Cannagistics (CNGT) 10-Q 20 Jun 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Apr. 30, 2016	Jun. 07, 2016
Document And Entity Information
Entity Registrant Name	Precious Investments, Inc.
Entity Central Index Key	1,304,741
Document Type	10-Q
Document Period End Date	Apr. 30, 2016
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?	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,173,616
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($)	Apr. 30, 2016	Jul. 31, 2015
ASSETS
Inventory	$ 4,000,250
Prepaid expenses
Total assets	$ 4,000,250
Current liabilities
Accounts payable and accrued liabilities	347,586	$ 151,336
Promissory notes	16,450	16,450
Convertible notes payable	1,277,665	312,285
Loan payable - related party	64,349	45,949
Total current liabilities	1,706,050	526,020
Total liabilities	1,706,050	526,020
Preferred stock, par value $.001; 10,000,000 shares authorized; 250,000 and 250,000 issued and outstanding as of April 30, 2016 and	250	250
Common stock; $0.001 par value; 250,000,000 shares authorized; 4,964,154 and 3,377,294 outstanding as of April 30, 2016	4,964	3,377
Additional paid-in capital	6,875,134	959,198
Treasury stock	45,000	45,000
Accumulated deficit	(4,541,148)	(1,443,845)
Total stockholders' equity (deficit)	2,294,200	$ (526,020)
Total liabilities and stockholders' equity (deficit)	$ 4,000,250

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2016	Jul. 31, 2015
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	250,000	250,000
Preferred stock, shares outstanding	250,000	250,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	4,964,154	3,377,294
Common stock, shares outstanding	4,964,154	3,377,294

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Operating expenses
General and administrative expenses	$ 5,154	$ 16,377	$ 18,380	$ 98,824
Professional fees	1,506,555		2,235,052
Total operating expenses	1,511,709	16,377	2,253,432	98,824
Loss before undernoted	(1,511,709)	(16,377)	(2,253,432)	(98,824)
Other expense
Interest expense	(389,203)	(5,431)	(1,151,371)	(14,777)
Gain on the sale of subsidiary	307,500		307,500
Total other expense	(81,703)	(5,431)	(843,871)	(14,777)
Net loss and comprehensive loss	$ (1,593,412)	$ (21,808)	$ (3,097,303)	$ (113,601)
Net loss per common share: basic and diluted	$ (0.31)	$ (0.01)	$ (0.70)	$ (0.04)
Basic and diluted weighted average common shares outstanding	5,111,376	3,067,294	4,404,038	3,035,005

Statements of Cash Flows

Statements of Cash Flows - USD ($)	9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Cash Flows from Operating Activities
Net loss	$ (3,097,303)	$ (113,601)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of debt discount	967,317	10,780
Shares issued for services	2,187,500
Gain on the sale of subsidiary	(307,500)
Changes in assets and liabilities
Accounts payable and accrued expenses	196,250	102,821
Net cash from operating activities	(53,736)
Cash Flows from Financing Activities
Proceeds from the sale of common stock	35,336
Advances from related parties	18,400	35,630
Net cash from financing activities	53,736
Non-Cash investing and financing transactions
Issuance of note payables for inventory	4,000,250
Shares issued to settle convertible debt	1,800
Decrease in discount on convertible notes due to conversion	$ 195	$ 17,944

