EDGAR 10-K Filing

Company CIK: 1885849
Filing Year: 2024
Filename: 1885849_10-K_2024_0001885849-24-000015.json

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ITEM 1. BUSINESS
Item 1. Description of Business.
DESCRIPTION OF BUSINESS
In General
Tofla Megaline Inc. (“Tofla” or “we” or "the Company") was incorporated in the state of Nevada on August 31, 2018. Tofla has only one officer and director who is Rodolfo Guerrero Angulo. As a development stage company specializing in software for robotic devices, we provide cutting-edge AI solutions that enhance security and efficiency. Our focus is on developing easy-to-use, high-quality, and cost-effective automation solutions for both standalone and integrated applications. Our key feature is developing software for security purposes. We offer a comprehensive suite of software products designed to improve the capabilities of robotic units in surveillance, patrol, and navigation. Our solutions include advanced algorithms for real-time threat detection, intelligent software for precise route planning and management, and predictive maintenance capabilities to minimize downtime and reduce costs. Beyond our software offerings, we also provide comprehensive consulting and technical support services.
Our solutions can be integrated with established control equipment and security systems, or used as independent versions. Our current projects involve software integration with security and video surveillance systems, along with the development of customizable solutions that support long-distance navigation, and task completion.
Our technology integrates a modular system of specialized devices for data collection, advanced AI for real-time threat analysis, and sophisticated software for seamless integration and control. The modular system offers flexibility and scalability, allowing for easy updates, troubleshooting, and customization to meet diverse security requirements. AI processes collected data in real-time, detecting potential threats and initiating appropriate responses. Our software coordinates the various components, ensuring smooth communication and operation between the modular devices, AI algorithms, and other system elements.
By harnessing the power of our modular system, AI capabilities, and innovative software, we are redefining the future of security technology and delivering unparalleled protection to our clients.
Principal Products and Services
Tofla’s primary business includes developing AI-powered software for robotic security systems. We offer a range of software products designed to enhance the capabilities of these robotic units, including:
- Threat Detection Software: This software utilizes advanced algorithms to analyze video footage in real time, identifying potential security threats such as unauthorized access, suspicious activities, and other violations.
- Route Optimization Software: Designed to optimize patrol routes for robotic units, ensuring efficient coverage of designated areas and minimizing redundant movements.
- Predictive Maintenance Software: This software leverages AI to predict potential maintenance issues based on usage patterns and sensor data, allowing for proactive interventions and minimizing downtime.
- Integration Software: Our solutions can be seamlessly integrated with existing security systems and control equipment, providing a unified and comprehensive security solution.
These software products collectively enable robotic security systems to perform their duties more effectively, efficiently, and proactively, enhancing overall security and reducing the burden on human personnel.
Our Company is at the forefront of robotic security software development, leveraging years of investment in AI, autonomy, and efficiency. We offer a comprehensive suite of solutions designed to enhance the capabilities of robotic units in surveillance, patrol, and threat detection. Our software is tailored to meet the specific needs of both individual users and businesses seeking to improve their security posture. We are committed to providing personalized support and ensuring the highest standards of performance and reliability.
Marketing Plans
To enhance our market presence and drive growth, we will implement a comprehensive marketing strategy encompassing digital marketing, partnerships, and customer relationship management. Our digital marketing efforts will focus on SEO, PPC advertising, and email marketing to increase online visibility and generate leads. To foster customer loyalty and provide exceptional service, we will implement a robust CRM system and prioritize customer satisfaction. By effectively executing these marketing strategies, we aim to position our Company as a leading player in the security software market and achieve our business goals.
Competition
The software development market is highly competitive, with a large number of companies operating in the space. Entry barriers are relatively low, leading to intense competition. To differentiate ourselves, we will focus on providing tailored solutions that address the specific needs of each client.
We do not maintain any insurance and do not intend to maintain insurance in the future. Because we do not have any insurance, if we are made a party of a products liability action, we may not have sufficient funds to defend the litigation. If that occurs, a judgment could be rendered against us that could cause us to cease operations.
Employees; Identification of Certain Significant Employees.
We have 1 (one) employee who is Rodolfo Guerrero Angulo, our officer and director. We may hire employees on an as needed basis following the process of implementing our business plan.
