Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2019 | Sep. 11, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | OBITX, Inc. | |
Entity Central Index Key | 0001730869 | |
Entity FIle Number | 333-222978 | |
Document Type | 10-Q/A | |
Document Period End Date | Jul. 31, 2019 | |
Amendment Flag | true | |
Amendment Description | OBITX, Inc. (the “Company”) is filing this Amendment #1 on Form 10-Q/A (the Amendment”) to the Company’s quarter report on Form 10-Q for the period ended July 31, 2019 (the “Form 10-Q”), filed with the Securities and Exchange Commission on September 13, 2019 (the “Original Filing Date”), is solely for the purpose of furnishing Exhibit 101 – Interactive Data File (XBRL Exhibit) required by Rule 405 of Regulation S-T, which was not included with the Original Filing. No other changes have been made to the Form 10-Q. This Amendment speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date and does not modify or update in any way disclosures made in the original Form 10-Q. | |
Current Fiscal Year End Date | --01-31 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Is Entity a Shell Company | false | |
Is Entity's Interactive Date Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 10,460,000 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2019 | Jan. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | ||
Accounts receivable, net | 4,500 | |
Assets held for Sale | 408,166 | |
Prepaid expenses | 50 | 149 |
Total current assets | 50 | 412,815 |
Property, plant and equipment, net | 2,203,004 | 2,445,322 |
Intangible assets, net | 4,284 | 5,576 |
Total assets | 2,207,338 | 2,863,713 |
Current liabilities | ||
Accounts payable and accrued expenses | 140,880 | 143,702 |
Due to Related Party | 295,001 | 707,680 |
Total current liabilities | 435,881 | 851,382 |
Accounts Payable , Noncurrent Portion | 89,055 | |
Due to Related Party, Noncurrent Portion | 12,000 | |
Total noncurrent liabilities | 101,055 | |
Total Liabilities | 536,936 | 851,382 |
Stockholders' equity | ||
Series A Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding, as of July 31, 2019 and 100,000 shares issued and outstanding, as of January 31, 2019. | 10 | |
Common stock, $0.0001 par value, voting; 200,000,000 shares authorized; 10,460,000 shares issued and outstanding, as of July 31, 2019 and 5,460,000 as of January 31, 2019. | 1,046 | 546 |
Additional paid in capital | 3,442,335 | 3,442,825 |
Accumulated deficit | (1,772,979) | (1,431,050) |
Total stockholders' equity | 1,670,402 | 2,012,331 |
Total liabilities and stockholders' equity | $ 2,207,338 | $ 2,863,713 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2019 | Jan. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Series A Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Series A Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Series A Preferred stock, shares issued | 0 | 100,000 |
Series A Preferred stock, shares outstanding | 0 | 100,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 10,460,000 | 5,460,000 |
Common stock, shares outstanding | 10,460,000 | 5,460,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 38,290 | |||
Computer Lease | 3,510 | 8,036 | ||
Cost of Services | 17,824 | 36,422 | ||
Depreciation Expense | 121,159 | 120,817 | 242,318 | 242,316 |
Software Maintenance | 22,247 | 52,872 | ||
Total Cost of Sales | 121,159 | 164,398 | 242,318 | 339,646 |
Gross Loss | (121,159) | (164,398) | (242,318) | (301,356) |
Selling, general, and administrative | 3,818 | 3,741 | 4,560 | 8,895 |
Professional fees | (7,365) | 21,285 | 5,257 | 21,908 |
Marketing & advertising | 7,240 | 8,990 | ||
Payroll | 9,809 | 21,783 | ||
Consultant fees | 42,000 | 70,000 | 84,000 | 111,500 |
Bad Debt Expense | 4,500 | |||
Amortization & Depreciation Expense | 646 | 885 | 1,292 | 885 |
Total operating expenses | 39,099 | 112,960 | 99,609 | 173,961 |
Net Loss from operations | (160,258) | (277,358) | (341,927) | (475,317) |
Other income (expense) | (1) | (2) | ||
Net income (loss) | $ (160,259) | $ (277,358) | $ (341,929) | $ (475,317) |
Basic and diluted (Loss) per share: | ||||
Income(Loss) per share basic and diluted | $ (0.0154) | $ (0.0499) | $ (0.0429) | $ (0.0855) |
Weighted average shares outstanding basic and diluted | 10,405,652 | 5,560,000 | 7,973,812 | 5,560,000 |
Statement of Changes in Stockho
Statement of Changes in Stockholders Equity - USD ($) | Common Stock | Preferred Stock | Additional Paid-In Capital | Accumulated Profits | Total |
Beginning balance, shares at Jan. 31, 2018 | 5,460,000 | 100,000 | |||
Beginning balance, amount at Jan. 31, 2018 | $ 546 | $ 10 | $ 3,442,625 | $ 688,735 | $ 4,132,116 |
