10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2016

or

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 000-53376

ETERNITY HEALTHCARE INC.

(Exact name of registrant as specified in its charter)

Nevada	75-3268426
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
8755 Ash Street, Suite 1, Vancouver, British Columbia, Canada	V6P 6T3
(Address of principal executive offices)	(Zip Code)

(855) 324-1110

(Registrant’s telephone number, including area code)

N/A

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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      ☐ 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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

☒ YES      ☐ NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller Reporting Company	☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

☐ YES      ☒ NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after 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.

66,429,868 common shares issued and outstanding as of September 13, 2016.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION			1
	Item 1.	Financial Statements	1
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
	Item 4.	Controls and Procedures	17
PART II – OTHER INFORMATION			18
	Item 1.	Legal Proceedings	18
	Item 1A.	Risk Factors	18
	Item 2.	Unregistered Sales of Equity Securities	18
	Item 3.	Defaults Upon Senior Securities	18
	Item 4.	Mining Safety Disclosures	18
	Item 5.	Other Information	18
	Item 6.	Exhibits	18

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

The following unaudited interim consolidated financial statements of Eternity Healthcare Inc. for the three month period ended July 31, 2016 are included with this Quarterly Report on Form 10-Q.

1

Eternity Healthcare Inc.

Consolidated Financial Statements

For the three months ended July 31, 2016

(Expressed in U.S. Dollars)

2

Eternity Healthcare Inc.

Consolidated Balance Sheet

(Expressed in U.S. Dollars)

	July 31, 2016 $			April 30, 2016 $
	(Unaudited)
Assets
Current assets
Cash and cash equivalents		152,987			259,040
Short-term investments (Note 5)		308,685			320,584
Prepaid expenses		32,500			32,593
GST/HST receivable		1,522			3,337
Inventory (Note 6)		2,289			3,064
Total assets		497,983			618,618
Liabilities
Current liabilities
Accounts payable and accrued liabilities (Note 7)		146,737			156,944
Due to related parties (Note 8)		945,640			977,887
		1,092,377			1,134,831
Shareholders’ equity (deficit)
Capital stock (Note 9)
Authorized
300,000,000 common shares, par value $ 0.001
Issued and outstanding
July 31, 2016 – 66,429,868 common shares April 30, 2016 – 66,429,868 common shares		66,430			66,430
Additional paid-in capital		1,539,591			1,539,591
Accumulated other comprehensive income (loss)		13,840			(11,412	)
Accumulated deficit		(2,214,255	)		(2,110,822	)
Total stockholders’ (deficit)		(594,394	)		(516,213	)
Total liabilities and stockholders’ equity (deficit)		497,983			618,618

The accompanying notes are an integral part of these consolidated financial statements.

3

Eternity Healthcare Inc.

Consolidated Statements of Operations and Comprehensive Loss

(Expressed in U.S. Dollars)

(Unaudited)

	For the three months ended July 31, 2016 $			For the three months ended July 31, 2015 $
Sales
Product sales		2,173			6,294
Cost of goods sold		863			2,595
		1,310			3,699
Expenses
General and administrative		21,466			27,416
Professional fees		18,310			3,977
Research and development		19,998			-
Salaries		34,397			40,922
		94,171			72,315
Other items
Interest expense – related party		(11,098	)		(11,957	)
Interest income		526			1,547
		(10,572	)		(10,416	)
Net loss for the period		(103,433	)		(79,032	)
Comprehensive loss
Net loss for the period		(103,433	)		(79,032	)
Foreign currency translation adjustments		25,252			25,907
Comprehensive (loss) for the period		(78,181	)		(53,125	)
Comprehensive (loss) per share - basic and diluted		(0.00	)		(0.00	)
Net loss per share - basic and diluted		(0.00	)		(0.00	)
Weighted average number of common shares Outstanding - basic and diluted		66,429,868			66,429,868

The accompanying notes are an integral part of these consolidated financial statements.

4

Eternity Healthcare Inc.

Consolidated Statements of Cash Flows

(Expressed in U.S. Dollars)

(Unaudited)

	For the three months ended July 31, 2016 $			For the three months ended July 31, 2015 $
Operating activities
Net loss		(103,433	)		(79,032	)
Adjustments to reconcile net loss to net cash used in operating activities
Expenses paid on behalf of the Company by related parties		8,747			-
Changes in operating assets and liabilities
Inventory		576			2,664
Prepaid expenses		90			(3,712	)
Accounts payable and accrued liabilities		6,942			15,993
Accounts receivable		1,173			(1,603	)
Net cash used in operating activities		(85,905	)		(65,690	)
Investing activities
Net cash used in investing activities		-			-
Financing activities
Proceeds from related party payables		100,288			136,339
Repayments on related party payables		(114,467	)		(24,060	)
Net cash provided by (used in) financing activities		(14,179	)		112,279
Effect of exchange rate changes on cash		(5,969	)		(23,819	)
Increase (decrease) in cash		(106,053	)		22,770
Cash, beginning of period		259,040			414,147
Cash, end of period		152,987			436,917

The accompanying notes are an integral part of these consolidated financial statements.

5

Eternity Healthcare Inc.

Notes to the Consolidated Financial Statements

July 31, 2016

(Expressed in U.S. Dollars)

(Unaudited)

1. Nature and continuance of operations

Eternity Healthcare Inc. (the “Company”) was incorporated under the laws of the State of Nevada on October 24, 2007 under the name Kid’s Book Writer, Inc. On September 23, 2010, the Company changed its name to Eternity Healthcare Inc., and affected a reverse stock split of the issued and outstanding common stock at a factor of 10 old shares for 1 new share. The Company is focused on offering a range of medical devices and diagnostics.

On December 13, 2010, pursuant to the terms of a share exchange agreement, the Company acquired 100% of the issued and outstanding common stock of Eternity Healthcare Inc., a company incorporated under the laws of Canada on December 10, 2009 and registered to operate in British Columbia (“Eternity BC”), for 60,000,000 shares of its own common stock, which were distributed to the shareholders of Eternity BC (the “Share Exchange Agreement”).

