v2.3.0.11

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended		46 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jul. 31, 2011	Jul. 31, 2010	Jul. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
NET LOSS	$ 296,867	$ (118,416)	$ 24,221
Write-off of impaired patent (Note 3)		31,048	31,048
Gain on subscription received in advance	(794,123)		(794,123)
Contribution of imputed interest			1,482
(Increase) decrease in prepaid assets	(228,807)		(228,905)
(Increase) decrease in other assets	(19,607)		(19,607)
(Increase) decrease in accrued interest receivable		(3,236)
(Decrease) increase in accounts payable	17,631	10,343	27,347
Increase in accrued expenses - related party	65,015	48,995	158,384
NET CASH PROVIDED (USED BY) OPERATING ACTIVITIES	663,024	(31,266)	800,153
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of stock			25,000
Cash received in advance for stock subscription	1,750,000		1,750,000
Repayment of subscriptions received in advance	(784,000)		(784,000)
Proceeds from related party loans			450,000
Payments on related party loans	(450,000)		(450,000)
Proceeds from related party notes	51,914	33,567	211,436
Payments on related party notes	(103,978)	(93,486)	(238,754)
NET CASH PROVIDED (USED BY) FINANCING ACTIVITIES	463,936	(59,919)	963,682
Foreign exchange effect on cash	(24,533)	19,089	(24,533)
INCREASE (DECREASE) IN CASH	(223,621)	(72,096)	163,529
CASH AT BEGINNING OF PERIOD	387,150	452,098
CASH AT END OF PERIOD	163,529	380,002	163,529
CASH PAID FOR:
Interest
Income taxes
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Settlement of subscription received in advance though assignment of receivables to subscriber	216,000		216,000
Note payable issued for patents		$ 3,730	$ 31,048

This is an amount forgiven by a stock subscriber (creditor) and this becomes a gain because we did not return these funds.

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Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation).

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The increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.

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The foreign exchange rate used to translate amounts denominated in the functional currency to the reporting currency.

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The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income.

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The increase (decrease) during the reporting period in the aggregate amount of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business.

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The increase (decrease) during the reporting period in the amount due from borrowers for interest payments.

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The increase (decrease) during the reporting period in the aggregate amount of expenses incurred but not yet paid.

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The increase (decrease) during the reporting period in other current operating assets not separately disclosed in the statement of cash flows.

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The increase (decrease) during the reporting period in the value of prepaid expenses and other assets not separately disclosed in the statement of cash flows, for example, deferred expenses, intangible assets,or income taxes.

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Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings.

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The amount of cash paid for interest during the period.

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The net cash inflow or outflow from financing activity for the period.

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The net cash inflow or outflow from investing activity.

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The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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The net amount paid or received by the reporting entity associated with purchase (sale or collection) of loans receivable arising from the financing of goods and services.

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The cash inflow associated with collection, whether partial or full, of long-term loans to a related party. Alternate caption: Proceeds from Advances to Affiliates.

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The cash inflow from the additional capital contribution to the entity.

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-Name Accounting Standards Codification
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The cash inflow from a long-term borrowing made from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth. Alternate caption: Proceeds from Advances from Affiliates.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef
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The cash inflow from a loan, supported by a promissory note, granted to related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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KUNEKT CORP 10-Q