UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

  X .

Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

For the quarterly period ended October 31, 2015

 

 

      .

Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

For the transition period from to __________

 

 

 

Commission File Number: 333-157783

 

3D MakerJet, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

26-4083754

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)

 

4303 Vineland Road, F2, Orlando, FL 32811

(Address of principal executive offices)

 

(407) 930-0807

(Registrant’s telephone number)

 

_______________________________________________________________

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

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days       . Yes   X . No

 

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

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

 

      . Large accelerated filer

      . Non-accelerated filer

      . Accelerated filer

  X . Smaller reporting company

 

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


State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 291,200,000 common shares as of December 17, 2015.











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TABLE OF CONTENTS

 

Page

PART I – FINANCIAL INFORMATION

 

 

 

Item 1:

Financial Statements

3

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

10

Item 3:

Quantitative and Qualitative Disclosures About Market Risk

14

Item 4:

Controls and Procedures

14

 

PART II – OTHER INFORMATION

 

Item 1:

Legal Proceedings

15

Item 2:

Unregistered Sales of Equity Securities and Use of Proceeds

15

Item 3:

Defaults Upon Senior Securities

15

Item 4:

Mine Safety Disclosure

15

Item 5:

Other Information

15

Item 6:

Exhibits

15













PART I -FINANCIAL INFORMATION


Item 1. Financial Statements


Our consolidated financial statements included in this Form 10-Q are as follows:


Consolidated Balance Sheets as of October 31, 2015 and July 31, 2015 (unaudited)

4

Consolidated Statements of Operations for the three months ended October 31, 2015 and 2014 (unaudited)

5

Consolidated Statements of Cash flows for the three months ended October 31, 2015 and 2014 (unaudited)

6

Notes to Consolidated Financial Statements

7


These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended October 31, 2015 are not necessarily indicative of the results that can be expected for the full year.













3






3D MAKERJET, INC.

CONSOLIDATED BALANCE SHEETS

AS OF OCTOBER 31, 2015 AND JULY 31, 2015

(UNAUDITED)


ASSETS

 

October 31, 2015

 

July 31, 2015

Current Assets:

 

 

 

 

Cash

$

13,758

$

14,288

Inventory

 

52,081

 

54 ,520

Total current assets

 

65,839

 

68,808

 

 

 

 

 

Equipment, net of accumulated depreciation of $19,610 and $17,036, respectively

 

7,723

 

10,297

Prepaid expenses and other assets

 

7,234

 

7,234

Total Assets

$

80,796

$

86,339

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable and accrued liabilities

$

179,366

$

119,672

Convertible notes payable, net of discount of $228,474 and $212,712, respectively

 

478,204

 

297,966

Total Current Liabilities

 

657,570

 

417,638

 

 

 

 

 

Long-term Liabilities:

 

 

 

 

Convertible notes payable, net of discount of $0 and $66,998, respectively

 

 

 

61,002

Notes payable

 

43,000

 

43,000

 

 

 

 

 

Total Liabilities

 

700,570

 

521,640

 

 

 

 

 

Stockholders' Deficit:

 

 

 

 

Preferred stock; $0.001 par value; 10,000,000 shares authorized; none issued or  outstanding

 

-

 

-

Common stock; $0.001 par value; 300,000,000 shares authorized; 291,200,000 and 265,200,000 shares issued and outstanding at October 31, 2015 and July 31, 2015, respectively

 

291,200

 

291,200

Additional paid-in capital

 

308,065

 

271,039

Accumulated deficit

 

(1,219,039)

 

(997,540)

Total Stockholders' Deficit

 

(619,774)

 

(435,301)

Total Liabilities and Stockholders' Deficit

$

80,796

$

86,339






See accompanying notes to the financial statements.




4






3D MAKERJET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTH PERIODS ENDED OCTOBER 31, 2015 AND 2014

(UNAUDITED)



 

 

2015

 

2014

REVENUES

$

12,000

$

5,995

COST OF REVENUES

 

2,439

 

-

GROSS PROFIT

 

9,561

 

5,995

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

General and administrative

 

22,194

 

33,203

Compensation

 

36,464

 

55,884

Professional fees

 

58,505

 

32,555

TOTAL OPERATING EXPENSES

 

117,163

 

121,642

 

 

 

 

 

LOSS FROM OPERATIONS

 

(107,602)

 

(115,647)

OTHER INCOME (EXPENSE)

 

 

 

 

Interest expense

 

(113,897)

 

(81,953)

PROVISION FOR INCOME TAXES

 

-

 

-

 

 

 

 

 

NET INCOME (LOSS)

$

(221,499)

$

(197,600)

NET INCOME (LOSS) PER SHARE: BASIC AND DILUTED

$

-

$

-

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING :BASIC AND DILUTED

 

291,200,000

 

265,200,000
















See accompanying notes to the financial statements.