The Share Exchange Agreement, which represents a majority of the then issued and outstanding shares of the Company, constituted a change in control of the Company. The acquisition of Eternity BC was accounted for as a reverse acquisition in accordance with Accounting Standards Codification (“ASC”) 805-40, “Business Combinations”. The Company determined for accounting and reporting purposes that Eternity BC is the acquirer because of the significant holdings and influence of the control group of the Company before and after the acquisition. As a result of the transaction, Eternity BC shareholders own approximately 94.4% of issued and outstanding common stock of the Company on a diluted basis.

On June 25, 2012, the Company entered into a marketing agreement with Mika Medical Company of Korea to be the sole marketer of a new line of needle-free injection product for North America. Furthermore, the marketing agreement was extended to some European countries (German, France, and Spain) in December 2012. Additionally, the Company obtained the rights to market the products throughout the world with an amendment dated December 20, 2012.

Since signing the Distribution Agreement with Mika Medicals, the Company has emerged in organizational and start up activities, including developing a new business plan, making arrangements for office space and raising additional capital. The Company is generating revenue from product sales.

On June 5, 2014 the Company registered to operate within the state of Arizona with the intention to take over operations within the United States from the Canadian subsidiary. Beginning January 1, 2016 the Company took over operations within the United States from the Canadian Company.

The Company has a net loss of $ 103,433 for the three months ended July 31, 2016 (July 31, 2015 - $79,032) and has a working capital deficit of $594,394 as at July 31, 2016 (April 30, 2016 - $516,213).

2. Condensed financial statements

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, result of operations, and cash flows at July 31, 2016, and for all periods presented herein, have been made.

6

Eternity Healthcare Inc.

Notes to the Consolidated Financial Statements

July 31, 2016

(Expressed in U.S. Dollars)

(Unaudited)

2. Condensed financial statements - continued

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s April 30, 2016 audited financial statements. The results of operations for the period ended July 31, 2016 and 2015 are not necessarily indicative of the operating results for the full year.

3. Going concern

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on its obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. However, management is currently reviewing the possibility of partnering with, merging with, or acquisition of another medical device company with strong marketing abilities.

4. Significant accounting policies

The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements.

Basis of presentation

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in U.S. dollars.

Principles of consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Eternity Healthcare Inc. (BC). All significant intercompany balances and transactions have been eliminated in consolidation.

Cash and cash equivalents

Cash and cash equivalents include highly liquid investments with original maturities of three months or less.

Inventory

Inventory is stated at the lower of cost or market with cost determined under the weighted average cost method.

Revenue

Revenue is recognized at the point of sale and includes shipping revenue for the delivery to the purchaser. Total revenues do not include sales taxes as we serve as a pass-through conduit for collecting and remitting sales taxes. We recognize retail sales returns as they occur as historical returns have been negligible. In accordance with SAB 104, revenue is recognized when (i) there is persuasive evidence that an arrangement exists, (ii) delivery has occurred or service has been rendered, (iii) the price is fixed or determinable, and (iv) collection is reasonably assured.

7

Eternity Healthcare Inc.

Notes to the Consolidated Financial Statements

July 31, 2016

(Expressed in U.S. Dollars)

(Unaudited)

4. Significant accounting policies - continued

Foreign currency translation

The Company’s functional currency is the Canadian dollar and reporting currency is the U.S. dollar. All transactions initiated in other currencies are translated into the reporting currency in accordance with ASC 830, “Foreign Currency Matters” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date; and
ii)	Revenue and expense items at rate of exchange at the dates on which those elements are recognized.

Gains and losses on translation are included in other comprehensive income (loss) in stockholders’ deficiency for the period.

Fair value

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and due to related parties approximate their fair values because of the short-term maturity of these financial instruments.

Interest rate risk

The company is not exposed to significant interest rate risk due to the short-term maturity of its monetary assets and liabilities.

Credit risk

Credit risk is the risk of loss associated with counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash and accounting receivable. Management believes that the credit risk concentration with respect to financial instruments included in cash and accounts receivable is remote.

Currency risk

The Company’s operating expenses are primarily incurred in Canadian dollars, and fluctuation of the Canadian dollar in relation to the United States dollar will have an impact upon the profitability of the Company and may also have an effect of the value of the Company. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risk. At July 31, 2016 1 United States dollar was equal to 1.3041 Canadian dollars.

Basic and diluted net income (loss) per share

The Company computes net income (loss) per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As at July 31, 2016 there were outstanding stock options totaling 200,000 common shares (Note 10).

Research and development

The Company recognizes research and development costs in accordance with ASC 730, “Research and Development”, which requires the Company to expense research and development costs as they are incurred.

8

Eternity Healthcare Inc.

Notes to the Consolidated Financial Statements

July 31, 2016

(Expressed in U.S. Dollars)

(Unaudited)

4. Significant accounting policies - continued

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, “Income Taxes”, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

Comprehensive loss

ASC 22, “Comprehensive Income”, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at July 31, 2016, the Company has items that represent a comprehensive income (loss) and, therefore, has included a schedule of comprehensive income (loss) in the financial statements.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates.

Segments of an enterprise and related information

ASC 280, “Segment Reporting” establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has evaluated this Codification and does not believe it is applicable at this time.

Recently Enacted Accounting Standards

Our company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

5. Short-term investment

On August 18, 2015 the Company invested $600,000 CAD ($459,000 USD) in a One Year Cashable Guaranteed Investment Certificate (GIC) term deposit. The investment has a one year term that matures on August 18, 2016 and bears interest at a rate of 0.672% per annum.

On March 14, 2016 the Company withdrew $200,000 CAD ($150,000 USD) from the GIC and received interest of $770 CAD ($576 USD). The remaining $400,000 CAD ($307,000 USD) continues to earn interest at a rate of 0.672% per annum. The Company has recognized interest of $678 CAD ($523 USD) to July 31, 2016 with an additional $126 CAD anticipated over the remaining term.

9

Eternity Healthcare Inc.

Notes to the Consolidated Financial Statements

July 31, 2016

(Expressed in U.S. Dollars)

(Unaudited)

6. Inventory

Inventory consists of needle free injection products that are held for resale. Inventory is stated at the lower of cost or market with cost determined under the weighted average cost method. As of July 31, 2016 and April 30, 2016 inventory consisted of the following:

	July 31,		April 30,
	2016		2016
	$		$
Raw Material		-		-
Work in progress		-		-
Finished goods		2,289		3,064
Reserve for obsolescence		-		-
		2,289		3,064

7. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities are non-interest bearing, unsecured, and have settlement dates within one year.