Orgnization and Summary of Sign

Orgnization and Summary of Significant Accounting Policies	9 Months Ended
	Apr. 30, 2016
Accounting Policies [Abstract]
ORGNIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Description of Business Precious Investments, Inc. (Formerly FIGO Ventures, Inc.) (‘The Company’) was incorporated under the laws of the State of Nevada on May 26, 2004. The Company was an Exploration Stage Company with the principle business being the acquisition and exploration of resource properties. The Company had allowed its charter with the state of Nevada to be revoked by the Secretary of State for failure to file the required annual lists and pay the required annual fees. Its last known officers and directors reflected in the records of the Secretary of State were unresponsive or stated they were no longer involved with the Company. The purported replacement officers and directors were unresponsive. On September 14, 2012, NPNC Management, LLC filed a petition in the Eighth Judicial District Court in Clark County, Nevada and was appointed custodian of the Company on October 15, 2012. In order to obtain basic operating capital to pay for the reinstatement of the Company’s good standing with the Nevada Secretary of State, to bring the Company’s account current with creditors essential for the reorganization of the Company, such as the transfer agent, and for basic general corporate purposes, on October 24, 2012, the interim board authorized the sale of 55,000,000 (2,200,000 split adjusted) shares of common stock for $6,000 to NPNC Management, LLC, in a private placement transaction exempt from the Securities Act of 1933, as amended, pursuant to section 4(2) thereof and the rules and regulations promulgated there under. On October 24, 2012, NPNC Management, LLC appointed Bryan Clark as director of the Company, to hold office until such time as the shareholders elected a board. The interim board, consisting of Mr. Clark, further acted to appoint Mr. Clark as president, treasurer, and secretary of the Company, to act on behalf of the Company, and to hold such offices until removed by any subsequent board elected by the shareholders. On November 13, 2013, Bryan Clark tendered his resignation from all positions as an Officer and Director of the Company and the Board appointed Anna Wlodarkiewicz as a Director, President, Secretary and Treasurer of the Company. On October 9, 2014, Anna Wlodarkiewicz tendered her resignation from all positions as an Officer and Director of the Company and the Board appointed Nataliya Hearn as a Director, President, Secretary and Treasurer of the Company. On March 28, 2016, Nataliya Hearn resigned as the Company’s Chief Executive Officer and Director. Mr. Kashif Khan is the Company’s sole officer and director. The Company has completed an asset purchase agreement dated August 10, 2015 where the Company acquired from Kashif Khan, its sole officer and director, colored diamonds with a wholesale value of US$4 Million, which he was in control of, in exchange for issuing three secured demand convertible promissory notes totaling US$4 Million. The Company is in the business of purchasing and selling colored diamonds. Basis of Presentation The condensed consolidated interim financial statements are presented in conformity with accounting principles generally accepted in the United States of America, as reported on our fiscal period ended on April 30, 2016. We have summarized our most significant accounting policies. Unaudited Condensed Consolidated Interim Financial Statements These unaudited condensed consolidated interim financial statements have been prepared on the same basis as the annual financial statement and should be read in conjunction with those annual financial statements filed on Form 10-K for the year ended July 31, 2015. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results for a full year or for any future period. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 1 – ORGNIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company reviews the terms of convertible loans, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company may issue freestanding options or warrants to employees and non-employees in connection with consulting or other services. These options or warrants may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at fair value and then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. To the extent that the initial fair values of the freestanding and/or bifurcated derivative instrument liabilities exceed the total proceeds received an immediate charge to income is recognized in order to initially record the derivative instrument liabilities at their fair value. The discount from the face value of the convertible debt instruments resulting from allocating some or all of the proceeds to the derivative instruments, together with the stated rate of interest on the instrument, is amortized over the life of the instrument through periodic charges to income, using the effective interest method. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date. Fair value of financial instruments The Company’s financial instruments consist of its liabilities. The carrying amount of payables and the loan payable – related party approximate fair value because of the short-term nature of these items. The promissory notes, and convertible notes payables are measured at amortized cost using the effective interest method, which approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate. Inventories Inventory consist of loose colored diamond acquired during the period (See Note 8) and is stated at the lower of cost or net realizable value. The Company writes-down inventory once it has been determined that conditions exist that may not allow the inventory to be sold for its intended purpose or the inventory is determined to be excess or obsolete based on our forecasted future sales. The charge related to inventory write-downs is recorded as a cost of revenue. Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim periods within that period. The impact on the condensed interim financial statements of adopting ASU 2014-09 will be assessed by management. On August 27, 2014, the FASB issued a new financial accounting standard on going concern, ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Sub-Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The standard provides guidance about management’s responsibility to evaluate whether there is a substantial doubt about the organization’s ability to continue as a going concern. The amendments in this Update apply to all companies. They become effective in the annual period ending after December 15, 2016, with early application permitted. The impact on the condensed consolidated interim financial statements of adopting ASU 2014-15 will be assessed by management. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed consolidated interim financial statements.

Going Concern

Going Concern	9 Months Ended
	Apr. 30, 2016
Going Concern [Abstract]
GOING CONCERN	NOTE 2 – GOING CONCERN These condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of April 30, 2016, the Company has an accumulated deficit of $4,541,148. The Company’s ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and our ability to achieve and maintain profitable operations. While we are expanding our best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about our ability to continue as a going concern. These condensed consolidated interim financial statements do not include any adjustments that might arise from this uncertainty.

Bitgems Asset Management Ltd

Bitgems Asset Management Ltd	9 Months Ended
	Apr. 30, 2016
Fair Value Disclosures [Abstract]
BITGEMS ASSET MANAGEMENT LTD	NOTE 3 – BITGEMS ASSETS MANAGEMENT LTD On March 24, 2016, the Company entered into an Agreement for Transfer of Ownership with Gulf Peal Ltd. and goNumerical Ltd.(the “Consulting Firms”) (the “Transfer Agreement”). Under the Transfer Agreement, the Company agreed to transfer all intellectual property rights as part of the cryptocurrency diamond market and PinkCoin projects to Gulf Pearl Ltd. and GoNumerical Ltd. (the “Consulting Firms”). In addition, the Company agreed to transfer ownership and management of its subsidiary, Bitgems Assets Management Ltd., to the Consulting Firms. In exchange, the Consulting Firms agreed to return their collective 1,000,000 shares in the Company acquired under the previously entered Memorandum of Understanding dated October 1, 2015 and Amended Memorandum of Understanding dated October 12, 2015. On the date of the sale, Bitgems Assets Management had no assets or liabilities and as such the Company recorded the value of the 1,000,000 shares received of $2,400,000 as a gain on the sale of subsidiary. Additionally, the Company recorded the amortization of a previously recorded prepaid expense of $2,092,500 (See note 4) associated with the MOU to the sale price of the subsidiary. As a result during the three and nine months ended April 30, 2016, the Company recorded a net gain on the sale of its subsidiary of $307,500.