Offices
Our business office is located at Blvd Porta Trento 122 CP, Blvd Porta Fontana. C.P., Leon, Guanajuato, Mexico, 37134. This office space is provided by our President for the Company's needs at no cost. There is no formal rent agreement. Our telephone number is +525541607366.
Available Information
We are a public company, and our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to such reports are filed with the SEC. We are subject to the informational requirements of the Exchange Act and file or furnish reports, proxy statements, and other information with the SEC. Such reports and other information filed by us with the Securities and Exchange Commission (the “SEC”) is available at www.sec.gov. Our website is https://tofla.top/, and we can be contacted at principal@tofla.top. The contents of the websites referred to above are not incorporated into this filing.
Government Regulation
We will be required to comply with all regulations, rules, and directives of governmental authorities and agencies applicable to our business in any jurisdiction which we would conduct activities. We do not believe that regulation will have a material impact on the way we conduct our business.

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ITEM 1A. RISK FACTORS
Item 1A. Risk Factors.
Not applicable to smaller reporting companies.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments.
Not applicable to smaller reporting companies.

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ITEM 2. PROPERTIES
Item 2. Properties.
We do not own any real estate or other properties.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings.
During the past ten years, none of the following occurred with respect to the President of the Company: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of any competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting him involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the commodities futures trading commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
We are not currently a party to any legal proceedings, and we are not aware of any pending or potential legal actions.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures.
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for Common Equity and Related Stockholder Matters.
MARKET INFORMATION
There is a limited public market for our common shares. The common shares of the Company are listed on OTC Markets under the ticker symbol of TFLM since December 28, 2023. Prior to that time, there was no public market for our stock.
HOLDERS
As of October 2, 2024, the Company had 5,352,035 shares of our common stock issued and outstanding held by our shareholders.
DIVIDEND POLICY
We have not declared or paid dividends on our common stock since our formation, and we do not anticipate paying dividends in the foreseeable future. Declaration or payment of dividends, if any, in the future, will be at the discretion of our Board of Directors and will depend on our then current financial condition, results of operations, capital requirements and other factors deemed relevant by the Board of Directors. There are no contractual restrictions on our ability to declare or pay dividends.
SECURITIES AUTHORIZED UNDER EQUITY COMPENSATION PLANS
We have no equity compensation or stock option plans.
RECENT SALES OF UNREGISTERED SECURITIES
None.
OTHER STOCKHOLDER MATTERS
None.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. Selected Financial Data.
Not applicable to smaller reporting companies.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Results of Operations for the years ended July 31, 2024 and 2023:
Revenue
During the year ended July 31, 2024 and the year ended July 31, 2023, we generated $63,700 and $61,350 of revenue, respectively, due to the general growth of our business and increased marketing and sales efforts.
Operating expenses
Total operating expenses for the year ended July 31, 2024 and 2023 were $88,240 and $60,701, respectively. The operating expenses for the year ended July 31, 2024 and 2023 included General and Administrative expenses of $48,876 and $39,528; Amortization Expense of $20,164 and $10,053; and Server Rental of $19,200 and $11,120, respectively. The increase in general and administrative expense was due to professional services received in the current period to develop the software for sale with no similar cost incurred in the prior period. The increase in server rental expenses was due to server price increases at the internet service provider and the increase in amortization expense was due to the acquisition of intangible assets over time.
Net Income (Loss)
Our net income (loss) for the years ended July 31, 2024, and 2023 was $(24,540) and $649, respectively, due to the reasons explained above.
Liquidity and Capital Resources and Cash Requirements
As of July 31, 2024 the Company had cash of $0 ($22,010 as of July 31, 2023) and negative working capital of $85,801 (negative $25,425 as of July 31, 2023).
During the year ended July 31, 2024 the Company had $42,876 of cash provided by its operating activities due to its net loss $24,540, decrease in Accounts Payable $5,700, and an increase in Prepaid Expense of $32,800, offset by Amortization expense of $20,164. During the year ended July 31, 2023 the Company had $13,222 of cash provided by its operating activities due to its net income $649, Amortization expense of $10,053 and increase in Accounts Payable $6,000, offset by an increase in Prepaid Expense of $3,480.