8. Due to related parties and related party transactions

During the three months ended July 31, 2016, the Company received $100,288 in additional cash loans from related parties of the Company and made repayments to related parties of $114,467. Total related party notes payable as of July 31, 2016 were $945,640. This balance is interest bearing at 5% per year on the principle balance, unsecured and has no fixed terms of repayment. During the three months ended July 31, 2016, the Company recorded interest expense of $11,098 with regard to the outstanding related party loans.

9. Capital stock

Authorized

The total authorized capital is 300,000,000 common shares with a par value of $ 0.001 per common share.

10. Stock options

During the fiscal year ended April 30, 2013, the Company granted 200,000 stock options for services. The fair value of the stock options granted were estimated on the date granted using the Black-Scholes pricing model, with the following assumptions used for the valuation: exercise price of $0.55 per share, average risk-free interest rate of 0.79%, expected dividend yield of zero, expected lives of five years and an average expected volatility of 2.99%. During the three months ended July 31, 2016 and 2015, the Company recognized expense of nil and nil related to options that vested, respectively.

During the three-month period ended July 31, 2016, the Company issued no new stock options.

10

Eternity Healthcare Inc.

Notes to the Consolidated Financial Statements

July 31, 2016

(Expressed in U.S. Dollars)

(Unaudited)

10. Stock options - continued

A summary of the status of the Company’s stock options and warrants as of July 31, 2016 is presented below:

	Number of
	Shares
Balance of stock options and warrants as at April 30, 2016		200,000
Warrants and options granted		-
Exercised, forfeited or expired		-
Outstanding at July 31, 2016		200,000
Exercisable at July 31, 2016		200,000

The following table summarizes information about the stock options and warrants as of July 31, 2016:

		Options and Warrants Outstanding						Options and Warrants Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life(in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.80		200,000		1.46	$	0.80		200,000	$	0.80

11. Subsequent events

In accordance with ASC 855, the Company’s management has evaluated the subsequent events through the date the financial statements were issued and has found no subsequent events to report.

11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This quarterly report on Form 10-Q and other reports filed by our company from time to time with the United States Securities and Exchange Commission (the “SEC”) contain or may contain forward-looking statements (collectively the “Filings”) and information that are based upon beliefs of, and information currently available to, our company’s management as well as estimates and assumptions made our company’s management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the filings, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions as they relate to our company or our company’s management identify forward-looking statements. Such statements reflect the current view of our company with respect to future events and are subject to risks, uncertainties, assumptions, and other factors, including the risks contained in the “Risk Factors” section of our company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2016, filed with the SEC, relating to our company’s industry, our company’s operations and plan of operations, and any businesses that our company may acquire. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, our company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, our company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Our interim consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the interim consolidated financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our interim consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our financial statements and notes thereto appearing elsewhere in this report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars unless otherwise state. All references to “common stock” refer to the common shares in our capital stock.

As used in this quarterly report, the terms, “we”, “us”, “our” and “our company” refer to Eternity Healthcare Inc. and our wholly owned subsidiary Eternity Health Care Inc., a Canadian Federal corporation, extra-provincially registered in British Columbia, unless the context clearly requires or states otherwise.

General Overview

We were incorporated in the State of Nevada on October 24, 2007. On September 23, 2010, we changed our name to Eternity Healthcare Inc., and we effected a reverse split of our issued and outstanding common stock on a 10 old shares for 1 new share basis.

On December 13, 2010 we entered into and completed a share exchange agreement with Eternity Healthcare Inc., a Canadian corporation registered to operate in British Columbia, wherein we acquired Eternity BC as our wholly owned subsidiary and abandoned our former business to focus on the operations of Eternity BC.

On June 5, 2014, we registered to operate within the state of Arizona with the intention to take over operations within the United States from the Canadian subsidiary. Beginning January 1, 2016, we took over operations within the United States from Eternity Healthcare, Inc. (BC).

Our Current Business

We are a medical device company that, subject to government approval, plans to manufacture and market medical devices. Our first product marketed throughout the world was a needle-free injection system. The products marketed at present and those that we hope to market in the future differ from other current offerings by allowing ordinary people to perform injection of medication without the need for professionals.

12

On June 25, 2012, we entered into a marketing agreement to sell a device from Mika Medical Company of South Korea that does not require a needle for injection of medicine to the body. They provided us with the exclusive rights for this device throughout North America, Germany, France and Spain and non-exclusive rights for the world market. In 2015, we decided to bring our own needle-free injection device with superior technology and decided to market both products. We are currently the non-exclusive marketer of the Korean product.

Results of Operations for the Three Months Ended July 31, 2016 and 2015

The following summary of our results of operations should be read in conjunction with our unaudited interim consolidated financial statements for the quarter ended July 31, 2016 which are included herein.

Our operating results for the three month periods ended July 31, 2016 and 2015 and the changes between those periods for the respective items are summarized as follows:

	Three Month Period Ended July 31, 2016			Three Month Period Ended July 31, 2015			Change Between Three Month Periods Ended  July 31, 2015 and  July 31, 2016
Sales	$	2,173		$	6,294		$	(4,121	)
Cost of goods sold	$	863		$	2,595		$	(1,732	)
Operating expenses	$	94,171		$	72,315		$	21,856
Net loss	$	(103,433	)	$	(79,032	)	$	(24,401	)

Our expenses increased during the three month period ended July 31, 2016 compared to the same period in 2015. Expenses increased primarily as a result of increases in professional fees and research and development.

Revenues

We have earned net revenues of $2,173 for the period ended July 31, 2016 compared with $6,294 for the period ended July 31, 2015. We have incurred $94,171 operating expenses for the period ended July 31, 2016 compared with $72,315 for the period ended July 31, 2015.

Expenses

Our expenses for the three months ended July 31, 2016 and 2015 are outlined in the table below:

	Three Month Period Ended July 31, 2016		Three Month Period Ended July 31, 2015
General and administrative	$	21,466	$	27,425
Professional fees	$	18,310	$	3,977
Research and development	$	19,998	$	Nil
Salaries	$	34,397	$	40,922
Total operating expenses	$	94,171	$	72,315

Our operating expenses amounted to $94,171 during the three month period ended July 31, 2016 which comprised primarily of salaries, research and development expenses, professional fees and general and administrative costs. For the three month period ended July 31, 2015, our operation expenses amounted to $72,315. The increase in the current year is due to the fact that we incurred more professional fees and research and development expenses.

