Cover
Cover - shares | 9 Months Ended | |
Apr. 30, 2023 | Jun. 13, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | My City Builders, Inc. | |
Entity Central Index Key | 0001556801 | |
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, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 586,686 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55233 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 27-3816969 | |
Entity Interactive Data Current | Yes | |
Entity Address City Or Town | Miami | |
Entity Address State Or Province | FL | |
Entity Address Postal Zip Code | 33132 | |
City Area Code | 786 | |
Local Phone Number | 553-4006 | |
Entity Address Address Line 1 | 100 Biscayne Blvd | |
Entity Address Address Line 2 | #1611 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 30, 2023 | Jul. 31, 2022 |
Current Assets | ||
Cash | $ 58,048 | $ 718 |
Loan receivable | 358,685 | 336,480 |
Accrued interest income | 4,163 | 0 |
Total Current Assets | 420,896 | 337,198 |
Construction in progress | 479,810 | 0 |
Investment | 2,679,500 | 0 |
TOTAL ASSETS | 3,580,206 | 337,198 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 192,690 | 13,075 |
Deferred interest income | 0 | 6,748 |
Due to related parties | 3,210,022 | 8,812 |
Total Current Liabilities | 3,402,712 | 28,635 |
TOTAL LIABILITIES | 3,402,712 | 28,635 |
Equity | ||
Common stock: 300,000,000 authorized; $0.001 par value 586,686 and 595,986 shares issued and outstanding, respectively | 587 | 596 |
Additional paid in capital | 331,114 | 331,105 |
Accumulated deficit | (154,306) | (23,238) |
Total stockholders' equity. | 177,495 | 308,563 |
Noncontrolling interests | (1) | 0 |
Total Equity | 177,494 | 308,563 |
TOTAL LIABILITIES AND EQUITY | 3,580,206 | 337,198 |
Series A Preferred Stock | ||
Equity | ||
Preferred stock: 10,000,000 authorized; $0.001 par value Series A preferred stock 100,000 designated; $0.001 par value 100,000 shares issued and outstanding | $ 100 | $ 100 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2023 | Jul. 31, 2022 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 586,686 | 595,986 |
Common stock, shares outstanding | 586,686 | 595,986 |
Series A Preferred Stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, designated | 100,000 | 100,000 |
Preferred stock, shares issued | 100,000 | 100,000 |
Preferred stock, shares outstanding | 100,000 | 100,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended |
Apr. 30, 2023 | Apr. 30, 2023 | |
Consolidated Statement of Operations (Unaudited) | ||
Interest income | $ 12,249 | $ 40,073 |
Operating expenses | ||
General and administrative | 5,217 | 6,100 |
Professional fees | 19,218 | 77,362 |
Total operating expenses | 24,435 | 83,462 |
Loss from operations | (12,186) | (43,389) |
Other income and expense | ||
Interest expense- related parties | (45,680) | (87,680) |
Total other expense | (45,680) | (87,680) |
Loss before income taxes | (57,866) | (131,069) |
Provision for income taxes | 0 | 0 |
Net Loss | (57,866) | (131,069) |
Less: Net loss attributable to noncontrolling interests | (1) | (1) |
Net loss attributable to stockholders of My City Builders, Inc. | $ (57,865) | $ (131,068) |
Basic and diluted loss per share of common stock | $ (0.10) | $ (0.22) |
Basic weighted average number of common shares outstanding | 592,304 | 594,786 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total StockHolders Equity [Member] | Noncontrolling Interest | Preferred Stock Series A Member |
Balance, shares at Jul. 31, 2022 | 595,986 | 100,000 | |||||
Balance, amount at Jul. 31, 2022 | $ 308,563 | $ 596 | $ 331,105 | $ (23,238) | $ 308,563 | $ 0 | $ 100 |
Net loss | (22,197) | $ 0 | 0 | (22,197) | (22,197) | 0 | $ 0 |
Balance, shares at Oct. 31, 2022 | 595,986 | 100,000 | |||||
Balance, amount at Oct. 31, 2022 | 286,366 | $ 596 | 331,105 | (45,435) | 286,366 | 0 | $ 100 |
Balance, shares at Jul. 31, 2022 | 595,986 | 100,000 | |||||
Balance, amount at Jul. 31, 2022 | 308,563 | $ 596 | 331,105 | (23,238) | 308,563 | 0 | $ 100 |
Net loss | (131,069) | ||||||
Balance, shares at Apr. 30, 2023 | 586,686 | 100,000 | |||||
Balance, amount at Apr. 30, 2023 | 177,494 | $ 587 | 331,114 | (154,306) | 177,495 | (1) | $ 100 |
Balance, shares at Oct. 31, 2022 | 595,986 | 100,000 | |||||
Balance, amount at Oct. 31, 2022 | 286,366 | $ 596 | 331,105 | (45,435) | 286,366 | 0 | $ 100 |
Net loss | (51,006) | $ 0 | 0 | (51,006) | (51,006) | 0 | $ 0 |
Balance, shares at Jan. 31, 2023 | 595,986 | 100,000 | |||||
Balance, amount at Jan. 31, 2023 | 235,360 | $ 596 | 331,105 | (96,441) | 235,360 | 0 | $ 100 |
Net loss | (57,866) | (57,865) | (57,865) | (1) | |||
Common stock cancelled, shares | (10,000) | ||||||
Common stock cancelled, amount | 0 | $ (10) | 10 | 0 | 0 | 0 | 0 |
Reverse stock split adjustment, shares | 700 | ||||||
Reverse stock split adjustment, amount | 0 | $ 1 | (1) | 0 | 0 | 0 | $ 0 |
Balance, shares at Apr. 30, 2023 | 586,686 | 100,000 | |||||