5






3D MAKERJET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED OCTOBER 31, 2015 AND 2014

(UNAUDITED)


 

 

Three Months Ended October 31,

 

 

2015

 

2014

Operating Activities:

 

 

 

 

Net loss

$

(221,499)

$

(197,600)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Amortization of debt discount

 

88,262

 

66,855

Depreciation and amortization expense

 

2,574

 

3,445

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

-

 

(2,276)

Inventory

 

2,439

 

(2,422)

Accounts payable and accrued liabilities

 

59,694

 

27,454

Net Cash Used in Operating Activities

 

(68,530)

 

(104,544)

 

 

 

 

 

Financing Activities

 

 

 

 

Proceeds from convertible debt

 

68,000

 

105,000

Net Cash Provided by Financing Activities

 

68,000

 

105,000

 

 

 

 

 

Net (Decrease) Increase in Cash

 

(530)

 

456

Cash at Beginning of Period

 

14,288

 

19,923

Cash at End of Period

$

13,758

$

20,379

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Interest paid

$

-

$

-

Income taxes paid

$

-

$

-

 

 

 

 

 

Non-Cash Financing Transactions:

 

 

 

 

Discount on convertible promissory notes due to beneficial conversion

 

 

 

 

feature

$

37,026

$

105,000














See accompanying notes to the financial statements.





6






3D MAKERJET, INC.

NOTES TO THE FINANCIAL STATEMENTS OCTOBER 31, 2015

(UNAUDITED)


NOTE 1 - ORGANIZATION, BASIS OF ACCOUNTING AND SIGNIFICANT ACCOUNTING POLICIES


3D MakerJet, Inc. (the Company) was incorporated under the laws of the State of Nevada on January 12, 2009. The Company is developing a business plan focused on the sale of 3D printers, scanners, and ancillary equipment.


The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended July 31, 2015 and notes thereto contained in the Company's Annual Report on Form 10-K.


Use of Estimates


The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.


Commitments and Contingencies


Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.


Net Loss Per Common Share


Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There were no potentially dilutive shares outstanding as of October 31, 2015 or July 31, 2015. As the Company has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive, and therefore, are not included in the calculation.


New Accounting Standards


In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amends previous guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company did not have any debt issuance costs by the end of its first quarter for fiscal year 2016, but plans to adopt ASU No. 2015-03 regarding the presentation of debt issuance costs for fiscal year 2016.


Subsequent Events


The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company evaluates subsequent events from the date of the balance sheet through the date when the financial statements are issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them with the SEC on EDGAR system.



7






NOTE 2 -GOING CONCERN


The Company was formed in January 2009. It has incurred cumulative losses since inception, has a negative working capital of $591,731 and an accumulated deficit of $1,219,039 at October 31, 2015, and has had recurring negative cash flows from operations. While the Company is attempting to raise both debt and equity capital, expand operations and produce revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to seek funds from outside business contacts as needed. There can be no assurances to that its business plan will succeed. Accordingly, there is doubt that the Company will be able to realize its assets and liquidate its liabilities in the normal course of business operations.


The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.


NOTE 3 - CONVERTIBLE PROMISSORY NOTES


On various dates from June 16, 2014 through October 31, 2015, the Company issued convertible promissory notes totaling $706,678, including $257,631 to an employee. Of this amount, $399,500, including $62,000 from the acquisition of 3D MakerJet Asia was recorded during the year ended July 31, 2015, and $68,000, was recorded during the three months ended October 31, 2015. At the time of issuance, the notes were evaluated and were determined to contain a beneficial conversion feature. As a result, a discount on convertible promissory notes totaling $569,800, including $200,238 to the employee, was recorded with a corresponding credit to additional paid-in capital. Accumulated discount amortization as of October 31, 2015 amounted to $341,327. Discount amortization, totaling $21,489, was recorded on the books of 3D MakerJet Asia through the date of acquisition of November 5, 2014.


Description

 

Balance,

 October 31, 2015

 

Balance,

 July 31, 2015


41 convertible promissory notes, in amounts ranging from $2,500 to $131,631, all maturing within one year, bearing interest at 15% per annum, convertible into common stock at the conversion price of $0.001 per share

$

706,678

$

638,678

 

 

 

 

 

Original beneficial conversion feature discount

 

(569,800)

 

(532,775)

Discount amortization

 

341,327

 

253,065

Unamortized discount

 

(228,473)

 

(279,710)


Net

$

478,205

$

358,958


 Presented in the balance sheet as:



Description

 

Balance

October 31, 2015

 

Balance

July 31, 2015


Short-term


$


478,204


$


297,966

Long-term

 

-

 

61,002

 

Total

$

478,204

$

358,968




8






NOTE 4 - STOCKHOLDERS' DEFICIT


On September 30, 2014, our board of directors and majority shareholder approved a twenty-six for one (26: 1) forward split of our issued and outstanding common stock. The total number of authorized shares was not changed. All share and per share information has been retroactively adjusted to reflect the reverse stock split in the financial statements and in the notes to the financial statements for all periods presented, to reflect the reverse stock split as if it occurred at beginning of the comparable year.


