Concrete Leveling Systems (CLEV) 10-K 26 Oct 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jul. 31, 2015	Oct. 21, 2015	Jan. 31, 2015
Document and Entity Information:
Entity Registrant Name	Concrete Leveling Systems Inc
Entity Trading Symbol	clev
Document Type	10-K
Document Period End Date	Jul. 31, 2015
Amendment Flag	false
Entity Central Index Key	1,414,382
Current Fiscal Year End Date	--07-31
Entity Common Stock, Shares Outstanding		6,395,418
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Public Float			$ 283,726

Balance Sheets

Balance Sheets - USD ($)	Jul. 31, 2015	Jul. 31, 2014
CURRENT ASSETS
Cash in bank	$ 116	$ 593
Accounts receivable, net of allowance for doubtful accounts of $4,046 and $2,248 at July 31, 2015 and 2014	449	2,727
Current portion of notes receivable, net of allowance for loan losses of $39,050 and $29,325 at July 31, 2015 and 2014	13,423	13,087
Interest receivable, net of collectability allowance of $3,922 and $2,185 at July 31, 2015 and 2014	1,910	2,288
Inventory	17,379	15,596
Prepaid expenses and other current assets	352	436
Total Current Assets	33,629	34,727
PROPERTY, PLANT AND EQUIPMENT
Equipment	700	700
Less: Accumulated depreciation	(700)	(700)
Total Property, Plant and Equipment	0	0
OTHER ASSETS
Notes receivable, net of current portion	5,618	17,271
Deposits	0	10
Total Other Assets	5,618	17,281
TOTAL ASSETS	39,247	52,008
CURRENT LIABILITIES
Accounts payable	36,317	30,923
Accounts payable - stockholders	35,654	36,074
Advances - stockholders	74,300	49,600
Notes payable - stockholders	62,750	62,750
Accrued interest - stockholders	15,139	15,139
Other accrued expenses	12,350	8,529
Total Current Liabilities	236,510	203,015
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock (par value $0.001) 100,000,000 shares authorized: 6,395,418 shares issued and outstanding at July 31, 2015 and 2014	6,395	6,395
Additional paid-in capital	405,355	405,355
Retained (deficit)	(609,013)	(562,757)
Total Stockholders' (Deficit)	(197,263)	(151,007)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)	$ 39,247	$ 52,008

Balance Sheets Parentheticals

Balance Sheets Parentheticals - USD ($)	Jul. 31, 2015	Jul. 31, 2014
Parentheticals
Allowance for doubtful accounts	$ 4,046	$ 2,248
Allowance for loan allowances	39,050	29,325
Interest receivable collectability allowance	$ 3,922	$ 2,185
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	6,395,418	6,395,418
Common Stock, shares outstanding	6,395,418	6,395,418

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Revenues:
Parts sales	$ 545	$ 480
Cost of Sales	308	210
Gross Margin	237	270
Expenses
Selling, general and administrative	47,388	65,525
(Loss) from Operations	(47,151)	(65,255)
Other Income (Expense)
Interest income	1,822	2,913
Interest expense	(927)	(862)
Total Other Income (Expense)	895	2,051
Net (Loss) Before Income Taxes	(46,256)	(63,204)
Provision for Income Taxes	0	0
Net (Loss)	$ (46,256)	$ (63,204)
Net (Loss) per Share - Basic and Fully Diluted	$ (0.01)	$ (0.01)
Weighted average number of common shares outstanding - basic and fully diluted	6,395,418	6,395,418

Statements of Stockholders' Equ

Statements of Stockholders' Equity (Deficit) - USD ($)	Issued Shares	Par Value	Additional paid-in capital	Accumulated (Deficit)	Total Stockholders' Equity (Deficit)
Balance at Jul. 31, 2013	6,395,418	6,395	405,355	(499,553)	(87,803)
Net (Loss)	$ 0	$ 0	$ 0	$ (63,204)	$ (63,204)
Balance. at Jul. 31, 2014	6,395,418	6,395	405,355	(562,757)	(151,007)
Net (Loss)	$ 0	$ 0	$ 0	$ (46,256)	$ (46,256)
Balance, at Jul. 31, 2015	6,395,418	6,395	405,355	(609,013)	(197,263)

