Cover
Cover | 6 Months Ended |
Jan. 31, 2024 shares | |
Cover [Abstract] | |
Entity Registrant Name | PEREGRINE INDUSTRIES, INC. |
Entity Central Index Key | 0001061164 |
Document Type | 10-Q |
Amendment Flag | false |
Current Fiscal Year End Date | --07-31 |
Entity Small Business | true |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Current Reporting Status | Yes |
Document Period End Date | Jan. 31, 2024 |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2024 |
Entity Ex Transition Period | true |
Entity Common Stock Shares Outstanding | 252,124,221 |
Document Quarterly Report | true |
Document Transition Report | false |
Entity File Number | 0-27511 |
Entity Incorporation State Country Code | FL |
Entity Tax Identification Number | 65-0611007 |
Entity Address Address Line 1 | 4525 W. Reno Avenue |
Entity Address Address Line 2 | Suite A5 |
Entity Address City Or Town | Las Vegas |
Entity Address State Or Province | NV |
Entity Address Postal Zip Code | 89118 |
City Area Code | 702 |
Local Phone Number | 888 1798 |
Balance Sheets
Balance Sheets - USD ($) | Jan. 31, 2024 | Jul. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 299,990 | $ 397,465 |
Accounts receivable | 15,208 | 18,116 |
Inventory | 600,565 | 601,105 |
Prepaid expenses and other current assets | 6,516 | 4,248 |
Total current assets | 922,279 | 1,020,934 |
Long term assets | ||
Patents - cost | 263,607 | 262,007 |
Right of use asset | 4,668 | 12,314 |
Total long term assets | 268,275 | 274,321 |
Total assets | 1,190,554 | 1,295,255 |
Current liabilities | ||
Accounts payable and accrued expenses | 2,110 | 2,604 |
Current portion of lease liability | 3,119 | 12,614 |
Current portion of long term loan | 5,418 | 3,612 |
Total current liabilities | 10,647 | 18,830 |
Long term liabilities | ||
SBA loan | 119,946 | 113,088 |
Total long term liabilities | 119,946 | 113,088 |
Stockholders' equity | ||
Preferred stock, $0.0001 par value; 5,000,000 authorized; none issued and outstanding as of January 31, 2024 and July 31, 2023, respectively | 0 | 0 |
Common stock, $0.0001 par value; 500,000,000 shares authorized; 252,124,221 shares issued and outstanding as of January 31, 2024 and July 31, 2023 | 25,212 | 25,212 |
Additional paid in capital | 5,966,279 | 5,966,279 |
Accumulated deficit | (4,931,530) | (4,828,154) |
Total stockholders' equity | 1,059,960 | 1,163,337 |
Total liabilities and stockholders' equity | $ 1,190,554 | $ 1,295,255 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2024 | Jul. 31, 2023 |
Balance Sheets | ||
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 252,124,221 | 252,124,221 |
Common stock, shares outstanding | 252,124,221 | 252,124,221 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Statements of Operations (Unaudited) | ||||
Revenue, net | $ 3,880 | $ 5,324 | $ 9,313 | $ 10,477 |
Revenues | 3,880 | 5,324 | 9,313 | 10,477 |
Product cost | 478 | 453 | 1,779 | 1,330 |
Cost of sales | 478 | 453 | 1,779 | 1,330 |
Gross profit | 3,402 | 4,871 | 7,534 | 9,147 |
Operating expenses | ||||
Amortization and inventory impairment | 0 | 4,563 | 0 | 51,919 |
General and administrative expenses | 31,340 | 25,432 | 71,460 | 78,862 |
Salary and payroll costs | 18,178 | 19,509 | 39,450 | 38,195 |
Total operating expenses | 49,518 | 49,504 | 110,910 | 168,975 |
Loss from operations | (46,116) | (44,633) | (103,376) | (159,828) |
Other expense | ||||
Patent impairment | 0 | 0 | 0 | (3,725) |
Total other expense | 0 | 0 | 0 | (3,725) |
Net loss for the three and six months | $ (46,116) | $ (44,633) | $ (103,376) | $ (163,553) |
Basic and diluted loss per share | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average shares outstanding | ||||
Basic and diluted | 252,124,200 | 251,024,200 | 252,124,200 | 251,252,461 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance, shares at Jul. 31, 2022 | 251,024,200 | |||
Balance, amount at Jul. 31, 2022 | $ 1,532,423 | $ 25,102 | $ 5,941,389 | $ (4,434,068) |
Common shares issued for cash, shares | 1,000,000 | |||
Common shares issued for cash, amount | 10,000 | $ 100 | 9,900 | 0 |
Loss for the six months | (163,553) | $ 0 | 0 | (163,553) |
Balance, shares at Jan. 31, 2023 | 252,024,200 | |||
Balance, amount at Jan. 31, 2023 | 1,378,869 | $ 25,202 | 5,951,289 | (4,597,622) |
Balance, shares at Oct. 31, 2022 | 251,024,200 | |||
Balance, amount at Oct. 31, 2022 | 1,413,502 | $ 25,102 | 5,941,389 | (4,552,989) |
Common shares issued for cash, shares | 1,000,000 | |||