On various dates during the three month period ended October 31, 2015, the Company recorded increases totaling $37,026 to additional paid-in capital related to beneficial conversion features on convertible promissory notes.


NOTE 5 - SUBSEQUENT EVENTS


The Company has evaluated all events that occurred after the balance sheet date of October 31, 2015 through December 19, 2015, the date when the financial statements were issued, and identified the following reportable subsequent event:


Subsequent to the end of the period, the Company issued convertible promissory notes totaling $47,500. The notes mature within one year, carry interest at 15%, and are convertible into the common stock of the Company at a conversion price of $0.001 per share.












9






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


Forward-Looking Statements


Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words ''believes," ''project," "expects," "anticipates," "estimates," "intends," "strategy," ''plan," ''may," ''will," ''would," ''will be," "will continue," "will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.


Company Overview


We are a Nevada corporation based out of Orlando, Florida. We import and sell state of the art 3D printers, scanners, and ancillary equipment. Our mission is to provide individual and corporate customers with the most advanced and reliable cutting edge 3D printing technology in the most cost effective packages available in the marketplace at whatever level is appropriate for their needs. We want our business to be the "go to" vendor of 3D printers for individuals and businesses.


The 3D printing industry is in its very early stages but is already getting more press and generating more excitement than almost any other technological development of recent years. It is not often that a new idea is constantly described as moving the goalposts for the way we actually live our lives. Amidst all the press and the hype, the reality of what the technology is capable of and the speed of its improvement is breathtaking.


We are committed to supplying the best plastic, medical, culinary, and powderless metal 3D printers in the industry, and we are supplied by one of the largest and most experienced 3D printing research, development and manufacturing entities in the world. 3D MakerJet's research and development partner and manufacturer, ZBOT I Guangzhou DNSPOWER Design Co. LTD, was founded in 2000, and we believe is a leader in the 3D printing industry. A cutting-edge developer in the plastics and manufacturing sector, ZBOT won the coveted CDA National Design Award for its ZBOT 3D Printer, which is the platform of the 3D MakerJet printer line, making their 3D printer the only CDA winner at the Civilian level, reflecting the product's superior quality, as well as the manufacturer's comprehensive strength, commitment and capabilities.


Our JD Printers


The 3D MakerJet Originator i1 is a state-of-the-art 3D printer that can utilize almost any of the currently manufactured plastic filaments supplied to the industry. It does, however, come with its own proprietary filament that we believe is head and shoulders above the rest in terms of quality and ease of use. The Originator's power feed system ensures smooth and continuous function and accurate and detailed reproduction. We believe the Originator outperforms almost any printer not only at its price point but those that cost twice as much. It is an advanced machine at an entry level price. The Originator il has print dimensions of 150xl50xl40mm and weighs only 8 kg. We also carry larger models capable of building bigger objects. The Originator i2 handles print dimensions of 250xl50x140mm. The Originator 35 has print dimensions of 250x250x350mm. The Originator 46 does 350x350x460mm in PLA only. The Originator 50 will print 500x500x500mm. The Originator Dl is smaller, even less expensive model designed for school and institutional use is available now.




10






 

 

 

 

 

 

 

 

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Model

Originator D1

Originator i1

Originator i2

Originator 35

Originator 46

Originator 50

Print Dimensions

100 x 100 y 100 z

150 x 150 y 140 z mm

250 x 150 y 140 z mm

250 x 250 y 350 z mm

350 x 350 y 460 z mm

500 x 500 y 500 z mm

Overall

Dimensions

L) 350 mm

W) 340 mm

H) 380 mm

L) 375 mm

W) 370 mm

H) 380 mm

L) 475 mm

W) 270 mm

H) 380 mm

L) 590 mm

W) 522 mm

H) 710 mm

L) 490 mm

W) 420 mm

H) 740 mm

L) 640 mm

W) 570 mm

H) 800 mm

Weight

13 kg

16.7 kg

18 kg

30 kg

44 kg

50 kg

Layer Thickness

0.1 - 0.5 m (Adjustable)

0.1 - 0.5 m (Adjustable)

0.1 - 0.5 m (Adjustable)

0.1 - 0.5 m (Adjustable)

0.1 - 0.5 m (Adjustable)

0.1 - 0.5 m (Adjustable)

