STWC. Holdings, Inc.
0001400683
--01-31
stwc
Non-accelerated Filer
Yes
true
true
false
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2019
Q3
10-Q
2018-10-31
000-52825
208980078
1350 Independence St., Suite 300
Lakewood
CO
80215
Address of principal executive offices
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<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Note 1 – Organization</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>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, cultivation, and manufacturing industry (the “Regulated Entities”). 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. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company was established to provide sophisticated Fulfillment Services to medical and retail stores, cultivation, and manufacturing 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 provision of such services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Fulfillment Services that the Company is currently able to provide are summarized, as follows: </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <ul type="disc" style='margin-top:0in'> <li style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'>Opportunity Assessment:<font style='line-height:115%'> For a standard fee, we will complete an Opportunity Assessment for a client, which would include financial modeling, completed with our proprietary assessment software.</font></li> </ul> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:3.2pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='font-family:Symbol'>· </font>Application Filing Assistance: Based upon our knowledge of the various rules and regulations of respective state and local jurisdictions, the Company<font style='line-height:115%'> 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.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:3.2pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:3.2pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='font-family:Symbol'>· </font><font style='letter-spacing:-.05pt'>Branding, Marketing and Administrative C</font>on<font style='letter-spacing:-.1pt'>s</font>ul<font style='letter-spacing:-.05pt'>t</font><font style='letter-spacing:.05pt'>i</font>ng S<font style='letter-spacing:-.1pt'>e</font>rv<font style='letter-spacing:-.05pt'>i</font>ce<font style='letter-spacing:-.05pt'>s</font>: C<font style='letter-spacing:.2pt'>ustomers may contract with the Company to use</font><font style='letter-spacing:1.3pt'> the </font>S<font style='letter-spacing:-.1pt'>t</font><font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>i</font>n<font style='letter-spacing:-.05pt'>w</font><font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.1pt'>s</font>e® <font style='letter-spacing:-.1pt'>n</font>a<font style='letter-spacing:-.15pt'>m</font>e, <font style='letter-spacing:.05pt'>l</font>o<font style='letter-spacing:-.1pt'>g</font>o and a<font style='letter-spacing:.05pt'>f</font><font style='letter-spacing:-.1pt'>f</font><font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.1pt'>n</font><font style='letter-spacing:.05pt'>it</font>y <font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.2pt'>m</font>a<font style='letter-spacing:-.1pt'>g</font>es <font style='letter-spacing:.05pt'>i</font>n <font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.1pt'>h</font>e<font style='letter-spacing:-.05pt'>i</font>r <font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>e</font><font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>i</font>l s<font style='letter-spacing:.05pt'>t</font>o<font style='letter-spacing:-.1pt'>r</font>e <font style='letter-spacing:.05pt'>l</font><font style='letter-spacing:-.1pt'>o</font>ca<font style='letter-spacing:-.05pt'>t</font><font style='letter-spacing:.05pt'>i</font>o<font style='letter-spacing:-.1pt'>n</font>s. <font style='letter-spacing:.1pt'>A monthly </font><font style='letter-spacing:-.1pt'>f</font>ee will <font style='letter-spacing:-.1pt'>p</font>e<font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.2pt'>m</font><font style='letter-spacing:.05pt'>it</font> <font style='letter-spacing:.05pt'>a </font>b<font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>a</font>nd<font style='letter-spacing:-.05pt'>i</font>ng customer <font style='letter-spacing:.05pt'>t</font>o use <font style='letter-spacing:.05pt'>t</font>he <font style='letter-spacing:-.15pt'>S</font><font style='letter-spacing:.05pt'>tr</font><font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>i</font>n<font style='letter-spacing:-.05pt'>wi</font>se® b<font style='letter-spacing:-.1pt'>r</font>a<font style='letter-spacing:-.1pt'>n</font>d at a <font style='letter-spacing:-.1pt'>s</font>pe<font style='letter-spacing:-.1pt'>c</font><font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.1pt'>f</font><font style='letter-spacing:.05pt'>i</font>c <font style='letter-spacing:.05pt'>l</font>oc<font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.05pt'>i</font>on. <font style='letter-spacing:-.2pt'>I</font>n add<font style='letter-spacing:-.05pt'>i</font><font style='letter-spacing:.05pt'>ti</font><font style='letter-spacing:-.1pt'>o</font>n, the Company will a<font