10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒   Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act Of 1934

For the quarterly period ended October 31, 2016

☐   Transition Report Under Section 13 or 15(d) of the Securities Exchange Act Of 1934

For the transition period from _______________ to _______________

 Commission file number: 000-52825

STWC HOLDINGS, INC

(Exact name of registrant as specified in its charter)

Colorado	20-8980078
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
Incorporation or organization)
1350 Independence St., Suite 300
Lakewood, CO	80215
(Address of principal executive offices)	(Zip Code)

Check whether the issuer (1) has filed all reports required to be filed by section 13 or 15(d) of the Exchange Act 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 ☒   No ☐

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 ☐   No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of "large accelerated filer," "accelerated filer," "non-accelerated filer," and "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 27,140,550 shares of common stock as of October 3, 2018.

1

STWC HOLDINGS, INC.

INTERIM FINANCIAL STAEMENTS

For the Nine Months Ended October 31, 2016 and 2015

(UNAUDITED)

STWC HOLDINGS, INC.

CONDENSED BALANCE SHEETS

	October 31, 2016			January 31, 2016
	(Unaudited)
ASSETS
Current assets:
Cash	$	7,500		$	151,311
Accounts receivable		6,000			—
Assets of discontinued operations, net		1,465,413			1,417,719
Total current assets		1,478,913			1,569,030
Tenant improvements and office equipment, net of accumulated amortization and depreciation of $21,272 and $15,284 at October 31, 2016 and January 31, 2016, respectively		3,179			9,167
Equity method investment in unconsolidated subsidiary		39,159			11,659
Trademark, net of accumulated amortization of $2,074 and $1,525 at October 31, 2016 and January 31, 2016, respectively		8,936			9,485
Total assets	$	1,530,187		$	1,599,341
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$	292,671		$	306,128
Due to related party		156,650			—
Liabilities of discontinued operations		4,204,995			3,719,247
Total current liabilities		4,654,316			4,025,375
Commitments and contingencies		—			—
Stockholders' deficit
Common stock, no par value, 100,000,000 shares authorized, 27,140,550 issued and outstanding at October 31, 2016 and January 31, 2016, respectively		—			—
Additional Paid in Capital		3,152,658			3,152,658
Retained deficit		(6,276,787	)		(5,578,692	)
Total stockholders' deficit		(3,124,129	)		(2,426,034	)
Total liabilities and stockholders' deficit	$	1,530,187		$	1,599,341

See accompanying notes.

2

STWC HOLDINGS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
	For the Three Months Ended October 31,						For the Nine months Ended October 31,
	2016			2015			2016			2015
Consulting services	$	—		$	—		$	—		$	2,000
Cost of consulting services		—			—			(1,750	)		—
Gross profit		—			—			(1,750	)		2,000
Operating costs and expenses
Rents and other occupancy		16,984			16,984			50,953			50,437
Compensation		176,406			154,995			529,519			424,743
Professional, legal and consulting		36,326			121,508			186,832			233,992
Depreciation and amortization		2,037			2,250			6,537			6,750
General and administrative		46,604			23,626			111,412			40,762
Total operating costs and expenses		278,357			319,363			885,253			756,684
Loss from continuing operations		(278,357	)		(319,363	)		(887,003	)		(754,684	)
Other costs and expenses
Income on equity investment in unconsolidated subsidiary		—			—			7,500			—
Interest and financing costs		(385	)		—			(3,292	)		—
Loss from continuing operations, before provision for taxes on income		(278,742	)		(319,363	)		(882,795	)		(754,684	)
Provision for taxes on income		—			—			—			—
Loss from continuing operations, net of tax		(278,742	)		(319,363	)		(882,795	)		(754,684	)
Income (loss) from discontinued operations, net of tax		276,561			(184,458	)		184,700			(2,263,723	)
Net income/(loss)	$	(2,181	),	$	(503,821	)	$	(698,095	)	$	(3,018,407	)
Basic earnings and fully diluted loss per common share
Continuing operations	$	(0.01	)	$	*		$	(0.03	)	$	(0.03	)
Discontinued operations	$	0.01		$	*		$	*		$	(0.08	)
Basic and fully diluted weighted average number of shares outstanding		27,140,550			30,630,701			27,140,550			27,147,217

(*) Less than $0.01 per share

See accompanying notes.

3

STWC HOLDINGS, INC.

CONDENSED STATEMENT OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended October 31,
	2016			2015
Cash flows from operating activities:
Net (loss)	$	(698,095	)	$	(3,018,407	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		5,988			6,201
Decrease in trademark		549			549
Income on equity investment in unconsolidated subsidiary		(7,500	)		—
Increase in accounts receivable		(6,000	)		—
Increase in accounts payable and accrued expenses		(13,457	)		105,759
Net cash flow used in operating activities from continuing operations		(718,515	)		(2,905,898	)
Net cash flow used in operating activities from discontinued operations		201,287			(888,533	)
Net cash flow used in operating activities		(517,228	)		(2,017,365	)
Cash flows from investing activities:
Investment in unconsolidated subsidiary		(20,000	)		(25,000	)
Net cash flow used in investing activities from continuing operations		(20,000	)		(25,000	)
Net cash flow used in investing activities from discontinued activities		—			(75,000	)
Net cash flow used in investing activities		(20,000	)		(100,000	)
Cash flows from financing activities:
Cash advances from related parties		156,650			—
Net cash flows from financing activities from continuing operations		156,650			—
Net cash flow from financing activities from discontinued activities		236,767			1,446,406
Net cash flows from financing activities		393,417			1,446,406
Net cash flows		(143,811	)		(670,959	)
Cash and equivalent, beginning of period		151,311			674,495
Cash and equivalent, end of period	$	7,500		$	3,536
Supplemental cash flow disclosures:
Cash paid for interest	$	576,251		$	47,482
Cash paid for income taxes	$	—		$	—

See accompanying notes.

4

STWC HOLDINGS, INC.

STATEMENT OF CHANGES IN STOCKHOLDERS' (DEFICT)

(Unaudited)

	Common Stock				Additional Capital In Excess of Par		Deficit
	Shares		Amount		Value		Accumulated			Total
Balance, January 31, 2016		27,140,550		—	$	3,152,658	$	(5,578,692	)	$	(2,426,034	)
Net Loss		—		—		—		(698,095	)		(698,095	)
Balance, October 31, 2016		27,140,550		—	$	3,152,658	$	(6,276,787	)	$	(3,124,129	)

5

Note 1 – Organization

STWC HOLDINGS, INC., formerly known as Strainwise, Inc., (identified in these footnotes as "STWC" "we" "us" or the "Company") provides branding marketing, administrative, accounting, financial and compliance services ("Fulfillment Services") to entities in the cannabis retail and production industry. The Company was incorporated in the state of Colorado as a limited liability company on June 8, 2012, and subsequently converted to a Colorado corporation on January 16, 2014.

The Company was established to provide sophisticated Fulfillment Services to medical and retail stores, and cultivation facilities in the regulated cannabis industry throughout the United States. Such Fulfillment Services would only be provided to stores and facilities located in geographical areas where the governing state and local ordinances allow for the unfettered provisions of such services.

The Fulfillment Services that the Company is currently able to provide are summarized, as follows:

● Opportunity Assessment: For a standard fee, the Company will complete an Opportunity Assessment for a client, which would include financial modeling, completed with the Company's proprietary assessment software.

● Application Filing Assistance: Based upon the Company's knowledge of the various rules and regulations of respective state and local jurisdictions, the Company will provide turn-key application preparation and submission services for a client, and/or provide consulting assistance to a client who is self-preparing their application.

● Branding, Marketing and Administrative Consulting Services: Customers may contract with the Company to use the Strainwise®name, logo and affinity images in their retail store locations. A monthly fee will permit a branding customer to use the Strainwise® brand at a specific location. In addition, the Company will assist operators in marketing and managing their businesses, setting up new retail locations and general business planning and execution at an hourly rate. This includes services to establish an efficient, predictable production process, as well as, nutrient recipes for consistent and appealing marijuana strains.

