Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2015 | Oct. 29, 2015 | Jan. 31, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | CLEAN ENVIRO TECH CORP | ||
Entity Central Index Key | 1,230,524 | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --07-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 1,190,716 | ||
Entity Common Stock, Shares Outstanding | 19,519,935 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,014 |
Balance Sheets
Balance Sheets - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Current assets: | ||
Deposits | $ 10,000 | |
Total current assets | $ 10,000 | |
Property and equipment, net | $ 3,225 | |
Total assets | $ 10,000 | 3,225 |
Current liabilities: | ||
Accounts payable and accrued expenses | $ 112,637 | 276,676 |
Advances | $ 214,682 | |
Convertible notes payable | $ 29,767 | |
Notes payable | $ 68,112 | |
Due to related parties | $ 173,600 | |
Total current liabilities | $ 210,516 | $ 664,958 |
Stockholders' deficiency: | ||
Preferred stock, $.001 par value, 10,000,000 shares authorized, 0 issued and outstanding | ||
Common stock, $.001 par value, 50,000,000 shares authorized as of July 31, 2015; 19,519,935 and 1,969,935 issued and outstanding at July 31, 2015 and 2014, respectively. | $ 19,520 | $ 1,970 |
Additional paid-in capital | 8,256,341 | 7,376,546 |
Retained deficit | (8,476,377) | (8,040,249) |
Stockholders' deficiency | (200,516) | (661,733) |
Total liabilities and stockholders' deficiency | $ 10,000 | $ 3,225 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2015 | Jul. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 19,519,935 | 1,969,935 |
Common Stock, Shares Outstanding | 19,519,935 | 1,969,935 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Income Statement [Abstract] | ||
Net sales | ||
Operating expenses: | ||
General and administrative | $ 65,283 | $ 64,509 |
Research and development | 6,460 | |
Loss from operations | $ (65,283) | $ (70,969) |
Other (expenses)/income | ||
Amortization of beneficial conversion feature | (370,845) | |
Net loss before provision for (benefit from) income taxes | $ (436,128) | $ (70,969) |
Provision for (benefit from) income taxes | ||
Net loss | $ (436,128) | $ (70,969) |
Net loss per common share - basic and diluted | $ (0.04) | $ (0.04) |
Weighted average number of common shares outstanding - basic and diluted | 11,153,634 | 1,969,949 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Retained Deficit | Total |
Beginning Balance, Shares at Jul. 31, 2013 | 1,969,935 | |||
Beginning Balance, Value at Jul. 31, 2013 | $ 1,970 | $ 7,376,546 | $ (7,969,280) | $ (590,764) |
Stock issued for debt conversion, Value | ||||
Net loss | (70,969) | $ (70,969) | ||
Ending Balance, Shares at Jul. 31, 2014 | 1,969,935 | |||
Ending Balance, Value at Jul. 31, 2014 | $ 1,970 | $ 7,376,546 | $ (8,040,249) | $ (661,733) |
Stock issued for debt conversion, Shares | 17,550,000 | 17,550,000 | ||
Stock issued for debt conversion, Value | $ 17,550 | $ 879,795 | $ 897,345 | |
Net loss | $ (436,128) | (436,128) | ||
Ending Balance, Shares at Jul. 31, 2015 | 19,519,935 | |||
Ending Balance, Value at Jul. 31, 2015 | $ 19,520 | $ 8,256,341 | $ (8,476,377) | $ (200,516) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (436,128) | $ (70,969) |
Adjustments to reconcile net loss to net cash utilized by operating activities | ||
Depreciation | $ 3,225 | $ 1,289 |
Loss on disposal of property and equipment | ||
Amortization of beneficial conversion feature | $ 370,845 | |
Expenses ande deposit paid on the Company's behalf by a third party | 58,112 | $ 64,816 |
Increase (decrease) in cash flows from changes in operating assets and liabilities | ||
Accounts payable and accrued expenses | $ 3,946 | $ 4,864 |
Net cash used in operating activities | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash used in investing activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net cash provided by financing activities | ||
CHANGE IN CASH AND CASH EQUIVALENTS | ||
Net decrease in cash and cash equivalents | ||
Cash and cash equivalents at beginning of year | ||
Cash and cash equivalents at end of year | ||
Cash paid during the year for: | ||
Interest | ||
Income taxes | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES | ||
Convertible notes issued for debt and liabilities | $ 556,267 | |
Common shares issued for convertible debt | 526,500 | |
Beneficial conversion feature discount | $ 370,845 |
1. Financial Statement Presenta
