10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACTOF 1934

For the quarterly period ended April 30, 2018

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from  ______________ to ______________

Commission file number 000-53048

Concrete Leveling Systems, Inc.

(Exact name of small business issuer as specified in its charter)

Nevada	26-0851977
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

5046 E. Boulevard, NW, Canton, OH  44718

(Address of principal executive officer)

(330) 966-8120

(Issuer's telephone number)

(Former name, former address and former fiscal year, if changed since last report)

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES  [X] NO [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss. 232.405 of this chapter) during the preceding 12 month (or for such shorter period that the registrant was required to submit and post such files).  YES  [X] NO [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ]	Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES  [  ] NO [X]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  YES  [  ] NO [  ]

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:  14,027,834 shares of common stock outstanding as of June 10, 2018

CONCRETE LEVELING SERVICES, INC.

Index

		Page
Part I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of April 30, 2018 and July 31, 2017 (unaudited)	3
	Consolidated Statements of Income for the three and nine months ended April 30, 2018 and April 30, 2017 (unaudited)	4
	Consolidated Statements of Cash Flows for the nine months ended April 30, 2018 and 2017 (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	15
Item 4.	Controls and Procedures	15
Part II - OTHER INFORMATION
Item 1.	Legal Proceedings	17
Item 1A.	Risk Factors	17
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 3.	Defaults Upon Senior Securities	17
Item 4.	Mine Safety Disclosures	17
Item 5.	Other Information	17
Item 6.	Exhibits	17
SIGNATURES		18

2

PART I – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

Concrete Leveling Systems, Inc.

Balance Sheets

April 30, 2018 and July 31, 2017

	April 30, 2018			July 31, 2017
	(Unaudited)			(Audited)
Assets
Current Assets
Cash in bank	$	332		$	-
Accounts receivable, net of allowance for doubtful accounts of $0 at April 30, 2018 and July 31, 2017		300			93
Current portion of notes receivable, net of allowance for loan losses of $4,078 at July 31, 2017		-			-
Interest receivable, net of collectability allowance of $1,267 at July 31, 2017		-			141
Inventory		23,761			23,688
Prepaid expenses and other current assets		-			200
Total Current Assets		24,393			24,122
Property, Plant and Equipment
Equipment		700			700
Less: Accumulated depreciation		(700	)		(700	)
Total Property, Plant and Equipment		-			-
Other Assets
Notes receivable, net of current portion and allowance for loan losses of $19,724 at July 31, 2017		-			2,644
Total Assets	$	24,393		$	26,766
Liabilities and Stockholders’ Equity (Deficit)
Current Liabilities
Cash overdraft	$	-		$	20
Accounts payable		17,193			44,420
Accounts payable - stockholders		-			35,486
Advances - stockholders		184,902			117,000
Notes payable - stockholders		62,750			62,750
Accrued interest - stockholders		15,139			15,139
Other accrued expenses		8,809			16,857
Total Current Liabilities		288,793			291,672
Stockholders’ Equity (Deficit)
Common stock (par value $0.001) 100,000,000 shares authorized:
14,027,834 shares issued and outstanding at April 30, 2018 and July 31, 2017		14,027			14,027
Additional paid-in capital		433,209			397,723
Accumulated deficit		(711,636	)		(676,656	)
Total Stockholders’ Equity (Deficit)		(264,400	)		(264,906	)
Total Liabilities and Stockholders’ Equity (Deficit)	$	24,393		$	26,766

See notes to financial statements.

3

Concrete Leveling Systems, Inc.

Statements of Income

For the Three and Nine Months Ended April 30, 2018

	3 Months Ended			9 Months Ended
	April 30, 2018			April 30, 2018
	(Unaudited)			(Unaudited)
Equipment and parts sales	$	600		$	2,610
Cost of Sales		211			1,671
Gross Margin		389			939
Expenses
Selling, general and administration		2,613			35,868
Loss from Operations		(2,224	)		(34,929	)
Other Income (Expense)
Interest income		-			723
Interest expense		(254	)		(774	)
Total Other Income (Expense)		(254	)		(51	)
Net Loss Before Income Taxes		(2,478	)		(34,980	)
Provision for Income Taxes		-			-
Net Loss	$	(2,478	)	$	(34,980	)
Net Loss per Share - Basic and Fully Diluted	$	(0.00	)	$	(0.01	)
Weighted average number of common shares outstanding - basic and fully diluted		6,395,418			6,395,418

See notes to financial statements.

4

Concrete Leveling Systems, Inc.

