Document and Entity Information
Document and Entity Information - $ / shares | Jun. 22, 2020 | Apr. 30, 2020 | Jul. 31, 2019 |
Details | |||
Registrant CIK | 0001539680 | ||
Fiscal Year End | --07-31 | ||
Document Type | 10-Q/A | ||
Document Quarterly Report | true | ||
Document Period End Date | Apr. 30, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 000-1539680 | ||
Entity Registrant Name | HAMMER FIBER OPTICS HOLDINGS CORP. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 98-1032170 | ||
Entity Address, Address Line One | 401 East 34th Street, Suite #N27J | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10016 | ||
Entity Address, Address Description | Address of principal executive offices | ||
City Area Code | 844 | ||
Local Phone Number | 413-2600 | ||
Phone Fax Number Description | Registrant’s telephone number | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Common Stock, Shares, Issued | 60,503,341 | 60,503,341 | 60,503,341 |
Entity Listing, Par Value Per Share | $ 0.001 | ||
Entity Common Stock, Shares Outstanding | 50,554,767 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheet (Apr
Consolidated Balance Sheet (April 30, 2020 Unaudited) - USD ($) | Apr. 30, 2020 | Jul. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 60,996 | $ 87,767 |
Accounts receivable | 469,714 | 485,464 |
Security Deposits | 6,446 | 2,675 |
Prepaid expenses | 58,701 | 80,362 |
Total current assets | 595,857 | 656,268 |
Other assets | ||
Property and equipment, net | 1,387,487 | 136,495 |
Intangible assets | 3,242,057 | 2,914,624 |
Assets from Discontinued Operations | 562,892 | 1,775,280 |
Total assets | 5,788,293 | 5,482,667 |
Current Liabilities | ||
Accounts payable and accrued expenses | 1,144,995 | 929,620 |
Loans payable | 375,102 | 204,511 |
Deferred Revenue | 248,712 | 227,809 |
Total current liabilities | 1,768,809 | 1,361,940 |
Liabilities from Discontinued Operations | 8,960,440 | 8,846,399 |
Total Liabilities | 10,729,249 | 10,208,339 |
Stockholders' Equity (Deficit) | ||
Common stock, $0.001 par value, 250,000,000 shares authorized, 60,503,341 shares issued; 45,944,954 and 52,946,162 shares outstanding at April 30, 2020 and July 31, 2019, respectively. | 60,503 | 60,503 |
Additional paid-in capital | 17,512,284 | 17,201,784 |
Accumulated deficit | (22,513,743) | (21,987,959) |
Total stockholders' equity (deficit) | (4,940,956) | (4,725,672) |
Total Liabilities and Stockholders' equity (deficit) | $ 5,788,293 | $ 5,482,667 |
Consolidated Balance Sheet (A_2
Consolidated Balance Sheet (April 30, 2020 Unaudited) - Parenthetical - $ / shares | Apr. 30, 2020 | Jul. 31, 2019 |
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 | 45,944,954 | 52,946,162 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Details | ||||
Revenues | $ 388,900 | $ 888,395 | $ 1,651,114 | $ 1,647,354 |
Cost of sales | 273,253 | 513,480 | 1,360,418 | 1,147,027 |
Selling, general and administrative expenses | 169,082 | 333,012 | 638,265 | 594,629 |
Depreciation expense | 10,934 | 14,815 | 40,564 | 23,714 |
Total operating expenses | 453,269 | 861,307 | 2,039,247 | 1,765,370 |
Operating Income (Loss) | (64,369) | 27,088 | (388,133) | (118,016) |
Other expenses | 8,482 | 9,606 | 20,942 | 22,602 |
Income (loss) from continuing operations | (72,851) | 17,482 | (409,075) | (140,618) |
Loss from Discontinued Operations | (112,717) | (95,569) | (116,709) | (7,349,707) |
Net loss | $ (185,568) | $ (78,087) | $ (525,784) | $ (7,490,325) |
basic and diluted | 60,503,341 | 48,409,396 | 60,503,341 | 48,409,396 |
Loss per share- basic and diluted | ||||
Continuing operations | $ 0 | $ 0 | $ (0.01) | $ 0 |
Discontinued operations | 0 | 0 | 0 | (0.15) |
Total | $ 0 | $ 0 | $ (0.01) | $ (0.15) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Cash flows from operating activities: | ||
Net Income (Loss) except discontinued operations | $ (525,784) | $ (7,490,325) |
Loss from discontinued operations | 116,709 | 7,349,707 |
cash provided by operating activities: | ||
Depreciation expense | 40,564 | 23,714 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (139,225) | (474,247) |
Prepaid expenses | 20,621 | 483 |
Accounts payable | 346,235 | 325,371 |
Deferred revenue | 29,261 | (13,857) |
Net cash provided by (used in) operating activities- continuing operations | (111,619) | (279,154) |
Net cash provided by (used in) operating activities- discontinued operations | (125,312) | (68,362) |
Net cash provided by (used in) operating activities | (236,931) | (347,516) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (48,509) | (72,194) |
Sale of assets | 13,356 | 550,000 |
Net cash provided by (used in) investing activities | (35,153) | 477,806 |
FINANCING ACTIVITIES | ||
Proceeds from loans | 260,272 | 0 |
Repayment of loans | (14,959) | (185,211) |
Investments | 0 | 7,926 |
Net cash provided by (used in) financing activities | 245,313 | (177,285) |
Net increase (decrease) in cash | (26,771) | (46,995) |
Cash, beginning of period | 87,767 | 107,980 |
Cash, end of period | 60,996 | 60,985 |
Supplemental Cash Flow Information | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 20,942 | 22,602 |
Income Taxes Paid, Net | $ 800 | $ 800 |
NOTE 1 - ORGANIZATION AND DESCR
