UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)
[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended April 30, 2014
[ ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from [ ] to [ ]
Commission file number 000-52393

(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended April 30, 2015

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from [ ] to [ ]

Commission file number 000-52393

BIOSHAFT WATER TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

Nevada

98-0494003

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer Identification No.)

111 West Ocean Blvd, 4th Floor, Long Beach, CA 90802


222 West 6th Street, #400, San Pedro, CA		90731
(Address of principal executive offices)		(Zip Code)

~~(Address~~Registrant's oftelephone ~~principal~~number, ~~executive~~including ~~offices) (Zip~~area ~~Code)~~code: 310.707.2553

Registrant's telephone number, including area code: 949.748.8050

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class		Name of Each Exchange On Which Registered
N/A		N/A

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value of $0.001


Common Stock, par value of $0.001
(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 the Securities Act.
		Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act
		Yes [ ] No [X]

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 last 90 days.
		Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
	Yes [X] No [ ]

(Title of class)


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
			[ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” 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~~The byaggregate ~~check~~market ~~mark~~value ifof Common Stock held by non-affiliates of the ~~registrant~~Registrant ison October 31, 2014 was $1,924,146 based on a ~~well-known~~$0.01 ~~seasoned~~average ~~issuer~~bid and asked price of such common equity, as ~~defined~~of inthe ~~Rule~~last ~~405~~business day of the ~~Securities~~registrant’s ~~Act~~most recently completed second fiscal quarter.

~~Yes~~Indicate ~~[ ] No~~the ~~[X]~~number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date. 117,611,170 common shares as of July 31, 2015.

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act

Yes [ ] No [X]

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 last 90 days.

Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

[ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” 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]

The aggregate market value of Common Stock held by non-affiliates of the Registrant on October 31, 2013 was $8,454,769.46 based on a $0.17 average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date.

110,411,170 common shares as of July 22, 2014.

DOCUMENTS INCORPORATED BY REFERENCE

None.

TABLE OF CONTENTS

Item 1. Business	43
Item 1A. Risk Factors	1311
Item 1B. Unresolved Staff Comments	2011
Item 2. Properties	2011
Item 3. Legal Proceedings	2111
Item 4. Mine Safety Disclosures	2111
Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities	2111
Item 6. Selected Financial Data	2212
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations	2213
Item 7A. Quantitative and Qualitative Disclosures About Market Risk	2817
Item 8. Financial Statements and Supplementary Data	2817
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	3617
Item 9A. Controls and Procedures	3617
Item 9B. Other Information	3718
Item 10. Directors, Executive Officers and Corporate Governance	3718
Item 11. Executive Compensation	4121
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	4423
Item 13. Certain Relationships and Related Transactions, and Director Independence	4524
Item 14. Principal Accountants Fees and Services	4625
Item 15. Exhibits, Financial Statement Schedules	4626

PART I

Item 1. Business

This annual report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors”, that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

In this annual report, unless otherwise specified, all dollar amounts are expressed in United States Dollars and all references to “common shares” refer to the common shares in our capital stock.

As used in this annual report, the terms “we”, “us”, and “our company”, mean Bioshaft Water Technology, Inc. a Nevada corporation, unless otherwise indicated.

Corporate History

We were incorporated on March 8, 2006, under the laws of the State of Nevada as “Pointstar Entertainment Corp.”. Effective September 28, 2007, we completed a merger with our subsidiary, “Bioshaft Water Technology, Inc.”, also a Nevada corporation. As a result, we changed our name from “Pointstar Entertainment Corp.” to “Bioshaft Water Technology, Inc.”. Our stock symbol is “BSHF”.

Our principal executive offices are located at 111 West Ocean Blvd, 4th Floor, Long Beach, CA 90802 and our telephone number is (949) 748-8050.

We do not have any subsidiaries.

Other than as set out herein, we have not been involved in any bankruptcy, receivership or similar proceedings, nor have we been a party to any material reclassification, merger, consolidation or purchase or sale of a significant amount of assets not in the ordinary course of our business.

Our Current Business

We are currently engaged in treating both industrial waste-water, primarily from the food and beverage sector and domestic waste-water where containerized/modular plants can be deployed on a permanent or temporary basis along with our technology’s ability to provide expansion (upgrade/retrofit) to existing domestic activated sludge wastewater plants worldwide.

On September 18, 2007, we entered into an asset purchase agreement with Hans Bio Shaft Limited and Hassan Hans Badreddine, pursuant to which we acquired from Hans Bio Shaft U.K. Patent GB2390365 titled “Waste Water Treatment Plant and Method” and related United States and European patent applications for the design of a certain waste water treatment plant system. In consideration for the U.K. patent and related United States and European patent applications.2

With the completion of the asset purchase agreement, we changed our business to the business of designing and manufacturing both industrial and domestic waste water treatment plant systems, using our patented Bioshaft unit, the Bioshaft System, along with the development of our modular anoxic anaerobic digester (“MAAD”) technology used to treat the primarily high strength industrial wastewater.

On August 6, 2008, we entered into a loan agreement with Premier Financial and Marketing Co. Ltd., in respect of a loan in the amount of $500,000 at the rate of interest of 15% per annum payable in full on August 6, 2009. The loan was used for general working capital purposes. The loan bears interest at the rate of 15% per annum with interest to be paid monthly in arrears on the last business day of each month, commencing August 31, 2008. The principal and all accrued and unpaid interest was due to be paid in full on August 11, 2009. On March 6, 2013, Premier agreed to extend the loan agreement until August 11, 2013. The loan remains unpaid and is currently in default. Our company is currently negotiating an extension and new terms with Premier.

On March 6, 2009, we entered a loan agreement with Premier pursuant to which Premier loaned our company $25,000 for the purposes of working capital. The loan bears interest at the rate of 15% per annum with interest to be paid monthly in arrears on the last business day of each month, commencing March 6, 2010. The principal and accrued interest were due on March 6, 2010. On September 6, 2011, Premier agreed to extend the loan agreement until September 6, 2012. On March 6, 2013, Premier agreed to further extend the loan until March 6, 2014. The loan remains unpaid and is currently in default. Our company is currently negotiating an extension and new terms with Premier.

On February 23, 2012, we entered into an amending agreement to a loan agreement and promissory note to modify the loan agreement and promissory note we originally entered into with Premier on August 6, 2008. The parties have agreed to amend the loan agreement to provide for a conversion feature. Pursuant to the amending agreement, any amounts outstanding under the loan are convertible at the price of $0.025 per share of common stock upon the provision of seven days’ notice by the lender.

In June 2014, Premier advanced us an additional $60,000 in which the formal terms have not been established.

Effective February 23, 2012, we entered into an assignment of debt wherein we have agreed to accept $250,000 as consideration for the assignment of obligations under a loan agreement with Pedernales Brewing Company, LLC and Lee Hereford. Pursuant to the terms of the assignment of debt, we agreed to absolutely and unconditionally assign, transfer and set over all of our right, title and interest in and to the loan. Further to the terms, we have the right to repurchase the loan for the remaining principal balance plus unpaid interest.

As of April 30, 2012, our company agreed to a settlement with Imad A. Yassine, our chief operating officer, chief financial officer, secretary, treasurer and director, regarding his consulting fees for the period from May 1, 2011 through April 30, 2012. Mr. Yassine is to receive a monthly consulting fee of $15,000. The total consulting fees accrued during that period amount to $180,000 and were paid in accordance with a mutually agreed upon schedule and terms.

On October 15, 2012, we entered into an international distributor agreement with Zuhier Ahmad Zahran & Co. (“ZAZCo”), a company operated by our director, Zuhier Ahmad Zahran. Under the distributor agreement ZAZCo will assist our company in the promotion, sale, marketing and distribution of our products in the Kingdom of Saudi Arabia and any other mutually agreed upon countries for a period of two years. The purchase prices for our products shall be in response to specific project requirements. The difference between ZAZCo’s purchase price and ZAZCo’s selling price to its customers shall be ZAZCo’s sole remuneration for sale of our products. ZAZCo shall be free to determine the resale prices of our products and shall, in good faith, use its commercially reasonable efforts to reasonably price our products so as to be competitive in the territory in respect of other competitive or similar products offered in the territory.

On July 1, 2013, we entered into a consulting agreement with Canadian Environmental Designers Inc., a company operated by our director, Bashir Amin, to assist our company in marketing, sales and business development. Under the terms of the consulting agreement, Canadian Environmental Designers Inc. shall be paid by our company as per direct costs to the projects being worked on. Additionally special pre-approved expenses are invoiced and paid by our company within 30 days. The term of the consulting agreement is through June 30, 2014 and our company is currently in the process of renewing this agreement.

On July 1, 2013, we entered into a consulting agreement with Hydro E+, LLC to assist our company in corporate finance, marketing and business development matters. For its services, Hydro E+ received compensation of $7,000 on execution of the consulting agreement and will receive $7,000 every 30 days afterward. The term of the agreement is until June 30, 2014 and our company is currently in the process of renewing this agreement.

On February 1, 2014, Mr. Walter J. Zurawick Jr. resigned as president, chief executive officer, and as a director of our company. Mr. Zurawick’s resignation was not the result of any disagreement with our company regarding our operations, policies, practices or otherwise. Subsequent to Mr. Zurawick’s resignation, we entered into a consulting agreement with Walter Zurawick for marketing and business development services. As compensation, we agreed to pay Mr. Zurawick $5,000 per month, compensation to be payable in arrears with our company’s payroll following the completion of each month during the term and will be prorated on a daily basis for partial months based on a 30 day calendar month. Our company shall also provide Mr. Zurawick with a commission of 3% of gross proceeds we receive from sales leads identified prior to February 1, 2014, or 5% of gross proceeds we receive from sales leads identified after February 1, 2014. Mr. Zurawick shall also be compensated for overhead expenses pursuant to the terms of the agreement. The term of the agreement is effective February 1, 2014 on a month to month basis. The consulting agreement replaces all previous agreements between our company and Mr. Zurawick. On March 28, 2014 Mr. Zurawick resigned from all positions, including the consulting agreement.

Effective February 1, 2014, we entered into a consulting agreement with Sustainable Water Corp., a company operated by our officer and director, Imad A. Yassine in his capacity as a consultant, and as chief operating officer and chief financial officer of our company. Under the terms of the consulting agreement, Sustainable Water Corp. will receive a monthly consulting fee of $15,000. The term of this agreement is for a period of two years, expiring on January 31, 2016.

Principal Products

Our principal product is a domestic waste water treatment plant system. To date, there are currently 30 domestic waste water plants in use worldwide that use the BioShaft technology. This system is made using our patented BioShaft unit. BioShaft unit works by emulating and accelerating a natural process found in rivers. The waste water treatment plant system for which we use our BioShaft unit is called the “BioShaft System”. The BioShaft System comprises four treatment phases with BioShaft unit being used in the second treatment phase. The four treatment phases are:

(a)

Mechanical/Primary Treatment Phases (Pre-treatment phase) which includes:

Delivery to the treatment

Screening and maceration

(b)

Biological/Secondary Treatment Phase which includes:

Balance Tank (Aeration)

BioShaft units

Clarification

(c)

Tertiary Treatment Phase which includes:

Effluent disinfection

(d)

Sludge Treatment which includes:

Biomass collecting tank (only for larger capacities >10,000 m3/day)

Figure 1

The BioShaft System is an attached growth process for the biological treatment of the human (domestic) waste water. It is known that conventional suspended growth process requires large aeration and sedimentation volumes. These volumes can be reduced significantly with use of biomass carriers which have a high specific surface area.

The application of a large number of biomass carriers instead of sedimentation by surface aeration has a positive effect on the efficiency and size of the required equipment.

The waste water enters the BioShaft unit (see Figure 2) where it flows through the biological aeration filter chamber which contains the hollow plastic media (biomass carriers). Anoxic decomposition takes place on the inner surface (hollow area) of the biomass carrier, while on the outside, corrugated surface, the process is aerobic. This ensures a high level of sewage purification at fast speed.

The oxygen demand for the decomposition process is provided by the central air lift aerator. The air is supplied by a compressor and is dispersed by a special maintenance free membrane diffuser providing an enormous number of micro bubbles which saturate the sewage with oxygen and simultaneously force the sewage up to the surface. This oxygen rich fluid then passes back down through the aeration chamber in intimate contact with the carriers. Because the biomass carriers have a relative density less than unity they will always try to rise toward the surface, but are constantly forced downward under the pressure of the aerated sewage. These two forces ensure that there is constant upward and downward motion of the carriers within the aeration chamber.

Collision between the carriers will occur which will remove the excess microbial biomass by means of down current. This self-cleaning feature will protect the biological filter against any possible clogging, and makes the unit virtually maintenance free.

Treated water flows to final sedimentation compartment in the BioShaft unit where suspended particles sink down to the bottom of the tank. This active biomass is then transferred back to the balance tank at periodic intervals by the airlift system which eliminates the need for sludge pumps.

Purified water rises up the outer compartment of the BioShaft unit to the outlet and flows to the clarifier tank for final settlement and polishing before discharge. Any remaining biomass will settle to the bottom of the clarifier tank and will be periodically airlifted back to the balance tank.

Odors are eliminated due to the absorption of large quantities of oxygen in the system which converts odorous gases into dissolved chemicals.

On January 7, 2008, we launched a new product line of packaged domestic wastewater treatment systems ideal for emergency situations such as sewage overflow, system failure, natural disasters and military uses.

The new Turbo - MBBR BioShaft Packaged system is mobile and delivered ready for immediate installation. It is a pre-engineered, standard, packaged system designed as a complete domestic wastewater solution. The T-MBBR BioShaft Packaged System is a compact and economic alternative that provides customers with a quick means of installation and commissioning in the event of a sewage emergency situation. The United States has many aging and overburdened sewage systems which result in regular sewage overflows and the BioShaft Packaged System was designed for these emergency situations and can handle from 5000 up to 30,000 gallons per day.

As of the date hereof, we have not announced any new products or services which have not been disclosed herein. According to the Environmental Protection Agency’s own numbers, annual sewer overflows are staggering. For combined sewer systems, EPA estimates that 850 billion gallons of raw or partially treated sewage is discharged annually into local waters.

For separate sanitary sewer systems, the EPA estimates that between 23,000 and 75,000 sanitary sewage overflows occur per year in the United States, discharging a total volume of three to ten billion gallons per year. These discharges, laden with potentially harmful chemicals, pathogens, viruses, and bacteria, often wind up in local rivers and streams, city streets, parks, or in unfortunate cases, directly into peoples’ homes.

Markets

Our market for the T-MBBR BioShaft System encompasses both the municipal and Industrial sector made up primarily of food and beverage opportunities worldwide. We will make direct sales calls to private contractors and industrial companies. For municipal projects, it will be necessary to assign a local agent or who is familiar with the market and the environmental government entities. This effort will also be supported with trade shows, sales brochures, website and online marketing.

The potential market segments are:

Middle East;

United States;

Central and Eastern Europe; and

Asia.

Middle East Market Segment

Initially, we will target waste water operators of municipalities, land developers, and private enterprises in the Middle East and then move into international markets. Currently the countries in the Middle East are encountering severe water shortages, resulting from population growth caused by rapid economic development. We believe that, as water demand increases in the region, water efficiency will need to be improved in all sectors, including the agriculture sector, which is a major consumer of water in the Middle East.

United States Market Segment

We are headquartered in California, our focus for the future is the emerging oil industry in Texas and North Dakota where we are marketing a “state of the art” mobile wastewater treatment container for “man camps” wastewater. Secondly, we will also focus our technology on the food and beverage market, specifically with generators less than 100,000 gallons per day wastewater.

We believe the market trends in the United States favor this approach, particularly in the food and beverage environment. Our competitive advantage is the number one priority by minimizing the total cost of ownership while maintaining flexible offering. We deliver world-class capabilities to meet the challenge faced by the food and beverage industry.

We have many qualities that differentiate us from the competition, such as rapid manufacturing fast commissioning, short ramp-up time, lower total cost of ownership, quick return on investment, continuous process through innovative service and support to ensure manufacturing quality through completely integrated production.

We believe the high costs for fresh water and tough discharge standards in the United States are forcing industries to seek cost effective methods to treat waste water and reuse it.

Central and Eastern European Market Segment

We planned to target the Central and Eastern European market segment, but have postponed targeting this market. One of the biggest drivers in this steadily growing market is the European Union directive for candidate countries. European Union funding aims at assisting new member and candidate countries to improve the waste water infrastructure in their regions.

We believe that this market is very price sensitive, giving us a competitive advantage. The choice of treatment processes is often based on price. Price is more important in this market then the long term benefits of advanced treatment systems. Furthermore the low price equipment vendors in South Eastern Europe are offering stiff competition to suppliers coming in from the mature western markets. The key to success here is to adopt innovative pricing strategies such as Build Own Operate. The Build Own Operate method is expected to allow us to create cash flows for many years and secure positive income for our company.

We also plan to establish local partnerships and concentrate on niche regional markets such as treatment plants for smaller communities.

Asian Market Segment

We have been working in both the industrial and domestic sector in Japan, Malaysia, Indonesia, China and the Philippines, working with select companies to forge a partnership.

In the Malaysia, China and the Philippines market, we believe there is a large market for both water and waste water treatment products and equipment and we expect this market segment it to grow over the next five years. We believe the best opportunities for U.S. exporters are products for both industrial and municipal water systems.

The Asian market water and waste water problems can be attributed to staggering population growth and industrialization. The result of this is a booming market for water and waste water treatment products and equipment.

There are no restrictions on imports waste water treatment products and equipment. Tariff rates imposed on most waste water equipment range from 5% to 10%.

The other major market in Asia is the Chinese market. Currently, the percentage of foreign capital in the waste water treatment industry in China is low because of low level of Chinese government investment, lack of sewage standards, lack of sewage drainage networks, low sewage treatment prices.

However, in the coming years we expect the Chinese market to evolve and we believe that we can compete in this growing market due to the size of the market and close proximity of our manufacturing facilities, which are expected to be near Shanghai.

Competition

We believe the driving forces in the waste water treatment industry to be technology and the overall cost of the treatment system. Some important industry trends that we are currently well positioned for are a shift toward nonchemical and multi-barrier treatment and the use of package plants for smaller communities.

While there are many competitors providing waste water treatment systems, our major competitors are GE/Zenon and Smith & Loveless. Smith & Loveless, in particular, has a technology called the membrane bio reactor. Even though there are many alternative technologies for sewage treatment, two major competing technologies for our BioShaft System are the traditional technologies such as activated sludge and membrane reactor treatments.

106

We expect competition to become increasingly intensified in the future and there is no assurance that we can keep pace with the intense competition in this market. Many of our competitors have significantly greater brand recognition, customer bases, operating histories and financial and other resources. In addition, many companies have expanded the size of their operations by acquiring other complementary companies to form advantageous strategic alliances. Many of our competitors offer less effective but similar services at less cost than us and have the financial resources to create more attractive pricing.

The system we bring to the market has not been introduced previously. Because engineering professionals are generally cautious about recommending new products to the market if not familiar with them, we may have difficulties in gaining market share.

Dependence on One or a Few Major Customers

Our revenues are not dependent on one or a few major customers.

Raw Materials

We are not dependent on any one supplier for our raw materials.