Prrepaid Expenses

Prrepaid Expenses	9 Months Ended
	Apr. 30, 2016
Fair Value Disclosures [Abstract]
PREPAID EXPENSES	NOTE 4 – PREPAID EXPENSES On October 1, 2015, we entered into a Memorandum of Understanding (“MOU”) with Gulf Peal Ltd. and goNumerical Ltd. (the “Consulting Firms”) in which each of the Consulting Firms shall receive 500,000 shares of common stock upon meeting certain milestones, with 250,000 shares of common stock being earned upon execution of the MOU. During the period ended April 30, 2016, we issued a total of 1,000,000 shares of common stock valued at $2,790,000 based on the fair market value on the agreement date to the consultants related to the agreement. During the quarter ended April 30, 2016, the Company had included the value of the 750,000 unearned shares amounting to $2,092,500 as a prepaid expense until such time the milestones were met and the shares were earned. As of April 30, 2016, no additional milestones were met and as a result of the Transfer Agreement (See Note 3) and the return of the previously issued shares, the Company has amortized the balance of the outstanding prepaid of $2,092,500 to the selling price of the subsidiary. As of April 30, 2016 and 2015, the balance of the prepaid expenses is $0.

Promissory Notes

Promissory Notes	9 Months Ended
	Apr. 30, 2016
Debt Disclosure [Abstract]
PROMISSORY NOTES	NOTE 5 – PROMISSORY NOTES Promissory notes payable as of April 30, 2016 and July 31, 2015 consisted of the following: Description April 30, 2016 July 31, 2015 Note payable dated January 15, 2014, matured January 15, 2015 bearing interest at 12% per annum. $ 3,000 $ 3,000 Note payable dated February 14, 2014 matured February 14, 2015, bearing interest at 12% per annum. 3,750 3,750 Note payable dated April 1, 2014 matured April 1, 2015, bearing interest at 12% per annum. 4,700 4,700 Note payable dated January 30, 2014, matured January 30, 2015, bearing interest at 12% per annum. 5,000 5,000 Total $ 16,450 $ 16,450 These notes have matured as of April 30, 2016, however have not been paid. Interest expense related to the notes for the six months ended April 30, 2016 and 2015 was $1,482 and $1,446 respectively.

Convertible Debt

Convertible Debt	9 Months Ended
	Apr. 30, 2016
Debt Disclosure [Abstract]
CONVERTIBLE DEBT	NOTE 6- CONVERTIBLE DEBT Convertible debt as of April 30, 2016 and July 31, 2015 consisted of the following: Description April 30, 2016 July 31, 2015 Convertible note agreement dated January 11, 2007, of up to $1,000,000 bearing interest at 10% per annum, originally scheduled to mature on January 11, 2009. Convertible by Lender at its sole option into units in the capital stock such that for each $0.40 of principal outstanding at the time of conversion may be converted into one unit consisting of one common share and one non-transferable share purchase warrant exercisable for a period of up to two years from the date of conversion. Each warrant shall entitle the Lender to purchase an additional common share of the Company at $0.60 during the term of the warrants. The remaining balance of the beneficial feature conversion applicable to this note at January 31, 2016 and July 31, 2014 was zero. $ 289,140 $ 289,140 Convertible note agreements (3) dated November 1, 2013, totaling $45,000. Maturing on November 30, 2015 bearing interest at 12% per annum. Principal and accrued interest is convertible at $.00225 per share. The beneficial conversion feature was recorded as a discount to the debt and is being amortized over the term of the notes. 25,119 27,056 Convertible note agreements (3) dated August 10, 2015, totaling $4,000,000. Maturing on August 9, 2018 bearing interest at 6% per annum. Principal and accrued interest is convertible at $.247 per share. The beneficial conversion feature was recorded as a discount to the debt and is being amortized over the term of the notes. (See note 8) 4,000,000 - Less: unamortized discount (3,036,594 ) (3,910 ) Convertible notes, net of discount 1,277,665 312,285 The Company does not have a copy of the Convertible note agreement dated January 11, 2007. Neither the Note nor the name of the lender are found in our public filings. The Company has taken significant efforts to locate a copy of the Note to no avail. The Company contacted the prior auditor, Dale Matheson Carr-Hilton Labonte LLP, which audited our July 31, 2008 and 2007 financial statements found in our 10KSB for the year ended July 31, 2008. After conducting a search, Dale Matheson informed us that they do not have a copy of the Note. Despite not having a copy of the Note, the material terms of the note were contained in our prior financial statements for the year ended July 31, 2008, and those terms are sufficient for all material purposes to accurately present our current financial statements. The Note matured on January 11, 2009 and the statute of limitations ran on January 11, 2015. As such, the Company cannot file a copy of the Note, but believe the present circumstances warrant a departure from the requirements of Item 601 of Regulation S-K. During the nine months ended April 30, 2016 and 2015, the Company recognized $967,317 and $8,800 of accretion expense on the above notes, respectively. Interest expense related to these notes for the nine months ended April 30, 2016 and 2015 was $184,054 and $2,552, respectively.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Apr. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTIONS A shareholder of the Company has paid certain expenses of the Company. These amounts are reflected as a loan payable to related party. The shareholder advanced $18,400 during the nine months ended April 30, 2016. As of the April 30, 2016 and July 31, 2015, there were $64,349 and $45,949 due to related parties, respectively. All advances from related parties are interest free and due upon demand.

