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<!--egx--><p style='text-indent:-1.2pt;margin:0in 0in 0pt'><b>1. NATURE OF OPERATIONS</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>APT Systems, Inc</b>. (“APT Systems”, “the Company”, "We" or "Us") was incorporated in the State of Delaware on October 29, 2010 (“Inception”) to engage in the creation of innovative stock trading platforms, financial apps and visualization solutions for charting the financial markets. The Company is in the development stage, with its Apple developer’s account, and has been concentrating on researching and improving its intellectual property for trading and to facilitate rolling out new trading software. Management will continually test its trading software products and any profits generated from funds used in live trading tests will be to the benefit of the Company.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Going Concern Consideration</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>These financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since inception and anticipates future losses in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and, or, the sale of shares of common stock. There is no assurance that these events will be satisfactorily completed.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Basis of Preparation of Financial Statements</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The accompanying unaudited financial statements of APT Systems have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the six months ended July 31, 2014 are not necessarily indicative of the final results that may be expected for the year ended January 31, 2015. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended January 31, 2014 included in our Form 10-K filed with the SEC.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Development Stage Company</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><font style='background:white'>The Company is a development stage company as defined under the then current Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, “Development-Stage Entities”. Additional disclosures required as a development stage company are that our financial statements be identified as those of a development stage company, and that the statements of operations, changes in members’ deficit and cash flows disclosed activity since the date of our Inception (October 29, 2010). </font></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In June 2014 the FASB issued ASU 2014-10 regarding development stage entities. The ASU removes the definition of development stage entity, as was previously defined under generally accepted accounting principles in the United States (U.S. GAAP), from the accounting standards codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In addition, the ASU eliminates the requirements for development stage entities to (i) present inception-to-date information in the statement of income, cash flow and stockholders' equity, (ii) label the financial statements as those of a development stage entity, (iii) disclose a description of the development stage activities in which the entity is engaged, and (iv) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company has chosen to adopt the ASU early for the Company’s financial statements as of July 31, 2014. The adoption of this pronouncement impacted the Company by eliminating the requirement to report inception to date financial information previously required.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'> <u>Cash and Cash Equivalents</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company considers all highly liquid investments with original maturity of three months or less to be cash equivalents.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Use of Estimates and Assumptions</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The preparation of financial statements in conformity with generally accepted accounting principles requires that management makes 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. Due to uncertainties inherent in the estimation process, it is possible that these estimates could be materially revised within the next year.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Foreign Currency Translation</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The financial statements are presented in United States dollars. In accordance with ASC 830, “<i>Foreign Currency Matters</i>”, foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Revenue and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Foreign currency transaction gains and losses are recorded in the statements of operations as a component of other income (expense).</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Software</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company has software that it uses for the development of certain mobile phone applications. The software and any upgrades are being amortized over useful lives ranging from 3 – 5 years.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Website</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company accounts for website development costs in accordance with ACS 350-50 “<i>Website Development Costs</i>”. Costs incurred to register domain names, integrated databases and add additional functionality are being amortized over 1 – 3 years. Costs incurred in general maintenance of the website or hosting costs are expensed as incurred.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Research and Development Costs</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Costs incurred in research and developments are expenses as incurred.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Deferred Financing Costs</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Costs with respect to issue of common stock, warrants, stock options or debt instruments by the Company are initially deferred and ultimately offset against the proceeds from such equity transactions or amortized as debt discount over the term of any debt funding if successful or expensed if the proposed equity or debt transaction is unsuccessful. </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>For the three month periods ended July 31, 2014 and 2013, the Company had paid refundable deposits of $11,500 and $0, respectively. The deposits were made to two consulting companies that were to assist the Company in obtaining a $125,000 bridge loan to be utilized by the Company for its public registration purposes, and to assist the Company with an $8,000,000 private equity placement. The deposits are refundable for non-performance. As of the date of this report, neither the bridge loan nor the private placement had been secured and a $1,500 cash refund had been received during the three months ended July 31, 2014. </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Impairment of Long-Lived and Intangible Assets</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In the event that facts and circumstances indicated that the cost of long-lived and intangible assets may be impaired, an evaluation of recoverability will be performed. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset were compared to the asset's carrying amount to determine if a write-down to market value or discounted cash flow value is required.