Sales and Marketing

Initially, we intend to target waste water operators of municipalities, land developers, and private enterprises in the Middle East and then move into international markets. We have recently entered into dairy and poultry markets in California. We will attempt to reach these segments through traditional marketing methodologies. These methodologies include attendance at business specific conferences, direct mailings of brochures, warm and cold calling, website and e-commerce approaches and advertisements in trade publications.

Besides direct sales effort to large users of our products, a major element of our marketing efforts will be to develop a network of 4 strategic alliances with several types of companies, including:

contractors that specialize in the construction of water treatment plants;

engineering firms that work with municipalities;

firms that specialize in Build Own Operate project utilities;

Chinese manufacturers that we can outsource to.

Our marketing strategy will be to position ourselves as differentiated sewage treatment system provider. The primary goal of all marketing efforts will be to communicate these potential benefits to potential customers.

The sales strategy is to focus first on meeting the increased demand from our Middle East clients with whom our former officer and director, Dr. Badreddine, established relationships for larger orders. These clients are critical to our ability to acquire additional accounts. Secondly, we will focus on increasing the volume to the Middle East market. When we have reached maximum sales to existing channels we can then shift the majority of our focus to securing additional regions using our innovative contract pricing techniques such as Build Own Operate. This sales strategy is to concentrate on that segment of the market that can be most easily captured by our company.

Government Regulation

We will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to the sale and use of our product in the jurisdictions where our products are sold.

In the United States, the sale and provision of on-site commercial and domestic waste water treatment devices is regulated at the state level through product registration, advertising restrictions, water testing, product disclosure and other regulations specific to the water treatment industry. In addition, municipal governments such as cities and counties frequently can require more stringent regulation. The United States Environmental Protection Agency is generally not involved in the regulation of waste water treatment devices with flow rates less than 1,000 gallons per day. In some cases, industrial, municipal, and other facilities must obtain certain permits from governmental authorities.

Federal agencies such as the United States Environmental Protection Agency, state agencies such as the Department of Health Services of various states, and local agencies such as regional pollution control boards, all have an interest in the quality of water discharged from sanitary sewer treatment plants. At a minimum, sewer treatment plants must protect the health and welfare of the local population by ensuring that raw or primary treated waste water does not contaminate the local potable water supply. At a maximum, some agencies must treat all inflows to tertiary standards, and then pump all treated water out of the drainage basin so that no effluent ever drains to a water supply.

Regulating agencies can compel sewer treatment enterprises to construct improvements to their plants by requiring higher standards in effluent quality. If not in compliance with regulations, sewer enterprises may be subject to heavy fines. Regulation is therefore often the driving force behind increasing sewer treatment costs in the United States.

Intellectual Property

We own the inventions covered by United Kingdom Patent GB2390365 titled “Waste Water Treatment Plant and Method”. On February 10, 2009, we received our United States Patent from the United States Patent and Trademark Office for our wastewater treatment plant and method. The patent number is 7,488,413. We also acquired the following related patent applications from Hans Bio Shaft Limited under the asset purchase agreement and the patent assignment agreement:

PCT international patent application PCT/GB04/00002 (publication WO2005066081);

European patent application EP20040700280 (publication EP1711440) however, although related, these patent applications are not linked by priority to our U.K. patent.

We intend to require our customers to enter into confidentiality and nondisclosure agreements before we disclose any sensitive aspects of our technologies or strategic plans, and we intend in the future to enter into proprietary information agreements with employees and consultants. Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy or otherwise obtain and use our technology. It is difficult to monitor unauthorized use of technology, particularly in foreign countries where the laws may not protect our proprietary rights as fully as laws in the United States and the United Kingdom. In addition, our competitors may independently develop technology similar to ours. Our precautions may not prevent misappropriation or infringement of our intellectual property.

No assurance can be given that any patents based on pending patent applications or any future patent applications by us, or any future licensors, will be issued, that the scope of any patent protection will exclude competitors or provide competitive advantages to us, that any of the provisional patent applications that have been or may be issued to us or our licensors will be held valid if subsequently challenged or that others will not claim rights in or ownership of the provisional patent applications and other proprietary rights held or licensed by us. Furthermore, there can be no assurance that others have not developed or will not develop similar products, duplicate any of our technology or design around our patent or any patents that may be issued to us or our licensors.

Our success will also depend in part on our ability to commercialize our technology without infringing the proprietary rights of others. We have not conducted freedom of use patent searches and no assurance can be given that patents do not exist or could not be filed which would have an adverse effect on our ability to market our technology or maintain our competitive position with respect to our technology. If our technologies or subject matter are claimed under other existing United States or foreign patents or are otherwise protected by third party proprietary rights, we may be subject to infringement actions. In such event, we may challenge the validity of such patents or other proprietary rights or we may be required to obtain licenses from such companies in order to develop, manufacture or market our technology. There can be no assurances that we will be able to obtain such licenses or that such licenses, if available, may be obtained on commercially reasonable terms. Furthermore, the failure to either develop a commercially viable alternative or obtain such licenses may result in delays in marketing our technology or the inability to proceed with the development, manufacture or sale of products requiring such licenses, which may have a material adverse effect on our business, financial condition and results of operations. If we are required to defend ourselves against charges of patent infringement or to protect our proprietary rights against third parties, substantial costs will be incurred regardless of whether we are successful. Such proceedings are typically protracted with no certainty of success. An adverse outcome could subject us to significant liabilities to third parties and force us to curtail or cease our development and commercialization of our technology.

Employees

As of April 30, ~~2014~~2015, our company has retained three (3) consultants including Bashar Amin, our president, chief executive officer and director, Imad Kamel Yassine, our chief operating officer, chief financial officer, secretary, treasurer and director . and,. On March 28, 2014, Walter J. Zurawick, Jr., our former president, chief executive officer and director. ~~On March 28, 2014 Mr. Zurawick~~ resigned from all positions~~, including as a consult~~.

We plan to employ a number of executive officers including a vice president of marketing and three sales engineers by approximately January 2015. We anticipate that we may spend up to $108,000 per month to employee officers and employees and up to $50,000 in payroll taxes.

Research and Development

We have not spent any amounts on which has been classified as research and development activities in our financial statements during the last two fiscal years.

Going Concern

We anticipate that additional funding will be required in the form of equity financing from the sale of our common stock. At this time, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock or through a loan from our directors to meet our obligations over the next twelve months. We do not have any arrangements in place for any future equity financing.

Subsidiaries

We do not have any subsidiaries.

REPORTS TO SECURITY HOLDERS

We are required to file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission and our filings are available to the public over the internet at the Securities and Exchange Commission’s website at http://www.sec.gov. The public may read and copy any materials filed by us with the Securities and Exchange Commission at the Securities and Exchange Commission’s Public Reference Room at 100 F Street N.E. Washington D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the Securities and Exchange Commission at 1-800-732-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, at http://www.sec.gov.

Item 1A. Risk Factors

~~Much~~As ofa ~~the information included in this annual report includes or is based upon estimates, projections or other~~ “~~forward~~smaller ~~looking~~reporting ~~statements~~company”~~. Such forward looking statements include any projections and estimates made by us and our management in connection with our business operations. While these forward-looking statements~~, ~~and~~we ~~any assumptions upon which they~~ are ~~based,~~not ~~are~~required ~~made~~to inprovide ~~good faith and reflect our current judgment regarding~~ the ~~direction~~information ofrequired ~~our~~by ~~business,~~this ~~actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein~~Item.

Such estimates, projections or other “forward looking statements” involve various risks and uncertainties as outlined below. We caution the reader that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any such estimates, projections or other “forward looking statements”.

Risks Related to Our Business

We have a history of losses and insufficient revenues, which raise substantial doubt about our ability to continue as a going concern.

We have a minimal prior history of profitability and a working capital deficit of $2,312,756 as of April 30, 2014. We have generated estimated net losses of $21,960,000 since inception. We have limited liquidity and do not yet have sufficient revenues to cover operating costs over an extended period of time. We can offer no assurance that we will operate profitably or continue to generate positive cash flow in the future. In addition, our operating results in the future may be subject to significant fluctuations due to many factors not within our control, such as the unpredictability of when customers will order products, the size of customers’ orders, the demand for our products, and the level of competition and general economic conditions.

Our company’s operations will be subject to all the risks inherent in the establishment of a developing enterprise and the uncertainties arising from the absence of a significant operating history. No assurance can be given that we may be able to operate on a profitable basis.

Due to the nature of our business and the early stage of our development, our securities must be considered highly speculative. We have not realized significant or sustained profit from our operations to date and there is little likelihood that we will realize any profits in the short or medium term. Any profitability in the future from our business will be dependent upon the successful commercialization or licensing of our core products, which themselves are subject to numerous risk factors as set forth below.

We expect to continue to incur development costs and operating costs. Consequently, we expect to incur operating losses and negative cash flows until our products gain market acceptance sufficient to generate a commercially viable and sustainable level of sales, and/or additional products are developed and commercially released and sales of such products made so that we are operating in a profitable manner. Our history of losses and insufficient revenues raise substantial doubt about our ability to continue as a going concern.

We have had negative cash flows from operations since inception. We will require significant additional financing, the availability of which cannot be assured, and if our company is unable to obtain such financing, our business may fail.

To date, we have had negative cash flows from operations and have depended on sales of our equity securities and debt financing to meet our cash requirements. We may continue to have negative cash flows. We have estimated that we will not require additional cash based on our projected cash flow from existing and future revenues to carry out our business plan for the next twelve months. There is no assurance that actual cash requirements will not exceed our estimates. We will require additional financing to finance working capital and pay for operating expenses and capital requirements until we achieve a positive cash flow.

Our ability to market and sell our waste water treatment plant system will be dependent upon our ability to raise significant additional financing. If we are unable to obtain such financing, we will not be able to fully develop our business. Specifically, we will need to raise additional funds to:

support our planned growth and carry out our business plan;

protect our intellectual property;

hire top quality personnel for all areas of our business;

address competing technological and market developments; and

market and develop our technologies.

We may not be able to obtain additional equity or debt financing on acceptable terms as required. Even if financing is available, it may not be available on terms that are favorable to us or in sufficient amounts to satisfy our requirements. Any additional equity financing may involve substantial dilution to our then existing shareholders. If we require, but are unable to obtain, additional financing in the future, we may be unable to implement our business plan and our growth strategies, respond to changing business or economic conditions, withstand adverse operating results and compete effectively. More importantly, if we are unable to raise further financing when required, we may be forced to scale down our operations and our ability to generate revenues may be negatively affected.

We have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations.

We have a limited history of revenues from operations and have no significant tangible assets. We have not generated positive earnings prior to fiscal 2013 and there can be no assurance that we will continue operate profitably. We have only recently completed our acquisition of the U.K. patent in respect to the BioShaft System and our company has limited operating history in the business of designing and manufacturing domestic waste water treatment plant system. Accordingly, we must be considered in the development stage. Our success is significantly dependent on a successful commercialization of our waste water treatment plant system. Our operations will be subject to all the risks inherent in the establishment of a developing enterprise and the uncertainties arising from the absence of a significant operating history. We may be unable to develop a useful waste water treatment system or achieve commercial acceptance of our waste water treatment plant system or operate on a profitable basis. We are in the development stage and potential investors should be aware of the difficulties normally encountered by enterprises in the development stage. If our business plan is not successful, and we are not able to operate profitably, investors may lose some or all of their investment in our company.

If we fail to effectively manage the growth of our company and the commercialization of our products and technology, our future business results could be harmed and our managerial and operational resources may be strained.

As we proceed with the commercialization of our products, technologies and the expansion of our marketing and commercialization efforts internationally, we expect to experience significant growth in the scope and complexity of our business. We will need to add staff to market our services, manage operations, handle sales and marketing efforts and perform finance and accounting functions. We anticipate that we will be required to hire a broad range of additional personnel in order to successfully advance our operations. This growth is likely to place a strain on our management and operational resources. The failure to develop and implement effective systems, or to hire and retain sufficient personnel for the performance of all of the functions necessary to effectively service and manage our potential business, or the failure to manage growth effectively, could have a material adverse effect on our business and financial condition.

We do not have the ability to manufacture our product on a commercial scale and will need to rely on third-party manufacturers and other third parties for production of our products, and our dependence on these manufacturers may impair the development of our product candidates.

Currently, we do not have the ability to internally manufacture our product on a commercial scale. We are in the process of identifying manufacturers for long-term supply contracts of components and subassemblies of our product. There are several potential manufacturers capable of manufacturing components and subassemblies for our waste water treatment plant system. There can be no assurance that we will be able to successfully negotiate long-term agreements with any of such potential manufacturers at a reasonable price and on other acceptable terms.

If our third-party manufacturers fail to deliver our products on a timely basis, with sufficient quality, and at commercially reasonable prices, we may be required to delay, suspend or otherwise discontinue development and production of our product. While we may be able to identify replacement third-party manufacturers or develop our own manufacturing capabilities for our product, this process would likely cause a delay in the availability of our product and an increase in costs. We may also be required to enter into long-term manufacturing agreements that contain exclusivity provisions and/or substantial termination penalties. In addition, third-party manufacturers may have a limited number of facilities in which our product can be produced, and any interruption of the operation of those facilities due to events such as equipment malfunction or failure or damage to the facility by natural disasters could result in the cancellation of shipments, loss of product in the manufacturing process or a shortfall in available product.

We depend upon a number of third party suppliers for component parts for our products, and any disruption from such suppliers could prevent us from delivering our products to our customers within required timeframes or at scheduled prices, which could result in order cancellations and a decline in sales.

We assemble our products using materials and components procured from a number of third-party suppliers. If we fail to maintain our relationships with these suppliers, we may be unable to assemble our products or our products may be available only at a higher cost or after a long delay. We may be unable to obtain comparable materials and components from alternative suppliers. Our failure to obtain components that meet our quality, quantity, technological and cost requirements in a timely manner may interrupt or impair our ability to assemble our products or it may increase our manufacturing cost. We may be unable to identify new suppliers or qualify their products for use on our production lines in a timely manner and on commercially reasonable terms. Any of these factors could prevent us from delivering our products to our customers within required timeframes, and we may experience order cancellations which would adversely affect our business operations.

We may lose our competitiveness if we are not able to protect our proprietary technology and intellectual property rights against infringement, and any related litigation may be time-consuming and costly.

Our success and ability to compete depends to a significant degree on our proprietary technology. If any of our competitors copy or otherwise gain access to our proprietary technology or develop similar technologies independently, we may not be able to compete as effectively. The measures we have implemented to protect our proprietary technology and other intellectual property rights are currently based upon a combination of a patent, patent applications and trade secrets. These measures, however, may not be adequate to prevent the unauthorized use of our proprietary technology and our other intellectual property rights. Our pending patent applications may not result in the issuance of any patents or any issued patents that will offer protection against competitors with similar technology. Further, the laws of foreign countries may provide inadequate protection of such intellectual property rights. We may need to bring legal claims to enforce or protect such intellectual property rights. Any litigation, whether successful or unsuccessful, may result in substantial costs and a diversion of our company’s resources. In addition, notwithstanding our rights to our intellectual property, other persons may bring claims against us alleging that we have infringed on their intellectual property rights or claims that our intellectual property rights are not valid. Any claims against us, with or without merit, could be time consuming and costly to defend or litigate, divert our attention and resources, result in the loss of goodwill associated with our business or require us to make changes to our technology.

The manufacture, use or sale of our waste water treatment plant system may infringe on the patent rights of others, and we may be forced to litigate if an intellectual property dispute arises.

If we infringe or are alleged to have infringed another party’s patent rights, we may be required to seek a license, defend an infringement action or challenge the validity of the patents in court. Patent litigation is costly and time consuming. We may not have sufficient resources to bring these actions to a successful conclusion. In addition, if we do not obtain a license, do not successfully defend an infringement action or are unable to have infringed patents declared invalid, we may:

incur substantial monetary damages;

encounter significant delays in marketing our waste water treatment plant system;

be unable to conduct or participate in the manufacture, use or sale of our waste water treatment plant system;

lose patent protection for our inventions and products; or

find that our patents are unenforceable, invalid, or have a reduced scope of protection.

Parties making such claims may be able to obtain injunctive relief that could effectively block our ability to further develop or commercialize our waste water treatment plant system in United States, Central and Eastern Europe, Asia and Middle East and could result in the award of substantial damages. Defense of any lawsuit or failure to obtain any such license could substantially harm our company. Litigation, regardless of outcome, could result in substantial cost to and a diversion of efforts by our company.

Because our waste water treatment plant system has not been accepted as a recognized form of waste water treatment, we face significant barriers to acceptance of our services.

Our waste water treatment plant system has not been fully utilized in any particular market. The use of equipment such as ours is a relatively new form of waste water treatment. Traditionally, these services are provided through other treatment methodologies, such as chemicals or other aeration methods. Accordingly, we face significant barriers to overcome the consumer preferences of traditionally used treatment programs for the type of waste water treatment products and services that we offer.

Market acceptance of our products and services will depend in large part upon our ability to demonstrate the technical and operational advantages and cost effectiveness of our products and services as compared to alternative, competing products and services, and our ability to train customers concerning the proper use and application of our products. There can be no assurance that our products and services will achieve a level of market acceptance that will be profitable for us.

Our waste water treatment plant system may not achieve market acceptance at a level necessary for us to operate successfully.

Our waste water treatment plant system may not achieve market acceptance at a level necessary to enable production at a reasonable cost, to support the required sales and marketing effort, to effectively service and maintain, and to support continuing research and development costs. In addition, our waste water treatment plant system may:

be difficult or overly expensive to produce;

fail to achieve performance levels expected by customers;

have a price level that is unacceptable in our targeted industries; or

be precluded from commercialization by the proprietary rights of others or other competitive forces.

We cannot assure you that we will be able to successfully manufacture and market our waste water treatment plant system on a timely basis, achieve anticipated performance levels or throughputs, gain and maintain industry acceptance of our waste water treatment plant system or develop a profitable business. The failure to achieve any of these objectives would have a material adverse effect on our business, financial condition and results of operations.

Because we face intense competition from larger and better-established companies that have more resources than we do, we may be unable to implement our business plan or increase our revenues.

The market for our waste water treatment products and services is intensely competitive and highly fragmented. Many of these competitors may have longer operating histories, greater financial, technical and marketing resources, and enjoy existing name recognition and customer bases. New competitors may emerge and rapidly acquire significant market share. In addition, new technologies likely will increase the competitive pressures we face. Competitors may be able to respond more quickly to technological change, competitive pressures, or changes in consumer demand. As a result of their advantages, our competitors may be able to limit or curtail our ability to compete successfully.

In addition, many of our large competitors may offer customers a broader or superior range of services and technologies. Some of our competitors may conduct more extensive promotional activities and offer lower commercialization and licensing costs to customers than we do, which could allow them to gain greater market share or prevent us from establishing and increasing our market share. Increased competition may result in significant price competition, reduced profit margins or loss of market share, any of which may have a material adverse effect on our ability to generate revenues and successfully operate our business. Our competitors may develop technologies superior to those that our company currently possess. In the future, we may need to decrease our prices if our competitors lower their prices. Our competitors may be able to respond more quickly to new or changing opportunities, technologies and customer requirements. Such competition will potentially affect our chances of achieving profitability, and ultimately affect our ability to continue as a going concern.

If product liability lawsuits are successfully brought against us, we will incur substantial liabilities and may be required to limit commercialization of our products.

