Cover
Cover - shares | 9 Months Ended | |
Apr. 30, 2021 | Jun. 01, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Concrete Leveling Systems Inc, | |
Entity Central Index Key | 0001414382 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Apr. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 14,027,834 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Current Assets | ||
Cash | $ 691 | $ 1,049 |
Accounts receivable, net | 0 | 140 |
Inventory | 24,642 | 24,835 |
Prepaid expenses and other current assets | 1,462 | 913 |
Total Current Assets | 26,795 | 26,937 |
Property, Plant and Equipment | ||
Equipment | 700 | 700 |
Less: Accumulated depreciation | (700) | (700) |
Total Property, Plant and Equipment, net | 0 | 0 |
Total Assets | 26,795 | 26,937 |
Current Liabilities | ||
Accounts payable | 16,836 | 16,836 |
Accrued interest - stockholders | 18,141 | 15,139 |
Other accrued expenses | 8,469 | 9,140 |
Advances - stockholders | 500 | 268,834 |
Notes payable - stockholders | 366,042 | 62,750 |
Total Current Liabilities | 409,988 | 372,699 |
Commitments and Contingencies (Note 5) | 0 | 0 |
Stockholders' Deficit | ||
Common stock (par value $0.001) 100,000,000 shares authorized: 14,027,834 shares issued and outstanding | 14,027 | 14,027 |
Additional paid-in capital | 433,209 | 433,209 |
Accumulated deficit | (830,429) | (792,998) |
Total Stockholders' Deficit | (383,193) | (345,762) |
Total Liabilities and Stockholders' Deficit | $ 26,795 | $ 26,937 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2021 | Jul. 31, 2020 |
Stockholders' Deficit | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 14,027,834 | 14,027,834 |
Common stock, shares outstanding | 14,027,834 | 14,027,834 |
STATEMENTS OF OPERATIONS (UNAUD
STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
Equipment and parts sales | $ 1,790 | $ 300 | $ 2,265 | $ 575 |
Cost of sales | 995 | 71 | 1,169 | 171 |
Gross margin | 795 | 229 | 1,096 | 404 |
Expenses | ||||
Legal and professional fees | 4,550 | 4,350 | 28,746 | 26,150 |
Selling, general and administration | 1,320 | 3,977 | 6,100 | 7,543 |
Total expenses | 5,870 | 8,327 | 34,846 | 33,693 |
Loss from operations | (5,075) | (8,098) | (33,750) | (33,289) |
Other income (expense) | ||||
Interest expense | (2,470) | (255) | (3,681) | (791) |
Total other expense | (2,470) | (255) | (3,681) | (791) |
Net loss before income taxes | (7,545) | (8,353) | (37,431) | (34,080) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | $ (7,545) | $ (8,353) | $ (37,431) | $ (34,080) |
Net loss per share - basic and fully diluted | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted average number of common shares outstanding - basic and fully diluted | 14,027,834 | 6,395,418 | 14,027,834 | 6,395,418 |
STATEMENTS OF STOCKHOLDERS' DEF
STATEMENTS OF STOCKHOLDERS' DEFICIT (UNAUDITED) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, shares at Jul. 31, 2019 | 14,027,834 | |||
Balance, amount at Jul. 31, 2019 | $ (305,705) | $ 14,027 | $ 433,209 | $ (752,941) |
Net loss | (34,080) | $ 0 | 0 | (34,080) |
Balance, shares at Apr. 30, 2020 | 14,027,834 | |||
Balance, amount at Apr. 30, 2020 | (339,785) | $ 14,027 | 433,209 | (787,021) |
Balance, shares at Jan. 31, 2020 | 14,027,834 | |||
Balance, amount at Jan. 31, 2020 | (331,432) | $ 14,027 | 433,209 | (778,668) |
Net loss | (8,353) | $ 0 | 0 | (8,353) |
Balance, shares at Apr. 30, 2020 | 14,027,834 | |||
Balance, amount at Apr. 30, 2020 | (339,785) | $ 14,027 | 433,209 | (787,021) |
Balance, shares at Jul. 31, 2020 | 14,027,834 | |||
Balance, amount at Jul. 31, 2020 | (345,762) | $ 14,027 | 433,209 | (792,998) |
Net loss | (37,431) | $ 0 | 0 | (37,431) |
Balance, shares at Apr. 30, 2021 | 14,027,834 | |||
Balance, amount at Apr. 30, 2021 | (383,193) | $ 14,027 | 433,209 | (830,429) |
Balance, shares at Jan. 31, 2021 | 14,027,834 | |||
Balance, amount at Jan. 31, 2021 | (375,648) | $ 14,027 | 433,209 | (822,884) |
Net loss | (7,545) | $ 0 | 0 | (7,545) |
Balance, shares at Apr. 30, 2021 | 14,027,834 | |||
Balance, amount at Apr. 30, 2021 | $ (383,193) | $ 14,027 | $ 433,209 | $ (830,429) |
STATEMENTS OF CASH FLOWS (UNAUD
STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net loss | $ (37,431) | $ (34,080) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accounts receivable | 140 | 700 |
Inventory | 193 | (714) |
Prepaid expenses and other current assets | (549) | (879) |
Accrued interest - stockholders | 3,002 | 0 |
Other accrued expenses | (671) | 1,012 |
Net Cash Used for Operating Activities | (35,316) | (33,961) |
Cash Flows from Financing Activities | ||
Advances from stockholders, net | 34,958 | 34,298 |
Net Cash Provided by Financing Activities | 34,958 | 34,298 |