1. Financial Statement Presentation | 12 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
1. Financial Statement Presentation | Note 1. Financial Statement Presentation General Cyber Apps World Inc. (the Company or Cyber) following the merger with the Companys wholly-owned subsidiary on December 24, 2012 (formed for the sole purpose of merging with its parent), have discontinued the further development of the lithium batteries technology licensed from Terra Inventions Corp. (formerly Clean Enviro Tech Corp.) (Terra), the Companys former parent. Consultants for the Company have stopped work on the solar concentrating electric power generating system. The Company has some physical assets remaining from the lithium battery and solar power system work that are currently in storage. The Company has redirected the focus and intends to develop and acquire a worldwide e-commerce internet platform in which revenues will be based on the purchase and sale of products and services by way of mobile/computer applications online (24/7). We have determined not to continue work on the residential Solar Concentrating, Electric Power Generation Systems or the lithium batteries at this time. The summary of significant accounting policies is presented to assist in the understanding of the financial statements. The financial statements and notes are the representations of management. These accounting policies conform to accounting policies generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. Basis of Presentation Going Concern The Companys financial statements for the year ended July 31, 2015, 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. The Company did not have any revenue in 2015 and as of July 31, 2015, there was a working capital deficit of $200,516. Management recognized that the Companys continued existence is dependent upon its ability to obtain needed working capital through additional equity and/or debt financing and revenue to cover expenses as the Company continues to incur losses. Since its incorporation, the Company financed its operations almost exclusively through advances from its controlling shareholders. Managements plans are to finance operations through the sale of equity or other investments for the foreseeable future, as the Company does not receive significant revenue from its new business operations. There is no guarantee that the Company will be successful in arranging financing on acceptable terms. The Company's ability to raise additional capital is affected by trends and uncertainties beyond its control. The Company does not currently have any arrangements for financing and it may not be able to find such financing if required. Obtaining additional financing would be subject to a number of factors, including investor sentiment. Market factors may make the timing, amount, terms or conditions of additional financing unavailable to it. These uncertainties raise substantial doubt about the ability of the Company to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
2. Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates and judgments, including those related to revenue recognition, inventories, adequacy of allowances for doubtful accounts, valuation of long-lived assets and goodwill, income taxes, litigation and warranties. The Company bases its estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. The policies discussed below are considered by management to be critical to an understanding of the Companys financial statements. These estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from those estimates. Property and Equipment Property and equipment are recorded at cost. Depreciation of property and equipment are accounted for by accelerated methods over the following estimated useful lives: Lives Furniture and Fixtures 10 years Software 3-5 years Computers 5 years Evaluation of Long-Lived Assets The Company reviews property and equipment for potential impairment whenever significant events or changes in circumstances indicate the carrying value may not be recoverable in accordance with the guidance in ASC 360-15-35 Impairment or Disposal of Long-Lived Assets. An impairment exists when the carrying amount of the long-lived assets is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If an impairment exists, the resulting write-down would be the difference between the fair market value of the long-lived asset and the related net book value. The Company is looking for space to work and store equipment for both battery development