We face an inherent business risk of exposure to product liability claims in the event that an individual is harmed because of the failure of our products to function properly. If we cannot successfully defend ourselves against the product liability claim, we will incur substantial liabilities. Regardless of merit or eventual outcome, liability claims may result in:

decreased demand for our products;

injury to our reputation;

costs of related litigation;

substantial monetary awards to plaintiffs;

loss of revenues; and

the inability to commercialize our technologies.

We currently carry no product liability insurance. Although we expect to obtain product liability insurance coverage in connection with the commercialization of our products, such insurance may not be available on commercially reasonable terms or at all, or such insurance, even if obtained, may not adequately cover any product liability claim. A product liability or other claim with respect to uninsured liabilities or in excess of insured liabilities could have a material adverse effect on our business and prospects.

Products which incorporate our waste water treatment technology will be subject to extensive regulation, which can be costly and time-consuming and could subject us to unanticipated delays or prevent us from obtaining the required approvals to commercialize our products.

Before we can market and sell products which incorporate our waste water treatment technology in the United States and abroad, extensive regulatory testing, inspection and approvals may be required. The regulatory process can be costly and time consuming. Our products which incorporate the waste water treatment technology may not receive necessary regulatory approval. Even if these products receive approval, the approval process might delay marketing and sale of our products, which may lead to a failure to meet our sales projections.

We will be subject to laws, regulations and other procedures with respect to government procurement.

Because we plan to sell some of our products to government agencies, we will be subject to laws, regulations and other procedures that govern procurement and contract implementation by those agencies. These agencies are likely to impose vendor qualification requirements, such as requirements with respect to financial condition, insurance and history. We have limited experience with government procurement and cannot assure you that we will be able to meet existing or future procurements laws, regulations and procedures or that we will be able to qualify as a vendor.

Substantially all of our assets and a majority of our directors and officers are outside the United States, with the result that it may be difficult for investors to enforce within the United States any judgments obtained against us or any of our directors or officers.

Although we are organized under the laws of the State of Nevada, United States, a majority of our directors and our officers are nationals and/or residents of countries other than the United States, and all or a substantial portion of such persons’ assets are located outside the United States. As a result, it may be difficult for investors to enforce judgments against us that are obtained in the United States in any action, including actions predicated upon civil liability provisions of federal securities laws. In addition, as the majority of our assets are located outside of the United States, it may be difficult to enforce United States bankruptcy proceedings against us. Under bankruptcy laws in the United States, courts typically have jurisdiction over a debtor’s property, wherever it is located, including property situated in other countries. Courts outside of the United States may not recognize the United States bankruptcy court’s jurisdiction. Accordingly, you may have trouble administering a United States bankruptcy case involving a Nevada company as debtor with most of its property located outside the United States. Any orders or judgments of a bankruptcy court obtained by you in the United States may not be enforceable.

Our by-laws contain provisions indemnifying our officers and directors against all costs, charges and expenses incurred by them.

Our by-laws contain provisions with respect to the indemnification of our officers and directors against all expenses, liability and loss (including attorneys’ fees, judgments, fines and amounts paid or to be paid in settlement) reasonably incurred or suffered by him or her in connection with any action, suit or proceeding to which they were made parties by reason of his or her being or having been one of our directors or officers.

Currency translation and transaction risk may negatively affect our net sales, cost of sales and gross margins, and could result in exchange losses.

Although our reporting currency is the United States dollar, we intend to conduct our business and incur costs in the local currency of the other countries in which we intend to operate. Changes in exchange rates between foreign currencies and the United States dollar could affect our net sales and cost of sales figures, and could result in exchange losses. In addition, we incur currency transaction risk whenever we enter into either a purchase or a sales transaction using a dollar currency other than the United States.

Risks Related to Our Common Stock

A decline in the price of our common stock could affect our ability to raise further working capital, it may adversely impact our ability to continue operations and we may go out of business.

A prolonged decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise capital. Because we may attempt to acquire a significant portion of the funds we need in order to conduct our planned operations through the sale of equity securities, a decline in the price of our common stock could be detrimental to our liquidity and our operations because the decline may cause investors to not choose to invest in our stock. If we are unable to raise the funds we require for all of our planned operations, we may be forced to reallocate funds from other planned uses and may suffer a significant negative effect on our business plan and operations, including our ability to develop new products and continue our current operations. As a result, our business may suffer and not be successful and we may go out of business. We also might not be able to meet our financial obligations if we cannot raise enough funds through the sale of our common stock and we may be forced to go out of business.

If we issue additional shares in the future, it will result in the dilution of our existing shareholders.

We are authorized to issue up to 300,000,000 shares of common stock and 25,000,000 preferred shares with a par value of $0.001. Our board of directors may choose to issue some or all of such shares to acquire one or more businesses or to provide additional financing in the future. The issuance of any such shares will result in a reduction of the book value and market price of the outstanding shares of our common stock. If we issue any such additional shares, such issuance will cause a reduction in the proportionate ownership and voting power of all current shareholders. Further, such issuance may result in a change of control of our company.

Trading on the OTC Bulletin Board may be volatile and sporadic, which could depress the market price of our common stock and make it difficult for our stockholders to resell their shares.

Our common stock is quoted on the OTC Bulletin Board service of the Financial Industry Regulatory Authority. Trading in stock quoted on the OTC Bulletin Board is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with our operations or business prospects. This volatility could depress the market price of our common stock for reasons unrelated to operating performance. Moreover, the OTC Bulletin Board is not a stock exchange, and trading of securities on the OTC Bulletin Board is often more sporadic than the trading of securities listed on a quotation system like NASDAQ or a stock exchange like Amex. Accordingly, shareholders may have difficulty reselling any of their shares.

Our stock is a penny stock. Trading of our stock may be restricted by the SEC’s penny stock regulations and FINRA’s sales practice requirements, which may limit a stockholder’s ability to buy and sell our stock.

Our stock is a penny stock. The Securities and Exchange Commission has adopted Rule 15g-9 which generally defines “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and “accredited investors”. The term “accredited investor” refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in, and limit the marketability of, our common stock.

In addition to the “penny stock” rules promulgated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, the Financial Industry Regulatory Authority believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. The Financial Industry Regulatory Authority requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock.

OTHER RISKS

Trends, Risks and Uncertainties

We have sought to identify what we believe to be the most significant risks to our business, but we cannot predict whether, or to what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise. Investors should carefully consider all of such risk factors before making an investment decision with respect to our common stock.

Item 1B. Unresolved Staff Comments

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 2. Properties

We do not own any real property. Our principal business offices are located at ~~111~~222 West ~~Ocean~~6th ~~Blvd~~Street, ~~4th Floor~~#400, ~~Long~~San ~~Beach~~Pedro, CA ~~90802~~90731. We currently lease our space at rental payment of $500 per month. We believe that our current lease arrangements provide adequate space for our foreseeable future needs.

I tem 3. Legal Proceedings

We know of no material, existing or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our company.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

In the United States, our common shares are quoted on the ~~Over-the-Counter~~OTC ~~Bulletin~~Markets ~~Board~~ under the symbol “BSHF.” The following quotations, obtained from Stockwatch, reflect the high and low bids for our common shares based on inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

The high and low bid prices of our common stock for the periods indicated below are as follows:

OTC Bulletin Board(1)
OTC Markets(1)
Quarter Ended	High	Low
April 30, 2015	$0.04	$0.02
January 31, 2015	$0.03	$0.01
October 31, 2014	$0.05	$0.02
July 31, 2014	$0.05	$0.03
April 30, 2014	$0.0799	$0.02
January 31, 2014	$0.05	$0.025
October 31, 2013	$0.08	$0.015
July 31, 2013	$0.0719	$0.035
April 30, 2013	$0.09	$0.06
January 31, 2013	$0.09	$0.02
October 31, 2012	$0.09	$0.05
July 31, 2012	$0.15	$0.05
April 30, 2012	$0.276	$0.04

(1) OTC Market quotations reflect inter-dealer prices without retail mark-up, mark-down or commission, and may not represent actual transactions.

Over-the-counter market quotations reflect inter-dealer prices without retail mark-up, mark-down or commission, and may not represent actual transactions.

Our common shares are issued in registered form. Nevada Agency and Transfer Company, 50 West Liberty Street, Suite 880, Reno, Nevada 89501 (Telephone: 775-322-0626; Facsimile: 775-322-5623) is the registrar and transfer agent for our common shares.

~~As of July 22, 2014, the list of stockholders for our shares of common stock showed 35 registered stockholders and 110,411,170 shares of common stock outstanding.~~10

As of July 31, 2015, the list of stockholders for our shares of common stock showed 35 registered stockholders and 117,611,170 shares of common stock outstanding.

Dividends

We have not declared any dividends on our common stock since the inception of our company on March 8, 2006. There is no restriction in our Articles of Incorporation and Bylaws that will limit our ability to pay dividends on our common stock. However, we do not anticipate declaring and paying dividends to our shareholders in the near future.

Equity Compensation Plan Information

On December 15, 2007 we adopted a stock option plan. This plan has not been approved by our security holders. Under the terms of the plan, our company can issue, in aggregate, up to a total of 10% of the issued and outstanding shares of common stock.

The following table provides a summary of the securities authorized for issuance under Equity Compensation Plans, the weighted average price and number of securities remaining available for issuance, all as at April 30, ~~2014~~2015.


Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)	Weighted average exercise price of outstanding options, warrants and rights (b)	Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
Equity compensation plans approved by security holders	N/A	N/A	N/A
Equity compensation plans not approved by security holders	1,000,000	$0.15	10,891,117⁽¹⁾
Total	1,000,000	$0.15	10,891,117⁽¹⁾

(1) Based on 10% of the issued and outstanding shares, as allowed under the Stock Option Plan, on April 30, 2014, less the number of options issued.

Based on 10% of the issued and outstanding shares, as allowed under the Stock Option Plan, on April 30, 2014, less the number of options issued.

Purchase of Equity Securities by the Issuer and Affiliated Purchasers

We did not purchase any of our shares of common stock or other securities during the year ended April 30, ~~2014~~2015.

Recent Sales of Unregistered Securities

~~Other~~We ~~than as disclosed below, we~~ did not sell any equity securities which were not registered under the Securities Act during the year ended April 30, ~~2014~~2015 that were not otherwise disclosed on our quarterly reports on Form 10-Q or our current reports on Form 8-K filed during the year ended April 30, ~~2014~~2015.

Item 6. Selected Financial Data

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

~~The~~Except ~~following~~for ~~discussion~~the ~~should~~historical beinformation, ~~read~~the infollowing ~~conjunction~~discussion ~~with~~contains ~~our~~forward-looking ~~audited financial~~ statements ~~and~~that ~~the~~are ~~related~~subject ~~notes~~to ~~for~~risks ~~the years ended April 30, 2014~~ and ~~April~~uncertainties. ~~30,~~We ~~2013~~caution ~~that~~you ~~appear~~not ~~elsewhere~~to input ~~this~~undue ~~annual~~reliance ~~report.~~on ~~The~~any ~~following discussion contains~~ forward-looking statements, ~~that~~which ~~reflect~~speak ~~our~~only ~~plans,~~as ~~estimates~~of ~~and~~the ~~beliefs~~date of this report. Our actual results ~~could~~or actions may differ materially from ~~those~~these ~~discussed in the~~ forward -looking statements for many reasons. ~~Factors~~Our ~~that~~discussion ~~could~~and ~~cause~~analysis orof ~~contribute~~our tofinancial ~~such~~condition ~~differences~~and ~~include,~~results ~~but~~of ~~are~~operations ~~not~~should ~~limited~~be toread ~~those~~in ~~discussed~~conjunction ~~below~~with ~~and~~the ~~elsewhere~~financial instatements ~~this~~and ~~registration~~related ~~statement,~~notes ~~particularly~~and inwith the ~~section~~understanding ~~entitled~~that ~~“Risk~~our ~~Factors”~~actual ~~beginning~~future onresults ~~page~~may 14be ofmaterially ~~this~~different ~~annual~~from ~~report~~what we currently expect.

Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

Plan of Operation

During the next twelve month period, we intend to:

(a)

penetrate the waste water treatment industry worldwide by stressing the cost advantages and space saving capabilities of the BioShaft System;

(b)

build up a network of strategic alliances with several types of companies, including contractors that specialize in the construction of water treatment plants, engineering firms that work with municipalities and firms that specialize in “build own operate” project utilities;

(c)

form a partnership with a Chinese manufacturer that we can outsource to, and fabricate up to 2 BioShaft units per month within the first 3 months;

(d)

implement our pilot project in Southern California where we will setup and operate a packaged unit in order to complete the municipal permitting process for the California commission on environmental quality;

(e)

the small footprint and default generation of biogas gives BioShaft the unique ability among competitors to take on very high organic contaminant loads. Typically 400% to 500% of the maximum competitors quote.

(f)

BioShaft offering is MOST superior in:

brewery wastewater;

ii.

dairy wastewater;

iii.

dairy processing wastewater - cheese, yogurt, etc.

(g)

fill the positions of Vice President of Marketing and three sales engineers.

Not accounting for our working capital deficit as of April 30, 2015 of $2,~~312~~759,~~756~~423, we have estimated that we will require an additional $2,770,000 based on our projected cash flow from existing and future revenues to carry out our business plan for the next twelve months. In the event we do not have the funds necessary to cover our projected operating expenses for the next twelve month period, we may be required to raise additional funds through the issuance of equity securities, through loans or through debt financing. There can be no assurance that we will be successful in raising any required capital or that actual cash requirements will not exceed our estimates. We intend to fulfill any additional cash requirement through the sale of our equity securities.

If we are not able to obtain the additional financing on a timely basis, if and when it is needed, we will be forced to scale down or perhaps even cease the operation of our business.

Capital Expenditures

We do not intend to invest in capital expenditures during the twelve-month period ending April 30, 2015.

General and Administrative Expenses

We expect to spend $960,000 during the twelve-month period ending April 30, 2015 on general and administrative expenses including legal and auditing fees, rent, office equipment and other administrative related expenses.

Product Research and Development

We do not anticipate expending any funds on research and development, manufacturing and engineering over the twelve months ending April 30, 2015.

Purchase of Significant Equipment

We do not intend to purchase any significant equipment over the twelve months ending April 30, 2015.

23Results of Operations for the Years Ended April 30, 2015 and 2014

~~Results~~The following summary of ~~Operations~~our results of operations should be read in conjunction with our audited financial statements for the ~~Years~~years ~~Ended~~ended April 30, ~~2014~~2015 and ~~2013~~2014.

~~The~~Our ~~following~~operating ~~summary of our~~ results ~~of operations should be read in conjunction with our audited financial statements~~ for the years ended April 30, ~~2014~~2015 and ~~2013.~~2014 are summarized as follows:

Our operating results for the years ended April 30, 2014 and 2013 are summarized as follows:


	Year Ended
	April 30,
	2015		2014

Revenues	$	565,056	$	2,060,935
Cost of Goods Sold	$	468,848	$	1,764,413
Operating Expenses	$	721,088	$	917,257
Total Other (Income) Expense	$	(576,899)	$	(638,359)
Net Income (Loss)	$	(1,201,779)	$	(1,259,094)

		Year Ended
		April 30,
		2014		2013
Revenues	$	2,060,935	$	515,882
Net revenue (expense) from sale of products	$	Nil	$	(350)
Cost of Goods Sold	$	1,764,413	$	279,684
Operating Expenses	$	917,257	$	1,006,292
Total Other (Income) Expense	$	638,359	$	(1,516,688)
Net Income (Loss)	$	(1,259,094)	$	746,244

Revenues

Our revenues for the year ended April 30, ~~2014~~2015 were $2565,~~060~~056,~~935,~~ compared to our revenue for the year ended April 30, ~~2013~~2014, which were $~~515~~2,~~532~~060,935, representing ana ~~increase~~decrease of $1,~~545~~495,~~403~~879. ~~resulting~~The ~~from~~decrease in revenues for the ~~Company~~year ~~expanding~~ended ~~its~~April ~~domestic~~30, ~~and~~2015 ~~international~~is ~~distributors~~directly ~~who~~related ~~have~~to ~~increased~~our Company recognizing revenues in the ~~number~~prior year under the percentage of completion method for which five projects representing approximately $2.4 million were substantially complete as of the year ended April 30, 2014.

During the current fiscal year, our Company had four projects which are being accounted for under the completed contract method. The recognition of revenues and costs are based upon the delivery of equipment and limited installation services. During the year ended April 30, 2015, our Company completed one of the projects, while as of April 30, 2015 three remain. As of April 30, 2015, our Company has deferred revenues of $868,132 in connection with these three projects. Our Company expects to record the revenues and costs related for one of these projects in Q1 of fiscal 2016 and the remaining two in Q2 of fiscal 2016. Our Company's revenues will continue to be inconsistent until a pipeline of such contacts is established.

Cost of Revenues

Our cost of revenues for the year ended April 30, ~~2014~~2015 were $1468,~~746,413~~848 (~~84.7~~83% of revenues), compared to our cost of revenues for the year ended April 30, ~~2013~~2014, which were $~~279~~1,~~684~~746,413. The ~~increase~~decrease in ~~our~~ cost of revenues is directly related to our company recognizing costs in the ~~increase~~prior year under the percentage of completion method in ~~revenues.~~which ~~Although~~were ~~our~~substantially ~~revenues~~complete ~~have~~as ~~increased,~~of the ~~decrease~~year inended ~~our~~April ~~gross~~30, ~~profit~~2014. ~~percentage~~In ~~relates~~addition, ~~our~~during ~~willingness~~the toyear ~~make~~ended ~~lower~~April ~~margins~~30, on2015, ~~current~~our ~~projects~~company tocost ~~establish~~overruns ~~ourselves~~of ~~within~~$47,620 ~~the~~related ~~market~~to ~~place.~~one of our company's projects.

During the current fiscal year, our company had four projects which are being accounted for under the completed contract method as both are based upon the delivery of equipment and limited installation services. As of April 30, 2015, capitalized costs in connection with completed contract were $711,489. Future cost of sales may be impacted by the effects of inflation and changing prices from our suppliers and fluctuations in foreign currency rates as certain costs are incurred in foreign currencies.

Operating Expenses

Our operating expenses for the ~~year~~years ended April 30, ~~2014~~2015 and 2014 ~~April 30, 2013~~ are outlined in the table below:

	Year Ended	~~Year Ended~~
	April 30,	~~April 30,~~
		2014		2013
	2015		2014
Selling, general and administrative	$	~~417~~299,~~397~~140	$	~~448~~417,~~234~~397
Advertising, marketing and promotions	$	152,~~123~~287	$	715,~~788~~123
Consulting fees	$	~~453~~419,~~500~~100	$	~~432~~453,~~179~~500
Depreciation	$	~~1,123~~561	$	1,123
Stock based compensation	$	~~30,114~~0	$	~~116~~30,~~968~~114
Total Operating Expenses	$	~~917~~721,~~257~~088	$	1917,~~006,292~~257

The decrease in operating expenses for the year ended April 30, ~~2014~~2015, compared to the same period in fiscal ~~2013~~2014, was mainly due to decreases in selling, general and administrative expenses and stock based compensation as we try to conserve working capital to fund our revenue producing operations.