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Advertising costs</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Advertising costs are expensed as incurred. The Company recorded no advertising costs during the three months ending July 31, 2014 and 2013.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Financial Instruments</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. Accounting Standards Codification (“ASC”) 820-10 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. ASC 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Level 3: Significant unobservable inputs which reflect a reporting entity’s own assumptions about the assumptions that market participants would use for pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The recorded amounts of financial instruments, including cash equivalents, accounts payable, accrued expenses, note payable and loan from director approximate their market values as of July 31, 2014 due to the short term maturities of these financial instruments.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Income Taxes</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company accounts for income taxes in accordance with FASB ASC 740 “<i>Income Taxes</i>”. Under FASB ASC 740, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial statement reported amounts at each period end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. The provision for income taxes represents the tax expense for the period, if any, and the change during the period in deferred tax assets and liabilities. FASB ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. Under FASB ASC 740, the impact of an uncertain tax position on the income tax return may only be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. At July 31, 2014 and 2013, the Company has no unrecognized tax benefits. </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><i><u>Basic and Diluted Net Income (Loss) per Share</u></i></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company computes net income (loss) per share in accordance with ASC 260, "<i>Earnings per Share</i>" which 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 shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, 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 common shares if their effect is anti-dilutive. For the six month ended July 31, 2014, the Company did have potentially dilutive debt instruments that have been excluded from the earnings per share calculation; as no event has occurred that would permit the debt instrument to become convertible. No potentially dilutive debt or equity instruments were issued and outstanding during the six months ended July 31, 2013.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Stock Based Compensation</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. The Company has adopted a stock option plan, as disclosed in <i>Note 7 – Stockholders’ Deficit</i> below. As of the six month periods ended July 31, 2014 and 2013, no stock options had been issued or were outstanding.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Comprehensive Income (Loss) </u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Comprehensive income is defined as all changes in stockholders’ equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. From our Inception there were no differences between our comprehensive loss and net loss.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The comprehensive loss was identical to the net loss for the six months ended July 31, 2014 and 2013.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Reclassifications</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Certain reclassifications have been made to prior period financial statements to conform to the 2014 presentation.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Business Segments </u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company believes that its activities during the six month periods ended July 31, 2014 and 2013 comprised a single segment.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><u>Recently Issued Accounting Pronouncements</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of its operations as than in respect of the change in accounting for development stage companies as discussed above.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>3. GOING CONCERN AND LIQUIDITY</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>At July 31, 2014 the Company had cash of $1,407, no profitable business activities or other source of income, liabilities of $142,759, accumulated losses of $237,038 and a stockholders’ deficit of $123,538.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In the audited financial statements for the fiscal years ended January 31, 2014 and 2013, the Reports of our Independent Registered Public Accounting Firms include an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The unaudited financial statements for the six months ended July 31, 2014 have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company anticipates future losses in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and, or, the sale of common stock. There is no assurance that this series of events will be satisfactorily completed.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Financial statements do not include adjustments that might be necessary if the Company is unable to continue as a going concern.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>4. RELATED PARTY TRANSACTIONS</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The President of the Company no longer provides management and office premises to the Company for no compensation. Suitable office facilities are now rented monthly and reflected in our expenses. </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Effective November 1, 2013, the Company began to accrue a monthly salary of $5,000 per month for the President on an ongoing basis. Accrued officer compensation for the six months ended July 31, 2014 and year ended January 31, 2014, was $45,000 and $15,000 respectively. The accrued compensation will only be paid as and when the directors decide the Company has sufficient liquidity to pay some, or all, of the amounts accrued. The President of the Company can elect at any time to convert some, or all, of her accrued compensation into shares of the Company’s common stock at the market price at the date of conversion. Market price will be either the publicly quoted share price, when such a publicly quoted price becomes available, or the last cash price the Company received for the sale of its common shares.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>As of July 31, 2014 and January 31, 2014, the Company owed the President $6,575 and $1,523 respectively by way of loans. The loans are unsecured, due on demand and interest free. </p> <p style='margin:0in 0in 0pt'> </p>The Company entered into a Consulting Agreement with Joseph J. Gagnon, the Secretary of the Board of Directors, on February 3, 2012. This agreement was amended jointly by the Board of Directors and Mr. Gagnon. As of June 15, 2012, it was agreed and accepted by all that Mr. Gagnon should discontinue his full-time services for a specified period of time. As of July 31, 2014, Mr. Gagnon is not scheduled to resume his duties unless otherwise agreed to in writing. Mr. Gagnon was paid $0 and $1,000 for the period and year ended July 31, 2014 and January 31, 2014, respectively. No balance was owed to Mr. Gagnon by the Company as of July 31, 2014 or January 31, 2014.