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 ORGANIZATION AND DESCRIPTION OF BUSINESS Hammer Fiber Optics Holdings Corp. (the Company) is a telecommunications company investing in the future of wireless technology. Hammers Everything Wireless go to market strategy includes the development of high-speed fixed wireless service using its wireless fiber platform, Hammer Wireless® AIR, Mobility, Over-the-Top services such as voice, SMS and video collaboration services, the construction of smart city networks and hosting services including cloud and colocation. |
NOTE 2 - CORPORATE HISTORY AND
NOTE 2 - CORPORATE HISTORY AND BACKGROUND ON MERGER | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 2 - CORPORATE HISTORY AND BACKGROUND ON MERGER | NOTE 2 CORPORATE HISTORY AND BACKGROUND ON MERGER The Company was originally incorporated in the State of Nevada on September 23, 2010, under the name Recursos Montana S.A. The Companys principal activity was an exploration stage company engaged in the acquisition of mineral properties then owned by the Company. On February 2, 2015, the Company entered into a Share Exchange Agreement with Tanaris Power Holdings, Inc., whereby the Company acquired 100% of Tanaris Power Holdings, Inc. issued and outstanding common stock in exchange for shares of the Companys common stock equal to 51% of the issued and outstanding common stock of the Company. Tanaris Power Holdings, Inc. was the owner of certain rights in connection with the marketing and sale of smart lithium-ion batteries and battery technologies for various industrial vehicles markets and related applications. On March 6, 2015, the Company amended its Articles of Incorporation to change its name to Tanaris Power Holdings, Inc. On April 25, 2016, Tanaris Power Holdings, Inc., a Nevada corporation entered into s Share Exchange Agreement (the Share Exchange Agreement) with Hammer Fiber Optics Investments, Ltd., a Delaware corporation (HFOI), and the controlling stockholders of HFOI (the HFOI Shareholders). Pursuant to the Share Exchange Agreement, the Company acquired 20,000,000 shares of common stock of HFOI from the HFOI shareholders (the HFOI Shares) and in exchange, the Company issued to the HFOI Shareholders 50,000,000 (post-Merger) restricted shares of its common stock (the HMMR Shares). As a result of the Share Exchange Agreement, HFOI shall become a wholly owned subsidiary of the Company. On April 13, 2016, the Board of Directors (BOD) approved a Plan of Merger (the Plan of Merger) under Nevada Revised Statuses (NRS) Section 92A.180 to merge (the Merger) with our wholly-owned subsidiary HFO Holdings, a Nevada corporation, to effect a name change from Tanaris Power Holdings Inc. to Hammer Fiber Optics Holdings Corp. The Plan of Merger also provides for a 1 for 1,000 exchange ratio for shareholders of both the Company and the HRO Holdings, which had the effect of a 1 for 1,000 reverse split of the common stock. Articles of Merger were filed with the Secretary of State of Nevada on April 13, 2016 and, on April 14, 2016, this corporate action was submitted to Financial Industry Regulatory Authority (the FINRA) for its review and approval. On May 3, 2016, the FINRA approved the merger with the wholly-owned subsidiary, HMMR Fiber Optics Holdings Corp. (HFO Holdings). Accordingly, thereafter, the Companys name was changed and the shares of common stock began trading under new ticker symbol HMMR as of May 27, 2016. The merger was effected on July 19, 2016. In 2016 Hammer Fiber Optics Investments Ltd deployed its first beta network in Atlantic County, New Jersey. The network used a spectrum license agreement from Straightpath Communications, LLC. On January 17, 2018 Verizon Communications, LLC purchased Straightpath Communications, LLC and on July14 2018, Verizon terminated the spectrum license agreement effective October 31, 2018 despite communications that it would continue to honor the agreement. On October 31, 2018 the Company ceased operations of the network in Atlantic County and subsequently classified the subsidiary as a discontinued operation. On November 1, 2018, the Company acquired Open Data Centers, LLC, 1stPoint Communications, LLC and its subsidiaries. 1stPoint and its subsidiaries possess CLEC licenses in Florida, New York State, and a nationwide CMRS (Commercial Mobile Radio Services) license. The companies operate data center facilities in Piscataway, New Jersey and Homewood, Alabama. On December 17, 2018, the Company closed the acquisition of Endstream Communications, LLC, a wholesale voice operator in the United States. On September 1, 2019, the Company acquired American Network Inc., which included vendor contracts, CLEC agreements and telephone number assets. |
NOTE 3 - SUMMARY OF SIGNIFICANT
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The interim financial statements for the three and nine months ending April 30, 2020 are unaudited. These financial statements are prepared in accordance with requirements for unaudited interim periods and consequently do not include all disclosures required to be in conformity with accounting principles generally accepted in the United States of America. The results of operations for the interim periods are not necessarily indicative of the results for the full year. In management's opinion, all adjustments necessary for a fair presentation of the Company's financial statements are reflected in the interim periods included and are of a normal recurring nature. These interim financial statements should be read in conjunction with the financial statements included in our Form 10-K, for the year ended July 31, 2019, as filed with the Securities and