Statements of Income

For the Three and Nine Months Ended April 30, 2017

	3 Months Ended			9 Months Ended
	April 30, 2017			April 30, 2017
	(Unaudited)			(Unaudited)
Equipment and parts sales	$	263		$	650
Cost of Sales		90			200
Gross Margin		173			450
Expenses
Selling, general and administration		4,569			30,529
Loss from Operations		(4,396	)		(30,079	)
Other Income (Expense)
Interest income		381			1,167
Interest expense		(232	)		(715	)
Total Other Income (Expense)		149			452
Net Loss Before Income Taxes		(4,247	)		(29,627	)
Provision for Income Taxes		-			-
Net Loss	$	(4,247	)	$	(29,627	)
Net Loss per Share - Basic and Fully Diluted	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding - basic and fully diluted		9,448,832			7,390,853

See notes to financial statements.

5

Concrete Leveling Systems, Inc.

Statements of Cash Flows

For the Nine Months Ended April 30, 2018 and 2017

	April 30, 2018			April 30, 2017
	(Unaudited)			(Unaudited)
Cash Flows from Operating Activities
Net (loss)	$	(34,980	)	$	(29,627	)
Adjustments to reconcile net (loss) to net cash used in operating activities:
Loan and interest losses write off		3,508			-
(Increase) Decrease in allowances for doubtful accounts and loan losses		(723	)		240
(Increase) Decrease in accounts receivable		(207	)		217
Increase in interest receivable		-			(766	)
Increase in inventory		(73	)		(6	)
Decrease (Increase) in prepaid expenses and other current assets		200			(86	)
(Decrease) Increase in accounts payable		(27,227	)		2,374
(Decrease) Increase in other accrued expenses		(8,048	)		1,234
Net cash from (used by) operating activities		(67,550	)		(26,420	)
Cash Flows from Investing Activities
Payments on notes receivable		-			498
Cash Flows from Financing Activities
Advances from stockholders		67,902			26,200
Net increase in cash		352			278
Cash overdraft/Cash and equivalents - beginning		(20	)		104
Cash and equivalents - ending	$	332		$	382
Supplemental Disclosure of Cash Flows Information
Interest	$	774		$	715
Income Taxes	$	-		$	-

See notes to financial statements.

6

Concrete Leveling Systems, Inc.

Notes to Financial Statements (Unaudited)

April 30, 2018 and July 31, 2017

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of Concrete Leveling Systems, Inc. (hereinafter the “Company”), is presented to assist in understanding the financial statements.  The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity.  These accounting policies conform toaccounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Nature of Operations

The Company manufactures for sale specialized equipment for use in the concrete leveling industry. The Company’s product is sold primarily to end users.

On March 24, 2017, the Company entered into an agreement with Jericho Associates, Inc. (“Jericho”), a start-up company which plans to operate in the gaming, hospitality and entertainment industries.  The Company issued Jericho 7,151,416 shares of the Company’s common stock, subject to a performance requirement, which provides that by March 1, 2018, if the management of Jericho does not identify at least one entity or business opportunity for acquisition, in order to supplement the Company’s current business operations, the shares issued as part of the agreement shall be returned to the Company. In July 2017, an additional 481,000 shares were issued to shareholders of Jericho under the same contingencies as the original shares.

On February 25, 2018, Jericho identified the acquisition of 50% interests in two LLCs (the “LLCs”). The LLCs have a Term Sheet agreement to develop a casino and hotel resort, and provide certain gaming equipment on a shared profit basis. The contemplated $300mil+ project is in the process of regulatory review, finalization of closing documents, and completion of financing. Notwithstanding the identification of the business opportunity the shares issued to Jericho remain contingent upon the regulatory review, the finalization of closing documentation, and the completion of financing arrangements for the project.

Also, upon the regulatory review, the finalization of closing documentation, and the completion of financing arrangements for the project, the Company’s President will cancel all shares of common stock held (879,167 shares as of April 30, 2018), the Company’s Chief Executive Officer will cancel all but 523,000 shares of common stock held (2,951,667 shares as of April 30, 2018), subject to an 18-month non-dilution right in order to maintain an ownership percentage of 4.99%, and the Company’s Secretary will cancel all but 45,000 shares of common stock held (185,000 shares as of April 30, 2018).

Under Accounting Standards Codification (“ASC”) 718-10-25-20, Compensation – Stock Compensation, there is no accounting related to the potential acquisition other than the issuance of the contingent shares at par value because the performance measure is the acquisition of a company. The achievement of this measure is not probable until the business is acquired.

Revenue Recognition

The Company recognizes revenue when product is shipped or picked up by the customer.