style='letter-spacing:-.1pt'>s</font>s<font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.1pt'>s</font>t <font style='letter-spacing:.05pt'>operators in </font>marketing and <font style='letter-spacing:.15pt'>managing </font><font style='letter-spacing:.05pt'>t</font>he<font style='letter-spacing:-.05pt'>i</font>r bus<font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.1pt'>n</font>e<font style='letter-spacing:.05pt'>s</font><font style='letter-spacing:-.1pt'>s</font>e<font style='letter-spacing:.05pt'>s</font>, s<font style='letter-spacing:-.1pt'>e</font><font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.05pt'>t</font><font style='letter-spacing:.05pt'>i</font>ng up new re<font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>i</font>l<font style='letter-spacing:.05pt'> l</font><font style='letter-spacing:-.1pt'>o</font>c<font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>ti</font>o<font style='letter-spacing:-.1pt'>n</font>s <font style='letter-spacing:.05pt'>a</font>nd <font style='letter-spacing:-.1pt'>g</font>ene<font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>a</font>l bus<font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.1pt'>n</font>e<font style='letter-spacing:.05pt'>s</font>s <font style='letter-spacing:-.1pt'>p</font><font style='letter-spacing:.05pt'>l</font>an<font style='letter-spacing:-.1pt'>n</font><font style='letter-spacing:.05pt'>i</font>ng and exe<font style='letter-spacing:-.1pt'>c</font>u<font style='letter-spacing:.05pt'>ti</font><font style='letter-spacing:-.1pt'>o</font>n at an ho<font style='letter-spacing:-.1pt'>u</font><font style='letter-spacing:.05pt'>rl</font>y <font style='letter-spacing:.05pt'>r</font>a<font style='letter-spacing:-.05pt'>t</font>e. <font style='letter-spacing:.1pt'>T</font>h<font style='letter-spacing:-.05pt'>i</font>s <font style='letter-spacing:.05pt'>i</font>nc<font style='letter-spacing:.05pt'>l</font>ud<font style='letter-spacing:-.1pt'>e</font>s s<font style='letter-spacing:-.1pt'>e</font><font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>v</font><font style='letter-spacing:.05pt'>i</font>ces to <font style='letter-spacing:-.1pt'>e</font>s<font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.1pt'>a</font>b<font style='letter-spacing:-.05pt'>l</font><font style='letter-spacing:.05pt'>i</font>sh <font style='letter-spacing:-.1pt'>a</font>n e<font style='letter-spacing:.05pt'>f</font><font style='letter-spacing:-.1pt'>f</font><font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.1pt'>c</font><font style='letter-spacing:.05pt'>i</font>e<font style='letter-spacing:-.1pt'>n</font><font style='letter-spacing:.05pt'>t</font>, p<font style='letter-spacing:.05pt'>r</font>e<font style='letter-spacing:-.1pt'>d</font><font style='letter-spacing:.05pt'>i</font><font style='letter-spacing:-.1pt'>c</font><font style='letter-spacing:.05pt'>t</font>a<font style='letter-spacing:-.1pt'>b</font><font style='letter-spacing:.05pt'>l</font>e p<font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>o</font>d<font style='letter-spacing:-.1pt'>u</font>c<font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.05pt'>i</font>on p<font style='letter-spacing:.05pt'>r</font>o<font style='letter-spacing:-.1pt'>c</font>e<font style='letter-spacing:.05pt'>s</font>s, <font style='letter-spacing:-.1pt'>a</font>s <font style='letter-spacing:-.05pt'>w</font>e<font style='letter-spacing:.05pt'>l</font>l <font style='letter-spacing:-.1pt'>a</font>s, nu<font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.1pt'>r</font><font style='letter-spacing:.05pt'>i</font>e<font style='letter-spacing:-.1pt'>n</font>t<font style='letter-spacing:.05pt'> r</font>e<font style='letter-spacing:-.1pt'>c</font><font style='letter-spacing:.05pt'>i</font>p<font style='letter-spacing:-.1pt'>e</font>s <font style='letter-spacing:.05pt'>f</font>or c<font style='letter-spacing:-.1pt'>o</font>ns<font style='letter-spacing:-.05pt'>i</font>s<font style='letter-spacing:-.05pt'>t</font><font style='letter-spacing:-.1pt'>e</font>nt and app<font style='letter-spacing:-.1pt'>e</font>a<font style='letter-spacing:-.05pt'>l</font><font style='letter-spacing:.05pt'>i</font>ng <font style='letter-spacing:-.2pt'>m</font>a<font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.05pt'>i</font><font style='letter-spacing:.15pt'>j</font>uana s<font style='letter-spacing:-.05pt'>t</font><font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>i</font>ns.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:8.55pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:1.8pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='font-family:Symbol;letter-spacing:-.05pt'>· </font><font style='letter-spacing:-.05pt'>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. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:1.8pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:1.8pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='font-family:Symbol'>· </font><font style='letter-spacing:-.05pt'>C</font>o<font style='letter-spacing:.05pt'>m</font>p<font style='letter-spacing:-.1pt'>l</font><font style='letter-spacing:.05pt'>i</font>anc<font style='letter-spacing:-.1pt'>e Services</font>: <font style='letter-spacing:.1pt'>T</font>he <font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>u</font><font style='letter-spacing:.05pt'>l</font>e<font style='letter-spacing:.05pt'>s</font>, <font style='letter-spacing:-.1pt'>r</font>e<font style='letter-spacing:-.1pt'>g</font>u<font style='letter-spacing:.05pt'>l</font>a<font style='letter-spacing:-.05pt'>t</font><font style='letter-spacing:.05pt'>i</font>ons and s<font style='letter-spacing:-.05pt'>t</font>a<font style='letter-spacing:-.05pt'>t</font>e <font style='letter-spacing:-.05pt'>l</font>aws <font style='letter-spacing:-.1pt'>g</font>o<font style='letter-spacing:-.1pt'>v</font>e<font style='letter-spacing:.05pt'>r</font>n<font style='letter-spacing:.05pt'>i</font>ng <font style='letter-spacing:.05pt'>t</font>he p<font style='letter-spacing:-.1pt'>r</font>odu<font style='letter-spacing:-.1pt'>c</font><font style='letter-spacing:.05pt'>ti</font><font style='letter-spacing:-.1pt'>o</font>n, <font style='letter-spacing:-.1pt'>d</font><font style='letter-spacing:-.05pt'>i</font>s<font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.1pt'>r</font><font style='letter-spacing:.05pt'>i</font>b<font style='letter-spacing:-.1pt'>u</font><font style='letter-spacing:.05pt'>ti</font><font style='letter-spacing:-.1pt'>o</font>n and <font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.1pt'>e</font><font style='letter-spacing:.05pt'>t</font><font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>i</font>l s<font style='letter-spacing:-.1pt'>a</font><font style='letter-spacing:.05pt'>l</font>e <font style='letter-spacing:-.1pt'>o</font>f <font style='letter-spacing:-.2pt'>m</font>a<font style='letter-spacing:.05pt'>r</font><font style='letter-spacing:-.05pt'>i</font><font style='letter-spacing:.15pt'>j</font>u<font style='letter-spacing:-.1pt'>a</font>na can be co<font style='letter-spacing:-.15pt'>m</font>p<font style='letter-spacing:.05pt'>l</font>ex, and<font style='letter-spacing:.15pt'> compliance may prove </font><font style='letter-spacing:-.1pt'>c</font>u<font style='letter-spacing:-.2pt'>m</font>be<font style='letter-spacing:.05pt'>r</font>so<font style='letter-spacing:-.15pt'>m</font>e.<font style='letter-spacing:.15pt'> Thus, c</font>u<font style='letter-spacing:.05pt'>st</font>omers 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. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:3.2pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:.05in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='font-family:Symbol'>· </font><font style='letter-spacing:-.05pt'>L</font>ending: The Company will provide loans to individuals and businesses in the cannabis industry.<font style='letter-spacing:-.1pt'> </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:.05in;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company does <b>NOT</b> grow marijuana plants, produce marijuana infused products, sell marijuana plants and/or sell marijuana infused products of any nature in any state were such activity has not been legalized. Growing marijuana plants, producing marijuana infused products, selling marijuana plants and/or selling marijuana infused products of any nature is federally illegal under the Controlled Substances Act.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements include all adjustments, which consist of normal recurring adjustments and transactions or events discretely impacting the interim periods, considered necessary by management to fairly state our results of operations, financial position and cash flows. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2018 Form 10­K.</p>
Colorado
2014-01-16
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Note 2 – Summary of significant accounting policies</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Use of estimates – </b>The preparation of financial statements in conformity with U.S. 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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Cash and cash equivalents – </b>For purposes of the statement of cash flows, we consider 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 our perceived association with the Regulated Entities, we have not been able to maintain a corporate bank account at any federally or state charted banking institution. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Tenant improvements and office equipment – </b>Tenant improvements and office equipment are recorded at cost and is depreciated under straight line methods over each item's estimated useful life. We review our 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. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Tenant improvements and office equipment, net of accumulated amortization and depreciation are comprised of the following:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="516" style='width:387.0pt;border-collapse:collapse'> <tr style='height:3.5pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="93" colspan="2" valign="top" style='width:69.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>October 31, 2018</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="90" colspan="2" valign="top" style='width:67.