Diamond Purchase Agreement

Diamond Purchase Agreement	9 Months Ended
	Apr. 30, 2016
Diamond Purchase Agreement [Abstract]
DIAMOND PURCHASE AGREEMENT	NOTE 8 – DIAMOND PURCHASE AGREEMENTS On August 10, 2015, we entered into a Diamond Purchase Agreement (the “Agreement”) with Kashif Khan (“Khan”), an arm’s length party. Pursuant to the Agreement, we acquired from Khan colored diamonds (the “Assets”) for three demand secured convertible promissory notes (the “Notes”) in the aggregate principal amount of $4,000,000. The Notes have the following features: Note A Note A is in the principal amount of $1.7 million, accrues interest at 6% per annum and matures: a) within 20 business days of a receipt of written demand from the holder for payment of all of the Notes, provided that i) we have not raised $5 million in debt or equity financing before written demand was tendered or any portion of Note was converted into shares of our common stock; or b) in all other cases, thirty-six months from the issuance of Note A. Upon written demand for payment, the Company may either pay all principal and accrued interest on the Notes or return the Assets to the holder to fulfill all obligations. The holder may convert the principal and accrued interest into shares of our common stock at $0.247386975 per share up to a maximum conversion allowance of 6,871,825 shares. If the we raise $5 million in debt or equity financing or if the holder converts any portion of Note A, then the Note will automatically convert at maturity into a total of 6,871,825 shares of our common stock. If we prepay Notes B and C, however, then the conversion price will adjust to $0.105139464 per share for a total conversion allowance of 16,169,000 shares. The Company may not prepay Note A and it is secured by $1,700,000 worth of the Assets. Note B Note B is in the principal amount of $1.15 million, accrues interest at 6% per annum and matures: a) within 20 business days of a receipt of written demand from the holder for payment of all of the Notes, provided that i) we have not raised $5 million in debt or equity financing before written demand was tendered or any portion of Note was converted into shares of our common stock; or b) in all other cases, thirty-six months from the issuance of Note B. Upon written demand for payment, the Company may either pay all principal and accrued interest on the Notes or return the Assets to the holder to fulfill all obligations. The holder may convert the principal and accrued interest into shares of our common stock at $0.247386975 per share up to a maximum conversion allowance of 4,648,588 shares. If we raise $5 million in debt or equity financing or if the holder converts any portion of Note B, then the Note will automatically convert at maturity into a total of 4,648,588 shares of our common stock. The Company may prepay all of the outstanding principal and accrued interest under Note B, provided that we also prepays all of the outstanding principal and accrued interest of Note C. Note B is secured by $1,150,000 worth of the Assets. Note C Note C is in the principal amount of $1.15 million, accrues interest at 6% per annum and matures: a) within 20 business days of a receipt of written demand from the holder for payment of all of the Notes, provided that i) we have not raised $5 million in debt or equity financing before written demand was tendered or any portion of Note was converted into shares of our common stock; or b) in all other cases, thirty-six months from the issuance of Note C. Upon written demand for payment, the Company may either pay all principal and accrued interest on the Notes or return the Assets to the holder to fulfill all obligations. The holder may convert the principal and accrued interest into shares of our common stock at $0.247386975 per share up to a maximum conversion allowance of 4,648,588. If we raise $5 million in debt or equity financing or if the holder converts any portion of Note B, then the Note will shares automatically convert at maturity into a total of 4,648,588 shares of our common stock. The Company may prepay all of the outstanding principal and accrued interest under Note C, provided that we also prepay all of the outstanding principal and accrued interest of Note B. Note C is secured by $1,150,000 worth of the Assets. Also, as provided in the Agreement, our former officer and director, Natalya Hearn, agreed to transfer her 250,000 shares of Series A Preferred Stock to Khan. Under the Agreement, these shares of Series A Preferred Stock will cancel and return to our treasury upon Khan converting the Notes into 51% of the Company issued and outstanding common stock. Also, if Kahn demands payment of the Notes, then the shares of Series A Preferred Stock will cancel and return to our treasury. The Company also agreed to appoint two nominees of Khan to our board of directors and to register 7,500,000 shares of common stock converted from existing notes along with remaining shares of common stock underlying convertible notes. The Notes in favor of Khan do not have registration rights. The Company has determined that the asset acquired did not meet the definition of a business as defined in ASC 805 and as such the transaction was treated as an asset acquisition and the diamonds are shown on the Company’s condensed consolidated interim balance sheet as inventory. In measuring the Notes, it was determined that they contained a beneficial conversion feature, which upon measurement resulted in the full amount of the proceeds being allocated entirely to the beneficial conversion feature. Additional Diamond Purchase Agreements During the three months ended April 30, 2016, the Company entered into various additional Diamond Purchase Agreements to purchase diamond assets consisting of various colored diamonds for 2,303,090 shares of common stock. The shares have not been issued as of April 30, 2016 and as such none of the purchase agreements have closed; however, subsequent to period end 414,250 shares were issued related to these agreements, the remaining agreements are still outstanding.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Apr. 30, 2016
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 9 – STOCKHOLDERS’ EQUITY On September 18, 2015, the Company issued 1,000 units consisting of one share and one warrant of stock for $2,000 cash. During the nine months ended April 30 2016, the Company issued 335,860 shares of common stock for $33,586 cash. During the nine months ended April 30, 2016, the Company issued 750,000 shares valued at $1,800 for the conversion of a convertible note payable dated November 1, 2013. During the nine months ended April 30, 2016, the Company issued 1,000,000 shares valued at $2,790,000 for services. The shares were returned during the three months ended April 30, 2016 and are being held in treasury (Note 3). During the nine months ended April 30, 2016, the Company issued 500,000 shares valued at $1,490,000 for services.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10 – COMMITMENTS AND CONTINGENCIES Litigations, Claims and Assessments The Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business. The Company is currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.