● Accounting and Financial Services: For a monthly fee, the Company will provide a customer with a fully implemented general ledger system, with an industry centric chart of accounts, which enables management to readily monitor and manage all facets of a marijuana medical dispensary and cultivation facility. The Company will provide bookkeeping, accounts payable processing, cash management, general ledger processing, financial statement preparation, state and municipal sales tax filings, and state and federal income tax compilation and filings.

● Compliance Services: The rules, regulations and state laws governing the production, distribution and retail sale of marijuana can be complex, and compliance may prove cumbersome. Thus, customers may contract with the Company to implement a compliance process, based upon the number and type of licenses and permits for their specific business. The Company will provide this service on both an hourly rate and stipulated monthly fee.

● Lending: The Company will provide loans to individuals and businesses in the cannabis industry.

The Company does NOT grow marijuana plants, produce marijuana infused products, sell marijuana plants and/or sell marijuana infused products of any nature in any jurisdiction were such activity has not been legalized.

Note 2 – Summary of significant accounting policies

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

Cash and cash equivalents – For purposes of the statement of cash flows, the Company considers all cash in banks, money market funds, and certificates of deposit with a maturity of less than three months to be cash equivalents. Under current banking regulations, not all marijuana centric entities are afforded normal banking privileges. And thus, because of the Company's perceived association with the Regulated Entities, the Company has not been able to maintain a corporate bank account at any federally or state charted banking institution.

6

Tenant improvements and office equipment – Tenant improvements and office equipment are recorded at cost and is depreciated under straight line methods over each item's estimated useful life. Management reviews the Company's tenant improvements and office equipment for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Maintenance and repairs of property and equipment are charged to operations. Major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts and any gain or loss is included in operations.

Tenant improvements and office equipment, net of accumulated amortization and depreciation are comprised of the following:

	October 31, 2016			January 31, 2016
Leasehold improvements	$	2,200		$	2,200
Office equipment, furniture and fixtures		22,251			22,251
		24,451			24,451
Accumulated amortization and depreciation		(21,272	)		(15,284	)
	$	3,179		$	9,167

Tenant improvements are amortized over the term of the lease, and office equipment is depreciated over its useful lives, which has been deemed by management to be three years. Amortization and depreciation expense related to tenant improvements and office equipment for each of the three months ended October 31, 2016 and 2015 was $1,854 and $2,067, respectively. Amortization and depreciation expense related to tenant improvements and office equipment for each of the nine months ended October 31, 2016 and 2015 was $5,988 and $6,201, respectively.

Income taxes – The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Investment in Unconsolidated Entity – The Company acquired a 50% interest in SentinelStrainwise, LLC ("SSL") in June 2015 for $25,000. The Company accounts for its investment SSL using the equity method based on the ownership interest. Accordingly, the investment was recorded at cost, and adjustments to the carrying amount of the investment to recognize the Company's share of the earnings or losses of SSL are made in each reporting period. In accordance with Accounting Standard Codification 810-10, Consolidation-Overall, the Company evaluated the fair value of the Company's investment in SLL and determined that there no adjustment required to the carrying amount of the Company's original investment, other than the recognition of the Company's share of the operating income $7,500for the nine months ended October 31, 2016.

Long-Lived Assets – In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.

Trademarks – Trademarks and other intangible assets are stated at cost and are amortized using the straight-line method over fifteen years. Accumulated amortization was $2,074 and $1,525 at October 31, 2016 and January 31, 2016, respectively, and consisted of the following at October 31, 2016:

	Gross Carrying Amount		Accumulated Amortization		Net
Trademarks	$	11,010	$	2,074	$	8,936

Discontinued Operations – During November 2017, the Company settled all remaining operations related to its rental activities with regulated entities. As a consequence of the disposition, the operating results and the assets and liabilities of the discontinued operations, which formerly comprised the rental operations, are presented separately in the Company's financial statements. Summarized financial information for the discontinued rental business is shown below. Prior period balances have been reclassified to present the operations of the rental business as a discontinued operation.

7

Discontinued Operations Income Statement
	Three Months Ended October 31,						Nine Months Ended October 31,
	2016			2015			2016			2015
Rental income from the Regulated Entities (Affiliates)	$	973,798		$	1,063,125		$	2,921,393		$	3,480,090
Total revenues		973,798			1,063,125			2,921,393			3,480,090
Operating costs and expenses
Reserve for amounts due from Regulated Entities (Affiliates)		(325,807	)		19,850			(657,018	)		1,412,234
Rents and other occupancy		800,438			912,681			2,425,100			3,069,548
Depreciation and amortization		54,554			45,876			136,418			193,873
Total operating costs and expenses		529,185			978,407			1,904,500			4,675,655
Operating (loss)/income from discontinued operations		444,613			84,718			1,016,893			(1,195,565	)
Other income and (expenses)
Loss from cancellation of lease and related tenant improvement loan		—			(62,503	)		—			(62,503	)
Interest expense		(168,052	)		(207,061	)		(832,193	)		(622,968	)
Loss from discontinued operations	$	276,561		$	(184,458	)	$	184,700		$	(1,881,036	)

The Company anticipates continued expenses through the end of calendar 2017 related to the discontinued operations.

The individual assets and liabilities of the discontinued agricultural business are combined in the captions "Assets of discontinued operation" and "Liabilities of discontinued operation" in the consolidated Balance Sheet. The carrying amounts of the major classes of assets and liabilities included part of the discontinued business are presented in the following table:

Discontinued Operations Balance Sheet
	October 31, 2016		January 31, 2016
ASSETS
Due from Regulated Entities (Affiliates), net of collection allowance reserve of $2,565,516 and $3,222,535at October 31, 2016 and January 31, 2016, respectively.	$	—	$	—
Prepaid rent		134,112		—
Tenant improvements and office equipment, net of accumulated amortization and depreciation of $186,443 and $62,025 at October 31, 2016 and January 31, 2016, respectively		505,968		630,386
Commercial operating property, net of accumulated amortization of $34,667 and $22,667 at October 31, 2016 and January 31, 2016, respectively		625,333		637,333
Prepaid expenses and other assets		200,000		150,000
Total assets	$	1,465,413	$	1,417,719
LIABILITIES
Accounts payable and accrued expenses	$	—	$	34,477
Settlement of equipment advance payable				150,100
Accrued interest payable		397,692		138,458
Deferred rent		1,139,643		965,319
Mortgage payable		202,660		357,010
Convertible notes payable		—		2,073,883
Notes payable		2,465,000		—
Total liabilities	$	4,204,995	$	3,719,247

8

The Company discontinued providing services under the Master Service agreements to the Regulated Entities on June 30, 2015. There were no components of major assets and liabilities associated with the discontinued operations at October 31, 2016 and 2015 and at January 31, 2016. The summarized discontinued operating results for the three Nine months ended October 31, 2015, respectively, are, as follows:

	Three Months Ended October 31, 2015		Nine Months Ended October 31, 2015
Revenues	$	—	$	764,071
Expenses		—		(1,146,758	)
	$	—	$	(382,687	)

Comprehensive Income (Loss) - Comprehensive income is defined as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. Since the Company's inception there have been no differences between the Company's comprehensive loss and net loss.

Net income per share of common stock – The Company has adopted applicable FASB Codification regarding Earnings per Share, which require presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic earnings per share of common stock is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. 

Recently Issued Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and ensure that there are proper controls in place to ascertain that the Company's financial statements properly reflect the change. New pronouncements assessed by the Company recently are discussed below:

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes Topic 840, Leases ("ASU 2016-02"). The guidance in this new standard requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to the current accounting and eliminates the current real estate-specific provisions for all entities. The guidance also modifies the classification criteria and the accounting for sales-type and direct financing leases for lessors. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02.

In July 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which among other things, these amendments require the measurement of all expected credit losses of financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company is in the process of evaluating the impact of the pronouncement.

