UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~July~~January 31, ~~2013~~2014

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File No. 000-50493

SAFEBRAIN SYSTEMS, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware		98-0412431
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
100-224 11th Avenue S.W. Calgary, Alberta, Canada		T2R 0C3
1600 - 144 4 Avenue SW Calgary, Alberta, Canada		T2P 3N4
(Address of Principal Executive Offices)		(Zip Code)

(~~403~~587) ~~801~~702-~~1506~~5809

(Registrant’s Telephone Number Including Area Code)

ALVERON ENERGY CORP.

(Former Name, Address and Fiscal Year, if Changed Since Last Report)

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

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

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.

Larger accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	x

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 6365,~~583~~597,~~258~~988 shares outstanding as of ~~September~~March 2321, ~~2013~~2014.

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements.

SAFEBRAIN SYSTEMS, INC. (formerly Alveron Energy Corp.) (A Development Stage Company) CONSOLIDATED BALANCE SHEETS As of ~~JULY~~JANUARY 31, ~~2013~~2014 and OCTOBER 31, ~~2012~~2013

	July 31, 2013			October 31, 2012
	January 31, 2014			October 31, 2013
	(unaudited)			(restated)
ASSETS
Current Assets:
Cash and cash equivalents	$	~~960~~158,259		$	224,~~103~~789
Total Current Assets		960			2,103
GST/HST refund receivable		9,972			4,510
Other Long Term Assets
Total Current Assets		168,231			29,299
Taxes Receivable		23,993			21,480
Total Assets	$	168,231		$	29,299
Total Long Term Assets		23,993			21,480
Total Assets	$	24,953		$	23,583
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Payable to vendor on asset acquisition	$	~~290~~300,~~041~~000		$	300,000
Accounts payable and accrued liabilities		~~375~~132,~~699~~429			94200,~~537~~469
Related party note		~~129~~708,~~218~~813			~~104~~499,~~617~~702
Liabilities from Discontinued Operations		414,699			~~459~~414,~~170~~699
Total Current Liabilities		1,~~209~~555,~~657~~941			~~958~~1,~~324~~414,870
Total Liabilities		1,~~209~~555,~~657~~941			~~958~~1,~~324~~414,870
STOCKHOLDERS' DEFICIT
Capital stock - $.001 par value, 250,000,000 common shares authorized, 63,583,258 and 62,583,258 common shares outstanding as of October 31, 2012 and 2011, respectively		63,583			62,583
Capital stock - $.001 par value, 100,000,000 common shares authorized, 65,597,988 and 65,431,321 common shares outstanding as of January 31, 2014 and October 31, 2013 respectively.		65,598			65,431
Stock payable		274,463			-
Additional paid in capital		2,276,185			2,061,277
Additional paid in capital		1,788,661			1,686,662
Other comprehensive income		6,813			2,959
Deficit accumulated during the development stage		(3,~~311~~736,~~411~~306	)		(23,~~683~~515,~~986~~238	)
Total Stockholders' Deficit		(1,~~184~~387,~~704~~710	)		(~~934~~1,~~741~~385,571	)
Total Liabilities and Total Stockholders' Deficit	$	24168,~~953~~231		$	2329,~~583~~299

The accompany notes are integral part of these consolidated financial statements.

SAFEBRAIN SYSTEMS INC. (formerly Alveron Energy Corp.)

(A Development Stage Company)

~~Unaudited~~ STATEMENTS OF OPERATIONS ~~For the Three and Nine Months Ended July 31, 2013 and 2012, and Cumulative from November 18, 2003 (Date of Inception) Through July 31, 2013~~

									November 18, 2003
	Three Months		Three Months		Nine Months		Nine Months		(Date of Inception)
	Ended		Ended		Ended		Ended		Through
	July 31,		July 31,		July 31,		July 31,		July 31,
	2013		2012		2013		2012		2013
Revenues	$	-		-		-		-		-
Expenses
Consulting Expense		269,712		522,240		310,243		522,240		999,342
Professional fees		56,994		55,190		115,263		75,335		308,980
Office and Administrative		55,664		226,418		64,759		234,025		198,476
Travel and vehicle		18,424		-		38,429		-		124,017
Foreign currency translation		-		111		-		111		2,766
Total Operating Expenses		400,794		803,737		528,694		831,489		1,633,581
Other income (expense)
Loss on debt conversion		-		-		63,000		-		63,000
Impairment		-		-		-		-		900,000
Interest	$	11,986		19,111		35,731		32,227		124,930
Loss from Continued Operations		11,986		19,111		98,731		32,227		1,087,930
Net Loss		412,780		822,848		627,425		863,716		2,721,511
Loss from Discontinued Operations		-		-		-		-		589,900
Adjusted Net Loss		412,780		822,848		627,425		863,716		3,311,411
Loss per Common Share - Basic and Diluted - Continuing Operations		0.01		0.02		0.01		0.01
Loss per Common Share - Basic and Diluted - Discontinued Operations		0.00		0.00		0.00		0.00
Loss per Common Share - Basic and Diluted - Total	$	0.01		0.02		0.01		0.02
Weighted average number of shares outstanding during the periods basic and diluted		63,583,258		52,825,185		63,583,258		55,473,333

For the Three Ended January 31, 2014 and 2013, and Cumulative from November 18, 2003

(Date of Inception) Through January 31, 2014

(unaudited)

	Three Months Ended January 31,			Three Months Ended January 31,			November 18, 2003 (Date of Inception) Through January 31,
	2014			2013			2014

Revenues	$	-			-			-

Expenses
Consulting Expense		99,323			20,092			1,185,286
Professional fees		69,927			8,780			401,801
Office and Administrative		19,889			1,766			296,198
Travel and vehicle		4,863			1,772			130,075

Total Operating Expenses		194,002			32,410			2,013,360

Other income (expense)
Loss on debt conversion		-			-			(63,000	)
Impairment Expense		-			-			(900,000	)
Interest Expense	$	(27,066	)		(11,513	)		(170,046	)
Loss from Continued Operations		(27,066	)		(11,513	)		(1,133,046	)

Net Loss		221,068			43,923			3,146,406

Loss from Discontinued Operations		-			-			589,900
Adjusted Net Loss		221,068			43,923			3,736,306

Loss per Common Share - Basic and Diluted - Continuing Operations		0.00			0.00
Loss per Common Share - Basic and Diluted - Discontinued Operations		0.00			0.00
Loss per Common Share - Basic and Diluted - Total	$	0.00			0.00

Weighted average number of shares outstanding during the periods basic and diluted		65,590,742			62,583,258

The accompany notes are integral part of these consolidated financial statements.

