Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. BIOSHAFT WATER TECHNOLOGY, INC. (1365784) 10-Q published on Apr 10, 2017 at 3:11 pm
On December 16, 2015, the Company secured a $20,000 notes payable with the same party as discussed above, accruing interest at 7.5% per annum being due December 16, 2016. The proceeds were used for operating purposes. This note as well as the others held by the holder were combined into a single note as disclosed below.
In January 2016, the holder of the notes disclosed above consolidated all the notes into one single note with a principal balance of $1,267,390. The note incurs interest at 7.5% per annum and is due on demand. The terms of the combined note weren't different than the stand alone notes and thus no additional accounting was required.
During the three months ended we earned revenues of $336,490, an increase of $336,490, compared to the prior year's comparable period. The Company recognizes revenues based upon the completed contract method. During the three months ended January 31, 2017, two projects were completed to which the revenues were recognized. During the three months ended January 31, 2016, no projects were completed and thus no revenues were recognized.
As of January 31, 2017, our Company has five projects which are being accounted for under the completed contract method as all are based upon the delivery of equipment and limited installation services. During Q3, our Company recorded revenues related to two projects which provided four pieces of equipment. As of January 31, 2017, our Company has deferred revenues of $1,242,664 and deferred costs of $1,036,925 in connection with the five projects. Our Company expects to record the revenues and costs related to these projects in Q4 of fiscal 2017 or Q1 of fiscal 2018. The Company's revenues will continue to be inconsistent until a pipeline of such contracts is established.
The decrease in cash used in operating activities primarily relates to our continued net loss from operations as cash flows generated from operations is not yet sufficient enough to cover our expenditures. The decrease in cash flow from financing activities is a direct result of proceeds from notes payable and proceeds from related party notes payable in the prior year where as in the current year the Company has relied upon proceeds from related parties.