and solar dish. Advertising Advertising costs are generally expensed and are included in selling, general and administrative expenses. Total advertising expenditures for the years ended July 31, 2015 and 2014, were approximately $0 and $0, respectively. Research and Development The Company is currently a research and development (R&D) stage company and therefore the Board of Directors has not set a budget for R&D. However, all projects and purchases must be approved before being started or purchased. For the years ending July 31, 2015 and 2014, R&D consisted of parts, salaries, and payroll taxes, which amounted to $0 and $6,460, respectively. Net Loss Per Common Share Basic loss per common share is computed based on the weighted average number of shares outstanding during the year. Diluted earnings per common share is computed by dividing net earnings (loss) by the weighted average number of common shares and potential common shares during the specified periods. The Company has outstanding options, warrants or other convertible instruments that could affect the calculated number of convertible notes payable which equate to 992,233 potential common shares outstanding, and no other options, warrants or other convertible instruments that could affect the calculated number of shares Income Taxes Deferred income tax assets or liabilities are computed based on the temporary differences between the financial statement and income tax bases of assets and liabilities using the statutory marginal income tax rate in effect for the years in which the differences are expected to reverse. Deferred income tax expenses or credits are based on the changes in the deferred income tax assets or liabilities from period to period. A valuation allowance against deferred tax assets is required if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The valuation allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. Effects of Recent Accounting Pronouncements The Company has elected early adoption of Accounting Standard Update (ASU) 2014-10, Topic 915, Development Stage Entities, Elimination of Certain Financial Reporting Requirements |
3. Property and Equipment
3. Property and Equipment | 12 Months Ended |
Jul. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
3. Property and Equipment | Note 3. Property and Equipment Property and equipment at consists of: July 31, 2015 2014 Equipment $ 131,455 $ 131,455 Less: Accumulated depreciation (131,455 ) (128,230 ) Property and equipment, net $ 0 $ 3,225 Depreciation expense for the years ended July 31, 2015 and 2014, was $3,225 and $1,289, respectively. |
4. Accounts Payable and Accrued
4. Accounts Payable and Accrued Expenses | 12 Months Ended |
Jul. 31, 2015 | |
Payables and Accruals [Abstract] | |
4. Accounts Payable and Accrued Expenses | Note 4. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses at July 31, 2015 and 2014 consisted of: July 31, 2015 2014 Accounts payable $ 67,494 $ 233,585 Wages, paid leave and payroll related taxes 45,143 43,091 Total $ 112,637 $ 276,676 |
5. Convertible Notes Payable an
5. Convertible Notes Payable and Due to Related Party | 12 Months Ended |
Jul. 31, 2015 | |
Debt Disclosure [Abstract] | |
5. Convertible Notes Payable and Due to Related Party | Note 5. Convertible Notes Payable and Due to Related Party At July 31, 2014, the Company owed Frontline $214,682 from debt assumed in 2012, recorded on the balance sheet as Advances. Various advances from the same party for operating expenses since that time have been booked as accounts payable. During the years ended July 31, 2015 and 2014, the Company received advances totaling $68,112 and $18,893, respectively; and made payments of $0 and $0, respectively. The assigned debt and any subsequent debt we incur is interest free. No term has been set for repayment and no payment is expected until the Company has begun to become a profitable venture. On January 20, 2015, the Company consolidated Frontlines liabilities consisting of accounts payable of $167,985, Due to Related Parties of $173,600 and Advances of $214,682 by executing a convertible promissory note for a total amount of $556,267. The loan bears no interest and is due upon demand. The debt is convertible at $0.03 per share (post-split). This resulted in a debt discount from the beneficial conversion feature of $370,845 for the intrinsic value of the beneficial conversion feature. This discount was fully amortized during the period, due to the fact that the convertible