<!--egx--><p style='margin:0in 0in 0pt'><b>5. CONVERTIBLE NOTE PAYABLE </b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On January 8, 2014 the Company issued an unsecured convertible note to one accredited investor (as that term is defined under the Securities Act of 1933, as amended) in the aggregate amount of $50,000 This convertible note accrues interest at the rate of 19% per annum and is convertible only when a “qualifying financing” event takes place. The note will be due and payable on May 7, 2014. The Company secured an initial extension of the convertible note to June 8, 2014 and subsequently a further extension to November 9, 2014.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Note, but none of the accrued unpaid interest thereon, may convert into equity securities at the option of the holder if the Company issues equity securities and any other indebtedness in aggregate with gross proceeds of $1,200,000, including conversion of the Note (a “Qualified Financing”). </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The conversion price is equal to 80% of the per share price paid by the purchasers of such equity securities in the Qualified Financing. Accrued and unpaid interest will be paid by the Company at time of conversion.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>If a Qualified Financing has not occurred and the Company elects to consummate a sale of the company prior to the maturity date of the Note, the Company will give the holder a minimum ten days prior written notice of an anticipated closing date of such sale of the Company in order that the holder may consider a conversion of their Note into equity in advance of a sale transaction.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>No value has been assigned to the conversion feature attached to this note payable as the possibility of the Company completing such a Qualifying Financing or completing a sale of the Company before May 7, 2014 was considered to be extremely remote.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Accrued interest payable as of July 31, 2014 and January 31, 2014 was $5,336 and $625, respectively. Interest expense for the six months ended July 31, 2014 and 2013 were $5,611 and $0 respectively.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>6. COMMITMENTS AND CONTINGENCIES</b></p> <p style='margin:0in 0in 0pt'> </p>On July 8, 2014 the Company entered into an agreement to issue 100,000 shares of its common stock as a deposit for an option to acquire 100% of the issued share capital of AZUR Universal Inc., subject to certain terms and conditions. As at the date of this report, certain due diligence remains to be completed, no shares have been issued as yet and no liability for this potential future issuance has been recognized in these financial statements.
<!--egx--><p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>7. SHAREHOLDERS’ DEFICIT</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>PREFERRED SHARES</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.001.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>No shares of preferred stock were issued and outstanding during the three months ended July 31 2014 and 2013.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>COMMON SHARES</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company is authorized to issue 90,000,000 shares of common stock, par value $0.001 per share.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In February 2013, the Company issued 1,000 shares of $0.001 par value common stock for $200 cash or $0.20 per share.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In April 2013, the Company issued 100,000 shares of $0.001 par value common stock for $20,000 cash or $0.20 per share.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In October 2013, the Company issued 25,000 shares of $0.001 par value common stock for services valued at $5,000 cash or $0.20 per share.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In January of 2014, the Company authorized the issuance of 10,000 shares of the Company’s common stock at $0.20 per share to various investors for total cash proceeds of $2,000.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On June 3, 2014, the Company issued 85,000 shares of its common stock to settle a liability of $55,250 for legal services provided to it by an attorney. The Company estimated the fair value of these shares to be $17,000, or $0.20 per share, based on its most recent cash sale of shares of its common stock. Accordingly the Company recognized a gain of $38,250 on the sale of settlement of the accounts payable to the Attorney.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>As of July 31, 2014, there are a total of 8,915,000 of the Company’s common shares issued and outstanding.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>STOCK OPTIONS</b></p> <p style='margin:0in 0in 0pt'> </p>The Company adopted the 2013 Equity Incentive Plan (the “Plan”) on January 31, 2012, reserving 5,500,000 shares for future issuances, of which a maximum of 2,500,000 may be issued as incentive stock options. The Plan provides for the issuance of non-statutory stock options or restricted stock to officers and employees, with an exercise price that is at least equal to the fair market value of the Company’s common stock on the date of grant. Vesting terms and the lives of the options are to be determined by the Board of Directors upon grant. As of July 31, 2014 and January 31, 2014, no options have been issued under this Plan.