SAFEBRAIN SYSTEMS INC. (formerly Alveron Energy Corp.) (A Development Stage Company) ~~Unaudited~~ CONSOLIDATED STATEMENTS OF CASH FLOWS For the ~~Nine~~Three Months Ended ~~July~~January 31, ~~2013~~2014 and ~~2012~~2013, and Cumulative from November 18, 2003 (Date of Inception) Through ~~July~~January 31, ~~2013~~2014 (unaudited)

							November 18, 2003
	Three Months			Three Months			November 18, 2003 (Date of Inception)
	Nine Months			Nine Months			(Date of Inception)
	Ended			Ended			Through
	July 31,			July 31,			July 31,
	January 31,			January 31,			January 31,
	2013			2012			2013
	2014			2013			2014
Cash Flows from Operating Activities
Net (loss) earnings	$	(~~627~~221,~~425~~068	)	$	(~~863~~43,~~716~~923	)	$	(3,~~311~~736,~~411~~306	)
Adjustments to reconcile net loss to net cash used by Operating activities:
Adjustments to reconcile net loss to net cash used by
Operating activities:
Common stock issued for services		-			-			30,000
Loss on conversion of debt		~~63,000~~-			-			63,000
Impairment expense		-			-			900,000
Imputed interest		-			-			369
Interest accrued on convertible note		-			-			5,851
Loss on discontinued operations		-			-			545,964
Repayment in excess of lending		-			-			5,000
Changes in operating assets and liabilities:
Other receivable		(25,~~513~~462	)		(~~16,256~~473	)		(239,~~993~~972	)
Accounts payable and accrued liabilities		266,730			82,485			662,598
Bank overdraft		(2,391	)		-			(2,391	)
Accounts payable and accrued liabilities		83,819			19,662			581,150
Payable to vendor on assets acquisition		-			-			(300,000	)
Net cash used in continuing operating activities		(~~300~~145,~~208~~102	)		(~~797~~24,~~487~~734	)		(1,~~422~~917,~~620~~335	)
Net cash used in discontinued operating activities		-			-			(44,206	)
Cash flows used in operating activities		(~~300~~145,~~208~~102	)		(~~797~~24,~~487~~734	)		(1,~~466~~961,~~826~~541	)
Cash Flows from Investing Activities
Acquisition of assets		-			~~(602,041~~-	)		(600,000	)
Discontinued investing activities		-			-			(501,758	)
Cash used for investing activities		-			~~(602,041~~-	)		(1,101,758	)
Cash Flows from Financing Activities
Proceeds from convertible note		-			-			6,000
Repayment of note		-			~~(217,712~~-	)		(338,640	)
Proceeds from sale of common stock and warrants		274,463			1,266,488			1,802,151
Proceeds from sale of common stock		25,000			-			1,827,151
Advances from related party		~~202~~337,~~669~~622			~~354~~32,~~294~~811			1, ~~250~~998,~~622~~145
Principal payments in debt from related party		(~~178~~87,~~067~~904	)		-(8,077	)		(~~178~~305,~~067~~389	)
Stockholder contributions		-			-			37,199
Net cash used in continuing financing activities		~~299~~274,~~065~~718			124,~~403,070~~734			23,~~579~~224,~~265~~466
Net cash provided by discontinued financing activities		-			-			(9,721	)
Cash flows provided by financing activities		~~299~~274,~~065~~718			124,~~403,070~~734			23,~~569~~214,~~544~~745
Net (Decrease) Increase in Cash		(1,143	)		3,542			960
FX Currency Translation		3,854			-			6,813
Cash and Cash Equivalents beginning of period		2,103			109			-
Net (Decrease) Increase in Cash		133,470			-			158,259
Cash and Cash Equivalents end of period	$	960		$	3,651		$	960
Cash and Cash Equivalents beginning of period		24,789			2,103			-
Cash and Cash Equivalents end of period	$	158,259		$	2,103		$	158,259
NON-CASH ACTIVITIES
Payable for Safebrain Technology	$	-		$	297,959		$	297,959
Forgiveness of related party debt	$	40,607		$	-		$	223,079
Supplemental Cash Flow Information
Accrued interest waived by related party	$	149,468		$	-		$	149,468
Interest paid		-			-			-
Income taxes paid		-			-			-

The accompany notes are integral part of these consolidated financial statements.

SAFEBRAIN SYSTEMS INC. ~~(formerly Alveron Energy Corp.)~~

(formerly Alveron Energy Corp.)

(A DEVELOPMENT STAGE COMPANY)

Notes to Interim Financial Statements

~~July~~January 31, 2013

Unaudited

1.	History and Organization

Modena I, Inc. was a development stage company which was incorporated under the laws of the State of Delaware on November 18, 2003. From inception to September 2007, the Company was focused on providing a vehicle for a foreign or domestic non-public company to become an SEC reporting (publicly-traded) company. To this end, we intended to locate and negotiate with a business entity for the combination of that target company with the Company.

On April 12, 2010, the Board of Directors of Modena I, Inc. (the “Company”) filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of Delaware changing the Company’s name to Alveron Energy Corp.

On April 20, 2012, the Company underwent a change of control where the former President and Director of the Company sold 39,900,000 common shares to a company controlled by the current President and Director of the Company.

On May 14, 2012, the Company acquired 100% of SafeBrain System (“SafeBrain”) from Rod Newlove for $900,000. Safebrain is a corporation duly organized, validly existing, and in good standing under the laws of Saskatchewan, Canada. Following payment, Newlove transferred all rights to SafeBrain System to the Company.

On July 11, 2012, the Company changed its name to Safebrain Systems, Inc.

2.	Going Concern Assumption

These accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company has a working capital deficit of $1,~~208~~387,~~697~~710 as of ~~July~~January 31, ~~2013~~2014 and has no current revenue stream. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company's ability to continue as a going concern is also contingent upon its ability to complete certain capital formation activities and generate working capital operations in the future. Management's plan in this regard is to secure additional funds through equity financing activities, and from loans made by the Company's stockholder.

The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the inability of the Company to continue as a going concern.

3.	Basis of Presentation

The Company has not earned any revenues from limited principal operations and accordingly, the Company's activities have been accounted for as those of a "Development Stage Enterprise" as set forth in FASB Pronouncements. Among the disclosures required are that the Company's financial statements be identified as those of a development stage company, and that the statements of operation, stockholders' deficit and cash flows disclose activity since the date of the Company's inception.