Common shares issued for cash, amount | 10,000 | $ 100 | 9,900 | 0 |
Loss for the six months | (44,633) | $ 0 | 0 | (44,633) |
Balance, shares at Jan. 31, 2023 | 252,024,200 | |||
Balance, amount at Jan. 31, 2023 | 1,378,869 | $ 25,202 | 5,951,289 | (4,597,622) |
Balance, shares at Jul. 31, 2023 | 252,124,221 | |||
Balance, amount at Jul. 31, 2023 | 1,163,337 | $ 25,212 | 5,966,279 | (4,828,154) |
Loss for the six months | (103,376) | $ 0 | 0 | (103,376) |
Balance, shares at Jan. 31, 2024 | 252,124,221 | |||
Balance, amount at Jan. 31, 2024 | 1,059,960 | $ 25,212 | 5,966,279 | (4,931,530) |
Balance, shares at Oct. 31, 2023 | 252,124,221 | |||
Balance, amount at Oct. 31, 2023 | 1,106,077 | $ 25,212 | 5,966,279 | (4,885,414) |
Loss for the six months | (46,116) | $ 0 | 0 | (46,116) |
Balance, shares at Jan. 31, 2024 | 252,124,221 | |||
Balance, amount at Jan. 31, 2024 | $ 1,059,960 | $ 25,212 | $ 5,966,279 | $ (4,931,530) |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (103,376) | $ (163,553) |
Adjustments to reconcile net income (loss) to cash provided by (used in operating activities | ||
Inventory impairment | 0 | 47,356 |
Patent impairment | 0 | 3,725 |
Depreciation | 0 | 4,563 |
Amortization of right of use asset | 7,646 | |
Changes in operating assets and liabilities | ||
Decrease (increase) in inventory | 540 | 933 |
Decrease in accounts receivable | 2,908 | 3,269 |
Increase in prepaid expenses and other current assets | (2,268) | 4,696 |
Increase in accounts payable and accrued expenses | (494) | (731) |
Decrease in Operating lease liabilities | (9,495) | 1,729 |
Cash provided by (used in) operating activities | (104,539) | (98,013) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash used to acquire patents | (1,600) | (6,815) |
Cash used in investing activities | (1,600) | (6,815) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Sale of common shares for cash | 0 | 10,000 |
Cash provided from financing activities | 0 | 10,000 |
NET (DECREASE) INCREASE IN CASH | (106,139) | (94,828) |
Cash at beginning of period | 397,465 | 572,972 |
Cash at end of period | $ 299,990 | $ 478,144 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 6 Months Ended |
Jan. 31, 2024 | |
ORGANIZATION AND OPERATIONS | |
ORGANIZATION AND OPERATIONS | NOTE 1 - ORGANIZATION AND OPERATIONS: Peregrine Industries, Inc. (the “Company”) was formed on October 1, 1995 for the purpose of manufacturing residential pool heaters. The Company was formerly located in Deerfield Beach, Florida. Products were primarily sold throughout the United States, Canada, and Brazil. In June 2002, the Registrant and its subsidiaries filed a petition for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida. At present, the Company has no business operations and is deemed to be a shell company. The Company had a change in control on July 8, 2013 as a result of the sale by our former principal shareholders, Richard Rubin, Thomas J. Craft, Jr. and Ivo Heiden, of their 324,000 shares of common stock, representing approximately 61.8% of the Company’s outstanding common stock, to Dolomite Industries Ltd (“Dolomite”). In connection with the private sale of their shares of common stock to Dolomite on July 2, 2013, Messrs. Rubin and Heiden agreed to waive a total of $224,196 in liabilities owed to them at June 30, 2013. In connection with the change of control transaction, two former principal shareholders transferred and assigned all $195,000 of their two convertible notes to three unaffiliated third parties and one affiliated party. See also note 3. On June 12, 2017, the Board of Directors of the Registrant appointed Mr. Zohar Shpitz as Chief Financial Officer (CFO) of the Registrant. Mr. Shpitz was appointed as CFO in connection with the resignation of Mr. Ofer Naveh as the Registrant’s CFO, effective June 19, 2017. On July 21, 2017, new management acquired, 22,477,843 or 97.7% of the issued common restricted shares. The new management is developing a business plan which they anticipate implementing within the current fiscal year. On September 3, 2021, through our wholly owned subsidiary Mace Merger, Corp., Mace, Corporation was merged into our Company, through the issuance to each shareholders of one share of Peregrine, Industries for each four share of Mace, Corporation which they held. A total of 250,000,000 were issued. The 22,477,843 shares held, by the new management, per the above paragraph, were returned to the Company for cancelation. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jan. 31, 2024 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation The accompanying unaudited interim financial statements of Peregrine Industries, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto for the year ended July 31, 2023 contained in the Company’s Form 10K originally filed with the Securities and Exchange Commission on October 27, 2023. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for this interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the period ended July 31, 2023 as reported in the Company’s Form 10K, have been omitted. Use of Estimates: The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Land and Building On October 28, 2021, Mace Corporation completed the sale of its land and building, located at 9171 W Flamingo Rd., Las Vegas, Nevada. Net proceeds of $632,629, resulting from the sale price of $679,000, were held in escrow and received by the Company on November 2, 2021. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the amount management expects to collect from outstanding balances. Accounts receivable as of January 31, 2024, and July 31, 2023 were $15,208 and $18,116, respectively. An allowance for doubtful accounts will be provided for those accounts receivable considered to be uncollectable based on historical experience and management’s evaluation of outstanding accounts receivable at the end of the period. Management has reviewed the current accounts receivable and has concluded that no allowance was necessary as of January 31, 2024 and July 31, 2023. Bad debts, when identified, will be written off against the allowance. Inventory As at January 31, 2024 and July 31, 2023, respectively, the Company had $600,565 and $601,105 worth of inventory, stated at the lower of cost or market, valued on an average cost basis. The inventory is reviewed at least quarterly and adjusted for discrepancies. Managements’ evaluation was that impairment of $47,356 was required on October 31, 2022, and an additional $134,315 during the three months ended April 30, 2023. No additional impairment was deemed necessary at January 31, 2024. Prepaid Expenses Prepaid expenses, totaling $6,516 and $4,248 at January 31, 2024 and July 31, 2023 respectively consist of cash paid in advance for services to be provided. Production Molds The building of production molds is outsourced to specialists and is recorded at the total cost to acquire each. The molds are built to specifications that include the number of parts anticipated to be produced. The cost of the mold is depreciated on a straight line basis over 5 years. Cost of repairs and maintenance will be expensed as incurred. The value of each mold is reviewed quarterly and will be impaired, when necessary, based on managements’ valuation of the molds continuing viability. Depreciation of $359,040 has been recorded through January 31, 2023. Because the molds were fully depreciated no depreciation was recorded for six months ended January 31, 2024 compared to $4,563 for the six months ended 31, 2023. Patents Patent costs consist of the legal fees paid to prepare, file and process the patent applications. Patents will be amortized, utilizing the straight line method, over the useful life of the patent and will be reviewed quarterly to determine if impairment is required. Research and development costs are not included in the cost of patents, and, are expensed as incurred. Our company paid $1600 new patent fees during the six months ended January 31, 2024 compared to $6,815 new patent fees during the six months ended January 31, 2023 and determined that $3,725 be impaired during the six months ended January 31, 2023 compared with no impairment during the six months ended January 31, 2024. Income taxes The Company follows ASC Topic 740 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. As of January 31, 2024, the Company reviewed its tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company. The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. The Company classifies tax-related penalties and net interest as income tax expense. As of January 31, 2024 no income tax expense has been incurred. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jan. 31, 2024 | |
GOING CONCERN | |