Liquidity and Financial Condition

Working Capital

	April 30,	~~April 30,~~		April 30,	~~April 30,~~
		2014			2013
	2015			2014
Current assets	$	~~573~~792,~~631~~376		$	~~331~~573,~~532~~631
Current liabilities	$	23,~~886~~551,~~387~~799		$	12,~~418~~886,~~679~~387
Working capital deficiency	$	(2,~~312~~759,~~756~~423)	)	$	(12,~~087~~312,~~147~~756)	)

As of April 30, ~~2014~~2015, our total current assets were $~~573~~792,~~631~~376 and our total current liabilities were $23,~~886~~551,~~387~~799 and we had a working capital deficit of $2,~~312~~759,~~756~~423. Our financial statements report a net loss of $1,~~259~~201,~~094~~779 for the year ended April 30, ~~2014~~2015, and a net ~~income~~loss of $~~746~~1,~~244~~259,094 for the year ended April 30, ~~2013~~2014.

We have suffered recurring losses from operations. The continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed. In this regard we have raised additional capital through equity offerings and loan transactions.

Cash Flows

	At	At		At	At
		April 30, 2014			April 30, 2013
	April 30, 2015			April 30, 2014
Net Cash (Used in) Operating Activities	$	(~~278~~501,~~494~~163)	)	$	(~~225~~278,~~236~~494)	)
Net Cash Provided by Investing Activities	$	Nil		$	Nil
Net Cash Provided by Financing Activities	$	~~Nil~~484,800		$	~~237,500~~Nil
Cash (decrease) increase during the year	$	(~~278~~16,~~494~~363)	)	$	12(278,~~264~~494)

We had cash in the amount of $3720,~~338~~975 as of April 30, ~~2014~~2015 as compared to $~~315~~37,~~832~~338 as of April 30, ~~2013~~2014. We had a working capital deficit of $2,~~312~~759,~~756~~423 as of April 30, ~~2014~~2015 compared to working capital deficit of $12,~~087~~312,~~147~~756 as of April 30, ~~2013~~2014. During fiscal ~~2014~~2015, we have funded operations primarily through cash flows generated through the sales of our water processing plants.

Historically, our principal sources of funds have been from sales of our common stock and debt agreements.

Contractual Obligations

As a “smaller reporting company”, we are not required to provide tabular disclosure obligations.

Going Concern

The audited financial statements included with this annual report have been prepared on the going concern basis which assumes that adequate sources of financing will be obtained as required and that our assets will be realized and liabilities settled in the ordinary course of business. Accordingly, the audited financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary should we be unable to continue as a going concern.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Critical Accounting Policies

Our audited financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles used in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financials.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

Our company follows accounting guidance issued by the Financial Accounting Standards Board (“FASB”) on “Fair Value Measurements” for assets and liabilities measured at fair value on a recurring basis. The FASB defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the FASB requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The guidance also establishes a fair value hierarchy for measurements of fair value as follows:

Level 1:	Observable inputs such as quoted market prices in active markets for identical assets or liabilities.
Level 2:	Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3:	Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

Our company discloses the estimated fair value for all financial instruments for which it is practicable to estimate fair value. As of April 30, 2014 and 2013, the fair value of short-term financial instruments including cash, accounts receivable, accounts payable and accrued expenses, costs in excess of billings on uncompleted projects, billings in excess of costs and estimated earnings on uncompleted projects, and accrued interest approximates book value due to their short-term maturity. The fair value of property and equipment is estimated to approximate its net book value. The fair value of debt obligations, other than convertible loans payable approximates their face values due to their short-term maturities and/or the variable rates of interest associated with the underlying obligation.

Revenue Recognition

For contracts in which ~~our~~the ~~company~~Company can reasonably estimate the costs and the percent complete, ~~our~~the ~~company~~Company recognizes revenues based on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.

For contracts in which ~~our~~the ~~company~~Company can't reasonably estimate the costs and the percent complete, ~~our~~the ~~company~~Company recognizes revenues using the completed contract method. Typically, these contracts are isolated to international contracts whereby ~~our~~the ~~company~~Company is providing equipment and limited installation. Under the completed contract basis, contract costs are recorded to a deferred asset account and billings and/or cash received are recorded to a deferred revenue liability account during the periods of construction. All revenues, costs, and profits are recognized in operations upon completion of the contract. A contract is considered completed when all costs except insignificant items have been incurred and the equipment is delivered to the end user.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs, and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.

The asset, “Costs in excess of billings on uncompleted projects”, represents costs incurred on current projects in which have not been allocated to the particular project or the contract has not been completed and typically relate to deposit paid or incurred to third party vendors in which the services and or equipment has not been provided. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenues recognized. Contract retentions are included in accounts receivable.15

~~Stock-Based~~The ~~Compensation~~asset, "Costs in excess of billings on uncompleted projects", represents costs incurred on current projects which have not been allocated to the particular project or the contract has not been completed and typically relate to deposits paid or incurred to third party vendors in which the services and or equipment has not been provided. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenues recognized or amounts in which the Company has received in connection with contracts being recognized under the completed contract method. Contract retentions are included in accounts receivable.

Our company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, “Compensation - Stock Compensation” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values over the requisite vesting period.

Our company follows ASC 505-50, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance with ASC 505-50, these stock options and warrants issued as compensation for services provided to our company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital over the period during which services are rendered.

Product Warranty Costs

Our company provides warranties for certain products and maintains warranty reserves for estimated product warranty costs based upon the percent complete of the project. In estimating our future warranty obligations, our company considers various relevant factors, including our company's stated warranty policies and practices, the historical frequency of claims and the cost to replace or repair our products under warranty. During the year ended April 30, 2014, our company recorded an initial warranty reserve of $24,000, which is reflected within accounts payable and accrued liabilities on the accompanying balance sheet, in which there have been no offsets. Previously, a warranty reserve had not been required and thus not provided.

Income Taxes

Our company provides for income taxes using an asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. No provision for income taxes is included in the statement due to its immaterial amount, net of the allowance account, based on the likelihood of our company to utilize the loss carry-forward.

Our company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of our company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. Our company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While our company believes we have appropriate support for the positions taken on our tax returns, our company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. Our company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. To date no such provisions have been recorded.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 8. Financial Statements and Supplementary Data

Our audited financial statements are stated in United States dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

Table of Contents

Report of Independent Registered Public Accounting Firm	F-1
Report of Independent Registered Public Accounting Firm	F-2
Balance Sheets as of April 30, 2015 and 2014	F-2
Balance Sheets as of April 30, 2014 and 2013	F-3
Statements of Operations for the years ended April 30, 2015 and 2014	F-3
Statements of Operations for the years ended April 30, 2014 and 2013	F-4
Statements of Changes in Stockholders’ Deficit for the years ended April 30, 2015 and 2014	F-4
Statements of Changes in Stockholders’ Deficit for the years ended April 30, 2014 and 2013	F-5
Statements of Cash Flows for the years ended April 30, 2015 and 2014	F-5
Statements of Cash Flows for the year ended April 30, 2014 and 2013	F-6
Notes to Financial Statements	F-6
Notes to Financial Statements	F-7

2916

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

Bioshaft Water Technology, Inc.

Long Beach, California

We have audited the accompanying balance sheets of Bioshaft Water Technology, Inc., as of April 30, 2015 and 2014, and the related statements of operations, stockholders’ deficit, and cash flows for the ~~year~~years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our ~~audit~~audits.

We conducted our ~~audit~~audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our ~~audit~~audits ~~provides~~provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bioshaft Water Technology, Inc., as of April 30, 2015 and 2014 and the results of their operations and cash flows for the ~~year~~years then ended, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that Bioshaft Water Technology, Inc. will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has incurred losses from operations, has negative working capital and is in need of additional capital to grow its operations so that it can become profitable. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans with regard to these matters are described in Note 1. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ KLJ & Associates, LLP

~~KLJ & Associates~~Edina, ~~LLP~~ MN

~~St.~~August ~~Louis Park~~13, MN2015

August 20, 2014

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

Bioshaft Water Technology, Inc.

Long Beach, California

We have audited the accompanying balance sheets of Bioshaft Water Technology, Inc., as of April 30, 2013, and the related statements of operations, stockholders’ deficit, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bioshaft Water Technology, Inc., as of April 30, 2013 and the results of their operations and cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Silberstein Ungar, PLLC

Silberstein Ungar, PLLC

Bingham Farms, Michigan

August 13, 2013

F-2

BIOSHAFT WATER TECHNOLOGY, INC.

BALANCE SHEETS

		April 30,		April 30,
		2014		2013
		2015		2014
ASSETS
Current Assets
	Cash	$	3720,~~338~~975	$	~~315~~37,~~832~~338
	Accounts receivable, net allowance for doubtful accounts of $34,000 and $0, respectively		302,941		15,700
	Accounts receivable, net allowance for doubtful accounts of $182,030 and $34,000, respectively		58,955		302,941
	Costs in excess of billings on uncompleted projects		233,352		-
	Other current assets		957		-
Total Current Assets			573,631		331,532
	Deferred costs of goods sold		711,489		233,352
Property and equipment, net			561		1,684
Total Current Assets			792,376		573,631
Deposits			1,000		3,248
Property and equipment, net			-		561
TOTAL ASSETS		$	575,192	$	336,464
Deposits			1,000		1,000
TOTAL ASSETS		$	793,376	$	575,192
LIABILITIES AND STOCKHOLDERS' DEFICIT
LIABILITIES
Current Liabilities
	Accounts payable and accrued expenses	$	1569,~~473,172~~664	$	~~777~~924,~~165~~917
	Billings in excess of costs and estimated earnings on uncompleted projects		427,814		294,797
	Accounts payable and accrued expenses - related party		831,583		548,255
	Accrued interest, net of discount of $0 and $229,787, respectively		460,401		151,864
	Deferred revenue		370,419		326,887
	Convertible loan payable, net of debt discount of $0 and $330,147 respectively		525,000		194,853
	Deferred revenue - related party		497,713		100,927
TOTAL LIABILITIES			2,886,387		1,418,679
	Accrued interest		65,230		460,401
	Note payable		1,147,390		-
	Convertible loan payable		-		525,000
	Related party notes payable		69,800		-
TOTAL LIABILITIES			3,551,799		2,886,387
STOCKHOLDERS' DEFICIT
	Preferred stock, $0.001 par value; 25,000,000 shares authorized, none issued and outstanding		-		-
	Common stock, $0.001 par value; 300,000,000 shares authorized, 108,911,170 issued and outstanding, respectively		108,911		108,911
	Common stock, $0.001 par value; 300,000,000 shares authorized, 117,611,170 and 108,911,170 issued and outstanding, respectively		117,611		108,911
	Additional paid-in capital		1920,~~539~~285,~~747~~598		19,~~509~~539,~~633~~747
	Accumulated deficit		(2123,~~959~~161,~~853~~632)		(2021,~~700~~959,~~759~~853)
TOTAL STOCKHOLDERS' DEFICIT			(2,~~311~~758,~~195~~423)		(12,~~082~~311,~~215~~195)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT		$	~~575~~793,~~192~~376	$	~~336~~575,~~464~~192

See accompanying notes to financial statements

F-32

BIOSHAFT WATER TECHNOLOGY, INC.

STATEMENTS OF OPERATIONS

		For the Year Ended		For the Year Ended
		April 30, 2014		April 30, 2013
		April 30, 2015		April 30, 2014
REVENUES
	Net revenue from projects	$	2565,~~060,935~~056	$	~~515~~2,~~882~~060,935
	Net revenue (expense) from sale of products		-		(350)
TOTAL REVENUES			565,056		2,060,935
TOTAL REVENUES			2,060,935		515,532
COST OF REVENUES			468,848		1,764,413
COST OF REVENUES			1,764,413		279,684
GROSS PROFIT			96,208		296,522
GROSS PROFIT			296,522		235,848
OPERATING EXPENSES
	Selling, general, and administrative		~~417~~299,~~397~~140		~~448~~417,~~234~~397
	Advertising, marketing, and promotions		152,~~123~~287		715,~~788~~123
	Consulting fees		~~453~~419,~~500~~100		~~432~~453,~~179~~500
	Depreciation		~~1,123~~561		1,123
	Stock-based compensation		~~30,114~~-		~~116~~30,~~968~~114
TOTAL OPERATING EXPENSES			~~917~~721,~~257~~088		1917,~~006,292~~257
LOSS FROM OPERATIONS			(~~620~~624,~~735~~880)		(~~770~~620,~~444~~735)
OTHER INCOME (EXPENSE)
	Interest income (expense), net		(78102,~~425~~757)		(78,~~593~~425)
	Amortization of debt discount		~~(559,934)~~-		(~~549~~559,~~644~~934)
	Gain on settlement with ZAZ		-		130,996
	Loss on extinguishment		(474,142)		-
	Change in fair value of derivative liability		-		2,013,929
TOTAL OTHER INCOME (EXPENSE)			(576,899)		(638,359)
TOTAL OTHER INCOME (EXPENSE)			(638,359)		1,516,688
LOSS BEFORE PROVISION FOR INCOME TAXES			(1,201,779)		(1,259,094)
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES			(1,259,094)		746,244
PROVISION FOR INCOME TAXES			-		-
NET INCOME (LOSS)		$	(1,259,094)	$	746,244
NET LOSS		$	(1,201,779)	$	(1,259,094)
NET INCOME (LOSS) PER SHARE: BASIC		$	(0.01)	$	0.01
NET LOSS PER SHARE: BASIC AND DILUTED		$	(0.01)	$	(0.01)
NET INCOME (LOSS) PER SHARE: DILUTED		$	(0.01)	$	0.01
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
BASIC			108,911,170		105,028,582
BASIC AND DILUTED			115,108,704		108,911,170
DILUTED			108,911,170		131,288,665

See accompanying notes to financial statements

F-43

BIOSHAFT WATER TECHNOLOGY, INC.

STATEMENT OF STOCKHOLDERS' DEFICIT

For the Years Ended April 30, ~~2014~~2015 and ~~2013~~2014

				~~Additional~~	Additional		~~Total~~		Total
	Common Stock			~~Paid-in~~	Paid-in	~~Accumulated~~	~~Stockholders'~~Accumulated		Stockholders'
	Shares	Amount		~~Capital~~	Capital	~~Deficit~~	Deficit		Deficit
Balance, April 30, 2012	104,383,000	$104,383		$17,642,389		$(21,447,003)	$(3,700,231)
Balance, April 30, 2013	108,911,170	$	108,911		$	19,509,633	$	(20,700,759)	$	(1,082,215)
Stock-based compensation	-	-	-	~~74,690~~		-30,114	~~74,690~~	-		30,114
Extinguishment of derivative liability	-	-		700,004		-	700,004
Net loss	-		-			-		(1,259,094)		(1,259,094)
Discount on convertible note and accrued interest	2,945,170	2,945		856,633		-	859,578
Balance, April 30, 2014	108,911,170		108,911			19,539,747		(21,959,853)		(2,311,195)
Stock issued for cash	1,583,000	1,583		235,917		-	237,500
Stock and warrants in connection with extinguishment	5,000,000		5,000			494,551		-		499,551
Net income	-	-		-		746,244	746,244
Stock issued for cash	3,700,000		3,700			251,300		-		255,000
Balance, April 30, 2013	108,911,170	108,911		19,509,633		(20,700,759)	(1,082,215)
Net loss	-		-			-		(1,201,779)		(1,201,779)
Stock-based compensation	-	-		30,114		-	30,114
Balance, April 30, 2015	117,611,170	$	117,611		$	20,285,598	$	(23,161,632)	$	(2,758,423)
Net loss	-	-		-		(1,259,094)	(1,259,094)
Balance, April 30, 2014	108,911,170	$108,911		$19,539,747		$(21,959,853)	$(2,311,195)

See accompanying notes to financial statements

F-54

BIOSHAFT WATER TECHNOLOGY, INC.

STATEMENTS OF CASH FLOWS

	For the Year Ended		For the Year Ended
	April 30, 2014		April 30, 2013
	April 30, 2015		April 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(1,259,094)	$	746,244
Net loss	$	(1,201,779)	$	(1,259,094)
Adjustments to reconcile net income (loss) to net cash used for operating activities:
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation expense		1,123		1,123
Loss on extinguishment		474,142		-
Amortization of debt and accrued interest discount		559,934		549,644
Depreciation expense		561		1,123
Bad debt expense		34,000
Amortization of debt and accrued interest discount		-		559,934
Stock-based compensation		30,114		116,968
Bad debt expense		115,363		34,000
Change in fair value derivative liability		-		(2,013,929)
Stock-based compensation		-		30,114
Changes in operating assets and liabilities:
Accounts receivable		~~(321~~128,~~241)~~623		(15321,~~700~~241)
Costs in excess of billings on uncompleted projects		(233,352)		2,253
Deferred costs of goods sold		(478,137)		(233,352)
Deposits		2,248		(1,000)
Other assets		(957)		2,248
Accounts payable and accrued expenses		~~696~~(71,~~007~~925)		~~111~~696,~~667~~007
Due to related party		-		(24,120)
Deferred revenues		440,318		133,017
Billings in excess of costs and estimated earnings on uncompleted projects		133,017		222,864
Accrued interest		92,628		78,750
Accrued interest		78,750		78,750
Net cash used in operating activities		(501,163)		(278,494)
Net cash used in operating activities		(278,494)		(225,236)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of stock		-		237,500
Proceeds from notes payable		160,000		-
Net Cash Provided by financing activities		-		237,500
Proceeds from related party notes payable		69,800		-
Change in cash during the year		(278,494)		12,264
Proceeds from issuance of stock		255,000		-
Cash at beginning of year		315,832		303,568
Net cash provided by financing activities		484,800		-
Cash at end of year	$	37,338	$	315,832
Change in cash during the year		(16,363)		(278,494)
Cash at beginning of year		37,338		315,832
Cash at end of year	$	20,975	$	37,338
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	$	-9,295	$	-
Cash paid for income taxes	$	-800	$	-
NON-CASH TRANSACTIONS
Debt discount due to common stock and beneficial conversion feature	$	-	$	506,059
Convertible notes payable and accrued interest exchanged for note payable	$	1,047,390	$	-
Discount on accrued interest	$	-	$	353,519
Stock and warrants issued in connection with extinguishment	$	499,551	$	-
Derivative liability reclassed to additional paid-in capital	$	-	$	700,004

See accompanying notes to financial statements

F-65

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

NOTE 1. GENERAL ORGANIZATION AND BUSINESS

Business

Bioshaft Water Technology, Inc. (the “Company”) was originally incorporated under the laws of the state of Nevada on March 8, 2006. The Company owns worldwide patented technology and is in the business of designing, manufacturing and installing wastewater (sewage) treatment plants using its technology.

Going Concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplate continuation of the Company as a going concern. The Company has used cash flows from operations and incurred net losses of approximately $2123,~~960~~161,~~000~~632 since inception. The Company currently has limited liquidity, and does not yet have enough revenues sufficient to cover operating costs over an extended period of time. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors cause significant doubt regarding the Company to continue as a going concern.

Management anticipates that the Company will be dependent, for the foreseeable future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES

Basis of Presentation

The accounting policies of the Company are in accordance with the accounting principles generally accepted in the United States of America and are presented in United States dollars (“USD”). Outlined below are those policies considered particularly significant.