Balance, amount at Apr. 30, 2023 | $ 177,494 | $ 587 | $ 331,114 | $ (154,306) | $ 177,495 | $ (1) | $ 100 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) | 9 Months Ended |
Apr. 30, 2023 USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |
Net loss | $ (131,069) |
Changes in operating assets and liabilities: | |
Accrued interest income | (4,163) |
Accounts payable and accrued liabilities | (2,348) |
Deferred interest income | (6,748) |
Due to related parties | 38,710 |
Net cash used in operating activities | (105,618) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |
Investment | (2,679,500) |
Advance on loan receivable | (179,310) |
Collection of loan receivable | 157,105 |
Collection of loan receivable for third party investor | 181,963 |
Payment for construction | (479,810) |
Net cash used in investing activities | (2,999,552) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |
Advances from related parties | 4,039,300 |
Repayments to related parties | (876,800) |
Net cash provided by financing activities | 3,162,500 |
Net change in cash | 57,330 |
Cash, beginning of period | 718 |
Cash, end of period | 58,048 |
Supplemental cash flow information | |
Cash paid for interest | 87,680 |
Cash paid for taxes | 0 |
Non-cash transactions: | |
Common stock cancelled | 10 |
Reverse stock split adjustment | $ 1 |
ORGANIZATION AND BUSINESS OPERA
ORGANIZATION AND BUSINESS OPERATIONS | 9 Months Ended |
Apr. 30, 2023 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1 - ORGANIZATION AND BUSINESS OPERATIONS My City Builders, Inc. (the “Company” or “My City Builders”) is a Nevada corporation incorporated on October 26, 2010 under the name Oconn Industries Corp. The Company’s name was changed on March 11, 2014 from Oconn Industries Corp. to Diamante Minerals, Inc., and to iMine Corporation on March 20, 2018 and to My City Builders, Inc on January 31, 2023. In July 2022, the Company acquired RAC Real Estate Acquisition Corp, a Wyoming Corporation ("RAC"). RAC is now a wholly owned subsidiary of the Company. The Company, through RAC, plans to focus on real estate transactions, in which the Company will buy and develop real estate for sale or rent of low-income housing. The Company plans to invest in three sectors of this market by (i) buying, refurbishing, and selling traditional foreclosures, (ii) buying, developing, and renting “Land Banks” that have an average pool of homes or lots in excess of 100 in one location and (iii) buying, refurbishing or developing and selling homes made available by the government through HECM pools. On March 27, 2023, RAC, a wholly owned subsidiary of the Company entered into a Limited Liability Company Agreement dated effective March 27, 2023, (the “Agreement”) with, Frank Gillen, an individual (“Mr. Gillen”) and Michael Colvard, an individual (“Mr. Colvard”). As a result of the Agreement, RAC, Mr. Gillen and Mr. Colvard formed a limited liability company called RAC Gadsden, LLC (“Gadsden”) incorporated in the state of Alabama. Gadsden will continue until terminated pursuant to the Agreement or as provided for under the laws of Alabama. The purpose of Gadsden is to purchase, finance, collateralize, improve, rehabilitate, market, sell or lease property. Gadsden has three members, RAC, Mr. Gillen and Mr. Colvard with an initial contribution of $98, $1 and $1, respectively, in exchange for a membership interest of 98%, 1%, and 1%, respectively. Each member is entitled to vote in accordance with their respective membership interest. Gadsden is a member managed LLC. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Apr. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of Interim Information The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) for interim financial information and with Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. Notes to the unaudited interim consolidated financial statements that would substantially duplicate the disclosures contained in the audited consolidated financial statements for the year ended July 31, 2022 have been omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the footnotes thereto for the fiscal year ended July 31, 2022 included within the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s periodic filings with the SEC include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company. Cash and Cash Equivalents For purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. The Company had no cash equivalents at April 30, 2023. Periodically, the Company may carry cash balances at financial institutions more than the federally insured limit of $250,000 per institution. The Company has not experienced losses on account balances and management believes, based upon the quality of the financial institutions, that the credit risk with regard to these deposits is not significant. Principles of Consolidation The consolidated financial statements include