Subsequent Events

Subsequent Events	9 Months Ended
	Apr. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 11 – SUBSEQUENT EVENTS On April 25, 2016, the Company signed an Acquisition of Shares Agreement (the “Agreement”) with Karrah Inc., an Ontario corporation (“Karrah”), and the sole shareholder of Karrah, Farrah Khan, who is the wife of our director, Kashif Khan. Pursuant to the Agreement, the Company acquired all of the issued and outstanding shares of stock in Karrah, resulting in a parent subsidiary relationship. In consideration for the acquisition of Karrah, the Company issued to Farrah Khan two three year promissory notes totaling $1,793,276 with interest at 6% per annum. Interest will be payable at maturity or from time to time at the Company’s sole discretion. The Company has the right to prepay the Notes. The Note will be secured by all the assets of Karrah. Karrah has been successful in buying liquidation and closeout merchandise and supplying the same to retailers, auctioneer and collectors in Toronto and Vancouver, Canada. We plan to scale the business by funding the acquisition of more merchandise in order to do the same business in the United States auction houses and retailers. We intend to be a manufacturer and wholesaler of fine jewelry, a wholesaler of fine pre-owned vintage watches and buyer of jewelry, watches and diamonds via liquidations, bankruptcies and estate sales. Karrah has developed relationships with brokers and agents involved in liquidation and bankruptcy for closeout merchandise. In addition, Karrah has also developed manufacturing tactics that allow it to customize Swiss watches with diamonds and gems enhancing their value. We plan to build upon these two strengths to grow our company. As of the date of this filing the initial accounting for the business combination is incomplete, and as such the Company has omitted the revenue and earnings of Karrah and the supplemental pro forma as required by ASC 805. Once the accounting is completed, Karrah will undergo an audit as required by SEC rules and regulations. The acquisition agreement was consummated and it closed on May 1, 2016. The Company has not received the completed financial information from Karrah, and as such has omitted the required pro forma financial statement disclosure from this note as required by ASC 805. Once the financial information is completed, Karrah will undergo an audit as required by SEC rules and regulations. In addition to the Diamond Purchase Agreements signed during the period (Note 8), Subsequent to year end, the board of directors authorized the issuance of 1,537,410 shares of common stock related to various additional Diamond Purchase Agreements with stated values of $4,093,276. On May 5, 2016, the Company issued 414,250 shares of common stock related to various Diamond Purchase Agreements. On June 7, 2016, we issued 3,255,749 shares of common stock related to various Diamond Purchase Agreements for colored diamonds with stated values of $8,248,722. On May 16, 2016, the Company issued 450,000 shares of common stock in partial conversion of a certain note payable dated November 1, 2013

Bitgems Asset Management Ltd (d

Bitgems Asset Management Ltd (details)	9 Months Ended
	Apr. 30, 2016USD ($)	Mar. 24, 2016USD ($)shares
Fair Value Disclosures [Abstract]
Bitgems Asset Management Ltd (details)	NOTE 3 – BITGEMS ASSETS MANAGEMENT LTD On March 24, 2016, the Company entered into an Agreement for Transfer of Ownership with Gulf Peal Ltd. and goNumerical Ltd.(the “Consulting Firms”) (the “Transfer Agreement”). Under the Transfer Agreement, the Company agreed to transfer all intellectual property rights as part of the cryptocurrency diamond market and PinkCoin projects to Gulf Pearl Ltd. and GoNumerical Ltd. (the “Consulting Firms”). In addition, the Company agreed to transfer ownership and management of its subsidiary, Bitgems Assets Management Ltd., to the Consulting Firms. In exchange, the Consulting Firms agreed to return their collective 1,000,000 shares in the Company acquired under the previously entered Memorandum of Understanding dated October 1, 2015 and Amended Memorandum of Understanding dated October 12, 2015. On the date of the sale, Bitgems Assets Management had no assets or liabilities and as such the Company recorded the value of the 1,000,000 shares received of $2,400,000 as a gain on the sale of subsidiary. Additionally, the Company recorded the amortization of a previously recorded prepaid expense of $2,092,500 (See note 4) associated with the MOU to the sale price of the subsidiary. As a result during the three and nine months ended April 30, 2016, the Company recorded a net gain on the sale of its subsidiary of $307,500.
Shares Returned | shares		1,000,000
Value of Shares Received		$ 2,400,000
Amorization of previously recorded prepaid Expense	2,092,500
Gain On Saleof Subsidiary [Member]
Gain on sale of Subsidiary	$ 307,500

