Document and Entity Information
Document and Entity Information - $ / shares | Mar. 19, 2018 | Jan. 31, 2018 | Jul. 31, 2017 |
Details | |||
Registrant Name | HAMMER FIBER OPTICS HOLDINGS CORP | ||
Registrant CIK | 1,539,680 | ||
SEC Form | 10-Q | ||
Period End date | Jan. 31, 2018 | ||
Fiscal Year End | --07-31 | ||
Trading Symbol | hmmr | ||
Tax Identification Number (TIN) | 981,032,170 | ||
Number of common stock shares outstanding | 52,360,814 | ||
Filer Category | Smaller Reporting Company | ||
Current with reporting | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | Q2 | ||
Entity Incorporation, State Country Name | NEVADA | ||
Entity Address, Address Line One | 311 Broadway | ||
Entity Address, City or Town | Point Pleasant Beach | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 8,742 | ||
City Area Code | 844 | ||
Local Phone Number | 413-2600 | ||
Common Stock, Shares, Issued | 60,503,341 | 60,503,341 | 60,503,341 |
Entity Listing, Par Value Per Share | $ 0.001 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (January 31, 2018 unaudited) - USD ($) | Jan. 31, 2018 | Jul. 31, 2017 |
Assets, Current | ||
Cash and cash equivalents | $ 107,980 | $ 528,380 |
Accounts Receivable | 23,427 | 7,488 |
Other Assets, Current | 31,964 | 44,791 |
Assets, Current | 163,371 | 580,659 |
Property, Plant and Equipment, Net | 4,943,696 | 5,005,016 |
Intangible Assets, Net (Excluding Goodwill) | 18,934 | 18,934 |
Notes receivable, long-term | 235,000 | 235,000 |
Total other assets | 5,197,630 | 5,258,950 |
Assets | 5,361,001 | 5,839,609 |
Liabilities, Current | ||
Accounts Payable, Current | 174,943 | 111,612 |
Long-term Debt and Capital Lease Obligations, Current | 0 | 6,905 |
Current portion of long-term notes payable - related parties | 3,604,567 | 1,210,000 |
Accrued interest | 208,093 | 107,094 |
Liabilities, Current | 3,987,603 | 1,435,611 |
Liabilities and Equity | 5,361,001 | 5,839,609 |
Notes payable - related party | 0 | 2,394,567 |
Liabilities | 3,987,603 | 3,830,178 |
Stockholders' Equity Attributable to Parent | ||
Common Stock, Value, Issued | 60,503 | 60,503 |
Additional Paid in Capital | 12,502,897 | 10,625,287 |
Retained Earnings (Accumulated Deficit) | (11,190,002) | (8,676,359) |
Stockholders' Equity Attributable to Parent | $ 1,373,398 | $ 2,009,431 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (January 31, 2018 unaudited) - Parenthetical - $ / shares | Jan. 31, 2018 | Jul. 31, 2017 |
Details | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares, Issued | 60,503,341 | 60,503,341 |
Common Stock, Shares, Outstanding | 52,307,214 | 51,999,234 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Details | ||||
Revenue, Net | $ 52,681 | $ 38,014 | $ 89,974 | $ 38,014 |
Costs and Expenses | ||||
Operations and maintenance | 6,049 | 19,863 | 8,256 | 19,863 |
General and administrative | 809,688 | 1,106,547 | 1,975,357 | 1,944,275 |
Depreciation, Depletion and Amortization, Nonproduction | 283,909 | 251,087 | 562,945 | 386,077 |
Total operating expenses | 1,099,646 | 1,377,497 | 2,546,559 | 2,350,215 |
Operating Income (Loss) | (1,046,965) | (1,339,483) | (2,456,584) | (2,312,201) |
OTHER INCOME AND EXPENSE | ||||
Interest Expense | (89,305) | (86,516) | (175,589) | (165,827) |
Interest income | 1,765 | 3,523 | 3,530 | 3,526 |
Other Income | 115,000 | 0 | 115,000 | 2,948 |
Total other income (expense) | 27,460 | (82,993) | (57,059) | (159,353) |
NET LOSS | $ (1,019,505) | $ (1,422,476) | $ (2,513,643) | $ (2,471,554) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 52,233,418 | 51,324,102 | 52,189,093 | 51,290,098 |
Loss per common share - basic and diluted | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.05) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) | 6 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ (2,513,643) | $ (2,471,554) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 562,945 | 386,076 |
Other current assets | 12,827 | 44,516 |
Net cash used in operating activities | (1,789,480) | (2,216,165) |
Accounts receivable | (15,939) | 0 |
Accounts payable | 63,331 | (549,348) |
Deposit - related party | 0 | 210,000 |
Accrued interest | 100,999 | 164,145 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (501,625) | (516,169) |
Proceeds from notes receivable | 0 | 65,000 |
Net cash used in investing activities | (501,625) | (451,169) |
Cash flows from financing activities: | ||
Proceeds from loans payable | 0 | 100,000 |
Repayment of loans payable | (6,905) | (21,136) |
Proceeds from issuance of shares | 1,877,610 | 0 |
Proceeds from subscription of shares held by subsidiary | 0 | 2,253,650 |
Net cash provided by financing activities | 1,870,705 | 2,332,514 |
Net increase (decrease) in cash | (420,400) | (334,820) |
Cash and cash equivalents | 528,380 | 563,754 |