the accounts of My City Builders and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. Fair Value Measurements As defined in ASC 820” Fair Value Measurements,” Investments in Equity and Debt Equity investments with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured using the equity method or measured at cost with adjustments for observable changes in price or impairments. We perform a qualitative assessment on a periodic basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Changes in value are recorded in other income (expense), net. The Company’s debt securities are primarily invested in a third-party vendor and asset management company, to purchase, develop and manage real estate properties. Given the nature of lending to these types of businesses, substantially all of the Company’s investments in these portfolio companies are considered Level 3 assets under ASC Topic 820 because there generally is no known or accessible market or market indexes for debt instruments for these investment securities to be traded or exchanged. The Company may, from time to time, invest in public debt of companies that meet the Company’s investment objectives, and to the extent market quotations or other pricing indicators (i.e., broker quotes) are available, these investments are considered Level 1 or 2 assets in line with ASC Topic 820. Construction in progress Construction in progress generally involves short-term capital projects and is not depreciated until the development has reached completion and has been put into service. Revenue Recognition The Company recognizes revenue in accordance with Topic 606, which requires the Company to recognize revenues when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. The Company recognizes revenue based on the five criteria for revenue recognition established under Topic 606: 1) identify the contract, 2) identify separate performance obligations, 3) determine the transaction price, 4) allocate the transaction price among the performance obligations, and 5) recognize revenue as the performance obligations are satisfied. The Company records interest income on an accrual basis and recognizes it as earned in accordance with the contractual terms of the loan agreement and underlying debt instrument, to the extent that such amounts are expected to be collected. Debt investments are placed on non-accrual status when it is probable that principal, interest or fees will not be collected according to contractual terms. When a debt investment is placed on non-accrual status, the Company ceases to recognize interest and fee income until the portfolio company has paid all principal and interest due or demonstrated the ability to repay its current and future contractual obligations to the Company. The Company may not apply the non-accrual status to a loan where the investment has sufficient collateral value to collect all of the contractual amount due and is in the process of collection. Interest collected on non-accrual investments are generally applied to principal. Net Loss per Share of Common Stock The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock are computed by dividing net earnings by the weighted average number of shares and potential shares outstanding during the period. Potential shares of common stock consist of shares to be issued taken into account the effect of dilutive instruments. As of April 30, 2023, there were 100,000 shares of series A preferred stock, that were not included in the calculation of dilutive earnings per share as their effect would be anti-dilutive. Recent Accounting Pronouncements The Company has implemented all new pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial statements or results of operations. |
GOING CONCERN AND LIQUIDITY CON
GOING CONCERN AND LIQUIDITY CONSIDERATIONS | 9 Months Ended |
Apr. 30, 2023 | |
GOING CONCERN AND LIQUIDITY CONSIDERATIONS | |
GOING CONCERN AND LIQUIDITY CONSIDERATIONS | NOTE 3 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. During the period ended April 30, 2023, the Company incurred a net loss of $131,069. As of April 30, 2023, the Company had an accumulated deficit of $154,306. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to raise necessary funding through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ended July 31, 2023. However, until the Company engages in an active business or makes an acquisition the Company is likely to not be able to raise any significant debt or equity financing. The ability of the Company to begin operations in its new business model is dependent upon, among other things, obtaining financing to commence operations and develop a business plan or making an acquisition. The Company cannot give any assurance as to its ability to develop or acquire a business or to operate profitably. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
LOAN RECEIVABLE
LOAN RECEIVABLE | 9 Months Ended |
Apr. 30, 2023 | |