4.	Principles of Consolidation

The accounts of all of our wholly-owned subsidiaries are included in the consolidation of these financial statements from the date of acquisition. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company has consolidated the joint venture as discussed in note 9 below until October 31, 2011. The Company recorded net income attributable to non-controlling interest in the consolidated statements of operations for any non-owned portion of its consolidated subsidiary. Non-controlling interest being accounted for in owners’ equity on the consolidate balance sheet.

5.	Summary of Significant Accounting Policies

The accounting policies of the Company are in accordance with US GAAP, and their basis of application is consistent with that of the previous year. Outlined below are those policies considered particularly significant:

a)	Fair Value of Financial Instruments

The Company adopted ASC No. 820-10 (ASC 820-10), Fair Value Measurements. ASC 820-10 relates to financial assets and financial liabilities.

ASC 820-10 defines fair value, establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (GAAP), and expands disclosures about fair value measurements. The provisions of this standard apply to other accounting pronouncements that require or permit fair value measurements and are to be applied prospectively with limited exceptions.

ASC 820-10 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. This standard is now the single source in GAAP for the definition of fair value, except for the fair value of leased property. ASC 820-10 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions, about market participant assumptions that are developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820-10 are described below:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company’s financial instruments consist principally of cash, accounts payable, accrued liabilities, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

b)	Income Taxes

The Company had adopted Accounting Standard Codification subtopic 740-10, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. As of October 31, ~~2012~~2013, a deferred tax asset (which arises solely as a result of net operating losses), has been entirely offset by a valuation reserve due the uncertainty that this asset will be realized in the future.

c)	Earnings or Loss Per Share

The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.

d)	Use of Estimates

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

e)	Cash and Cash Equivalents

For the purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of October 31, 2012 and 2011, there were no cash equivalents.

f)	Impairment of Long-Lived Assets

In accordance with ASC 360, Property Plant and Equipment, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

g)	Recent Accounting Pronouncements

In ~~October~~July ~~2012~~2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) ~~2012~~No. 2013-~~04,~~11: ~~ÒTechnical~~Presentation ~~Corrections~~of ~~and~~an ~~ImprovementsÓ~~Unrecognized inTax ~~Accounting~~Benefit ~~Standards~~When ~~Update~~a ~~No.~~Net ~~2012-04.~~Operating ~~The~~Loss ~~amendments~~Carryforward, ~~in this update cover~~ a ~~wide~~Similar ~~range~~Tax ofLoss, ~~Topics~~or ina ~~the~~Tax ~~Accounting~~Credit ~~Standards~~Carryforward ~~Codification~~Exists. ~~These~~The ~~amendments~~new ~~include~~guidance ~~technical~~requires ~~corrections~~that ~~and~~unrecognized ~~improvements~~tax tobenefits ~~the~~be ~~Accounting~~presented ~~Standards~~on ~~Codification~~a ~~and~~net ~~conforming~~basis ~~amendments~~with ~~related~~the todeferred ~~fair~~tax ~~value~~assets ~~measurements.~~for ~~The~~such ~~amendments~~carryforwards. inThis ~~this~~new ~~update~~guidance ~~will~~is be effective for fiscal years and interim periods within those years beginning after December 15, ~~2012~~2013. ~~The~~We ~~adoption~~do ofnot ~~ASU~~expect ~~2012-04~~the isadoption ~~not~~of ~~expected~~the new provisions to have a material impact on our financial ~~position~~condition or results of operations.

In ~~August~~February ~~2012~~2013, ~~the~~ FASB issued ASU ~~2012~~No. 2013-0302, ~~ÒTechnical~~Comprehensive ~~Amendments~~Income ~~and~~(Topic ~~Corrections~~220): toReporting ~~SEC~~of ~~Sections:~~Amounts ~~Amendments~~Reclassified toOut ~~SEC~~of ~~Paragraphs~~Accumulated ~~Pursuant~~Other Comprehensive Income , to ~~SEC~~improve ~~Staff~~the ~~Accounting~~transparency ~~Bulletin~~of ~~(SAB)~~reporting Nothese reclassifications. ~~114,~~Other ~~Technical~~comprehensive ~~Amendments~~income ~~Pursuant~~includes togains ~~SEC~~and ~~Release~~losses Nothat are initially excluded from net income for an accounting period. ~~33-9250,~~Those gains and ~~Corrections~~losses ~~Related~~are tolater ~~FASB~~reclassified ~~Accounting~~out ~~Standards~~of ~~Update~~accumulated ~~2010-22~~other ~~(SEC~~comprehensive ~~Update)Ó~~income into net income. The amendments in ~~Accounting~~the ~~standards~~ASU ~~Update~~do ~~No.~~not ~~2012-03.~~change ~~This~~the ~~update~~current ~~amends~~requirements ~~various~~for ~~SEC~~reporting ~~paragraphs~~net ~~pursuant~~income toor ~~the~~other ~~issuance~~comprehensive ofincome ~~SAB~~in ~~No.~~financial ~~114~~statements. ~~The~~All ~~adoption~~ of the information that this ASU ~~2012-03~~requires already is ~~not~~required ~~expected~~ to ~~have~~be adisclosed ~~material~~elsewhere ~~impact~~in onthe ~~our~~ financial ~~position~~statements orunder ~~results~~U.S. ~~of operations~~GAAP. The new amendments will require an organization to:

