tax Reform"). The 2017 Tax Reform significantly revised the future ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. The Company has reasonably estimated the effects of the 2017 Tax Reform and recorded provisional amounts in the consolidated financial statements. This amount is primarily comprised of the re-measurement of federal net deferred tax assets resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21%, from 34%. A rate of 21% is utilized for the period. The Company will continue to monitor additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, so we may make adjustments to the provisional amounts (if any). However, management's opinion is that future adjustments due to the 2017 Tax Reform should not have a material impact on the Company's provision for income taxes.  The Company has a full allowance against the deferred tax asset and as a result there was no impact to income tax expense for the periods ended April 30, 2020.

NOTE 109 – SUBSEQUENT EVENTS

We have evaluated subsequent events through March 17, 2021, the date on which the accompanying condensed consolidated financial statements were available to be issued. Based upon its evaluation, management has determined that no subsequent events have occurred that would require recognition in the accompanying condensed consolidated financial statements or disclosures in the notes thereto, except as follows:

To mitigate the impact of novel coronavirus 2019 (“COVID-19”), we have taken measures to promote the safety and security of our employees while complying with various government mandates, including work-from-home arrangements and social-distancing initiatives to reduce the transmission of COVID-19.

The COVID-19 pandemic has had a negative impact on our results of operations and financial performance for the first of 2020, and we expect it will continue to have a negative impact on our revenue, earnings and cash flows into 2021. Accordingly, current results and financial condition discussed herein may not be indicative of future operating results and trends.

On February 18, 2020,8, 2021, the Company issued 3,230,520 shares of Class C common stock to acquire 2% of Susquehanna Mortgage Bankers Corp. (formerlyGlobal Infrastructure SP Bankers).   On April 28, 2020, by consent of the Company’sAmeri Metro Inc Board of directors,Directors voted to proceed with the Company agree to issue 23,000,000 sharescreation of Original Class C common stock to acquire an additional 23% in Susquehanna Mortgage Bankers Corp.a wholly-owned subsidiary "Africa High Speed Rail and Infrastructure Development Co." for projects located on the African continent. The intent is to become a licensed Commercial & Residential lender, an entity supervised by the State banking commission.  Once licensed, itwholly-owned subsidiary will thenalso apply for a Fintech mortgage lender withlisting on the U.S. Office of Currency Control to become a licensed lender underNigerian Stock Exchange (NSE) in the U.S. Federal Reserve system.  No shares have been issued as of the date of this filing.near future.

On April 28, 2020, by consent of the Company’s Board of directors, the Company agreed to issue 23,000,000 shares of the Original Class C common stock to acquire 25% ownership interest in Ann Charles International Airport. The Company is the developer of this project.  No shares have been issued as of the date of this filing.

F-9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of results of operations and financial condition (“MD&A”) is a supplement to the accompanying unaudited consolidated financial statements and provides additional information on the Company’s businesses, current developments, financial condition, cash flows and results of operations. The following discussion should be read in conjunction with our unaudited consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”) and with our Annual Report on Form 10-K for the fiscal year ended July 31, 2019.2020.

Forward-Looking Statements

Except for the historical information contained herein, this Quarterly 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. Such forward-looking statements involve risks and uncertainties, including, among other things, statements concerning: our business strategy; liquidity and capital expenditures; future sources of revenues and anticipated costs and expenses; and trends in industry activity generally. Such forward-looking statements include, among others, those statements including the words such as "may," "will," "should," "expect," "plan," "could," "anticipate," "intend," "believe," "estimate," "predict," "potential," "goal," or similar language or by discussions of our outlook, plans, goals, strategy or intentions.

Our actual results may differ significantly from those projected in the forward-looking statements. These statements are only predictions and involve known and unknown risks, and uncertainties, that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, we cannot guarantee future results, levels of activity, performance or achievements.