Precision

±0.1mm - 100mm

±0.1mm - 100mm

±0.1mm - 100mm

±0.1mm - 100mm

±0.1mm - 100mm

±0.1mm - 100mm

Speed

30 - 100mm

per second

30 - 100mm

per second

30 - 100mm

per second

25 - 250mm

per second

25 - 200mm

per second

25 - 200mm

per second

Wattage

250 W

250 W

250 W

250 W

250 W

250 W

Nozzle Temperature

40 - 200

adjustable

40 - 250

adjustable

40 - 250

adjustable

40 - 250

adjustable

40 - 200

adjustable

40 - 200

adjustable

Power Supply

VAC 50/60hz


110V-220V

VAC 50/60hz


110V-220V

VAC 50/60hz


110V-220V

VAC 50/60hz


110V-220V

VAC 50/60hz


110V-220V

VAC 50/60hz


110V-220V

Material

PLA

ABS / PLA

ABS / PLA

ABS

PLA

PLA

Suggested Price

$399

$599

$999

$5,499

$5,999

$6,799


Originator i1 will retail for $599 plus tax and shipping. All orders will be fulfilled out of our warehouse facility at our corporate offices, located in Orlando, Florida. Shipping times and charges vary depending upon carrier chosen, but normal ground is 10-14 days.


Pipeline Products


Our research and development partner and manufacturer, ZBOT, has created two additional printers: the Candy Printer and the Powderless Metal Printer; and a full size scanner.


The Powderless Metal Printer is expected to be available for delivery by Fall 2015 and will be able to use various metal stocks and won't depend on the powdered alloys that so limit the effectiveness and scope of current metal printers. The preliminary size specifications for this new printer are expected to be approximately 3 feet tall, by 2 foot 6 inches wide.


The 3D MakerJet full size scanner is in our showroom and available for special order. This is a scanner capable of creating an image of a full grown human being or an object of equivalent size. This unit will come with its own standalone processor, display and proprietary software. Work on a hand sized small scanner is almost complete.


The new hand held Scanner HI is also now available for special order and will be offered at a price that will be very attractive compared to the few similar sized scanners on the market.


Recent Developments


Our Website


We launched a new interactive website complete with social media integration and daily live chat product support. We use two platforms currently -Facebook and Twitter- because it gives us the opportunity to share in the excitement and joy our customers are feeling when their ideas are made real. The same goes for support, so our customers get the most out of their 3D printing experience.




11






Our Showroom


We have opened a showroom and corporate offices in Orlando, Florida, in the center of the popular "imagine" capital of the United States. Located in the Quorum Center, our new showroom is strategically located in the exciting nexus of neighboring stalwarts such as Universal Studios® and Disney Resorts®.


The new 3D showroom fronts the home offices, warehousing and fulfillment center for the Company.


Operations


We have not generated significant revenues from our planned principal operations. However, we cannot take advantage of being an emerging growth company under the JOBS Act because we had gone public prior to December 8, 2011. We are developing a business plan focused on the sale of 3D printers, scanners and ancillary equipment.


Revenues


We have generated limited revenue since our inception. We have incurred losses since our inception. We do not expect to generate significant revenues until we successfully market and sell our 3D printers.


Operating Expenses


Operating expenses decreased to $117,163 for the three months ended October 31, 2015 from $121,642 for the three months ended October 31, 2014. Our operating expenses consisted of general and administrative, compensation and professional fees.


We anticipate our operating expenses will increase as we undertake our plan of operations. The increase will be attributable to administrative and operating costs associated with our 3D printer related activities and the professional fees associated with our reporting obligations under the Securities Exchange Act of 1934.


Other Expenses


Other expenses increased to $113,897 for the three months ended October 31, 2015 from other expenses of $81,953 for the three months ended October 31, 2014. Other expenses consisted entirely of interest expense. The increase is due to a number of convertible promissory notes issued from June 16, 2014 through October 31, 2015.


Net Loss


We incurred a net loss of $221,499 for the three months ended October 31, 2015, compared to net loss of $197,600 for the three months ended October 31, 2014.


Liquidity and Capital Resources


As of October 31, 2015, we had $65,839 in total current assets. We had current liabilities of $657,570 as of October 31, 2015. Accordingly, we had a working capital deficit of $591,731 as of October 31, 2015.


Operating activities used $68,530 in cash for the three months ended October 31, 2015, as compared with $104,544 used for the three months ended October 31, 2014. Our negative operating cash flow for October 31, 2015 was mainly a result of our net loss for the period, offset by the effects of debt discount amortization and the increase in accounts payable and accrued liabilities.


Financing activities for the three months ended October 31, 2015 generated $68,000 in cash, as compared with $105,000 for the three months ended October 31, 2014. Proceeds from financing activities consisted primarily of proceeds from convertible debt.


The success of our business plan beyond the next 12 months is contingent upon us obtaining additional financing. We intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on acceptable terms, or at all.