note is due on demand. On January 22, 2015 Frontline assigned $526,500 of the convertible note to non-related parties totaling $468,000 and $58,500 to a related party after which the conversion option for the full $526,500 was exercised, resulting in the issuance of 17,550,000 shares of common stock (post-split). In March 2015, the Company executed two promissory notes with Frontline totaling $32,030. The promissory note for $8,475 bears no interest and is due in March 2018. The promissory note for $23,445 bears no interest and is due upon demand. In May 2015, the Company executed a promissory note with Frontline totaling $16,983 bears no interest and is due upon demand. In August 2015, the Company executed a promissory note with Frontline totaling $8,599 bears no interest and is due upon demand. As of July 31, 2015, after the consolidation of these liabilities of $468,000 assignment to third parties and $58,500 to a related party shareholder and subsequent conversion, the balance of convertible notes is $29,767 and notes payable is $68,112. |
6. Notes Payable - Related Part
6. Notes Payable - Related Party | 12 Months Ended |
Jul. 31, 2015 | |
Related Party Transactions [Abstract] | |
6. Notes Payable - Related Party | Note 6. Notes Payable Related Party On December 15, 2010, the Company issued a non-interest bearing, due on demand, promissory note to Mehboob Charania, (former chief executive and principal financial officer) for which it has received advances of $173,600 and repaid $0. The transaction amounts are reported as current due to the fact that they are due upon demand. On November 1, 2014, the note was assigned to Frontline Asset Management (Frontline) and was converted in January 2015. |
7. Common Stock
7. Common Stock | 12 Months Ended |
Jul. 31, 2015 | |
Equity [Abstract] | |
7. Common Stock | Note 7. Common Stock Effective April 2,2015, the Company filed with Secretary Of State of Nevada a Certificate of Change that affected a 1:5 reverse split in the Companys outstanding common stock and a reduction of our authorized common stock to 50,000,000 shares. We have retroactively restated all share amounts to show effects of the Common Stock split. On January 22, 2015, the Company converted $556,267 of its debt to various lenders into convertible debt and 17,550,000 shares of Common Stock were issued as a result of the debt conversion and recorded a beneficial conversion in the amount of $370,845 related to the debt being amended to a convertible instrument. |
8. Net Loss Per Common Share
8. Net Loss Per Common Share | 12 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
8. Net Loss Per Common Share | Note 8. Net Loss Per Common Share Loss per share is computed based on the weighted average number of shares outstanding during the year. Diluted loss per common share is computed by dividing net loss by the weighted average number of common shares and potential common shares during the specified periods. The Company has no outstanding options, warrants or other convertible instruments that could affect the calculated number of shares. The following table sets forth the reconciliation of the basic and diluted net loss per common share computations for the years ended July 31, 2015 and 2014. Year Ended Year Ended July 31, 2015 July 31, 2014 Income Shares Per-Share Income Shares Per-Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net Income (Loss) $ (436,128 ) $ (70,969 ) Basic EPS (436,128 ) 11,153,634 (0.04 ) (70,969 ) 1,969,949 (0.04 ) Effect of dilutive securities Diluted EPS $ (436,128 ) 11,153,634 (0.04 ) $ (70,969 ) 1,969,949 (0.04 ) |
9. Income Taxes
9. Income Taxes | 12 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
9. Income Taxes | Note 9. Income Taxes At July 31, 2015, the Company has deferred tax assets as a result of the net operating losses incurred from inception. The resulting deferred tax assets are reduced by a valuation allowance as discussed in Note 2, equal to the deferred tax asset as it is unlikely, based on current circumstances, that the Company will ever realize a tax benefit. Deferred tax assets and the corresponding valuation allowances amounted to approximately $2.9 million and $2.8 million at July 31, 2015 and July 31, 2014, respectively. The statutory tax rate is 35% and the effective tax rate is zero. Under current tax laws, the cumulative operating losses incurred amounting to approximately $8.5 million and $8 million at July 31, 2015 and July 31, 2014 respectively, will begin to expire in 