Professional Fees

Professional fees include accounting and auditing expenses incurred in connection with the preparation and audit of our financial statements and professional fees that we pay to our legal counsel. Our accounting and auditing expenses were incurred in connection with the preparation of our audited financial statements and unaudited interim consolidated financial statements. Our legal expenses represent amounts paid to legal counsel in connection with our corporate organization.

13

Research and Development Expenses

Research and development costs incurred during the quarter were for the continued development and testing of potential new products to be brought to market.

Liquidity and Financial Condition

Working Capital

	At July 31, 2016 ($)			At April 30, 2016 ($)
Current Assets	$	497,983		$	618,618
Current Liabilities	$	1,092,377		$	1,134,831
Working Capital Deficit	$	(594,394	)	$	(516,213	)

Cash Flows

	Three Month Period Ended July 31, 2016 ($)			Three Month Period Ended July 31, 2015 ($)
Cash Flows used in Operating Activities	$	(85,905	)	$	(65,690	)
Cash Flows used in Investing Activities	$	Nil		$	Nil
Cash Flows provided by (used in) Financing Activities	$	(14,179	)	$	112,279
Effect of Exchange Rate Changes on Cash	$	(5,969	)	$	(23,819	)
Net Increase (Decrease) in Cash During Period	$	(106,053	)	$	22,770

As of July 31, 2016, our total assets were $497,983 and our total liabilities were $1,092,377 and we had a working capital deficit of $594,394. Our unaudited financial statements report a net loss of $103,433 for the three months ended July 31, 2016 compared to a net loss of $79,032 for the same period in 2015.

Plan of Operation

The following discussion of our financial condition and results of operations should be read together with our unaudited financial statements and the notes thereto included elsewhere in this filing. Our unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. This discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those anticipated in these forward-looking statements.

Anticipated Cash Requirements

We have sufficient funds to complete our development and marketing plans. We do not believe that we need to raise any capital to finance our operation.

Going Concern

The interim consolidated financial statements accompanying this report have been prepared on a going concern basis, which implies that our company will continue to realize its assets and discharge its liabilities and commitments in the normal course of business. Our company has generated minimal revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of our company as a going concern is dependent upon the continued financial support from our shareholders, the ability of our company to obtain necessary equity financing to achieve our operating objectives, and the attainment of profitable operations. As of July 31, 2016, our company has an accumulated deficit of $2,214,255. Our interim consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should our company be unable to continue as a going concern.

Our interim consolidated financial statements contain additional note disclosures describing the circumstances related to the uncertainty of our ability to continue as a going concern.

14

The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

Future Financings

We anticipate continuing to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing stockholders. There is no assurance that we will achieve any additional sales of our equity securities rearrange for debt or other financing to fund our planned activities.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Critical Accounting Policies

The interim consolidated financial statements of our company have been prepared in accordance with generally accepted accounting principles in the United States. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.

The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements.

Basis of presentation

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in U.S. dollars.

Principles of consolidation

The consolidated financial statements include the accounts of our company and its wholly-owned subsidiary, Eternity Healthcare Inc. (BC). All significant intercompany balances and transactions have been eliminated in consolidation.

Cash and cash equivalents

Cash and cash equivalents include highly liquid investments with original maturities of three months or less.

Inventory

Inventory is stated at the lower of cost or market with cost determined under the weighted average cost method.

Revenue

Revenue is recognized at the point of sale and includes shipping revenue for the delivery to the purchaser. Total revenues do not include sales taxes as we serve as a pass-through conduit for collecting and remitting sales taxes. We recognize retail sales returns as they occur as historical returns have been negligible. In accordance with SAB 104, revenue is recognized when (i) there is persuasive evidence that an arrangement exists, (ii) delivery has occurred or service has been rendered, (iii) the price is fixed or determinable, and (iv) collection is reasonably assured.

15

Foreign currency translation

Our company’s functional currency is the Canadian dollar and reporting currency is the U.S. dollar. All transactions initiated in other currencies are translated into the reporting currency in accordance with ASC 830, “Foreign Currency Matters” as follows:

1.	Assets and liabilities at the rate of exchange in effect at the balance sheet date; and
2.	Revenue and expense items at rate of exchange at the dates on which those elements are recognized.

Gains and losses on translation are included in other comprehensive income (loss) in stockholders’ deficiency for the period.

Fair value

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and due to related parties approximate their fair values because of the short-term maturity of these financial instruments.

Interest rate risk

We are not exposed to significant interest rate risk due to the short-term maturity of its monetary assets and liabilities.

Credit risk

Credit risk is the risk of loss associated with counterparty’s inability to fulfill its payment obligations. Our company’s credit risk is primarily attributable to cash and accounting receivable. Management believes that the credit risk concentration with respect to financial instruments included in cash and accounts receivable is remote.

Currency risk

Our company’s operating expenses are primarily incurred in Canadian dollars, and fluctuation of the Canadian dollar in relation to the United States dollar will have an impact upon the profitability of our company and may also have an effect of the value of our company’s. Our company has not entered into any agreements or purchased any instruments to hedge possible currency risk. At July 31, 2016 1 United States dollar was equal to 1.3041 Canadian dollars.

Basic and diluted net income (loss) per share

Our company computes net income (loss) per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As at July 31, 2016 there were outstanding stock options totaling 200,000 common shares (Note 10).

Research and development

Our company recognizes research and development costs in accordance with ASC 730, “Research and Development”, which requires our company to expense research and development costs as they are incurred.

16

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, “Income Taxes”, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Our company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

Comprehensive loss

ASC 22, “Comprehensive Income”, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at July 31, 2016, our company has items that represent a comprehensive income (loss) and, therefore, has included a schedule of comprehensive income (loss) in the financial statements.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates.

Segments of an enterprise and related information

ASC 280, “Segment Reporting” establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our company has evaluated this Codification and does not believe it is applicable at this time.