GOING CONCERN | NOTE 3 – GOING CONCERN: The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business for the foreseeable future. The Company has accumulated losses aggregating $4,931,530 and $4,828,154 as of January 31, 2024, and July 31, 2023, respectively. During the six months ended January 31, 2024, the Company recorded a loss of $103,376 compared to a net loss of $163,553 for the six months ended January 31, 2023. The financial statements do not include any adjustment relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company is taking appropriate action to provide the necessary capital to continue its operations. These steps include, but are not limited to; 1) implementation of a new business plan; 2) focus on sales to minimize the need for capital at this stage; 3) raising equity financing; 4) continuous focus on reductions in cost where possible. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jan. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 4 – COMMITMENTS AND CONTINGENCIES Leases Prior to April 1, 2022, our office was located in 9171 W Flamingo Rd, Las Vegas. We sold the property on October 28, 2021 and subsequently signed a lease agreement for the same building for approximately 8 months from October 28, 2021 to June 30, 2022. No ASC Topic 842 was implemented under this agreement since it’s under 1 year. Effective April 1, 2022, we moved to 4525 W Reno Avenue, Las Vegas under a 24-month rental agreement covering April 1, 2022 through March 31, 2024, with an initial monthly rental rate of $1,525 in the first year increasing to a monthly rate of $1,600 in second year. At January 31, 2024, in accordance with ASC Topic 842, we recognized a right of use (“ROU”) asset of $4,668 and an operating lease liability of $3,119. The lease liability is determined by discounting the future lease payments under the lease terms and applying a 5% per annum discount rate to determine the current lease liability. Supplemental balance sheet information related to operating leases is as follows: January 31, 2024 Right-of-use assets $ 4,668 Total $ 4,668 Operating lease liabilities, current $ 3,119 Operating lease liabilities, non-current $ - Total operating lease liabilities $ 3,119 Operating lease cost $ 7,751 Total lease cost $ 7,751 Weighted average discount rate 5.00 % Weighted average remaining lease terms (years) 0.08 Future minimum lease payment 2 months ending March 1, 2024 $ 3,200 Total $ 3,200 Imputed interest $ (146 ) Total lease liabilities $ 3,054 U.S. Small Business Administration Loan and Agreement On February 19, 2022 the U.S. Small Business Administration authorized a secured loan, in the amount of $116,800, to Mace Corporation. The loan balance, bearing interest of 3.75%, with payments of $602 per month beginning 24 months after the aforementioned date, will be due and payable in 30 years. |
STOCKHOLDERS DEFICIT
STOCKHOLDERS DEFICIT | 6 Months Ended |
Jan. 31, 2024 | |
STOCKHOLDERS DEFICIT | |
STOCKHOLDERS DEFICIT | NOTE 5 – STOCKHOLDERS’ DEFICIT: Common Stock The articles of incorporation authorize the issuance of 500,000,000 shares of common stock, par value $0.0001. All issued shares of common stock are entitled to one vote per share of common stock. Effective July 31, 2021, the Company issued 250,000,000 common restricted shares to the Mace shareholders to acquire 100% of the Mace Corporation. The Company’s controlling shareholders, simultaneously, returned, for cancellation, their 22,477,843 common shares. During December 2022, the Company sold 1,000,000 of its common restricted shares, for $10,000 cash, or $0.01 per share and also issued, for compensation, 100,000 common restricted shares recorded at a cost of $0.15 per share. Preferred Stock The articles of incorporation authorize the issuance of 5,000,000 shares of preferred stock with a par value of $0.0001 per share. None are issued. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jan. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 6 – SUBSEQUENT EVENTS: Subsequent to January 31, 2024 and through the date when this report was completed, the Company has evaluated subsequent events through the date the financial statements were issued and has not identified any reportable events. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jan. 31, 2024 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | The accompanying unaudited interim financial statements of Peregrine Industries, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto for the year ended July 31, 2023 contained in the Company’s Form 10K originally filed with the Securities and Exchange Commission on October 27, 2023. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for this interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the period ended July 31, 2023 as reported in the Company’s Form 10K, have been omitted. |