Use of Estimates

Fair Value of Financial Instruments

The Company follows accounting guidance issued by the Financial Accounting Standards Board (“FASB”) on “Fair Value Measurements” for assets and liabilities measured at fair value on a recurring basis. The FASB defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the FASB requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

F-76

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

The guidance also establishes a fair value hierarchy for measurements of fair value as follows:


Level 1:	Observable inputs such as quoted market prices in active markets for identical assets or liabilities.

Level 2:	Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3:	Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

The Company discloses the estimated fair value for all financial instruments for which it is practicable to estimate fair value. As of April 30, ~~2014~~2015 and ~~2013~~2014, the fair value of short-term financial instruments including cash, prepaid expenses, accounts receivable, accounts payable and accrued expenses, costs in excess of billings on uncompleted projects, billings in excess of costs and estimated earnings on uncompleted projects, and accrued interest approximates book value due to their short-term maturity. The fair value of property and equipment is estimated to approximate its net book value. The fair value of debt obligations, other than convertible loans payable approximates their face values due to their short-term maturities and/or the variable rates of interest associated with the underlying obligation.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company has a diversified customer base. The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

Basic Income (Loss) per Common Share

Basic income (loss) per share is calculated by dividing the Company’s net income (loss) applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the estimated tax benefits that would be recorded in paid-in capital, if any, when an award is settled are assumed to be used to repurchase shares in the current period.

During the year ended April 30, 2015, the Company excluded 6,100,000 common stock equivalents related to options outstanding as their effects would have been anti-dilutive.

During the year ended April 30, 2014, the Company excluded 6,100,000 common stock equivalents related to options outstanding, 10,000,000 common stock equivalents related to warrants outstanding, 37,640,760 shares issuable under the convertible loans payable and accrued interest as their effects would have been anti-dilutive.

The following is a summary of outstanding securities which have been included in the calculation of diluted net income per share and reconciliation of net income to net income available to common stock holders for the year ended April 30, 2013:

F-8

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

	For the Year
	Ended
	April 30, 2013
Weighted average common shares outstanding used in calculating basic earnings per share		105,028,582
Warrants		6,260,083
Convertible loans payable and accrued interest		20,000,000
Weighted average common and common equivalent shares used in calculating diluted earnings per share		131,288,665
Net income as reported	$	746,244
Add - Interest on convertible loans payable		78,750
Net income as adjusted	$	824,994

Cash and Cash Equivalents

For purpose of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

F-7

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

Accounts Receivable

Accounts receivable is generated from contracts for projects. An allowance for doubtful accounts is provided against accounts receivable for amounts management believes may be uncollectible. The Company determines the adequacy of this allowance by regularly evaluating the customer receivables and at ~~time~~times obtaining prepayments on contracts. During the years ended April 30, ~~2014~~2015 and ~~2013~~2014, the provisions for uncollectible accounts receivable was $34182,~~000~~030 and $034,000, respectively.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Computer equipment is depreciated over the period of three years.

Convertible Debt

Convertible debt is accounted for under the guidelines established by Accounting Standards Codification (“ASC”) 470 “Debt with Conversion and Other Options” and ASC 740 “Beneficial Conversion Features”. The Company records a beneficial conversion feature (“BCF”) related to the issuance of convertible debt that have conversion features at fixed or adjustable rates that are in-the-money when issued and records the fair value of warrants, if any, issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to paid-in-capital.

The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718 “Compensation - Stock Compensation”, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense. For a conversion price change of a convertible debt issue, the additional intrinsic value of the debt conversion feature, calculated as the number of additional shares issuable due to a conversion price change multiplied by the previous conversion price, is recorded as additional debt discount and amortized over the remaining life of the debt.

F-9

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

The Company accounts for modifications of its BCF’s in accordance with ASC 470 “Modifications and Exchanges”. ASC 470 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment.

Revenue Recognition

For contracts in which the Company can reasonably estimate the costs, ~~and~~ the percent complete and are responsible for the overall project administration, the Company recognizes revenues based on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.

For contracts in which the Company can't reasonably estimate the costs and the percent complete, the Company recognizes revenues using the completed contract method. Typically, these contracts are isolated to international contracts whereby the Company is providing equipment and limited installation. Under the completed contract basis, contract costs are recorded to a deferred asset account and billings and/or cash received are recorded to a deferred revenue liability account during the periods of construction. All revenues, costs, and profits are recognized in operations upon completion of the contract. A contract is considered completed when all costs except insignificant items have been incurred and the equipment is delivered to the end user.F-8

~~Contract~~BIOSHAFT ~~costs~~WATER ~~include all direct material and labor costs and those indirect costs related to contract performance~~TECHNOLOGY, ~~such as indirect labor, supplies, tools, repairs, and depreciation~~INC. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.

~~The~~NOTES ~~asset,~~TO ~~"Costs~~FINANCIAL in excess of billings on uncompleted projects", represents costs incurred on current projects in which have not been allocated to the particular project or the contract has not been completed and typically relate to deposit paid or incurred to third party vendors in which the services and or equipment has not been provided. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenues recognized. Contract retentions are included in accounts receivable.STATEMENTS

For contracts in which the Company cannot reasonably estimate the costs and the percent complete, the Company recognizes revenues using the completed contract method. Typically, these contracts are isolated to international contracts whereby the Company is providing equipment and limited installation. Under the completed contract basis, contract costs are recorded to a deferred asset account and billings and/or cash received are recorded to a deferred revenue liability account during the periods of construction. All revenues, costs, and profits are recognized in operations upon completion of the contract. A contract is considered completed when all costs except insignificant items have been incurred and the equipment is accepted by the end user.

The asset, deferred costs of goods sold, represents costs incurred on current projects which have not been allocated to the particular project or the contract has not been completed and typically relate to deposits paid or incurred to third party vendors in which the services and or equipment has not been provided. The liability, deferred revenue, represents billings in excess of revenues recognized or amounts in which the Company has received in connection with contracts being recognized under the completed contract method. Contract retentions are included in accounts receivable. As of April 30, 2015, $22,302 was included within deferred revenues in which related to contracts being accounted for under the percent completion method.

Stock-Based Compensation

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, “Compensation - Stock Compensation” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values over the requisite vesting period.

The Company follows ASC 505-50, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance with ASC 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital over the period during which services are rendered.

F-10

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

Derivative Financial Instruments

We do not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of our financial instruments. However, under the provisions ASC 815 - “Derivatives and Hedging” certain financial instruments that have characteristics of a derivative, as defined by ASC 815, such as embedded conversion features on our convertible notes, that are potentially settled in the Company’s own common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within our control. In such instances, net-cash settlement is assumed for financial accounting and reporting purposes, even when the terms of the underlying contracts do not provide for net-cash settlement. Derivative financial instruments are initially recorded, and continuously carried, at fair value each reporting period.

F-9

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

The value of the embedded conversion feature was determined using the Black-Scholes option pricing model. All changes in the fair value of the embedded conversion feature were recognized currently in earnings until the note was extinguished. Determining the fair value of derivative financial instruments involved judgment and the use of certain relevant assumptions including, but not limited to, interest rate risk, credit risk, volatility and other factors. The use of different assumptions could have a material effect on the estimated fair value amounts.

Product Warranty Costs

The Company provides warranties for certain products and maintains warranty reserves for estimated product warranty costs based upon the percent complete of the project. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company's stated warranty policies and practices, the historical frequency of claims and the cost to replace or repair its products under warranty. ~~During~~The ~~the~~following ~~year~~represents ~~ended~~changes ~~April~~in ~~30, 2014,~~ the ~~Company recorded an initial~~ warranty reserve offor ~~$24,000,~~the inyears ~~which~~ended ~~there~~April ~~have been no offsets. Previously~~30, a2015 ~~warranty reserve had not been required~~ and ~~thus not provided.~~2014:


	Year Ended
	April 30,		April 30,
	2015		2014

Beginning balance	$	24,000	$	-
Additions		4,000		24,000
Amortization / uses		-		-
Ending balance	$	28,000	$	24,000

Income Taxes

The Company provides for income taxes using an asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. No provision for income taxes is included in the statement due to its immaterial amount, net of the allowance account, based on the likelihood of the Company to utilize the loss carry-forward.

The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. To date no such provisions have been recorded.

F-1110

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

Impairment of Long-Lived Assets

The Company regularly evaluates whether events and circumstances have occurred that indicate the carrying amount of property and equipment may not be recoverable. When factors indicate that these long-lived assets should be evaluated for possible impairment, the Company assesses the potential impairment by determining whether the carrying value of such long-lived assets will be recovered through the future undiscounted cash flows expected from use of the asset and its eventual disposition. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as applicable. The Company regularly evaluates whether events and circumstances have occurred that indicate the useful lives of property and equipment may warrant revision. In our opinion, the carrying values of our long-lived assets, including property and equipment, were not impaired at April 30, ~~2014~~2015 and ~~2013~~2014.

New Accounting Pronouncements

~~The~~In ~~FASB~~May ~~issues~~2014, ~~Accounting~~the ~~Standard~~FASB ~~Updates~~issued ~~(“ASUs”)~~new toaccounting ~~amend~~guidance ~~the~~regarding ~~authoritative~~revenue ~~literature~~recognition inunder ~~the Accounting Standards Codification (“ASC”)~~GAAP. ~~There~~This ~~have~~new ~~been~~guidance awill ~~number~~supersede ofnearly ~~ASUs~~all toexisting ~~date~~revenue ~~that~~recognition ~~amend~~guidance, ~~the~~and ~~original~~is ~~text~~effective offor ~~ASC.~~public ~~The~~entities ~~Company~~for ~~believes~~annual ~~those~~and ~~issued~~interim toperiods ~~date~~beginning ~~either~~after ~~(i)~~December ~~provide supplemental guidance~~31, ~~(ii)~~2016. ~~are~~Early ~~technical~~adoption ~~corrections,~~is ~~(iii) are~~ not ~~applicable~~permitted. toThe ~~the~~ Company oris ~~(iv)~~currently ~~are~~evaluating ~~not~~the ~~expected~~impact toof ~~have~~this anew ~~significant~~guidance ~~impact~~ on the Company's consolidated financial statements.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, "Presentation of Financial Statements - Going Concern", which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. Management is still in the process of assessing the impact of ASU 2014-15 on the Company’s consolidated financial statements.

NOTE 3. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at April 30:

	2014		2013
	April 30,		April 30,
Computer equipment	$	15,177	$	15,177
	2015		2014
Less: accumulated depreciation		(14,616)		(13,493)
Computer Equipment	$	15,177	$	15,177
Property and equipment, net	$	561	$	1,684
Less: accumulated depreciation		(15,177)		(14,616)
Property and equipment, net	$	--	$	561

Depreciation expense was $~~1,123~~561 and $1,123 for the years ended April 30, ~~2014~~2015 and ~~2013~~2014, respectively.

NOTE 4. LOANS PAYABLE

$500,000 Convertible Loan

On August 11, 2008, the Company secured a loan payable of $500,000 accruing interest at 15%, secured by the assets of the Company, subject to a 3% financing fee and repayable on the one year anniversary date of the agreement. On February 13, 2012, the terms of the loan were changed to reflect a conversion feature. The loan is convertible into shares of the Company’s common stock, up to 20,000,000, at a price of $0.025 per share.

~~The Company accounts for the fair value of the conversion feature in accordance with ASC 815~~F-15 “Derivatives and Hedging; Embedded Derivatives” which requires the Company to bifurcate and separately account for the conversion features as an embedded derivative contained in the Company’s convertible loan. The Company is required to carry the embedded derivative on its balance sheet at fair value and account for any unrealized change in fair value as a component of results of operations. The Company valued the embedded derivative using the Black-Scholes pricing model. On February 13, 2012, the fair value of the conversion feature was recorded as a derivative liability and a discount to the convertible loan of $1,363,664 and $500,000, respectively. 11

F-12

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

OnThe ~~March~~Company 6,accounts ~~2013,~~for the ~~convertible~~fair ~~loan~~value ~~was~~of ~~modified to extend~~ the ~~maturity~~conversion ~~date~~feature toin ~~August~~accordance ~~11,~~with ~~2013. As~~ASC ~~consideration~~815-15 ~~for~~“Derivatives ~~the~~and ~~extension,~~Hedging; ~~2,811,873~~Embedded ~~common~~Derivatives” ~~shares~~which ofrequires the Company’s ~~common stock were issued~~ to ~~the~~bifurcate ~~lender. The~~and ~~common~~separately ~~shares~~account ~~were~~for ~~valued~~the atconversion ~~$168,712~~features ~~based~~as onan ~~the~~embedded ~~closing~~derivative ~~market~~contained ~~price~~in of the Company'’s ~~common~~convertible ~~stock on the date of the agreement~~loan. The ~~modification~~Company ~~qualified~~is ~~for~~required ~~extinguishment~~to ~~accounting~~carry ~~whereby~~ the ~~former~~embedded ~~convertible~~derivative ~~loan~~on ~~was~~its ~~considered~~balance ~~extinguished~~sheet ~~and~~at afair ~~new~~value ~~convertible~~and ~~loan~~account ~~issued.~~for ~~Accordingly,~~any ~~the~~unrealized ~~derivative~~change ~~liability~~in ~~allocated~~fair ~~with~~value ~~the extinguished convertible note no longer required liability accounting~~ as ~~the~~a ~~conversion~~component ~~price~~ of ~~the~~results ~~convertible~~of ~~note was fixed at $0~~operations.~~025~~ ~~per~~The ~~share.~~Company ~~Thus,~~valued the embedded derivative ~~liability was valued immediately before extinguishment,~~ using the ~~inputs~~Black-Scholes ~~noted~~pricing ~~below~~model. atOn ~~March~~February 613, ~~2013~~2012, ~~with~~ the ~~remaining~~fair ~~balance~~value of ~~$700,004 being charged to additional paid-in capital. Because~~ the ~~terms~~conversion offeature ~~the~~was ~~modified~~recorded ~~note~~as ~~included~~ a ~~fixed~~derivative ~~conversion~~liability ~~price~~ and ~~because~~a ~~the~~discount ~~Company~~to ~~has~~the anconvertible ~~adequate~~loan ~~number~~ of ~~common~~$1,363,664 ~~shares~~and ~~available to be issued to cover the conversion~~$500,000, ~~no derivative liability was applicable~~respectively.

~~The~~On ~~Company~~March ~~allocated~~6, ~~fair~~2013, ~~value~~the ofconvertible loan was modified to extend the ~~common~~maturity ~~shares~~date ~~issued~~to ofAugust ~~$168~~11,~~712~~ in2013. As ~~connection~~consideration ~~with~~for the ~~new~~extension, ~~convertible~~2,811,873 ~~loan~~common ~~based~~shares onof ~~their~~the ~~relative~~Company’s ~~fair~~common ~~value~~stock were issued to the ~~face~~lender. The ~~value~~common ofshares ~~the~~were ~~convertible~~valued ~~loan~~at $168,712 ~~which~~based ~~resulted~~on inthe aclosing ~~discount~~market price of ~~$126,147~~the ~~being~~Company's ~~allocated~~common tostock on the ~~common~~date ~~shares~~of the agreement. The ~~new~~modification qualified for extinguishment accounting whereby the former convertible loan ~~also~~was ~~contained~~considered extinguished and a ~~BCF~~new ~~due~~convertible toloan issued. Accordingly, the ~~conversion~~derivative ~~price~~liability ~~being~~allocated ~~below~~with the ~~fair~~extinguished ~~market~~convertible ~~value~~note ofno ~~the~~longer ~~Company's~~required ~~common~~liability ~~stock~~accounting onas the ~~date~~conversion price of ~~issuance.~~the ~~The~~convertible ~~BCF~~note was ~~valued~~fixed at $~~331~~0.025 per share. Thus,~~288,~~ ~~which~~the ~~resulted~~derivative inliability awas ~~100%~~valued ~~discount~~immediately tobefore extinguishment, using the ~~new~~inputs ~~convertible~~noted ~~loan. As~~below ofat ~~April~~March 306, ~~2014 and~~ 2013, with the ~~Company~~remaining ~~recognized~~balance ~~amortization expense~~ of $~~325~~700,~~000~~004 ~~and~~being ~~$175,000,~~charged ~~respectively,~~to ~~using~~additional ~~the~~paid-in ~~straight~~capital ~~line~~during ~~method~~the inyear ~~connection~~ended ~~with~~April 30, 2013. Because the ~~amortization~~terms of the ~~convertible~~modified ~~loan~~note ~~discount.~~included Asa fixed conversion price and because the Company has an adequate number of ~~April~~common ~~30,~~shares ~~2014,~~available to be issued to cover the ~~discount~~conversion, isno ~~fully~~derivative ~~amortized~~liability was applicable.

InThe ~~addition~~Company allocated fair value of the common shares issued of $168,712 in connection with the ~~agreement~~new convertible loan based on their relative fair value to the ~~accrued~~face ~~interest~~value ~~was~~of ~~now~~the convertible atloan, which resulted in a discount of $~~0.025~~126,147 ~~the~~being ~~same~~allocated ~~rate~~to as the common shares. The new convertible ~~note.~~loan Atalso ~~the~~contained ~~date~~a ofBCF ~~the~~due ~~agreement,~~to the conversion price ~~was~~being below the fair market value of the Company's common stock ~~which~~on ~~implied~~the adate ~~BCF~~of issuance. The BCF was valued at $~~353~~331,~~519~~288, which resulted in a 100% discount to ~~accrued~~the ~~interest~~new convertible loan. AsDuring ofthe year ended April 30, 2014 ~~and 2013~~, the Company recognized amortization expense of $~~229~~325,~~787~~000 ~~and $123,732, respectively~~ using the straight line method in connection with the amortization of the convertible loan discount. As of April 30, 2014, the discount iswas fully amortized. ~~Accrued interest related to this loan is $441,019 and $366,019 as of April 30, 2014 and 2013, respectively.~~

~~Total~~In ~~amortization~~addition, ~~expense~~with ~~recorded~~the ~~related~~agreement to the accrued interest was convertible at $~~500~~0.025,~~000~~ the same rate as the new convertible note. ~~and~~At the date of the agreement, the conversion price was below the fair market value of the Company's common stock which implied a BCF. The BCF was valued at $353,519, which resulted in a 100% discount to accrued interest. During ~~during~~ the year ended April 30, 2014, ~~was~~the Company recognized amortization expense of $~~554~~229,787 using the straight line method in connection with the amortization of the discount. As of April 30, 2014, the discount was fully amortized. Accrued interest related to this loan was $441,019 as of April 30, 2014.

AsSee ofdiscussion ~~April~~below ~~30,~~for ~~2014,~~exchange ~~the Company was in default~~ of ~~the~~this ~~convertible~~note ~~loan~~into ~~and~~a isnew ~~currently~~note ~~trying to renegotiate the terms with the holder~~payable.

The derivative liability was revalued each reporting period using the Black-Scholes model. The Company estimated the fair value of the derivative liability using the Black-Scholes model on the March 6, 2013, the date of extinguishment, using the following assumptions:

	March 6, 2013
Exercise price	$0.025
Risk free interest rate	0.07%
Expected dividend yield	0%
Volatility	186%
Expected life of options	.01 years

During the year ended April 30, 2013, the Company recorded a gain on the change in fair value of derivative liability of $2,013,929 due to the changes in fair value of the derivative liability between April 30, 2012 and the date of extinguishment.