Recent Accounting Pronouncements

Our company does not expect the adoption of any other recent accounting pronouncements to have a material impact on its financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a “small reporting company”, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures

Management’s Report on Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, 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 chief executive officer and chief financial officer (our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.

As of the end of our quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer (our principal executive officer, principal financial officer and principle accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our chief executive officer and chief financial officer (our principal executive officer, principal financial officer and principle accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report due to the material weaknesses in our internal controls over financial reporting identified in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on July 21, 2016.

Changes in Internal Control over Financial Reporting

During the period covered by this report there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

17

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Item 1A. Risk Factors

As a “small reporting company”, we are not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mining Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Document Description
(2)	Plan of acquisition, reorganization, arrangement, liquidation or succession
2.1	Share Exchange Agreement with Eternity Healthcare Inc., dated December 13, 2010 (incorporated by reference to our Current Report on Form 8-K filed on December 17, 2010)
(3)	(i) Articles of Incorporation; (ii) By-laws
3.1	Articles of Incorporation (incorporated by reference to our C Registration Statement on Form S-1 filed on June 25, 2008)
3.2	By-laws (incorporated by reference to our Registration Statement on Form S-1 filed on June 25, 2008)
3.3	Certificate of Amendment filed with the Nevada Secretary of State on November 1, 2010 (incorporated by reference to our Current Report on Form 8-K filed on November 16, 2010)
(10)	Material Contracts
10.1	Revised Distribution Agreement dated June 25, 2012 between our company, our subsidiary, MK Global Co. and MIKA Medical Co. (incorporated by reference to our Annual Report on Form 10-K filed on July 19, 2012)
10.2	2013 Stock Option Plan (incorporated by reference to our Annual Report on Form 10-K filed on August 8, 2013)
10.3	Rental Agreement dated June 22, 2013 between our company and Kinexus Bioinformatic (incorporated by reference to our Annual Report on Form 10-K filed on August 8, 2013)
(14)	Code of Ethics
14.1	Code of Business Conduct and Ethics (incorporated by reference to our Annual Report on Form 10-K filed on August 8, 2013)
(31)	Rule 13a-14(a)/15d-14(a) Certifications
31.1*	Section 302 Certifications under Sarbanes-Oxley Act of 2002
(32)	Section 1350 Certifications
32.1*	Section 906 Certifications under Sarbanes-Oxley Act of 2002
101*	Interactive Data Files
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

18

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ETERNITY HEALTHCARE INC.
Date:  September 13, 2016	/s/ Hassan Salari
	Hassan Salari
	President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director
	(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

19

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO
18 U.S.C. ss 1350, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Hassan Salari, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Eternity Healthcare Inc.;
2.	Based on my knowledge, this 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 report;
3.	Based on my knowledge, the financial statements, and other financial information included in this 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 report;
4.	The registrant'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 registrant 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 registrant, 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 registrant'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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant'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 registrant'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 registrant's internal control over financial reporting.

Date: September 13, 2016

/s/ Hassan Salari 

Hassan Salari

President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director

(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Hassan Salari, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	the Quarterly Report on Form 10-Q of Eternity Healthcare Inc. for the period ended July 31, 2016 (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 Eternity Healthcare Inc.

Dated:  September 13, 2016
	/s/ Hassan Salari
	Hassan Salari
	President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)
	Eternity Healthcare Inc.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Eternity Healthcare Inc. and will be retained by Eternity Healthcare Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Jul. 31, 2016	Sep. 13, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ETERNITY HEALTHCARE INC.
Entity Central Index Key	0001437822
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Document Type	10-Q
Document Period End Date	Jul. 31, 2016
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		66,429,868

XML

Consolidated Balance Sheet - USD ($)	Jul. 31, 2016	Apr. 30, 2016
Current assets
Cash and cash equivalents	$ 152,987	$ 259,040
Short-term investments (Note 5)	308,685	320,584
Prepaid expenses	32,500	32,593
GST/HST receivable	1,522	3,337
Inventory (Note 6)	2,289	3,064
Total assets	497,983	618,618
Current liabilities
Accounts payable and accrued liabilities (Note 7)	146,737	156,944
Due to related parties (Note 8)	945,640	977,887
Total current liabilities	1,092,377	1,134,831
Shareholders' equity (deficit)
Capital stock (Note 9)
Authorized 300,000,000 common shares, par value $0.001 Issued and outstanding July 31, 2016 - 66,429,868 common shares April 30, 2016 - 66,429,868 common shares	66,430	66,430
Additional paid-in capital	1,539,591	1,539,591
Accumulated other comprehensive income (loss)	13,840	(11,412)
Accumulated deficit	(2,214,255)	(2,110,822)
Total stockholders' (deficit)	(594,394)	(516,213)
Total liabilities and stockholders' equity (deficit)	$ 497,983	$ 618,618

XML

Consolidated Balance Sheet (Parenthetical) - $ / shares	Jul. 31, 2016	Apr. 30, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	66,429,868	66,429,868
Common stock, shares outstanding	66,429,868	66,429,868

XML

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Sales
Product sales	$ 2,173	$ 6,294
Cost of goods sold	863	2,595
Gross profit	1,310	3,699
Expenses
General and administrative	21,466	27,416
Professional fees	18,310	3,977
Research and development	19,998
Salaries	34,397	40,922
Total operating expenses	94,171	72,315
Other items
Interest expense - related party	(11,098)	(11,957)
Interest income	526	1,547
Total other income (expense)	(10,572)	(10,416)
Net loss for the period	(103,433)	(79,032)
Comprehensive loss
Net loss for the period	(103,433)	(79,032)
Foreign currency translation adjustments	25,252	25,907
Comprehensive (loss) for the period	$ (78,181)	$ (53,125)
Comprehensive (loss) per share - basic and diluted	$ 0	$ 0
Net loss per share - basic and diluted	$ 0	$ 0
Weighted average number of common shares Outstanding - basic and diluted	66,429,868	66,429,868