During the year ended July 31, 2024 and 2023, the Company used $56,000 and $22,500 of cash in investing activities, respectively, for the purchase of intangible assets.
During the year ended July 31, 2024 the Company generated $76,866 of cash from financing activities due to proceeds from related party loans of $142,216, offset by repayments on related party loans of $65,350. During the year ended July 31, 2023 the Company generated $30,852 of cash from financing activities, made up of $25,561 received from the sale of common stock and $23,391 of proceeds from related party loans, offset by $18,100 in repayments to related parties.
Critical Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract with the customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4. Allocate the transaction price. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Company generates revenue through the sale of software and by providing consulting or technical support services. For the sale of software, revenue is recognized at the point in time when the ownership of software (as approved by the customer) is transferred per the terms of a contract. The Company shall not be liable for any failure to perform its obligations if such failure is due to circumstances beyond its reasonable control. Any liability of the Company shall be limited to the total of all amounts paid by the customer for services under the contract. For consulting or technical support services, revenue is recognized as the services are provided.
The Company generally collects payment from customers prior to transferring ownership of software or at the end of any service period and may require deposits from customers at the time an order is placed. When deposits are collected prior to transferring ownership of software or before services are performed the Company recognizes deferred revenue until the transfer is made or services are provided.
Recent Accounting Pronouncements
The Company has reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and does not believe any of these pronouncements will have a material impact on the Company’s financial reporting.
OFF BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A. Quantitative and Qualitative Disclosures about Market Risk.
Not applicable to smaller reporting companies.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data.
TOFLA MEGALINE INC.
FINANCIAL STATEMENTS
Page
Report of Independent Registered Public Accounting Firm (PCAOB ID: 6258)
11-12
Balance Sheets as of July 31, 2024 and 2023
Statements of Operations for the years ended July 31, 2024 and 2023
Statements of Changes in Stockholders’ Equity (Deficit) for the years ended July 31, 2024 and 2023
Statements of Cash Flows for the years ended July 31, 2024 and 2023
Notes to the Audited Financial Statements as of July 31, 2024
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Shareholders
Tofla Megaline Inc.
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Tofla Megaline Inc. as of July 31, 2024 and 2023, and the related statements of operations, stockholders’ equity (deficit), and cash flows for the years then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of Tofla Megaline Inc. as of July 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended July 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying financial statements have been prepared assuming that the entity will continue as a going concern. As discussed in Note 2 to the financial statements, the entity has reported losses, limited revenues, an accumulated deficit and expects losses in the development of its business, all of which raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to Tofla Megaline Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Tofla Megaline Inc. is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.
/s/ Mac Accounting Group & CPAs, LLP
We have served as Tofla Megaline's auditor since 2021.
Midvale, Utah
October 2, 2024
TOFLA MEGALINE INC.
BALANCE SHEETS
July 31, 2024
July 31, 2023
ASSETS
Current Assets
Cash $ - $ 22,010
Prepaid Expenses
39,200
6,400
Total Current Assets
39,200
28,410
Intangible Assets, Net
62,411
26,575
TOTAL ASSETS $ 101,611 $ 54,985
LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT)
Liabilities
Current Liabilities
Accounts Payable $ $ 6,000
Related Party Loan
124,701
47,835
Total Current Liabilities
125,001
53,835
Total Liabilities
125,001
53,835
Stockholders’ Equity (Deficit)
Common Stock, $0.001 par value, 75,000,000
shares authorized, 5,352,035 shares issued and outstanding as of July 31, 2024 and 2023
5,352
5,352
Additional Paid-in Capital	
24,709
24,709
Accumulated Deficit
(53,451)
(28,911)
Total Stockholders’ Equity (Deficit)
(23,390)
1,150
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT) $ 101,611 $ 54,985
The accompanying notes are an integral part of these audited financial statements.
TOFLA MEGALINE INC.