~~In July 2012, the FASB issued ASU 2012~~-~~02,~~ ~~ÒIntangibles~~Present ~~– Goodwill and Other~~ (~~Topic~~either ~~350):~~on ~~Testing~~the ~~Indefinite-Lived~~face ~~Intangible~~of ~~Assets~~the ~~for~~statement ~~ImpairmentÓ~~where innet ~~Accounting~~income ~~Standards~~is ~~Update~~presented ~~No.~~or ~~2012-02.~~in ~~This~~the ~~update amends ASU 2011-08, Intangibles – Goodwill and Other (Topic 350~~notes): ~~Testing~~the ~~Indefinite-Lived~~effects ~~Intangible~~on ~~Assets~~the ~~for~~line ~~Impairment~~items ~~and~~of ~~permits~~net anincome ~~entity~~of ~~first~~significant toamounts ~~assess~~reclassified ~~qualitative~~out ~~factors~~of toaccumulated ~~determine~~other ~~whether~~comprehensive itincome is- ~~more~~but ~~likely~~only ~~than~~if ~~not~~the ~~that~~item anreclassified ~~indefinite-lived intangible asset~~ is ~~impaired~~required asunder aU.S. ~~basis~~GAAP ~~for~~to ~~determining~~be ~~whether~~reclassified ~~it is necessary~~ to ~~perform~~net ~~the~~income ~~quantitative~~in ~~impairment~~its ~~test~~entirety in ~~accordance~~the ~~with~~same ~~Subtopic~~reporting ~~350-30,~~period; ~~Intangibles~~and - ~~Goodwill~~Cross-reference ~~and~~to ~~Other~~other -disclosures ~~General~~currently ~~Intangibles~~required ~~Other~~under ~~than Goodwill~~U.S. ~~The~~GAAP ~~amendments are effective~~ for ~~annual~~other ~~and~~reclassification ~~interim~~items ~~impairment~~(that ~~tests~~are ~~performed~~not ~~for~~required ~~fiscal~~under ~~years beginning after September 15, 2012~~U.S. ~~Early~~GAAP) ~~adoption~~to isbe ~~permitted,~~reclassified ~~including~~directly ~~for~~to ~~annual~~net ~~and~~income ~~interim~~in ~~impairment~~their ~~tests~~entirety ~~performed~~in asthe ofsame areporting ~~date~~period. ~~before~~This ~~July~~would ~~27,~~be ~~2012,~~the ifcase when a ~~public~~portion ~~entity’s~~of ~~financial~~the ~~statements~~amount ~~for~~reclassified ~~the~~out ~~most~~of ~~recent~~accumulated ~~annual~~other orcomprehensive ~~interim~~income ~~period~~is ~~have~~initially ~~not~~transferred ~~yet~~to ~~been~~a ~~issued~~balance ~~or,~~sheet ~~for~~account ~~nonpublic entities~~(e.g., ~~have~~inventory ~~not yet been made available~~ for ~~issuance.~~pension-related ~~The~~amounts) ~~adoption~~instead of ~~ASU~~directly ~~2012-02 is not expected~~ to ~~have~~income ~~a material impact on our financial position~~ or ~~results of operations~~expense.

InThe ~~December~~amendments ~~2011,~~apply ~~the~~to ~~FASB~~all ~~issued~~public ~~ASU~~and ~~2011-12,~~private ~~ÒDeferral~~companies ofthat ~~the~~report ~~Effective~~items ~~Date for Amendments to the Presentation~~ of ~~Reclassifications~~other ofcomprehensive ~~Items out of Accumulated Other Comprehensive IncomeÓ in Accounting Standards Update No~~income. ~~2011-05.~~Public ~~This~~companies ~~update~~are ~~defers~~required ~~the requirement~~ to ~~present~~comply ~~items~~with ~~that~~these ~~are~~amendments ~~reclassified~~for ~~from~~all ~~accumulated~~reporting ~~other~~periods ~~comprehensive~~(interim ~~income~~and toannual). ~~net~~The ~~income~~amendments inare ~~both~~effective ~~the~~for ~~statement~~reporting ofperiods ~~income~~beginning ~~where~~after ~~net~~December ~~income~~15, is2012, ~~presented~~for ~~and~~public ~~the~~companies. ~~statement~~Early ~~where~~adoption ~~other comprehensive income~~ is ~~presented~~permitted. The adoption of ASU ~~2011~~No. 2013-1202 is not expected to have a material impact on our financial position or results of operations.

In ~~December~~January ~~2011~~2013, the FASB issued ASU No. ~~2011~~2013-1101, ~~ÒBalance~~Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and ~~LiabilitiesÓ~~Liabilities ~~(ÒASU~~, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-~~11Ó)~~11. ~~This~~The ~~Update~~new ~~requires~~ASU anaddresses ~~entity~~preparer toconcerns ~~disclose~~that ~~information~~the ~~about~~scope ~~offsetting~~of the disclosure requirements under ASU 2011-11 was overly broad and ~~related~~imposed ~~arrangements~~unintended tocosts ~~enable~~that ~~users~~were ofnot ~~its~~commensurate with estimated benefits to financial ~~statements~~statement users. In choosing to ~~understand~~narrow the ~~effect~~scope of ~~those~~the ~~arrangements~~offsetting ondisclosures, ~~its~~the ~~financial~~Board ~~position.~~determined ~~The~~that ~~objective~~it ofcould ~~this~~make ~~disclosure~~them ismore tooperable ~~facilitate~~and ~~comparison~~cost ~~between~~effective ~~those~~for ~~entities~~preparers ~~that~~while ~~prepare~~still ~~their~~giving financial ~~statements~~statement onusers sufficient information to analyze the ~~basis~~most ofsignificant presentation differences between financial statements prepared in accordance with U.S. GAAP and those ~~entities~~prepared ~~that~~under ~~prepare~~IFRSs. ~~their~~Like ~~financial~~ASU ~~statements~~2011-11, on the ~~basis~~amendments ofin ~~IFRS.~~this ~~The~~update ~~amended~~will ~~guidance~~be is effective for ~~annual~~fiscal ~~reporting~~ periods beginning on, or after January 1, 2013~~, and interim periods within those annual periods~~. The ~~Company~~adoption isof ~~currently~~ASU ~~evaluating~~2013-01 ~~the~~is ~~impact,~~not ifexpected ~~any,~~to ~~that~~have ~~the~~a ~~adoption~~material ofimpact ~~this~~on ~~pronouncement~~our ~~may~~financial ~~have~~position onor ~~its~~ results of operations ~~or financial position~~.

There were various other accounting standards and interpretations issued recently, none of which are expected to have a material impact on our consolidated financial position, operations or cash flows.

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operation.

h)	Foreign Currency Translation

Transactions in foreign currencies are translated into the currency of measurement at the exchange rates in effect on the transaction date. Monetary balance sheet items expressed in foreign currencies are translated into United States dollars at the exchange rates in effect at the balance sheet date. The resulting exchange gains and losses are recognized in income.

i) ~~Stock-based~~Correction ~~Compensation~~of an Error in Previously Issued Financial Statements

The Company follows guidance under ASC 250-10-45-23 for reporting any error in the financial statements of a prior period discovered after the financial statements are issued or are available to be issued. The current comparative statements as presented reflect the retroactive application of any error corrections. Those items that are reported as error corrections in the Company’s restatements of net income and retained earnings, as well as other affected balances for all periods reported there-in, are disclosed in Note 7 of the footnotes to the financial statements presented herein.

j)	Stock-based Compensation

The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.