Earnings Per Share

Contingent shares are excluded from basic weighted average shares (ASC 260-10-45-13) and a two-class presentation of EPS is not applicable when a company is reporting a loss (ASC 260-10-45-67); therefore, the contingent shares are included in dilutive weighted average shares. Because the Company is reporting a loss, the Company will only report basic EPS and the contingent shares, along with the cancellation of shares by management, will be excluded from the computation.

Accounts Receivable

The Company grants credit to its customers in the ordinary course of business. The Company provides for an allowance for uncollectable receivables based on prior experience. The allowance was $0 at April 30, 2018 and July 31, 2017.

Inventories

Inventories, which consist of parts and work in progress, are recorded at the lower of first-in first-out cost or net realizable value (estimated selling price less costs of completion, disposal and transportation).

7

Concrete Leveling Systems, Inc.

Notes to Financial Statements (Unaudited)

April 30, 2018 and July 31, 2017

Use of Estimates

The preparation of the 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 amounts of revenues and expenses during the period.  Actual results could differ from those estimates.

Going Concern

The Company was formed on August 28, 2007 and was in the development stage through July 31, 2009. The year ended July 31, 2010 was the first year during which it was considered an operating company. The Company has sustained substantial operating losses since its inception. In addition, the Company has used substantial amounts of working capital in its operations. Further, at April 30, 2018, current liabilities exceed current assets by $264,400, and total liabilities exceed total assets by $264,400.

Success will be dependent upon management’s ability to obtain future financing and liquidity, and success of its future operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amount of cash, accounts receivable and liabilities approximates the fair value reported on the balance sheet.

NOTE 3 – NEW ACCOUNTING PRONOUNCEMENTS

In May 2014, ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”) was issued. The amendments in ASU 2014-09 affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in ASC 605, “Revenue Recognition,” and most industry-specific guidance.

The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. 

The Company will adopt this new standard effective for the year ending July 31, 2019 and shall disclose qualitative and quantitative information on all of the following in regard to our contract with a customer.

a. Revenue recognized from contracts with customers.

b. Any impairment losses recognized on any receivables or contract assets arising from the firm’s contracts with customers.

c. The opening and closing balances of receivables, contract assets, and contract liabilities from contracts with customers.

d. Revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period.

e. Revenue recognized in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods.

f. Significant changes in the contract asset or liability balances during the reporting period.

g. Performance obligation in contracts with customers

At this time, it is not known nor can it be reasonably estimated what the impact of this standard’s adoption will have on the Company. The Company believes the effect on our current accounting policies will be immaterial as our current accounting for revenue from our customer contracts does not materially differ from the new standard.

8

Concrete Leveling Systems, Inc.

Notes to Financial Statements (Unaudited)

April 30, 2018 and July 31, 2017

NOTE 4 – PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment are recorded at cost.  Depreciation is provided for by using the straight-line and accelerated methods over the estimated useful lives of the respective assets.

Maintenance and repairs are charged to expense as incurred.  Major additions and betterments are capitalized.  When items of property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the determination of net income.

NOTE 5 – NOTE RECEIVABLE

On January 31, 2018, the balance of the note and interest receivable were written off as uncollectable.

On July 31, 2017, the interest rate on the note receivable was 6.00% and was due in April 2026.

Management had established an estimated allowance for loan losses and uncollectable interest income based on its experience with specific debtors, including payment history, condition and location of collateral, and estimated cost of resale. The allowances totaled $25,069 at July 31, 2017.

NOTE 6 - INCOME TAXES

Income taxes on continuing operations include the following:

	April 30, 2018		July 31, 2017
Currently payable	$	0	$	0
Deferred		0		0
Total	$	0	$	0

A reconciliation of the effective tax rate with the statutory U.S. income tax rate is as follows:

	April 30, 2018						July 31, 2017
				% of						% of
				Pretax						Pretax
	Income			Amount			Income			Amount
Income taxes per statement of operations	$	0			0	%	$	0			0	%
Loss for financial reporting purposes without tax expense or benefit		(7,400	)		(21	)		(13,400	)		(34	)
Income taxes at statutory rate	$	(7,400	)		(21	)%	$	(13,400	)		(34	)%

The components of and changes in the net deferred taxes were as follows:

Deferred tax assets:

	April 30, 2018			July 31, 2017
Net operating loss carryforwards	$	119,400		$	181,400
Allowances for uncollectable accounts		0			8,800
Compensation and miscellaneous		3,200			5,300
Deferred tax assets		122,600			195,500
Valuation Allowance		(122,600	)		(195,500	)
Net deferred tax assets	$	0		$	0

Tax periods ended July 31, 2014 through 2017 are subject to examination by major taxing authorities.