The forward-looking statements we make in this Quarterly Report are based on management’s current views and assumptions regarding future events and speak only as of the date of this report. We assume no obligation to update any of these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements, except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission.

BUSINESS

The Business

Since its incorporation,Ameri Metro, Inc. (“Ameri Metro” and the “Company”) is multifaceted emerging growth critical infrastructure and economic development company. Company has developed its business plan, appointed officers and directors, engaged initial project consultants and entered into negotiations and contracts forunder the master construction agreement with related and ancillary business. Thenon-related parties has over $510 Billion (USA) in construction contracts and or agreement/MOUs to construct projects, for various governments and states throughout the United States of America and Africa. Under an agreement with Bayelsa Oil Company is in(a State-owned company), the processCompany’s related entity holds rights to extract 70 million barrels of developing proposals for high-speed rail service.

oil.

The Company was incorporatedand the 20 related entities were formed to engage primarily in the State of DelawareHigh-Speed Rail for passenger, freight transportation, and merged with Ameri Metro 2010 on June 12, 2012.  References to the financial conditionancillary infrastructure projects such as inland ports, deep water sea ports, airports, airline, toll roads, toll bridges, energy, utilities, power grid, telecommunications, technologies, housing, insurance services, media, and performanceas mortgage banker for infrastructure projects and related transportation projects. Management has completed a third party valuation of the Company below20 entities which was based on projected discounted net income (Level 3). The resulting Level Three fair value is provided later in this section “Management’s Discussions and Analysis of Financial Condition and Results of Operation” are tototals $200,442,501,030. Management has not recorded the fair value in the financial statements of the Company.

statements.

The Company, and its wholly owned subsidiary Global Transportation and Infrastructure, Inc., plan to use Private Public Partnerships (“PPP”) for funding of infrastructure projects and transportation projects. The Company is a conduit to provide general contracting services for infrastructure projects and transportation projects. As a conduit we identify infrastructure projects for both private and public end users. The Company will bring together private and public entities, the end users, including the affiliate entities to organize the revenue bond offering, which will be the private debt vehicle to build the infrastructure project for the end user. The CompaniesCompany’s ultimate role is providing general contracting services and construction management services for the private and public entities.

Competition

The Company may face significant competition from other companies that may be developing competing transportation systems.  The Company will, however, face competitionwas incorporated in the allocationState of monetary resources from governmental agencies, at the local, regional, stateDelaware and federal levels. The Company believes that government agencies will strongly endorse its proposed plan for high-speed regional rail systems, but believes that, given the economic environment, there may be few or no funds available for such development.

Nevertheless, as an example, traditionally significant competition generally exists in the industry, from government agencies and entities. Due to the federal budgetary constraints, henceforth any completion would come from private or public entities. On the heels of the Department of Transportation’s recent request for high-speed rail proposals, its Federal Railroad Administration received 132 applications from 32 states totaling $8.8 billion. That was more than three times the $2.4 billion available. During the first round ofawards in the fall of 2009, applicants submitted more than $55 billion in project proposals. That was nearly six times the initial $8 billion available from the American Recovery and Reinvestment Act. Unfortunately, due to federal budgetary setbacks, as of early 2017, very little of this has come to fruition.

Trading Market

While there currently is no market for the shares, the Company has obtained the trading symbol “ARMT” from FINRA.

Employeesmerged with Ameri Metro 2010 on June 12, 2012.  

In additionthe United States, the Company via its related entities, initially intends to the Chief Executive Officer,develop a Midwest high-speed rail system for passengers and freight.   These initial planned activities are “ATFI Roadway” and “Port Trajan”, a northeast freight corridor.

In Africa the Company has been accruing salariesa binding memorandum of understanding to develop a high-speed rail system for employeespassengers and twenty six other persons who arefreight, and an agreement to extract 70 million barrels of oil.

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Since its incorporation, the Company has developed its business plan, appointed officers and directors, engaged initial project consultants, and had meetings with certain agencies and groups related to potential future projects as disclosed in the “Current Potential Projects” section of the Company’s July 31, 2020 Form 10-K.