Orgnization and Summary of Si18

Orgnization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Apr. 30, 2016
Accounting Policies [Abstract]
Organization and Description of Business	Organization and Description of Business Precious Investments, Inc. (Formerly FIGO Ventures, Inc.) (‘The Company’) was incorporated under the laws of the State of Nevada on May 26, 2004. The Company was an Exploration Stage Company with the principle business being the acquisition and exploration of resource properties. The Company had allowed its charter with the state of Nevada to be revoked by the Secretary of State for failure to file the required annual lists and pay the required annual fees. Its last known officers and directors reflected in the records of the Secretary of State were unresponsive or stated they were no longer involved with the Company. The purported replacement officers and directors were unresponsive. On September 14, 2012, NPNC Management, LLC filed a petition in the Eighth Judicial District Court in Clark County, Nevada and was appointed custodian of the Company on October 15, 2012. In order to obtain basic operating capital to pay for the reinstatement of the Company’s good standing with the Nevada Secretary of State, to bring the Company’s account current with creditors essential for the reorganization of the Company, such as the transfer agent, and for basic general corporate purposes, on October 24, 2012, the interim board authorized the sale of 55,000,000 (2,200,000 split adjusted) shares of common stock for $6,000 to NPNC Management, LLC, in a private placement transaction exempt from the Securities Act of 1933, as amended, pursuant to section 4(2) thereof and the rules and regulations promulgated there under. On October 24, 2012, NPNC Management, LLC appointed Bryan Clark as director of the Company, to hold office until such time as the shareholders elected a board. The interim board, consisting of Mr. Clark, further acted to appoint Mr. Clark as president, treasurer, and secretary of the Company, to act on behalf of the Company, and to hold such offices until removed by any subsequent board elected by the shareholders. On November 13, 2013, Bryan Clark tendered his resignation from all positions as an Officer and Director of the Company and the Board appointed Anna Wlodarkiewicz as a Director, President, Secretary and Treasurer of the Company. On October 9, 2014, Anna Wlodarkiewicz tendered her resignation from all positions as an Officer and Director of the Company and the Board appointed Nataliya Hearn as a Director, President, Secretary and Treasurer of the Company. On March 28, 2016, Nataliya Hearn resigned as the Company’s Chief Executive Officer and Director. Mr. Kashif Khan is the Company’s sole officer and director. The Company has completed an asset purchase agreement dated August 10, 2015 where the Company acquired from Kashif Khan, its sole officer and director, colored diamonds with a wholesale value of US$4 Million, which he was in control of, in exchange for issuing three secured demand convertible promissory notes totaling US$4 Million. The Company is in the business of purchasing and selling colored diamonds.
Basis of Presentation	Basis of Presentation The condensed consolidated interim financial statements are presented in conformity with accounting principles generally accepted in the United States of America, as reported on our fiscal period ended on April 30, 2016. We have summarized our most significant accounting policies.
Unaudited Condensed Interim Financial Statements	Unaudited Condensed Consolidated Interim Financial Statements These unaudited condensed consolidated interim financial statements have been prepared on the same basis as the annual financial statement and should be read in conjunction with those annual financial statements filed on Form 10-K for the year ended July 31, 2015. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results for a full year or for any future period.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Derivative Financial Instruments	Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company reviews the terms of convertible loans, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company may issue freestanding options or warrants to employees and non-employees in connection with consulting or other services. These options or warrants may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at fair value and then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. To the extent that the initial fair values of the freestanding and/or bifurcated derivative instrument liabilities exceed the total proceeds received an immediate charge to income is recognized in order to initially record the derivative instrument liabilities at their fair value. The discount from the face value of the convertible debt instruments resulting from allocating some or all of the proceeds to the derivative instruments, together with the stated rate of interest on the instrument, is amortized over the life of the instrument through periodic charges to income, using the effective interest method. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.
Fair value of financial instruments	Fair value of financial instruments The Company’s financial instruments consist of its liabilities. The carrying amount of payables and the loan payable – related party approximate fair value because of the short-term nature of these items. The promissory notes, and convertible notes payables are measured at amortized cost using the effective interest method, which approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate.
Inventories	Inventories Inventory consist of loose colored diamond acquired during the period (See Note 8) and is stated at the lower of cost or net realizable value. The Company writes-down inventory once it has been determined that conditions exist that may not allow the inventory to be sold for its intended purpose or the inventory is determined to be excess or obsolete based on our forecasted future sales. The charge related to inventory write-downs is recorded as a cost of revenue.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim periods within that period. The impact on the condensed interim financial statements of adopting ASU 2014-09 will be assessed by management. On August 27, 2014, the FASB issued a new financial accounting standard on going concern, ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Sub-Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The standard provides guidance about management’s responsibility to evaluate whether there is a substantial doubt about the organization’s ability to continue as a going concern. The amendments in this Update apply to all companies. They become effective in the annual period ending after December 15, 2016, with early application permitted. The impact on the condensed consolidated interim financial statements of adopting ASU 2014-15 will be assessed by management. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed consolidated interim financial statements.

Promissory Notes (Tables)

Promissory Notes (Tables)	9 Months Ended
	Apr. 30, 2016
Debt Disclosure [Abstract]
Schedule of promissory notes payable	Description April 30, 2016 July 31, 2015 Note payable dated January 15, 2014, matured January 15, 2015 bearing interest at 12% per annum. $ 3,000 $ 3,000 Note payable dated February 14, 2014 matured February 14, 2015, bearing interest at 12% per annum. 3,750 3,750 Note payable dated April 1, 2014 matured April 1, 2015, bearing interest at 12% per annum. 4,700 4,700 Note payable dated January 30, 2014, matured January 30, 2015, bearing interest at 12% per annum. 5,000 5,000 Total $ 16,450 $ 16,450

Convertible Debt (Tables)