9

Concrete Leveling Systems, Inc.

Notes to Financial Statements (Unaudited)

April 30, 2018 and July 31, 2017

NOTE 7 - RELATED PARTIES

The Company uses warehouse and office space belonging to one of its stockholders. The stockholder does not charge the Company rent or other fees for the use of these facilities.

On July 31, 2009 the Company entered into a distribution agreement with another company owned by one of the Company’s stockholders. The agreement gives the related party exclusive distribution rights for the Company’s products. Commission expense totaled $-0- for the nine months ended April 30, 2018 and 2017. The amount payable to the related party was $35,486 at July 31, 2017. On January 31, 2018, the stockholder forgave the balance due of $35,486. The forgiveness of the payable is reflected on the balance sheet as an increase to additional paid-in capital.

Four stockholders of the Company loaned a total of $62,750 to the Company at various times during the years ended July 31, 2010 through 2012. The loans carry interest rates from 8.00% to 12.00% and are due on demand. The balances on the loans are $62,750 at both April 30, 2018 and July 31, 2017. Effective July 31, 2013, further interest accrual was waived by the noteholders.

Two stockholders of the Company advanced a total of $118,916 to the Company at various times between November 2012 and April 2018. The balances on the advances are $118,916 and $117,000 at April 30, 2018 and July 31, 2017, respectively. The advances carry no interest.

Another stockholder of the Company paid invoices of the Company totaling $65,986 during the nine months ended April 30, 2018. This amount is still owed to the stockholder at April 30, 2018.

NOTE 8 - SUBSEQUENT EVENTS

The Company has evaluated all subsequent events through June 8, 2018, the date the financial statements were available to be issued. There are no subsequent events to report.

10

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Concerning Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management and information currently available to management. The use of words such as “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates”, “should”, “likely” or similar expressions, indicates a forward-looking statement.

The identification in this report of factors that may affect our future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

Factors that could cause our actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to:

· Trends affecting the Company’s financial condition, results of operations, or future prospects;

· The Company’s business and growth strategies;

· The Company’s financing plans and forecasts;

· The factors that we expect to contribute to our success and the Company’s ability to be successful in the future;

· The Company’s business model and strategy for realizing positive results as sales increase;

· Competition, including the Company’s ability to respond to such competition and its expectations regarding continued competition in the market in which the Company competes;

· Expenses;

· The Company’s ability to meet its projected operating expenditures and the costs associated with development of new projects;

· The Company’s ability to pay dividends or to pay any specific rate of dividends, if declared;

· The impact of new accounting pronouncements on its financial statements;

· That the Company’s cash flows from operating activities will be sufficient to meet its projected operating expenditures for the next twelve months;

· The Company’s market risk exposure and efforts to minimize risk;

· Development opportunities and its ability to successfully take advantage of such opportunities;

· Regulations, including anticipated taxes, tax credits or tax refunds expected;

· The outcome of various tax audits and assessments, including appeals thereof, timing of resolution of such audits, the Company’s estimates as to the amount of taxes that will ultimately be owed and the impact of these audits on the Company’s financial statements;

· The Company’s overall outlook including all statements under Management’s Discussion and Analysis or Plan of Operation;

· That estimates and assumptions made in the preparation of financial statements in conformity with US GAAP may differ from actual results; and

· Expectations, plans, beliefs, hopes or intentions regarding the future.

The following discussion and analysis was prepared to supplement information contained in the accompanying consolidated financial statements and is intended to provide certain details regarding the Company’s financial condition as of April 30, 2018, and the results of operations for the three and nine months ended April 30, 2018.  It should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto contained in this report as well as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal years ended July 31, 2017 and 2016.

11

Overview

Concrete Leveling Services, Inc. (“we”, “us”, “our” or the “Company”) was incorporated on August 28, 2007 in the State of Nevada. The Company's principal offices are located at 5046 East Boulevard Northwest, Canton, Ohio 44718. In Ohio, the Company does business under the trade name of CLS Fabricating, Inc. CLS has never declared bankruptcy, it has never been in receivership, and it has never been involved in any legal action or proceedings.