Note 3 – Going concern:

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. Since inception, the Company has not achieved profitable operations, and have cumulative losses through October 31, 2016 of $6.3 million. The Company's losses to date raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon the Company's achieving a sustainable level of profitability. The Company intends to continue financing its future development activities and its working capital needs largely from the private sale of its securities, with additional funding from other traditional financing sources, including convertible term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. However, the financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

9

Note 4 – Fair value of financial instruments

The carrying amounts of cash and current liabilities approximate fair value because of the short maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The Company does not hold or issue financial instruments for trading purposes, nor do the Company utilize derivative instruments in the management of the Company's foreign exchange, commodity price or interest rate market risks.

The FASB Codification clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:

Level 1:  Quoted prices in active markets for identical assets or liabilities.

Level 2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Note 5 – Operating Leases

The Company entered into a lease agreement with an affiliate for the Company's corporate office needs, consisting of 6,176 square feet of office space. The lease originally provided for a 31-month period, that commenced in January 2014 through October 31, 2016. The lease was extended in November 2016 for a 5-year period ending October 31, 2021. This lease to the Company is on the same terms and conditions as is the direct lease between the affiliate and the independent lessor. Consequently, the Company believes that the lease terms to the Company are comparable to lease terms the Company would receive directly from third party lessors in the Company's market, because the related party terms mirror the terms of the direct lease between the independent, third party lessor and the affiliated entity.

During the three months ended October 31, 2016 and 2015, rent expense for each period was $16,984. During the nine months ended October 31, 2016 and 2015, rent expense was $50,953 and $50,437, respectively.

As of October 31, 2016, future minimum lease payments are as follows:

For the Fiscal Year Ending January 31,
Remainder of 2017	$	13,250
2018		53,250
2019		54,250
2020		55,250
2021		56,250
2022		42,750
Thereafter		—
Total minimum lease payments	$	275,000

Note 6 – Due to Related Party

The Company borrowed $156,650 from related parties to fund operations during the six months ended October 31, 2016. The loans do not carry an interest rate and do not have a maturity date. As of October 31, 2016, the Company owed related parties $156,650. The Company did not owe any money to related parties as of January 31, 2016.

10

Note 7 – Contingencies

Subsequent to the end of the quarter, the Company was named as a defendant in one civil suit filed with the District Court of the City and County of Denver, Colorado (the "Court"): This discussion of the Headgate Agreement is qualified in its entirety by the provisions of the agreement, which was attached as an Exhibit to the Company's Current Report on Form 8-K filed with the SEC on June 19, 2018.

Note 8 – Subsequent Events

GAAP requires an entity to disclose events that occur after the balance sheet date but before financial statements are issued or are available to be issued ("subsequent events") as well as the date through which an entity has evaluated subsequent events. There are two types of subsequent events. The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, ("recognized subsequent events"). The second type consists of events that provide evidence about conditions that did not exist at the date of the balance sheet but arose subsequent to that date ("non-recognized subsequent events").

Recognized Subsequent Events

Subsequent to the end of the quarter the Company discontinued its rental of real property business and cancelled all remaining leases and settled all remaining related operations. These operations are now presented as discontinued operations on the Company's financial statements. A summary of the discontinued operations is included in Note 2 – Summary of Significant Accounting Policies.

Unrecognized Subsequent Events

Subsequent to the end of the quarter the Company expects to dissolve Sentinel Strainwise, LLC in 2018. The agreement between the Company and the Confederated Tribes of Warm Springs described in the Company's 10-K report for the period ending January 31, 2016 was terminated on or around December 22, 2016. As a result of the termination of the agreement, the funds held by Sentinel Strainwise, LLC, a joint venture company in which the Company holds 50% equity interest, were distributed back to the partners of the joint venture.

Subsequent to the end of the quarter, the Company has entered into management and licensing agreements with a private entity in Puerto Rico 49% owned by Erin Phillips to operate five dispensaries and two cultivation operations in Puerto Rico. While public companies are not currently allowed to own a beneficial interest in licensed cannabis businesses in Puerto Rico, the Company intends to negotiate the right to acquire the private company at an agreed to price in the event that regulations permit public company ownership in the future.

Subsequent to the end of the quarter, in order to continue to fund ongoing California operations, on or around April 6, 2018, the Company entered into a loan agreement ("Loan Agreement") with Green Acres Partners, LLC, a California limited liability company ("Green Acres") whereby Green Acres agreed to loan the Company $205,000 in exchange for a promissory note ("Note") issued by the company in the principal amount of $205,000. The Note matures no later than September 1, 2020, with payments to begin no later than September 1, 2018; however, payments may begin sooner than such date in the event operations in San Diego begin sooner. The Note carries an interest rate of 12% per year, with an 18% default interest rate. The principal balance of the Note may be accelerated upon default or transfer. This discussion of the Note and loan agreement is qualified in its entirety by the provisions of those documents, which are attached hereto as Exhibits. The Company will require additional capital, which it may be required to raise on unfavorable terms, in order to continue its operations.

For additional information on the above subsequent events see the Company's Current Report on Form 8-K filed with the SEC on June 19, 2018.

11

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS

Overview

We were established to provide sophisticated Fulfillment Services to medical and retail stores, and cultivation facilities in the regulated cannabis industry throughout the United States. Such Fulfillment Services would only be provided to stores and facilities located in geographical areas where the governing state and local ordinances allow for the unfettered provisions of such services.

The Fulfillment Services that we currently are able to provide are summarized, as follows:

● Opportunity Assessment: For a standard fee, we will complete an Opportunity Assessment for a client, which would include financial modeling, completed with our proprietary assessment software.

● Application Filing Assistance: Based upon our knowledge of the various rules and regulations of respective state and local jurisdictions, we will provide turn-key application preparation and submission services for a client, and/or provide consulting assistance to a client who is self-preparing their application.

● Branding, Marketing and Administrative Consulting Services: Customers may contract with us to use the Strainwise® name, logo and affinity images in their retail store locations. A monthly fee will permit a branding customer to use the Strainwise® brand at a specific location. In addition, we will assist operators in marketing and managing their businesses, setting up new retail locations and general business planning and execution at an hourly rate. This includes services to establish an efficient, predictable production process, as well as, nutrient recipes for consistent and appealing marijuana strains.

● Accounting and Financial Services: For a monthly fee, we will provide customers with a fully implemented general ledger system, with an industry centric chart of accounts, which enables management to readily monitor and manage all facets of a marijuana medical dispensary and cultivation facility. We will provide bookkeeping, accounts payable processing, cash management, general ledger processing, financial statement preparation, state and municipal sales tax filings, and state and federal income tax compilation and filings.

● Compliance Services: The rules, regulations and state laws governing the production, distribution and retail sale of marijuana can be complex, and compliance may prove cumbersome. Thus, customers may contract with us to implement a compliance process, based upon the number and type of licenses and permits for their specific business. We will provide this service on both an hourly rate and stipulated monthly fee.

● Lending: We will provide loans to individuals and businesses in the cannabis industry.

We do NOT grow marijuana plants, produce marijuana infused products, sell marijuana plants and/or sell marijuana infused products of any nature in any jurisdiction were such activity has not been legalized.

Subsequent to the end of the quarter, through December 2017, we provided rental related activities to with regulated entities, that have been discontinued. In addition to discontinuing rental activities, we discontinued providing services under the Master Service agreements to the Regulated Entities on June 30, 2015. These operations are both presented as discontinued operations in our financial statements.