F-13

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

$25,000 Loan Payable

On March 6, 2009, the Company secured a loan payable of $25,000 accruing interest at 15%, due March 6, 2010 and secured by the assets of the Company.

On March 6, 2013, the secured loan payable was modified to extend the maturity date to March 6, 2014. As consideration for the extension, 133,297 common shares of the Company’s common stock were issued to the lender. The common shares were valued at $7,998 based on the closing market price of the Company's common stock on the date of the agreement. The modification qualified for extinguishment accounting whereby the former secured loan payable was considered extinguished and a new secured loan payable was issued.

The Company allocated the common shares issued in connection with the new secured loan payable based on their relative fair value to the face value of the secured loan payable, which resulted in a discount of $6,059 being allocated to the secured loan payable. As of April 30, 2014 and 2013, the Company recognized amortization expense of $5,147 and $912, respectively, in connection with the amortization of the secured loan payable discount using the straight line method. As of April 30, 2014, the discount is fully amortized. F-12

~~Accrued~~BIOSHAFT ~~interest~~WATER ~~related to this loan was $19~~TECHNOLOGY,~~382~~ ~~and $15,632 as of April 30, 2014 and 2013, respectively~~INC.

AsNOTES ofTO ~~April~~FINANCIAL ~~30, 2014, the Company was in default of the secured loan payable and is currently trying to renegotiate the terms with the holder.~~STATEMENTS

The Company allocated the common shares issued in connection with the new secured loan payable based on their relative fair value to the face value of the secured loan payable, which resulted in a discount of $6,059 being allocated to the secured loan payable. During the year ended April 30, 2014, the Company recognized amortization expense of $5,147 in connection with the amortization of the secured loan payable discount using the straight line method. As of April 30, 2014, the discount was fully amortized. Accrued interest related to this loan was $19,382 as of April 30, 2014.

See discussion below for exchange of this note into a new note payable.

$60,000 Loan Payable

In May 2014, the Company received $60,000 in proceeds used for working capital purposes from the $500,000 and $25,000 note holders discussed above. On August 21, 2014, the loan payable and accrued interest was sold by the holder and the terms were amended, see below for additional disclosure.

$1,047,390 Note Payable

On August 21, 2014, the Company was notified that the $60,000 advance, $500,000 convertible note payable and $25,000 secured note payable and accrued interest of $487,799 on such was sold by the holder to a related entity of the holder. On August 21, 2014, the Company entered into a note agreement for $1,047,390. Under the terms of the agreement, the note incurs interest at 7.5% per annum, the holder received 5,000,000 bonus shares of common stock and is due July 7, 2015. In addition, if the Company does not raise $5.0 million in equity capital by July 7, 2015, the holder will receive 30,000,000 warrants to purchase shares of the Company's common stock at $0.025 per share. In connection with the new agreement, the $500,000 convertible note and accrued interest on such is no longer convertible into common stock and warrants to purchase 10,000,000 shares of common stock held by the current holder, which were received in connection with a previous transaction, were cancelled. The Company accounted for the transaction as an extinguishment due to the significant change in the future expected cash flows, which was in excess of 10%, due to the change in interest rate, removal of the conversion feature, cancelation of warrants and issuance of 5,000,000 shares of common stock. The total loss recorded in connection with this extinguishment was $474,142. In determining the loss on extinguishment the Company determined the fair market value of the beneficial conversion feature, warrants and shares of common stock on August 21, 2014. Although, the issuance of the 30,000,000 million warrants are contingent upon a future event, the value was taken into consideration in the loss calculation as the holder does not have a performance commitment to receive such shares and the Company viewed the raising of capital as a market condition to receiving such. As of April 30, 2015, accrued interest on the note payable was approximately $61,000.

$100,000 Note Payable

On December 24, 2014, the Company secured a $100,000 note payable, accruing interest at 7.5% per annum being due December 24, 2015. The proceeds were used for operating purposes. The loan payable is with the same party as the $1,047,390 note payable disclosed above.

NOTE 5. STOCKHOLDERS’ DEFICIT

Authorized

The Company is authorized to issue 300,000,000 shares of $0.001 par value common stock and 25,000,000 shares of $0.001 par value preferred stock. All common stock shares have equal voting rights, are non-assessable and have one vote per share. Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they choose to do so, elect all of the directors of the Company. The preferred shares may be issued in series, with the powers, rights and limitations of the preferred shares to be determined by the Board.

F-13

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

Shares Issued for Cash

OnIn ~~March~~July 132014, ~~2013,~~ the Company ~~issued~~sold 1,~~250~~500,000 shares of common stock at $0.1507 per share ~~for~~resulting ~~total~~in proceeds of $~~187~~105,~~500~~000.

OnIn ~~March~~August 202014, ~~2013,~~ the Company ~~issued~~sold ~~333~~2,200,000 shares of common stock to a member of the board of directors at $0.1568 per share ~~for~~resulting ~~total~~in proceeds of $50150,000.

Stock Options and Stock-Based Compensation

The Company uses the Black-Scholes option valuation model to value stock options and warrants granted. The Black- Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The model requires management to make estimates, which are subjective and may not be representative of actual results.

~~F-14~~A summary of stock option for the years ended April 30, 2015 and 2014 and changes during the corresponding year are presented as follows:

BIOSHAFT WATER TECHNOLOGY, INC.


	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Outstanding April 30, 2013	11,300,000	$	0.15	5.3
Granted	-		-	-
Canceled	(5,200,000)		0.15	7.8
Outstanding April 30, 2014	6,100,000		0.15	1.6
Granted	-		-	-
Canceled	-		-	-
Outstanding April 30, 2015	6,100,000	$	0.15	0.6

~~NOTES~~During TOthe ~~FINANCIAL~~years ~~STATEMENTS~~ended April 30, 2015 and 2014, the Company recorded $0 and $30,114 in stock-based compensation, respectively, which includes the amortization of prepaid amounts. All stock based compensation has been amortized as of April 30, 2015 and 2014.

A summary of stock option for the years ended April 30, 2014 and 2013 and changes during the corresponding year are presented as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Outstanding April 30, 2012	13,300,000	$	0.15	5.9
Granted	-		-	-
Canceled	(2,000,000)		0.15	3.4
Outstanding April 30, 2013	11,300,000		0.15	5.3
Granted	-		-	-
Canceled	(5,200,000)		0.15	7.8
Outstanding April 30, 2014	6,100,000	$	0.15	1.6

During the years ended April 30, 2014 and 2013, the Company recorded $30,114 and $116,968 in stock-based compensation, respectively, which includes the amortization of prepaid amounts. All stock based compensation has been amortized as of April 30, 2014.

Warrants

As of April 30, 2014 ~~and 2013~~, the Company ~~has~~had outstanding warrants to purchase 10,000,000 shares of common stock at an exercise price of $0.025 with an initial life of five years., ~~The~~expiring ~~warrants expire~~ in February 2017. See Note 4 above for discussion related to the cancellation of these warrants.

NOTE 6. RELATED PARTY TRANSACTIONS

Consulting Contracts

As of April 30, ~~2014~~2015, the Company has consulting contracts with three related parties for total annual compensation of $384,000. Total amounts due to these related parties, including reimbursable expenses, as of April 30, ~~2014~~2015 and ~~2013~~2014 was $~~170~~453,~~289~~617 and $~~141~~170,~~400~~289, respectively. The amounts are included in accounts payable and accrued expenses - related party on the accompanying balance ~~sheet~~sheets.

~~During~~As ~~the~~of ~~year ended~~ April 30, ~~2013~~2014, athe ~~consulting~~Company's ~~contract~~Chief ~~with~~Executive ~~a related party for total annual compensation of $120~~Officer,~~000~~ ~~expired~~who onresigned ~~December~~in ~~31,~~February ~~2012 without renewal. During the year ended April 30~~2014, ~~2013,~~had ~~the~~accrued ~~Company~~salaries ~~recorded compensation~~ of $8019,000 ~~in connection with this contract~~. AsThe ofamount ~~April~~was ~~30,~~subsequently ~~2014, no additional amounts were due to this former consultant~~paid.

As of April 30, 2014 and 2013, the Company's Chief Executive Officer, who resigned in February 2014, had accrued salaries of $19,000 and $58,000, respectively. The amount was included in accounts payable and accrued expenses on the accompanying balance sheets.F-14

As of April 30, 2014 and 2013, a former officer and current shareholder of the Company is due $206,000 for prior consulting services performed which is included in accounts payable and accrued expenses on the accompanying balance sheets. There were no payments made on this obligation during the years ended April 30, 2014 and 2013.

As of April 30, 2014 and 2013, another consultant, shareholder and officer of the Company is due a net $171,966 which is included within accounts payable and accrued expenses on the accompanying balance sheets. There were no payments made on this obligation during the years ended April 30, 2014 and 2013.

As of April 30, 2012, the Company had a net amount due to a related party of $2,559. The amount was comprised of accounts receivable and accounts payable in which have the right of offset. The Company recognized net expense of $350 from the related party during the year ended April 30, 2013.

F-15

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

~~Revenues~~As of April 30, 2015 and ~~Settlements~~2014, a former officer and current shareholder of the Company is due $206,000 for prior consulting services performed which is included in accounts payable and accrued expenses - related party on the accompanying balance sheets. There were no payments made on this obligation during the years ended April 30, 2015 and 2014.

~~During~~As ~~the~~of ~~year ended~~ April 30, 2015 and 2014, ~~the~~another ~~Company entered into a contract with an entity controlled by a board of director to provide a waste water plant~~consultant, ~~see~~shareholder ~~below~~and ~~for~~officer ~~additional transactions with the board~~ of ~~director member. As of April 30, 2014,~~ the Company ~~has~~is ~~invoiced~~due ~~the~~a ~~related~~net ~~party under the contract~~ $~~100~~171,~~927~~966 of which ~~progress~~is ~~payments~~included ofwithin ~~$100,927~~accounts ~~have~~payable ~~been~~and ~~received.~~accrued ~~The~~expenses ~~Company~~- ~~has~~related ~~not~~party on ~~recorded~~the ~~any~~accompanying ~~revenues~~balance insheets. ~~connection~~There ~~with~~were ~~contract~~no aspayments tomade ~~date~~on ~~invoices~~this ~~have~~obligation ~~related~~during ~~to purchase equipment in which would incorrectly reflect~~ the ~~actual~~years ~~percent~~ended ~~complete~~April on30, ~~the~~2015 ~~contract.~~and 2014.

~~During the year ended April 30, 2013, the Company generated revenues of $248,060 from an entity controlled by a board of director, see below.~~ Revenues

OnFrom ~~October~~time ~~15,~~to ~~2012~~time, the Company ~~entered~~enters into contracts with an entity controlled by a ~~settlement~~board ~~agreement~~member ~~with~~to ~~Zuhier~~provide A.waste ~~Zahran~~water ~~("ZAZ")~~plants. ~~Under~~These contracts are typically for waste water plants located in the ~~terms~~middle ofeast in which the ~~agreement~~board member's company has operations. Under these contracts, the Company ~~transferred~~supplies completed waste water treatment units and the ~~responsibility~~customer ofperforms ~~all~~the ~~outstanding~~installation. ~~projects~~During inthe ~~which~~year ~~ZAZ~~ended ~~was~~April ~~acting~~30, as2015, the ~~teaming~~Company ~~partner~~recorded to$336,425 ~~ZAZ~~in revenues under these contracts. ~~Additionally,~~As ~~ZAZ~~of ~~obtained~~April 30, 2015, the ~~right~~Company capitalized costs of $478,814 related to ~~distribute~~these contracts in which expenditures had been made but the ~~Company's~~equipment ~~products~~had ~~for~~not abeen ~~period~~delivered ofor ~~two~~accepted ~~years~~by the end customer. InAs ~~connection~~of April 30, ~~with~~2015 ~~transaction~~and 2014, the Company has recorded awithin deferred ~~gain~~revenues on- ~~ZAZ~~related ~~settlement~~party $497,713 ofand $~~130~~100,~~996~~927, respectively. These amount represents amounts in which ~~was~~have been received from the ~~result~~related ofparty ~~$24,000~~but inthe ~~receivable~~revenue ~~from~~has ~~ZAZ~~not ~~and~~been recognized as the ~~relief~~equipment ofhas ~~liabilities~~not ~~and~~been ~~deposits~~delivered or accepted. As of ~~$106~~April 30,~~996~~ 2015, ~~net~~the ofCompany ahad $3011,~~000~~600 due from the related party recorded in accounts receivable ~~from ZAZ~~. The Company ~~recorded~~typically ~~the~~records ~~transaction~~revenues asand ~~other~~expenses ~~income~~in ~~and~~connection ~~expense~~with asthese contracts using the ~~transaction~~completed iscontract amethod ~~one-time~~as ~~transaction~~their ~~and~~services primarily relate to the ~~Company~~sale ~~intends~~of equipment to ~~generate~~the ~~future~~related ~~revenues~~party. ~~from~~The ~~ZAZ~~related ~~through~~party is typically responsible for the ~~distribution~~installation and management of ~~their~~the ~~product~~project. The Company ~~received~~recognizes ~~the~~revenues ~~$24,000~~and ~~receivable~~costs ~~from~~when ~~ZAZ~~acceptance ~~during~~of the ~~year~~waste ~~ended~~water ~~April~~plants ~~30,~~are ~~2013~~received.

~~NOTE~~Promissory ~~7. COMMITMENT~~Note

In July 2014, the Company entered into a promissory note for $65,000 with an entity controlled by a significant shareholder and a member of the board of directors. The promissory note incurs interest at 15% per annum, compounding monthly, with principal and interest due July 25, 2015. Subsequent to this agreement, an additional $4,800 was provided to the Company, bringing the total due to the related party as of April 30, 2015 to $69,800. The additional proceeds have the same terms as the promissory note. The proceeds were used to fund operations.

Sales of Common Stock

See Note 5 for discussion regarding sales of common stock to a related party.

NOTE 7. COMMITMENT AND CONTINGENCIES

Operating Leases

~~In April 2009, Company entered into a lease for a new facility, commencing May 5, 2009.~~ The ~~lease expired on May 4, 2013 and carried a base rent of $24,692 per year. The~~ Company currently leases an office space on a year to year basis. Monthly rent charged in connection with this lease is approximately $~~500~~800.

Contingency

On January 30, 2015, Citadel Services, Inc. (“Citadel”) filed a law suit in the Supreme Court of the State of New York, County of Chautauqua, naming the Company and one of its customers as defendants. In the complaint filed by Citadel, they claimed that the Company has breached the sub-contract between them by failing to pay $57,580 for materials and labor already furnished in connection with one of the Company's projects. Citadel filed a mechanics lien on the project property for the same amount. In the complaint, Citadel requests judgment that Citadel is entitled to the outstanding amount and that the Company has breached the sub-contracts between them Citadel is also asking for costs and disbursements from the Company. As of April 30, 2015, the Company has $57,580 included within accounts payable and accrued liabilities on the accompanying balance sheet.

F-15

BIOSHAFT WATER TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

In May 2015, in connection with this lawsuit, the customer's response to the lawsuit indicated that the Company has damaged them due to breach of contract. The customer claims that these damages are approximately $515,000. The Company believes they have significant defenses to this response, intend to defend it vigorously, and believe that no loss is probable. Thus, no amounts have been included within the accompanying financial statements.

NOTE 8. INCOME TAXES

The provision for income tax consists of the following for the years ended April 30:

	2014		2013
Income tax benefit attributable to:
Net income (loss)	$	(414,832)	$	253,723
Permanent differences		190,378		(497,857)
Valuation allowance		224,454		244,134
Net provision for income tax	$	-	$	-

Income Taxes


	2015		2014
Income tax benefit attributable to:
Net income (loss)	$	(408,605)	$	(428,092)
Permanent differences		161,208		190,378
Valuation allowance		247,397		237,714
Net provision for income tax	$	--	$	--

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of April 30:

	2014		2013
	2015		2014
Deferred tax asset attributable to:
Net operating loss carryover	$	78,~~760~~021,~~569~~226	$	7,~~536~~773,~~115~~829
Valuation allowance		(78,~~760~~021,~~569~~226)		(7,~~536~~773,~~115~~829)
Net deferred tax asset	$	--	$	--

~~F-16~~During the years ended April 30, 2015 and 2014, the valuation allowance increased by $247,397 and $237,714, respectively. At April 30, 2015, the Company had approximately $8,021,226 in federal and state gross net operating losses allocated to continuing operations available. The net operating loss carry forwards, if not utilized, will begin to expire in 2029 for federal purposes and 2019 for state purposes.

~~BIOSHAFT~~Based ~~WATER~~on ~~TECHNOLOGY~~the available objective evidence, ~~INC~~including the Company’s limited operating history and current liabilities in excess of assets, management believes it is more likely than not that the net deferred tax assets at April 30, 2015 and 2014, will not be fully realizable. In addition, since inception the Company has issued a significant amount of common stock for cash, services, etc. The Company has determined that due to the significant change in ownership, the historical NOLs may have been impaired due to IRS Section 382 limitations.

~~NOTES~~The TOCompany ~~FINANCIAL~~has ~~STATEMENTS~~filed all United States Federal and State tax returns. The Company has identified the United States Federal tax returns as its “major” tax jurisdiction. The United States Federal return years 2011 through 2015 are still subject to tax examination by the United States Internal Revenue Service; however, we do not currently have any ongoing tax examinations. The Company is subject to examination by the California Franchise Tax Board for the years ended 2011 through 2015 and currently does not have any ongoing tax examinations.

During the years ended April 30, 2014 and 2013, the valuation allowance increased by $237,714 and $244,134, respectively. At April 30, 2014, the Company had approximately $22,864,000 in federal and state gross net operating losses allocated to continuing operations available. The net operating loss carry forwards, if not utilized, will begin to expire in 2029 for federal purposes and 2019 for state purposes.

Based on the available objective evidence, including the Company’s limited operating history and current liabilities in excess of assets, management believes it is more likely than not that the net deferred tax assets at April 30, 2014 and 2013, will not be fully realizable. In addition, since inception the Company has issued a significant amount of common stock for cash, services, etc. The Company has determined that due to the significant change in ownership, the historical NOLs have probably been impaired due to IRS Section 382 limitations.

The Company has filed all United States Federal and State tax returns. The Company has identified the United States Federal tax returns as its “major” tax jurisdiction. The United States Federal return years 2010 through 2014 are still subject to tax examination by the United States Internal Revenue Service; however, we do not currently have any ongoing tax examinations. The Company is subject to examination by the California Franchise Tax Board for the years ended 2009 through 2014 and currently does not have any ongoing tax examinations.

NOTE 9 - SUBSEQUENT EVENTS

~~Subsequent~~In toaccordance ~~year~~with ~~end~~ASC Topic 855-10, the Company ~~entered~~has ~~into~~analyzed aits ~~promissory~~operations ~~note~~subsequent ~~for~~to ~~$54~~April 30,~~000~~ ~~with~~2015 anto ~~entity~~the ~~controlled~~date bythese afinancial ~~significant~~statements ~~shareholder~~were issued, and ahas ~~member~~determined ofthat ~~the~~it ~~board~~does ofnot ~~directors.~~have ~~The~~any ~~promissory~~material ~~note~~subsequent ~~incurs~~events ~~interest~~to atdisclose ~~15%~~in ~~per~~these ~~annum,~~financial ~~compounding~~statements ~~monthly,~~other ~~with~~than ~~principal~~the ~~and~~items ~~interest due July 25, 2015~~above.