Net increase (decrease) in cash | (358) | 337 |
Cash - beginning | 1,049 | 48 |
Cash - ending | 691 | 385 |
Supplemental Disclosure of Cash Flows Information | ||
Cash paid for interest | 679 | 791 |
Cash paid for income taxes | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Apr. 30, 2021 | |
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 (“GAAP”) 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. 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 Company’s 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 Company’s current business operations, the shares issued as part of the agreement shall be returned to the Company. In July 2017, an additional 481,000 shares were issued to shareholders of Jericho under the same contingencies as the original shares. On February 25, 2018, Jericho identified the acquisition of 50% interests in two LLCs (the “LLCs”). The LLCs have a Term Sheet agreement to develop a casino and hotel resort, and provide certain gaming equipment on a shared profit basis. The project is in the process of regulatory review, finalization of closing documents, and completion of financing. Notwithstanding the identification of the business opportunity, the shares issued to Jericho remain contingent upon the regulatory review, the finalization of closing documentation, and the completion of financing arrangements for the project. 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. Also, upon the regulatory review, the finalization of closing documentation, and the completion of financing arrangements for the project, the Company’s President will cancel all shares of common stock held (879,167 shares as of July 31, 2019), the Company’s Chief Executive Officer will cancel all but 550,000 shares of common stock held (2,951,667 shares as of July 31, 2019), subject to an 18-month non-dilution right in order to maintain an ownership percentage of 4.99%, and the Company’s Secretary will cancel all but 45,000 shares of common stock held (185,000 shares as of July 31, 2019). Prior to the August 13, 2018 amendment to the agreement with Jericho, the Chief Executive Officer would cancel all but 523,000 shares of her common stock, subject to an 18-month non-dilution right in order to maintain an ownership percentage of 4.99%. The amendment provided that the Chief Executive Officer would retain an additional 27,000 shares of common stock and the non-dilution right was eliminated. On August 21, 2018, Jericho announced that it had entered into an agreement to acquire all of the issued and outstanding shares of VegasWinners, Inc. a newly formed Nevada corporation (the “Jericho/VegasWinners Transaction”). Vegas Winners, Inc. was incorporated in the State of Nevada to engage in the business of providing sports gaming information, analysis, advice and predictions. The acquisition by Jericho was contingent on several factors, including obtaining a minimum of $1,100,000 in funding by Jericho to provide to VegasWinners, Inc. and certain VegasWinners, Inc. performance criteria. On October 18, 2018, Jericho advanced $232,500 of the $300,000 interim loan to VegasWinners, Inc. There was no Closing of the Jericho/Vegas Winners Transaction as certain conditions of the Closing were not met. On December 6, 2019, Jericho and Vegas Winners terminated the Jericho/VegasWinners Transaction. On October 31, 2020, Jericho, VegasWinners, and a creditor of Jericho agreed that: (i) VegasWinners’ indebtedness to Jericho would be canceled; (ii) Jericho’s indebtedness to the Jericho creditor would be canceled; and (iii) Jericho would cause 10,000 shares of issued and outstanding Company shares to be transferred to the creditor. In addition, Jericho exchanged General Releases with VegasWinners and the Jericho creditor. Jericho has arranged to assign 10,000 shares of the Company to transfer to the Jericho creditor. Principal Services If a transaction with Jericho finalizes, the Company will operate two business divisions, which will be operated simultaneously and consist of the following: The concrete leveling division of the business will fabricate and market a concrete leveling service unit utilized in the concrete leveling industry. This unit secures to the back of a truck and consists of a mixing device to mix lime with water and a pumping device capable of pumping the mixture under pressure into pre-drilled holes in order to raise the level of any flat concrete surface. The gaming and hospitality division of the business will focus on casino gaming, hospitality, entertainment and leisure time industries, and will pursue opportunities in the tribal and commercial casino gaming industries, both in California and Nevada. The Company will also operate in the casino gaming technology industry, and is seeking opportunities to partner, joint venture, or acquire companies developing casino games that combine traditional casino games with the challenge of video games and the playability of social games, meaning games that pit the player’s skill against the skill of another player as opposed to the casino itself. Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, “ Revenue from contracts with customers The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of FASB ASC Topic 606 at contract inception, the Company reviews the contract to determine which performance obligation the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. 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 April 30, 2021 and July 31, 2020. Advertising and Marketing Advertising and marketing costs are charged to operations when incurred. Advertising costs were $0 and $2,382 for the nine months ended April 30, 2021 and 2020. Inventories Inventories, which consist of parts and work in progress, are recorded at the lower of first-in first-out cost or net realizable value (estimated selling price less costs of completion, disposal and transportation). Use of Estimates The preparation of the financial statements in conformity with GAAP 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. 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. Going Concern 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 April 30, 2021, current liabilities exceed current assets by $383,193, and total liabilities exceed total assets by $383,193. 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. COVID-19 Management has concluded that the COVID-19 outbreak in 2020 may have a significant impact on business in general, but the potential impact on the Company is not currently measurable. Due to the level of risk this virus may have on the global economy, it is at least reasonably possible that it could have an impact on the operations of the Company in the near term that could materially impact the Company’s financials. Management has not been able to measure the potential financial impact on the Company but will review commercial and federal financing options should the need arise. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Apr. 30, 2021 | |
NEW ACCOUNTING PRONOUNCEMENTS | |
NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS | In February 2016, the FASB issued Auditing Standards Update No. 2016-02, “ Leases ”. Under this new guidance, lessees (including lessees under leases classified as finance leases, which are to be classified based on criteria similar to that applicable to capital leases under current guidance, and leases classified as operating leases) will recognize a right-to-use asset and a lease liability on the balance sheet, initially measured as the present value of lease payments under the lease. Under current guidance, operating leases are not recognized on the balance sheet. However, the new guidance permits companies to make an accounting policy election not to apply the recognition provisions of the new guidance to short term leases (leases with a lease term of 12 months or less that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise). If this election is made, lease payments under short term leases will be recognized on a straight-line basis over the lease tern. The Company has adopted the new guidance effective August 1, 2019: however, there was no impact to the financial statements. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Apr. 30, 2021 | |
INCOME TAXES | |
NOTE 3 - INCOME TAXES | Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Additionally, the recognition of future tax benefits, such as net operating loss carry forwards, is required to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities result in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some or all of the deferred tax asset will not be realized. In assessing the realizability of the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. As of April 30, 2021, the Company had net operating loss carry forwards of approximately $672,040 that may be available to reduce future years’ taxable income in varying amounts through 2040. The Company’s income tax returns are subject to examination by tax authorities. Generally, the statute of limitations related to the Company’s federal and state income tax return is three years from the date of filing. The state impact of any federal changes of prior years remains subject to examination for a period of up to five years after formal notification to the states. Management has evaluated tax positions