<!--egx--><p style='margin:0in 0in 0pt'><b>8. INCOME TAXES</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company accounts for income taxes in accordance with ASC 740. Deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry-forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry-forward has been recognized, as it is not deemed likely to be realized.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The provision for refundable federal income tax consists of the following for the three and six month periods ending:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0"> <tr> <td width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.3pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="71" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="86" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:64.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Three months ended</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31,</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2014</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="103" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:77.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Three months </p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>ended</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31,</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2013</p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Six months ended </p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31, 2014</p></td> <td valign="top" width="22" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="71" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Six months ended </p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31, 2013</p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Federal income tax benefit attributed to:</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Net operating income (loss)</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>3,849</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(4,139)</p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(27,358)</p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(8,837)</p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>(Brought forward losses) / valuation</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(3,849)</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>4,139</p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>27,358</p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>8,837</p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Net benefit</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0"> <tr> <td width="294" style='border-top:#f0f0f0;border-right:#f0f0f0;width:220.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="86" style='border-top:#f0f0f0;border-right:#f0f0f0;width:64.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="117" style='border-top:#f0f0f0;border-right:#f0f0f0;width:87.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td></tr> <tr> <td valign="top" width="294" style='border-top:#f0f0f0;border-right:#f0f0f0;width:220.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="86" style='border-top:#f0f0f0;border-right:#f0f0f0;width:64.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="117" style='border-top:#f0f0f0;border-right:#f0f0f0;width:87.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="294" style='border-top:#f0f0f0;border-right:#f0f0f0;width:220.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="107" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:80.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31, </p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2014</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="138" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:103.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>January 31,</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2014</p></td></tr> <tr> <td valign="top" width="294" style='border-top:#f0f0f0;border-right:#f0f0f0;width:220.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Deferred tax attributed:</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="86" style='border-top:#f0f0f0;border-right:#f0f0f0;width:64.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="117" style='border-top:#f0f0f0;border-right:#f0f0f0;width:87.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="294" style='border-top:#f0f0f0;border-right:#f0f0f0;width:220.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Net operating loss carryover</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="86" style='border-top:#f0f0f0;border-right:#f0f0f0;width:64.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>80,593</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="117" style='border-top:#f0f0f0;border-right:#f0f0f0;width:87.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>53,235</p></td></tr> <tr> <td valign="top" width="294" style='border-top:#f0f0f0;border-right:#f0f0f0;width:220.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Less: change in valuation allowance</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="86" style='border-top:#f0f0f0;border-right:#f0f0f0;width:64.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(80,593)</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="117" style='border-top:#f0f0f0;border-right:#f0f0f0;width:87.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(53,235)</p></td></tr> <tr> <td valign="top" width="294" style='border-top:#f0f0f0;border-right:#f0f0f0;width:220.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Net deferred tax asset</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="86" style='border-top:#f0f0f0;border-right:#f0f0f0;width:64.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="117" style='border-top:#f0f0f0;border-right:#f0f0f0;width:87.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>At July 31, 2014 the Company had an unused net operating loss carry-forward approximating $237,038 that is available to offset future taxable income; the loss carry-forward will start to expire in 2030.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>9. SUBSEQUENT EVENTS</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On August 1, 2014 the note payable was further extended to November 9, 2014.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company has jointly filed its financial reports with SEDAR on August 23<sup>rd</sup>, 2014 at the request of the Alberta Securities Commission (ASC) and will continue to do so to support its Canadian shareholder base. The demand notice came as a result of having one the Company’s Directors residing in the province of Alberta. Under new policies, subsequent to the initial filings made by the Company, it is now a disclosure requirement of ASC to the benefit of Canadian investors.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Management has entered into discussions with companies and individuals prepared to provide development and documentation of software under contract. These contracts may be paid in cash upon presentation of invoices or may be settled with the issuance of shares. Initial budgets are currently estimated to be $15,000. At this time the Company does not have the funding to undertake the rebuild and further development of it financial charting tools. </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In accordance with <i>ASC 855, Subsequent Events</i>, the Company has evaluated events that occurred subsequent to events to the balance sheet date through September 17, 2014, the date of available issuance of these audited financial statements. The Company determined that other than as disclosed above, there were no material reportable subsequent events to be disclosed.