12

Results of Operations

Comparison of the Three Months Ended October 31, 2016 to the Three Months Ended October 31, 2015

	For the Three Months Ended October 31,						Change
	2016			2015			$			%
Consulting services	$	—		$	—		$	—		—
Cost of consulting services		—			—			—		—
Gross profit		—			—			—		—
Operating costs and expenses
Rents and other occupancy		16,984			16,984			—		—
Compensation		176,406			154,995			21,411		14
Professional, legal and consulting		36,326			121,508			(85,182	)	(70	)
Depreciation and amortization		2,073			2,250			(213	)	(9	)
General and administrative		46,604			22,872			23,732		104
Total operating costs and expenses		278,357			318,609			(40,252	)	(13	)
Loss from continuing operations		(278,357	)		(318,609	)		40,252		(13	)
Other costs and expenses		(385	)		—			(385	)	100
Loss from continuing operations, before provision for taxes on income		(278,742	)		(318,609	)		39,867		(13	)
Provision for taxes on income		—			—			—		—
Loss from continuing operations, net of tax		(278,742	)		(318,609	)		39,867		(13	)
Income (loss) from discontinued operations, net of tax		276,561			(185,212	)		461,773		249
Net income/(loss)	$	(2,181	)	$	(503,821	)	$	501,640		(100	)

Comparison of the Nine Months Ended October 31, 2016 to the Nine Months Ended October 31, 2015

	For the Nine Months Ended October 31,						Change
	2016			2015			$			%
Consulting services	$	—		$	2,000		$	(2,000	)	(100	)
Cost of consulting services		(1,750	)		—			(1,750	)	100
Gross profit		(1,750	)		2,000			3,750		188
Operating costs and expenses
Rents and other occupancy		50,953			50,437			516		1
Compensation		529,519			424,743			104,776		25
Professional, legal and consulting		186,832			233,992			(47,160	)	(20	)
Depreciation and amortization		6,537			6,750			(213	)	(3	)
General and administrative		111,412			40,762			70,650		173
Total operating costs and expenses		885,253			756,684			128,569		17
Loss from continuing operations		(887,003	)		(754,684	)		(132,319	)	18
Other costs and expenses		4,208			—			4,208		100
Loss from continuing operations, before provision for taxes on income		(882,795	)		(754,684	)		(128,111	)	17
Provision for taxes on income		—			—			—		—
Loss from continuing operations, net of tax		(882,795	)		(754,684	)		(128,111	)	17
Income (loss) from discontinued operations, net of tax		184,700			(2,263,723	)		2,448,423		(108	)
Net income/(loss)	$	(698,095	)	$	(3,018,407	)	$	2,320,312		(77	)

13

Material changes in line items in our Statement of Operations for the three and Nine months ended October 31, 2016 as compared to the same periods last year, are discussed below:

● Rent and other occupancy– Rent increased for nine months as the result of the imbedded price increases in our lease.

● Compensation – Compensation increased as a result of discontinuing operations and our focus on our consulting services.

● Professional, legal, and consulting – Professional fees decreased due to reduced regulatory compliance and the Company not having reduced accounting fees during the current periods.

● General and administrative – General and administrative expenses include marketing, travel, and office expenses. These expenses fluctuate from period to period but have been driven by our shift in focus from discontinued operations to consulting services.

Liquidity and Capital Resources

Our net cash flows are as follows (in thousands):

	For the Nine Months Ended July 31,
	2016			2015
Consolidated Statements of Cash Flows Data:
Net cash used in operating activities	$	(517,228	)	$	(1,907,756	)
Net cash used in investing activities		(20,000	)		(75,000	)
Net cash used in/provided by financing activities		393,417			1,311,797
Net change in cash	$	(143,811	)	$	(670,959	)

Operating Activities

Our cash used in operating activities was primarily for compensation expenditures, professional fees, rent expense, general and administrative expenses, and payments to vendors. Cash used in operating activities was partially offset by cash derived from our discontinued operations. Our cash flows from operating activities will continue to be affected principally by the results of operations and the extent to which we increase spending on personnel expenditures and our working capital requirements.

Investing Activities

Our cash used in investing activities was related to our discontinued operations.

Financing Activities

Our cash provided by financing activities was from advances from related parties and funds received from discontinued operations.

Critical Accounting Policies and New Accounting Pronouncements

See Note 2 to the financial statements included as part of this report for a description of the Company's significant accounting policies.

14

Disclosure Controls and Procedures

Under the direction and with the participation of the Company's management, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures as of October 31, 2016. The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its periodic reports with the Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and regulations, and that such information is accumulated and communicated to the Company's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Company's disclosure controls and procedures are designed to provide a reasonable level of assurance of reaching its desired disclosure control objectives. Based upon this evaluation, management concluded that the Company's disclosure controls and procedures were not effective as of October 31, 2016, primarily based on these criteria, due to material weaknesses resulting from our failure to 1) provide correct responsibilities to adequately segregate activity in the area of cash receipts and cash disbursements, 2) effectively implement comprehensive entity level internal controls, and 3) adequately segregate duties within the accounting department due to an insufficient number of staff.

Changes in Internal Controls

There were no changes in the Company's internal control over financial reporting during the quarter ended October 31, 2016, that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

15

PART II

Item 1.     Legal Proceedings

None.

Item 1A.  Risk Factors

None.

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

None.

Item 3.     Defaults Upon Senior Securities.

None.

Item 4.     Mine Safety Disclosures

None.

Item 5.     Other Information.

None.

Item 6.     Exhibit Index

		Incorporated by Reference
Exhibit No.	Description	Form	SEC File  Number	Exhibit	Filing Date
31.1**	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2**	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1***	Certification of the Principal Executive and Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101**	The following materials from STWC Holdings, Inc.'s quarterly report on Form 10-Q for the three months ended October 31, 2016 formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Operations; (iii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Statement of Changes in Stockholders' Deficit; (iv) the Condensed Consolidated Statements of Cash Flows; and (v) related notes to these financial statements.

*	Indicates management contract or compensatory plan or arrangement.
**	Filed herewith
***	Furnished herewith

16

SIGNATURES

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

	STWC HOLDINGS, INC.
October 3, 2018	By:	/s/ Erin Phillips
		Erin Phillips, President, Chief Financial and
		Accounting Officer

17

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Erin Phillips, certify that;

1. I have reviewed this quarterly report on Form 10-Q of STWC Holdings, Inc.;

2. Based on my knowledge, this report, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of condensed financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

October 3, 2018	By:	/s/ Erin Phillips
		Erin Phillips,
		Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Erin Phillips, certify that;

1. I have reviewed this quarterly report on Form 10-Q of STWC Holdings, Inc.;

2. Based on my knowledge, this report, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of condensed financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

October 3, 2018	By:	/s/ Erin Phillips
		Erin Phillips,
		Principal Financial Officer

EX-32.1

Exhibit 32.1

In connection with the Quarterly Report of STWC Holdings, Inc. (the "Company") on Form 10-Q for the period ending October 31, 2016 as filed with the Securities and Exchange Commission (the "Report"), Erin Phillips, the Principal Executive and Financial Officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of her knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects the financial condition and results of the Company.

October 3, 2018	By:	/s/ Erin Phillips
		Erin Phillips, Principal Executive and
		Financial Officer

XML

Document and Entity Information - USD ($)	9 Months Ended
	Oct. 31, 2016	Jul. 31, 2016
Document and Entity Information:
Entity Registrant Name	STWC. Holdings, Inc.
Document Type	10-Q
Document Period End Date	Oct. 31, 2016
Trading Symbol	stwc
Amendment Flag	false
Entity Central Index Key	0001400683
Current Fiscal Year End Date	--01-31
Entity Common Stock, Shares Outstanding		27,140,550
Entity Public Float		$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

XML

CONDENSED BALANCE SHEETS (Unaudited for October 31, 2016) - USD ($)		Oct. 31, 2016		Jan. 31, 2016
Current assets:
Cash		$ 7,500		$ 151,311
Accounts receivable		6,000
Assets of discontinued operations, net		1,465,413		1,417,719
Total current assets		1,478,913		1,569,030
Tenant improvements and office equipment		3,179	[1]	9,167	[2]
Equity method investment in unconsolidated subsidiary		39,159		11,659
Trademark		8,936	[3]	9,485	[4]
Total assets		1,530,187		1,599,341
Current liabilities:
Accounts payable and accrued expenses		292,671		306,128
Due to related party		156,650
Liabilities of discontinued operations		4,204,995		3,719,247
Total current liabilities		4,654,316		4,025,375
Stockholders' deficit
Common stock	[5]	0		0
Additional Paid in Capital		3,152,658		3,152,658
Retained deficit		(6,276,787)		(5,578,692)
Total stockholders' deficit		(3,124,129)		(2,426,034)
Total liabilities and stockholders' deficit		$ 1,530,187		$ 1,599,341

[1] Net of accumulated amortization and depreciation of $21,272 October 31, 2016.