STATEMENT OF OPERATIONS
Year ended
July 31, 2024
Year ended
July 31, 2023
Revenues
Software Sales $ 63,700 $ 48,350
Consulting or Technical Support Services
-
13,000
Total Revenues
63,700
61,350
Operating Expenses
General and Administrative Expenses
48,876
39,528
Amortization Expense
20,164
10,053
Server Rental
19,200
11,120
Total Operating Expenses
88,240
60,701
Net Income (Loss) from Operations
(24,540)
Provision for Income Taxes
-
-
Net Income (Loss) $ (24,540) $
Income (Loss) per Common Share - Basic & Diluted $ (0.01) $ 0.00
Weighted Average Number of Common Shares Outstanding-Basic & Diluted
5,352,035
5,352,035
The accompanying notes are an integral part of these audited financial statements.
TOFLA MEGALINE INC.
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
For the years ended July 31, 2024 and 2023
Common Stock
Additional Paid-in-
Accumulated
Shares
Amount
Capital
Deficit
Total
Balance as of July 31, 2022 4,500,000 $ 4,500 $ - $ (29,560) $ (25,060)
Common shares issued for cash 852,035
24,709
-
25,561
Net income for the period -
-
-
Balance as of July 31, 2023 5,352,035
5,352
24,709
(28,911)
1,150
Net loss for the period -
-
-
(24,540)
(24,540)
Balance as of July 31, 2024 5,352,035 $ 5,352 $ 24,709 $ (53,451) $ (23,390)
The accompanying notes are an integral part of these audited financial statements.
TOFLA MEGALINE INC.
STATEMENTS OF CASH FLOWS
Year ended
July 31,
Year ended
July 31, 2023
OPERATING ACTIVITIES
Net Income (Loss) $ (24,540) $
Adjustments to reconcile Net Income
to net cash provided by operations:
Amortization
20,164
10,053
Changes in operating assets and liabilities:
Prepaid Expense
(32,800)
(3,480)
Accounts Payable
(5,700)
6,000
Cash Flows Provided by (Used in) Operating Activities
(42,876)
13,222
INVESTING ACTIVITIES
Purchase of Intangible Assets
(56,000)
(22,500)
Cash Flows Used in Investing Activities
(56,000)
(22,500)
FINANCING ACTIVITIES
Proceeds from the sale of common stock
-
25,561
Repayments on related party loan
(65,350)
(18,100)
Proceeds from related party loan
142,216
23,391
Cash Flows Provided by Financing Activities
76,866
30,852
Net cash increase (decrease) for period
(22,010)
21,574
Cash at beginning of period
22,010
Cash at end of period $ - $ 22,010
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ - $ -
Income taxes $ - $ -
The accompanying notes are an integral part of these audited financial statements.
TOFLA MEGALINE INC.
NOTES TO THE AUDITED FINANCIAL STATEMENTS
JULY 31, 2024
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Tofla Megaline Inc. (“the Company” or “we”) was incorporated under the laws of the State of Nevada, U.S. on August 31, 2018 (Inception). We are a development-stage company operating in the business of developing software for security systems.
NOTE 2 - GOING CONCERN
The 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 incurred net loss of $24,540 for the year ended July 31, 2024. The Company has limited revenues and an accumulated deficit of $53,451 as of July 31, 2024 and further losses are anticipated in the development of its business. Accordingly, there is 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 to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management expects revenue growth to continue over the next twelve months. In the event that revenue is not available to cover all expenses, the Company intends to finance operating costs with loans from directors and/or private placement of common stock.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements of the Company are presented in US dollars and the Company has adopted a July 31 fiscal year end.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
Fair Value of Financial Instruments
ASC 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
Level 1: defined as observable inputs such as quoted prices in active markets;
Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The carrying value of cash and the Company's loan from shareholder approximates fair value due to their short-term maturity.
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.
Impairment of Long-Lived Assets
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.
Property and Equipment
Property and equipment are stated at cost and depreciated on the straight-line method over the estimated life of the asset, which is three years.
Intangible Asset
The Company accounts for its intangible assets in accordance with ASC Subtopic 350-40, Internal-Use Software-Computer Software Developed or Obtained for Internal Use, and ASC Subtopic 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-40 requires assets to be recorded at the cost to develop the asset and requires an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs incurred to renew or extend the life of an intangible asset are expensed as incurred. The Company recognizes amortization in the month after the asset is placed in service.