On March 24, 2017, we entered into an Equity Purchase Agreement, whereby we acquired all the outstanding common stock of Jericho Associates, Inc. (“Jericho”), a company operating in the gaming, hospitality and entertainment industries, in exchange for 7,151,416 shares of our common stock.  The Equity Purchase Agreement provided that by September 24, 2017, if the management of Jericho does not identify at least one entity or business opportunity for acquisition, in order to supplement the Company’s current business operations, the shares issued as part of the agreement shall be returned to the Company.  On September 22, 2017, the Company and Jericho mutually agreed to extend the performance requirement until December 24, 2017.  On November 9, 2017, the Company and Jericho mutually agreed to extend the performance requirement until March 1, 2018. In July 2017, an additional 481,000 shares were issued to shareholders of Jericho under the same contingencies as the original shares.

On February 25, 2018, Jericho identified the acquisition of 50% interests in two LLCs (the “LLCs”). The LLCs have a Term Sheet agreement to develop a casino and hotel resort, and provide certain gaming equipment on a shared profit basis. The contemplated $300mil+ project is in the process of regulatory review, finalization of closing documents, and completion of financing. Notwithstanding the identification of the business opportunity the shares issued to Jericho remain contingent upon the regulatory review, the finalization of closing documentation, and the completion of financing arrangements for the project.

Also, upon the regulatory review, the finalization of closing documentation, and the completion of financing arrangements for the project, the Company’s President will cancel all shares of common stock held (879,167 shares as of April 30, 2018), the Company’s Chief Executive Officer will cancel all but 523,000 shares of its common stock held (2,951,667 shares as of April 30, 2018), subject to an 18-month non-dilution right in order to maintain an ownership percentage of 4.99% in the Company, and the Company’s Secretary will cancel all but 45,000 shares of common stock held (185,000 shares as of April 30, 2018).

Due to the merger, the Company will now operate two business divisions, which will be operated simultaneously and consist of the following:

The concrete leveling division of the business will fabricate and market a concrete leveling service unit utilized in the concrete leveling industry. This unit secures to the back of a truck and consists of a mixing device to mix lime with water and a pumping device capable of pumping the mixture under pressure into pre-drilled holes in order to raise the level of any flat concrete surface.

The gaming and hospitality division of the business will focus on casino gaming, hospitality, entertainment and leisure time industries, and will pursue opportunities in the tribal and commercial casino gaming industries, both in California and Nevada.  The Company will also operate in the casino gaming technology industry, and is seeking opportunities to partner, joint venture, or acquire companies developing casino games that combine traditional casino games with the challenge of video games and the playability of social games, meaning games that pit the player’s skill against the skill of another player as opposed to the casino itself.

For the Three and Nine Months Ended April 30, 2018 Compared to the Three and Nine Months Ended April 30, 2017

The Company generated $600 in revenue for the three-month period ended April 30, 2018, which compares to revenue of $263 for the three-month period ended April 30, 2017.  Our revenues increased during the three-month period ended April 30, 2018 due to increased sales of our concrete leveling equipment and parts.

The Company generated $2,610 in revenue for the nine-month period ended April 30, 2018, which compares to revenue of $650 for the nine-month period ended April 30, 2017.  Our revenues increased during the nine-month period ended April 30, 2018 due to increased sales of our concrete leveling equipment and parts.

12

Cost of sales for the three-month period ended April 30, 2018 was $211, which compares to cost of sales of $90 for the three-month period ended April 30, 2017.  Our revenues increased during the three months ended April 30, 2018, which resulted in a similar adjustment to our cost of sales during the period.

Cost of sales for the nine-month period ended April 30, 2018 was $1,671 which compares to cost of sales of $200 for the nine-month period ended April 30, 2017.  Our revenues increased during the nine months ended April 30, 2018, which resulted in a similar adjustment to our cost of sales during the period.

Operating expenses, which consisted of selling, general and administrative expenses for the three-month period ended April 30, 2018, were $2,613. This compares with operating expenses for the three-month period ended April 30, 2017 of $4,569.   Our operating expenses decreased during the three-month period ended April 30, 2018 due to a decrease in our professional fees.

Operating expenses for the nine-month period ended April 30, 2018, were $35,868. This compares with operating expenses for the nine-month period ended April 30, 2017 of $30,529.   Our operating expenses increased during the nine-month period ended April 30, 2018 due to an increase in our professional fees and advertising expenses.

As a result of the foregoing, we had a net loss of $2,478 for the three-month period ended April 30, 2018. This compares with a net loss of $4,247 for the three-month period ended April 30, 2017. Net loss was $34,980 for the nine months ended April 30, 2018, compared to a net loss of $29,627 for the nine months ended April 30, 2017

In its audited financial statements as of July 31, 2017, the Company was issued an opinion by its auditors that raised substantial doubt about the ability to continue as a going concern based on the Company's current financial position. Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to successfully develop and market our products and our ability to generate revenues.