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Basis of Preparation of Financial Statements</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The accompanying unaudited financial statements of APT Systems have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the six months ended July 31, 2014 are not necessarily indicative of the final results that may be expected for the year ended January 31, 2015. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended January 31, 2014 included in our Form 10-K filed with the SEC.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Development Stage Company</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><font style='background:white'>The Company is a development stage company as defined under the then current Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, “Development-Stage Entities”. Additional disclosures required as a development stage company are that our financial statements be identified as those of a development stage company, and that the statements of operations, changes in members’ deficit and cash flows disclosed activity since the date of our Inception (October 29, 2010). </font></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In June 2014 the FASB issued ASU 2014-10 regarding development stage entities. The ASU removes the definition of development stage entity, as was previously defined under generally accepted accounting principles in the United States (U.S. GAAP), from the accounting standards codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In addition, the ASU eliminates the requirements for development stage entities to (i) present inception-to-date information in the statement of income, cash flow and stockholders' equity, (ii) label the financial statements as those of a development stage entity, (iii) disclose a description of the development stage activities in which the entity is engaged, and (iv) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company has chosen to adopt the ASU early for the Company’s financial statements as of July 31, 2014. The adoption of this pronouncement impacted the Company by eliminating the requirement to report inception to date financial information previously required.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Cash and Cash Equivalents</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company considers all highly liquid investments with original maturity of three months or less to be cash equivalents.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Use of Estimates and Assumptions</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The preparation of financial statements in conformity with generally accepted accounting principles requires that management makes 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. Due to uncertainties inherent in the estimation process, it is possible that these estimates could be materially revised within the next year.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Foreign Currency Translation</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The financial statements are presented in United States dollars. In accordance with ASC 830, “<i>Foreign Currency Matters</i>”, foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Revenue and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Foreign currency transaction gains and losses are recorded in the statements of operations as a component of other income (expense).</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Software</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company has software that it uses for the development of certain mobile phone applications. The software and any upgrades are being amortized over useful lives ranging from 3 – 5 years.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Website</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company accounts for website development costs in accordance with ACS 350-50 “<i>Website Development Costs</i>”. Costs incurred to register domain names, integrated databases and add additional functionality are being amortized over 1 – 3 years. Costs incurred in general maintenance of the website or hosting costs are expensed as incurred.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Research and Development Costs</u></p> <p style='margin:0in 0in 0pt'> </p>Costs incurred in research and developments are expenses as incurred.
<!--egx--><p style='margin:0in 0in 0pt'><u>Deferred Financing Costs</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Costs with respect to issue of common stock, warrants, stock options or debt instruments by the Company are initially deferred and ultimately offset against the proceeds from such equity transactions or amortized as debt discount over the term of any debt funding if successful or expensed if the proposed equity or debt transaction is unsuccessful. </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>For the three month periods ended July 31, 2014 and 2013, the Company had paid refundable deposits of $11,500 and $0, respectively. The deposits were made to two consulting companies that were to assist the Company in obtaining a $125,000 bridge loan to be utilized by the Company for its public registration purposes, and to assist the Company with an $8,000,000 private equity placement. The deposits are refundable for non-performance. As of the date of this report, neither the bridge loan nor the private placement had been secured and a $1,500 cash refund had been received during the three months ended July 31, 2014. </p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Impairment of Long-Lived and Intangible Assets</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In the event that facts and circumstances indicated that the cost of long-lived and intangible assets may be impaired, an evaluation of recoverability will be performed. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset were compared to the asset's carrying amount to determine if a write-down to market value or discounted cash flow value is required.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Advertising costs</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Advertising costs are expensed as incurred. The Company recorded no advertising costs during the three months ending July 31, 2014 and 2013.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Financial Instruments</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. Accounting Standards Codification (“ASC”) 820-10 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. ASC 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Level 3: Significant unobservable inputs which reflect a reporting entity’s own assumptions about the assumptions that market participants would use for pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.</p> <p style='margin:0in 0in 0pt'> </p>The recorded amounts of financial instruments, including cash equivalents, accounts payable, accrued expenses, note payable and loan from director approximate their market values as of July 31, 2014 due to the short term maturities of these financial instruments.
<!--egx--><p style='margin:0in 0in 0pt'><u>Income Taxes</u></p> <p style='margin:0in 0in 0pt'> </p>The Company accounts for income taxes in accordance with FASB ASC 740 “<i>Income Taxes</i>”. Under FASB ASC 740, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial statement reported amounts at each period end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. The provision for income taxes represents the tax expense for the period, if any, and the change during the period in deferred tax assets and liabilities. FASB ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. Under FASB ASC 740, the impact of an uncertain tax position on the income tax return may only be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. At July 31, 2014 and 2013, the Company has no unrecognized tax benefits.