in accordance with FASB ASC 740, Income Taxes Income taxes on continuing operations include the following: Apr 30, 2021 Apr 30, 2020 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: Apr 30, 2021 Apr 30, 2020 % 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 (7,900 ) (21 ) (7,100 ) (21 ) Income taxes at statutory rate $ (7,900 ) (21 )% $ (7,100 ) (21 )% The components of and changes in the net deferred taxes were as follows: Deferred tax assets: Apr 30, 2021 Apr 30, 2020 Net operating loss carryforwards $ 141,100 $ 132,000 Compensation and miscellaneous 3,800 3,200 Deferred tax assets 144,900 135,200 Valuation Allowance (144,900 ) (135,200 ) Net deferred tax assets: $ -0- $ -0- Tax periods ended July 31, 2017 through 2020 are subject to examination by major taxing authorities. |
RELATED PARTIES
RELATED PARTIES | 9 Months Ended |
Apr. 30, 2021 | |
RELATED PARTIES | |
NOTE 4 - 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. 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 April 30, 2021 and July 31, 2020. Effective July 31, 2013, further interest accrual was waived by the noteholders. Accrued interest is $15,139 at April 30, 2021 and July 31, 2020. One of the Company’s stockholders and a company owned by the stockholder advanced a total of $124,817 to the Company at various times between November 2012 and December 2020. On December 31, 2020, $124,217 of the balance of the advances was converted to a note payable to the stockholder. The note carries interest at a rate of 7.25% and is payable on demand. Accrued interest at April 30, 2021 is $3,002. The balances on the advances and note payable are $500 and $124,217 at April 30, 2021, respectively. The advances carry no interest. Another stockholder of the Company paid invoices of the Company at various times between August 2018 and April 2021. The balances on these advances are $179,075 and $144,217 at April 30, 2021 and July 31, 2020, respectively. The advances carry no interest. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Apr. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 5 - COMMITMENTS AND CONTINGENCIES | During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with FASB ASC 450-20-50, Contingencies . The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. As of April 30, 2021, the Company is not aware of any contingent liabilities that should be reflected in the financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Apr. 30, 2021 | |
SUBSEQUENT EVENTS | |
NOTE 6 - SUBSEQUENT EVENTS | The Company has evaluated all subsequent events through June 1, 2021, the date the financial statements were available to be issued. There are no subsequent events to report. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Apr. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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. 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 Company’s 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 Company’s current business operations, the shares issued as part of the agreement shall be returned to the Company. In July 2017, an additional 481,000 shares were issued to shareholders of Jericho under the same contingencies as the original shares. On February 25, 2018, Jericho identified the acquisition of 50% interests in two LLCs (the “LLCs”). The LLCs have a Term Sheet agreement to develop a casino and hotel resort, and provide certain gaming equipment on a shared profit basis. The project is in the process of regulatory review, finalization of closing documents, and completion of financing. Notwithstanding the identification of the business opportunity, the shares issued to Jericho remain contingent upon the regulatory review, the finalization of closing documentation, and the completion of financing arrangements for the project. 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. Also, upon the regulatory review, the finalization of closing documentation, and the completion of financing arrangements for the project, the Company’s President will cancel all shares of common stock held (879,167 shares as of July 31, 2019), the Company’s Chief Executive Officer will cancel all but 550,000 shares of common stock held (2,951,667 shares as of July 31, 2019), subject to an 18-month non-dilution right in order to maintain an ownership percentage of 4.99%, and the Company’s Secretary will cancel all but 45,000 shares of common stock held (185,000 shares as of July 31, 2019). Prior to the August 13, 2018 amendment to the agreement with Jericho, the Chief Executive Officer would cancel all but 523,000 shares of her common stock, subject to an 18-month non-dilution right in order to maintain