Exchange Commission (the SEC) at www.sec.gov Use of estimates The preparation of 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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents include cash in banks, money market funds and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. Property and equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the useful lives of the assets. For furniture and fixtures, the useful life is five years, Leasehold Improvements are depreciated over their respective lease terms. Expenditures for additions and improvements are capitalized. Repairs and maintenance are expensed as incurred. Impairment of long-lived assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted cash flows to be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not recognized any related impairment losses. Indefinite lived intangible assets The Company reviews property, plant and equipment, inventory component prepayments and certain identifiable intangibles, excluding goodwill, for impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If property, plant and equipment, inventory component prepayments and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair value. The Company has not recorded any related impairment losses. The Company does not amortize goodwill and intangible assets with indefinite useful lives, rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. The Company has not recorded any related impairment losses. Revenue recognition We adopted ASC 606 on August 1, 2018. Revenue is measured based on a consideration specified in a contract or agreement with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Incidental items that are immaterial in the context of the contract are recognized as expense. Unearned revenues are recorded when cash payments are received or due in advance of the performance of the services. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Income taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. As of April 30, 2020, the Company did not have any amounts recorded pertaining to uncertain tax positions. Fair value measurements The Company adopted the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 quoted prices in active markets for identical assets or liabilities Level 2 quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company has no assets or liabilities valued at fair value on a recurring basis. Level 3 Unobservable inputs reflecting managements assumptions about the inputs used in pricing the asset or liability. Consolidation of financial statements Hammer Fiber Optics Holdings Corp. is the parent company and sole shareholder of Hammer Wireless Corporation and its subsidiaries, 1stPoint Communications, LLC and its subsidiaries, which includes Shelcomm, Inc, Endstream Communications, LLC and American Network Inc.. The financial statements for Hammer Fiber Optics Holdings Corp. and its wholly-owned subsidiaries are reported on a consolidated basis. All significant intercompany accounts and transactions have been eliminated. Its subsidiaries Open Data Centers, LLC and Hammer Fiber Optics Investments, Ltd. are discontinued and are considered discontinued operations. Basic and Diluted Earnings (Loss) Per Share The basic earnings (loss) per share are calculated by dividing the Company's net income available to common shareholders by the weighted average number of common shares during the year. The diluted earnings (loss) per share is calculated by dividing the Company's net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company. As of April 30, 2020, and July 31, 2019, there were no common stock equivalents outstanding. Recent accounting pronouncements In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718) (ASU 2018-07). ASU 2018-07 provides for improvements to nonemployee share-based payment accounting by expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The awards will be measured at grant date, consistent with accounting for employee share-based payment awards. The measurement date has been redefined as the date at which the grantor and grantee reach a mutual understanding of the key terms and conditions of the award. The requirement to reassess classification of equity- classified awards upon vesting has been eliminated. We do not expect the adoption of this standard to have a material impact on the Companys financial statements. The Company adopted ASU 2018-07 August 1, 2018. In February 2016, FASB issued ASU No. 2016-02, Accounting Standards Update No. 2016-02, Leases (Topic 842). ASU 2016-02 provides for improvements for accounting guidance related to leasing treatments on financial statements as a response to user input. The update maintains two classifications of leases, Financial lease and Operating leases. The Update is effective for fiscal years beginning after December 2015, 2018. The company has not yet adopted this standard but there may be impact to the presentation of the Companys financial statements during the period of adoption. |
NOTE 4 - DISCONTINUED OPERATION