12






Going Concern


We were formed in January 2009. We have negative working capital of $591,731 and an accumulated deficit of $1,219,039 at October 31, 2015, and have had recurring negative cash flows from operations. While we are attempting to expand operations and produce revenues, our cash position may not be significant enough to support our daily operations. Management will seek funds from outside business contacts as needed. There can be no assurances that our business plan will succeed.


Our ability to continue as a going concern is dependent upon our ability to further implement our business plan and generate revenues. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.


Critical Accounting Policies


In December 2001, the SEC requested that all registrants list their most "critical accounting polices" in the Management Discussion and Analysis. The SEC indicated that a "critical accounting policy" is one which is both important to the portrayal of a company's financial condition and results, and requires management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.


Seasonality


We have not yet generated significant revenues. We are not yet aware as to whether there will be a significant seasonal impact in our business.


Recently Issued Accounting Pronouncements


We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.


Off-Balance Sheet Arrangements


We have no off-balance sheet arrangements, as defined in Item 303(aX4Xii) of Regulation S-K, obligations under any guarantee contracts or contingent obligations. We also have no other commitments, other than the costs of being a public company that will increase our operating costs or cash requirements in the future.



13






Item 3. Quantitative and Qualitative Disclosures About Market Risk


A smaller reporting company is not required to provide the information required by this Item.


Item 4. Controls and Procedures


Disclosure Controls and Procedures


We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of October 31, 2015. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of October 31, 2015, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.


A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of October 31, 2015, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.


Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting


Our Company plans to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending July 31, 2016: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.


We are unable to remedy our controls related to the inadequate segregation of duties and ineffective risk management until we receive financing to hire additional employees.


Changes in Internal Control Over Financial Reporting


There were no changes in our internal control over financial reporting during the three months ended October 31, 2015 that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.


Limitations on the Effectiveness of Internal Controls


Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.



14






PART II- OTHER INFORMATION


Item 1. Legal Proceedings


We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds


None


Item 3. Defaults upon Senior Securities


None


Item 4. Mine Safety Disclosures


Not applicable.


Item 5. Other Information


None


Item 6. Exhibits

 

Exhibit

Number

Description of Exhibit

31.1

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101**

The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended October 31, 2015 formatted in Extensible Business Reporting Language (XBRL).


**Provided herewith



15







SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


3D MakerJet, Inc.


Date:

December 17, 2015




By:

John Crippen

John Crippen

Title:

Chief Executive Officer and Director










16




CERTIFICATIONS


I, John Crippen, certify that;

 

1.

 

I have reviewed this quarterly report on Form 10-Q for the quarter ended October 31, 2015 of 3D MakerJet, Inc. (the “registrant”);

 

2.

 

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

 

3.

 

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

 

4.

 

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

 

a.

 

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

 

b.

 

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

 

c.

 

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

 

d.

 

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

 

5.

 

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

 

a.

 

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

 

b.

 

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 17, 2015


/s/ John Crippen                 

By: John Crippen

Title: Chief Executive Officer





CERTIFICATIONS


I, Ed Thaney, certify that;

 

1.

 

I have reviewed this quarterly report on Form 10-Q for the quarter ended October 31, 2015 of 3D MakerJet, Inc. (the “registrant”);

 

2.

 

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

 

3.

 

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

 

4.

 

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

 

a.

 

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

 

b.

 

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

 

c.

 

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

 

d.

 

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

 

5.

 

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

 

a.

 

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

 

b.

 

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 17, 2015


/s/ Ed Thaney              

By: Ed Thaney

Title: Chief Financial Officer






CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the quarterly Report of 3D MakerJet, Inc. (the “Company”) on Form 10-Q for the quarter ended October 31, 2015 filed with the Securities and Exchange Commission (the “Report”), I, John Crippen, Chief Executive Officer of the Company, and I, Ed Thaney, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:


1.

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


2.

The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.


By:

/s/ John Crippen                    

Name:

John Crippen

Title:

Principal Executive Officer, Principal Financial Officer and Director

Date:

December 17, 2015



By:

/s/ Ed Thaney                        

Name:

Ed Thaney

Title:

Principal Executive Officer, Principal Financial Officer and Director

Date:

December 17, 2015


This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.