Liquidity and Capital Resources

As of April 30, 2018, we had cash or cash equivalents of $332. As of July 31, 2017, we had cash or cash equivalents of $0.

We believe that with our existing cash flows, we do not have sufficient cash to meet our operating requirements for the next twelve months.  We believe that with the addition of our gaming and hospitality business, we will begin to generate increased revenue over the 2018 fiscal year.  However, if our revenue is not sufficient to allow us to meet our cash requirements during the next twelve months, the Company may need to raise additional funds through the sale of debt or equity securities.  We cannot guarantee that we will be successful in generating sufficient revenues or other funds in the future to cover these operating costs. Failure to generate sufficient revenues or additional financing when needed could cause us to go out of business.

Net cash used in operating activities for the nine months ended April 30, 2018 was $67,550. This compares to net cash used in operating activities of $26,480 for the nine months ended April 30, 2017. This change is primarily due to a decrease in our accounts payable.

Cash flows from investing activities were $0 for the nine-month period ended April 30, 2018 and $498 for the nine-month period ended April 30, 2017.  The change in cash flows from investing activities was primarily due to decreases in payments on notes receivable.  We do not anticipate significant cash outlays for investing activities over the next twelve months.

Cash flows provided by financing activities was $67,902 for the nine-month period ended April 30, 2018 which compares to cash flows provided by financing activities of $26,200 for the nine-month period ended April 30, 2017.  The change in cash flows provided by financing activities is due to an increase in advances from stockholders during the nine-month period ended April 30, 2018.  We anticipate significant increases in cash flows provided by financing activities during the next 12 months, as we intend to raise capital through either debt or equity securities to fund both divisions of our business.

13

As of April 30, 2018, our total assets were $24,393 and our total liabilities were $288,793.  As of July 31, 2017, our total assets were $26,766 and our total liabilities were $291,672.

Critical Accounting Policies and Estimates

We believe that the following critical policies affect our more significant judgments and estimates used in preparation of our financial statements.

We disclose those accounting policies that we consider to be significant in determining the amounts to be utilized for communicating our consolidated financial position, results of operations and cash flows in the first note to our consolidated financial statements included elsewhere herein. Our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with these principles requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results are likely to differ from these estimates, but management does not believe such differences will materially affect our financial position or results of operations.

Fair value estimates used in preparation of the financial statements are based upon certain market assumptions and pertinent information available to our management. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, accounts receivable, accounts payable, accrued liabilities. Fair values were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand.

We believe that the following accounting policies are the most critical because they have the greatest impact on the presentation of our financial condition and results of operations.

Use of Estimates

The preparation of the 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 amounts of revenues and expenses during the period.  Actual results could differ from those estimates.

Going Concern

The Company was formed on August 28, 2007 and was in the development stage through July 31, 2009. The year ended July 31, 2010 was the first year during which it was considered an operating company. The Company has sustained substantial operating losses since its inception. In addition, the Company has used substantial amounts of working capital in its operations. Further, at April 30, 2018, our liabilities exceed our assets by $264,400.

The Company is of the opinion that funds being received from installment sales of its service units will provide a certain level of cash flow. Success will be dependent upon management’s ability to obtain future financing and liquidity, and success of its future operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Foreign Currency Transactions

None.

14

ITEM 3. – QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information

ITEM 4 – CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain “disclosure controls and procedures”, as that term is defined in Rule 13a-15(e), promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.  Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by paragraph (b) of Rules 13a-15 under the Securities Exchange Act of 1934, our management, with the participation of our principal executive officer and our principal financial officer, evaluated our company’s disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our management concluded that as of the end of the period covered by this quarterly report on Form 10-Q, our disclosure controls and procedures were not effective.

Management Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over the Company's financial reporting.  In order to evaluate the effectiveness of internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act of 2002.  Our management, with the participation of our principal executive officer and principal financial officer have conducted an assessment, including testing, using the criteria in Internal Control – Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") (2013).  Our system of internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  This assessment included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation.  Based on this evaluation, management concluded that our internal control over financial reporting was not effective as of April 30, 2018.  The ineffectiveness of the Company's internal control over financial reporting was due to the following material weaknesses, which are indicative of many small companies with small staff:

(i) inadequate segregation of duties consistent with control objectives;

(ii) lack of a code of ethics;

(iii) lack of a whistleblower policy;

(iv) lack of an independent board of directors or board committees related to financial reporting; and

(iv) lack of multiple levels of supervision and review.

