Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Oct. 31, 2017 | Dec. 13, 2017 | |
Document and Entity Information: | ||
Entity Registrant Name | Concrete Leveling Systems Inc | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2017 | |
Trading Symbol | clev | |
Amendment Flag | false | |
Entity Central Index Key | 1,414,382 | |
Current Fiscal Year End Date | --07-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 14,027,834 | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Balance Sheets
Balance Sheets - USD ($) | Oct. 31, 2017 | Jul. 31, 2017 |
Current Assets | ||
Cash in bank | $ 64 | |
Accounts receivable | 265 | 93 |
Current portion of notes receivable, net of allowance for loan losses of $4,646 and $4,078 at October 31 and July 31, 2017 | ||
Interest receivable, net of collectability allowance of $1,596 and $1,267 at October 31 and July 31, 2017 | 177 | 141 |
Inventory | 23,598 | 23,688 |
Prepaid expenses and other current assets | 200 | |
Total Current Assets | 24,104 | 24,122 |
Property, Plant and Equipment | ||
Equipment | 700 | 700 |
Less: Accumulated depreciation | (700) | (700) |
Total Property, Plant and Equipment | ||
Other Assets | ||
Notes receivable, net of allowance for loan losses of $19,156 and $19,724 at October 31 and July 31, 2017 | 2,644 | 2,644 |
Total Assets | 26,748 | 26,766 |
Current Liabilities | ||
Cash overdraft | 20 | |
Accounts payable | 40,843 | 44,420 |
Accounts payable - stockholders | 61,395 | 35,486 |
Advances - stockholders | 118,000 | 117,000 |
Notes payable - stockholders | 62,750 | 62,750 |
Accrued interest - stockholders | 15,139 | 15,139 |
Other accrued expenses | 17,554 | 16,857 |
Total Current Liabilities | 315,681 | 291,672 |
Stockholders’ Equity (Deficit) | ||
Common stock (par value $0.001) 100,000,000 shares authorized: 14,027,834 shares issued and outstanding at October 31 and July 31, 2017 | 14,027 | 14,027 |
Additional paid-in capital | 397,723 | 397,723 |
Accumulated deficit | (700,683) | (676,656) |
Total Stockholders’ Deficit | (288,933) | (264,906) |
Total Liabilities and Stockholders’ Deficit | $ 26,748 | $ 26,766 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Oct. 31, 2017 | Jul. 31, 2017 |
Balance Sheets Parenthetical | ||
Net of allowance for loan losses | $ 4,646 | $ 4,078 |
Interest receivable, net of collectability allowance | 1,596 | 1,267 |
Notes receivable, net of allowance for loan losses | $ 19,156 | $ 19,724 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 14,027,834 | 14,027,834 |
Common stock, outstanding | 14,027,834 | 14,027,834 |
Statements of Income (Unaudited
Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Statements Of Income | ||
Equipment and parts sales | $ 265 | |
Cost of Sales | 90 | |
Gross Margin | 175 | |
Expenses | ||
Selling, general and administrative | 24,311 | 20,250 |
Loss from Operations | (24,136) | (20,250) |
Other Income (Expense) | ||
Interest income | 366 | 397 |
Interest expense | (257) | (242) |
Total Other Income (Expense) | 109 | 155 |
Net Loss Before Income Taxes | (24,027) | (20,095) |
Provision for Income Taxes | 0 | |
Net Loss | $ (24,027) | $ (20,095) |
Net Loss per Share - Basic and Fully Diluted | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and fully diluted | 6,395,418 | 6,395,418 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Cash Flows from Operating Activities | ||
Net loss | $ (24,027) | $ (20,095) |
Adjustments to reconcile net (loss) to net cash used in operating activities: | ||
Increase in allowances for interest collectability | 329 | |
(Increase) Decrease in accounts receivable | (172) | 217 |
(Increase) in interest receivable | (365) | (129) |
Decrease in inventory | 90 | |
(Increase) Decrease in prepaid expenses and other current assets | 200 | (2,529) |
Increase in accounts payable | 22,332 | 6,909 |
Increase in other accrued expenses | 697 | 1,262 |
Net cash (used by) operating activities | (916) | (14,365) |
Cash Flows from Investing Activities | ||
Payments on notes receivable | 332 | |
Cash Flows from Financing Activities | ||
Advances from stockholders | 1,000 | 14,750 |
Net increase in cash | 84 | 717 |
Cash and equivalents - beginning | (20) | 104 |
Cash and equivalents - ending | 64 | 821 |
Supplemental Disclosure of Cash Flows Information | ||
Interest | 257 | 242 |
Income Taxes |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