2025. Section 382 of the U.S. Internal Revenue Code imposes an annual limitation on loss carry-forwards to offset taxable income when an ownership change occurs. The Company meets the definition of an ownership change and some of the net operating loss carry-forwards will be limited. Components of net deferred tax assets, including a valuation allowance, are as follows at July 31, 2015 and 2014: 2015 2014 Deferred tax assets: Net Operating loss carryforward $ 2,900,000 $ 2,800,000 Total deferred tax assets 2,900,000 2,800,000 Less: Valuation allowance (2,900,000 ) (2,900,000 ) Net deferred tax assets $ $ The valuation allowance for deferred tax assets as of July 31, 2015 was $2.9 million which will begin to expire in 2024. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of July 31, 2015 and maintained a full valuation allowance. Reconciliation between the statutory rate and the effective tax rate is as follows at July 31, 2015 and 2014: 2015 2014 Federal statutory rate (35.0 )% (35.0 )% State taxes, net of federal benefit (0.00 )% (0.00 )% Change in valuation allowance 35.0 % 35.0 % Effective Tax Rate 0.0 % 0.0 % |
10. Commitments and Contingenci
10. Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
10. Commitments and Contingencies | Note 10. Commitments and Contingencies On May 30, 2014 Gordon F. Lee was appointed as CEO. The Company signed a letter of intent with Red Apple Pharm and was conducting due diligence. Red Apple Pharm never provided financials. On June 20, 2014 Mr. Lee resigned. The letter of intent had a $20,000 monthly salary for Mr. Lee. After his resignation Mr. Lee sent an invoice for salary and expenses totaling $69,127.17. The company disputes this amount and Mr. Lee received the initial $2,500 payment, no other payment has been made to date of this filing. Mr. Lee was notified at the time of his appointment that no expenses or commitments should be made on behalf of the corporation without the consent of the board of directors. |
11. Licenses Agreement
11. Licenses Agreement | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
11. Licenses Agreement | Note 11. Licenses Agreement On May 28, 2015, the Company entered into a license agreement (the Agreement) with eCommerce Technologies Inc. (Licensor), providing for the license by the Company of certain patented ecommerce technology (the Licensed Technology), under a non-exclusive right and license to market, use or sell the Licensed Technology and improvements thereto worldwide, subject to the patent coverage of the Licensed Technology. As of July 31, 2015, the Company has made a deposit of $10,000 with a remaining balance due on November 15, 2015, totaling $490,000. Through the date of this filing, the balance remains outstanding. |
1. Financial Statement Presen18
1. Financial Statement Presentation (Policies) | 12 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Going Concern The Companys financial statements for the year ended July 31, 2015, 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. The Company did not have any revenue in 2015 and as of July 31, 2015, there was a working capital deficit of $200,516. Management recognized that the Companys continued existence is dependent upon its ability to obtain needed working capital through additional equity and/or debt financing and revenue to cover expenses as the Company continues to incur losses. Since its incorporation, the Company financed its operations almost exclusively through advances from its controlling shareholders. Managements plans are to finance operations through the sale of equity or other investments for the foreseeable future, as the Company does not receive significant revenue from its new business operations. There is no guarantee that the Company will be successful in arranging financing on acceptable terms. The Company's ability to raise additional capital is affected by trends and uncertainties beyond its control. The Company does not currently have any arrangements for financing and it may not be able to find such financing if required. Obtaining additional financing would be subject to a number of factors, including investor sentiment. Market factors may make the timing, amount, terms or conditions of additional financing unavailable to it. These uncertainties raise substantial doubt about the ability of the Company to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
2. Summary of Significant Acc19
2. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates and judgments, including those related to revenue recognition, inventories, adequacy of allowances for doubtful accounts, valuation of long-lived assets and goodwill, income taxes, litigation and warranties. The Company bases its estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. The policies discussed below are considered by management to be critical to an understanding of the Companys financial statements. These estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from those estimates. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation of property and equipment are accounted for by accelerated methods over the following estimated useful lives: Lives Furniture and Fixtures 10 years Software 3-5 years Computers 5 years |
Evaluation of Long-Lived Assets | Evaluation of Long-Lived Assets The Company reviews property and equipment for potential impairment whenever significant events or changes in circumstances indicate the carrying value may not be recoverable in accordance with the guidance in ASC 360-15-35 Impairment or Disposal of Long-Lived Assets. An impairment exists when the carrying amount of the long-lived assets is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If an impairment exists, the resulting write-down would be the difference between the fair market value of the long-lived asset and the related net book value. The Company is looking for space to work and store equipment for both battery development and solar dish. |
Advertising | Advertising Advertising costs are generally expensed and are included in selling, general and administrative expenses. Total advertising expenditures for the years ended July 31, 2015 and 2014, were approximately $0 and $0, respectively. |
Research and Development | Research and Development The Company is currently a research and development (R&D) stage company and therefore the Board of Directors has not set a budget for R&D. However, all projects and purchases must be approved before being started or purchased. For the years ending July 31, 2015 and 2014, R&D consisted of parts, salaries, and payroll taxes, which amounted to $0 and $6,460, respectively. |
Net Loss Per Common Share | Net Loss Per Common Share Basic loss per common share is computed based on the weighted average number of shares outstanding during the year. Diluted earnings per common share is computed by dividing net earnings (loss) by the weighted average number of common shares and potential common shares during the specified periods. The Company has outstanding options, warrants or other convertible instruments that could affect the calculated number of convertible notes payable which equate to 992,233 potential common shares outstanding, and no other options, warrants or other convertible instruments that could affect the calculated number of shares |
Income Taxes | Income Taxes Deferred income tax assets or liabilities are computed based on the temporary differences between the financial statement and income tax bases of assets and liabilities using the statutory marginal income tax rate in effect for the years in which the differences are expected to reverse. Deferred income tax expenses or credits are based on the changes in the deferred income tax assets or liabilities from period to period. A valuation allowance against deferred tax assets is required if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The valuation allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. |
Effects of Recent Accounting Pronouncements | Effects of Recent Accounting Pronouncements The Company has elected early adoption of Accounting Standard Update (ASU) 2014-10, Topic 915, Development Stage Entities, Elimination of Certain Financial Reporting Requirements |
2. Summary of Significant Acc20
2. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Property and Equipment - Estimated Useful Lives | Lives Furniture and Fixtures 10 years Software 3-5 years Computers 5 years |
3. Property and Equipment (Tabl
3. Property and Equipment (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | July 31, 2015 2014 Equipment $ 131,455 $ 131,455 Less: Accumulated depreciation (131,455 ) (128,230 ) Property and equipment, net $ 0 $ 3,225 |
4. Accounts Payable and Accru22
4. Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | July 31, 2015 2014 Accounts payable $ 67,494 $ 233,585 Wages, paid leave and payroll related taxes 45,143 43,091 Total $ 112,637 $ 276,676 |
8. Net Loss Per Common Share (T