<!--egx--><p style='margin:0in 0in 0pt'><i><u>Basic and Diluted Net Income (Loss) per Share</u></i></p> <p style='margin:0in 0in 0pt'> </p>The Company computes net income (loss) per share in accordance with ASC 260, "<i>Earnings per Share</i>" which 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 shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, 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 common shares if their effect is anti-dilutive. For the six month ended July 31, 2014, the Company did have potentially dilutive debt instruments that have been excluded from the earnings per share calculation; as no event has occurred that would permit the debt instrument to become convertible. No potentially dilutive debt or equity instruments were issued and outstanding during the six months ended July 31, 2013.
<!--egx--><p style='margin:0in 0in 0pt'><u>Stock Based Compensation</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. The Company has adopted a stock option plan, as disclosed in <i>Note 7 – Stockholders’ Deficit</i> below. As of the six month periods ended July 31, 2014 and 2013, no stock options had been issued or were outstanding.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Comprehensive Income (Loss) </u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Comprehensive income is defined as all changes in stockholders’ equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. From our Inception there were no differences between our comprehensive loss and net loss.</p> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Reclassifications</u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Certain reclassifications have been made to prior period financial statements to conform to the 2014 presentation.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Business Segments </u></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company believes that its activities during the six month periods ended July 31, 2014 and 2013 comprised a single segment.</p>
<!--egx--><p style='margin:0in 0in 0pt'><u>Recently Issued Accounting Pronouncements</u></p> <p style='margin:0in 0in 0pt'> </p>The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of its operations as than in respect of the change in accounting for development stage companies as discussed above..
<!--egx--><p style='margin:0in 0in 0pt'>The provision for refundable federal income tax consists of the following for the three and six month periods ending:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0"> <tr> <td width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.3pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td> <td width="71" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="86" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:64.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Three months ended</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31,</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2014</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="103" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:77.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Three months </p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>ended</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31,</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2013</p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Six months ended </p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31, 2014</p></td> <td valign="top" width="22" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="71" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Six months ended </p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31, 2013</p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Federal income tax benefit attributed to:</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Net operating income (loss)</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>3,849</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(4,139)</p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(27,358)</p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(8,837)</p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>(Brought forward losses) / valuation</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(3,849)</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>4,139</p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>27,358</p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>8,837</p></td></tr> <tr> <td valign="top" width="247" style='border-top:#f0f0f0;border-right:#f0f0f0;width:185.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Net benefit</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="65" style='border-top:#f0f0f0;border-right:#f0f0f0;width:48.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td> <td valign="top" width="17" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15.75pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="82" style='border-top:#f0f0f0;border-right:#f0f0f0;width:61.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td> <td valign="top" width="24" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.25in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="90" style='border-top:#f0f0f0;border-right:#f0f0f0;width:67.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td> <td valign="top" width="22" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16.5pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="71" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;width:53.25pt;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'> </p></td></tr></table></div>
<!--egx--><p style='margin:0in 0in 0pt'>The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="294" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:220.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'></td> <td width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'></td> <td width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'></td> <td width="86" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:64.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'></td> <td width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'></td> <td width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'></td> <td width="117" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:87.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'></td></tr> <tr> <td valign="top" width="294" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:220.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="86" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:64.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="117" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:87.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="294" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:220.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="107" colspan="2" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:80.25pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>July 31, </p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2014</p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="138" colspan="2" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:103.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>January 31,</p> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2014</p></td></tr> <tr> <td valign="top" width="294" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:220.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Deferred tax attributed:</p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="86" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:64.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="117" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:87.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="294" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:220.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Net operating loss carryover</p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="86" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:64.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>80,593</p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="117" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:87.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>53,235</p></td></tr> <tr> <td valign="top" width="294" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:220.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Less: change in valuation allowance</p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="86" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:64.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(80,593)</p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="117" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:87.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(53,235)</p></td></tr> <tr> <td valign="top" width="294" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:220.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Net deferred tax asset</p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="86" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:64.5pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td> <td valign="top" width="17" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:12.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="21" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:15.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$</p></td> <td valign="top" width="117" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:87.75pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr></table></div>
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Mr. gagnon is not scheduled to resume his duties unless otherwise agreed to in writing. mr. gagnon was paid 0 and 1000 for the period and year ended july 31 2014 and january 31 2014 respectively
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Company secured an extension of the convertible note payable from august 1 2014 the note payable was further extended to november 9 2014
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false
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