NOTE 1 - NATURE OF BUSINESS AND 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 Companys management, which is responsible for their integrity and objectivity. These accounting policies conform to Nature of Operations The Company manufactures for sale specialized equipment for use in the concrete leveling industry. The Companys product is sold primarily to end users. On March 24, 2017, the Company entered into an agreement with Jericho Associates, Inc. (Jericho), a start-up company which plans to operate in the gaming, hospitality and entertainment industries. The Company issued Jericho 7,151,416 shares of the Companys common stock, subject to a performance requirement, which provides that by March 1, 2018, if the management of Jericho does not identify at least one entity or business opportunity for acquisition, in order to supplement the Companys current business operations, the shares issued as part of the agreement shall be returned to the Company. As of October 31, 2017, no acquisition has been identified in accordance with the agreement and the shares issued to Jericho are still contingent on the terms of the agreement. In July 2017, and additional 481,000 shares were issued to shareholders of Jericho under the same contingencies as the original shares. On September 22, 2017, the Company and Jericho mutually agreed to extend the performance requirement until December 24, 2017. On November 9, 2017, the Company and Jericho mutually agreed to extend the performance requirement to March 1, 2018. Upon the successful completion of an acquisition of an entity or business opportunity, the Companys President will cancel all shares of common stock held (879,167 shares as of October 31, 2017), the Companys Chief Executive Officer will cancel all but 424,000 shares of common stock held (2,951,667 shares of as October 31, 2017), subject to an 18-month non-dilution right in order to maintain an ownership percentage of 4.99%, and the Companys Secretary will cancel all but 45,000 shares of common stock held (185,000 shares as of October 31, 2017). Under ASC 718-10-25-20, there is no accounting related to the potential acquisition other than the issuance of the contingent shares at par value because the performance measure is the acquisition of a company. The achievement of this measure is not probable until the business is acquired. Revenue Recognition The Company recognizes revenue when product is shipped or picked up by the customer. Earnings Per Share Contingent shares are excluded from basic weighted average shares (ASC 260-10-45-13) and a two-class presentation of EPS is not applicable when a company is reporting a loss (ASC 260-10-45-67); therefore, the contingent shares are included in dilutive weighted average shares. Because the Company is reporting a loss, the Company will only report basic EPS and the contingent shares, along with the cancellation of shares by management, will be excluded from the computation. 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 $0 at October 31 and July 31, 2017. 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. Advertising and Marketing Advertising and marketing costs are charged to operations when incurred. Advertising costs were $1,769 and $-0- for the three months ended October 31, 2017, and 2016. 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 October 31, 2017, current liabilities exceed current assets by $291,577, and total liabilities exceed total assets by $288,933. 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. Success will be dependent upon managements ability to obtain future financing and liquidity, and success of its future operations. These factors raise substantial doubt about the Companys 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 | 3 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
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 | 3 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
NOTE 3 - NEW ACCOUNTING PROCEDURES | There are no new accounting procedures that impact the Company. |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 3 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
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 | 3 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
NOTE 5 - NOTES RECEIVABLE | The interest rate on the note receivable is 6.00% and is due in April 2026. 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 $25,398 and $25,069 at October 31 and July 31, 2017, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