6k) The Company reports its comprehensive income (loss) in accordance with provisions of the FASB. ~~Common~~For ~~Stock~~the period ended January 31, 2014 and year ended October 31, 2013, the Company’s only component of comprehensive loss was foreign currency translation adjustments.

~~Total~~l) ~~shares~~Certain ~~authorized~~reclassification ashave ofbeen ~~July~~made ~~31,~~to ~~2013~~the ~~are~~prior ~~250,000,000~~period’s ~~common~~financial ~~shares,~~statements par value $0.001 per share and 10,000,000 preferred shares, par value $0.001 per share. Total shares issued and outstanding as of July 31, 2013 are 63,583,258 common shares. Holders of common stock are entitled to ~~one~~conform ~~vote for each share held. There are no restrictions that limit the Company's ability~~ to ~~pay dividends on its common stock. During fiscal year 2012~~ the ~~Company~~current ~~has~~period’s ~~not declared any dividends since incorporation.~~presentation

6.	Common Stock

Total shares authorized as of January 31, 2014 are 250,000,000 common shares, par value $0.001 per share and 10,000,000 preferred shares, par value $0.001 per share. Total shares issued and outstanding as of January 31, 2014 are 65,597,988 common shares. Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company's ability to pay dividends on its common stock. During fiscal year 2012 the Company has not declared any dividends since incorporation.

During the year ended October 31, 2012, the Company sold 8,443,253 Units at a price of $0.15 per Unit to a group of private investors. Each Unit consisted of one share of common stock and one warrant. Every two warrants entitle the holder to purchase one share of our common stock a price of $0.35 per share at any time on or before April 30, 2014. The Company also sold 2,000,000 Units at a price of $0.10 per unit to a group of private investors. Each Unit consisted of one share of common stock and one warrant. Every two warrants entitle the holder to purchase one share of our common stock a price of $0.35 per share at any time on or before April 30, 2014.

During period ended April 30, 2013 we converted $40,000 of debt into 1,000,000 common shares. The shares were valued at $103,000, which is the fair market value on date of grant. As a result of the debt conversion, the Company recognized a loss on debt conversion of $63,000 which is recorded as other expenses in the statements of operations.

During period ended ~~July~~October 31, 2013 ~~we raised $274~~,~~463~~ ~~through~~ the ~~sale~~Company ofsold 1,848,063 of the Company common ~~shares~~stock for $0.15 per share to a group of private investors. AsA total of ~~July 31~~$274,463 ~~2013~~was raised as a result of the ~~shares~~sale. ~~has~~There ~~not~~were ~~been~~no ~~issued~~warrants ~~and~~attached ~~recorded~~to asthe asale ~~stock~~of ~~payable~~the common stock.

7.	Correction of Prior Period Error, Restatement Of Financial Statements

During the period ended October 31, 2013 the Company reported $4,966 held in trust of attorney. The restatement relates to the write-off of the cash balance held in trust of the attorney to accurately reflect the records provided. The Company’s restatements of its financial statements for the balance sheet and statement of operations for the year ended October 31, 2013 are as follows:

Balance Sheet (Extract)	October 31, 2013
	As filed			Adjustments			Restated Actual
ASSETS
Current Assets:
Cash and cash equivalents	$	29,755		$	(4,966	)(a)	$	24,789
GST/HST refund receivable	$	4,510			-		$	4,510
Total Current Assets	$	34,265		$	(4,966	)(a)	$	29,299

Total Assets	$	34,265		$	(4,966	)(a)	$	29,299

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Payable to vendor on asset acquisition	$	300,000			-		$	300,000
Accounts payable and accrued liabilities	$	200,469			-		$	200,469
Related party notes	$	499,702			-		$	499,702
Liabilities from Discontinued Operations	$	414,699			-		$	414,699
Total Current Liabilities	$	1,414,870			-		$	1,414,870

Total Liabilities	$	1,414,870			-		$	1,414,870

STOCKHOLDERS' DEFICIT
Capital stock - $.001 par value, 100,000,000 common shares authorized, 62,583,258 and 52,140,000 common shares outstanding as of October 31, 2012 and 2011, respectively	$	65,431			-		$	65,431
Additional paid in capital	$	2,061,277			-		$	2,061,277
Other Comprehensive Income	$	2,853		$	106	(b)	$	2,959
Deficit accumulated during the development stage	$	(3,510,166	)	$	(5,072	)(b)	$	(3,515,238	)
Total Stockholders' Deficit	$	(1,380,605	)	$	(4,966	)(a)	$	(1,385,571	)

Total Liabilities and Total Stockholders' Deficit	$	34,265		$	(4,966	)(a)	$	29,299

Consolidated Statement of Operations (Extract)

Revenues

Expenses
Consulting Expense	$	396,864			-		$	396,864
Professional fees	$	138,157			-		$	138,157
Office and Administrative	$	134,754		$	5,072	(a)	$	139,826
Travel and vehicle	$	39,624			-		$	39,624
Foreign currency translation
Total Operating Expenses	$	709,399		$	5,072	(a)	$	714,471

Other income (expense)
Loss on debt conversion	$	63,000			-		$	63,000
Impairment		-			-			-
Interest	$	53,781			-		$	53,781
Net Loss from Continuing Operations	$	(826,180	)	$	(5,072	)(a)	$	(831,252	)
Net Loss from Discontinued Operations		-			-			-
Adjusted Net Loss	$	(826,180	)	$	(5,072	)(a)	$	(831,252	)
Loss per Common Shares – Basic and Diluted – Continuing Operations	$	(0.01	)	$	(0.00	)	$	(0.01	)
Loss per Common Shares – Basic and Diluted – Discontinued Operations	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted Average Number of Common Shares Outstanding, Basic and Diluted		64,172,918						64,172,918

(a) relates to cash in trust account

(b) relates to foreign currency translation

7.	Discontinued Operations

Discontinued operations are presented for in accordance with Accounting Standard Codification (ASC) 360, “Impairment or Disposal of Long Lived Assets,” (ASC 360). When a qualifying component of the Company is disposed or classified as held for sale, the operating results of that component are removed from continuing operations for all periods presented and displayed as discontinued operations if: (a) elimination the component’s operations and cashflow from the Company’s ongoing operations has occurred (or will occur) and (b) significant continuing involvement by the Company in the component’s operations does not exist after the disposal transaction.