Cash and cash equivalents | 107,980 | 228,934 |
Cash Flow, Noncash Investing and Financing Activities Disclosure | ||
Interest Paid | 75,000 | 906 |
Income Taxes Paid, Net | $ 0 | $ 0 |
NOTE 1 - ORGANIZATION AND DESCR
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Jan. 31, 2018 | |
Notes | |
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE A Hammer W The January r w v |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jan. 31, 2018 | |
Notes | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE R Basis The Reclassifications Costs incurred during the three and six month periods ended January 31, 2017, and previously recorded as Cost of Sales, have been reclassified as Operations and Maintenance expenses in the comparable periods in 2018. Use The f f Cash Cash Property Property Impairment The Notes These Indefinite The y y The Capitalized Costs Revenue The Revenue is recorded net of discounts provided to customers. Discounts applied during the three and six- month periods ended January 31, 2018 were $6,870 and 13,267, respectively. The r y r Income The T f f f Fair The T V The ASC y Level Level Consolidation Hammer W Basic The r r y y Recent The on |
NOTE 3 - NOTES RECEIVABLE
NOTE 3 - NOTES RECEIVABLE | 6 Months Ended |
Jan. 31, 2018 | |
Notes | |
NOTE 3 - NOTES RECEIVABLE | NOTE V During y The Company had entered into a loan agreement during the year ended July 2016 with Zena Capital, LLC for an aggregate amount of $1,000,000. Payments of $250,000 had been made against the loan however the loan was in default as of July 31, 2017. The Company recorded a reserve against the outstanding balance of $750,000 in July 2017. A payment of $115,000 was received during the three months ended January 31, 2018 and was recorded as Other Income. |
NOTE 4 - INDEFINITE LIVED INTAN
NOTE 4 - INDEFINITE LIVED INTANGIBLE ASSETS | 6 Months Ended |
Jan. 31, 2018 | |
Notes | |
NOTE 4 - INDEFINITE LIVED INTANGIBLE ASSETS | NOTE T The |
NOTE 5 - RELATED PARTY TRANSACT
NOTE 5 - RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jan. 31, 2018 | |
Notes | |
NOTE 5 - RELATED PARTY TRANSACTIONS | NOTE A P R On During y T y The y y |
NOTE 6 - STOCKHOLDERS' EQUITY
NOTE 6 - STOCKHOLDERS' EQUITY | 6 Months Ended |
Jan. 31, 2018 | |
Notes | |
NOTE 6 - STOCKHOLDERS' EQUITY | NOTE T In y W f W y These shares are being accounted for as treasury stock under the cost method, with an initial cost of $0. Accordingly, these shares have been removed from the outstanding shares reported on the balance sheet. r During r f During |
NOTE 7 - GOING CONCERN
NOTE 7 - GOING CONCERN | 6 Months Ended |
Jan. 31, 2018 | |
Notes | |
NOTE 7 - GOING CONCERN | NOTE The f The The |
NOTE 8 - SUBSEQUENT EVENTS
NOTE 8 - SUBSEQUENT EVENTS | 6 Months Ended |
Jan. 31, 2018 | |
Notes | |
NOTE 8 - SUBSEQUENT EVENTS | NOTE Subsequent W |
NOTE 2 - SUMMARY OF SIGNIFICA14
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of presentation (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Basis of presentation | Basis The |
NOTE 2 - SUMMARY OF SIGNIFICA15
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Reclassifications (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Reclassifications | Reclassifications Costs incurred during the three and six month periods ended January 31, 2017, and previously recorded as Cost of Sales, have been reclassified as Operations and Maintenance expenses in the comparable periods in 2018. |
NOTE 2 - SUMMARY OF SIGNIFICA16
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of estimates (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Use of estimates | Use The f f |
NOTE 2 - SUMMARY OF SIGNIFICA17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and cash equivalents (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Cash and cash equivalents | Cash Cash |
NOTE 2 - SUMMARY OF SIGNIFICA18
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property and equipment (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Property and equipment | Property Property |
NOTE 2 - SUMMARY OF SIGNIFICA19
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Impairment of long-lived assets (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Impairment of long-lived assets | Impairment The |
NOTE 2 - SUMMARY OF SIGNIFICA20
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Notes receivable (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Notes receivable | Notes These |
NOTE 2 - SUMMARY OF SIGNIFICA21
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Indefinite-lived intangible assets (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Indefinite-lived intangible assets | Indefinite The y y The |
NOTE 2 - SUMMARY OF SIGNIFICA22