The Company Founder and CEO Shah Mathias, has organized and established three related non-profit corporations and is an independent consultant of a fourth non-profit (ATFI) for the purpose of funding current potential projects of the Company identified by Transportation Economics Management Systems (TEMS). TEMS, a transportation/rail/sea vessel consulting firm working for and with the Company has completed preliminary studies on behalf of the end user, both public and private.  The Company can introduce related and non-related entities to assistthe four non-profit entities for the purpose of funding projects they have.

These are the 4 Non-Profit entities with the ability to officiate Master Bond Indentures when sponsored by a state end user:

1.Alabama Toll Facilities, Inc. (ATFI)  (A Non-Related Party) 

2.Hi Speed Rail Facilities, Inc. (HSRF) (A Related Party) 

3.Hi Speed Rail Facilities Provider, Inc. (HSFP) (A Related Party) 

4.Global Infrastructure Finance & Development Authority (GIFDA) (A Related Party) 

The three non–profit related entities will play a vital role in financing. The non-profits statutes provide a vehicle to issue bonds and help secure infrastructure projects. The non-profit entities have the discretion to turn over the infrastructure projects to the state, or the governing body after it has successfully developed and paid for the potential projects. The Company will then be able to consult the end users, related and non-related entities, and non-profits (who will sponsor bond offerings to fund the projects) and to contract with one or more of the largest construction firms in the development of its initial high-speed rail project. None ofUnited States who will carry out the twenty six people currently receive salaries or other compensation. Theactual construction management.

Participating Profits Interest

As at January 31, 2021, the Company has also issued stock to individuals, for their consultinga 25% participating profits interest in nineteen related entities and professional services. Ata 10% participating profit in one other entity. The remaining 75% participating profits interest (and 100% voting control) is owned by the timeCompany’s majority shareholder. These entities have had no operations, assets, or liabilities, and as of January 31, 2021, the Company’s participating profits interest in these companies was $0.

On June 25, 2019, the Company launches its planned IPO,amended the Opportunity License Agreements it entered with 16 related entities (Ameri Cement, Inc., Atlantic Energy & Utility Products, Inc., Cape Horn Abstracting Co., Eastern Development & Design Inc., HSR Freight Line Inc., HSR Logistics Inc., HSR Passenger Services, Inc., HSR Technologies, Inc., KSJM International Airport, Inc., Lord Chauffeurs Ltd., Malibu Homes Inc., Penn Insurance Services LLC, Platinum Media, Inc., Port de Claudius, Inc., Port of Ostia Inc., and Slater & West, Inc.).  The amendment clarifies ownership, voting rights, and distribution of profits for the Company and the Company’s Chief Executive Officer.  The amendment also provides that the Company will paypurchase non-controlling interest of each of the accrued salariessixteen entities and the Portus de Jewel project.  On June 29, 2019, the Company issued 33,931,475 shares of Class B common stock to acquire 25% ownership interest in 15 of the 16 entities.  On January 13, 2020, the Company issued 3,475,248 shares of Class B common stock to acquire 25% ownership interest in 1 of the 16 entities.  

On February 20, 2020, the Company issued 3,230,520 shares of Original Class C common stock to acquire 2% ownership interest in a related entity, Susquehanna Mortgage Bankers Corp (“Susquehanna”).  On September 18, 2020, the Company issued 23,000,000 shares of Original Class C common stock to acquire an additional 23% ownership interest in Susquehanna.

On July 1, 2020, the Company issued 250,000 shares of Class B common stock to acquire 25% ownership interest in a related entity, Natural Resources Inc.  

On July 31, 2020, the Company amended the Opportunity License Agreement it entered on June 25, 2019 for the acquisition of 10% participating profit interest in the Portus de Jewel project.  Pursuant to the employees.amendment, the consideration of 20,000,000 shares of Class B common stock also includes the acquisition of 10% of Dutch East India Logistics, Co, the developer of the Portus de Jewel project.  