LOAN RECEIVABLE | |
LOAN RECEIVABLE | NOTE 4 – LOAN RECEIVABLE On July 22, 2022, the Company received a promissory note, in the principal amount of $672,960 from, and entered into a Loan Agreement dated July 18, 2022, with, Fix Pads Holdings, LLC. The note has a 12% interest rate per annum payable of $672,960 and all principal and accrued interest are paid in full by July 1, 2023. Consideration for the note was paid in part by the Company in the amount of $328,626, net of prepayment interest and in part by a third-party investor in the amount of $328,626. On August 18, 2022, the Company issued the promissory note. The note has a 12% interest rate per annum payable of $358,620 and is due on August 1, 2023. Consideration for the note was paid in part by the Company in the amount of $175,007, net of prepayment interest and in part by a third-party investor in the amount of $175,007. During the nine months ended April 30, 2023, the Company collected principal of $314,211 and interest of $54,020, of which principal of $157,105 and interest of $24,858 were collected on behalf of a third-party investor. During the nine months ended April 30, 2023, the Company recorded interest income of $40,073. As of April 30, 2023, and July 31, 2022, the Company recorded accrued interest income of $4,163 and $0, and deferred interest income of $0 and $6,748, respectively. |
INVESTMENT
INVESTMENT | 9 Months Ended |
Apr. 30, 2023 | |
INVESTMENT | |
INVESTMENT | NOTE 5 – INVESTMENT On October 4, 2022, the Company, through RAC, entered into a Limited Liability Agreement with Fix Pads Holdings, LLC ("Fix Pads"). As a result of the agreement, RAC and Fix Pads formed a limited liability company called RAC FIXPADS II, LLC (“LLC”), incorporated in the state of Delaware. The LLC has two members RAC and Fix Pads, both providing an initial contribution to the LLC of $1,000 in exchange for a 50% membership interest represented by an issuance of 1,000 Units of the LLC to each party. Each member is entitled to one vote per member. The LLC is managed by a manager, Fix Pads. The agreement provides that additional capital contributions of the members will be made to the LLC as follows: (i) Fix Pads will transfer and assign all rights to and incidents of ownership for up to 60 residential properties it has title, or will have title, to the LLC, as set forth in the agreement; and (ii) RAC will make additional cash contributions to the capital of the LLC, up to a maximum of $5,214,000, on such dates and in such amounts as requested by the LLC, in the manner set forth in the agreement. From the sale of each property by the LLC, the Company shall receive $13,000 and the average additional cash capital contribution per property. During the nine months ended April 30, 2023, the Company invested $2,679,500 and did not record any impairment loss. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Apr. 30, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 6 - RELATED PARTY TRANSACTIONS During the nine months ended April 30, 2023, the Company's shareholders paid operating expenses of $38,710 on behalf of the Company. The advances are unsecured, due on demand and non-bearing interest. During the nine months ended April 30, 2023, the Company’s related party advanced $2,377,300 to the Company. The advances are unsecured, due on demand and non-bearing interest. During the nine months ended April 30, 2023, the Company’s officers advanced $170,000 to the Company. The advances are unsecured, due on demand and interest 10% of advanced amount will be interest expense when the Company repays. During the nine months ended April 30, 2023, the Company’s related parties advanced $1,492,000 and the Company repaid $876,800. The advances are unsecured, payable during the period of five to ten months with interest of a range from 12% to 24% annual. During the nine months ended April 30, 2023, the Company recognized interest expense of $87,680. As of April 30, 2023, and July 31, 2022, the Company had due to related parties of $3,210,022 and $8,812, respectively. |
EQUITY
EQUITY | 9 Months Ended |
Apr. 30, 2023 | |
EQUITY | |
EQUITY | NOTE 7 - EQUITY Authorized Preferred Stock The Company has authorized 10,000,000 shares of preferred stock at par value of $0.001 per share. Series A Preferred stock The Company has designated 100,000 shares of preferred stock at par value of $0.001 per share. As of April 30, 2023, and July 31, 2022, the Company had 100,000 shares of Series A preferred stock issued and outstanding. Authorized Common Stock The Company has authorized 300,000,000 shares of common stock at par value of $0.001 per share. Each share of common stock entitles the holder to one vote on any matter on which action of the stockholders of the corporation is sought. During the nine months ended April 30, 2023, the Company issued 700 shares of common stock for an adjustment of reverse stock split in June 2022. During the nine months ended April 30, 2023, a shareholder returned 10,000 shares of common stock and the Company canceled 10,000 shares of common stock. As of April 30, 2023, and July 31, 2022, the Company had 586,686 and 595,986 shares of common stock issued and outstanding, respectively. As of April 30, 2023, and July 31, 2022, the Company had no options and warrants outstanding. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Apr. 30, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 8 - SUBSEQUENT EVENTS On May 19, 2023, RAC filed a complaint for breach of two promissory notes entered into with Fix Pads Holdings, LLC and for injunctive relief in the 11 th Management has evaluated subsequent events through April 30, 2023, the date on which the financial statements are available to be issued. All subsequent events requiring recognition as of April 30, 2023 have been incorporated into these consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Apr. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Presentation of Interim Information | The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) for interim financial information and with Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. Notes to the unaudited interim consolidated financial statements that would substantially duplicate the disclosures contained in the audited consolidated financial statements for the year ended July 31, 2022 have been omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the footnotes thereto for the fiscal year ended July 31, 2022 included within the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. |
Use of Estimates | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s periodic filings with the SEC include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company. |
Cash and Cash Equivalents | For purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. The Company had no cash equivalents at April 30, 2023. Periodically, the Company may carry cash balances at financial institutions more than the federally insured limit of $250,000 per institution. The Company has not experienced losses on account balances and management believes, based upon the quality of the financial institutions, that the credit risk with regard to these deposits is not significant. |
Principles of Consolidation | The consolidated financial statements include the accounts of My City Builders and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. |
Fair Value Measurements | As defined in ASC 820” Fair Value Measurements,” |
Investments in Equity and Debt | Equity investments with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured using the equity method or measured at cost with adjustments for observable changes in price or impairments. We perform a qualitative assessment on a periodic basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Changes in value are recorded in other income (expense), net. The Company’s debt securities are primarily invested in a third-party vendor and asset management company, to purchase, develop and manage real estate properties. Given the nature of lending to these types of businesses, substantially all of the Company’s investments in these portfolio companies are considered Level 3 assets under ASC Topic 820 because there generally is no known or accessible market or market indexes for debt instruments for these investment securities to be traded or exchanged. The Company may, from time to time, invest in public debt of companies that meet the Company’s investment objectives, and to the extent market quotations or other pricing indicators (i.e., broker quotes) are available, these investments are considered Level 1 or 2 assets in line with ASC Topic 820. |
Construction in progress | Construction in progress generally involves short-term capital projects and is not depreciated until the development has reached completion and has been put into service. |
Revenue Recognition | The Company recognizes revenue in accordance with Topic 606, which requires the Company to recognize revenues when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. The Company recognizes revenue based on the five criteria for revenue recognition established under Topic 606: 1) identify the contract, 2) identify separate performance obligations, 3) determine the transaction price, 4) allocate the transaction price among the performance obligations, and 5) recognize revenue as the performance obligations are satisfied. The Company records interest income on an accrual basis and recognizes it as earned in accordance with the contractual terms of the loan agreement and underlying debt instrument, to the extent that such amounts are expected to be collected. Debt investments are placed on non-accrual status when it is probable that principal, interest or fees will not be collected according to contractual terms. When a debt investment is placed on non-accrual status, the Company ceases to recognize interest and fee income until the portfolio company has paid all principal and interest due or demonstrated the ability to repay its current and future contractual obligations to the Company. The Company may not apply the non-accrual status to a loan where the investment has sufficient collateral value to collect all of the contractual amount due and is in the process of collection. Interest collected on non-accrual investments are generally applied to principal. |