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Operating activities
Net loss	$ (103,433)	$ (79,032)
Adjustments to reconcile net loss to net cash used in operating activities
Expenses paid on behalf of the Company by related parties	8,747
Changes in operating assets and liabilities
Inventory	576	2,664
Prepaid expenses	90	(3,712)
Accounts payable and accrued liabilities	6,942	15,993
Accounts receivable	1,173	(1,603)
Net cash used in operating activities	(85,905)	(65,690)
Investing activities
Net cash used in investing activities
Financing activities
Proceeds from related party payables	100,288	136,339
Repayments on related party payables	(114,467)	(24,060)
Net cash provided by (used in) financing activities	(14,179)	112,279
Effect of exchange rate changes on cash	(5,969)	(23,819)
Increase (decrease) in cash	(106,053)	22,770
Cash, beginning of period	259,040	414,147
Cash, end of period	$ 152,987	$ 436,917

XML

Nature and Continuance of Operations

3 Months Ended

Jul. 31, 2016

Nature and Continuance of Operations [Abstract]

Nature and continuance of operations

1. Nature and continuance of operations

Eternity Healthcare Inc. (the “Company”) was incorporated under the laws of the State of Nevada on October 24, 2007 under the name Kid’s Book Writer, Inc. On September 23, 2010, the Company changed its name to Eternity Healthcare Inc., and affected a reverse stock split of the issued and outstanding common stock at a factor of 10 old shares for 1 new share. The Company is focused on offering a range of medical devices and diagnostics.

On December 13, 2010, pursuant to the terms of a share exchange agreement, the Company acquired 100% of the issued and outstanding common stock of Eternity Healthcare Inc., a company incorporated under the laws of Canada on December 10, 2009 and registered to operate in British Columbia (“Eternity BC”), for 60,000,000 shares of its own common stock, which were distributed to the shareholders of Eternity BC (the “Share Exchange Agreement”).

The Share Exchange Agreement, which represents a majority of the then issued and outstanding shares of the Company, constituted a change in control of the Company. The acquisition of Eternity BC was accounted for as a reverse acquisition in accordance with Accounting Standards Codification (“ASC”) 805-40, “Business Combinations”. The Company determined for accounting and reporting purposes that Eternity BC is the acquirer because of the significant holdings and influence of the control group of the Company before and after the acquisition. As a result of the transaction, Eternity BC shareholders own approximately 94.4% of issued and outstanding common stock of the Company on a diluted basis.

On June 25, 2012, the Company entered into a marketing agreement with Mika Medical Company of Korea to be the sole marketer of a new line of needle-free injection product for North America. Furthermore, the marketing agreement was extended to some European countries (German, France, and Spain) in December 2012. Additionally, the Company obtained the rights to market the products throughout the world with an amendment dated December 20, 2012.

Since signing the Distribution Agreement with Mika Medicals, the Company has emerged in organizational and start up activities, including developing a new business plan, making arrangements for office space and raising additional capital. The Company is generating revenue from product sales.

On June 5, 2014 the Company registered to operate within the state of Arizona with the intention to take over operations within the United States from the Canadian subsidiary. Beginning January 1, 2016 the Company took over operations within the United States from the Canadian Company.

The Company has a net loss of $ 103,433 for the three months ended July 31, 2016 (July 31, 2015 - $79,032) and has a working capital deficit of $594,394 as at July 31, 2016 (April 30, 2016 - $516,213).

XML

Condensed Financial Statements

3 Months Ended

Jul. 31, 2016

Condensed Financial Statements [Abstract]

Condensed financial statements

2. Condensed financial statements

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, result of operations, and cash flows at July 31, 2016, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s April 30, 2016 audited financial statements. The results of operations for the period ended July 31, 2016 and 2015 are not necessarily indicative of the operating results for the full year.

XML

Going Concern

3 Months Ended

Jul. 31, 2016

Going Concern [Abstract]

Going concern

3. Going concern

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on its obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. However, management is currently reviewing the possibility of partnering with, merging with, or acquisition of another medical device company with strong marketing abilities.

XML

Significant Accounting Policies

3 Months Ended

Jul. 31, 2016

Significant Accounting Policies [Abstract]

Significant accounting policies

4. Significant accounting policies

The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements.

Basis of presentation

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in U.S. dollars.

Principles of consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Eternity Healthcare Inc. (BC). All significant intercompany balances and transactions have been eliminated in consolidation.

Cash and cash equivalents

Cash and cash equivalents include highly liquid investments with original maturities of three months or less.

Inventory

Inventory is stated at the lower of cost or market with cost determined under the weighted average cost method.

Revenue

Revenue is recognized at the point of sale and includes shipping revenue for the delivery to the purchaser. Total revenues do not include sales taxes as we serve as a pass-through conduit for collecting and remitting sales taxes. We recognize retail sales returns as they occur as historical returns have been negligible. In accordance with SAB 104, revenue is recognized when (i) there is persuasive evidence that an arrangement exists, (ii) delivery has occurred or service has been rendered, (iii) the price is fixed or determinable, and (iv) collection is reasonably assured.

Foreign currency translation

The Company’s functional currency is the Canadian dollar and reporting currency is the U.S. dollar. All transactions initiated in other currencies are translated into the reporting currency in accordance with ASC 830, “Foreign Currency Matters” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date; and
ii)	Revenue and expense items at rate of exchange at the dates on which those elements are recognized.

Gains and losses on translation are included in other comprehensive income (loss) in stockholders’ deficiency for the period.

Fair value

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and due to related parties approximate their fair values because of the short-term maturity of these financial instruments.

Interest rate risk

The company is not exposed to significant interest rate risk due to the short-term maturity of its monetary assets and liabilities.

Credit risk

Credit risk is the risk of loss associated with counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash and accounting receivable. Management believes that the credit risk concentration with respect to financial instruments included in cash and accounts receivable is remote.

Currency risk

The Company’s operating expenses are primarily incurred in Canadian dollars, and fluctuation of the Canadian dollar in relation to the United States dollar will have an impact upon the profitability of the Company and may also have an effect of the value of the Company. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risk. At July 31, 2016 1 United States dollar was equal to 1.3041 Canadian dollars.

Basic and diluted net income (loss) per share

The Company computes net income (loss) per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As at July 31, 2016 there were outstanding stock options totaling 200,000 common shares (Note 10).

Research and development

The Company recognizes research and development costs in accordance with ASC 730, “Research and Development”, which requires the Company to expense research and development costs as they are incurred.

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, “Income Taxes”, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

Comprehensive loss

ASC 22, “Comprehensive Income”, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at July 31, 2016, the Company has items that represent a comprehensive income (loss) and, therefore, has included a schedule of comprehensive income (loss) in the financial statements.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates.