[2] Net of accumulated amortization and depreciation of $15,284 at January 31, 2016.

[3] Net of accumulated amortization of $2,074 at October 31, 2016.

[4] Net of accumulated amortization of $1,525 at January 31, 2016.

[5] No par value, 100,000,000 shares authorized, 27,140,550 issued and outstanding at October 31, 2016 and January 31, 2016.

XML

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Statement of Income
Consulting services				$ 2,000
Cost of consulting services			$ (1,750)
Gross profit			(1,750)	2,000
Operating costs and expenses
Rents and other occupancy	$ 16,984	$ 16,984	50,953	50,437
Compensation	176,406	154,995	529,519	424,743
Professional, legal and consulting	36,326	121,508	186,832	233,992
Depreciation and amortization	2,037	2,250	6,537	6,750
General and administrative	46,604	23,626	111,412	40,762
Total operating costs and expenses	278,357	319,363	885,253	756,684
Loss from continuing operations	(278,357)	(319,363)	(887,003)	(754,684)
Other costs and expenses
Loss on equity investment in unconsolidated subsidiary			7,500
Interest and financing costs	(385)		(3,292)
Loss from continuing operations, before provision for taxes on income	(278,742)	(319,363)	(882,795)	(754,684)
Loss from continuing operations, net of tax	(278,742)	(319,363)	(882,795)	(754,684)
Income (loss) from discontinued operations, net of tax	276,561	(184,458)	184,700	(2,263,723)
Net (loss)	$ (2,181)	$ (503,821)	$ (698,095)	$ (3,018,407)
Basic earnings and fully diluted loss per common share - Continuing operations	$ (0.01)	$ (0.00)	$ (0.03)	$ (0.03)
Basic earnings and fully diluted loss per common share - Discontinued operations	$ 0.01	$ (0.00)	$ (0.00)	$ (0.08)
Basic and fully diluted weighted average number of shares outstanding	27,140,550	30,630,701	27,140,550	27,147,217

XML

CONDENSED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Cash flows from operating activities:
Net (loss)	$ (698,095)	$ (3,018,407)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and Amortization	5,988	6,201
Decrease in trademark	549	549
Income on equity investment in unconsolidated subsidiary	(7,500)
Increase in accounts receivable	(6,000)
Increase in accounts payable and accrued expenses	(13,457)	105,759
Net cash flow used in operating activities from continuing operations	(718,515)	(2,905,898)
Net cash flow used in operating activities from discontinued operations	201,287	(888,533)
Net cash flow used in operating activities	(517,228)	(2,017,365)
Cash flows from investing activities:
Investment in unconsolidated subsidiary	(20,000)	(25,000)
Net cash flow used in investing activities from continuing operations	(20,000)	(25,000)
Net cash flow used in investing activities from discontinued activities		(75,000)
Net cash flow used in investing activities	(20,000)	(100,000)
Cash flows from financing activities:
Cash advances from related parties	156,650
Net cash flows provided by financing activities from continuing operations	156,650
Net cash flow provided by financing activities from discontinued activities	236,767	1,446,406
Net cash flows provided by financing activities	393,417	1,446,406
Net cash flows	(143,811)	(670,959)
Cash and equivalent, beginning of period	151,311	674,495
Cash and equivalent, end of period	7,500	3,536
Supplemental cash flow disclosures:
Cash paid for interest	$ 576,251	$ 47,482

XML

Note 1 - Organization

9 Months Ended

Oct. 31, 2016

Notes

Note 1 - Organization

Note 1 – Organization

STWC HOLDINGS, INC., formerly known as Strainwise, Inc., (identified in these footnotes as "STWC" "we" "us" or the "Company") provides branding marketing, administrative, accounting, financial and compliance services ("Fulfillment Services") to entities in the cannabis retail and production industry. The Company was incorporated in the state of Colorado as a limited liability company on June 8, 2012, and subsequently converted to a Colorado corporation on January 16, 2014.

The Company was established to provide sophisticated Fulfillment Services to medical and retail stores, and cultivation facilities in the regulated cannabis industry throughout the United States. Such Fulfillment Services would only be provided to stores and facilities located in geographical areas where the governing state and local ordinances allow for the unfettered provisions of such services.

The Fulfillment Services that the Company is currently able to provide are summarized, as follows:

         Opportunity Assessment: For a standard fee, the Company will complete an Opportunity Assessment for a client, which would include financial modeling, completed with the Company's proprietary assessment software.

         Application Filing Assistance: Based upon the Company's knowledge of the various rules and regulations of respective state and local jurisdictions, the Company will provide turn-key application preparation and submission services for a client, and/or provide consulting assistance to a client who is self-preparing their application.

         Branding, Marketing and Administrative Consulting Services: Customers may contract with the Company to use the Strainwise®name, logo and affinity images in their retail store locations. A monthly fee will permit a branding customer to use the Strainwise® brand at a specific location. In addition, the Company will assist operators in marketing and managing their businesses, setting up new retail locations and general business planning and execution at an hourly rate. This includes services to establish an efficient, predictable production process, as well as, nutrient recipes for consistent and appealing marijuana strains.

         Accounting and Financial Services: For a monthly fee, the Company will provide a customer with a fully implemented general ledger system, with an industry centric chart of accounts, which enables management to readily monitor and manage all facets of a marijuana medical dispensary and cultivation facility. The Company will provide bookkeeping, accounts payable processing, cash management, general ledger processing, financial statement preparation, state and municipal sales tax filings, and state and federal income tax compilation and filings.

         Compliance Services: The rules, regulations and state laws governing the production, distribution and retail sale of marijuana can be complex, and compliance may prove cumbersome. Thus, customers may contract with the Company to implement a compliance process, based upon the number and type of licenses and permits for their specific business. The Company will provide this service on both an hourly rate and stipulated monthly fee.

         Lending: The Company will provide loans to individuals and businesses in the cannabis industry.

The Company does NOT grow marijuana plants, produce marijuana infused products, sell marijuana plants and/or sell marijuana infused products of any nature in any jurisdiction were such activity has not been legalized.

XML

Note 2 - Summary of Significant Accounting Policies

9 Months Ended

Oct. 31, 2016

Notes

Note 2 - Summary of Significant Accounting Policies

Note 2 – Summary of significant accounting policies

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

Cash and cash equivalents – For purposes of the statement of cash flows, the Company considers all cash in banks, money market funds, and certificates of deposit with a maturity of less than three months to be cash equivalents. Under current banking regulations, not all marijuana centric entities are afforded normal banking privileges. And thus, because of the Company's perceived association with the Regulated Entities, the Company has not been able to maintain a corporate bank account at any federally or state charted banking institution.

Tenant improvements and office equipment – Tenant improvements and office equipment are recorded at cost and is depreciated under straight line methods over each item's estimated useful life. Management reviews the Company's tenant improvements and office equipment for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Maintenance and repairs of property and equipment are charged to operations. Major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts and any gain or loss is included in operations.

Tenant improvements and office equipment, net of accumulated amortization and depreciation are comprised of the following:

	October 31, 2016			January 31, 2016
Leasehold improvements	$	2,200		$	2,200
Office equipment, furniture and fixtures		22,251			22,251
		24,451			24,451
Accumulated amortization and depreciation		(21,272	)		(15,284	)
	$	3,179		$	9,167

Tenant improvements are amortized over the term of the lease, and office equipment is depreciated over its useful lives, which has been deemed by management to be three years. Amortization and depreciation expense related to tenant improvements and office equipment for each of the three months ended October 31, 2016 and 2015 was $1,854 and $2,067, respectively. Amortization and depreciation expense related to tenant improvements and office equipment for each of the nine months ended October 31, 2016 and 2015 was $5,988 and $6,201, respectively.