NOTE 4 - DISCONTINUED OPERATIONS | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 4 - DISCONTINUED OPERATIONS | NOTE 4 DISCONTINUED OPERATIONS Hammer Fiber Optics Investment Ltd ceased operations in the Atlantic County geographical market on October 31, 2018 when Verizon Communications, LLC terminated the spectrum lease agreement. The operations of Hammer Fiber Optics Investments, Ltd were classified as a discontinued operation. Reporting of the discontinued operation is in accordance with Accounting Standards Update No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Due to customer losses associated with the novel coronavirus and the loss of clients due to other causes, Open Data Centers, LLC will cease its operations. As of May 1, 2020 the operations of Open Data Centers, LLC were classified as a discontinued operation. Reporting of the discontinued operation is in accordance with Accounting Standards Update No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Open Data Centers has been organizing the orderly transition of its customers to another colocation service. The following summarizes the assets and liabilities of the discontinue operations: April 30, 2020 July 31, 2019 Cash and cash equivalents $ 9,903 $ 8,838 Accounts receivable 222,232 148,756 Property and equipment, net 107,054 1,387,120 Intangible assets 223,703 230,566 562,892 1,775,280 Accounts payable and accrued expenses 5,523,701 5,273,318 Loans payable 3,313,544 3,439,036 Rent concessions 114,595 125,445 Deferred Revenue 8,600 8,600 8,960,440 8,846,399 Net Assets (Liabilities) $ (8,397,548) $ (7,071,119) The following summarizes the operations of the discontinue operations: Three Months Ended Nine Months Ended April 30, 2020 April 30, 2019 April 30, 2020 April 30, 2019 Revenues $ 127,968 $ 182,817 $ 524,610 $ 301,176 Cost of sales 232,303 269,540 598,671 448,520 Selling, general and administrative expenses 5,046 4,613 30,544 110,377 Impairment expense - - - 6,807,753 Depreciation expense 2,587 3,881 10,348 203,881 239,936 278,034 639,563 7,570,531 Operating loss (111,968) (95,217) (114,953) (7,269,355) Other expenses 749 352 1,756 80,352 Net loss $ (112,717) $ (95,569) $ (116,709) $ (7,349,707) |
NOTE 5 - COMMITMENTS AND LEASES
NOTE 5 - COMMITMENTS AND LEASES | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 5 - COMMITMENTS AND LEASES | NOTE 5 COMMITMENTS AND LEASES Open Data Centers, LLC was committed to long term operating leases for its facility in Piscataway, New Jersey. There are four more years remaining on the lease, however, Open Data Centers LLCs ability to make these lease payments is in doubt. Hammer Fiber Optics Holdings Corp has no cross-corporate guarantees, nor are their any personal guarantees made by or on behalf of any directors or officers of Hammer. There are no successor entities. The future minimum lease payments are provided below: Amount For the fiscal year ended July 31, 2021 387,517.68 For the fiscal year ended July 31, 2022 399,143.16 For the fiscal year ended July 31, 2023 411,117.48 For the fiscal year ended July 31, 2024 423,450.96 |
NOTE 6 - GOING CONCERN
NOTE 6 - GOING CONCERN | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 6 - GOING CONCERN | NOTE 6 GOING CONCERN The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has consistently sustained losses since its inception. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a period of one year from the issuance of these financial statements. The Companys continuation as a going concern is dependent upon, among other things, its ability to increase revenues, adequately control operating expenses and receive debt and/or equity capital from third parties. No assurance can be given that the Company will be successful in these efforts. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company intends to continue to address this condition by seeking to raise additional capital through the issuance of debt and/or the sale of equity until such time that ongoing revenues can sustain the business, at which time capitalization may be considered through other means. |
NOTE 7 - PROPERTY AND EQUIPMENT
NOTE 7 - PROPERTY AND EQUIPMENT | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 7 - PROPERTY AND EQUIPMENT | NOTE 7 PROPERTY AND EQUIPMENT As of April 30, 2020 and July 31, 2019, property and equipment consisted of the following: April 30, July 31, 2020 2019 Life Computer and Telecom equipment $ 4,085,803 $ 1,091,357 5 years Buildings and Structures 4,658 4,999 4,090,461 1,096,356 Less: Accumulated depreciation (2,702,974) (959,861) Total $ 1,387,487 $ 136,495 |
NOTE 8 - INDEFINITE LIVED INTAN
NOTE 8 - INDEFINITE LIVED INTANGIBLE ASSETS | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 8 - INDEFINITE LIVED INTANGIBLE ASSETS | NOTE 8 INDEFINITE LIVED INTANGIBLE ASSETS The Company has $3,242,057 of recognized indefinite lived intangible assets, which consist of customer contract assets from acquisitions and goodwill. These assets are not amortized and are evaluated routinely for potential impairment. If a determination is made that the intangible asset is impaired after performing the initial qualitative assessment, the assets fair value will be calculated and compared with the carrying value to determine whether an impairment loss should be recognized. |
NOTE 9 - RELATED PARTY TRANSACT