In September 2021 the Company capitalized website development costs of $6,325, which is being amortized over a three-year life. As of July 31, 2024, the accumulated amortization for the software was $5,997.
In June 2022 the Company also purchased video recording software at a cost of $10,000, which will be amortized over three years. As of July 31, 2024, the accumulated amortization related to the software was $7,083.
In November 2022 the Company purchased software for solutions for designing a perimeter security system at a cost of $15,500 which will be amortized over three years. As of July 31, 2024, the accumulated amortization related to the software was $8,611.
In January 2023 the Company purchased a global brandmauer for remote management via the internet at a cost of $7,000 which will be amortized over three years. As of July 31, 2024, the accumulated amortization for the software was $3,500.
In August 2023 the Company bought navigation and mapping software at a cost of $20,000 which will be amortized over three years. As of July 31, 2024, the accumulated amortization for the software was $6,667.
In June 2024 the Company bought the threat detection suite software at a cost of $20,000 which will be amortized over three years. As of July 31, 2024, the accumulated amortization for the software was $556.
In July 2024 the Company bought the route management software at a cost of $16,000 which will be amortized over three years. As of July 31, 2024, the accumulated amortization for the software was $0.
The Company had the following intangible assets as of July 31, 2024 and 2023:
As of July 31, 2024 As of July 31, 2023
Website Development Costs $ 6,325 $ 6,325
Video Recording Software
10,000
10,000
Software for Solutions for Designing a Perimeter Security System
15,500
15,500
Global Brandmauer for Remote Management via the Internet
7,000
7,000
Navigation and Mapping Software
20,000
-
Threat Detection Suite Software
20,000
-
Route Management Software
16,000
-
Accumulated Amortization
(32,414)
(12,250)
Intangible Assets, Net $ 62,411 $ 26,575
During the years ended July 31, 2024 and 2023 the Company recorded amortization expense of $20,164 and $10,053, respectively.
The Company expects to recognize amortization expense of $29,411 for the fiscal year ending July 31, 2025, amortization expense of $21,556 for the fiscal year ending July 31, 2026, and amortization expense of $11,444 for the fiscal year ending July 31, 2027.
Income Taxes
The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps:
Step 1: Identify the contract with the customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4. Allocate the transaction price.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Company generates revenue through the sale of software and by providing consulting or technical support services. For the sale of software, revenue is recognized at the point in time when the ownership of software (as approved by the customer) is transferred per the terms of a contract. The Company shall not be liable for any failure to perform its obligations if such failure is due to circumstances beyond its reasonable control. Any liability of the Company shall be limited to the total of all amounts paid by the customer for services under the contract. For consulting or technical support services, revenue is recognized as the services are provided.
The Company generally collects payment from customers prior to transferring ownership of software or at the end of any service period and may require deposits from customers at the time an order is placed. When deposits are collected prior to transferring ownership of software or before services are performed the Company recognizes deferred revenue until the transfer is made or services are provided. During the years ended July 31, 2024 and 2023, the Company’s revenue was $67,300 and $61,350, respectively. As of July 31, 2024 and 2023 the Company had no deferred revenue.
During the year ended July 31, 2024 one customer made up 66% of our total revenues and during the year ended July 31, 2023 we had two customers that made up 60% and 16% of our total revenues.
Basic Income (Loss) Per Share
The Company computes earnings (loss) per share in accordance with ASC 260-10-45 ‘Earnings per Share, which requires the presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings (loss) per share are equal.
Recent Accounting Pronouncements
The Company has reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and does not believe any of these pronouncements will have a material impact on the Company’s financial reporting.
NOTE 4 - COMMON STOCK
The Company has 75,000,000 common shares authorized with a par value of $0.001 per share.
During August 2022 the Company issued 40,834 shares of common stock for cash proceeds of $1,225 at $0.03 per share.
During September 2022 the Company issued 29,333 shares of common stock for cash proceeds of $880 at $0.03 per share.
During October 2022 the Company issued 168,134 shares of common stock for cash proceeds of $5,044 at $0.03 per share.
During November 2022 the Company issued 328,400 shares of common stock for cash proceeds of $9,852 at $0.03 per share.