Segments of an enterprise and related information

ASC 280, “Segment Reporting” establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has evaluated this Codification and does not believe it is applicable at this time.

Recently Enacted Accounting Standards

Our company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

XML

Short-Term Investment

3 Months Ended

Jul. 31, 2016

Short-Term Investment [Abstract]

Short-term investment

5. Short-term investment

On August 18, 2015 the Company invested $600,000 CAD ($459,000 USD) in a One Year Cashable Guaranteed Investment Certificate (GIC) term deposit. The investment has a one year term that matures on August 18, 2016 and bears interest at a rate of 0.672% per annum.

On March 14, 2016 the Company withdrew $200,000 CAD ($150,000 USD) from the GIC and received interest of $770 CAD ($576 USD). The remaining $400,000 CAD ($307,000 USD) continues to earn interest at a rate of 0.672% per annum. The Company has recognized interest of $678 CAD ($523 USD) to July 31, 2016 with an additional $126 CAD anticipated over the remaining term.

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Inventory

3 Months Ended

Jul. 31, 2016

Inventory [Abstract]

Inventory

6. Inventory

Inventory consists of needle free injection products that are held for resale. Inventory is stated at the lower of cost or market with cost determined under the weighted average cost method. As of July 31, 2016 and April 30, 2016 inventory consisted of the following:

	July 31,		April 30,
	2016		2016
	$		$
Raw Material		-		-
Work in progress		-		-
Finished goods		2,289		3,064
Reserve for obsolescence		-		-
		2,289		3,064

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Accounts Payable and Accrued liabilities

3 Months Ended

Jul. 31, 2016

Accounts Payable and Accrued Liabilities [Abstract]

Accounts payable and accrued liabilities

7. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities are non-interest bearing, unsecured, and have settlement dates within one year.

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Due to Related Parties and Related Party Transactions

3 Months Ended

Jul. 31, 2016

Due to Related Parties and Related Party Transactions [Abstract]

Due to related parties and related party transactions

8. Due to related parties and related party transactions

During the three months ended July 31, 2016, the Company received $100,288 in additional cash loans from related parties of the Company and made repayments to related parties of $114,467. Total related party notes payable as of July 31, 2016 were $945,640. This balance is interest bearing at 5% per year on the principle balance, unsecured and has no fixed terms of repayment. During the three months ended July 31, 2016, the Company recorded interest expense of $11,098 with regard to the outstanding related party loans.

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Capital Stock

3 Months Ended

Jul. 31, 2016

Capital Stock [Abstract]

Capital stock

9. Capital stock

Authorized

The total authorized capital is 300,000,000 common shares with a par value of $ 0.001 per common share.

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Stock Options

3 Months Ended

Jul. 31, 2016

Stock Options [Abstract]

Stock options

10. Stock options

During the fiscal year ended April 30, 2013, the Company granted 200,000 stock options for services. The fair value of the stock options granted were estimated on the date granted using the Black-Scholes pricing model, with the following assumptions used for the valuation: exercise price of $0.55 per share, average risk-free interest rate of 0.79%, expected dividend yield of zero, expected lives of five years and an average expected volatility of 2.99%. During the three months ended July 31, 2016 and 2015, the Company recognized expense of nil and nil related to options that vested, respectively.

During the three-month period ended July 31, 2016, the Company issued no new stock options. 

A summary of the status of the Company’s stock options and warrants as of July 31, 2016 is presented below:

	Number of
	Shares
Balance of stock options and warrants as at April 30, 2016		200,000
Warrants and options granted		-
Exercised, forfeited or expired		-
Outstanding at July 31, 2016		200,000
Exercisable at July 31, 2016		200,000

The following table summarizes information about the stock options and warrants as of July 31, 2016:

		Options and Warrants  Outstanding						Options and Warrants  Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual  Life(in years)		Weighted  Average  Exercise Price		Number Exercisable		Weighted Average Exercise  Price
$	0.80		200,000		1.46	$	0.80		200,000	$	0.80

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Subsequent Events

3 Months Ended

Jul. 31, 2016

Subsequent Events [Abstract]

Subsequent events

11. Subsequent events

In accordance with ASC 855, the Company’s management has evaluated the subsequent events through the date the financial statements were issued and has found no subsequent events to report.

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Significant Accounting Policies (Policies)

3 Months Ended

Jul. 31, 2016

Significant Accounting Policies [Abstract]

Basis of presentation

Basis of presentation

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in U.S. dollars.

Principles of consolidation

Principles of consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Eternity Healthcare Inc. (BC). All significant intercompany balances and transactions have been eliminated in consolidation.

Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents include highly liquid investments with original maturities of three months or less.

Inventory

Inventory

Inventory is stated at the lower of cost or market with cost determined under the weighted average cost method.

Revenue

Revenue

Revenue is recognized at the point of sale and includes shipping revenue for the delivery to the purchaser. Total revenues do not include sales taxes as we serve as a pass-through conduit for collecting and remitting sales taxes. We recognize retail sales returns as they occur as historical returns have been negligible. In accordance with SAB 104, revenue is recognized when (i) there is persuasive evidence that an arrangement exists, (ii) delivery has occurred or service has been rendered, (iii) the price is fixed or determinable, and (iv) collection is reasonably assured.

Foreign currency translation

Foreign currency translation

The Company’s functional currency is the Canadian dollar and reporting currency is the U.S. dollar. All transactions initiated in other currencies are translated into the reporting currency in accordance with ASC 830, “Foreign Currency Matters” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date; and
ii)	Revenue and expense items at rate of exchange at the dates on which those elements are recognized.

Gains and losses on translation are included in other comprehensive income (loss) in stockholders’ deficiency for the period.

Fair value

Fair value

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and due to related parties approximate their fair values because of the short-term maturity of these financial instruments.

Interest rate risk

Interest rate risk

The company is not exposed to significant interest rate risk due to the short-term maturity of its monetary assets and liabilities.

Credit risk

Credit risk

Credit risk is the risk of loss associated with counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash and accounting receivable. Management believes that the credit risk concentration with respect to financial instruments included in cash and accounts receivable is remote.