On July 20, 2011, the Company discontinued the operations for the Longquan joint venture to build the 48MW wind power plant near Yantai, Shandong, China. The operations were discontinued due to the inability to further fund the project under the time line required by the joint venture. The Company suffered a loss as of October 31, 2011 of $545,965 due to the discontinued operation due to both the Longquan and Rushan Project being abandoned.

During the fiscal period ended October 2012, the Company exited the energy business. The exit from the energy industry was therefore classified as discontinued operations for all periods presented under the requirement of ASC 360. The assets and liabilities of discontinued operations are presented separately under the captions “Assets to be discontinued,” “Liabilities to be discontinued” and “Long-term liabilities to be discontinued operations,” respectively, in the accompanying balance sheets at October 31, ~~2012~~2013 and ~~2011~~2012. There were no assets to be discontinued and the liabilities to be discontinued as of October 31, ~~2012~~2013 and ~~July~~January 31, ~~2013~~2014 consist of a related party note in the amount of $414,699 and $454,699, respectively.

8.	Related Party Transactions

Related party transactions are in the normal course of operations and are recorded at amounts established and agreed between the related parties. Related party transactions not disclosed elsewhere in these financial statements are as follows:

AsDuring ofthe ~~October~~period ~~31,~~ended ~~2012~~January ~~and July~~ 31, ~~2013~~2014, the Company ~~has~~borrowed $337,622 and made a ~~balance~~repayment of $~~104~~87,~~617~~904. ~~and~~Since ~~$129~~inception,~~218,~~ ~~respectively,~~the ~~due~~shareholder tohas ~~related~~advanced ~~party~~funds for ~~expenses~~professional ~~paid~~fees onand ~~behalf~~other ofoffice and general expenses in the ~~Company~~amount of $1,998,145. ~~During~~ ~~the~~Since ~~period~~inception, ~~the~~shareholders ~~Company~~have ~~borrowed~~waived $~~202~~223,~~669~~079 ~~and~~in ~~made~~principal aand ~~repayment~~$149,468 ofin ~~$178~~accrued interest,~~067~~ which is consider advances as contribution to capital. The related party loans are considered as unsecured loan with no stated interest rate and due upon demand. The company imputed interest at 8% per annum, which is comparable to historical borrowing rate that the company has obtained in the past. These notes are not convertible and no options were attached. Interest expense recorded for the period ended ~~July~~January 31, ~~2013~~2014 is $3527,~~731~~066. As of October 31, ~~2012~~ 2013 and ~~July~~January 31, ~~2013~~2014, the accrued interest is $83185,~~877~~923 and $~~119~~63,~~608~~731 respectively.

10During the year ended October 31, 2013 we converted $40,000 of debt into 1,000,000 common shares. The shares were valued at $103,000, which is the fair market value on date of grant. As a result of the debt conversion, the Company recognized a loss on debt conversion of $63,000 which is recorded as other expenses in the statements of operations.

9.	Joint Venture

On February 12, 2010, the Company formed a new Joint Venture Corporation, “Yantai Alveron Energy Development Company”, in Shandong, China as per the agreement sign on June 20, 2009. The company ownership was organized per the agreement with Alveron Energy Corp. owning 77% and the joint partners owning the remaining 23% of the new entity. On the date of the Joint Venture, Yantai had no balance sheet or income statement activities. The Company transferred a total of $539,900 to this new entity during the quarter ending January 31, 2011 to be used on the feasibility report for a potential 48MW wind energy plant in Shandong, China. Out of the total $539,900, $239,900 was allocated to the Rushan Project and $258,230 to the Longquan Project.

As of October 31, 2011 and based on events that have deterred the likely success of the Rushan and Longuan Project, the company has discontinued operations in the Joint Venture.

10.	Contingencies

No legal proceedings are currently pending or, to our knowledge, threatened against us that, in the opinion our management, could reasonably be expected to have a material adverse effect on our business or financial condition or results of operations.

11.	Other Receivable:

The Other Receivable represents Harmonized Sales Tax Receivable for expenses incurred by the Company in Canada. Companies that generate revenue are subject to Harmonized Sales Tax, and are collected up front when purchases are made. Since the Company has no operations, the Tax collected is refundable as such the Company has recorded a receivable of $239,~~993~~972 as of ~~July~~January 31, ~~2013~~2014.

12.	Subsequent Events

There were no material events that occurred subsequent to ~~July~~January 31, ~~2013~~2014 that would warrant further disclosures.

1113

Item 2. Management’s Discussion and Analysis and Plan of Operation.

We were incorporated in Delaware in November 2003. From November 2003 to February 2010 we were inactive.

In April 2010 we changed our name to Alveron Energy Corp.

Between February 2010 and July 2011 we were involved in a joint venture which was formed to determine the feasibility of building a 48MW wind energy plant in Shandong, China. In July 2011 we discontinued our involvement in the joint venture due to our inability to further fund the project. Total loss from discontinued operation from inception to OCTOBER 31, 2012 was $589,900.

In March 2012, Michael Scott purchased 39,900,000 shares of our common stock from Sang-Ho Kim who, at that time, was our Chief Executive Officer.

In March 2012, Sang-Ho Kim and Surendran Shanmugan appointed Michael Scott as one of our directors. Following the appointment of Mr. Scott, Mr. Kim resigned as our officer. Following his resignation, Mr. Scott became our Chief Executive Officer and our Principal Financial and Accounting Officer.

In March 2012 Mr. Scott transferred 18,900,000 shares he purchased from Sang-Ho Kim to various shareholders in SafeBrain Systems, Inc. and to other third parties.

Mr. Kim and Mr. Shanmugan resigned as directors on April 15, 2012.

Acquisition of the SafeBrain Technology

On May 25, 2012, we acquired the SafeBrain System (“SafeBrain”) from Rod Newlove for $900,000, of which $~~602~~600,~~041~~000 has been paid and the remaining $~~297~~300,~~959~~000 ~~was~~and tois becurrently ~~paid~~due noon ~~later~~September ~~than~~30, ~~June~~2014. 13Any outstanding amount after October 1, ~~2012~~2014 will bear interest of 5% per year.

SafeBrain works in two ways:

·• The Cranium Impact Analyzer Sensor (the “C.I.A.”) is mounted on the helmet of an athlete; and

·• The SafeBrain software allows in-depth analysis of any impact event and can be customized for the notification and data logging settings for each athlete.

The C.I.A. sensor was designed to ensure compatibility with a wide range of athletic helmets. The sensor is approximately the size of a quarter and weighs less than 8 grams. Even at this small size, the C.I.A. patented sensor contains a 3-axis accelerometer, based on a 16-bit microprocessor. The C.I.A. sensor contains a data-logger and real-time clock to provide time-stamped force-readings when used with the SafeBrain software.