~~Subsequent to year end, the Company received $60,000 in proceeds used for working capital purposes from the note holders discussed in Note 4 above. The terms of the agreement have yet to be finalized.~~F-16

Subsequent to year end, the Company sold 1,500,000 shares of common stock at $0.07 per share resulting in proceeds of $105,000.

In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to April 30, 2014 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements other than the items above.

F-17

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

~~On July 29, 2014, Silberstein Ungar, PLLC (the “Former Accountant”) notified our company that its principals joined the accounting firm of KLJ & Associates, LLP~~None. As a result of the transaction, on July 29, 2014, the Former Accountant resigned as our company’s independent registered public accounting firm and our company engaged KLJ & Associates, LLP (the “New Accountant”) as our company’s independent registered public accounting firm. The engagement of the New Accountant was approved by our company’s board of directors.

The Former Accountant’s audit reports on the financial statements of our company for the fiscal years ended April 30, 2013 and 2012 contained no adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles. The audit report of the Former Accountant on our company’s financial statements for the fiscal years ended April 30, 2013 and 2012 contained an unqualified opinion with an emphasis of a matter regarding our company’s ability to continue as a going concern.

During the fiscal years ended April 30, 2013 and 2012, and through July 29, 2014, there were no “disagreements” (as such term is defined in Item 304 of Regulation S-K) with the Former Accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to the satisfaction of the Former Accountant would have caused them to make reference thereto in their reports on the financial statements for such periods. In addition, during that time there were no “reportable events” as that term is defined in Item 304(a)(1)(v) of Regulation S-K.

During the fiscal years ended April 30, 2013 and 2012 and through July 29, 2014, our company did not consult with the New Accountant regarding (i) the application of accounting principles to a specified transaction, either contemplated or proposed, or the type of audit opinion that might be rendered on our company’s financial statements, nor did the New Accountant provide advice to our company, either written or oral, that was an important factor considered by our company in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any matter that was the subject of a “disagreement” or a “reportable event” (as those terms are defined in Item 304(a)(2) of Regulation S-K).

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, our management evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of April 30, ~~2014~~2015.

Our management, with the participation of our president (our principal executive officer) and our chief financial officer (our principal accounting officer and principal financial officer), evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, our president (our principal executive officer) and our chief financial officer (our principal accounting officer and principal financial officer) have concluded that, as of the end of such period, our disclosure controls and procedures were effective to ensure that information that is required to be disclosed by us in the reports we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our president (our principal executive officer) and our chief financial officer (our principal accounting officer and principal financial officer), as appropriate, to allow timely decisions regarding required disclosure.

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 Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed by, or under the supervision of, our president (our principal executive officer) and our chief financial officer (our principal accounting officer and principal financial officer), to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of our company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of our company are being made only in accordance with authorizations of management and directors of our company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not provide absolute assurance that a misstatement of our financial statements would be prevented or detected.

Further, the evaluation of the effectiveness of internal control over financial reporting was made as of a specific date, and continued effectiveness in future periods is subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has conducted, with the participation of our president (our principal executive officer) and our chief financial officer (our principal accounting officer and principal financial officer), an evaluation of the effectiveness of our internal control over financial reporting as of April 30, ~~2014~~2015 in accordance with the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control —- Integrated Framework. Based on this assessment, management concluded that as of April 30, ~~2014~~2015, our company’s internal control over financial reporting was effective.

Change in Internal Control Over Financial Reporting

There have been no changes in our internal controls over financial reporting that occurred during the year ended April 30, ~~2014~~2015 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

Item 9B. Other Information

~~On February 1, 2014, Mr~~None. Walter J. Zurawick Jr. resigned as president, chief executive officer, and as a director of our company. Mr. Zurawick’s resignation was not the result of any disagreement with our company regarding our operations, policies, practices or otherwise.

Following Mr. Zurawick’s resignation, Mr. Bashar Amin consented to and was appointed as president and chief executive officer of our company. Mr. Amin will continue to serve as a director of our company.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

All of the directors of our company hold office until the next annual meeting of the stockholders or until their successors have been elected and qualified. Our officers are appointed by our board of directors and hold office until their death, resignation or removal from office. Our directors and executive officers, their ages, positions held, and duration as such, are as follows:


Name	Position Held with the Company	Age	Date First Elected or Appointed
Imad Kamel Yassine	Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director	66	August 14, 2007
Bashar Amin	President, Chief Executive Officer and Director	55	July 16, 2012
Zuhier Ahmed Zahran	Director	56	July 16, 2012

Name	Position Held with the Company	Age	Date First Elected or Appointed
Imad Kamel Yassine	Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director	65	August 14, 2007
Bashar Amin	President, Chief Executive Officer and Director	54	July 16, 2012
Zuhier Ahmed Zahran	Director	55	July 16, 2012

Business Experience

The following is a brief account of the education and business experience of each director and executive officer during at least the past five years, indicating each person’s principal occupation during the period, and the name and principal business of the organization by which he was employed.

Imad Kamel Yassine - Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director

Imad Kamel Yassine was appointed as our chief operating officer on September 18, 2007, as a director of our company on August 14, 2007 and as chief financial officer, secretary and treasurer of our company on September 10, 2008.

Mr. Yassine received a B.S.C. degree in Mechanical Engineering from Alexandria University and is a member of the International Desalination Association. He has been involved in the water and waste water treatment industry for over thirty five years, with extensive experience in waste water recycling and desalination technologies.

In 2003 Mr. Yassine established Enviromatch Inc. and served as its chief executive officer. Enviromatch is a water and waste water treatment consulting company. In 2005 he served as a director of Bauer International Corporation, which designs and manufactures water and waste water treatment systems. In 2005 he worked with Hussey, Gay, Bell & Deyoung Inc. Consulting Engineers. He provided business development and marketing services to identify and qualify potential clients for Hussey, Gay, Bell & Deyoung for water and waste water treatment and desalination. In 2007 he co-founded and served as a director for Enviromatch Co. Ltd. Enviromatch Co. Ltd. is a company specializing in the design and supply of standard and custom water and waste water treatment equipment and solutions. Enviromatch Co. Ltd combines the experience and reputation of American technology and the low cost of Chinese manufacturing and sales knowledge of the Asian market.

Our management and board of directors concluded that Mr. Yassine should serve as a director of our company due to his extensive experience in management, finance, international trade, and manufacturing relating to the waste water treatment industry in addition to extensive knowledge of the U.S. and the international water treatment markets.

Bashar Amin - President, Chief Executive Officer and Director

Bashar Amin was appointed as a director of our company on July 16, 2012 and as our president and chief executive officer on February 1, 2014. Mr. Amin earned his Master of Science in Environmental Engineering at California State University in Fresno, California. He is currently a self-employed environmental engineer providing water and wastewater engineering and operations services to clients around the world with his main focus in the Middle East region.

Mr. Amin also provides management services for cooperation agreements between international companies and their Middle Eastern agents or partners. These services include technical support, proposals, preparation, project management, operation and maintenance, sales and marketing and financial reporting.

Mr. Amin is also a University graduate in Environmental Engineering, Masters of Science in Environmental Engineering, Fresno State University, CA , USA.

38Our management and board of directors have concluded that Mr. Amin should serve as a director of our company due to his extensive experience in management, project development, sales and marketing relating to the waste water treatment industry.

Our management and board of directors have concluded that Mr. Zurawick should serve as a director of our company due to his extensive experience in management, project development, sales and marketing relating to the waste water treatment industry.

Zuhier Ahmed Zahran - Director

Zuhier Ahmed Zahran was appointed as a director of our company on July 16, 2012. Mr. Zahran earned his Bachelor of Science in Civil Engineering from Nottingham University, England. Since 1987 he has been president of ZAZCo, a contracting company and president of the Aluminum Manufacturers & Technicians Factory (Alumatec). From 1980 to 1987 he worked with Fast Contracting Company in various position including project engineer (1980 - 1981); project manager (1982 - 1983), Riyadh area manager (1984 - 1985) and construction manager (1985 - 1987).

Mr. Zahran is also a partner in the Jordanian Saudi Food Services Company, Jordan, Newtek, an electromechanical company in Saudi Arabia, Aluminum Company Ltd. S.A.R.L. in Lebanon, Team Time Company, a labor recruitment company, in Saudi Arabia and Chairman of Square Meter Company, a property development company in Saudi Arabia.

Our management and board of directors have concluded that Mr. Zahran should serve as a director of our company due to his extensive experience in engineering and construction project management, in addition to extensive business experience and knowledge of the Middle East region, including Saudi Arabia and Jordan.

Family Relationships

There are no family relationships among our directors or officers.

Involvement in Certain Legal Proceedings

To the best of our knowledge, none of our directors or executive officers has, during the past ten years:

been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

been found by a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

been 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 (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, 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 any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

been 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.

Section 16(a) Beneficial Ownership Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our executive officers and directors and persons who own more than 10% of a registered class of our equity securities to file with the Securities and Exchange Commission initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our shares of common stock and other equity securities, on Forms 3, 4 and 5, respectively. Executive officers, directors and greater than 10% shareholders are required by the Securities and Exchange Commission regulations to furnish us with copies of all Section 16(a) reports they file. Based solely on our review of the copies of such forms received by us, or written representations from certain reporting persons, we believe that during the year ended April 30, ~~2014~~2015, all filing requirements applicable to its officers, directors and greater than 10% percent beneficial owners were complied with, except for the following:

Name

Number of Late Reports

Number of Transactions Not

Reported on a Timely Basis

Failure to File

Requested Forms

Imad Kamel Yassine(1)

(1) The named officer, director or greater than 10% stockholder, as applicable, filed a late Form 4 - Statement of Changes of Beneficial Ownership of Securities.

The named officer, director or greater than 10% stockholder, as applicable, filed a late Form 4 - Statement of Changes of Beneficial Ownership of Securities.

Audit Committee and Audit Committee Financial Expert

Our board of directors has determined that it does not have a member of its audit committee that qualifies as an “audit committee financial expert” as defined in Item 407(d)(5)(ii) of Regulation S-K, and is “independent” as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as amended.

We believe that the members of our board of directors are collectively capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. We believe that retaining an independent director who would qualify as an “audit committee financial expert” would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development and the fact that we have not generated any material revenues to date. In addition, we currently do not have nominating, compensation or audit committees or committees performing similar functions nor do we have a written nominating, compensation or audit committee charter. Our board of directors does not believe that it is necessary to have such committees because it believes the functions of such committees can be adequately performed by our board of directors.

Code of Ethics

We have adopted a Code of Ethics that apples to, among other persons, our company’s principal executive officers and senior financial executives, as well as persons performing similar functions. As adopted, our Code of Ethics sets forth written to promote:

honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

full, fair, accurate, timely and understandable disclosure in all reports and documents that the Corporation files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Corporation that are within the Senior Officer’s area of responsibility;

compliance with applicable governmental laws, rules and regulations;

the prompt internal reporting of violations of the Code; and

accountability for adherence to the Code.

Our Code of Ethics and Business Conduct was filed with the Securities and Exchange Commission as Exhibit 14.1 to our annual report on Form 10-KSB/A on August 14, 2008. We will provide a copy of the Code of Ethics and Business Conduct to any person without charge, upon request. Requests can be sent to: Bioshaft Water Technology, Inc., ~~111~~222 West ~~Ocean~~6th ~~Blvd~~Street, ~~4th Floor~~#400, ~~Long~~San ~~Beach~~Pedro, CA ~~90802~~90731.

Item 11. Executive Compensation

The particulars of the compensation paid to the following persons:

(a) ~~our principal executive officer;~~

~~(b) each of~~ our ~~two~~principal ~~most highly compensated~~ executive ~~officers who were serving as executive officers at the end of the years ended April 30, 2014 and 2013~~officer; ~~and~~

(~~c) up to two additional individuals for whom disclosure would have been provided under (~~b) but for the fact that the individual was not serving as our executive officer at the end of the years ended April 30, 2014 and 2013, who we will collectively refer to as the named executive officers of our company, are set out in the following summary compensation table, except that no disclosure is provided for any named executive officer, other than our principal executive officers, whose total compensation did not exceed $100,000 for the respective fiscal year:

SUMMARY COMPENSATION TABLE
Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensa-tion ($)	Change in Pension Value and Nonqualified Deferred Compensa-tion Earnings ($)	All Other Compensa-tion ($)	Total ($)
Imad Kamel(1) Yassine Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director	2014 2013	180,000 180,000	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	180,000 180,000
Bashar Amin(2)President, Chief Executive Officer and Director	2014 2013	120,000 120,000	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	120,000 120,000
Zuhier Ahmed Zahran(3) Director	2014 2013	Nil Nil	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	Nil Nil
Walter J. Zurawick, Jr.(4) Former President, Chief Executive Officer and Director	2014 2013	151,000 202,000	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	4,500 N/A	155,500 202,000

each of our two most highly compensated executive officers who were serving as executive officers at the end of the years ended April 30, 2015 and 2014; and

41(c)

up to two additional individuals for whom disclosure would have been provided under (b) but for the fact that the individual was not serving as our executive officer at the end of the years ended April 30, 2015 and 2014, who we will collectively refer to as the named executive officers of our company, are set out in the following summary compensation table, except that no disclosure is provided for any named executive officer, other than our principal executive officers, whose total compensation did not exceed $100,000 for the respective fiscal year:


SUMMARY COMPENSATION TABLE
Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensa-tion ($)	Change in Pension Value and Nonqualified Deferred Compensa-tion Earnings ($)	All Other Compensa-tion ($)	Total ($)
Imad Kamel Yassine (1) Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director	2015 2014	180,000 180,000	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	180,000 180,000
Bashar Amin(2) President, Chief Executive Officer and Director	2015 2014	120,000 120,000	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	120,000 120,000
Zuhier Ahmed Zahran(3) Director	2015 2014	Nil Nil	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	Nil Nil
Walter J. Zurawick, Jr.(4) Former President, Chief Executive Officer and Director	2014	151,000	N/A	N/A	N/A	N/A	N/A	4,500	155,500

(1)

(2)

Bashar Amin was appointed as a director of our company on July 16, 2012 and as president and chief executive of our company on February 1, 2014. As of April 30, 2015, the officer had $174,617 in accrued compensation due.

(3)

Zuhier Ahmed Zahran was appointed as a director of our company on July 16, 2012.

(4)

Walter J. Zurawick, Jr. resigned as our president, chief executive officer and director on February 1, 2014.

Other than as set out below, there are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. Our directors and executive officers may receive share options at the discretion of our board of directors in the future. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that share options may be granted at the discretion of our board of directors.

Outstanding Equity Awards at Fiscal Year End

The particulars of unexercised options, stock that have not vested and equity incentive plan awards for our named executive officers are set out in the following table:


	Options Awards					Stock Awards
Name	Number of Securities Underlying Unexercised Options (#) Exercisable	Number of Securities Underlying Unexercised Options (#) Unexercisable	Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)	Option Exercise Price ($)	Option Expiration Date	Number of Shares or Units of Stock That Have Not Vested (#)	Market Value of Shares or Units of That Have Not Vested ($)	Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Stock Rights That Have Not Vested (#)	Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)
Bashar Amin(1)	1,000,000	-	-	0.15	Aug. 15/16	-	-	-	-

(1) The 1,000,000 options are held indirectly by Bashar Amin, a director of our company, through his company Canadian Environmental Consulting.

The 1,000,000 options are held indirectly by Bashar Amin, a director of our company, through his company Canadian Environmental Consulting.

Stock Option Plan

Stock Options/SAR Grants

On August 15, 2011, we issued 1,000,000 options to Canadian Environmental Consulting, a company controlled by our director, Bashar Amin. The options vest at 83,333 shares per month for a period of 12 months on each monthly anniversary of the date of the option agreement, except that the vested amount of the 12th month of the vesting term shall be 83,337. The option agreement expires on August 1, 2016.

4222

Aggregated Option Exercises in Last Fiscal Year and Fiscal Year-End Values

There were no options exercised during our fiscal year ended April 30, ~~2014~~2015 orand ~~April~~2014 ~~30, 2013~~ by any officer or director of our company.

Outstanding Equity Awards at Fiscal Year End

No equity awards were outstanding as of the year ended April 30, ~~2014~~2015.

Compensation of Directors

We reimburse our directors for expenses incurred in connection with attending board meetings. We have not paid any director’s fees or other cash compensation for services rendered as a director since our inception to April 30, ~~2014~~2015.

We have no formal plan for compensating our directors for their service in their capacity as directors, although such directors are expected in the future to receive stock options to purchase common shares as awarded by our board of directors or (as to future stock options) a compensation committee which may be established. Directors are entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at meetings of our board of directors. Our board of directors may award special remuneration to any director undertaking any special services on our behalf other than services ordinarily required of a director. No director received and/or accrued any compensation for their services as a director, including committee participation and/or special assignments.

Employment Contracts and Termination of Employment and Change in Control Arrangements

~~On February 1, 2014, Mr~~None. Walter J. Zurawick Jr. resigned as President, Chief Executive Officer, and as a director of our company. Mr. Zurawick’s resignation was not the result of any disagreement with our company regarding our operations, policies, practices or otherwise. Subsequent to Mr. Zurawick’s resignation, we entered into a consulting agreement with Walter Zurawick for marketing and business development services. As compensation, we have agreed to pay Mr. Zurawick $5,000 per month, compensation to be payable in arrears with our company’s payroll following the completion of each month during the term and will be prorated on a daily basis for partial months based on a 30 day calendar month. Our company shall also provide Mr. Zurawick with a commission of 3% of gross proceeds we receive from sales leads identified prior to February 1, 2014, or 5% of gross proceeds we receive from sales leads identified after February 1, 2014. Mr. Zurawick shall also be compensated for overhead expenses pursuant to the terms of the agreement. The term of the agreement is effective February 1, 2014 on a month to month basis. The consulting agreement replaces all previous agreements between our company and Mr. Zurawick. On March 28, 2014 Mr. Zurawick resigned from all positions, including the consulting agreement.

Pension, Retirement or Similar Benefit Plans

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. Our directors and executive officers may receive stock options at the discretion of our board of directors in the future. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of our board of directors.

We have no plans or arrangements with respect to remuneration received or that may be received by our executive officers to compensate such officers in the event of termination of employment (as a result of resignation, retirement, change of control) or a change of responsibilities following a change of control, where the value of such compensation exceeds $60,000 per executive officer.

Indebtedness of Directors, Senior Officers, Executive Officers and Other Management

None of our directors or executive officers or any associate or affiliate of our company during the last two fiscal years, is or has been indebted to our company by way of guarantee, support agreement, letter of credit or other similar agreement or understanding currently outstanding.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table sets forth, as of July 2231, ~~2014~~2015, certain information with respect to the beneficial ownership of our common stock by each stockholder known by us to be the beneficial owner of more than 5% of our common stock and by each of our current directors and executive officers. Each person has sole voting and investment power with respect to the shares of common stock, except as otherwise indicated. Beneficial ownership consists of a direct interest in the shares of common stock, except as otherwise indicated.