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)	$ (46,256)	$ (63,204)
Adjustments to reconcile net (loss) to net cash used in operating activities:
Allowance for loan losses	9,725	29,325
Allowance for doubtful accounts	1,798	2,248
Allowance for uncollectable interest	1,737	2,185
Decrease (Increase) in accounts receivable	480	(480)
(Increase) in interest receivable	(1,359)	(2,026)
(Increase) in inventory	(1,783)	(14,526)
Decrease (Increase) in prepaid expenses	84	(436)
Decrease in deposits	10	12,000
Increase (Decrease) in accounts payable	4,974	(5,527)
Increase in other accrued expenses	3,821	496
Net cash (used in) operating activities	(26,769)	(39,945)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments on notes receivable	1,592	3,767
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from stockholders	24,700	34,600
Net (decrease) in cash	(477)	(1,578)
Cash and equivalents - beginning	593	2,171
Cash and equivalents - ending	116	593
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Interest	927	862
Income taxes	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jul. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies of Concrete Leveling Systems, Inc. (hereinafter the "Company"), is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. NATURE OF OPERATIONS The Company manufactures for sale specialized equipment for use in the concrete leveling industry. The Company's product is sold primarily to end users. REVENUE RECOGNITION The Company recognizes revenue when product is shipped or picked up by the customer. ACCOUNTS RECEIVABLE The Company grants credit to its customers in the ordinary course of business. The Company provides for an allowance for uncollectable receivables based on prior experience. The allowance was $4,046 and $2,248 at July 31, 2015 and 2014, respectively. ADVERTISING AND MARKETING Advertising and marketing costs are charged to operations when incurred. Advertising costs were $-0- and $550 for the years ended July 31, 2015, and 2014, respectively. INVENTORIES Inventories, which consist of parts and work in progress, are recorded at the lower of first-in first-out cost or fair market value. USE OF ESTIMATES The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. GOING CONCERN The Company was formed on August 28, 2007 and was in the development stage through July 31, 2009. The year ended July 31, 2010 was the first year during which it was considered an operating company. The Company has sustained substantial operating losses since its inception. In addition, the Company has used substantial amounts of working capital in its operations. Further, at July 31, 2015, current liabilities exceed current assets by $202,881, and total liabilities exceed total assets by $197,263. The Company is of the opinion that funds being received from installment sales of its service units will provide a certain level of cash flow. However, in order to fabricate an improved 2016 model service unit, the Company has found it necessary to borrow funds to purchase the components. Success will be dependent upon management's ability to obtain future financing and liquidity, and success of its future operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Jul. 31, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 2 - FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amount of cash, accounts receivable and liabilities approximates the fair value reported on the balance sheet.

NEW ACCOUNTING PROCEDURES

NEW ACCOUNTING PROCEDURES	12 Months Ended
	Jul. 31, 2015
NEW ACCOUNTING PROCEDURES:
NEW ACCOUNTING PROCEDURES	NOTE 3 - NEW ACCOUNTING PROCEDURES There are no new accounting procedures that impact the Company.

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT	12 Months Ended
	Jul. 31, 2015
PROPERTY, PLANT, AND EQUIPMENT:
PROPERTY, PLANT, AND EQUIPMENT	NOTE 4 - PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment are recorded at cost. Depreciation is provided for by using the straight-line and accelerated methods over the estimated useful lives of the respective assets. Maintenance and repairs are charged to expense as incurred. Major additions and betterments are capitalized. When items of property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the determination of net income.

NOTES RECEIVABLE

NOTES RECEIVABLE	12 Months Ended
	Jul. 31, 2015
NOTES RECEIVABLE
NOTES RECEIVABLE	NOTE 5 - NOTES RECEIVABLE The Company has three notes receivable totaling $37,072 and $37,843 at July 31, 2015 and 2014, respectively. The notes each carry an interest rate of 6.00% and are due at varying dates between November 2013 and March 2016. The notes are secured by equipment. The Company has an additional note receivable in the amount of $21,019 and $21,840 at July 31, 2015 and 2014, respectively. This note carries an interest rate of 8.00%. The note is secured by equipment. Management has established an estimated allowance for loan losses and uncollectable interest income based on its experience with specific debtors, including payment history, condition and location of collateral, and estimated cost of resale. The allowances totaled $42,972 and $31,510 at July 31, 2015 and 2014 respectively.