NOTE 9 - RELATED PARTY TRANSACTIONS | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 9 - RELATED PARTY TRANSACTIONS | NOTE 9 RELATED PARTY TRANSACTIONS During the fiscal year ended July 31, 2016, the Company entered into two promissory notes with a related party for an aggregate amount of $2,400,000 and $1,000,000, respectively. The $2,400,000 note matured on January 4, 2019. The terms consist of ten principal and interest payments due quarterly in the amount of $300,000 for total payments of $3,000,000. The Company is currently in default on this loan. To date, the Company has made payments on this note amounting to $725,831. The payments were applied to interest accrued as of the time of payment as well as to principal. The principal balance was $2,294,067 at July 31, 2019 and 2018. The interest accrued was $219,434 at July 31, 2019. The $1,000,000 note matured on June 9, 2018 at which time the principal became due in its entirety, in addition to simple interest accrued at 3%. The company is currently in default on this loan. The party has agreed, in writing, to convert these notes into Common Stock and cure the default. As of October 31, 2018, all of the related party payables are reported as current liabilities in the Consolidated Balance Sheet. During the nine months ended April 30, 2020, the Company entered into a Stock Purchase Agreement with a related party on May 5, 2020 and May 30, 2020 in the amounts of $14,000 and $12,000 respectively. During the current fiscal year ending on July 31, 2020, the Company entered into convertible notes with Erik Levitt, the CEO of the company on April 20 th th th During the current fiscal year ending July 31, 2020, the Company entered into Stock Purchase Agreements from a related party in the amount of $10,000 on August 15, 2020, $25,000 on March 17, 2020, and $40,000 on March 26, 2020. |
NOTE 10 - STOCKHOLDERS' EQUITY
NOTE 10 - STOCKHOLDERS' EQUITY | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 10 - STOCKHOLDERS' EQUITY | NOTE 10 STOCKHOLDERS EQUITY Treasury Stock In July 2016, certain shareholders of the Company contributed 9,291,670 restricted shares of their common stock to the Companys wholly-owned subsidiary, Hammer Wireless Corporation (Treasury Shares), for the purpose of effecting acquisitions, joint ventures or other business combinations with third parties. According to ASC 810-10-45 Consolidations, these shares are accounted for as treasury stock. On January 4, 2019 the Company repurchased 13,000,000 shares of restricted Common Stock from substantial related-party shareholders. The shares of common stock were repurchased by the Company at $0.0001 per share. The repurchased shares were added to the Treasury stock of the Company and intend to be used for the purposes of effecting mergers, acquisitions, joint ventures, contractual relations and may be issued to investors under private placement agreements. In connection with the Equity Purchase Agreement with Peak One, the Company issued 350,000 shares of treasury stock. As a result of these transactions, the Company has a balance of 14,558,387 treasury shares as of April 30, 2020. |
NOTE 11 - FOREIGN CURRENCY
NOTE 11 - FOREIGN CURRENCY | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 11 - FOREIGN CURRENCY | NOTE 11 FOREIGN CURRENCY We transact business in various foreign currencies including the Euro and the Leone. In general, the functional currency of a foreign operation is the local countrys currency. Consequently, revenues and expenses of operations outside the United States are translated into USD Dollars using the weighted-average exchange rates on the period end date and assets and liabilities of operations outside the United States are translated into US Dollars using the change rate on the balance sheet dates. The effects of foreign currency translation adjustments are not material to the Companys accompanying financial statements. |
NOTE 12 - CLAIMS
NOTE 12 - CLAIMS | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 12 - CLAIMS | NOTE 12 CLAIMS The following parties have filed claims against Hammer Fiber Optics Investments Ltd and are not secured: Crown Castle Fiber FKA Lightower $ 1,544,621 Zayo Group, LLC $ 2,561,370 Calvi Electric $ 9209.69 Horizon Blue Cross $ 17,308.58 Cross River Fiber $ 273,220 Hammer Fiber Optics Investments Ltd reached a settlement agreement with Iron Mountain for $50,000 and already delivered the first payment of $25,000.00 to resolve the matter. The settlement agreement is secured by Hammer Fiber Optics Holdings Corp. Iron Mountain has not delivered in full the equipment it promised to return to the parent, Hammer Fiber Optics Holdings Corp and this settlement is currently in dispute. Hammer Fiber Optics Investments Ltd reached a settlement agreement with Bank of America for $3,000 and has met its obligations. The following parties have filed claims against Open Data Centers, LLC and are not secured: Foley Incorporated $ 5,703.69 The following parties have filed claims against 1stPoint Communications, LLC and are not secured: Shannon Walchuk $ 124,212.47 1stPoint Communications is attempting to come to an amicable resolution to this matter. Please see NOTE 14 SUBSEQUENT EVENTS below for further detail regarding the ongoing resolution of these claims. |
NOTE 13 - S-1 REGISTRATION STAT
NOTE 13 - S-1 REGISTRATION STATEMENT | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 13 - S-1 REGISTRATION STATEMENT | NOTE 13 S-1 REGISTRATION STATEMENT On October 8, 2019, the Company completed an Equity Purchase Agreement with Peak One Opportunity Fund (Peak One) and Peak One Investments, LLC (Peak One Investments) giving the Company the option to sell up to $10,000,000 worth of our common stock to Peak One (the Maximum Commitment Amount), in increments, over the period ending twenty-four (24) months after the date the Registration Statement is deemed effective by the SEC (the Commitment Period). Additionally, the Company is required to issue Commitment Fees of 175,000 Shares each to Peak One and Peak One Investments. The Company also has an October 8, 2019 Registration Rights Agreement with Peak One requiring us to file an S-1 Registration Statement providing for the registration of 13,350,000 Shares that result from our selling to Peak One an indeterminate number of shares up to an aggregate purchase price of $10,000,000 and the subsequent resale by Peak One of such shares. This S-1 was effective on February 1, 2020. |