We believe that the weaknesses identified above have not had any material effect on our financial results. While not being legally obligated to have an audit committee, it is our management’s view that such a committee, including an independent financial expert member, is an utmost important entity level control over the Company’s financial statements. Currently, the board of directors acts in the capacity of the audit committee. However, we are currently reviewing our disclosure controls and procedures related to these material weaknesses and expect to implement changes in the 2017 and 2018 fiscal years, including identifying specific areas within our governance, accounting and financial reporting processes to add adequate resources to potentially mitigate these material weaknesses.

15

Our management will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

Because of its inherent limitations, internal controls over financial reporting may not prevent or detect misstatements.  Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.  All internal control systems, no matter how well designed, have inherent limitations.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Management's Remediation Plan

The weaknesses and their related risks are not uncommon in a company of our size because of the limitations in the size and number of staff. Due to our size and nature, segregation of all conflicting duties has not always been possible and may not be economically feasible.

However, we plan to take steps to enhance and improve the design of our internal control over financial reporting.  During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above.  To remediate such weaknesses, we plan to implement the following changes in the current fiscal year as resources allow:

(i) appoint additional qualified personnel to address inadequate segregation of duties and implement modifications to our financial controls to address such inadequacies; and

(ii) adopt a written whistleblower policy and code of ethics; and

(iii) appoint an independent board of directors, including board committees related to financial controls and reporting.

The remediation efforts set out herein will be implemented in the 2017 and 2018 fiscal years.  Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our company have been detected.  These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

Management believes that despite our material weaknesses set forth above, our financial statements for the three month period ended April 30, 2018 are fairly stated, in all material respects, in accordance with U.S. GAAP.

Changes in Internal Control Over Financial Reporting

There were no changes to our internal control over financial reporting during the nine month period ended April 30, 2018.

16

PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

To the best of the Company’s knowledge and belief, no legal proceedings are currently pending or threatened.

ITEM 1A. – RISK FACTORS.

We are not required to provide this information as we are a Smaller Reporting Company.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no unregistered sales of equity securities during this quarter.

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

There are no defaults upon any senior securities.

ITEM 4 – MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5 – OTHER INFORMATION

None.

ITEM 6 – EXHIBITS

31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Edward A. Barth.
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Suzanne I. Barth.
32	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Edward A. Barth. and Suzanne I. Barth.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Schema
101.CAL*	XBRL Taxonomy Calculation Linkbase
101.DEF*	XBRL Taxonomy Definition Linkbase
101.LAB*	XBRL Taxonomy Label Linkbase
101.PRE*	XBRL Taxonomy Presentation Linkbase

* Furnished herewith. XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.  

17

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CONCRETE LEVELING SYSTEMS, INC.
Date: June 12, 2018	By: /s/ Edward A. Barth
	Edward A. Barth, Principal Executive Officer
Date: June 12, 2018	By: /s/ Suzanne I. Barth
	Suzanne I. Barth, Principal Financial Officer

 

18

EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a) - CERTIFICATION

I, Edward A. Barth, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Concrete Leveling Systems, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

5. The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

Date: June 12, 2018

By: /s/ Edward A. Barth

Edward A. Barth

Principal Executive Officer

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a) - CERTIFICATION

I, Suzanne I. Barth, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Concrete Leveling Systems, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

5. The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

Date: June 12, 2018

By: /s/ Suzanne I. Barth

Suzanne I. Barth

Principal Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Concrete Leveling System, Inc. (the “Company”) on Form 10-Q for the quarter ending April 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report).  I, Edward A. Barth, Principal Executive Officer of the company, and I, Suzanne I. Barth, Principal Financial Officer of the company, certify, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief.

(1) The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By: /s/ Edward A. Barth

Edward A. Barth

Principal Executive Officer

By: /s/ Suzanne I. Barth

Suzanne I. Barth

Principal Financial Officer

Date: June 12, 2018

XML

Document and Entity Information - shares	9 Months Ended
	Apr. 30, 2018	Jun. 10, 2018
Document and Entity Information:
Entity Registrant Name	Concrete Leveling Systems Inc
Document Type	10-Q
Document Period End Date	Apr. 30, 2018
Trading Symbol	clev
Amendment Flag	false
Entity Central Index Key	0001414382
Current Fiscal Year End Date	--07-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		14,027,834
Entity Filer Category	Smaller Reporting Company
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2018