Convertible Debt (Tables)	9 Months Ended
	Apr. 30, 2016
Debt Disclosure [Abstract]
Schedule of convertible debt	Description April 30, 2016 July 31, 2015 Convertible note agreement dated January 11, 2007, of up to $1,000,000 bearing interest at 10% per annum, originally scheduled to mature on January 11, 2009. Convertible by Lender at its sole option into units in the capital stock such that for each $0.40 of principal outstanding at the time of conversion may be converted into one unit consisting of one common share and one non-transferable share purchase warrant exercisable for a period of up to two years from the date of conversion. Each warrant shall entitle the Lender to purchase an additional common share of the Company at $0.60 during the term of the warrants. The remaining balance of the beneficial feature conversion applicable to this note at January 31, 2016 and July 31, 2014 was zero. $ 289,140 $ 289,140 Convertible note agreements (3) dated November 1, 2013, totaling $45,000. Maturing on November 30, 2015 bearing interest at 12% per annum. Principal and accrued interest is convertible at $.00225 per share. The beneficial conversion feature was recorded as a discount to the debt and is being amortized over the term of the notes. 25,119 27,056 Convertible note agreements (3) dated August 10, 2015, totaling $4,000,000. Maturing on August 9, 2018 bearing interest at 6% per annum. Principal and accrued interest is convertible at $.247 per share. The beneficial conversion feature was recorded as a discount to the debt and is being amortized over the term of the notes. (See note 8) 4,000,000 - Less: unamortized discount (3,036,594 ) (3,910 ) Convertible notes, net of discount 1,277,665 312,285

Orgnization and Summary of Si21

Orgnization and Summary of Significant Accounting Policies (Details) - Asset Management Company [Member]	Oct. 24, 2012USD ($)shares
Orgnization and Summary of Significant Accounting Policies (Textual)
Sale of stock during period, shares	55,000,000
Stock splits	2,200,000
Sale of stock during period, value | $	$ 6,000

Going Concern (Details)

Going Concern (Details) - USD ($)	Apr. 30, 2016	Jul. 31, 2015
Going Concern (Textual)
Accumulated deficit	$ (4,541,148)	$ (1,443,845)

Prepaid Expenses (Details)

Prepaid Expenses (Details) - USD ($)	9 Months Ended
	Apr. 30, 2016	Oct. 01, 2015	Jul. 31, 2015
Schedule of Fair Value Hierarchy
Balance	$ 1,277,665		$ 312,285
Common Stock Issued		$ 500,000
Value of Common Stock Issued	2,790,000
Common Stock Issued upon Milestone	$ 250,000	$ 250,000
Fair Value, Inputs, Level 2 [Member]
Schedule of Fair Value Hierarchy
Current Convertible Notes	750,000
Balance	2,092,500
Common Stock Issued	$ 1,000,000

Promissory Notes (Details)

Promissory Notes (Details) - USD ($)	Apr. 30, 2016	Jul. 31, 2015
Schedule of Promissory Notes Payable
Notes payable, Total	$ 16,450	$ 16,450
Promissory Notes One [Member]
Schedule of Promissory Notes Payable
Notes payable, Total	3,000	3,000
Promissory Notes Three [Member]
Schedule of Promissory Notes Payable
Notes payable, Total	4,700	4,700
Promissory Notes Two [Member]
Schedule of Promissory Notes Payable
Notes payable, Total	3,750	3,750
Promissory Notes Four [Member]
Schedule of Promissory Notes Payable
Notes payable, Total	$ 5,000	$ 5,000

Promissory Notes (Details Textu

Promissory Notes (Details Textual) - USD ($)	9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Promissory Notes (Textual)
Interest expense	$ 148,200	$ 144,600
Promissory Notes Three [Member]
Promissory Notes (Textual)
Notes payable, issuance date	Apr. 1, 2014
Notes payable, maturity date	Apr. 1, 2015
Notes payable, rate of interest	12.00%
Promissory Notes Four [Member]
Promissory Notes (Textual)
Notes payable, issuance date	Jan. 30, 2014
Notes payable, maturity date	Jan. 30, 2015
Notes payable, rate of interest	12.00%
Promissory Notes One [Member]
Promissory Notes (Textual)
Notes payable, issuance date	Jan. 15, 2014
Notes payable, maturity date	Jan. 15, 2015
Notes payable, rate of interest	12.00%
Promissory Notes Two [Member]
Promissory Notes (Textual)
Notes payable, issuance date	Feb. 14, 2014
Notes payable, maturity date	Feb. 14, 2015
Notes payable, rate of interest	12.00%

Convertible Debt (Details)

Convertible Debt (Details) - USD ($)	Apr. 30, 2016	Jul. 31, 2015
Schedule of Convertible Notes Payable
Less: unamortized discount	$ (3,036,594)	$ (3,910)
Convertible notes, net of discount	1,277,665	312,285
Convertible Debt One [Member]
Schedule of Convertible Notes Payable
Convertible notes	25,119	27,056
Convertible Debt [Member]
Schedule of Convertible Notes Payable
Convertible notes	289,140	$ 289,140
Convertible Debt Two [Member]
Schedule of Convertible Notes Payable
Convertible notes	$ 4,000,000