NOTE 14 - SUBSEQUENT EVENTS
NOTE 14 - SUBSEQUENT EVENTS | 9 Months Ended |
Apr. 30, 2020 | |
Notes | |
NOTE 14 - SUBSEQUENT EVENTS | NOTE 14 SUBSEQUENT EVENTS On June 14, 2020, Michael P. Cothill tendered his resignation as the Executive Chairman, Treasurer and Principal Financial Officer of the Company. Mr. Cothill will continue as the Companys Non-Executive Chairman. Erik Levitt, the Companys Chief Executive Officer will assume the role of interim Principal Financial Officer. Open Data Centers, LLC has received a default notice from Corporate Place Partners, LLC and its ability to fulfill its obligations under the lease are in doubt. |
NOTE 3 - SUMMARY OF SIGNIFICA_2
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of presentation (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The interim financial statements for the three and nine months ending April 30, 2020 are unaudited. These financial statements are prepared in accordance with requirements for unaudited interim periods and consequently do not include all disclosures required to be in conformity with accounting principles generally accepted in the United States of America. The results of operations for the interim periods are not necessarily indicative of the results for the full year. In management's opinion, all adjustments necessary for a fair presentation of the Company's financial statements are reflected in the interim periods included and are of a normal recurring nature. These interim financial statements should be read in conjunction with the financial statements included in our Form 10-K, for the year ended July 31, 2019, as filed with the Securities and Exchange Commission (the SEC) at www.sec.gov |
NOTE 3 - SUMMARY OF SIGNIFICA_3
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of estimates (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Use of estimates | Use of estimates The preparation of 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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
NOTE 3 - SUMMARY OF SIGNIFICA_4
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and cash equivalents (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash in banks, money market funds and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. |
NOTE 3 - SUMMARY OF SIGNIFICA_5
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property and equipment (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Property and equipment | Property and equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the useful lives of the assets. For furniture and fixtures, the useful life is five years, Leasehold Improvements are depreciated over their respective lease terms. Expenditures for additions and improvements are capitalized. Repairs and maintenance are expensed as incurred. |
NOTE 3 - SUMMARY OF SIGNIFICA_6
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Impairment of long-lived assets (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Impairment of long-lived assets | Impairment of long-lived assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted cash flows to be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not recognized any related impairment losses. |
NOTE 3 - SUMMARY OF SIGNIFICA_7
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Indefinite lived intangible assets (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Indefinite lived intangible assets | Indefinite lived intangible assets The Company reviews property, plant and equipment, inventory component prepayments and certain identifiable intangibles, excluding goodwill, for impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If property, plant and equipment, inventory component prepayments and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair value. The Company has not recorded any related impairment losses. The Company does not amortize goodwill and intangible assets with indefinite useful lives, rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. The Company has not recorded any related impairment losses. |
NOTE 3 - SUMMARY OF SIGNIFICA_8
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue recognition (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Revenue recognition | Revenue recognition We adopted ASC 606 on August 1, 2018. Revenue is measured based on a consideration specified in a contract or agreement with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Incidental items that are immaterial in the context of the contract are recognized as expense. Unearned revenues are recorded when cash payments are received or due in advance of the performance of the services. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. |
NOTE 3 - SUMMARY OF SIGNIFICA_9
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income taxes (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Income taxes | Income taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. As of April 30, 2020, the Company did not have any amounts recorded pertaining to uncertain tax positions. |