Subsidiaries

On June 20, 2020, the Company’s largest stockholder created Ann Charles International Airport, Inc. and transferred 25% of the equity to the Company.

The Company has one subsidiary, Global Transportation & Infrastructure Inc. (“GTI”) incorporateddetermined that the investments in the state of Delaware. GTIrelated entities are VIE, however, the Company does not have the power to direct the activities that most significantly impact the related entities’ economic performance and therefore is a wholly owned subsidiarynot the primary beneficiary.  The Company then determined that it has the ability to exercise significant influence over the operating and financial policies of the Company.  The Company owns 25%related entities and therefore the investments will be accounted for under the equity method of eachaccounting once full operations of the companies listed in the section “Related Companies”.entities commence.  

Reports to Security Holders

14

The Company is a reporting company pursuant tofollowing table details the Securities Exchange Act of 1934 and files with the Securities and Exchange Commission quarterly, annual, periodic and other reports.  The Company intends to deliver a copy of its annual report to its security holders, and will voluntarily send a copy of the annual report, including audited financial statements, to any registered shareholder who requests.  The Company’s documents filed with the Securities and Exchange Commission may be inspected at the Commission’s principal office in Washington, D.C. Copies of all or any part of the registration statement may be obtained from the Public Reference Section of the Securities and Exchange Commission, 100 F Street N.E., Washington, D.C. 20549. Call the Commission at 1-800-SEC-0330 for further information on the operation of the public reference rooms. The Securities and Exchange Commission also maintains a web site at http://www.sec.gov that contains reports, proxy statements and information regarding registrants that file electronically with the Commission. Allcarrying value of the Company’s filings may be located underrespective equity method investments. Management has completed a third party valuation of the CIK number 0001534155.20 entities which was based on projected discounted net income (Level 3). The resulting Level Three fair value is provided below and totals $200,442,501,030. Management believes that future discounted net income will approximate its future net discounted cash flows. Additionally, any material changes to critical valuation inputs and future net income (or cash flows) can materially change the fair value of the equity investments. Management has not recorded the fair value in the financial statements:

Results of Operations

In December 2019, an outbreak of a new strain of coronavirus Significant Risks and Uncertainties(“COVID-19”) began in Wuhan, Hubei Province, China. In March

On January 30, 2020, the World Health Organization declared COVID-19the novel coronavirus 2019 (“COVID-19”) outbreak to constitute a pandemic.“Public Health Emergency of International Concern.” The COVID-19 pandemic has negatively impacted the global economy, disrupted global outbreak is disrupting supply chains and createdaffecting production and sales across a range of industries. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The outbreak of COVID-19 has severely impacted global economic activity and caused significant volatility and disruptionnegative pressure in financial markets. The global impact of financial markets.the outbreak has been rapidly evolving and many countries, including the United States, have reacted by instituting quarantines, mandating business and school closures and restricting travel. The extent of the impact of the COVID-19pandemic on our ability to execute our business plans in the expected time frameoperational and to secure funding,financial performance will depend on futurecertain developments, including the duration and spread of the pandemic,outbreak, impact on our customers, employees and vendors all of which are uncertain and cannot be predicted. The management teamAt this point, the extent to which COVID-19 may impact our financial condition or results of operations is closely followinguncertain.

15

To mitigate the progressionimpact of COVID-19, we have taken measures to promote the safety and its potentialsecurity of our employees while complying with various government mandates, including work-from-home arrangements and social-distancing initiatives to reduce the transmission of COVID-19.