8. Net Loss Per Common Share (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Year Ended Year Ended July 31, 2015 July 31, 2014 Income Shares Per-Share Income Shares Per-Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net Income (Loss) $ (436,128 ) $ (70,969 ) Basic EPS (436,128 ) 11,153,634 (0.04 ) (70,969 ) 1,969,949 (0.04 ) Effect of dilutive securities Diluted EPS $ (436,128 ) 11,153,634 (0.04 ) $ (70,969 ) 1,969,949 (0.04 ) |
9. Income Taxes (Tables)
9. Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Income Taxes Tables | |
Components of net deferred tax assets | 2015 2014 Deferred tax assets: Net Operating loss carryforward $ 2,900,000 $ 2,800,000 Total deferred tax assets 2,900,000 2,800,000 Less: Valuation allowance (2,900,000 ) (2,900,000 ) Net deferred tax assets $ $ |
Tax Rate Reconciliation | 2015 2014 Federal statutory rate (35.0 )% (35.0 )% State taxes, net of federal benefit (0.00 )% (0.00 )% Change in valuation allowance 35.0 % 35.0 % Effective Tax Rate 0.0 % 0.0 % |
1. Financial Statement Presen25
1. Financial Statement Presentation (Details Narrative) | Jul. 31, 2015USD ($) |
Accounting Policies [Abstract] | |
Working Capital Deficit | $ (200,516) |
2. Summary of Significant Acc26
2. Summary of Significant Accounting Policies - Property and Equipment - Estimated Useful Lives(Details) | 12 Months Ended |
Jul. 31, 2015 | |
Furniture and Fixtures | |
Estimated Useful Lives | 10 years |
Software | Minimum | |
Estimated Useful Lives | 3 years |
Software | Maximum | |
Estimated Useful Lives | 5 years |
Computers | |
Estimated Useful Lives | 5 years |
2. Summary of Significant Acc27
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Accounting Policies [Abstract] | ||
Advertising Costs | $ 0 | $ 0 |
Research and Development | $ 6,460 | |
Potential Common Shares Issuable upon Conversion | 992,233 |
3. Property and Equipment - Pro
3. Property and Equipment - Property and Equipment (Details) - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Equipment | $ 131,455 | $ 131,455 |
Less: Accumulated depreciation | $ 131,455 | 128,230 |
Property and equipment, net | $ 3,225 |
3. Property and Equipment (Deta
3. Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation Expense | $ 3,225 | $ 1,289 |
4. Accounts Payable and Accru30
4. Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 67,494 | $ 233,585 |
Wages, paid leave and payroll related taxes | 45,143 | 43,091 |
Total | $ 112,637 | $ 276,676 |
5. Convertible Notes Payable 31
5. Convertible Notes Payable and Due to Related Party (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Jul. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2015 | Jan. 20, 2015 | Oct. 31, 2014 | |
Owed to Third party | $ 214,682 | $ 32,530 | $ 555,267 | $ 214,682 | ||
Advances Recieved | $ 68,112 | 18,893 | ||||
Repayment of Advances | 0 | $ 0 | ||||
Convertible Debt, Conversion Rate | $ .03 | |||||
Beneficial conversion feature discount | 370,845 | |||||
Common Stock Issued Convertible Debt, Value | $ 32,030 | 897,345 | ||||
Convertible Debt, Related Party | $ 29,767 | $ 29,767 | ||||
Frontline 1 | ||||||
Common Stock Issued Convertible Debt, Value | 8,475 | |||||
Frontline 2 | ||||||
Common Stock Issued Convertible Debt, Value | $ 23,445 | |||||
Accounts Payable - Frontline | ||||||
Owed to Third party | $ 167,985 | |||||
Due to Related Parties - Frontline | ||||||
Owed to Third party | 173,600 | |||||
Advances - Frontline | ||||||
Owed to Third party | $ 214,682 |
6. Notes Payable - Related Pa32
6. Notes Payable - Related Party (Details Narrative) - USD ($) | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2011 | |
Convertible notes issued for debt and liabilities | $ 556,267 | ||
Stock issued for debt conversion, Shares | 17,550,000 | ||
Beneficial Conversion | $ 370,845 | ||
Director [Member] | |||
Advances from Related Party | $ 173,600 | ||
Repayments of Advances from Related Party | $ 0 |
7. Common Stock (Details Narrat
7. Common Stock (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Equity [Abstract] | ||
Convertible notes issued for debt and liabilities | $ 556,267 | |
Stock issued for debt conversion, Shares | 17,550,000 | |
Beneficial Conversion | $ 370,845 | |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
8. Net Loss Per Common Share -
8. Net Loss Per Common Share - Net Loss Per Common Share (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) | $ (436,128) | $ (70,969) | $ (436,128) | $ (70,969) |
Net Income (Loss), Per Share | $ (0.04) | $ (0.04) | ||
Net Income (Loss), Shares | 11,153,634 | 1,969,949 | ||