Use of Estimates | The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. |
Land and Building | On October 28, 2021, Mace Corporation completed the sale of its land and building, located at 9171 W Flamingo Rd., Las Vegas, Nevada. Net proceeds of $632,629, resulting from the sale price of $679,000, were held in escrow and received by the Company on November 2, 2021. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable are stated at the amount management expects to collect from outstanding balances. Accounts receivable as of January 31, 2024, and July 31, 2023 were $15,208 and $18,116, respectively. An allowance for doubtful accounts will be provided for those accounts receivable considered to be uncollectable based on historical experience and management’s evaluation of outstanding accounts receivable at the end of the period. Management has reviewed the current accounts receivable and has concluded that no allowance was necessary as of January 31, 2024 and July 31, 2023. Bad debts, when identified, will be written off against the allowance. |
Inventory | As at January 31, 2024 and July 31, 2023, respectively, the Company had $600,565 and $601,105 worth of inventory, stated at the lower of cost or market, valued on an average cost basis. The inventory is reviewed at least quarterly and adjusted for discrepancies. Managements’ evaluation was that impairment of $47,356 was required on October 31, 2022, and an additional $134,315 during the three months ended April 30, 2023. No additional impairment was deemed necessary at January 31, 2024. |
Prepaid Expenses | Prepaid expenses, totaling $6,516 and $4,248 at January 31, 2024 and July 31, 2023 respectively consist of cash paid in advance for services to be provided. |
Production Molds | The building of production molds is outsourced to specialists and is recorded at the total cost to acquire each. The molds are built to specifications that include the number of parts anticipated to be produced. The cost of the mold is depreciated on a straight line basis over 5 years. Cost of repairs and maintenance will be expensed as incurred. The value of each mold is reviewed quarterly and will be impaired, when necessary, based on managements’ valuation of the molds continuing viability. Depreciation of $359,040 has been recorded through January 31, 2023. Because the molds were fully depreciated no depreciation was recorded for six months ended January 31, 2024 compared to $4,563 for the six months ended 31, 2023. |
Patents | Patent costs consist of the legal fees paid to prepare, file and process the patent applications. Patents will be amortized, utilizing the straight line method, over the useful life of the patent and will be reviewed quarterly to determine if impairment is required. Research and development costs are not included in the cost of patents, and, are expensed as incurred. Our company paid $1600 new patent fees during the six months ended January 31, 2024 compared to $6,815 new patent fees during the six months ended January 31, 2023 and determined that $3,725 be impaired during the six months ended January 31, 2023 compared with no impairment during the six months ended January 31, 2024. |
Income taxes | The Company follows ASC Topic 740 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. As of January 31, 2024, the Company reviewed its tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company. The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. The Company classifies tax-related penalties and net interest as income tax expense. As of January 31, 2024 no income tax expense has been incurred. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jan. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
Summary of operating lease liability | January 31, 2024 Right-of-use assets $ 4,668 Total $ 4,668 Operating lease liabilities, current $ 3,119 Operating lease liabilities, non-current $ - Total operating lease liabilities $ 3,119 Operating lease cost $ 7,751 Total lease cost $ 7,751 Weighted average discount rate 5.00 % Weighted average remaining lease terms (years) 0.08 Future minimum lease payment 2 months ending March 1, 2024 $ 3,200 Total $ 3,200 Imputed interest $ (146 ) Total lease liabilities $ 3,054 |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details Narrative) - USD ($) | 1 Months Ended | |||||