NOTE 3 - SUMMARY OF SIGNIFIC_10
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair value measurements (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Fair value measurements | Fair value measurements The Company adopted the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 quoted prices in active markets for identical assets or liabilities Level 2 quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company has no assets or liabilities valued at fair value on a recurring basis. Level 3 Unobservable inputs reflecting managements assumptions about the inputs used in pricing the asset or liability. |
NOTE 3 - SUMMARY OF SIGNIFIC_11
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Consolidation of financial statements (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Consolidation of financial statements | Consolidation of financial statements Hammer Fiber Optics Holdings Corp. is the parent company and sole shareholder of Hammer Wireless Corporation and its subsidiaries, 1stPoint Communications, LLC and its subsidiaries, which includes Shelcomm, Inc, Endstream Communications, LLC and American Network Inc.. The financial statements for Hammer Fiber Optics Holdings Corp. and its wholly-owned subsidiaries are reported on a consolidated basis. All significant intercompany accounts and transactions have been eliminated. Its subsidiaries Open Data Centers, LLC and Hammer Fiber Optics Investments, Ltd. are discontinued and are considered discontinued operations. |
NOTE 3 - SUMMARY OF SIGNIFIC_12
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Earnings (Loss) Per Share (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Basic and Diluted Earnings (Loss) Per Share | Basic and Diluted Earnings (Loss) Per Share The basic earnings (loss) per share are calculated by dividing the Company's net income available to common shareholders by the weighted average number of common shares during the year. The diluted earnings (loss) per share is calculated by dividing the Company's net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company. As of April 30, 2020, and July 31, 2019, there were no common stock equivalents outstanding. |
NOTE 3 - SUMMARY OF SIGNIFIC_13
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recent accounting pronouncements (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Policies | |
Recent accounting pronouncements | Recent accounting pronouncements In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718) (ASU 2018-07). ASU 2018-07 provides for improvements to nonemployee share-based payment accounting by expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The awards will be measured at grant date, consistent with accounting for employee share-based payment awards. The measurement date has been redefined as the date at which the grantor and grantee reach a mutual understanding of the key terms and conditions of the award. The requirement to reassess classification of equity- classified awards upon vesting has been eliminated. We do not expect the adoption of this standard to have a material impact on the Companys financial statements. The Company adopted ASU 2018-07 August 1, 2018. In February 2016, FASB issued ASU No. 2016-02, Accounting Standards Update No. 2016-02, Leases (Topic 842). ASU 2016-02 provides for improvements for accounting guidance related to leasing treatments on financial statements as a response to user input. The update maintains two classifications of leases, Financial lease and Operating leases. The Update is effective for fiscal years beginning after December 2015, 2018. The company has not yet adopted this standard but there may be impact to the presentation of the Companys financial statements during the period of adoption. |
NOTE 4 - DISCONTINUED OPERATI_2
NOTE 4 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations - Assets and Liabilities (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Tables/Schedules | |
Schedule of Discontinued Operations - Assets and Liabilities | April 30, 2020 July 31, 2019 Cash and cash equivalents $ 9,903 $ 8,838 Accounts receivable 222,232 148,756 Property and equipment, net 107,054 1,387,120 Intangible assets 223,703 230,566 562,892 1,775,280 Accounts payable and accrued expenses 5,523,701 5,273,318 Loans payable 3,313,544 3,439,036 Rent concessions 114,595 125,445 Deferred Revenue 8,600 8,600 8,960,440 8,846,399 Net Assets (Liabilities) $ (8,397,548) $ (7,071,119) |
NOTE 4 - DISCONTINUED OPERATI_3
NOTE 4 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations - Net Loss (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Tables/Schedules | |
Schedule of Discontinued Operations - Net Loss | Three Months Ended Nine Months Ended April 30, 2020 April 30, 2019 April 30, 2020 April 30, 2019 Revenues $ 127,968 $ 182,817 $ 524,610 $ 301,176 Cost of sales 232,303 269,540 598,671 448,520 Selling, general and administrative expenses 5,046 4,613 30,544 110,377 Impairment expense - - - 6,807,753 Depreciation expense 2,587 3,881 10,348 203,881 239,936 278,034 639,563 7,570,531 Operating loss (111,968) (95,217) (114,953) (7,269,355) Other expenses 749 352 1,756 80,352 Net loss $ (112,717) $ (95,569) $ (116,709) $ (7,349,707) |
NOTE 5 - COMMITMENTS AND LEAS_2
NOTE 5 - COMMITMENTS AND LEASES: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | Amount For the fiscal year ended July 31, 2021 387,517.68 For the fiscal year ended July 31, 2022 399,143.16 For the fiscal year ended July 31, 2023 411,117.48 For the fiscal year ended July 31, 2024 423,450.96 |
