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EXCEL - IDEA: XBRL DOCUMENT - Concrete Leveling Systems IncFinancial_Report.xls
EX-32 - Concrete Leveling Systems Incex32.txt
EX-31.1 - Concrete Leveling Systems Incex31-1.txt
EX-31.2 - Concrete Leveling Systems Incex31-2.txt

                                  UNITED STATES
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)
    ACT OF 1934

                 For the quarterly period ended October 31, 2013


            For the transition period from __________ to __________

                        Commission file number 000-53048

                         Concrete Leveling Systems, Inc.
        (Exact name of small business issuer as specified in its charter)

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

                     5046 E. Boulevard, NW, Canton, OH 44718
                    (Address of principal executive offices)

                                 (330) 966-8120
                           (Issuer's telephone number)

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

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

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

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

Large accelerated filer [ ]                        Accelerated filer [ ]

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

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


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


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date: 6,395,418

PART I - FINANCIAL INFORMATION ITEM 1 - FINANCIAL STATEMENTS Concrete Leveling Systems Inc. Balance Sheets October 31, 2013 and July 31, 2013 October 31 July 31 ---------- ---------- (Unaudited) (Audited) ASSETS Current Assets Cash in bank $ 1,197 $ 2,171 Accounts receivable 4,495 4,495 Current portion of notes receivable 32,013 30,113 Interest Receivable 3,006 2,447 Deposits -- 12,000 Inventory 13,370 1,070 ---------- ---------- Total Current Assets 54,081 52,296 ---------- ---------- Property, Plant and Equipment Equipment 700 700 Less: Accumulated depreciation (700) (700) ---------- ---------- Total Property, Plant and Equipment -- -- ---------- ---------- Other Assets Notes receivable, net of current portion 29,419 33,337 Deposits 10 10 ---------- ---------- 29,429 33,347 ---------- ---------- TOTAL ASSETS $ 83,510 $ 85,643 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable $ 67,624 $ 72,524 Advances - Stockholders 35,600 15,000 Notes payable - stockholders 62,450 62,750 Other accrued expenses 23,169 23,172 Deferred Revenue 34 -- ---------- ---------- Total Current Liabilites 188,877 173,446 ---------- ---------- Stockholders' Equity (Deficit) Common stock (par value $0.001) 100,000,000 shares authorized: 6,395,418 shares issued and outstanding at October 31, 2013 and July 31, 2013 6,395 6,395 Additional paid-in capital 405,355 405,355 Retained (deficit) (517,117) (499,553) ---------- ---------- Total Stockholders' Equity (Deficit) (105,367) (87,803) ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 83,510 $ 85,643 ========== ========== See notes to financial statements. 2
Concrete Leveling Systems Inc. Statements of Income For the Three Months Ended October 31, 2013 and 2012 2013 2012 ---------- ---------- (Unaudited) (Unaudited) Equipment and parts sales $ -- $ 384 ---------- ---------- Cost of Sales -- 183 ---------- ---------- Gross Margin -- 201 ---------- ---------- Expenses Selling, general and administration 18,203 32,436 ---------- ---------- (Loss) from Operations (18,203) (32,235) Other Income (Expense) Interest income 847 722 Interest expense (208) (1,869) ---------- ---------- Total Other Income (Expense) 639 (1,147) ---------- ---------- Net (Loss) Before Income Taxes (17,564) (33,382) Provision for Income Taxes -- -- ---------- ---------- Net (Loss) $ (17,564) $ (33,382) ========== ========== Net (Loss) per Share - Basic and Fully Diluted $ (0.00) $ (0.01) ========== ========== Weighted average number of common shares outstanding - basic and fully diluted 6,395,418 6,395,418 ========== ========== See notes to financial statements. 3
Concrete Leveling Systems, Inc. Statements of Cash Flows For the Three Months Ended October 31, 2013 and 2012 2013 2012 -------- -------- (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) $(17,564) $(33,382) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation Decrease (Increase) in inventory (7,000) (7,214) Decrease (Increase) in interest receivable (559) -- (Increase) Decrease in prepaid expenses -- (3,332) Increase (Decrease) in accounts payable (4,900) 30,705 Increase (Decrease) in deferred revenue 34 -- Increase (Decrease) in other accrued expenses (3) 2,869 Increase (Decrease) in cash overdraft -- -- Decrease (Increase) in Deposits 7,000 -- -------- -------- Net cash from (used by) operating activities (22,992) (10,354) -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Payments on notes receivable 2,018 2,704 -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Loans from (payments to) stockholders 20,000 -- -------- -------- Net Increase (decrease) in cash (974) (7,650) Cash and equivalents - beginning 2,171 9,658 -------- -------- Cash and equivalents - ending $ 1,197 $ 2,008 ======== ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Interest $ 208 $ 226 ======== ======== Income Taxes $ -- $ -- ======== ======== See notes to financial statements. 4