Net income (loss) | (2,119,785) | (2,119,785) | |||
Ending balance, shares at Jan. 31, 2019 | 5,460,000 | 100,000 | |||
Ending balance, amount at Jan. 31, 2019 | $ 546 | $ 10 | 3,442,825 | (1,431,050) | 2,012,331 |
Shares Issued, conversions, shares | 5,000,000 | (100,000) | |||
Shares Issued, conversions, amount | $ 500 | $ (10) | (490) | ||
Net income (loss) | (341,929) | (341,929) | |||
Ending balance, shares at Apr. 30, 2019 | 10,460,000 | ||||
Ending balance, amount at Apr. 30, 2019 | $ 1,046 | $ 3,442,335 | $ (1,772,979) | $ 1,670,402 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Cash flows from operating activities: | ||||||
Net (Loss) | $ (160,259) | $ (341,929) | $ (277,358) | $ (341,929) | $ (475,317) | $ (2,119,785) |
Adjustments to reconcile net loss to net Cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 243,610 | 243,202 | ||||
Decrease (Increase) in: | ||||||
Accounts receivable, net | 4,500 | 219,986 | ||||
Inventory | (108,198) | |||||
Prepaid expenses and other current assets | 99 | (116) | ||||
Accounts payable, accrued expenses and taxes payable | 86,233 | 27,755 | ||||
Net cash provided In operating activities | (7,487) | (92,688) | ||||
Cash flows from investing activities: | ||||||
Acquisition of property, plant and equipment | (1,848) | |||||
Acquisition of intangible assets | (11,963) | |||||
Net cash received in investing activities | (13,811) | |||||
Cash Flows From Financing Activities: | ||||||
Borrowing from related party | 7,487 | 92,091 | ||||
Net Cash Provided By Financing Activities | 7,487 | 92,091 | ||||
Net Change in Cash | (14,408) | |||||
Cash at Beginning of Year | 16,349 | 16,349 | ||||
Cash at End of Period | $ 1,941 | 1,941 | ||||
Non-cash Investing and Financing Activities: | ||||||
Conversion of preferred stock to common stock | 500 | |||||
Reduction on debt for available for sale assets | $ 408,166 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | The accompanying unaudited financial statements of OBITX, Inc., (the “Company”, “we”, “our”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”). Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All significant intercompany accounts and transactions have been eliminated. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Haute Jobs, LLC, (“HAUTE”), Campaign Pigeon, LLC, (“CAMP”), and altCUBE, Inc., (“altCUBE”). Description of Business The Company was incorporated in the State of Delaware on March 30, 2017 originally under the name GigeTech, Inc. On October 31, 2017 the Company changed its name to OBITX, Inc., and updated its Articles of Incorporation through unanimous consent of its shareholder, MCIG. The Company is headquartered in Jacksonville, Florida. The Company’s primary NAICS CODE is 519130, Internet publishing and broadcasting and web search portals. We publish and generate textual, audio, and/or video content on the Internet, and operate web sites that use a search engine to generate and maintain extensive databases of internet addresses and content. The Company earns revenue through social media advertising, fees, and services. Under its plan, the Company developed its white label software solution for MCIG under the 420 Cloud brand in support of the cannabis industry. The company has expanded its services and solutions in software development and internet advertising and promotion into the social media industries of entertainment, business administration, blockchain technologies, and social media. 1 Subsidiaries of the Company The company currently operates, in addition to OBITX, Inc., two wholly owned subsidiaries, and has one company in which it has discontinued operations, which are consolidated: Haute Jobs, LLC We incorporated on May 10, 2018 in the state of Wyoming. Haute Jobs, LLC was created to provide services in the arena of job marketing and matching services, to perform an as an employment center. Campaign Pigeon, LLC We incorporated on May 10, 2018 in the state of Wyoming. Campaign Pigeon, LLC was created to provide services in the arena of online marketing and generating advertising. altCUBE, Inc We incorporated on June 4, 2018 in the state of Wyoming. altCUBE, Inc was created to provide services in the arena of promoting individual advertising solutions and enabling access to the financial crypto global market, providing modern, efficient, clean and intuitive user interface. This company has discontinued operations and is only being included for prior year financial comparison. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Principles of Consolidation The consolidated financial statements include the accounts of the Company, the wholly owned subsidiaries of HAUTE, CAMP, and altCUBE. 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, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The most significant estimates include: revenue recognition; sales returns and other allowances; allowance for doubtful accounts; valuation of inventory; valuation and recoverability of long-lived assets; property and equipment; contingencies; and income taxes. On a regular basis, management reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Revenue Recognition Policies We intend to earn revenue from the subscription, non-software related hosted services, term-based and perpetual licensing of software products, associated software maintenance and support plans, consulting services, training, and technical support. On February 1, 2018, we adopted Topic 606, using the modified retrospective transition method applied to those contracts which were not completed as of February 1, 2018. Results for reporting periods beginning after February 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting. The impact of adopting the new revenue standard was not material to our financial statements and there was no adjustment to beginning retained earnings upon adoption. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: · identification of the contract, or contracts, with a customer; · identification of the performance obligations in the contract; · determination of the transaction price; · allocation of the transaction price to the performance obligations in the contract; and · recognition of revenue when, or as, we satisfy a performance obligation. Research and Development Research and Development Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss as an expense as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized only if the product or process is technically and commercially feasible, if development costs can be measured reliably, if future economic benefits are probable, if the Company intends to use or sell the asset and the Company intends and has sufficient resources to complete development. The Company has recognized $0 as a capital asset for the six months ended July 31, 2019 and $0 for the six months ended July 31, 2018. Concentration of Credit Risk and Significant Customers Financial instruments which potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable. The Company places its temporary cash investments with financial institutions insured by the FDIC. Concentrations of credit risk with respect to trade receivables and commodities are limited due to the diverse group of customers to whom the Company provides services to. The Company establishes an allowance for doubtful accounts when events and circumstances regarding the collectability of its receivables or the selling of its commodities warrant based upon factors such as the credit risk of specific customers, historical trends, other information and past bad debt history. The outstanding balances are stated net of an allowance for doubtful accounts. Our cash balances are maintained in accounts held by major banks and financial institutions located in the United States. The Company may occasionally maintain amounts on deposit with a financial institution that are in excess of the federally insured limit of $250,000. The risk is managed by maintaining all deposits in high-quality financial institutions. The Company had $0 in excess of federally insured limits on July 31, 2019, and January 31, 2019. For the six month period ended July 31, 2019 and July 31, 2018 there were $0 and $38,290 in sales. During the period ending April 30, 2019 it was decided to write off the remaining $4,500 accounts receivable as it was also greater than 1 year outstanding. During the last quarter for the year ended January 31, 2019 the accounts receivable of $1,250,000 for Render Payment was written off as bad debt to take a conservative approach on the balance sheet as the amount of time of non-payment was quite substantial and greater than 1 year. For the six-month period ending July 31, 2019 there are no accounts receivable being recognized on the balance sheet. Cost of Goods Sold The Company recognizes the direct cost of purchasing product for sale, including freight-in and packaging, as cost of goods sold in the accompanying statement of operations. Cost of Revenue Cost of revenue includes: manufacturing and distribution costs for products sold and programs licensed; operating costs related to product support service centers and product distribution centers; costs incurred