Currency risk

Currency risk

The Company’s operating expenses are primarily incurred in Canadian dollars, and fluctuation of the Canadian dollar in relation to the United States dollar will have an impact upon the profitability of the Company and may also have an effect of the value of the Company. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risk. At July 31, 2016 1 United States dollar was equal to 1.3041 Canadian dollars.

Basic and diluted net income (loss) per share

Basic and diluted net income (loss) per share

The Company computes net income (loss) per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As at July 31, 2016 there were outstanding stock options totaling 200,000 common shares (Note 10).

Research and development

Research and development

The Company recognizes research and development costs in accordance with ASC 730, “Research and Development”, which requires the Company to expense research and development costs as they are incurred.

Income taxes

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, “Income Taxes”, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

Comprehensive loss

Comprehensive loss

ASC 22, “Comprehensive Income”, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at July 31, 2016, the Company has items that represent a comprehensive income (loss) and, therefore, has included a schedule of comprehensive income (loss) in the financial statements.

Use of estimates

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates.

Segments of an enterprise and related information

Segments of an enterprise and related information

ASC 280, “Segment Reporting” establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has evaluated this Codification and does not believe it is applicable at this time.

Recently Enacted Accounting Standards

Recently Enacted Accounting Standards

Our company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

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Inventory (Tables)

3 Months Ended

Jul. 31, 2016

Inventory [Abstract]

Summary of inventory

	July 31,		April 30,
	2016		2016
	$		$
Raw Material		-		-
Work in progress		-		-
Finished goods		2,289		3,064
Reserve for obsolescence		-		-
		2,289		3,064

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Stock Options (Tables)

3 Months Ended

Jul. 31, 2016

Stock Options [Abstract]

Schedule of the status of stock options and warrants

	Number of
	Shares
Balance of stock options and warrants as at April 30, 2016		200,000
Warrants and options granted		-
Exercised, forfeited or expired		-
Outstanding at July 31, 2016		200,000
Exercisable at July 31, 2016		200,000

Schedule of information about the stock options and warrants

		Options and Warrants  Outstanding						Options and Warrants  Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual  Life(in years)		Weighted  Average  Exercise Price		Number Exercisable		Weighted Average Exercise  Price
$	0.80		200,000		1.46	$	0.80		200,000	$	0.80

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Nature and Continuance of Operations (Details) - USD ($)		1 Months Ended	3 Months Ended
	Dec. 13, 2010	Sep. 23, 2010	Jul. 31, 2016	Jul. 31, 2015	Apr. 30, 2016
Nature and Continuance of Operations (Textual)
Reverse stock split, Description		Reverse stock split of the issued and outstanding common stock at a factor of 10 old shares for 1 new share.
Shares acquired of issued and outstanding stock, percentage	100.00%
Shares distributed to shareholders of Eternity BC on December 13, 2010 under share exchange agreement	60,000,000
Shareholders own of issued and outstanding common stock	94.40%
Net loss			$ (103,433)	$ (79,032)
Working capital deficit			$ 594,394		$ 516,213

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Significant Accounting Policies (Details) - shares	3 Months Ended
	Jul. 31, 2016	Apr. 30, 2016
Significant Accounting Policies (Textual)
Foreign currency translation, Description	1 United States dollar was equal to 1.3041 Canadian dollars.
Stock Options [Member]
Significant Accounting Policies (Textual)
Number of shares outstanding	200,000	200,000

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Short-Term Investment (Details)			1 Months Ended	3 Months Ended
	Mar. 14, 2016 USD ($)	Mar. 14, 2016 CAD	Aug. 18, 2015 USD ($)	Jul. 31, 2016 CAD	Jul. 31, 2016 USD ($)	Jul. 31, 2016 CAD	Mar. 14, 2016 CAD	Aug. 18, 2015 CAD
Short -Term Investment (Textual)
Guaranteed Interest Contracts	$ 150,000		$ 459,000				CAD 200,000	CAD 600,000
Investment Duration			One year term
Investment maturity date			Aug. 18, 2016
Investmrnt interest rate	0.672%	0.672%	0.672%
Interest amount	$ 576				$ 523	CAD 678	CAD 770
Investment income, interest	$ 307,000	CAD 400,000		CAD 126

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Inventory (Details) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
Summary of inventory
Raw Material
Work in progress
Finished goods	2,289	3,064
Reserve for obsolescence
Total	$ 2,289	$ 3,064

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Accounts Payable and Accrued Liabilities (Details)	3 Months Ended
	Jul. 31, 2016
Accounts Payable and Accrued Liabilities (Textual)
Unsecured of settlement dates	Within one year.

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Due to Related Parties and Related Party Transactions (Details) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Apr. 30, 2016
Due to Related Parties and Related Party Transactions (Textual)
Cash loans from a related parties	$ 100,288
Repayments on related party payables	114,467	$ 24,060
Due to related parties	$ 945,640		$ 977,887
Related party interest bearing rate	5.00%
Related party interest expense	$ 11,098	$ 11,957

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Capital Stock (Details) - $ / shares	Jul. 31, 2016	Apr. 30, 2016
Capital Stock (Textual)
Common stock, shares authorized	300,000,000	300,000,000
Common stock, par value	$ 0.001	$ 0.001

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Stock Options (Details) - Stock Options and Warrants [Member]	3 Months Ended
	Jul. 31, 2016 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance of stock options and warrants	200,000
Warrants and options granted
Exercised, forfeited or expired
Outstanding	200,000
Exercisable	200,000

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Stock Options (Details 1) - Stock Options and Warrants [Member] - $ / shares	3 Months Ended
	Jul. 31, 2016	Apr. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 0.80
Number Outstanding	200,000	200,000
Weighted Average Remaining Contractual Life(in years)	1 year 5 months 16 days
Weighted Average Exercise Price	$ 0.80
Number Exercisable	200,000
Weighted Average Exercise Price	$ 0.80

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Stock Options (Details Textual) - Stock Option [Member] - USD ($)	3 Months Ended		12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Apr. 30, 2013
Stock Options (Textual)
Stock options granted for services			200,000
Stock options, exercise price			$ 0.55
Stock options, average risk-free interest rate			0.79%
Stock options, expected dividend yield			0.00%
Stock options, expected lives			5 years
Stock options, average expected volatility			2.99%
Expenses related to options vested