Basic EPS | $ (436,128) | $ (70,969) | ||
Basic EPS, Per Share | $ (0.04) | |||
Basic EPS, Shares | 1,969,949 | |||
Effect of dilutive securities | ||||
Diluted EPS | $ (436,128) | $ (70,969) | ||
Diluted EPS, Per Share | $ (0.04) | |||
Diluted EPS, Shares | 1,969,949 |
9. Income Taxes - Components of
9. Income Taxes - Components of net deferred tax assets (Details) - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Deferred tax assets: | ||
Net Operating loss carryforward | $ 2,900,000 | $ 2,800,000 |
Total deferred tax assets | 2,900,000 | 2,800,000 |
Less: Valuation allowance | $ (2,900,000) | $ (2,900,000) |
Net deferred tax assets |
9. Income Taxes - Tax Rate Reco
9. Income Taxes - Tax Rate Reconciliation (Details) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Income Taxes - Tax Rate Reconciliation Details | ||
Federal statutory rate | 35.00% | 35.00% |
State taxes, net of federal benefit | (0.00%) | (0.00%) |
Change in valuation allowance | 35.00% | 35.00% |
Effective Tax Rate | 0.00% | 0.00% |
9. Income Taxes (Details Narrat
9. Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Valuation Allowances | $ 2,900,000 | $ 2,800,000 |
Statutory Tax Rate | 35.00% | 35.00% |
Effective Tax Rate | 0.00% | 0.00% |
Cumulative Operating Losses | $ 8,500,000 | $ 8,000,000 |
10. Commitments and Contingen38
10. Commitments and Contingencies (Details Narrative) | Jul. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Salary and Expenses, Unpaid | $ 69,127 |
11. Licenses Agreement (Details
11. Licenses Agreement (Details Narrative) | Jul. 31, 2015USD ($) |
Notes to Financial Statements | |
Deposit | $ 10,000 |
Total Due under Licensing Agreement | $ 490,000 |
Uncategorized Items - cetc-2015
Label | Element | Value |
us-gaap:NatureOfOperations | us-gaap_NatureOfOperations | History and Nature of Business On April 2, 2011, the Companys Board of Directors (the Board) authorized the merger with our wholly-owned subsidiary, Sky Power Solutions Corp., and in the merger the name of our Company was changed to Sky Power Solutions Corp. On April 15, 2008, Terra sold its controlling interest of the Companys outstanding common stock to Blue Diamond Investments, Inc. (Blue Diamond) With the sale of our VoIP telecommunications business, named Zingo Telecom, Inc., on May 15, 2008, the Company intends to concentrate efforts on further development of the lithium batteries technology licensed from Terra, the Companys former parent. Effective April 15, 2008, the Company entered into a License Agreement (License Agreement) with Terra Inventions providing for Terras license to the Company of Terras patent applications and technologies for rechargeable lithium-ion batteries for hybrid vehicles and other applications (Licensed Products). Under the License Agreement, Terra had the right to purchase its requirements of lithium ion batteries from the Company, and its requirements of lithium ion batteries would have been supplied in preference to, and on a priority basis as compared with, supply and delivery arrangements in effect for other customers. Terras cost for lithium ion batteries purchased from the Company would be the actual manufacturing costs for such batteries for our fiscal quarter in which Terras purchase takes place. On May 25, 2010, the agreement was amended to grant the Company the exclusive license rights for the United States and Terra may grant other companies rights elsewhere around the world. Under the terms of the License Agreement, the Company agreed to invest a minimum of $1,500,000 in each of the first two years under the License Agreement in development of the technology for the Licensed Products. To date, we have not met the minimum requirements in the development of the technology, and therefore, are not compliant with our obligations under this covenant of the License Agreement. Terra advised the Company that it will not give notice of default against the Company for its failure to comply with this covenant over the term of the License Agreement. Effective April 16, 2008, the Company agreed to lease approximately 5,000 square feet of space in Terras North Carolina facility. The leased space was suitable, and utilized by the Company, for developmental and manufacturing operations for licensed products pursuant to the license agreement. The lease was terminated May 2012. Also, effective April 16, 2008, the Company purchased certain equipment and supplies related to the license agreement from Terra for the purchase price of $29,005. |