to include software on PCs sold by OEMs, to drive traffic to our websites and products, and to acquire online advertising space; costs incurred to support and maintain Internet-based products and services, including data center costs and royalties; warranty costs; inventory valuation adjustments; costs associated with the delivery of consulting services; and the amortization of capitalized software development costs. Capitalized software development costs are amortized over the estimated lives of the products. Cash and Cash Equivalents The Company includes in cash and cash equivalents all short-term, highly liquid investments that mature within three months of the date of purchase. Cash equivalents consist principally of investments in interest-bearing demand deposit accounts and liquidity funds with financial institutions and are stated at cost, which approximates fair value. For cash management purposes, the company concentrates its cash holdings in an account at Bank of America. The Company had no cash equivalents as of July 31, 2019, or January 31, 2019. Property, Plant, and Equipment Property, plant, and equipment (“PPE”) are stated at cost less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, improvements and major replacements that extend the life of the asset are capitalized. Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of depreciable assets, which are generally three to five periods. The Company classifies its software under the Financial Accounting Standards Advisory Board (FASAB) Statement of Federal Financial Accounting Standards (SFFAS) No. 10, Accounting for Internal Use Software, and the Governmental Accounting Standards Board (GASB) Statement No. 42, Accounting of Costs of Computer Software Developed or Obtained for Internal Use. When software is used in providing goods and services it is classified as PPE. Accounts Receivable The Company’s accounts receivable are trade accounts receivable. The Company recognized $1,254,500 as an uncollectable reserve for the six month period ending July 31, 2019 and the company had outstanding accounts receivable of $4,500 for the year ending January 31, 2019. Advertising Costs and Expense The advertising costs are expensed as incurred. Advertising costs were $0 for the six month period ending July 31, 2019 and $8,990 for the six month period ending July 31, 2018. Foreign Currency Translation The Company’s functional currency and its reporting currency is the United States Dollar. Income Taxes In accordance with SAB Topic 1: Financial Statements, Subsidiary’s or Division’s Separate Financial Statements and Segments Basic and Diluted Net Earnings (Loss) Per Share The Company follows ASC Topic 260 – Earnings Per Share FASB 2015-06, Earnings Per Share Commitments and Contingencies The Company reports and accounts for its commitments and contingencies in accordance with ASC 440 – Commitments ASC 450 – Contingencies |
Going Concern
Going Concern | 6 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | The Company's financial statements are prepared using generally accepted accounting principles, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. Because the business is new and has a limited history, no certainty of continuation can be stated. The accompanying financial statements for the period ended July 31, 2019, has been prepared to assume that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has negative cash flow and there are no assurances the Company will generate a profit or obtain positive cash flow. The Company has sustained its solvency through the support of its controlling shareholder, MCIG, which raise substantial doubt about its ability to continue as a going concern. Management is taking steps to raise additional funds to address its operating and financial cash requirements to continue operations in the next twelve months. Management has devoted a significant amount of time to the raising of capital from additional debt and equity financing. However, the Company’s ability to continue as a going concern is dependent upon raising additional funds through debt and equity financing and generating revenue. There are no assurances the Company will receive the necessary funding or generate the revenue necessary to fund operations. The financial statements contain no adjustments for the outcome of this uncertainty. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | In a major transaction, the Company acquired the 420 Cloud software environment which includes, 420 Cloud mobile, 420 Cloud browser, 420 Cloud API, WhoDab, BangPunch, 420 single sign-on mobile wallet, 420 job search, Weedistry, Ehesive, 420 cue, 420 wise guy, and Palm weed. While some of the software applications are currently in use, others are still under development. The Company launched its 420 cloud software service on April 20, 2017. On June 3, 2019 OBITX sold all assets held for sale to MCIG for the price of $408,166. The payment was made by OBITX decreasing the amount owed to MCIG by $408,166. The following is a detail of equipment: Property, Plant, and Equipment Six months ended Year ended July, 31 January 31, 2019 2019 Software $ 3,129,411 $ 3,129,411 Intangibles 7,753 7,753 Machinery & Equipment - - Total acquisition cost 3,137,164 3,137,164 Accumulated depreciation 929,876 686,266 Total property, plant, and equipment $ 2,207,288 $ 2,450,898 Depreciation expense on property, plant and equipment was $243,610 for the six month period ended July 31, 2019 and $243,201 for the six month period ending July 31, 2018. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | On June 14, 2018 the Company entered a Line of Credit with APO Holdings, LLC for up to $100,000 at any one time. The Line of Credit may be cancelled at any time by either party providing 30 days written notice of cancellation. It was given at a 0.6% monthly interest rate and may be paid at any time with no definitive payoff date. As of July 31, 2019 the current outstanding on the line of credit is $77,400 principal and $4.69 interest. On June 30, 2018 OBITX provided services to their subsidiary altCUBE in the amount of $25,167. This amount was made up of General Administrative expenses of $1,250, Website Design of $16,009, Marketing Expense $7,168, and Website Maintenance of $740. In January 2019 altCUBE was written off as discontinued operations. On May 1, 2019 MCIG converted all 100,000 Series A Preferred shares at par value of $0.0001 to 5,000,000 common shares at par value of $0.0001. MCIG entered into a Line of Credit Agreement with the Company on November 1, 2017 with a maximum limit of $500,000. MCIG increased the limit to $1,000,000 on January 1, 2018. The agreement expired on April 30, 2019. The Line of Credit bore 0% interest with a right to convert at 15% discount to market rate. On June 3, 2019 MCIG purchased all cryptocurrency-based automated teller machines from OBITX for the price of $408,166. The payment was made by OBITX decreasing the amount owed to MCIG by $408,166. MCIG extended the Line of Credit Agreement until December 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Company entered into a commitment for its corporate offices on January 4, 2019. The commitment is for a period of twelve (12) months at the rate of $69 per month. The Company may utilize additional space on an as needed basis at an hourly or daily rate. |
Stockholders Equity
Stockholders Equity | 6 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
Stockholders Equity | Common Stock As of July 31, 2019 and January 31, 2019, the Company had 200,000,000 common shares authorized, with 10,546,000 common shares on July 31, 2019 and 5,460,000 common shares on January 31, 2019 at a par value of $0.0001 issued and outstanding. On May 1, 2019 MCIG elected to convert its 100,000 shares of Series A Preferred Stock into 5,000,000 common shares of stock in accordance with the Series A Preferred terms and conditions. Preferred Stock As of July 31, 2019 and January 31, 2019, the company had 1,000,000 Series A Preferred shares authorized, with 0 Series A Preferred Shares on July 31, 2019 and 100,000 Series A Preferred shares on January 31, 2019 at a par value of $0.0001 issued and outstanding. |
Basic Income per Share before N
Basic Income per Share before Non-Controlling Interest | 6 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic Income per Share before Non-Controlling Interest | Basic Income Per Share - The computation of basic and diluted loss per common share is based on the weighted average number of shares outstanding during each period. Basic Income Per share For the six months Ended July 31, 2019 2018 Net loss (341,929) (475,317) Basic loss per share (0.0429) (0.0855) Basic weighted average number of shares outstanding 7,973,812 5,560,000 The computation of basic loss per common share is based on the weighted average number of shares outstanding during the period. |
Warrants
Warrants | 6 Months Ended |
Jul. 31, 2019 | |
Notes to Financial Statements | |