OPERATING SEGMENT

OPERATING SEGMENT	12 Months Ended
	Jul. 31, 2015
OPERATING SEGMENT:
OPERATING SEGMENT	NOTE 6 - OPERATING SEGMENT The Company operates in one reportable segment, concrete leveling systems sales.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jul. 31, 2015
INCOME TAXES
INCOME TAXES	NOTE 7 - INCOME TAXES Income taxes on continuing operations at July 31 include the following: 2015 2014 -------- -------- Currently payable $ 0 $ 0 Deferred 0 0 -------- -------- Total $ 0 $ 0 ======== ======== A reconciliation of the effective tax rate with the statutory U.S. income tax rate at July 31 is as follows: 2015 2014 ------------------- ------------------ % of % of Pretax Pretax Income Amount Income Amount ------ ------ ------ ------ Income taxes per statement of operations $ 0 0% $ 0 0% Loss for financial reporting purposes without tax expense or benefit (11,400) (34) (21,500) (34) -------- ------ -------- ------ Income taxes at statutory rate $(11,400) (34)% $(21,500) (34)% ======== ====== ======== ====== The components of and changes in the net deferred taxes were as follows: 2015 2014 ---------- ---------- Deferred tax assets: Net operating loss carryforwards $ 145,700 $ 134,400 Allowances for uncollectable accounts 15,900 11,400 Compensation and miscellaneous 17,100 17,300 ---------- ---------- Deferred tax assets 178,700 163,100 ---------- ---------- Valuation Allowance (178,700) (163,100) ---------- ---------- Net deferred tax assets: $ 0 $ 0 ========== ========== Deferred taxes are provided for temporary differences in deducting expenses for financial statement and tax purposes. The principal source for deferred tax assets are net operating loss carryforwards and accrued compensation. No deferred taxes are reflected in the balance sheet at July 31, 2015 or 2014 due to a valuation allowance, which increased by $15,600 and $21,400 in 2015 and 2014, respectively. The Company has incurred losses that can be carried forward to offset future earnings if conditions of the Internal Revenue Code are met. These losses are as follows: Expiration Year of Loss Amount Date ------------ -------- --------- Period Ended July 31, 2008 $ 62,107 2/28/2029 Period Ended July 31, 2009 $ 68,766 2/28/2030 Period Ended July 31, 2010 $ 25,311 2/28/2031 Period Ended July 31, 2011 $ 96,481 2/28/2032 Period Ended July 31, 2012 $113,260 2/28/2033 Period Ended July 31, 2014 $ 29,399 2/28/2035 Period Ended July 31, 2015 $ 33,483 2/28/2036 Tax periods ended July 31, 2012 through 2015 are subject to examination by major taxing authorities. There are no interest or tax penalty expenses reflected in the Balance Sheets or Statements of Operations.