The COVID-19 pandemic has had a negative impact on our results of operations and financial performance for the Company.  Since the Company is not currently tradingfirst quarter of 2021, and has not begun full-scale operations, there is minimal impact on the Company’s current financial condition.  The Company sees an opportunity for additional U.S. projects given the Administration’s interest in advancing a $2 Trillion infrastructure package.  Although the Company expects a significant reduction in GDP globally, the Company anticipates a return to growth later in the fiscal year 2020.  Managementwe expect it will continue to monitorhave a negative impact on our revenue, earnings and cash flows in the situationsecond and take appropriate actions whenthird quarters of 2021. Accordingly, current results and financial condition discussed herein may not be indicative of future operating results and trends. See the Company is capitalized.  Risk Factors included in our Annual report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission as well as the additional Risk Factor included in Part II—Item 1A of this quarterly report regarding the impacts of the COVID-19 outbreak.

Comparison of the NineSix Months Ended April 30, 2020January 31, 2021 and 2019.2020.

The Company has no source of continuing revenues and received no revenues for the ninesix months ending April 30, 2020January 31, 2021 and 2019.2020.   For the ninesix months ended April 30,January 31, 2021 and 2020, and 2019, the Company had total operating expenses of $7,667,633$5,591,264 and $6,998,245,$5,024,860, respectively and net losses of $6,355,670$5,594,998 and $7,046,686,$3,704,323, respectively. The increase in operating expenses resulted primarily from increases of $147,876 inapproximately $443,000 of state taxes, approximately $108,000 of professional fees $24,968 in director fees, $488,706 in officer payroll and $53,427 in transfer agent and filing fees and offset by decreaseapproximately $15,000 of $34,192 in personnel expenses, $5,522 in telephone expense, and $7,060 in travelmiscellaneous expenses.   During the nine months ended April 30, 2020, the Company recognized a gain of $1,354,610 upon settlement of debt which resulted in a decrease in net loss.

Comparison of the Three Months Ended April 30, 2020January 31, 2021 and 2019.2020.

The Company has no source of continuing revenues and received no revenues for the three months ending April 30, 2020January 31, 2021 and 2019.2020.   For the three months ended April 30,January 31, 2021 and 2020, and 2019, the Company had total operating expenses of $2,642,773$2,857,140 and $2,340,449,$2,538,996, respectively and net losses of $2,651,347$2,860,074 and $2,356,678,$1,199,448, respectively. The increase in operating expenses resulted primarily from increases of $24,011 inapproximately $276,000 of state taxes, approximately $16,000 of payroll taxes and approximately $27,000 of professional fees, $244,992 in officer payroll and $28,067 in transfer agent and filing fees and offset by decrease of $7,655 in interest expense.  fees.

Liquidity and Capital Resources

Our cash, current assets, total assets, current liabilities and total liabilities as of April 30, 2020January 31, 2021 and July 31, 20192020 were as follows:

Cash Requirements

We had $1,842$2 in cash and cash equivalents as of April 30, 2020.January 31, 2021.  Our cash used in operations for the ninesix months ended April 30,January 31, 2021 was $384,959 and through January 31, 2020 was $282,616.$135,566. We had a net loss of $5,594,998 for the ninesix months ended April 30,January 31, 2021 compared to January 31, 2020 of $6,355,670.$3,704,323. We had an accumulated deficit of $57,050,375$64,906,345 as of January 31, 2021 compared to $54,399,028 at April 30,January 31, 2020. Our cash on hand is not sufficient to cover our monthly expenses and we continue to seek financing in the form of debt or stock sales to finance our operations. There can be no assurance the Company will be successful in these efforts.

Sources and Uses of Cash

Operations

For the ninesix months ended April 30, 2020,January 31, 2021, our net cash used in operating activities was $282,616,$384,959, which consisted primarily of our net loss of $6,355,670$5,594,998, offset on the deferral of officer and a gain of $1,354,610 upon settlement of debt, offset primarily by increasesdirector salary and increase in accrued compensation expense of $7,016,771. For the nine months ended April 30, 2019, our net cash used in operating activities was $152,708, which consisted primarily of our net loss of $7,046,686, offset primarily by increases in accrued expenses of $6,657,212.professional expenses.