Jul. 21, 2017 | Jan. 31, 2024 | Jul. 31, 2023 | Sep. 03, 2021 | Jul. 08, 2013 | Jun. 30, 2013 | |
Equity ownership percenatge | 61.80% | |||||
Common stock shares | 252,124,221 | 252,124,221 | ||||
Convertible notes transferred | $ 195,000 | |||||
Issued common restricted shares acquired | 22,477,843 | |||||
Issued common restricted shares acquired percentage | 97.70% | |||||
Number of shares concellation | 22,477,843 | |||||
Common stock shares issued | 252,124,221 | 252,124,221 | ||||
Messrs. Rubin and Heiden [Member] | ||||||
Liabilities waive | $ 224,196 | |||||
Richard Rubin, Thomas J. Craft, Jr. and Ivo Heiden [Member] | Common stock shares [Member] | ||||||
Common stock shares | 324,000 | |||||
Mace Merger Corp Mace Corporation [Member] | Common stock shares [Member] | ||||||
Common stock shares issued | 250,000,000 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2023 | Oct. 31, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | Jul. 31, 2023 | Nov. 02, 2021 | |
Depreciation | $ 359,040 | $ 4,563 | ||||
Accounts receivable | 15,208 | $ 18,116 | ||||
Inventory | 600,565 | 601,105 | ||||
Impairment of patent assets | 0 | 3,725 | ||||
Additional Inventory Impairement | $ 134,315 | $ 47,356 | ||||
Proceeds from sale of land and building | 632,629 | |||||
Sale price of Land and building held in escrow | $ 679,000 | |||||
Prepaid expenses | $ 6,516 | $ 4,248 | ||||
Patents [Member] | ||||||
Production Molds useful life | 5 years | |||||
Patent fees | $ 1,600 | $ 6,815 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | Jul. 31, 2023 | |
Net Income Loss | $ (46,116) | $ (44,633) | $ (103,376) | $ (163,553) | |
Accumulated losses | $ 4,931,530 | 4,931,530 | $ 4,828,154 | ||
Going Concern [Member] | |||||
Net Income Loss | $ (103,376) | $ (163,553) |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 6 Months Ended | |
Jan. 31, 2024 | Jul. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | ||
Right-of-use assets | $ 4,668 | $ 12,314 |
Total Right-of-use assets | 4,668 | |
Operating lease liabilities, current | 3,119 | $ 12,614 |
Operating lease liabilities, non-current | 0 | |
Total operating lease liabilities | 3,119 | |
Operating lease cost | 7,751 | |
Total lease cost | $ 7,751 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 1) | 6 Months Ended |
Jan. 31, 2024 | |
Operating lease | |
Operating leases, Weighted average discount rate | 5% |
Operating leases, Weighted average remaining lease term (years) | 29 days |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details 2) | Jan. 31, 2024 USD ($) |
COMMITMENTS AND CONTINGENCIES | |
2 months ending March 1, 2024 | $ 3,200 |
Total | 3,200 |
Imputed interest | (146) |
Total lease liabilities | $ 3,054 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | |
Feb. 19, 2022 | Jan. 31, 2024 | Jul. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |||
Right of use asset | $ 4,668 | $ 12,314 | |
Description of rental agreement | under a 24-month rental agreement covering April 1, 2022 through March 31, 2024, with an initial monthly rental rate of $1,525 in the first year increasing to a monthly rate of $1,600 in second year | ||
Operating lease liability | $ 3,119 | $ 12,614 | |
Lease per annum discount rate | 5% | ||
SBA loan | $ 116,800 | ||
SBA Loan bears interest rate per annum | 3.75% | ||
Description of loan interest payment | payments of $602 per month beginning 24 months after the aforementioned date, will be due and payable in 30 years |
STOCKHOLDERS DEFICIT (Details N
STOCKHOLDERS DEFICIT (Details Narrative) - USD ($) | 1 Months Ended | ||||
Dec. 31, 2022 | Jan. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2021 | Jul. 08, 2013 | |
Common stock, par value per share | $ 0.0001 | $ 0.0001 | |||
Common Stock shares authorized | 500,000,000 | 500,000,000 | |||
Preferred stock shares, par value | $ 0.0001 | $ 0.0001 | |||
Preferred stock shares authorized | 5,000,000 | 5,000,000 | |||
Common stock shares issued | 252,124,221 | 252,124,221 | |||
Equity ownership percenatge | 61.80% | ||||
Restricted Stock [Member] | |||||
Common stock, par value per share | $ 0.01 | $ 0.15 | |||
Common stock shares issued | 1,000,000 | 250,000,000 | |||
Proceeds from restricted shares | $ 10,000 | ||||
Share issued for compensation | 100,000 | ||||
Restricted Stock [Member] | Equity Method Investment [Member] | |||||
Equity ownership percenatge | 100% | ||||
Cancellation number of common share | 22,477,843 |