Warrants | On November 1, 2017 the Company issued 7 warrants to officers, directors, and investors for the purchase of up to 3,000,000 shares of common stock at $1.00 per share. The warrants expire on November 1, 2022 at 5:00 PM Eastern Standard Time. The warrants contain participation rights to any registration statement filed by the Company. The Holder shall not be entitled to exercise their Warrant when the number of shares exercised by the Warrant Holder would cause the Holder to exceed 4.99% of the total outstanding common stock. A summary of warrant activity for three months ended July 31, 2019 is as follows: Weighted Average Conversion Shares Price Warrants outstanding at January 31, 2019 3,000,000 $ 1.00 Exercised - $ - Granted 3,000,000 $ 1.00 Warrants outstanding at July 31, 2019 3,000,000 $ 1.00 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | There are no reportable subsequent events. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, the wholly owned subsidiaries of HAUTE, CAMP, and altCUBE. |
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, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The most significant estimates include: revenue recognition; sales returns and other allowances; allowance for doubtful accounts; valuation of inventory; valuation and recoverability of long-lived assets; property and equipment; contingencies; and income taxes. On a regular basis, management reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Revenue Recognition Policies | We intend to earn revenue from the subscription, non-software related hosted services, term-based and perpetual licensing of software products, associated software maintenance and support plans, consulting services, training, and technical support. On February 1, 2018, we adopted Topic 606, using the modified retrospective transition method applied to those contracts which were not completed as of February 1, 2018. Results for reporting periods beginning after February 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting. The impact of adopting the new revenue standard was not material to our financial statements and there was no adjustment to beginning retained earnings upon adoption. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: · identification of the contract, or contracts, with a customer; · identification of the performance obligations in the contract; · determination of the transaction price; · allocation of the transaction price to the performance obligations in the contract; and · recognition of revenue when, or as, we satisfy a performance obligation. |
Research and Development | Research and Development Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss as an expense as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized only if the product or process is technically and commercially feasible, if development costs can be measured reliably, if future economic benefits are probable, if the Company intends to use or sell the asset and the Company intends and has sufficient resources to complete development. The Company has recognized $0 as a capital asset for the six months ended July 31, 2019 and $0 for the six months ended July 31, 2018. |
Concentration of Credit Risk and Significant Customers | Financial instruments which potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable. The Company places its temporary cash investments with financial institutions insured by the FDIC. Concentrations of credit risk with respect to trade receivables and commodities are limited due to the diverse group of customers to whom the Company provides services to. The Company establishes an allowance for doubtful accounts when events and circumstances regarding the collectability of its receivables or the selling of its commodities warrant based upon factors such as the credit risk of specific customers, historical trends, other information and past bad debt history. The outstanding balances are stated net of an allowance for doubtful accounts. Our cash balances are maintained in accounts held by major banks and financial institutions located in the United States. The Company may occasionally maintain amounts on deposit with a financial institution that are in excess of the federally insured limit of $250,000. The risk is managed by maintaining all deposits in high-quality financial institutions. The Company had $0 in excess of federally insured limits on July 31, 2019, and January 31, 2019. For the six month period ended July 31, 2019 and July 31, 2018 there were $0 and $38,290 in sales. During the period ending April 30, 2019 it was decided to write off the remaining $4,500 accounts receivable as it was also greater than 1 year outstanding. During the last quarter for the year ended January 31, 2019 the accounts receivable of $1,250,000 for Render Payment was written off as bad debt to take a conservative approach on the balance sheet as the amount of time of non-payment was quite substantial and greater than 1 year. For the six-month period ending July 31, 2019 there are no accounts receivable being recognized on the balance sheet. |