XML

Balance Sheets - USD ($)	Apr. 30, 2018	Jul. 31, 2017
Current Assets
Cash in bank	$ 332
Accounts receivable, net of allowance for doubtful accounts of $0 at April 30, 2018 and July 31, 2017	300	93
Current portion of notes receivable, net of allowance for loan losses of $4,078 at July 31, 2017
Interest receivable, net of collectability allowance of $1,267 at July 31, 2017		141
Inventory	23,761	23,688
Prepaid expenses and other current assets		200
Total Current Assets	24,393	24,122
Property, Plant and Equipment
Equipment	700	700
Less: Accumulated depreciation	(700)	(700)
Total Property, Plant and Equipment
Other Assets
Notes receivable, net of current portion and allowance for loan losses of $19,724 at July 31, 2017		2,644
Total Assets	24,393	26,766
Current Liabilities
Cash overdraft		20
Accounts payable	17,193	44,420
Accounts payable - stockholders		35,486
Advances - stockholders	184,902	117,000
Notes payable - stockholders	62,750	62,750
Accrued interest - stockholders	15,139	15,139
Other accrued expenses	8,809	16,857
Total Current Liabilities	288,793	291,672
Stockholders' Equity (Deficit)
Common stock (par value $0.001) 100,000,000 shares authorized: 14,027,834 shares issued and outstanding at April 30, 2018 and July 31, 2017	14,027	14,027
Additional paid-in capital	433,209	397,723
Accumulated deficit	(711,636)	(676,656)
Total Stockholders' Equity (Deficit)	(264,400)	(264,906)
Total Liabilities and Stockholders' Equity (Deficit)	$ 24,393	$ 26,766

XML

Balance Sheets (Parenthetical) - USD ($)	Apr. 30, 2018	Jul. 31, 2017
Current Assets
Accounts receivable, net of allowance	$ 0	$ 0
Net of allowance for loan losses		4,078
Interest receivable, net of collectability allowance		1,267
Other Assets
Notes receivable, net of allowance for loan losses		$ 19,724
Stockholders' Equity (Deficit)
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	14,027,834	14,027,834
Common stock, outstanding	14,027,834	14,027,834

XML

Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Statements Of Income
Equipment and parts sales	$ 600	$ 263	$ 2,610	$ 650
Cost of Sales	211	90	1,671	200
Gross Margin	389	173	939	450
Expenses
Selling, general and administration	2,613	4,569	35,868	30,529
Loss from Operations	(2,224)	(4,396)	(34,929)	(30,079)
Other Income (Expense)
Interest income		381	723	1,167
Interest expense	(254)	(232)	(774)	(715)
Total Other Income (Expense)	(254)	149	(51)	452
Net Loss Before Income Taxes	(2,478)	(4,247)	(34,980)	(29,627)
Provision for Income Taxes	0	0	0	0
Net Loss	$ (2,478)	$ (4,247)	$ (34,980)	$ (29,627)
Net Loss per Share - Basic and Fully Diluted	$ (0.00)	$ (0.00)	$ (0.01)	$ (0.00)
Weighted average number of common shares outstanding - basic and fully diluted	6,395,418	9,448,832	6,395,418	7,390,853

XML

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Cash Flows from Operating Activities
Net (loss)	$ (34,980)	$ (29,627)
Adjustments to reconcile net (loss) to net cash used in operating activities:
Loan and interest losses write off	3,508
(Increase) Decrease in allowances for doubtful accounts and loan losses	(723)	240
(Increase) Decrease in accounts receivable	(207)	217
Increase in interest receivable		(766)
Increase in inventory	(73)	(6)
Decrease (Increase) in prepaid expenses and other current assets	200	(86)
(Decrease) Increase in accounts payable	(27,227)	2,374
(Decrease) Increase in other accrued expenses	(8,048)	1,234
Net cash from (used by) operating activities	(67,550)	(26,420)
Cash Flows from Investing Activities
Payments on notes receivable		498
Cash Flows from Financing Activities
Advances from stockholders	67,902	26,200
Net increase in cash	352	278
Cash overdraft/Cash and equivalents - beginning	(20)	104
Cash and equivalents - ending	332	382
Supplemental Disclosure of Cash Flows Information
Interest	774	715
Income Taxes

XML

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of Concrete Leveling Systems, Inc. (hereinafter the “Company”), is presented to assist in understanding the financial statements.  The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Nature of Operations

The Company manufactures for sale specialized equipment for use in the concrete leveling industry. The Company’s product is sold primarily to end users.

On March 24, 2017, the Company entered into an agreement with Jericho Associates, Inc. (“Jericho”), a start-up company which plans to operate in the gaming, hospitality and entertainment industries. The Company issued Jericho 7,151,416 shares of the Company’s common stock, subject to a performance requirement, which provides that by March 1, 2018, if the management of Jericho does not identify at least one entity or business opportunity for acquisition, in order to supplement the Company’s current business operations, the shares issued as part of the agreement shall be returned to the Company. In July 2017