v3.3.1.900
Document and Entity Information - shares
3 Months Ended
Oct. 31, 2015
Dec. 17, 2015
Document and Entity Information:    
Entity Registrant Name 3D MAKERJET, INC.  
Entity Trading Symbol dmjt  
Document Type 10-Q  
Document Period End Date Oct. 31, 2015  
Amendment Flag false  
Entity Central Index Key 0001458023  
Current Fiscal Year End Date --07-31  
Entity Common Stock, Shares Outstanding   291,200,000
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q1  


v3.3.1.900
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Oct. 31, 2015
Jul. 31, 2015
Current Assets:    
Cash $ 13,758 $ 14,288
Inventory 52,081 54,520
Total current assets 65,839 68,808
Equipment, net of accumulated depreciation of $19,610 and $17,036, respectively 7,723 10,297
Prepaid expenses and other assets 7,234 7,234
Total Assets 80,796 86,339
Current Liabilities:    
Accounts payable and accrued liabilities 179,366 119,672
Convertible notes payable, net of discount of $228,474 and $212,712, respectively 478,204 297,966
Total Current Liabilities 657,570 417,638
Long-term Liabilities:    
Convertible notes payable, net of discount of $0 and $66,998, respectively 0 61,002
Notes payable 43,000 43,000
Total Liabilities 700,570 521,640
Stockholders' Deficit:    
Preferred stock; $0.001 par value; 10,000,000 shares authorized; none issued or outstanding 0 0
Common stock; $0.001 par value; 300,000,000 shares authorized; 291,200,000 and 265,200,000 shares issued and outstanding at October 31, 2015 and July 31, 2015, respectively 291,200 291,200
Additional paid-in capital 308,065 271,039
Accumulated deficit (1,219,039) (997,540)
Total Stockholders' Deficit (619,774) (435,301)
Total Liabilities and Stockholders' Deficit $ 80,796 $ 86,339


v3.3.1.900
CONSOLIDATED BALANCE SHEETS PARENTHETICALS - USD ($)
Oct. 31, 2015
Jul. 31, 2015
Parentheticals    
Property and equipment, accumulated depreciation $ 19,610 $ 17,036
Convertible notes payable, discount 228,474 212,712
Convertible notes payable, net of discount long-term $ 0 $ 66,998
Preferred Stock, par value $ 0.001 $ 0.001
Preferred Stock, shares authorized 1,000,000 1,000,000
Common Stock, par value $ 0.001 $ 0.001
Common Stock, shares authorized 300,000,000 300,000,000
Common Stock, shares issued 291,200,000 265,200,000
Common Stock, shares outstanding 291,200,000 265,200,000


v3.3.1.900
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended
Oct. 31, 2015
Oct. 31, 2014
REVENUE:    
REVENUES $ 12,000 $ 5,995
COST OF REVENUES 2,439 0
GROSS PROFIT 9,561 5,995
OPERATING EXPENSES    
General and administrative 22,194 33,203
Compensation 36,464 55,884
Professional fees 58,505 32,555
TOTAL OPERATING EXPENSES 117,163 121,642
LOSS FROM OPERATIONS (107,602) (115,647)
OTHER INCOME (EXPENSE)    
Interest expense (113,897) (81,953)
PROVISION FOR INCOME TAXES 0 0
NET INCOME (LOSS) $ (221,499) $ (197,600)
NET INCOME (LOSS) PER SHARE: BASIC AND DILUTED $ 0.00 $ 0.00
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING :BASIC AND DILUTED 291,200,000 265,200,000


v3.3.1.900
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Operating Activities:    
Net loss $ (221,499) $ (197,600)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of debt discount 88,262 66,855
Depreciation and amortization expense 2,574 3,445
Changes in operating assets and liabilities:    
Accounts receivable 0 (2,276)
Inventory 2,439 (2,422)
Accounts payable and accrued liabilities 59,694 27,454
Net Cash Used in Operating Activities (68,530) (104,544)
Financing Activities    
Proceeds from convertible debt 68,000 105,000
Net Cash Provided by Financing Activities 68,000 105,000
Net (Decrease) Increase in Cash (530) 456
Cash at Beginning of Period 14,288 19,923
Cash at End of Period 13,758 20,379
Supplemental Cash Flow Information:    
Interest paid 0 0
Income taxes paid 0 0
Non-Cash Financing Transactions:    
Discount on convertible promissory notes due to beneficial conversion feature $ 37,026 $ 105,000


v3.3.1.900
ORGANIZATION, BASIS OF ACCOUNTING AND SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Oct. 31, 2015
ORGANIZATION, BASIS OF ACCOUNTING AND SIGNIFICANT ACCOUNTING POLICIES  
ORGANIZATION, BASIS OF ACCOUNTING AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 - ORGANIZATION, BASIS OF ACCOUNTING AND SIGNIFICANT ACCOUNTING POLICIES

 

3D MakerJet, Inc. (the Company) was incorporated under the laws of the State of Nevada on January 12, 2009. The Company is developing a business plan focused on the sale of 3D printers, scanners, and ancillary equipment.

 

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended July 31, 2015 and notes thereto contained in the Company's Annual Report on Form 10-K.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Commitments and Contingencies

 

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

 

Net Loss Per Common Share

 

Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There were no potentially dilutive shares outstanding as of October 31, 2015 or July 31, 2015. As the Company has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive, and therefore, are not included in the calculation.