Income taxes – The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Investment in Unconsolidated Entity – The Company acquired a 50% interest in SentinelStrainwise, LLC ("SSL") in June 2015 for $25,000. The Company accounts for its investment SSL using the equity method based on the ownership interest. Accordingly, the investment was recorded at cost, and adjustments to the carrying amount of the investment to recognize the Company's share of the earnings or losses of SSL are made in each reporting period. In accordance with Accounting Standard Codification 810-10, Consolidation-Overall, the Company evaluated the fair value of the Company's investment in SLL and determined that there no adjustment required to the carrying amount of the Company's original investment, other than the recognition of the Company's share of the operating income $7,500 for the nine months ended October 31, 2016.

Long-Lived Assets – In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.

Trademarks – Trademarks and other intangible assets are stated at cost and are amortized using the straight-line method over fifteen years. Accumulated amortization was $2,074 and $1,525 at October 31, 2016 and January 31, 2016, respectively, and consisted of the following at October 31, 2016:

	Gross Carrying Amount		Accumulated Amortization		Net
Trademarks	$	11,010	$	2,074	$	8,936

Discontinued Operations – During November 2017, the Company settled all remaining operations related to its rental activities with regulated entities. As a consequence of the disposition, the operating results and the assets and liabilities of the discontinued operations, which formerly comprised the rental operations, are presented separately in the Company's financial statements. Summarized financial information for the discontinued rental business is shown below. Prior period balances have been reclassified to present the operations of the rental business as a discontinued operation.

Discontinued Operations Income Statement
	Three Months Ended October 31,						Nine Months Ended October 31,
	2016			2015			2016			2015
Rental income from the Regulated Entities (Affiliates)	$	973,798		$	1,063,125		$	2,921,393		$	3,480,090
Total revenues		973,798			1,063,125			2,921,393			3,480,090
Operating costs and expenses
Reserve for amounts due from Regulated Entities (Affiliates)		(325,807	)		19,850			(657,018	)		1,412,234
Rents and other occupancy		800,438			912,681			2,425,100			3,069,548
Depreciation and amortization		54,554			45,876			136,418			193,873
Total operating costs and expenses		529,185			978,407			1,904,500			4,675,655
Operating (loss)/income from discontinued operations		444,613			84,718			1,016,893			(1,195,565	)
Other income and (expenses)
Loss from cancellation of lease and related tenant improvement loan		—			(62,503	)		—			(62,503	)
Interest expense		(168,052	)		(207,061	)		(832,193	)		(622,968	)
Loss from discontinued operations	$	276,561		$	(184,458	)	$	184,700		$	(1,881,036	)

The Company anticipates continued expenses through the end of calendar 2017 related to the discontinued operations.

The individual assets and liabilities of the discontinued agricultural business are combined in the captions "Assets of discontinued operation" and "Liabilities of discontinued operation" in the consolidated Balance Sheet. The carrying amounts of the major classes of assets and liabilities included part of the discontinued business are presented in the following table:

Discontinued Operations Balance Sheet
	October 31, 2016		January 31, 2016
ASSETS
Due from Regulated Entities (Affiliates), net of collection allowance reserve of $2,565,516 and $3,222,535 at October 31, 2016 and January 31, 2016, respectively.	$	—	$	—
Prepaid rent		134,112		—
Tenant improvements and office equipment, net of accumulated amortization and depreciation of $186,443 and $62,025 at October 31, 2016 and January 31, 2016, respectively		505,968		630,386
Commercial operating property, net of accumulated amortization of $34,667 and $22,667 at October 31, 2016 and January 31, 2016, respectively		625,333		637,333
Prepaid expenses and other assets		200,000		150,000
Total assets	$	1,465,413	$	1,417,719
LIABILITIES
Accounts payable and accrued expenses	$	—	$	34,477
Settlement of equipment advance payable				150,100
Accrued interest payable		397,692		138,458
Deferred rent		1,139,643		965,319
Mortgage payable		202,660		357,010
Convertible notes payable		—		2,073,883
Notes payable		2,465,000		—
Total liabilities	$	4,204,995	$	3,719,247

The Company discontinued providing services under the Master Service agreements to the Regulated Entities on June 30, 2015. There were no components of major assets and liabilities associated with the discontinued operations at October 31, 2016 and 2015 and at January 31, 2016. The summarized discontinued operating results for the three Nine months ended October 31, 2015, respectively, are, as follows:

	Three Months Ended October 31, 2015		Nine Months Ended October 31, 2015
Revenues	$	—	$	764,071
Expenses		—		(1,146,758	)
	$	—	$	(382,687	)

Comprehensive Income (Loss) - Comprehensive income is defined as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. Since the Company's inception there have been no differences between the Company's comprehensive loss and net loss.

Net income per share of common stock – The Company has adopted applicable FASB Codification regarding Earnings per Share, which require presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic earnings per share of common stock is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. 

Recently Issued Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and ensure that there are proper controls in place to ascertain that the Company's financial statements properly reflect the change. New pronouncements assessed by the Company recently are discussed below:

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes Topic 840, Leases ("ASU 2016-02"). The guidance in this new standard requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to the current accounting and eliminates the current real estate-specific provisions for all entities. The guidance also modifies the classification criteria and the accounting for sales-type and direct financing leases for lessors. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02.

In July 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which among other things, these amendments require the measurement of all expected credit losses of financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company is in the process of evaluating the impact of the pronouncement.

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Note 3 - Going Concern

9 Months Ended

Oct. 31, 2016

Notes

Note 3 - Going Concern:

Note 3 – Going concern:

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. Since inception, the Company has not achieved profitable operations, and have cumulative losses through October 31, 2016 of $6.3 million. The Company's losses to date raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon the Company's achieving a sustainable level of profitability. The Company intends to continue financing its future development activities and its working capital needs largely from the private sale of its securities, with additional funding from other traditional financing sources, including convertible term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. However, the financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

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Note 4 - Fair Value of Financial Instruments

9 Months Ended

Oct. 31, 2016

Notes

Note 4 - Fair Value of Financial Instruments

Note 4 – Fair value of financial instruments

The carrying amounts of cash and current liabilities approximate fair value because of the short maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The Company does not hold or issue financial instruments for trading purposes, nor do the Company utilize derivative instruments in the management of the Company's foreign exchange, commodity price or interest rate market risks.

The FASB Codification clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:

Level 1:  Quoted prices in active markets for identical assets or liabilities.

Level 2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

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Note 5 - Operating Leases

9 Months Ended

Oct. 31, 2016

Notes

Note 5 - Operating Leases

Note 5 – Operating Leases

The Company entered into a lease agreement with an affiliate for the Company's corporate office needs, consisting of 6,176 square feet of office space. The lease originally provided for a 31-month period, that commenced in January 2014 through October 31, 2016. The lease was extended in November 2016 for a 5-year period ending October 31, 2021. This lease to the Company is on the same terms and conditions as is the direct lease between the affiliate and the independent lessor. Consequently, the Company believes that the lease terms to the Company are comparable to lease terms the Company would receive directly from third party lessors in the Company's market, because the related party terms mirror the terms of the direct lease between the independent, third party lessor and the affiliated entity.

During the three months ended October 31, 2016 and 2015, rent expense for each period was $16,984. During the nine months ended October 31, 2016 and 2015, rent expense was $50,953 and $50,437, respectively.

As of October 31, 2016, future minimum lease payments are as follows:

For the Fiscal Year Ending January 31,
Remainder of 2017	$	13,250
2018		53,250
2019		54,250
2020		55,250
2021		56,250
2022		42,750
Thereafter		—
Total minimum lease payments	$	275,000

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Note 6 - Due To Related Party

9 Months Ended

Oct. 31, 2016

Notes

Note 6 - Due To Related Party

Note 6 – Due to Related Party

The Company borrowed $156,650 from related parties to fund operations during the six months ended October 31, 2016. The loans do not carry an interest rate and do not have a maturity date. As of October 31, 2016, the Company owed related parties $156,650. The Company did not owe any money to related parties as of January 31, 2016.