Financing

For the ninesix months ended April 30, 2020,January 31, 2021, our net cash provided by financing activities was $284,143,$356,565, which consisted of proceeds of $305,573 from related party loans and repayment of $21,430 to related party. For the nine months ended April 30, 2019, our net cash provided by financing activities was $153,163, which consistedprimarily of proceeds from related party loans.

Going Concern16

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated any revenues since inception and is unlikely to generate earnings in the immediate or foreseeable future. As at April 30, 2020, the Company has a working capital deficiency of $50,884,616 and has accumulated losses of $57,050,375 since inception. The ability of Ameri Metro to continue as a going concern is dependent on the Company generating cash from the sale of its common stock and/or obtaining debt financing and attaining future profitable operations.

Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and on-going operations; however, there can be no assurance the Company will be successful in these efforts. These factors create substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.Off-Balance Sheet Arrangements

Critical Accounting PoliciesAs of January 31, 2021, we had no off-balance sheet arrangements.

Our critical accounting policies have not changed from the information reported on our Annual Report on Form 10-K for the year ended July 31, 2019.

Recent Accounting Pronouncements

See Note 1 to the accompanying financial statements for recent accounting pronouncements we have not yet adopted.

Item 3. Quantitative and Qualitative Disclosures About Market Risk. - Not applicable.

As a smaller reporting company, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures.

We conducted an evaluation,

Evaluation of Disclosure Controls and Procedures

Our management has evaluated, under the supervision and with the participation of our Chief Executive Officerprincipal executive and our Chief Financial Officer, ofprincipal financial officers, the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e)of the end of the period covered by this report pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 as amended, or the Exchange Act,(the “Exchange Act”). Based on that evaluation, our principal executive and principal financial officers concluded that, as ofApril 30, 2020, to ensure the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports filed or submitted by us under theour Exchange Act reports is (1) recorded, processed, summarized and reported within the time periods specified in the Securities Exchange Commission’s rulesa timely manner, and forms, including to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is(2) accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions,officers, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as ofApril 30, 2020, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses identified and described in our Annual Report on Internal Control Over Financial Reporting filed in our Annual Report on Form 10-K. However, management is focused on putting in place effective controls.

Changes in Internal Control over Financial Reporting

No changeThere have been no changes in our system of internal control over financial reporting that occurred during the period covered by this report the six month period ended April 30, 2020, that hashave materially affected, or isare reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

On September 14, 2017, the Company received a letter from Zimmerman & Associates, on behalf of J. Harold Hatchett, III and Ronald Silberstein, claiming breach of contract, wrongful termination, and wrongful violations of the Business Corporations Act, and knowingly inaccurate SEC Reporting against the Company and the board of directors. The Company plans to work amicably to come to a settlement. As of October 31, 2017,2020 and 2019, the Company has accrued $1,263,870 and $1,295,120 in salaries for J. Harold Hatchett III and Ronald Silberstein, respectively.

The Company received lawsuit on June 13, 2017 by Estate of Robert A. Berry Esq. (decedent, Oct 22, 2015), plaintiff (the “Plaintiff Estate”). The Plaintiff Estate asserted a claim for $50,000 and 11,000 common class “B” shares of the Company relating to shares and accrued stipend beginning 2015. The Company, in 2015, had previously booked the liability of $50,000 without interest accruing and issued the 11,000 shares of common class “B” stock of the Company to decedent Robert A. Berry Esq. Company anticipates paying the $50,000 when the Company raises capital.

Item 1A. Risk Factors.

The discussion of our business and operations should be read together with the risk factor set forth below and the risk factors contained in Item 1A of our Annual Report on Form 10-K for the year ended July 31, 2020, which describe various risks and uncertainties to which we are or may become subject. These risks and uncertainties have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner. Other than the additional risk factor set forth below, as of January 31, 2021, there have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended July 31, 2020.