Convertible Debt (Details Textu

Convertible Debt (Details Textual) - USD ($)	9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 25, 2016	Aug. 10, 2015
Convertible Debt (Textual)
Convertible notes, Effective interest rate			6.00%
Amortization of debt discount	$ 967,317	$ 8,800
Interest expense	184,054	$ 2,552
Convertible Debt Two [Member]
Convertible Debt (Textual)
Convertible debt	$ 4,000,000			$ 5
Convertible payable, Issuance Date	Aug. 9, 2015
Convertible note, Rate of interest	6.00%
Convertible notes, Conversion price	$ 0.247
Convertible notes, Effective interest rate	9.00%			6.00%
Convertible Debt [Member]
Convertible Debt (Textual)
Convertible debt	$ 1,000,000			$ 5
Convertible payable, Issuance Date	Jan. 11, 2007
Convertible note, Rate of interest	10.00%
Convertible notes, Conversion price	$ 0.40			$ 0.00225
Convertible notes, Terms of conversion feature	At the time of conversion may be converted into one unit consisting of one common share and one non-transferable share purchase warrant exercisable for a period of up to two years from the date of conversion. Each warrant shall entitle the Lender to purchase an additional common share of the Company at $0.60 during the term of the warrants. The remaining unamortized discount applicable to this note at October 31, 2015 and July 31, 2014 was zero.
Convertible notes, Effective interest rate				6.00%
Convertible Debt One [Member]
Convertible Debt (Textual)
Convertible debt	$ 45,000			$ 5
Convertible payable, Issuance Date	Nov. 30, 2015
Convertible note, Rate of interest	12.00%
Convertible notes, Conversion price	$ 0.00225
Convertible notes, Effective interest rate	32.00%			6.00%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Jul. 31, 2015
Related Party Transactions (Textual)
Advances from related parties	$ 18,400	$ 35,630
Due to related parties	$ 64,349		$ 45,949

Diamond Purchase Agreement (Det

Diamond Purchase Agreement (Details) - USD ($) $ in Thousands	Aug. 10, 2015	Apr. 30, 2016	Apr. 25, 2016
Diamond Purchase Agreement (Textual)
Accrues interest			6.00%
Common Stock Issued for Diamond Purchase		414,250
Common Stock Agreement for Diamond Purchase		2,303,090
Convertible Debt Two [Member]
Diamond Purchase Agreement (Textual)
Aggregate principal amount	$ 1,150
Accrues interest	6.00%	9.00%
Business maturity days	20 days
Convertible debt	$ 50	$ 40,000,000
Convertion of principal, description	The holder may convert the principal and accrued interest into shares of our common stock at $0.247386975 per share up to a maximum conversion allowance of 4,648,588. If we raise $5 million in debt or equity financing or if the holder converts any portion of Note B, then the Note will shares automatically convert at maturity into a total of 4,648,588 shares of our common stock.
Secured debt	$ 11,500,000
Convertible Debt [Member]
Diamond Purchase Agreement (Textual)
Aggregate principal amount	$ 170
Accrues interest	6.00%
Business maturity days	20 days
Convertible debt	$ 50	$ 10,000,000
Convertion of principal, description	The holder may convert the principal and accrued interest into shares of our common stock at $0.247386975 per share up to a maximum conversion allowance of 6,871,825 shares. If the we raise $5 million in debt or equity financing or if the holder converts any portion of Note A, then the Note will automatically convert at maturity into a total of 6,871,825 shares of our common stock. If we prepay Notes B and C, however, then the conversion price will adjust to $0.105139464 per share for a total conversion allowance of 16,169,000 shares.
Secured debt	$ 17,000,000
Convertible Debt One [Member]
Diamond Purchase Agreement (Textual)
Aggregate principal amount	$ 1,150
Accrues interest	6.00%	32.00%
Business maturity days	20 days
Convertible debt	$ 50	$ 450,000
Convertion of principal, description	The holder may convert the principal and accrued interest into shares of our common stock at $0.247386975 per share up to a maximum conversion allowance of 4,648,588 shares. If we raise $5 million in debt or equity financing or if the holder converts any portion of Note B, then the Note will automatically convert at maturity into a total of 4,648,588 shares of our common stock.
Secured debt	$ 11,500,000
Principal Owner [Member]
Diamond Purchase Agreement (Textual)
Aggregate principal amount	$ 40,000,000
Percentage of converting notes into issued and outstanding of common stock	51.00%
Common stock converted from existing notes	7,500,000
Officer And Director [Member] | Series A Preferred Stock [Member]
Diamond Purchase Agreement (Textual)
Number of shares transfer	250,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	9 Months Ended
	Apr. 30, 2016	Sep. 18, 2015	Nov. 01, 2013
Stockholders' Equity (Textual)
Number of units issued		1,000
Rights, stock or warrants price		$ 2,000
Cash Received	$ 33,586
Shares Issued	335,860
Shares Issued for conversion	750,000
Value of Shares Issued for conversion			$ 1,800
Shares Issued for Services	500,000
Value of Shares Issued for services	$ 1,490,000
Shares Issued for Services (Returned)	1,000,000
Value of Shares Issued for services (Reurned)	$ 2,790,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Jul. 07, 2016	May 01, 2016	Apr. 25, 2016	Jun. 07, 2016	May 16, 2016	May 05, 2016
Plans to issue Promissory Note			$ 1,793,276
Convertible effective percentage			6.00%
Common Stock Issued		$ 1,537,410				$ 414,250
Value of Common Stock Issued		$ 4,093,276
Common Stock Issued for Conversion of Note Payable					450,000
Diamond Purchase Agreement
Common Stock Issued				$ 3,255,749
Value of Common Stock Issued	$ 8,248,722