NOTE 7 - PROPERTY AND EQUIPME_2
NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property, Plant and Equipment (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Tables/Schedules | |
Schedule of Property, Plant and Equipment | April 30, July 31, 2020 2019 Life Computer and Telecom equipment $ 4,085,803 $ 1,091,357 5 years Buildings and Structures 4,658 4,999 4,090,461 1,096,356 Less: Accumulated depreciation (2,702,974) (959,861) Total $ 1,387,487 $ 136,495 |
NOTE 12 - CLAIMS_ Schedule of C
NOTE 12 - CLAIMS: Schedule of Claims (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Tables/Schedules | |
Schedule of Claims | Crown Castle Fiber FKA Lightower $ 1,544,621 Zayo Group, LLC $ 2,561,370 Calvi Electric $ 9209.69 Horizon Blue Cross $ 17,308.58 Cross River Fiber $ 273,220 |
NOTE 2 - CORPORATE HISTORY AN_2
NOTE 2 - CORPORATE HISTORY AND BACKGROUND ON MERGER (Details) | 9 Months Ended |
Apr. 30, 2020 | |
Details | |
Entity Incorporation, State or Country Code | NV |
Entity Incorporation, Date of Incorporation | Sep. 23, 2010 |
Entity Information, Former Legal or Registered Name | Recursos Montana S.A. |
NOTE 4 - DISCONTINUED OPERATI_4
NOTE 4 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations - Assets and Liabilities (Details) - USD ($) | Apr. 30, 2020 | Jul. 31, 2019 |
Details | ||
Discontinued Operations - Cash and cash equivalents | $ 9,903 | $ 8,838 |
Discontinued Operations - Accounts receivable | 222,232 | 148,756 |
Discontinued Operations - Property and equipment, net | 107,054 | 1,387,120 |
Discontinued Operations - Intangible assets | 223,703 | 230,566 |
Discontinued Operations - Assets (Gross) | 562,892 | 1,775,280 |
Discontinued Operations - Accounts payable and accrued expenses | 5,523,701 | 5,273,318 |
Discontinued Operations - Loans payable | 3,313,544 | 3,439,036 |
Discontinued Operations - Rent concessions | 114,595 | 125,445 |
Discontinued Operations - Deferred Revenue | 8,600 | 8,600 |
Discontinued Operations - Liabilities (Gross) | 8,960,440 | 8,846,399 |
Discontinued Operations - Net Assets (Liabilities) | $ (8,397,548) | $ (7,071,119) |
NOTE 4 - DISCONTINUED OPERATI_5
NOTE 4 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations - Net Loss (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Details | ||||
Discontinued Operations - Revenues | $ 127,968 | $ 182,817 | $ 524,610 | $ 301,176 |
Discontinued Operations - Cost of sales | 232,303 | 269,540 | 598,671 | 448,520 |
Discontinued Operations - Selling, general and administrative expenses | 5,046 | 4,613 | 30,544 | 110,377 |
Discontinued Operations - Impairment expense | 0 | 0 | 0 | 6,807,753 |
Discontinued Operations - Depreciation expense | 2,587 | 3,881 | 10,348 | 203,881 |
Discontinued Operations - Operating Expenses | 239,936 | 278,034 | 639,563 | 7,570,531 |
Discontinued Operations - Operating Income (Loss) | (111,968) | (95,217) | (114,953) | (7,269,355) |
Discontinued Operations - Other expenses | 749 | 352 | 1,756 | 80,352 |
Discontinued Operations - Net Income (Loss) | $ (112,717) | $ (95,569) | $ (116,709) | $ (7,349,707) |
NOTE 5 - COMMITMENTS AND LEAS_3
NOTE 5 - COMMITMENTS AND LEASES: Schedule of Future Minimum Rental Payments for Operating Leases (Details) - Open Data Centers, LLC | Apr. 30, 2020USD ($) |
For the fiscal year ended July 31, 2021 | $ 387,517.68 |
For the fiscal year ended July 31, 2022 | 399,143.16 |
For the fiscal year ended July 31, 2023 | 411,117.48 |
For the fiscal year ended July 31, 2024 | $ 423,450.96 |
NOTE 7 - PROPERTY AND EQUIPME_3
NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property, Plant and Equipment (Details) - USD ($) | 9 Months Ended | |
Apr. 30, 2020 | Jul. 31, 2019 | |
Property, Plant and Equipment, Gross | $ 4,090,461 | $ 1,096,356 |
Less: Accumulated depreciation | (2,702,974) | (959,861) |
Total | $ 1,387,487 | 136,495 |
Computer and Telecom equipment | ||
Life | 5 years | |
Property, Plant and Equipment, Gross | $ 4,085,803 | 1,091,357 |
Other Machinery and Equipment | ||
Property, Plant and Equipment, Gross | $ 4,658 | $ 4,999 |
NOTE 8 - INDEFINITE LIVED INT_2
NOTE 8 - INDEFINITE LIVED INTANGIBLE ASSETS (Details) | Apr. 30, 2020USD ($) |
Details | |
Intangible Assets, Net (Excluding Goodwill) | $ 3,242,057 |
NOTE 9 - RELATED PARTY TRANSA_2
NOTE 9 - RELATED PARTY TRANSACTIONS (Details) - USD ($) | 9 Months Ended | |
Apr. 30, 2020 | Jul. 31, 2019 | |
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 | $ 219,434 | |
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 | |
Debt Instrument, Maturity Date | Jun. 9, 2018 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% |
NOTE 12 - CLAIMS_ Schedule of_2
NOTE 12 - CLAIMS: Schedule of Claims (Details) | 9 Months Ended |
Apr. 30, 2020USD ($) | |
Crown Castle Fiber FKA Lightower | |
Amount of Claim | $ 1,544,621 |
Zayo Group, LLC | |
Amount of Claim | 2,561,370 |
Calvi Electric | |
Amount of Claim | 9,209.69 |
Horizon Blue Cross | |
Amount of Claim | 17,308.58 |
Cross River Fiber | |
Amount of Claim | $ 273,220 |
NOTE 14 - SUBSEQUENT EVENTS (De
NOTE 14 - SUBSEQUENT EVENTS (Details) | 9 Months Ended |
Apr. 30, 2020 | |
Details | |
Subsequent Event, Date | Jun. 14, 2020 |
Subsequent Event, Description | Michael P. Cothill tendered his resignation as the Executive Chairman, Treasurer and Principal Financial Officer of the Company |