Name and Address of Beneficial Owner	Title of Class	Amount and Nature of Beneficial Ownership	Percentage of Class(1)
Imad Kamel Yassine1726 Mulberry DriveSan Marcos, CA 92069	Common Shares	20,000,000(2)	18.11%
Bashar Amin5385 Bessborough Crt.Mississauga, ON, Canada L5M 5C5	Common Shares	6,000,000(3)(4)(5)	5.43%
Zuhier Ahmed ZahranPO Box 17919Jeddah 21494, Saudi Arabia	Common Shares	4, 150,000(6)(7)	3.76 %
All Officers and Directors As a Group	Common Shares	30,150,000	27.31%

(1)


Name and Address of Beneficial Owner	Title of Class	Amount and Nature of Beneficial Ownership	Percentage of Class⁽¹⁾
Imad Kamel Yassine 1726 Mulberry Drive San Marcos, CA 92069	Common Shares	20,000,000⁽²⁾	16.86%
Bashar Amin 5385 Bessborough Crt. Mississauga, ON, Canada L5M 5C5	Common Shares	6,000,000^(3)(4)(5)	5.90%
Zuhier Ahmed Zahran PO Box 17919 Jeddah 21494, Saudi Arabia	Common Shares	4, 150,000⁽⁶⁾⁽⁷⁾	3.50 %
*All Officers and Directors As a Group*	*Common Shares*	*30,150,000*	*26.26%*

(1) Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the number of shares of common stock actually outstanding on July 2231, ~~2014~~2015. As of July 2231, ~~2014~~2015, there were ~~110~~117,~~411~~611,170 shares of our company’s common stock issued and outstanding.

(2) Imad Kamel Yassine was appointed as our chief operating officer on September 18, 2007, as a director of our company on August 14, 2007 and as chief financial officer, secretary and treasurer of our company on September 10, 2008.

~~Imad~~(3) Bashar ~~Kamel~~Amin ~~Yassine~~ was appointed as ~~our chief operating officer on September 18, 2007, as~~ a director of our company on ~~August~~July 1416, ~~2007~~2012 and as ~~chief~~president ~~financial officer, secretary~~ and ~~treasurer~~chief executive of our company on ~~September~~February 101, ~~2008~~2014.

(34) Includes options to acquire 1,000,000 shares of common stock of our company by Canadian Environmental Consulting within 60 days.

(5) Bashar Amin ~~was~~has ~~appointed~~sole asvoting ~~a director of our company on July 16, 2012~~ and asinvestment ~~president~~control ~~and~~over ~~chief~~Canadian ~~executive~~Environmental ~~of our company on February 1, 2014~~Consulting.

(46) Zuhier Ahmed Zahran was appointed as a director of our company on July 16, 2012.

(7) Includes ~~options to acquire 1~~150,000~~,000~~ shares of common stock ofheld ~~our~~indirectly ~~company~~ by ~~Canadian~~Zuhier ~~Environmental~~Ahmed ~~Consulting~~Zahran ~~within~~in 60the ~~days~~name of Meshary Zuhier Zahran.

(5)

Bashar Amin has sole voting and investment control over Canadian Environmental Consulting.

(6)

Zuhier Ahmed Zahran was appointed as a director of our company on July 16, 2012.

(7)

Includes 150,000 shares of common stock held indirectly by Zuhier Ahmed Zahran in the name of Meshary Zuhier Zahran.

Changes in Control

We are unaware of any contract or other arrangement or provisions of our Articles or Bylaws the operation of which may at a subsequent date result in a change of control of our company. There are not any provisions in our Articles or Bylaws, the operation of which would delay, defer, or prevent a change in control of our company.

On July 1, 2013, we entered into a consulting agreement with Canadian Environmental Designers Inc., a company operated by our director, Bashir Amin, to assist our company in marketing, sales and business development. Under the terms of the consulting agreement, Canadian Environmental Designers Inc. shall be paid by our company as per direct costs to the projects being worked on. Additionally special pre-approved expenses are invoiced and paid by our company within 30 days. The term of the consulting agreement is through June 30, 2014. Our company is currently in the process of renewing this agreement.

Except as disclosed herein, there have been no transactions or proposed transactions in which the amount involved exceeds the lesser of $120,000 or one percent of the average of our total assets at year-end for the last three completed fiscal years in which any of our directors, executive officers or beneficial holders of more than 5% of the outstanding shares of our common stock, or any of their respective relatives, spouses, associates or affiliates, has had or will have any direct or material indirect interest.

The promoters of our company are our directors and officers.

Director Independence

We currently act with three directors, consisting of Imad Kamel Yassine, Bashar Amin and Zuhier Ahmed Zahran. We have determined that none of our directors are “independent directors” as defined in NASDAQ Marketplace Rule 4200(a)(15).

We do not have a standing audit, compensation or nominating committee, but our entire board of directors act in such capacity. We believe that our directors are capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. Our directors do not believe that it is necessary to have an audit committee because we believe that the functions of an audit committee can be adequately performed by the board of directors. In addition, we believe that retaining additional independent directors who would qualify as an “audit committee financial expert” would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development.

45Item 14. Principal Accountants Fees and Services

~~Item~~The ~~14.~~aggregate fees billed for the most recently completed fiscal year ended April 30, 2015 and for fiscal year ended April 30, 2014 for professional services rendered by the principal accountant for the audit of our annual financial statements and review of the financial statements included in our quarterly reports on Form 10-Q and services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for these fiscal periods were as follows:

Principal Accountants Fees and Services


	Year Ended April 30,
	2015 ($)	2014 ($)
Audit Fees	29,400	25,000
Audit Related Fees	Nil	10,800
Tax Fees	Nil	Nil
All Other Fees	Nil	Nil
Total	29,400	35,800

~~The~~Our ~~aggregate~~board ~~fees~~of ~~billed~~directors ~~for~~pre-approves ~~the~~all ~~most recently completed fiscal year ended April 30, 2014 and for fiscal year ended April 30, 2013 for professional~~ services ~~rendered~~provided by ~~the principal accountant for the audit of~~ our ~~annual~~independent ~~financial~~auditors. ~~statements~~All ~~and review~~ of the ~~financial~~above ~~statements~~services ~~included~~and infees ~~our~~were ~~quarterly~~reviewed ~~reports on Form 10-Q~~ and ~~services~~approved ~~that are normally provided~~ by the ~~accountant~~board inof ~~connection~~directors ~~with~~either ~~statutory~~before ~~and regulatory filings~~ or ~~engagements~~after ~~for~~the ~~these~~respective ~~fiscal~~services ~~periods~~ were ~~as follows:~~ rendered.

	Year Ended April 30,
	2014 ($)	2013 ($)
Audit Fees	25,000	17,000
Audit Related Fees	10,800	9,000
Tax Fees	Nil	Nil
All Other Fees	Nil	Nil
Total	35,800	26,000

Our board of directors has considered the nature and amount of fees billed by our independent auditors and believes that the provision of services for activities unrelated to the audit is compatible with maintaining our independent auditors’ independence.

Our board of directors pre-approves all services provided by our independent auditors. All of the above services and fees were reviewed and approved by the board of directors either before or after the respective services were rendered.25

~~Our~~PART board of directors has considered the nature and amount of fees billed by our independent auditors and believes that the provision of services for activities unrelated to the audit is compatible with maintaining our independent auditors’ independence.IV

~~PART~~Item IV15. Exhibits, Financial Statement Schedules

~~Item~~(a) Financial ~~15.~~Statements

~~Exhibits, Financial Statement Schedules~~(1)

~~(a)~~ Financial ~~Statements~~statements for our company are listed in the index under Item 8 of this document.

(12)

~~Financial~~All ~~statements~~financial ~~for~~statement ~~our~~schedules ~~company~~are omitted because they are ~~listed~~not inapplicable, not material or the ~~index~~required ~~under~~information ~~Item~~is 8shown ofin ~~this~~the ~~document~~financial statements or notes thereto.

(2b)

~~All financial statement schedules are omitted because they are not applicable, not material or the required information is shown in the financial statements or notes thereto.~~Exhibits

(b) Exhibits


Exhibit Number	Description
(3)	Articles of Incorporation and Bylaws
3.1	Articles of Incorporation (incorporated by reference from our Registration Statement on Form SB-2 filed on June 13, 2006)
3.2	By-laws (incorporated by reference from our Registration Statement on Form SB-2 filed on June 13, 2006)
3.3	Certificate of Amendment (incorporated by reference from our Current Report on Form 8-K filed on August 6, 2007)
3.4	Articles of Merger filed with the Secretary of State of Nevada on September 24, 2007 and which is effective September 28, 2007 (incorporated by reference from our Current Report on Form 8- K filed on September 28, 2007)
(10)	Material Contracts
10.1	Asset Purchase Agreement dated September 18, 2007 between Hans Bio Shaft Limited, Hassan Hans Badreddine and our company (incorporated by reference from our Current Report on Form 8-K filed on September 24, 2007)
10.2	Patent Assignment Agreement dated September 18, 2007 between Hans Bio Shaft Limited and our company (incorporated by reference from our Current Report on Form 8-K filed on September 24, 2007)
10.3	Stock Option Plan of our company dated December 15, 2007 (incorporated by reference from our Quarterly Report on Form 10-QSB filed on March 17, 2008)
10.4	Loan Agreement made as of August 6, 2008 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference from our Quarterly Report on Form 10-Q filed on September 12, 2008)
10.5	Form of Promissory Note made as of August 6, 2008 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Current Report on Form 8-K filed on August 19, 2008)
10.6	General Security Agreement made as of August 6, 2008 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Current Report on Form 8-K filed on August 19, 2008)
10.7	Loan Agreement made as of March 6, 2009 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 14, 2012)
10.8	Form of Promissory Note Agreement made as of March 6, 2009 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on December 16, 2013)
10.9	General Security Agreement made as of March 6, 2009 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on December 16, 2013)
10.10	Stock Option Agreement made as of August 15, 2011 between our company and Canadian Environmental Consulting (incorporated by reference from our Quarterly Report on Form 10-Q filed on September 19, 2011)

Exhibit Number	Description
(3)	Articles of Incorporation and Bylaws
3.1	Articles of Incorporation (incorporated by reference from our Registration Statement on Form SB-2 filed on June 13, 2006)
3.2	By-laws (incorporated by reference from our Registration Statement on Form SB-2 filed on June 13, 2006)
3.3	Certificate of Amendment (incorporated by reference from our Current Report on Form 8-K filed on August 6, 2007)
3.4	Articles of Merger filed with the Secretary of State of Nevada on September 24, 2007 and which is effective September 28, 2007 (incorporated by reference from our Current Report on Form 8- K filed on September 28, 2007)


Exhibit Number	Description
10.11	Amending Agreement dated February 23, 2012 between our company and Premier Financial Marketing Co. Ltd. (incorporated by reference from our Current Report on Form 8-K filed on March 7, 2012)
10.12	Assignment Agreement made as of February 23, 2012 between our company and Six Capital Limited (incorporated by reference from our Current Report on Form 8-K filed on March 7, 2012)
10.13	Non-Disclosure Agreement made as of July 1, 2012 between our company and Canadian Environmental Designers, Inc. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 14, 2012)
10.14	International Distribution Agreement made as of October 15, 2012 between our company and Zuhier Ahmad Zahran & Co. (incorporated by reference to our Quarterly Report on Form 10-Q filed on December 21, 2012)
10.15	Consulting Agreement made as of July 1, 2013 between our company and Hydro E+, LLC (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 23, 2013)
10.16	Consulting Agreement made as of July 1, 2013 between our company and Canadian Environmental Designers, Inc. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 23, 2013)
10.17	Consulting Agreement made as of February 1, 2014 between our company and Walter Zurawick (incorporated by reference to our Quarterly Report on Form 10-Q filed on March 14, 2014)
10.18	Consulting Agreement made as of February 1, 2014 between our company and Sustainable Water Corp. (incorporated by reference to our Quarterly Report on Form 10-Q filed on March 14, 2014)
10.19	Loan Agreement dated July 7, 2014 between our company and Six Capital Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 15, 2014)
10.20	Promissory Note dated July 7, 2014 between our company and Six Capital Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 15, 2014)
10.21	General Security Agreement dated July 7, 2014 between our company and Six Capital Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 15, 2014)
10.22	Promissory Note dated July 23, 2014 between our company and Sustainable Water Corp. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 15, 2014)
10.23	Promissory Note dated July 25, 2014 between our company and Sustainable Water Corp. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 15, 2014)
(14)	Code of Ethics
14.1	Code of Ethics and Business Conduct dated effective July 1, 2008 (incorporated from our Annual Report on Form 10-KSB/A filed on August 14, 2008)
(31)	Rule 13a-14(a)/15d-14(a) Certifications
31.1*	Section 302 Certification under Sarbanes-Oxley Act of 2002 of Principal Executive Officer
31.2*	Section 302 Certification under Sarbanes-Oxley Act of 2002 of Principal Financial Officer and Principal Accounting Officer
(32)	Section 1350 Certifications
32.1*	Section 906 Certification under Sarbanes-Oxley Act of 2002 of Principal Executive Officer
32.2*	Section 906 Certification under Sarbanes-Oxley Act of 2002 of Principal Financial Officer and Principal Accounting Officer
(101)**	Interactive Data File
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

Exhibit Number	Description
(10)	Material Contracts
10.1	Asset Purchase Agreement dated September 18, 2007 between Hans Bio Shaft Limited, Hassan Hans Badreddine and our company (incorporated by reference from our Current Report on Form 8-K filed on September 24, 2007)
10.2	Patent Assignment Agreement dated September 18, 2007 between Hans Bio Shaft Limited and our company (incorporated by reference from our Current Report on Form 8-K filed on September 24, 2007)
10.3	Stock Option Plan of our company dated December 15, 2007 (incorporated by reference from our Quarterly Report on Form 10-QSB filed on March 17, 2008)
10.4	Loan Agreement made as of August 6, 2008 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference from our Quarterly Report on Form 10-Q filed on September 12, 2008)
10.5	Form of Promissory Note made as of August 6, 2008 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Current Report on Form 8-K filed on August 19, 2008)
10.6	General Security Agreement made as of August 6, 2008 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Current Report on Form 8-K filed on August 19, 2008)
10.7	Loan Agreement made as of March 6, 2009 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 14, 2012)
10.8	Form of Promissory Note Agreement made as of March 6, 2009 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on December 16, 2013)
10.9	General Security Agreement made as of March 6, 2009 between our company and Premier Financial and Marketing Co. Ltd. (incorporated by reference to our Quarterly Report on Form 10-Q filed on December 16, 2013)
10.10	Stock Option Agreement made as of August 15, 2011 between our company and Canadian Environmental Consulting (incorporated by reference from our Quarterly Report on Form 10-Q filed on September 19, 2011)
10.11	Amending Agreement dated February 23, 2012 between our company and Premier Financial Marketing Co. Ltd. (incorporated by reference from our Current Report on Form 8-K filed on March 7, 2012)
10.12	Assignment Agreement made as of February 23, 2012 between our company and Six Capital Limited (incorporated by reference from our Current Report on Form 8-K filed on March 7, 2012)
10.13	Non-Disclosure Agreement made as of July 1, 2012 between our company and Canadian Environmental Designers, Inc. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 14, 2012)
10.14	International Distribution Agreement made as of October 15, 2012 between our company and Zuhier Ahmad Zahran & Co. (incorporated by reference to our Quarterly Report on Form 10-Q filed on December 21, 2012)
10.15	Consulting Agreement made as of July 1, 2013 between our company and Hydro E+, LLC (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 23, 2013)

47Filed herewith.

Exhibit Number	Description
10.16	Consulting Agreement made as of July 1, 2013 between our company and Canadian Environmental Designers, Inc. (incorporated by reference to our Quarterly Report on Form 10-Q filed on September 23, 2013)
10.17	Consulting Agreement made as of February 1, 2014 between our company and Walter Zurawick (incorporated by reference to our Quarterly Report on Form 10-Q filed on March 14, 2014)
10.18	Consulting Agreement made as of February 1, 2014 between our company and Sustainable Water Corp. (incorporated by reference to our Quarterly Report on Form 10-Q filed on March 14, 2014)
(14)	Code of Ethics
14.1	Code of Ethics and Business Conduct dated effective July 1, 2008 (incorporated from our Annual Report on Form 10-KSB/A filed on August 14, 2008)
(31)	Rule 13a-14(a)/15d-14(a) Certifications
31.1*	Section 302 Certification under Sarbanes-Oxley Act of 2002 of Principal Executive Officer
31.2*	Section 302 Certification under Sarbanes-Oxley Act of 2002 of Principal Financial Officer and Principal Accounting Officer
(32)	Section 1350 Certifications
32.1*	Section 906 Certification under Sarbanes-Oxley Act of 2002 of Principal Executive Officer
32.2*	Section 906 Certification under Sarbanes-Oxley Act of 2002 of Principal Financial Officer and Principal Accounting Officer
(101)**	Interactive Data File
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of any registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections.

~~Filed herewith.~~27

**SIGNATURES

~~Furnished~~In ~~herewith.~~accordance ~~Pursuant~~with toSection ~~Rule~~13 ~~406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed~~ or ~~part~~15(d) of ~~any registration statement or prospectus for purposes of Sections 11 or 12 of~~ the ~~Securities~~Exchange Act, ofthe ~~1933,~~registrant ~~are~~caused ~~deemed~~this ~~not~~report ~~filed~~to ~~for~~be ~~purposes~~signed ofon ~~Section~~its 18behalf ofby the ~~Securities and Exchange Act of 1934~~undersigned, ~~and~~thereunto ~~otherwise~~duly ~~are not subject to liability under those sections~~authorized.


	BIOSHAFT WATER TECHNOLOGY, INC.

Date: August 13, 2015	/s/ Bashar Amin
	Bashar Amin
	President, Chief Executive Officer and Director
	(Principal Executive Officer)

Date: August 13, 2015	/s/ Imad Kamel Yassine
	Imad Kamel Yassine
	Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director
	(Principal Financial Officer and Principal Accounting Officer)

~~SIGNATURES~~Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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


Date: August 13, 2015	/s/ Bashar Amin
	Bashar Amin
	President, Chief Executive Officer and Director
	(Principal Executive Officer)

Date: August 13, 2015	/s/ Imad Kamel Yassine
	Imad Kamel Yassine
	Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director
	(Principal Financial Officer and Principal Accounting Officer)

Date: August 13, 2015	/s/ Zuhier Ahmed Zahran
	Zuhier Ahmed Zahran
	Director

	BIOSHAFT WATER TECHNOLOGY, INC.
Date: August 20, 2014	/s/ Bashar Amin
	Bashar Amin
	President, Chief Executive Officer and Director
	(Principal Executive Officer)
Date: August 20, 2014	/s/ Imad Kamel Yassine
	Imad Kamel Yassine
	Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director
	(Principal Financial Officer and Principal Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: August 20, 2014	/s/ Bashar Amin
	Bashar Amin
	President, Chief Executive Officer and Director
	(Principal Executive Officer)
Date: August 20, 2014	/s/ Imad Kamel Yassine
	Imad Kamel Yassine
	Chief Operating Officer, Chief Financial Officer, Secretary, Treasurer and Director
	(Principal Financial Officer and Principal Accounting Officer)
Date: August 20, 2014	/s/ Zuhier Ahmed Zahran
	Zuhier Ahmed Zahran
	Director

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