During December 2022 the Company issued 285,334 shares of common stock for cash proceeds of $8,560 at $0.03 per share.
As of July 31, 2024 and 2023, the Company had 5,352,035 shares issued and outstanding.
NOTE 5 - RELATED PARTY TRANSACTIONS
In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders or directors. Amounts represent advances or amounts paid in satisfaction of liabilities.
Effective August 31, 2018 the Company’s Chief Executive Officer (“CEO”), Rodolfo Guerrero Angulo, formally agreed to advance funds to the Company to pay for professional fees and operating expenses under a $50,000 Loan Agreement. Effective April 20, 2022 the Company’s CEO formally agreed to advance additional funds to the Company to pay for professional fees and operating expenses under a second $50,000 Loan Agreement. Effective June 12, 2024 the Company entered into an amended and restated loan agreement with its CEO that consolidated all earlier loans and increased the loan amount by an additional $50,000. The outstanding loan agreement is non-binding and discretionary, bears no interest, is unsecured, and has no fixed due date, therefore, any amounts outstanding under the agreement is considered due on demand. The Company’s CEO was due $124,701 as of July 31, 2024 under the amended and restated loan agreement, where during the year ended July 31, 2024 $142,216 was advanced to the Company and the Company made repayments of $65,350.
NOTE 6 - COMMITMENTS AND CONTINGENCIES
Contractual Commitments
The Company has entered into no contractual commitments as of July 31, 2024.
Litigation
The Company was not subject to any legal proceedings during the period from August 31, 2018 (Inception) to July 31, 2024 and no legal proceedings are currently pending or threatened to the best of our knowledge.
NOTE 7 - INCOME TAXES
The Company has no tax position at July 31, 2024 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at July 31, 2024. The Company’s utilization of any net operating loss carryforward may be unlikely as a result of its intended activities.
The valuation allowance at July 31, 2024 was $11,225. The net change in valuation allowance from July 31, 2023 to July 31, 2024 was $5,153. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.
Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of July 31, 2024 and 2023. All tax years since inception remain open for examination only by taxing authorities of US Federal and state of Nevada.
The Company has a net operating loss carryforward for tax purposes totaling $53,541 at July 31, 2024. According to current tax laws, the losses can carryforward indefinitely. There is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership).
The components of the Company’s deferred tax asset computed at the federal statutory rate of 21% is as follows:
July 31, 2024
July 31, 2023
Net operating loss carryforward $ (53,451)
$ (28,911)
Effective tax rate
21%
21%
Deferred tax asset
11,225
6,071
Less: Valuation allowance
(11,225)
(6,071)
Net deferred asset $ -
$ -
The income tax provision differs from the amount of income tax determined by applying the statutory income tax rates to pretax income from continuing operations for the year ended May 31, 2024 due to the following:
Year Ended July 31, 2024
Year Ended July 31, 2023
Book loss $ (5,153)
21%
$ 21%
Valuation allowance
5,153
(21)%
(136) (21)%
$ -
$ -
NOTE 8 - SUBSEQUENT EVENTS
The Company has evaluated subsequent events from July 31, 2024 to the date the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements other than those described below.
In August and September 2024, the Company’s CEO advanced $8,191 to the Company for the Company’s operating expenses.
Effective August 30, 2024, Marquez Hernandez Maria De Lourdes was appointed to serve as Independent Director of the Company.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Our Principal Executive Officer and Principal Financial Officer conducted an evaluation of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that in light of the material weaknesses described below, our disclosure controls and procedures were not effective as of July 31, 2024. See material weaknesses discussed below in Management’s Annual Report on Internal Control over Financial Reporting.
Management’s Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of July 31, 2024, using the criteria established in “Internal Control - Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO - 2013").
A material weakness is a deficiency, or 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. In its assessment of the effectiveness of internal control over financial reporting as of July 31, 2024, the Company determined that there were control deficiencies that constituted material weaknesses, as described below.
1.We lack an adequate internal control structure - Due to the size of the Company we do not have the appropriate control activities, risk assessment procedures, controls over information and communication, or effective monitoring controls.