an ownership percentage of 4.99%. The amendment provided that the Chief Executive Officer would retain an additional 27,000 shares of common stock and the non-dilution right was eliminated. On August 21, 2018, Jericho announced that it had entered into an agreement to acquire all of the issued and outstanding shares of VegasWinners, Inc. a newly formed Nevada corporation (the “Jericho/VegasWinners Transaction”). Vegas Winners, Inc. was incorporated in the State of Nevada to engage in the business of providing sports gaming information, analysis, advice and predictions. The acquisition by Jericho was contingent on several factors, including obtaining a minimum of $1,100,000 in funding by Jericho to provide to VegasWinners, Inc. and certain VegasWinners, Inc. performance criteria. On October 18, 2018, Jericho advanced $232,500 of the $300,000 interim loan to VegasWinners, Inc. There was no Closing of the Jericho/Vegas Winners Transaction as certain conditions of the Closing were not met. On December 6, 2019, Jericho and Vegas Winners terminated the Jericho/VegasWinners Transaction. On October 31, 2020, Jericho, VegasWinners, and a creditor of Jericho agreed that: (i) VegasWinners’ indebtedness to Jericho would be canceled; (ii) Jericho’s indebtedness to the Jericho creditor would be canceled; and (iii) Jericho would cause 10,000 shares of issued and outstanding Company shares to be transferred to the creditor. In addition, Jericho exchanged General Releases with VegasWinners and the Jericho creditor. Jericho has arranged to assign 10,000 shares of the Company to transfer to the Jericho creditor. Principal Services If a transaction with Jericho finalizes, the Company will operate two business divisions, which will be operated simultaneously and consist of the following: The concrete leveling division of the business will fabricate and market a concrete leveling service unit utilized in the concrete leveling industry. This unit secures to the back of a truck and consists of a mixing device to mix lime with water and a pumping device capable of pumping the mixture under pressure into pre-drilled holes in order to raise the level of any flat concrete surface. The gaming and hospitality division of the business will focus on casino gaming, hospitality, entertainment and leisure time industries, and will pursue opportunities in the tribal and commercial casino gaming industries, both in California and Nevada. The Company will also operate in the casino gaming technology industry, and is seeking opportunities to partner, joint venture, or acquire companies developing casino games that combine traditional casino games with the challenge of video games and the playability of social games, meaning games that pit the player’s skill against the skill of another player as opposed to the casino itself. |
Revenue Recognition | The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, “ Revenue from contracts with customers The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of FASB ASC Topic 606 at contract inception, the Company reviews the contract to determine which performance obligation the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents |
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 April 30, 2021 and July 31, 2020. |
Advertising and Marketing | Advertising and marketing costs are charged to operations when incurred. Advertising costs were $0 and $2,382 for the nine months ended April 30, 2021 and 2020. |
Inventories | Inventories, which consist of parts and work in progress, are recorded at the lower of first-in first-out cost or net realizable value (estimated selling price less costs of completion, disposal and transportation). |
Use of Estimates | The preparation of the financial statements in conformity with GAAP 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. |
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. |
Going Concern | 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 April 30, 2021, current liabilities exceed current assets by $383,193, and total liabilities exceed total assets by $383,193. 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. |
COVID-19 | Management has concluded that the COVID-19 outbreak in 2020 may have a significant impact on business in general, but the potential impact on the Company is not currently measurable. Due to the level of risk this virus may have on the global economy, it is at least reasonably possible that it could have an impact on the operations of the Company in the near term that could materially impact the Company’s financials. Management has not been able to measure the potential financial impact on the Company but will review commercial and federal financing options should the need arise. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
