BASIS OF PRESENTATION AND GOING CONCERN

3 Months Ended

Oct. 31, 2019

BASIS OF PRESENTATION AND GOING CONCERN

Note 2 - BASIS OF PRESENTATION AND GOING CONCERN

Basis of Presentation – The Company has incurred losses for the past several years while developing infrastructure and its intellectual property. As shown in the accompanying audited consolidated financial statements, the Company incurred net losses of $145,473 and $438,856 during the three months ended October 31, 2019 and October 2018, respectively. Additionally, as of October 31, 2019, the Company had a working capital deficit of approximately $1,106,489. In response to these conditions, the Company plans to raise additional capital through the sale of debt and equity securities.

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 incurred cumulative net losses of $32,846,609 since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.