| ORGANIZATION AND BASIS OF ACCOUNTING | Organization and Description of Business Cannagistics, 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, Ania 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 then 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. On March 1, 2017, the Company then entered
into a joint venture agreement with Eddeb Management (“Eddeb”). The purpose of the joint venture is to build a fund
for the purpose of trading in precious gems, notably, colored diamonds. On November 16, 2017, the Company entered
into an Agreement of Merger and Plan of Reorganization (the “Merger Agreement”) with American Freight Xchange, Inc.,
a privately held New York corporation (“American Freight”), and Shipzooka Acquisition Corp. (“Shipzooka Sub”),
a newly formed wholly-owned Nevada subsidiary of Precious Investments, Inc. In connection with the closing of this merger transaction,
Shipzooka Sub merged with and into American Freight (the “Merger”) on December 5, 2017, with the filing of Articles
of Merger with the Nevada Secretary of State and Certificate of Merger with the New York Division of Corporations. The transaction resulted in the Company
acquiring Subsidiary by the exchange of all of the outstanding shares of Subsidiary for 1,000,000 newly issued Series C Preferred
shares of stock, $0.001 par value (the “Preferred Stock”) of Parent which have conversion and voting rights of 72.5
votes for each share, representing approximately 90.2% of the voting rights For accounting purposes, the transaction
was treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a
change in control, with the acquired company electing to become the successor issuer for reporting purposes. The accompanying financial
statements have been prepared to reflect the assets, liabilities and operations of American Freight Xchange, Inc. exclusive of
Precious Investments, Inc since all predecessor operations were discontinued. As part of the transaction, amounts
due to former officers were forgiven, with the balances recorded as Contributed Capital. For equity purposes, accumulated deficit
shown are those American Freight Xchange, Inc. Principles of consolidation The consolidated financial statements include the accounts
of Cannagistics, Inc. and its wholly owned subsidiaries American Freight Xchange, Inc and KRG, Inc. All significant inter-company
transactions and balances have been eliminated. 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 July 31, 2018. 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, 2018. 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. Accounts receivable and allowance
for doubtful accounts Accounts receivable are stated at the
amount management expects to collect. The Company generally does not require collateral to support customer receivables. The Company
provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information
and existing economic conditions. As of April 30, 2019, and 2018 the allowance for doubtful accounts was $0 and $0, respectively. 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. Income Taxes The Company’s calculation
of its tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing
jurisdictions. The Company recognizes tax liabilities for uncertain tax positions based on management’s estimate of whether
it is more likely than not that additional taxes will be required. The Company had no uncertain tax positions as of April 30, 2019
and 2018. Deferred income taxes are
recognized in the consolidated financial statements for the tax consequences in future years of differences between the tax basis
of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates. Temporary differences
arise from net operating losses, differences in depreciation methods of archived images, and property and equipment, stock-based
and other compensation, and other accrued expenses. A valuation allowance is established when it is determined that it is more
likely than not that some or all of the deferred tax assets will not be realized. The application of tax laws
and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are
subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings.
Therefore, the actual liability for U.S., or the various state jurisdictions, may be materially different from management’s
estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities.
Interest and penalties are included in tax expense. The Company includes
interest and penalties arising from the underpayment of income taxes in the statements of operation in the provision for income
taxes. As of April 30, 2019, and 2018, the Company had no accrued interest or penalties related to uncertain tax positions. 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 The Company does not hold any inventory as assets. All
inventory in operations is owned by the shipper. Revenue Recognition The Company recognizes revenue related
to product sales when (i) the seller’s price is substantially fixed, (ii) shipment has occurred causing the buyer to be
obligated to pay for product, (iii) the buyer has economic substance apart from the seller, and (iv) there is no significant obligation
for future performance to directly bring about the resale of the product by the buyer as required by ASC 605 – Revenue Recognition. In May 2014, the FASB issued ASU 2014-09 “Revenue
from Contracts with Customers” (Topic 606) which establishes revenue recognition standards. ASU 2014-09 was effective for
annual reporting periods beginning after December 15,2017. We adopted ASU 2014-09 effective August 1, 2018. ASU 2014-09 has not
had a significant effect on the Company’s financial position and results of operations. |