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Jul. 31, 2015
RELATED PARTIES:
RELATED PARTIES	NOTE 8 - RELATED PARTIES The Company uses warehouse and office space belonging to one of its stockholders. The stockholder does not charge the Company rent or other fees for the use of these facilities. On July 31, 2009 the Company entered into a distribution agreement with another company owned by one of the Company's stockholders. The agreement gives the related party exclusive distribution rights for the Company's products. Commission expense totaled $-0- for the years ended July 31, 2015 and 2014. The amount payable to the related party was $35,654 and $36,074 at July 31, 2015 and 2014. Four stockholders of the Company loaned a total of $62,750 to the Company at various times during the years ended July 31, 2010 through 2012. The loans carry interest rates from 8.00% to 12.00% and are due on demand. The balances on the loans are $62,750 at both July 31, 2015 and 2014. Effective July 31, 2013, further interest accrual was waived by the noteholders. Two stockholders of the Company advanced a total of $74,300 to the Company at various times between November 2012 and July 2015. The balances on the advances are $74,300 and $49,600 at July 31, 2015 and 2014, respectively. The advances carry no interest.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Jul. 31, 2015
SUBSEQUENT EVENTS:
SUBSEQUENT EVENTS	NOTE 9 - SUBSEQUENT EVENTS The Company has evaluated all subsequent events through October 21, 2015, the date the financial statements were available to be issued. There are no events to report.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jul. 31, 2015
Accounting Policies:
NATURE OF OPERATIONS	NATURE OF OPERATIONS The Company manufactures for sale specialized equipment for use in the concrete leveling industry. The Company's product is sold primarily to end users.
REVENUE RECOGNITION	ACCOUNTS RECEIVABLE The Company grants credit to its customers in the ordinary course of business. The Company provides for an allowance for uncollectable receivables based on prior experience. The allowance was $4,046 and $2,248 at July 31, 2015 and 2014, respectively.
ACCOUNTS RECEIVABLE	REVENUE RECOGNITION The Company recognizes revenue when product is shipped or picked up by the customer.
ADVERTISING AND MARKETING	ADVERTISING AND MARKETING Advertising and marketing costs are charged to operations when incurred. Advertising costs were $-0- and $550 for the years ended July 31, 2015, and 2014, respectively.
INVENTORIES	INVENTORIES Inventories, which consist of parts and work in progress, are recorded at the lower of first-in first-out cost or fair market value.
USE OF ESTIMATES	USE OF ESTIMATES The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.
GOING CONCERN	GOING CONCERN The Company was formed on August 28, 2007 and was in the development stage through July 31, 2009. The year ended July 31, 2010 was the first year during which it was considered an operating company. The Company has sustained substantial operating losses since its inception. In addition, the Company has used substantial amounts of working capital in its operations. Further, at July 31, 2015, current liabilities exceed current assets by $202,881, and total liabilities exceed total assets by $197,263. The Company is of the opinion that funds being received from installment sales of its service units will provide a certain level of cash flow. However, in order to fabricate an improved 2016 model service unit, the Company has found it necessary to borrow funds to purchase the components. Success will be dependent upon management's ability to obtain future financing and liquidity, and success of its future operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

SCHEDULE OF INCOME TAX EXPENSE

SCHEDULE OF INCOME TAX EXPENSE BENEFIT (Tables)	12 Months Ended
	Jul. 31, 2015
SCHEDULE OF INCOME TAX EXPENSE BENEFIT (Tables):
Schedule of Income taxes on continuing operations	Income taxes on continuing operations at July 31 include the following: 2015 2014 -------- -------- Currently payable $ 0 $ 0 Deferred 0 0 -------- -------- Total $ 0 $ 0 ======== ========
Schedule of reconciliation of the effective tax rate with the statutory U.S. income tax	A reconciliation of the effective tax rate with the statutory U.S. income tax rate at July 31 is as follows: 2015 2014 ------------------- ------------------ % of % of Pretax Pretax Income Amount Income Amount ------ ------ ------ ------ Income taxes per statement of operations $ 0 0% $ 0 0% Loss for financial reporting purposes without tax expense or benefit (11,400) (34) (21,500) (34) -------- ------ -------- ------ Income taxes at statutory rate $(11,400) (34)% $(21,500) (34)% ======== ====== ======== ======
Schedule of components of and changes in the net deferred taxes	The components of and changes in the net deferred taxes were as follows: 2015 2014 ---------- ---------- Deferred tax assets: Net operating loss carryforwards $ 145,700 $ 134,400 Allowances for uncollectable accounts 15,900 11,400 Compensation and miscellaneous 17,100 17,300 ---------- ---------- Deferred tax assets 178,700 163,100 ---------- ---------- Valuation Allowance (178,700) (163,100) ---------- ---------- Net deferred tax assets: $ 0 $ 0 ========== ==========
Schedule of losses that can be carried forward to offset future earnings	The Company has incurred losses that can be carried forward to offset future earnings if conditions of the Internal Revenue Code are met. These losses are as follows: Expiration Year of Loss Amount Date ------------ -------- --------- Period Ended July 31, 2008 $ 62,107 2/28/2029 Period Ended July 31, 2009 $ 68,766 2/28/2030 Period Ended July 31, 2010 $ 25,311 2/28/2031 Period Ended July 31, 2011 $ 96,481 2/28/2032 Period Ended July 31, 2012 $113,260 2/28/2033 Period Ended July 31, 2014 $ 29,399 2/28/2035 Period Ended July 31, 2015 $ 33,483 2/28/2036