Placed on the helmet, the small CIA sensor accurately measures G-force on all 3 –axis. An LED indicator light flashes to alert the monitor, coaching staff or an individual when an impact has occurred that has the potential to cause a concussion which requires proper assessment and perhaps medical attention.

12On May 15, 2012, we entered into a consulting agreement with a company controlled by Mr. Newlove. The agreement provides that we will pay Mr. Newlove $10,000 per month for supervising the manufacturing of, and developing improvements for, the SafeBrain System. In addition, during each twelve-month period during the term of this agreement, we will provide supplies and materials to Mr. Newlove, at a cost not to exceed $5,000 during the twelve-month period, to be used by the Consultant in performing the consulting services. Based on a mutual agreement the compensation on the consulting agreement has been suspended until further notice.

On May 15, 2012, we entered into a consulting agreement with a company controlled by Mr. Newlove. The agreement provides that we will pay the consultant $10,000 per month for supervising the manufacturing of, and developing improvements for, the SafeBrain System. In addition, during each twelve-month period during the term of this agreement, we will provide supplies and materials to the Consultant, at a cost not to exceed $5,000 during the twelve-month period, to be used by the Consultant in performing the consulting services.

The consulting agreement will expire on June 30, 2017.

Marketing

We plan to market the SafeBrain System to non-professional athletes who participate in sports that require helmets such as hockey, football, biking, motor-cross, skiing and snowboarding.

There are over 1.5 million registered minor hockey players worldwide with over 71% of them being located in North America representing over 50,000 teams.

There are an estimated 1.1 million high school students playing American football and 35,000 college players currently in the USA. Studies published over the last 20 years indicate that 15-20% of high school football players or nearly 250,000 players suffer concussions each year in the United States. According to Safekids.org as of October 25, 2011, thirty-three states in the USA have enacted youth sports concussion related laws. Although the wording varies from state to state the focus is primarily on three main points;

·	Teams are to educate their players and parents about the nature of concussions and brain injury;

·	Coaches who suspect a player has sustained a concussion must remove the player from the game, competition and practice; and

·	A player removed from play due to a concussion must be evaluated by a health care provider and receive written clearance before participating in sports again.

With the demand for extreme sports related competitions growing, sports such as biking, skiing, snow-boarding, motor cross and the like are also garnering significant media exposure for head trauma related injuries most noticeably concussions.

We believe SafeBrain is currently the only product that has state of the art advancement technology with 360 degree impact gauging and monitoring in addition to indicator warning lights that flash the moment of impact.

SafeBrain will be marketed to all amateur football and hockey teams starting at the novice level through major junior and professional levels. In addition SafeBrain will also be marketed to individuals and teams in other sports such as skateboarding, skiing, biking, bmx freestyle, motor cross, sport racing and lacrosse. The primary focus for the first eighteen to twenty-four months will be the North American football and hockey markets although there will be no limitations placed on sales in other markets.

Although SafeBrain will benefit from the ongoing media print and television exposure to sports related concussions, to help drive awareness for SafeBrain, the marketing approach will be multifaceted. We will hire a dedicated sales team to assist in generating interest from teams and individuals throughout Canada and the United States. The sales team will be responsible for to following up with teams currently pilot testing the product, setting up media events and interviews, directing targeted traffic to our website, print and content publications as well as organizing booths and displays at all the large sports shows and youth development camps in North America.

We expect our revenues will be derived from three components.

Unit sales: Football/Cost $4,995.00

Each SafeBrain System will contain a Team Kit which consists of: 52 C.I.A. Sensors, Safe Brain Software, Netbook PC, Storage Case, Instruction Manual, two data transfer interface cables and 2 C.I.A. emergency replacement sensors.

Unit sales: Hockey/Cost $2,995.00

Each SafeBrain System will contain a Team Kit which consists of: 22 C.I.A. Sensors, Safe Brain Software, Netbook PC, Storage Case, Instruction Manual, two data transfer interface cables and 2 C.I.A. emergency replacement sensors.

Maintenance Agreement and Team Maintenance/Cost $499.00.

The annual maintenance agreements for teams or individuals will include complete battery replacement on all Units as needed, testing, verification and calibration certification on all CIA devices. Data storage is also included to record and store downloaded user data safely and effectively for the entire time any one specific user or team is using the device. A satisfaction guaranteed lifetime warranty also enables easy repair or replacement on any Units sold.

~~We will also sell individual Units at a cost of $199.00 and annual maintenance costs $49.99 per year.~~15

We will also sell individual Units at a cost of $149.99 and annual maintenance costs $49.99 per year.

Manufacturing

We do not own any manufacturing facilities. Accordingly, we will use unrelated third parties to manufacture our SafeBrain System. We do not have any written agreements with any person regarding the manufacture of the SafeBrain system or its components.

Plan of Operation

~~Between~~As ~~April~~of ~~11,~~January ~~2012 and July~~ 31, ~~2012,~~2014 we ~~sold~~had ~~8,443,253~~generated ~~Units~~no atrevenue afrom ~~price~~sales of ~~$0.15~~SafeBrain ~~per Unit to a group of private investors~~systems. We sold 2,000,000 units, at a price of $0.10 per unit, to two private investors before the year ending October 31, 2012. Each Unit consisted of one share of common stock and one warrant. Every two warrants entitle the holder to purchase one share of our common stock at a price of $0.35 per share at any time on or before April 30, 2014.

As of ~~July~~January 31, ~~2013~~2014 we had ~~generated~~cash on hand of approximately $158,259. We have never earned a profit and we expect to incur losses during the foreseeable future and may never be profitable. We will need to earn a profit or obtain additional financing until we are able to earn a profit. We do not know what the terms of any future financing may be, but any future sale of equity securities would dilute the ownership of existing stockholders. The failure to obtain the capital we require will result in a slower implementation of our business plan. There can be no ~~revenue~~assurance that we will be able to obtain any capital which is needed. We do not have any commitments from ~~sales~~any ofperson ~~SafeBrain~~to ~~systems~~provide us with any additional capital.

As of July 31, 2013 we had cash on hand of approximately $960. We have never earned a profit and we expect to incur losses during the foreseeable future and may never be profitable. We will need to earn a profit or obtain additional financing until we are able to earn a profit. We do not know what the terms of any future financing may be, but any future sale of equity securities would dilute the ownership of existing stockholders. The failure to obtain the capital we require will result in a slower implementation of our business plan. There can be no assurance that we will be able to obtain any capital which is needed. We do not have any commitments from any person to provide us with any additional capital.