INCOME TAXES | |
Schedule of income taxes on continuing operations | Apr 30, 2021 Apr 30, 2020 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 | Apr 30, 2021 Apr 30, 2020 % 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 (7,900 ) (21 ) (7,100 ) (21 ) Income taxes at statutory rate $ (7,900 ) (21 )% $ (7,100 ) (21 )% |
Schedule of components of and changes in the net deferred taxes | Apr 30, 2021 Apr 30, 2020 Net operating loss carryforwards $ 141,100 $ 132,000 Compensation and miscellaneous 3,800 3,200 Deferred tax assets 144,900 135,200 Valuation Allowance (144,900 ) (135,200 ) Net deferred tax assets: $ -0- $ -0- |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Nov. 09, 2017 | Oct. 18, 2018 | Feb. 25, 2018 | Apr. 30, 2021 | Apr. 30, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | Aug. 21, 2018 | Aug. 13, 2018 | Jul. 31, 2017 | Mar. 24, 2017 |
Allowance for doubtful accounts receivable | $ 0 | $ 0 | |||||||||
Advertising costs | 0 | $ 2,382 | |||||||||
Current liabilities exceeding current assets | 383,193 | ||||||||||
Total liabilities exceed total assets | $ 383,193 | ||||||||||
Common stock shares issued | 14,027,834 | 14,027,834 | |||||||||
Vegas Winners, Inc. [Member] | |||||||||||
Business acquisition, contingent liability payable by Jericho | $ 300,000 | ||||||||||
Total funding to be obtained by Jericho | $ 1,100,000 | ||||||||||
Business acquisition consideration transferred by Jericho | $ 232,500 | ||||||||||
Settlement description | Jericho would cause 10,000 shares of issued and outstanding Company shares to be transferred to the creditor. In addition, Jericho exchanged General Releases with VegasWinners and the Jericho creditor. Jericho has arranged to borrow 10,000 shares of the Company to transfer to the Jericho creditor. | ||||||||||
Chief Executive Officer [Member] | |||||||||||
Common stock shares issued | 27,000 | ||||||||||
Common stock held | 2,951,667 | ||||||||||
Business acquisition, remaining common stock held, number of shares | 550,000 | 523,000 | |||||||||
Non-dilution period | 18 months | ||||||||||
Ownership percentage | 4.99% | 4.99% | |||||||||
President [Member] | |||||||||||
Common stock held | 879,167 | ||||||||||
Secretary [Member] | |||||||||||
Common stock held | 185,000 | ||||||||||
Business acquisition, remaining common stock held, number of shares | 45,000 | ||||||||||
Jericho [Member] | |||||||||||
Acquisition interest | 50.00% | ||||||||||
Common stock shares issued | 481,000 | 7,151,416 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
INCOME TAXES | ||||
Currently payable | $ 0 | $ 0 | ||
Deferred | 0 | 0 | ||
Total | $ 0 | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 9 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
INCOME TAXES | ||
Income taxes per statement of operations | $ 0 | $ 0 |
Loss for financial reporting purposes without tax expense or benefit | (7,900) | (7,100) |
Income taxes at statutory rate | $ (7,900) | $ (7,100) |
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) | (21.00%) | (21.00%) |
Income taxes at statutory rate (% of Pretax Amount) | (21.00%) | (21.00%) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 141,100 | $ 132,000 |
Compensation and miscellaneous | 3,800 | 3,200 |
Deferred tax assets | 144,900 | 135,200 |
Valuation Allowance | (144,900) | (135,200) |
Net deferred tax assets: | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 9 Months Ended |
Apr. 30, 2021USD ($) | |
INCOME TAXES | |
Net operating loss carry forwards | $ 672,040 |
Income tax expiration future years | Taxable income in varying amounts through 2040. |
RELATED PARTIES (Details Narrat
RELATED PARTIES (Details Narrative) - USD ($) | Apr. 30, 2021 | Dec. 31, 2020 | Jul. 31, 2020 |
Note payable | $ 124,217 | ||
Accrued interest | $ 3,002 | ||
Interest rate on notes | 7.25% | ||
Advances - stockholders | $ 500 | $ 268,834 | |
Accrued interest - stockholders | 18,141 | 15,139 | |
Stockholders [Member] | July 31, 2010 through 2012 [Member] | |||
Loan Amount | 62,750 | ||
Loan Balance - stockholders | 62,750 | 62,750 | |
Accrued interest - stockholders | $ 15,139 | 15,139 | |
Stockholders [Member] | July 31, 2010 through 2012 [Member] | Minimum [Member] | |||
Interest rate on notes | 8.00% | ||
Stockholders [Member] | July 31, 2010 through 2012 [Member] | Maximum [Member] | |||
Interest rate on notes | 12.00% | ||
Stockholders [Member] | Between November 2012 and December 2020 [Member] | |||
Advances - stockholders | $ 124,817 | $ 124,217 | |
Stockholder [Member] | |||
Advances - stockholders | $ 179,075 | $ 144,217 |