Cost of Goods Sold | The Company recognizes the direct cost of purchasing product for sale, including freight-in and packaging, as cost of goods sold in the accompanying statement of operations. |
Cost of Revenue | Cost of revenue includes: manufacturing and distribution costs for products sold and programs licensed; operating costs related to product support service centers and product distribution centers; costs incurred to include software on PCs sold by OEMs, to drive traffic to our websites and products, and to acquire online advertising space; costs incurred to support and maintain Internet-based products and services, including data center costs and royalties; warranty costs; inventory valuation adjustments; costs associated with the delivery of consulting services; and the amortization of capitalized software development costs. Capitalized software development costs are amortized over the estimated lives of the products. |
Cash and Cash Equivalents | The Company includes in cash and cash equivalents all short-term, highly liquid investments that mature within three months of the date of purchase. Cash equivalents consist principally of investments in interest-bearing demand deposit accounts and liquidity funds with financial institutions and are stated at cost, which approximates fair value. For cash management purposes, the company concentrates its cash holdings in an account at Bank of America. The Company had no cash equivalents as of July 31, 2019, or January 31, 2019. |
Property, Plant, and Equipment | Property, plant, and equipment (“PPE”) are stated at cost less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, improvements and major replacements that extend the life of the asset are capitalized. Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of depreciable assets, which are generally three to five periods. The Company classifies its software under the Financial Accounting Standards Advisory Board (FASAB) Statement of Federal Financial Accounting Standards (SFFAS) No. 10, Accounting for Internal Use Software, and the Governmental Accounting Standards Board (GASB) Statement No. 42, Accounting of Costs of Computer Software Developed or Obtained for Internal Use. When software is used in providing goods and services it is classified as PPE. |
Accounts Receivable | The Company’s accounts receivable are trade accounts receivable. The Company recognized $1,254,500 as an uncollectable reserve for the six month period ending July 31, 2019 and the company had outstanding accounts receivable of $4,500 for the year ending January 31, 2019. |
Advertising Costs and Expense | The advertising costs are expensed as incurred. Advertising costs were $0 for the six month period ending July 31, 2019 and $8,990 for the six month period ending July 31, 2018. |
Foreign Currency Translation | The Company’s functional currency and its reporting currency is the United States Dollar. |
Income Taxes | In accordance with SAB Topic 1: Financial Statements, Subsidiary’s or Division’s Separate Financial Statements and Segments |
Basic and Diluted Net Earnings (Loss) Per Share | The Company follows ASC Topic 260 – Earnings Per Share FASB 2015-06, Earnings Per Share |
Commitments and Contingencies | The Company reports and accounts for its commitments and contingencies in accordance with ASC 440 – Commitments ASC 450 – Contingencies |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, Plant, and Equipment Six months ended Year ended July, 31 January 31, 2019 2019 Software $ 3,129,411 $ 3,129,411 Intangibles 7,753 7,753 Machinery & Equipment - - Total acquisition cost 3,137,164 3,137,164 Accumulated depreciation 929,876 686,266 Total property, plant, and equipment $ 2,207,288 $ 2,450,898 |
Basic Income per Share before_2
Basic Income per Share before Non-Controlling Interest (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Basic Income Per Share Before Non-controlling Interest | |
Schedule of Basic Income Per Share | Basic Income Per share For the six months Ended July 31, 2019 2018 Net loss (341,929) (475,317) Basic loss per share (0.0429) (0.0855) Basic weighted average number of shares outstanding 7,973,812 5,560,000 |
Warrants (Tables)
Warrants (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Notes to Financial Statements | |