The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, impacted the operations of our business partners and negatively impacted our operations and financial results.

The COVID-19 outbreak has negatively impacted the global economy, disrupted global supply chains, constrained workforce participation due to travel restrictions and quarantine orders, disrupted logistics and distribution systems, and created significant volatility and disruption of financial markets. As a smaller reporting company,result, this pandemic has negatively impacted our operations and those of our customers and suppliers, and heightened the risks of customer bankruptcies, customer delayed payments, restrictions on access to financial markets and other risk factors described in our Annual Report. While we arehave not requiredyet experienced any material disruption to provideour supply chain and our headquarters and main distribution warehouse remains operational under business continuity plans, we have experienced increased logistics costs, lower product demand, longer lead times, and shipping delays. To mitigate the information required by this item.impact of COVID-19, we have implemented business continuity plans, with a focus on employee safety and mitigation of business disruptions. As the scope and duration of the COVID-19 outbreak is unknown and the extent of its economic impact continues to evolve globally, there is significant uncertainty related to the ultimate impact that it will have on our business, our employees, results of operations and financial condition.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Not applicable.

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Item 6.  Exhibits.

See the Exhibit Index following the signature page to this Quarterly Report on Form 10-Q for a list of exhibits filed or furnished with this report, which Exhibit Index is incorporated herein by reference.   

Exhibit Index

3.1Articles of Incorporation (filed with the Form 10 November 9, 2011) 

3.2Amended by-laws (filed as part of the Form 8-K/A filed January 18, 2013) 

3.3Cert. of Amendment Cert. of Incorporation of Ameri Metro 

5.1Opinion of Counsel on legality of securities being registered  

10.1Master Indenture Agreement of Alabama Toll Facilities, Inc. (filed with the Form 8-K January 18, 2013) 

10.2Master Indenture Agreement of Hi Speed Rail Facilities, Inc. (filed with the Form 8-K January 18, 2013) 

10.3Master Indenture Agreement of Hi Speed Rail Facilities Provider, Inc. (filed with the Form 8-K January 18, 2013) 

10.4TEMS engagement (filed as part of the Form 8-K/A filed January 18, 2013) 

10.5Alabama Indenture Agreement (filed as part of the Form 8-K/A filed January 18, 2013) 

10.6High Speed Rail Indenture Agreement (filed as part of the Form 8-K/A filed January 18, 2013) 

10.7Damar Agreement (filed as part of the Form 8-K/A filed January 18, 2013) 

10.8Agreement For Construction (filed as part of the Form 10-K/A filed November 6, 2019) 

10.9Assignment Agreement For Construction (filed as part of the Form 10-K/A filed November 6, 2019) 

10.10Payment Agreement to Penndel Land Co (filed as part of the Form 10-K/A filed November 6, 2019) 

10.11Ameri Metro Inc. / HSR Tech Inc. Licensing of Intellectual Property Agreement (filed as part of the Form 10-K/A filed November 6, 2019) 

10.12HSR Tech LOI Tech Use Agreement (filed as part of the Form 10-K/A filed November 6, 2019) 

10.13Opportunity License Agreement Entities (filed as part of the Form 10-K/A filed November 6, 2019) 

10.14Master Agreement for Construction Nonprofits (filed as part of the Form 10-K/A filed November 6, 2019) 

10.15Master Agreement for Construction Entities (filed as part of the Form 10-K/A filed November 6, 2019) 

10.16Consulting Agreement HSRFP Inc. (filed as part of the Form 10-K/A filed November 6, 2019) 

10.17Consulting Agreement HSRF Inc. (filed as part of the Form 10-K/A filed November 6, 2019) 

10.18Company Founder Emp. Agreement(filed as part of the Form 10-K/A filed November 6, 2019) 

10.19Directorship Agreement (filed as part of the Form 10-K/A filed November 6, 2019) 

10.20Letter of Intent for Port Trajan property (filed with the Registration Statement on Form S-1 filed June 13, 2013) 