 

New Accounting Standards

 

In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amends previous guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company did not have any debt issuance costs by the end of its first quarter for fiscal year 2016, but plans to adopt ASU No. 2015-03 regarding the presentation of debt issuance costs for fiscal year 2016.

 

Subsequent Events

 

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company evaluates subsequent events from the date of the balance sheet through the date when the financial statements are issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them with the SEC on EDGAR system.



v3.3.1.900
GOING CONCERN
3 Months Ended
Oct. 31, 2015
GOING CONCERN:  
GOING CONCERN

NOTE 2 -GOING CONCERN

 

The Company was formed in January 2009. It has incurred cumulative losses since inception, has a negative working capital of $591,731 and an accumulated deficit of $1,219,039 at October 31, 2015, and has had recurring negative cash flows from operations. While the Company is attempting to raise both debt and equity capital, expand operations and produce revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to seek funds from outside business contacts as needed. There can be no assurances to that its business plan will succeed. Accordingly, there is doubt that the Company will be able to realize its assets and liquidate its liabilities in the normal course of business operations.

 

The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



v3.3.1.900
CONVERTIBLE PROMISSORY NOTES
3 Months Ended
Oct. 31, 2015
CONVERTIBLE PROMISSORY NOTES  
CONVERTIBLE PROMISSORY NOTES

NOTE 3 - CONVERTIBLE PROMISSORY NOTES

 

On various dates from June 16, 2014 through October 31, 2015, the Company issued convertible promissory notes totaling $706,678, including $257,631 to an employee. Of this amount, $399,500, including $62,000 from the acquisition of 3D MakerJet Asia was recorded during the year ended July 31, 2015, and $68,000, was recorded during the three months ended October 31, 2015. At the time of issuance, the notes were evaluated and were determined to contain a beneficial conversion feature. As a result, a discount on convertible promissory notes totaling $569,800, including $200,238 to the employee, was recorded with a corresponding credit to additional paid-in capital. Accumulated discount amortization as of October 31, 2015 amounted to $341,327. Discount amortization, totaling $21,489, was recorded on the books of 3D MakerJet Asia through the date of acquisition of November 5, 2014.

 

Description

 

Balance,

 October 31, 2015

 

Balance,

 July 31, 2015

 

41 convertible promissory notes, in amounts ranging from $2,500 to $131,631, all maturing within one year, bearing interest at 15% per annum, convertible into common stock at the conversion price of $0.001 per share

$

706,678

$

638,678

 

 

 

 

 

Original beneficial conversion feature discount

 

(569,800)

 

(532,775)

Discount amortization

 

341,327

 

253,065

Unamortized discount

 

(228,473)

 

(279,710)

 

Net

$

478,205

$

358,958

 

 Presented in the balance sheet as:

 

 

Description

 

Balance

October 31, 2015

 

Balance

July 31, 2015

 

Short-term

 

$

 

478,204

 

$

 

297,966

Long-term

 

-

 

61,002

 

Total

$

478,204

$

358,968



v3.3.1.900
STOCKHOLDERS' DEFICIT
3 Months Ended
Oct. 31, 2015
STOCKHOLDERS' DEFICIT  
STOCKHOLDERS' DEFICIT

NOTE 4 - STOCKHOLDERS' DEFICIT

 

On September 30, 2014, our board of directors and majority shareholder approved a twenty-six for one (26: 1) forward split of our issued and outstanding common stock. The total number of authorized shares was not changed. All share and per share information has been retroactively adjusted to reflect the reverse stock split in the financial statements and in the notes to the financial statements for all periods presented, to reflect the reverse stock split as if it occurred at beginning of the comparable year.

 

On various dates during the three month period ended October 31, 2015, the Company recorded increases totaling $37,026 to additional paid-in capital related to beneficial conversion features on convertible promissory notes.



v3.3.1.900
SUBSEQUENT EVENTS
3 Months Ended
Oct. 31, 2015
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

NOTE 5 - SUBSEQUENT EVENTS

 

The Company has evaluated all events that occurred after the balance sheet date of October 31, 2015 through December 19, 2015, the date when the financial statements were issued, and identified the following reportable subsequent event:

 

Subsequent to the end of the period, the Company issued convertible promissory notes totaling $47,500. The notes mature within one year, carry interest at 15%, and are convertible into the common stock of the Company at a conversion price of $0.001 per share.



v3.3.1.900
ACCOUNTING POLICIES (Policies)
3 Months Ended
Oct. 31, 2015
ACCOUNTING POLICIES (Policies)  
Accounting Basis

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended July 31, 2015 and notes thereto contained in the Company's Annual Report on Form 10-K.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Commitments and Contingencies

Commitments and Contingencies

 

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

Net Loss Per Common Share

Net Loss Per Common Share

 

Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There were no potentially dilutive shares outstanding as of October 31, 2015 or July 31, 2015. As the Company has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive, and therefore, are not included in the calculation.