Net Loss per Share of Common Stock | The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock are computed by dividing net earnings by the weighted average number of shares and potential shares outstanding during the period. Potential shares of common stock consist of shares to be issued taken into account the effect of dilutive instruments. As of April 30, 2023, there were 100,000 shares of series A preferred stock, that were not included in the calculation of dilutive earnings per share as their effect would be anti-dilutive. |
Recent Accounting Pronouncements | The Company has implemented all new pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial statements or results of operations. |
ORGANIZATION AND BUSINESS OPE_2
ORGANIZATION AND BUSINESS OPERATIONS (Details Narrative) | 9 Months Ended |
Apr. 30, 2023 USD ($) | |
RAC | |
Contribution | $ 98 |
Membership Interest | 98% |
Mr. Gillen | |
Contribution | $ 1 |
Membership Interest | 1% |
Mr. Colvard | |
Contribution | $ 1 |
Membership Interest | 1% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 9 Months Ended |
Apr. 30, 2023 USD ($) shares | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Antidilutive securities excluded from computation of earnings per share, amount | shares | 100,000 |
Federally insured cash | $ | $ 250,000 |
GOING CONCERN AND LIQUIDITY C_2
GOING CONCERN AND LIQUIDITY CONSIDERATIONS (Details Narrative) - USD ($) | 9 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | |
GOING CONCERN AND LIQUIDITY CONSIDERATIONS | |||
Net loss | $ (131,069) | $ 131,069 | |
Accumulated deficit | $ (154,306) | $ (154,306) | $ (23,238) |
LOAN RECEIVABLE (Details Narrat
LOAN RECEIVABLE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 18, 2022 | Apr. 30, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | Jul. 22, 2022 | |
LOAN RECEIVABLE | |||||
Interest rate on promissory note | 12% | 12% | |||
Note payable, value | $ 672,960 | ||||
Promissory note | $ 358,620 | $ 672,960 | |||
Company collected on principal amount | $ 314,211 | ||||
Consideration for notes paid by company | 175,007 | 328,626 | |||
Consideration for notes paid by third party investor | $ 175,007 | 328,626 | |||
Interest income | $ 12,249 | 40,073 | |||
Interest income of collected on behalf of third-party investor | 24,858 | ||||
Company collected on behalf of third party investor | 157,105 | ||||
Interest income of collected principal | 54,020 | ||||
Accrued interest income | 4,163 | 4,163 | $ 0 | ||
Deferred interest income | $ 0 | $ 0 | $ 6,748 |
INVESTMENT (Details Narrative)
INVESTMENT (Details Narrative) - USD ($) | 9 Months Ended | |
Oct. 04, 2022 | Apr. 30, 2023 | |
INVESTMENT | ||
Initial contribution | $ 1,000 | |
Percentage of membership interest | 50% | |
Issuance of LLC units to each party | $ 1,000 | |
Additional cash contribution | 5,214,000 | |
Investment in company | $ 2,679,500 | |
Sale of each Property by the LLC, Company receive average additional cash capital contribution | $ 13,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | |
Apr. 30, 2023 | Jul. 31, 2022 | |
Due to related parties | $ 3,210,022 | $ 8,812 |
Advanced to the company | 2,377,300 | |
Operating expenses | 38,710 | |
Related Parties [Member] | ||
Advanced to the company | 1,492,000 | |
Repayment of expenses | $ 876,800 | |
Description of advances unsecured, payable | The advances are unsecured, payable during the period of five to ten months with interest of a range from 12% to 24% annual | |
Interest | $ 87,680 | |
Officers [Member] | ||
Advanced to the company | $ 170,000 | |
Description of advances unsecured, payable | The advances are unsecured, due on demand and interest 10% of advanced amount will be interest expense when the Company repays |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - $ / shares | Apr. 30, 2023 | Jul. 31, 2022 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock cancelled by company | 10,000 | |
Common stock returned by shareholders | 10,000 | |
Common stock, shares issued | 586,686 | 595,986 |
Common stock issued for adjustments | 700 | |
Common stock, shares outstanding | 586,686 | 595,986 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock at par value | $ 0.001 | $ 0.001 |
Series A Preferred Stock | ||
Preferred stock at par value | $ 0.001 | $ 0.001 |
Preferred stock, designated | 100,000 | 100,000 |
Preferred Stock, Issued | 100,000 | 100,000 |
Preferred Stock, Outstanding | 100,000 | 100,000 |