Our plan of operation and capital requirements for the twelve months ending January 31, 2014 are shown below.

Activity	Estimated Completion Date	Estimated Cost

Production	January 31, 2014		100,000
Research and Development	January 31, 2014		50,000
Marketing	January 31, 2014		150,000
Working Capital	January 31, 2014		390,000
Total	January 31, 2014		690,000

General

Our principal offices are located at ~~100,~~1600 ~~224~~-~~11th~~ 144 4 Avenue ~~S.W.~~SW, Calgary, ABAlberta, ~~T2R~~T2P ~~0C3~~3N4. Our ~~offices~~lease ~~are~~payments ~~provided~~for tothe uslocation ~~free~~are of$1294.57 ~~charge~~per month.

Our website is www.safebrain.ca and our telephone number is (~~403~~587) ~~801~~702-~~1506~~5809.

As of ~~September~~March 1821, ~~2013~~2014 we did not employ any persons on a full time basis.

Results of Operation

The Company did not have any operating income from inception (November 18, 2003) through ~~July~~January 31, ~~2013~~2014.

~~During~~The ~~the three months ended July 31, 2013, the~~ company had $5699,~~994~~323 ofin ~~professional~~consulting ~~fees and office and administrative~~ expenses ofduring ~~$55,664 as compared to~~ the three months ended ~~July~~January 31, ~~2012,~~2014 ~~where~~compared ~~the~~to ~~company had~~ $5520,~~190~~092 offor ~~professional and office and administrative expenses of $226,418. During~~ the ~~nine months ended July 31, 2013, the company had $115,263 of professional fees and office and administrative expenses of $64,759 as compared to the~~ three months ended ~~July~~January 31, ~~2012, where the company had $75,335 of professional and office and administrative expenses of $234,025~~2013. ~~The office and administrative fees was much greater in 2012 due to costs of starting a new office.~~

~~The~~During ~~company had interest expense $11,986 during~~ the three months ended ~~July~~January 31, ~~2013 compared to $19~~2014,~~111~~ ~~for~~ the ~~three~~company ~~months~~had ~~ended July 31~~$69,927 ~~2012.~~of ~~The~~professional ~~company~~fees ~~had~~as ~~interest~~compared ~~expense~~to ~~$35,731 during~~ the ~~nine~~three months ended ~~July~~January 31, 2013 ~~compared to $32~~,~~227~~ ~~for~~where the ~~nine~~company ~~months~~had ~~ended July 31~~$8,780 ~~2012~~of professional.

~~The~~During ~~company had $269,712 in consulting expenses during~~ the three months ended ~~July~~January 31, ~~2013 compared to $522~~2014,~~240~~ ~~for~~ the ~~three~~company ~~months~~had ~~ended~~office ~~July~~and ~~31,~~administrative ~~2012.~~expenses ~~The~~of ~~company had~~ $~~310~~19,~~243~~889 inas ~~consulting~~compared ~~expenses~~to ~~during~~ the ~~nine~~three months ended ~~July~~January 31, 2013 ~~compared to $522~~,~~240~~ ~~for~~where the ~~nine~~company ~~months~~had ~~ended July 31~~$1,766 ~~2012.~~of ~~The~~office ~~consulting~~and ~~expense~~administrative ~~was greater in 2012 due to the development of the product~~expenses.

The company had $184,~~424~~863 in travel and vehicle expenses during the three months ended ~~July~~January 31, ~~2013~~2014 compared to ~~nil for the three months ended July 31, 2012. The company had~~ $351,~~731~~772 ~~in travel and vehicle expenses during the nine months ended July 31, 2013 compared to nil~~ for the ~~nine~~three months ended ~~July~~January 31, ~~2012~~2013. ~~The increase in travel and vehicle expense is due to the increase in sales and marketing activity.~~

The company had ~~nil~~interest inexpense ~~foreign~~$27,066 ~~exchange loss/gain~~ during the three months ended ~~July~~January 31, ~~2013~~2014 compared to $~~111~~11,513 for the three months ended ~~July~~January 31, ~~2012. The company had nil in foreign exchange loss/gain during the nine months ended July 31,~~ 2013 ~~compared to $111 for the nine months ended July 31, 2012~~.

The company had nil in loss on debt conversion during the three months ended July 31, 2013 compared to nil for the three months ended July 31, 2012. The company had 63,000 in loss on debt conversion during the nine months ended July 31, 2013 compared to nil for the nine months ended July 31, 2012.16

Operating expenses in general increased in the quarter ended January 31, 2014 due to increased company activity.

Critical Accounting Policies

Our most critical accounting policies, can be found in our Annual Report on Form 10-K for the fiscal year ended October 31, ~~2012~~2013. There have been no material changes in our existing accounting policies from the disclosures included in our ~~2011~~2013 Form 10-K.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange traded contracts.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management’s Report on Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our president (our principal executive officer, principal financial officer and principal accounting officer) to allow for timely decisions regarding required disclosure.

As the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (our principal executive officer, principal financial officer and principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president (our principal executive officer, principal financial officer and principal accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report.

Changes in Internal Control over Financial Reporting

During the period covered by this report, there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

OTHER INFORMATION

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

During period ended ~~July~~January 31, ~~2013~~2014 we raised $~~274~~25,~~463~~000 through the sale of 1166,~~848,063~~667 common shares to a ~~group of~~ private ~~investors~~investor.

We relied upon the exemption provided by Section 4(2) of the Securities Act of 1933 with respect to the issuance of these securities. The persons who acquired these securities were sophisticated investors and were provided full information regarding our business and operations. There was no general solicitation in connection with the offer or sale of these securities. The persons who acquired these securities acquired them for their own accounts. The certificates representing these securities will bear a restricted legend providing that they cannot be sold except pursuant to an effective registration statement or an exemption from registration. No commission or other form of remuneration was given to any person in connection with the sale of these securities.

Item 6. Exhibits and Reports on Form 8-K

(A) Exhibits

Exhibit Number		Description

31.1		Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

1918

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

	SAFEBRAIN SYSTEMS, INC.
Date: September 23, 2013	By:	/s/ Michael Scott
Date: March 21, 2014	By:	/s/ Michael Scott
		Michael Scott
		Name: Michael Scott
		Chief Executive and Financial Officer
		Title: Chief Executive and Financial Officer

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