NOTE 6 - INCOME TAXES | Income taxes on continuing operations include the following: October 31, 2017 July 31, 2017 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 is as follows: October 31, 2017 July 31, 2017 % 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 (8,100 ) (34 ) (13,400 ) (34 ) Income taxes at statutory rate $ (8,100 ) (34 )% $ (13,400 ) (34 )% The components of and changes in the net deferred taxes were as follows: Deferred tax assets: October 31, 2017 July 31, 2017 Net operating loss carryforwards $ 189,700 $ 181,400 Allowances for uncollectable accounts 8,900 8,800 Compensation and miscellaneous 5,300 5,300 Deferred tax assets 203,900 195,500 Valuation Allowance (203,900 ) (195,500 ) Net deferred tax assets: $ -0- $ -0- Tax periods ended July 31, 2014 through 2017 are subject to examination by major taxing authorities. |
RELATED PARTIES
RELATED PARTIES | 3 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
NOTE 7 - 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 Companys stockholders. The agreement gives the related party exclusive distribution rights for the Companys products. Commission expense totaled $-0- for the three months ended October 31, 2017 and 2016. The amount payable to the related party was $35,486 at October 31 and July 31, 2017. 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 October 31 and July 31, 2017. Effective July 31, 2013, further interest accrual was waived by the noteholders. Two stockholders of the Company advanced a total of $118,000 to the Company at various times between November 2012 and October 2017. The balances on the advances are $118,000 and $117,000 at October 31 and July 31, 2017, respectively. The advances carry no interest. Another stockholder of the Company paid invoices of the Company totaling $25,909 during the three months ended October 31, 2017. This is amount is still owed to the stockholder at October 31, 2017. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
NOTE 8 - SUBSEQUENT EVENTS | The Company has evaluated all subsequent events through December 11, 2017, the date the financial statements were available to be issued. There are no events to report. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Oct. 31, 2017 | |
Summary Of Significant Accounting Policies Policies | |
Nature of Operations | The Company manufactures for sale specialized equipment for use in the concrete leveling industry. The Companys product is sold primarily to end users. On March 24, 2017, the Company entered into an agreement with Jericho Associates, Inc. (Jericho), a start-up company which plans to operate in the gaming, hospitality and entertainment industries. The Company issued Jericho 7,151,416 shares of the Companys common stock, subject to a performance requirement, which provides that by March 1, 2018, if the management of Jericho does not identify at least one entity or business opportunity for acquisition, in order to supplement the Companys current business operations, the shares issued as part of the agreement shall be returned to the Company. As of October 31, 2017, no acquisition has been identified in accordance with the agreement and the shares issued to Jericho are still contingent on the terms of the agreement. In July 2017, and additional 481,000 shares were issued to shareholders of Jericho under the same contingencies as the original shares. On September 22, 2017, the Company and Jericho mutually agreed to extend the performance requirement until December 24, 2017. On November 9, 2017, the Company and Jericho mutually agreed to extend the performance requirement to March 1, 2018. Upon the successful completion of an acquisition of an entity or business opportunity, the Companys President will cancel all shares of common stock held (879,167 shares as of October 31, 2017), the Companys Chief Executive Officer will cancel all but 424,000 shares of common stock held (2,951,667 shares of as October 31, 2017), subject to an 18-month non-dilution right in order to maintain an ownership percentage of 4.99%, and the Companys Secretary will cancel all but 45,000 shares of common stock held (185,000 shares as of October 31, 2017). Under ASC 718-10-25-20, there is no accounting related to the potential acquisition other than the issuance of the contingent shares at par value because the performance measure is the acquisition of a company. The achievement of this measure is not probable until the business is acquired. |
Revenue Recognition | The Company recognizes revenue when product is shipped or picked up by the customer. |
Earnings Per Share | Contingent shares are excluded from basic weighted average shares (ASC 260-10-45-13) and a two-class presentation of EPS is not applicable when a company is reporting a loss (ASC 260-10-45-67); therefore, the contingent shares are included in dilutive weighted average shares. Because the Company is reporting a loss, the Company will only report basic EPS and the contingent shares, along with the cancellation of shares by management, will be excluded from the computation. |