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Note 7 - Contingencies

9 Months Ended

Oct. 31, 2016

Notes

Note 7 - Contingencies

Note 7 – Contingencies

Subsequent to the end of the quarter, the Company was named as a defendant in one civil suit filed with the District Court of the City and County of Denver, Colorado (the "Court"): This discussion of the Headgate Agreement is qualified in its entirety by the provisions of the agreement, which was attached as an Exhibit to the Company's Current Report on Form 8-K filed with the SEC on June 19, 2018.

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Note 8 - Subsequent Events

9 Months Ended

Oct. 31, 2016

Notes

Note 8 - Subsequent Events

Note 8 – Subsequent Events

GAAP requires an entity to disclose events that occur after the balance sheet date but before financial statements are issued or are available to be issued ("subsequent events") as well as the date through which an entity has evaluated subsequent events. There are two types of subsequent events. The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, ("recognized subsequent events"). The second type consists of events that provide evidence about conditions that did not exist at the date of the balance sheet but arose subsequent to that date ("non-recognized subsequent events").

Recognized Subsequent Events

Subsequent to the end of the quarter the Company discontinued its rental of real property business and cancelled all remaining leases and settled all remaining related operations. These operations are now presented as discontinued operations on the Company's financial statements. A summary of the discontinued operations is included in Note 2 – Summary of Significant Accounting Policies.

Unrecognized Subsequent Events

Subsequent to the end of the quarter the Company expects to dissolve Sentinel Strainwise, LLC in 2018. The agreement between the Company and the Confederated Tribes of Warm Springs described in the Company's 10-K report for the period ending January 31, 2016 was terminated on or around December 22, 2016. As a result of the termination of the agreement, the funds held by Sentinel Strainwise, LLC, a joint venture company in which the Company holds 50% equity interest, were distributed back to the partners of the joint venture.

Subsequent to the end of the quarter, the Company has entered into management and licensing agreements with a private entity in Puerto Rico 49% owned by Erin Phillips to operate five dispensaries and two cultivation operations in Puerto Rico. While public companies are not currently allowed to own a beneficial interest in licensed cannabis businesses in Puerto Rico, the Company intends to negotiate the right to acquire the private company at an agreed to price in the event that regulations permit public company ownership in the future.

Subsequent to the end of the quarter, in order to continue to fund ongoing California operations, on or around April 6, 2018, the Company entered into a loan agreement ("Loan Agreement") with Green Acres Partners, LLC, a California limited liability company ("Green Acres") whereby Green Acres agreed to loan the Company $205,000 in exchange for a promissory note ("Note") issued by the company in the principal amount of $205,000. The Note matures no later than September 1, 2020, with payments to begin no later than September 1, 2018; however, payments may begin sooner than such date in the event operations in San Diego begin sooner. The Note carries an interest rate of 12% per year, with an 18% default interest rate. The principal balance of the Note may be accelerated upon default or transfer. This discussion of the Note and loan agreement is qualified in its entirety by the provisions of those documents, which are attached hereto as Exhibits. The Company will require additional capital, which it may be required to raise on unfavorable terms, in order to continue its operations.

For additional information on the above subsequent events see the Company's Current Report on Form 8-K filed with the SEC on June 19, 2018.

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Note 2 - Summary of Significant Accounting Policies: Use of Estimates, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Use of Estimates, Policy

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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Cash and Cash Equivalents, Policy

Cash and cash equivalents – For purposes of the statement of cash flows, the Company considers all cash in banks, money market funds, and certificates of deposit with a maturity of less than three months to be cash equivalents. Under current banking regulations, not all marijuana centric entities are afforded normal banking privileges. And thus, because of the Company's perceived association with the Regulated Entities, the Company has not been able to maintain a corporate bank account at any federally or state charted banking institution.

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Note 2 - Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Property, Plant and Equipment, Policy

Tenant improvements and office equipment – Tenant improvements and office equipment are recorded at cost and is depreciated under straight line methods over each item's estimated useful life. Management reviews the Company's tenant improvements and office equipment for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Maintenance and repairs of property and equipment are charged to operations. Major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts and any gain or loss is included in operations.

Tenant improvements and office equipment, net of accumulated amortization and depreciation are comprised of the following:

	October 31, 2016			January 31, 2016
Leasehold improvements	$	2,200		$	2,200
Office equipment, furniture and fixtures		22,251			22,251
		24,451			24,451
Accumulated amortization and depreciation		(21,272	)		(15,284	)
	$	3,179		$	9,167

Tenant improvements are amortized over the term of the lease, and office equipment is depreciated over its useful lives, which has been deemed by management to be three years. Amortization and depreciation expense related to tenant improvements and office equipment for each of the three months ended October 31, 2016 and 2015 was $1,854 and $2,067, respectively. Amortization and depreciation expense related to tenant improvements and office equipment for each of the nine months ended October 31, 2016 and 2015 was $5,988 and $6,201, respectively.

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Note 2 - Summary of Significant Accounting Policies: Income Tax, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Income Tax, Policy

Income taxes – The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

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Note 2 - Summary of Significant Accounting Policies: Investment, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Investment, Policy

Investment in Unconsolidated Entity – The Company acquired a 50% interest in SentinelStrainwise, LLC ("SSL") in June 2015 for $25,000. The Company accounts for its investment SSL using the equity method based on the ownership interest. Accordingly, the investment was recorded at cost, and adjustments to the carrying amount of the investment to recognize the Company's share of the earnings or losses of SSL are made in each reporting period. In accordance with Accounting Standard Codification 810-10, Consolidation-Overall, the Company evaluated the fair value of the Company's investment in SLL and determined that there no adjustment required to the carrying amount of the Company's original investment, other than the recognition of the Company's share of the operating income $7,500 for the nine months ended October 31, 2016.

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Note 2 - Summary of Significant Accounting Policies: Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy

Long-Lived Assets – In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.

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Note 2 - Summary of Significant Accounting Policies: Goodwill and Intangible Assets, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Goodwill and Intangible Assets, Policy

Trademarks – Trademarks and other intangible assets are stated at cost and are amortized using the straight-line method over fifteen years. Accumulated amortization was $2,074 and $1,525 at October 31, 2016 and January 31, 2016, respectively, and consisted of the following at October 31, 2016:

	Gross Carrying Amount		Accumulated Amortization		Net
Trademarks	$	11,010	$	2,074	$	8,936

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Note 2 - Summary of Significant Accounting Policies: Discontinued Operations, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Discontinued Operations, Policy

Discontinued Operations – During November 2017, the Company settled all remaining operations related to its rental activities with regulated entities. As a consequence of the disposition, the operating results and the assets and liabilities of the discontinued operations, which formerly comprised the rental operations, are presented separately in the Company's financial statements. Summarized financial information for the discontinued rental business is shown below. Prior period balances have been reclassified to present the operations of the rental business as a discontinued operation.

Discontinued Operations Income Statement
	Three Months Ended October 31,						Nine Months Ended October 31,
	2016			2015			2016			2015
Rental income from the Regulated Entities (Affiliates)	$	973,798		$	1,063,125		$	2,921,393		$	3,480,090
Total revenues		973,798			1,063,125			2,921,393			3,480,090
Operating costs and expenses
Reserve for amounts due from Regulated Entities (Affiliates)		(325,807	)		19,850			(657,018	)		1,412,234
Rents and other occupancy		800,438			912,681			2,425,100			3,069,548
Depreciation and amortization		54,554			45,876			136,418			193,873
Total operating costs and expenses		529,185			978,407			1,904,500			4,675,655
Operating (loss)/income from discontinued operations		444,613			84,718			1,016,893			(1,195,565	)
Other income and (expenses)
Loss from cancellation of lease and related tenant improvement loan		—			(62,503	)		—			(62,503	)
Interest expense		(168,052	)		(207,061	)		(832,193	)		(622,968	)
Loss from discontinued operations	$	276,561		$	(184,458	)	$	184,700		$	(1,881,036	)

The Company anticipates continued expenses through the end of calendar 2017 related to the discontinued operations.