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Accounts Receivable Details:
Allowance for uncollectable receivables	$ 4,046	$ 2,248
Advertising and marketing Details:
Advertising costs for the period	0	$ 550
Going Concern Details:
Current liabilities exceed current assets	202,881
Total liabilities exceed total assets	$ 197,263

NOTES RECEIVABLE (Details)

NOTES RECEIVABLE (Details) - USD ($)	Jul. 31, 2015	Jul. 31, 2014
Notes Receivable Details
Three notes	$ 37,072	$ 37,843
Interest rate on the notes	6.00%	6.00%
Additional note receivable	$ 21,019	$ 21,840
Interest rate on the additional note	8.00%	8.00%
Allowance for loan losses and uncollectable interest	$ 42,972	$ 31,510

RECONCILIATION OF EFFECTIVE TAX

RECONCILIATION OF EFFECTIVE TAX RATE (Details) - USD ($)	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Reconcilaition of effective tax rate Details
Income taxes per statement of operations (Income)	$ 0	$ 0
Loss for financial reporting purposes without tax expense or benefit (Income)	(11,400)	(21,500)
Income taxes at statutory rate (Income)	$ (11,400)	$ (21,500)

RECONCILIATION OF EFFECTIVE T21

RECONCILIATION OF EFFECTIVE TAX RATE PERCENT (Details)	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Reconcilaition of effective tax rate percent Details
Income taxes per statement of operations (% of Pretax Amount)	0.00%	0.00%
Loss for financial reporting purposes without tax expense or benefit (% of Pretax Amount)	(34.00%)	(34.00%)
Income taxes at statutory rate (% of Pretax Amount)	(34.00%)	(34.00%)

COMPONENTS OF AND CHANGES IN NE

COMPONENTS OF AND CHANGES IN NET DEFERRED TAXES (Details) - USD ($)	Jul. 31, 2015	Jul. 31, 2014
Deferred tax assets:
Net operating loss carryforwards	$ 145,700	$ 134,400
Allowances for uncollectable accounts	15,900	11,400
Compensation and miscellaneous	17,100	17,300
Deferred tax assets	178,700	163,100
Valuation Allowance	(178,700)	(163,100)
Net deferred tax assets:	$ 0	$ 0

COMPONENTS OF AND CHANGES IN 23

COMPONENTS OF AND CHANGES IN NET DEFERRED TAXES NARRATIVE (Details) - USD ($)	Jul. 31, 2015	Jul. 31, 2014
Components of and changes in the net deferred taxes (Details)
Increase in valuation allowance	$ 15,600	$ 21,400

LOSSES CARRIED FORWARD TO OFFSE

LOSSES CARRIED FORWARD TO OFFSET FUTURE EARNINGS AS FOLLOWS (Details)	Jul. 31, 2015USD ($)
Losses carried forward to offset future earnings follows:
Year of Loss July 31, 2008 Expiration Date February 28, 2029	$ 62,107
Year of Loss July 31, 2009 Expiration Date February 28, 2030	68,766
Year of Loss July 31, 2010 Expiration Date February 28, 2031	25,311
Year of Loss July 31, 2011 Expiration Date February 28, 2032	96,481
Year of Loss July 31, 2012 Expiration Date February 28, 2033	113,260
Year of Loss July 31, 2014 Expiration Date February 28, 2035	29,399
Year of Loss July 31, 2015 Expiration Date February 28, 2036	$ 33,483

RELATED PARTIES (Details)

RELATED PARTIES (Details) - USD ($)	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Related Parties Details
Commission expense	$ 0	$ 0
Accounts payable - stockholders	35,654	36,074
Loan provided by 4 stockholders during the years ended July 31, 2010 through 2012	$ 62,750
Interest rate range minimum	8.00%
Interest rate range maximum	12.00%
Notes payable - stockholders	$ 62,750	62,750
Advances by two stockholders between November 2012 and July 2015	74,300
Advances - stockholders	$ 74,300	$ 49,600