New Accounting Standards

New Accounting Standards

 

In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amends previous guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company did not have any debt issuance costs by the end of its first quarter for fiscal year 2016, but plans to adopt ASU No. 2015-03 regarding the presentation of debt issuance costs for fiscal year 2016.

Subsequent Events

Subsequent Events

 

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company evaluates subsequent events from the date of the balance sheet through the date when the financial statements are issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them with the SEC on EDGAR system.



v3.3.1.900
SCHEDULE CONVERTIBLE PROMISSORY NOTES (Tables)
3 Months Ended
Oct. 31, 2015
SCHEDULE CONVERTIBLE PROMISSORY NOTES  
SCHEDULE CONVERTIBLE PROMISSORY NOTES

Description

 

Balance,

 October 31, 2015

 

Balance,

 July 31, 2015

 

41 convertible promissory notes, in amounts ranging from $2,500 to $131,631, all maturing within one year, bearing interest at 15% per annum, convertible into common stock at the conversion price of $0.001 per share

$

706,678

$

638,678

 

 

 

 

 

Original beneficial conversion feature discount

 

(569,800)

 

(532,775)

Discount amortization

 

341,327

 

253,065

Unamortized discount

 

(228,473)

 

(279,710)

 

Net

$

478,205

$

358,958

 

 Presented in the balance sheet as:

 

 

Description

 

Balance

October 31, 2015

 

Balance

July 31, 2015

 

Short-term

 

$

 

478,204

 

$

 

297,966

Long-term

 

-

 

61,002

 

Total

$

478,204

$

358,968



v3.3.1.900
Going concern (Details)
Oct. 31, 2015
USD ($)
GOING CONCERN DETAILS  
Negative working capital $ 591,731
Accumulated deficit $ 1,219,039


v3.3.1.900
Convertible promissory notes (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended 17 Months Ended
Oct. 31, 2015
Jul. 31, 2015
Oct. 31, 2015
Convertible promissory notes (Narrative)      
Company issued convertible promissory notes totaling $ 0 $ 0 $ 706,678
Company issued convertible promissory note to an employee 0 0 257,631
Convertible notes from the acquisition of 3D MakerJet Asia, LTD 68,000 62,000 0
Discount on convertible promissory notes totaling 0 0 569,800
Discount on convertible promissory notes including to employee 0 0 200,238
Accumulated discount amortization 341,327 0 0
Discount amortization recorded on the books of 3D MakerJet Asia 21,489 0 0
The net convertible note balance included in the acquisition $ 478,205 $ 0 $ 0


v3.3.1.900
Convertible promissory notes (Details) - USD ($)
Oct. 31, 2015
Jul. 31, 2015
Convertible promissory notes Details    
41 convertible promissory notes, in amounts ranging from $2,500 to $131,631, all maturing within one year, bearing interest at 15% per annum, convertible into common stock at the conversion price of $0.001 per share $ 706,678 $ 638,678
Original beneficial conversion feature discount (569,800) (532,775)
Discount amortization 341,327 253,065
Unamortized discount (228,473) (279,710)
Net Convertible promissory notes $ 478,205 $ 358,958


v3.3.1.900
Convertible promissory notes Parentheticals (Details)
Oct. 31, 2015
USD ($)
$ / shares
Convertible promissory notes Parentheticals  
Convertible promissory notes amount, range minimum $ 2,500
Convertible promissory notes amount, range maximum $ 131,631
Convertible promissory notes maturing in year 1
Interest rate per annum 15.00%
Conversion price per share | $ / shares $ 0.001


v3.3.1.900
Convertible promissory notes presented (Details) - USD ($)
Oct. 31, 2015
Jul. 31, 2015
Convertible promissory notes presented in the balance sheet Details    
Short-term $ 478,204 $ 297,966
Long-term 0 61,002
Total $ 478,204 $ 358,968


v3.3.1.900
Equity transactions (Details)
Oct. 31, 2015
USD ($)
Sep. 30, 2014
Equity Transactions Details    
Shareholder approved a twenty-six for one forward split of our issued and outstanding common stock   26
Increases totaling to additional paid-in capital related to beneficial conversion features on convertible promissory notes $ 37,026  


v3.3.1.900
SUBSEQUENT EVENTS (Details)
Oct. 31, 2015
USD ($)
$ / shares
SUBSEQUENT EVENTS TRANSACTIONS DETAILS  
Issued convertible promissory notes totaling | $ $ 47,500
Notes mature within year 1
Notes carry interest at per annum 15.00%
Conversion price per share | $ / shares $ 0.001