10.21Port De Ostia Inc. Agreement GTI (filed as part of the Form 10-K/A filed November 6, 2019) 

10.22C-Bar Marshall Rebar Agreement (filed as part of the Form 10-K/A filed November 6, 2019) 

10.23Ameri Metro & Jewell LOI (filed as part of the Form 10-K/A filed November 6, 2019) 

10.24Master Consulting Agreement (filed as part of the Form 10-K/A filed November 6, 2019) 

10.25Master Trustee Agreement (filed as part of the Form 10-K/A filed November 6, 2019) 

10.262015 Executive Incentive Compensation Program (filed as part of the Form 10-K/A filed November 6, 2019) 

10.27Establishing the Compensation Committee (filed as part of the Form 10-K/A filed November 6, 2019) 

10.28Amendment to Payment Agreement Penndel Land Co. (filed as part of the Form 10-K/A filed November 6, 2019) 

10.29Amendment to HSR Technologies Inc. Payment Agreement (filed as part of the Form 10-K/A filed November 6, 2019) 

10.30Amendment to Damar TruckDeck LLC Payment Agreement (filed as part of the Form 10-K/A filed November 6, 2019) 

10.31TEMS consent form letter (filed as part of the Form 10-K/A filed November 6, 2019) 

23.223.1ConsentConsents of Counselexperts and counsel (included in Exhibit 5.1) 

31.1CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002*  

31.2CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002* 

32.1CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002* 

32.2CERTIFICATION OF PRINCIPAL ACCOUNTING AND FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002* 

99.1ProAdvisor Valuation report, dated November 1, 2016 (filed as Exhibit 99.1 to the registration statement on Form S-1, filed on November 23, 2016, and incorporated herein by reference) 

99.2ProAdvisor consent letter (filed as Exhibit 99.2 to the registration statement on Form S-1, filed on November 23, 2016) v 

99.3June 12, 2012 Agreement and Plan of Reorganization (filed as part of the Form 8-K/A filed January 18, 2013) 

99.4Alabama Legislative Act 506 (filed as part of the Form 8-K/A filed January 18, 2013) 

99.5Form of subscription agreement for sale of the shares (filed with the Registration Statement on Form S-1 filed June 13, 2013) 

99.6Intended use of Master Trust Indentures (filed as part of the Form 10-K/A filed November 6, 2019) 

99.7Florida Alabama TPO Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

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99.8Alabama Toll Road Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.9Appalachian Region Commission Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.10Atlantic Energy & Utilities Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.11High Speed Rail Projects Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.12Port Freeport & Brazoria Fort Bend Rail District Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.13High Speed Rail & Ancillary Projects Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.14Port of Ostia Inc. @ KSJM International Airport Inc. Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.15Portus De Jewel Mexico Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.16KSJM International Airport Inc. Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.17HSR Freight Line Inc. / Phila. Port Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.18HSR Freight Line Inc. Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.19HSR Passenger Services Inc. Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.20HSR Technologies Inc. Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.21Malibu Homes Inc. Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.22Platinum Media Inc. Bond Indenture (filed as part of the Form 10-Q filed December 30, 2019) 

99.23Port De Claudius Inc. & Port Trajan of Pa. Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.24Panama Canal – Alabama Port Partnership (filed as part of the Form 10-K/A filed November 6, 2019) 

99.25Lord Chauffeurs Inc. – Business Jet Center @ KSJM Airport Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.26HSR Freight Line Inc. & HSR Passenger Services Coast to Coast Rail Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.27New York – Washington Rail Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.28Ann Charles International Cargo Airport Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.29Texas International Trade Corridor Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

99.30Virginia Crescent Line Rail Bond Indenture (filed as part of the Form 10-K/A filed November 6, 2019) 

____________________

* Filed herewith

** To be filed

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

Date: May 26, 2020March 18, 2021By:/s/ Robert Choiniere 

Robert Choiniere 

Chief Financial Officer 

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