The individual assets and liabilities of the discontinued agricultural business are combined in the captions "Assets of discontinued operation" and "Liabilities of discontinued operation" in the consolidated Balance Sheet. The carrying amounts of the major classes of assets and liabilities included part of the discontinued business are presented in the following table:

Discontinued Operations Balance Sheet
	October 31, 2016		January 31, 2016
ASSETS
Due from Regulated Entities (Affiliates), net of collection allowance reserve of $2,565,516 and $3,222,535 at October 31, 2016 and January 31, 2016, respectively.	$	—	$	—
Prepaid rent		134,112		—
Tenant improvements and office equipment, net of accumulated amortization and depreciation of $186,443 and $62,025 at October 31, 2016 and January 31, 2016, respectively		505,968		630,386
Commercial operating property, net of accumulated amortization of $34,667 and $22,667 at October 31, 2016 and January 31, 2016, respectively		625,333		637,333
Prepaid expenses and other assets		200,000		150,000
Total assets	$	1,465,413	$	1,417,719
LIABILITIES
Accounts payable and accrued expenses	$	—	$	34,477
Settlement of equipment advance payable				150,100
Accrued interest payable		397,692		138,458
Deferred rent		1,139,643		965,319
Mortgage payable		202,660		357,010
Convertible notes payable		—		2,073,883
Notes payable		2,465,000		—
Total liabilities	$	4,204,995	$	3,719,247

The Company discontinued providing services under the Master Service agreements to the Regulated Entities on June 30, 2015. There were no components of major assets and liabilities associated with the discontinued operations at October 31, 2016 and 2015 and at January 31, 2016. The summarized discontinued operating results for the three Nine months ended October 31, 2015, respectively, are, as follows:

	Three Months Ended October 31, 2015		Nine Months Ended October 31, 2015
Revenues	$	—	$	764,071
Expenses		—		(1,146,758	)
	$	—	$	(382,687	)

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Note 2 - Summary of Significant Accounting Policies: Comprehensive Income, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Comprehensive Income, Policy

Comprehensive Income (Loss) - Comprehensive income is defined as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. Since the Company's inception there have been no differences between the Company's comprehensive loss and net loss.

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Note 2 - Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Earnings Per Share, Policy

Net income per share of common stock – The Company has adopted applicable FASB Codification regarding Earnings per Share, which require presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic earnings per share of common stock is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. 

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Note 2 - Summary of Significant Accounting Policies: Recently Issued Accounting Pronouncements (Policies)

9 Months Ended

Oct. 31, 2016

Policies

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and ensure that there are proper controls in place to ascertain that the Company's financial statements properly reflect the change. New pronouncements assessed by the Company recently are discussed below:

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes Topic 840, Leases ("ASU 2016-02"). The guidance in this new standard requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to the current accounting and eliminates the current real estate-specific provisions for all entities. The guidance also modifies the classification criteria and the accounting for sales-type and direct financing leases for lessors. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02.

In July 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which among other things, these amendments require the measurement of all expected credit losses of financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company is in the process of evaluating the impact of the pronouncement.

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Note 2 - Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy: Property, Plant and Equipment (Tables)

9 Months Ended

Oct. 31, 2016

Tables/Schedules

Property, Plant and Equipment

	October 31, 2016			January 31, 2016
Leasehold improvements	$	2,200		$	2,200
Office equipment, furniture and fixtures		22,251			22,251
		24,451			24,451
Accumulated amortization and depreciation		(21,272	)		(15,284	)
	$	3,179		$	9,167

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Note 2 - Summary of Significant Accounting Policies: Goodwill and Intangible Assets, Policy: Schedule of Intangible Assets and Goodwill (Tables)

9 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Intangible Assets and Goodwill

	Gross Carrying Amount		Accumulated Amortization		Net
Trademarks	$	11,010	$	2,074	$	8,936

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Note 2 - Summary of Significant Accounting Policies: Discontinued Operations, Policy: Disposal Groups, Including Discontinued Operations (Tables)

9 Months Ended

Oct. 31, 2016

Tables/Schedules

Disposal Groups, Including Discontinued Operations

Discontinued Operations Income Statement
	Three Months Ended October 31,						Nine Months Ended October 31,
	2016			2015			2016			2015
Rental income from the Regulated Entities (Affiliates)	$	973,798		$	1,063,125		$	2,921,393		$	3,480,090
Total revenues		973,798			1,063,125			2,921,393			3,480,090
Operating costs and expenses
Reserve for amounts due from Regulated Entities (Affiliates)		(325,807	)		19,850			(657,018	)		1,412,234
Rents and other occupancy		800,438			912,681			2,425,100			3,069,548
Depreciation and amortization		54,554			45,876			136,418			193,873
Total operating costs and expenses		529,185			978,407			1,904,500			4,675,655
Operating (loss)/income from discontinued operations		444,613			84,718			1,016,893			(1,195,565	)
Other income and (expenses)
Loss from cancellation of lease and related tenant improvement loan		—			(62,503	)		—			(62,503	)
Interest expense		(168,052	)		(207,061	)		(832,193	)		(622,968	)
Loss from discontinued operations	$	276,561		$	(184,458	)	$	184,700		$	(1,881,036	)

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Note 2 - Summary of Significant Accounting Policies: Discontinued Operations, Policy: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Tables)

9 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

Discontinued Operations Balance Sheet
	October 31, 2016		January 31, 2016
ASSETS
Due from Regulated Entities (Affiliates), net of collection allowance reserve of $2,565,516 and $3,222,535 at October 31, 2016 and January 31, 2016, respectively.	$	—	$	—
Prepaid rent		134,112		—
Tenant improvements and office equipment, net of accumulated amortization and depreciation of $186,443 and $62,025 at October 31, 2016 and January 31, 2016, respectively		505,968		630,386
Commercial operating property, net of accumulated amortization of $34,667 and $22,667 at October 31, 2016 and January 31, 2016, respectively		625,333		637,333
Prepaid expenses and other assets		200,000		150,000
Total assets	$	1,465,413	$	1,417,719
LIABILITIES
Accounts payable and accrued expenses	$	—	$	34,477
Settlement of equipment advance payable				150,100
Accrued interest payable		397,692		138,458
Deferred rent		1,139,643		965,319
Mortgage payable		202,660		357,010
Convertible notes payable		—		2,073,883
Notes payable		2,465,000		—
Total liabilities	$	4,204,995	$	3,719,247

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Note 2 - Summary of Significant Accounting Policies: Discontinued Operations, Policy: Schedule of Other Nonoperating Income (Expense) (Tables)

9 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Other Nonoperating Income (Expense)

	Three Months Ended October 31, 2015		Nine Months Ended October 31, 2015
Revenues	$	—	$	764,071
Expenses		—		(1,146,758	)
	$	—	$	(382,687	)

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Note 5 - Operating Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)

9 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Future Minimum Rental Payments for Operating Leases

For the Fiscal Year Ending January 31,
Remainder of 2017	$	13,250
2018		53,250
2019		54,250
2020		55,250
2021		56,250
2022		42,750
Thereafter		—
Total minimum lease payments	$	275,000

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Note 2 - Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy: Property, Plant and Equipment (Details) - USD ($)	Oct. 31, 2016	Jan. 31, 2016
Details
Leasehold Improvements, Gross	$ 2,200	$ 2,200
Furniture and Fixtures, Gross	$ 22,251	$ 22,251

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Note 2 - Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Details
Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment, Period Increase (Decrease)	$ 1,854	$ 2,067	$ 5,988	$ 6,201

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Note 2 - Summary of Significant Accounting Policies: Goodwill and Intangible Assets, Policy (Details) - USD ($)	Oct. 31, 2016	Jan. 31, 2016
Details
Finite-Lived Intangible Assets, Accumulated Amortization	$ 2,074	$ 1,525

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Note 5 - Operating Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Details
Rents and other occupancy	$ 16,984	$ 16,984	$ 50,953	$ 50,437

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Note 6 - Due To Related Party (Details)	9 Months Ended
	Oct. 31, 2016 USD ($)
Details
Cash advances from related parties	$ 156,650
Due to related party	$ 156,650