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Capitalized software costs (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Capitalized software costs | Capitalized Costs |
NOTE 2 - SUMMARY OF SIGNIFICA23
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue recognition (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Revenue recognition | Revenue The Revenue is recorded net of discounts provided to customers. Discounts applied during the three and six- month periods ended January 31, 2018 were $6,870 and 13,267, respectively. The r y r |
NOTE 2 - SUMMARY OF SIGNIFICA24
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income taxes (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Income taxes | Income The T f f f |
NOTE 2 - SUMMARY OF SIGNIFICA25
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair value measurements (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Fair value measurements | Fair The T V The ASC y Level Level |
NOTE 2 - SUMMARY OF SIGNIFICA26
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Consolidation of financial statements (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Consolidation of financial statements | Consolidation Hammer W |
NOTE 2 - SUMMARY OF SIGNIFICA27
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Earnings (Loss) per Common Share (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Basic and Diluted Earnings (Loss) per Common Share | Basic The r r y y |
NOTE 2 - SUMMARY OF SIGNIFICA28
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recent accounting pronouncements (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Policies | |
Recent accounting pronouncements | Recent The on |
NOTE 3 - NOTES RECEIVABLE (Deta
NOTE 3 - NOTES RECEIVABLE (Details) - MEK Investments Inc. | 6 Months Ended |
Jan. 31, 2018USD ($) | |
Financing Receivable, Gross | $ 235,000 |
Debt Instrument, Maturity Date | Jun. 30, 2018 |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% |
NOTE 4 - INDEFINITE LIVED INT30
NOTE 4 - INDEFINITE LIVED INTANGIBLE ASSETS (Details) - USD ($) | Jan. 31, 2018 | Jul. 31, 2017 |
Details | ||
Intangible Assets, Net (Excluding Goodwill) | $ 18,934 | $ 18,934 |
NOTE 5 - RELATED PARTY TRANSA31
NOTE 5 - RELATED PARTY TRANSACTIONS (Details) - USD ($) | 6 Months Ended | |
Jan. 31, 2018 | Jul. 31, 2017 | |
Family member of a member of the Company's Board of Directors | ||
Related Party Transaction, Date | Oct. 9, 2016 | |
Related Party Transaction, Description of Transaction | Company entered into a short-term loan agreement with a family member of a member of the Company’s Board of Directors | |
Related Party Transaction, Amounts of Transaction | $ 100,000 | |
Related Party Transaction, Terms and Manner of Settlement | loan is for a period of 6 months | |
Related Party Transaction, Rate | 3.00% | |
Revenue from Related Parties | $ 210,000 | |
Long-term Debt | $ 310,000 | |
Promissory Note with related party | ||
Related Party Transaction, Description of Transaction | Company entered into two promissory notes with a related party | |
Related Party Transaction, Terms and Manner of Settlement | terms consist of ten principal and interest payments due quarterly | |
Long-term Debt | $ 2,294,067 | |
Interest Payable | 154,092 | $ 69,594 |
Promissory Note with related party - 1 | ||
Related Party Transaction, Amounts of Transaction | 2,400,000 | |
Promissory Note with related party - 2 | ||
Related Party Transaction, Amounts of Transaction | 1,000,000 | |
Long-term Debt | 1,000,000 | 1,000,000 |
Interest Payable | $ 54,000 | $ 37,500 |
Debt Instrument, Maturity Date | Jun. 9, 2018 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% |
NOTE 6 - STOCKHOLDERS' EQUITY (
NOTE 6 - STOCKHOLDERS' EQUITY (Details) - $ / shares | 6 Months Ended | ||
Jan. 31, 2018 | Jul. 31, 2017 | Jul. 19, 2016 | |
Common Stock, Shares, Outstanding | 52,307,214 | 51,999,234 | 60,503,341 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 |
Treasury shares outstanding | 8,196,127 | 8,504,107 | |
In July 2016 | |||
Equity Method Investment, Additional Information | certain shareholders of the Company contributed 9,291,670 restricted shares of their common stock to the Company’s wholly-owned subsidiary, Hammer Wireless Corporation | ||
During the year ended July 31, 2016 | |||
Equity Method Investment, Additional Information | Company issued an additional 759,619 Class A shares and 992,481 Class B shares for proceeds of $3,140,094 | ||
During the three months ended October 31, 2017 | |||
Equity Method Investment, Additional Information | Company received cash of $1,877,610 from the sale of 307,980 treasury shares. |
NOTE 8 - SUBSEQUENT EVENTS (Det
NOTE 8 - SUBSEQUENT EVENTS (Details) | 6 Months Ended |
Jan. 31, 2018 | |
Event 1 | |
Subsequent Event, Description | Company received cash of $134,000 from the sale of 53,600 shares |