Schedule of Warrants | Weighted Average Conversion Shares Price Warrants outstanding at January 31, 2019 3,000,000 $ 1.00 Exercised - $ - Granted 3,000,000 $ 1.00 Warrants outstanding at July 31, 2019 3,000,000 $ 1.00 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) | 6 Months Ended |
Jul. 31, 2019 | |
Date of Incorporation | Mar. 30, 2017 |
State of Incorporation | DE |
Haute Jobs | |
Date of Incorporation | May 10, 2018 |
State of Incorporation | WY |
Ownership | 100.00% |
Campaign Pigeon | |
Date of Incorporation | May 10, 2018 |
State of Incorporation | WY |
Ownership | 100.00% |
altCUBE | |
Date of Incorporation | Jun. 4, 2018 |
State of Incorporation | WY |
Ownership | 100.00% |
Date of Discontinued Operations | Jan. 11, 2019 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | |||||
Sales | $ 38,290 | ||||
Accounts receivable, net | $ 4,500 | ||||
Bad Debt Expense | 4,500 | ||||
Cash equivalents | |||||
Uncollected reserve | 1,250,000 | 0 | |||
Marketing & advertising | $ 7,240 | $ 8,990 | |||
Effective Income Tax Rate, Federal | 21.00% | 21.00% | |||
Loss on contingencies | $ 0 | $ 0 | |||
FCID Limit, excess | $ 0 | $ 0 | $ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Software | $ 3,129,411 | $ 3,129,411 |
Intangibles | 7,753 | 7,753 |
Machinery & Equipment | ||
Total acquisition cost | 3,137,164 | 3,137,164 |
Accumulated depreciation | 929,876 | 686,266 |
Total Property and Equipment | $ 2,207,288 | $ 2,450,898 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 243,610 | $ 243,202 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Date of Agreement | Jan. 4, 2019 | |||
Series A Preferred stock, shares issued | 0 | 100,000 | ||
Common stock, shares issued | 10,460,000 | 5,460,000 | ||
Cost of services | $ 4,500 | $ 219,986 | ||
Warrants Issued | ||||
Shares Issued, conversions, amount | $ 500 | |||
Assets held for Sale | $ 408,166 | |||
Line of Credit | ||||
Date of Agreement | Nov. 1, 2017 | |||
Line of Credit, Capicity | $ 1,000,000 | |||
Line of Credit, Interest Rate | 0.00% | |||
Line of Credit, Termination Date | Apr. 30, 2019 | |||
Line of Credit #2 | ||||
Date of Agreement | Jun. 14, 2018 | |||
Line of Credit, Capicity | $ 100,000 | |||
Line of Credit, Current | $ 77,400 | |||
Line of Credit, Interest Rate | 0.60% | |||
Line of Credit, Accured Interest | $ 5 | |||
Conversion #1 | ||||
Date of Issuance | May 1, 2019 | |||
Shares Issued, Amount | $ 5,000,000 | |||
Shares Issued, conversions, shares | (100,000) | |||
Subsidiary Services | ||||
Cost of services | $ 25,167 | |||
Sale of ATM | ||||
Date of Sale | Jun. 3, 2019 | |||
Assets held for Sale | $ 408,166 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 6 Months Ended |
Jul. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Date of Agreement | Jan. 4, 2019 |
Monthly rent | $ 69 |
Stockholders Equity (Details Na
Stockholders Equity (Details Narrative) - $ / shares | Jul. 31, 2019 | Jan. 31, 2019 |
Equity [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 10,460,000 | 5,460,000 |
Common stock, shares outstanding | 10,460,000 | 5,460,000 |
Series A Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Series A Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Series A Preferred stock, shares issued | 0 | 100,000 |
Series A Preferred stock, shares outstanding | 0 | 100,000 |
Basic Income per Share before_3
Basic Income per Share before Non-Controlling Interest - Schedule of Basic Income Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net (Loss) | $ (160,259) | $ (341,929) | $ (277,358) | $ (341,929) | $ (475,317) | $ (2,119,785) |
Income(Loss) per share | $ (0.0429) | $ (0.0855) | ||||
Weighted average shares outstanding | 10,405,652 | 5,560,000 | 7,973,812 | 5,560,000 |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Jan. 31, 2019 | |
Notes to Financial Statements | ||
Beginning Balance, Issued Warrants | 3,000,000 | |
Beginning Balance, Average Exercise Price | $ 1 | |
Exercised, Warrants | ||
Exercised, Average Exercise Price | ||
Granted, Warrants | ||
Granted, Average Exercise Price | ||
Ending Balance, Issued Warrants | 3,000,000 | |
Ending Balance, Average Exercise Price | $ 1 |
Warrants (Details Narrative)
Warrants (Details Narrative) - $ / shares | 6 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Jan. 31, 2019 | |
Warrants Issued | ||
Warrant Issuance #1 | ||
Date of Issuance | Nov. 1, 2017 | |
Warrants Issued | 3,000,000 | |
Exercise price | $ 1 | |
Warrant Term | 5 years | |
Warrant Description | The Holder shall not be entitled to exercise their Warrant when the number of shares exercised by the Warrant Holder would cause the Holder to exceed 4.99% of the total outstanding common stock. |