2.We do not have appropriate segregation of duties or adequate accounting resources - The Company has only one employee that does not have sufficient accounting knowledge, experience, and understanding of US GAAP or SEC rules, therefore no expertise or reviews are in place to ensure adequate financial reporting. Further, while not being legally obligated to have an audit committee, it is the management’s view that such a committee, including a financial expert member, is an utmost important entity level control over the Company’s financial statements. Currently the Board of Directors acts in the capacity of the Audit Committee, and does not include a member that is considered to be independent of management to provide the necessary oversight over management’s activities.
3.We do not have appropriate information technology controls - The Company retains copies of all financial data and material agreements; however, there is no formal procedure or evidence of normal backup of the Company’s data or off-site storage of data in the event of theft, misplacement, or loss due to unmitigated factors. Further there are no IT controls in place to prevent changes to, or misstatement in, financial reporting.
Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.
As a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control over financial reporting as of July 31, 2024 based on criteria established in Internal Control-Integrated Framework issued by COSO.
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Controls over Financial Reporting
There has been no change in our internal control over financial reporting occurred during the year ended July 31, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
Item 9B. Other Information.
None.
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers, and Control Persons of the Company.
DIRECTORS, EXECUTIVE OFFICERS, AND CONTROL PERSONS
Our executive officer's and director's and their respective ages are as follows:
Name Age Positions
Rodolfo Guerrero Angulo President, Treasurer, Secretary and Director (Principal Executive, Financial and Accounting Officer)
Set forth below is a brief description of the background and business experience of our executive officers and directors for the past five years.
Rodolfo Guerrero Angulo
Rodolfo Guerrero Angulo has acted as our President, Treasurer, Secretary and sole Director since we incorporated on August 31, 2018. Mr. Angulo owns 100% of the outstanding shares of our common stock. As such, it was unilaterally decided that Mr. Angulo was going to be our sole President, Chief Executive Officer, Treasurer, and Chief Financial Officer, Chief Accounting Officer, Secretary and member of our board of directors. Between 2011 and 2018, Mr. Angulo worked as IT project manager in real estate sector for Afkal Develop (Leon, Mexico). Mr. Angulo’s responsibilities included managing the Company’s projects and he was responsible for programming and extensions for project teams. In 2006, Mr. Angulo decided to change his field of work and started working as a freelance IT manager for a small firm in Leon, Mexico, where he worked until 2011. Between 1996 and 2005, Mr. Angulo worked in the area of car dealership called Leonveh ltd. in Leon, Mexico. Mr. Angulo studied at University of Leon in Leon, Mexico from 1989 to 1995 and he did not graduate. Mr. Angulo prioritized experience in business over education. This enabled him to obtain more experience sooner and start new business with additional knowledge.
During the past ten years, Mr. Angulo has not been the subject to any of the following events:
1. Any bankruptcy petition filed by or against any business of which Mr. Angulo was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.
2. Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.
3. An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Mr. Angulo’s involvement in any type of business, securities or banking activities.
4. Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
5. Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;
6. Was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;
7. Was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:
i. Any Federal or State securities or commodities law or regulation; or
ii. Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or
iii. Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
8. Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
DIRECTOR INDEPENDENCE
Our Board of Directors is currently composed of one member, Rodolfo Guerrero Angulo, who does not qualify as an independent director. Our board of directors has not made a subjective determination as to each director that no relationships exist which, in the opinion of our board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Had our Board of Directors made these determinations, our board of directors would have reviewed and discussed information provided by the directors and us with regard to each director’s business and personal activities and relationships as they may relate to us and our management.
INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS
No director, executive officer, significant employee or control person of the Company has been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.
AUDIT COMMITTEE, COMPENSATION COMMITTEE, AND FINANCIAL EXPERT
We do not have an Audit Committee or Compensation Committee because the Company’s sole employee is also the sole member of management and sole director. Additionally, we have no persons currently receiving any compensation due to our start-up nature. Our sole director performs some of the same functions of an Audit Committee and Compensation Committee, such as: recommending a firm of independent certified public accountants to audit the annual financial statements; reviewing the independent auditor’s independence, the financial statements, and their audit report; reviewing management’s administration of the system of internal accounting controls, and determining all compensation amounts. The Company does not currently have a written audit committee charter or a compensation committee charter or any similar documents.