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 $0 at October 31 and July 31, 2017. |
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. |
Advertising and Marketing | Advertising and marketing costs are charged to operations when incurred. Advertising costs were $1,769 and $-0- for the three months ended October 31, 2017, and 2016. |
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 October 31, 2017, current liabilities exceed current assets by $291,577, and total liabilities exceed total assets by $288,933. 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. Success will be dependent upon managements ability to obtain future financing and liquidity, and success of its future operations. These factors raise substantial doubt about the Companys ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Oct. 31, 2017 | |
Income Taxes Tables | |
Schedule of Income taxes on continuing operations | October 31, 2017 July 31, 2017 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 | October 31, 2017 July 31, 2017 % 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 (8,100 ) (34 ) (13,400 ) (34 ) Income taxes at statutory rate $ (8,100 ) (34 )% $ (13,400 ) (34 )% |
Schedule of Components of and changes in the net deferred taxes | October 31, 2017 July 31, 2017 Net operating loss carryforwards $ 189,700 $ 181,400 Allowances for uncollectable accounts 8,900 8,800 Compensation and miscellaneous 5,300 5,300 Deferred tax assets 203,900 195,500 Valuation Allowance (203,900 ) (195,500 Net deferred tax assets: $ -0- $ -0- |
NATURE OF BUSINESS AND SUMMAR16
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Mar. 24, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2017 | |
Date of acquisition agreement | Mar. 24, 2017 | |||
Common stock shares issued | 14,027,834 | 14,027,834 | ||
Allowance for doubtful accounts | $ 0 | $ 0 | ||
Advertising costs | 1,769 | $ 0 | ||
Current liabilities exceeding current assets | 291,577 | |||
Total liabilities exceed current assets | $ 288,933 | |||
Jericho [Member] | ||||
Common stock shares issued | 7,151,416 | 481,000 | ||
Secretary [Member] | ||||
Common stock held | 185,000 | |||
Business acquisition, remaining common stock held, number of shares | 45,000 | |||
CEO [Member] | ||||
Common stock held | 2,951,667 | |||
Business acquisition, remaining common stock held, number of shares | 424,000 | |||
Non-dilution period | 18 months | |||
Ownership percentage | 4.99% | |||
President [Member] | ||||
Common stock held | 879,167 |
NOTES RECEIVABLE (Details Narra
NOTES RECEIVABLE (Details Narrative) - USD ($) | 3 Months Ended | |
Oct. 31, 2017 | Jul. 31, 2017 | |
Notes Receivable Details Narrative | ||
Interest rate | 6.00% | |
Due date description | April 2,026 | |
Allowance for loan losses and uncollectable interest income | $ 25,398 | $ 25,069 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jul. 31, 2017 | |
Income Taxes Details | ||
Currently payable | $ 0 | $ 0 |
Deferred | 0 | 0 |
Total | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jul. 31, 2017 | |
Income Taxes Details 1 | ||
Income taxes per statement of operations (Income) | $ 0 | $ 0 |
Loss for financial reporting purposes without tax expense or benefit (Income) | (8,100) | (13,400) |
Income taxes at statutory rate (Income) | $ (8,100) | $ (13,400) |
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%) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Oct. 31, 2017 | Jul. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 189,700 | $ 181,400 |
Allowances for uncollectable accounts | 8,900 | 8,800 |
Compensation and miscellaneous | 5,300 | 5,300 |
Deferred tax assets | 203,900 | 195,500 |
Valuation Allowance | (203,900) | (195,500) |
Net deferred tax assets: | $ 0 | $ 0 |
RELATED PARTIES (Details Narrat
RELATED PARTIES (Details Narrative) | 3 Months Ended | ||
Oct. 31, 2017USD ($)Number | Oct. 31, 2016USD ($) | Jul. 31, 2017USD ($) | |
Commission expense | $ 0 | $ 0 | |
Payable to related party | 35,486 | $ 35,486 | |
Notes payable - stockholders | 62,750 | 62,750 | |
Advances - stockholders | $ 118,000 | $ 117,000 | |
Minimum [Member] | |||
Interest rate | 8.00% | ||
Maximum [Member] | |||
Interest rate | 12.00% | ||
Stockholders [Member] | |||
Invoices payment to related party | $ 25,909 | ||
Stockholders [Member] | November 2012 and October 2017 [Member] | |||
Advances - stockholders | $ 118,000 | ||
Number of stockholders | Number | 2 | ||
Stockholders [Member] | July 31, 2010 through 2012 [Member] | |||
Notes payable - stockholders | $ 62,750 | ||
Number of stockholders | Number | 4 |