Concrete Leveling Systems, Inc. Notes to Financial Statements October 31 2013 NOTE A - BASIS OF PRESENTATION The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the financial statements and footnotes thereto included in the Concrete Leveling Systems, Inc. Form 10-K filing for the period ended July 31, 2013. NOTE B - GOING CONCERN As shown in the financial statements, the Company incurred a net loss of $17,564 for the quarter ended October 31, 2013, and has incurred substantial net losses since its inception. At October 31, 2013, current liabilities exceed current assets by $134,796. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue existence. 5
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION Concrete Leveling Systems, Inc. ("CLS" or "The Company") became an operating company in 2009. As of October 31, 2013, CLS has cash assets of $1,197, accounts receivable in the amount of $4,495 and notes receivable in the amount of $61,432. As of October 31, 2013, the Company was carrying inventory valued at $13,370. The Company's cash flow is currently not sufficient to maintain operations. However, the Company is receiving monthly payments from the self financed sale of its concrete leveling service units, which creates some cash flow for the Company. Mr. Edward A. Barth has continued to contact companies regarding the service unit, but has not receive any positive leads during the last quarter. CLS continues to have cash flow issues. As of October 31, 2013, it had total current liabilities of $188,887, which includes advances from stockholders and notes payable to stockholders in the amount of $98,050. The company continues to experience negative income figures for the quarter. However, it is hopeful that as the domestic economy continues to improve, credit will be eased and individuals who have expressed interest in purchasing a concrete leveling service unit will find necessary financing to do so. There are no off balance sheet arrangements involving CLS at this time. Liquidity Issues. Since its inception, the Company has experienced continued need for additional liquidity in order to provide for operating expenses and to purchase components for the assembly of its product. The company maintains an inventory of one partially completed service unit. In the event the Company receives an order for a concrete leveling service unit, it will seek a down payment in an amount sufficient to complete the unit, in order not to have to borrow additional funds. Capital Resources. CLS has made no material commitments for capital expenditures as of the end of its fiscal quarter ending October 31, 2013 and does not anticipate any immediate need for material capital expenditures over the next quarter. Result of Operations. During the quarter ended October 31, 2013, the Company has experienced little activity. Due to the seasonal nature of concrete leveling operations in most of the United States and Canada, prospective buyers are not looking to purchase a concrete leveling service unit for a winter delivery. Activity in sales of the units will not begin to pick up until late winter of 2014. ITEM 4 - CONTROLS AND PROCEDURES Disclosure Controls and Procedures. Pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934 ("Exchange Act"), the Company carried out an evaluation, with the participation of the Company's management, which consists of the Company's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the Company's disclosure controls and procedures (as defined under Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time period specified by the United States Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. 6
Changes in Internal Control Over Financial Reporting. There are no changes in the Company's internal controls over financial reporting that occurred during the three months ended October 31, 2013 that have materially affected, or are reasonably likely to materially affect, the internal controls over financial reporting. PART II - OTHER INFORMATION ITEM 1 - LEGAL PROCEEDINGS To the best of its knowledge, management of CLS is not aware of any legal proceedings in which CLS is currently involved. ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS There were no unregistered sales of equity securities during this quarter. ITEM 3 - DEFAULTS UPON SENIOR SECURITIES There are no defaults upon any senior securities. ITEM 4 - MINE SAFETY DISCLOSURES Not applicable. ITEM 5 - OTHER INFORMATION There are no items of information required to be disclosed pursuant to this item at this time. ITEM 6 - EXHIBITS A. The following are filed as Exhibits to this report. The numbers refer to the exhibit table of Item 601 of regulation S-K: Reference is hereby made to the exhibits contained in the registration statement (Form SB-2) filed by Concrete Leveling Systems, Inc. Exhibit 31.1 - Rule 13a-14(a)/15d-14(a) - Certification Exhibit 31.2 - Rule 13a-14(a)/15d-14(a) - Certification Exhibit 32 - Section 1350 - Certification Exhibit 101 - Interactive Data Files Pursuant to Rule 405 of Regulation S-T 7
SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CONCRETE LEVELING SYSTEMS, INC. Date: December 5, 2013 By: /s/ Edward A. Barth ------------------------------------ Edward A. Barth, Principal Executive Officer Date: December 5, 2013 By: /s/ Suzanne I. Barth ------------------------------------ Suzanne I. Barth, Principal Financial Officer