We have no financial expert. We believe the cost related to retaining a financial expert at this time is prohibitive. Further, because of our start-up operations, we believe the services of a financial expert are not warranted.
CODE OF ETHICS
The Company has not adopted a formal written code of ethics due to the small size of the organization and start-up nature, along with the fact that the Company’s sole employee is also the sole member of management and sole director.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11. Executive Compensation.
EXECUTIVE COMPENSATION SUMMARY COMPENSATION TABLE
The following table sets forth information regarding each element of compensation that we paid or awarded to our named executive officers for fiscal years July 31, 2024 and 2023:
Name and
Principal
Position
Period
Salary
($)
Bonus
($)
Stock
Awards
($)*
Option
Awards
($)*
Non-Equity
Incentive Plan
Compensation
($)
Nonqualified
Deferred
Compensation
($)
All Other
Compensation
($)
Total
($)
Rodolfo Guerrero Angulo, President 0 0
0 0
Rodolfo Guerrero Angulo has not received monetary compensation since our inception to the date of this Form 10-K. We currently do not pay any compensation to any officer or any member of our board of directors.
EMPLOYMENT AGREEMENTS
The Company is not a party to any employment agreement and has no compensation agreement with any officer or director.
DIRECTOR COMPENSATION
The following table sets forth director compensation as of July 31, 2024 and 2023:
Name Period
Fees
Earned or Paid in Cash
($)
Stock
Awards
($)
Opinion
Awards
($)
Non-Equity
Incentive Plan
Compensation
($)
Nonqualified
Deferred
Compensation
Earnings
($)
All Other
Compensation
($)
Total
($)
Rodolfo Guerrero Angulo, President 0 0
0 0
We have not compensated our directors for their service on our Board of Directors since our inception. There are no arrangements pursuant to which directors will be compensated in the future for any services provided as a director.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The following table lists, as of the date of this form 10-K, the number of shares of common stock of our Company that are beneficially owned by (i) each person or entity known to our Company to be the beneficial owner of more than 5% of the outstanding common stock; (ii) each officer and director of our Company; and (iii) all officers and directors as a group. Information relating to beneficial ownership of common stock by our principal shareholders and management is based upon information furnished by each person using "beneficial ownership" concepts under the rules of the Securities and Exchange Commission. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days.
Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.
The percentages below are calculated based on 5,352,035 shares of our common stock issued and outstanding as of the date of this Form 10-K. We do not have any outstanding warrant, options or other securities exercisable for or convertible into shares of our common stock.
Title of class
Name and Address of
Beneficial Owner
Amount and Nature of Beneficial
Ownership
Percent of
Common Stock
Common Stock Rodolfo Guerrero Angulo 4,000,000 74.74%

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13. Certain Relationships and Related Transactions, and Director Independence.
Effective August 31, 2018 the Company’s CEO and sole director formally agreed to advance funds to the Company to pay for professional fees and operating expenses under a $50,000 Loan Agreement. Effective April 20, 2022 the Company’s CEO and sole director formally agreed to advance additional funds to the Company to pay for professional fees and operating expenses under a second $50,000 Loan Agreement. Effective June 12, 2024 the Company entered into an amended and restated loan agreement with its CEO and sole director that consolidated all earlier loans and increased the loan amount by an additional $50,000. The outstanding loan agreement is non-binding and discretionary, bears no interest, is unsecured, and has no fixed due date, therefore, any amounts outstanding under the agreement is considered due on demand. The Company’s CEO and sole director was due $124,701 as of July 31, 2024 under the amended and restated loan agreement, where during the year ended July 31, 2024 $142,216 was advanced to the Company and the Company made repayments of $65,350.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accountant Fees and Services.
The following table sets forth the fees billed to our company for the years ended July 31, 2024 and 2023 for professional services rendered by Mac Accounting Group, LLP, the independent auditor:
Fees
Audit Fees $ 14,850
$ 13,500
Audit Related Fees
-
-
Tax Fees
-
-
Other Fees
-
-
Total Fees $ 14,850
$ 13,500
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits.
Exhibit No.
Description
31.1
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1933 Rule 13a-14(a) or 15d-14(a).
32.1
Certifications pursuant to Securities Exchange Act of 1933 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.