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>January 31, 2018</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Leasehold improvements</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="72" valign="bottom" style='width:53.7pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,200</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="69" valign="bottom" style='width:51.55pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,200</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Office equipment, furniture and fixtures</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 26,276</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>26,276</p> </td> </tr> <tr style='height:3.5pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>28,476</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>28,476</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accumulated amortization and depreciation</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(25,458)</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(24,703)</p> </td> </tr> <tr style='height:13.45pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,018</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,773</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>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 the three months ended October 31, 2018 was $252. For the three months ended October 31, 2017 there was no amortization or depreciation expense. Amortization and depreciation expense related to tenant improvements and office equipment for the nine months ended October 31, 2018 and 2017 was $755 and $1,325, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Income taxes – </b>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. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Investment in Unconsolidated Entity – </b>The Company entered into an agreement in September 2018, whereby the Company owns a 51% interest in Volume 2, LLC (“V2L”), which the Company has agreed to invest $120,000 in cash, issue 500,000 shares of the Company’s stock, and grant 500,000 warrants for a  total capital contribution of $185,000. The Company accounts for its investment V2L using the equity method based on the inability of the Company to control the acquired entity based on the terms of the Letter of Intent. Additionally, the Company has advanced $30,538 to fund operations. 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 V2L are made in each reporting period. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Long-Lived Assets – </b>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. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:-.9pt;text-align:justify'><b>Trademarks</b> – Trademarks and other intangible assets are stated at cost and are amortized using the straight-line method over fifteen years. Accumulated amortization was $3,538 and $2,989 at October 31, 2018 and January 31, 2018, respectively, and consisted of the following at October 31, 2018:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:-.9pt;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" width="560" style='margin-left:1.1in;border-collapse:collapse'> <tr align="left"> <td width="152" valign="bottom" style='width:114.3pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="108" valign="bottom" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Gross Carrying Amount</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Accumulated Amortization</p> </td> <td width="31" valign="top" style='width:23.4pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="17" valign="top" style='width:12.6pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Net</p> </td> </tr> <tr style='height:14.35pt'> <td width="152" valign="bottom" style='width:114.3pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Trademarks</p> </td> <td width="18" valign="bottom" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="108" valign="bottom" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 13,260</p> </td> <td width="30" valign="bottom" style='width:22.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18" valign="bottom" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,538</p> </td> <td width="31" valign="bottom" style='width:23.4pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17" valign="bottom" style='width:12.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 9,722</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><b>Deferred Revenue </b>– The Company periodically collects advances from customers related to consulting services. These advances are recorded as deferred revenue until the contracted services are completed. The Company has recorded deferred revenue of $176,000 and $150,000 as of October 31, 2018 and January 31, 2018, respectively. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><b>Share-Based Payments and Stock-Based Compensation</b> – Share-based compensation awards, including warrants and restricted stock awards, are recorded at estimated fair value of the awards’ grant date, based on estimated number of awards that are expected to vest. The grant date fair value is amortized on a straight-line basis over te time in which the awards are expected to vest, or immediately if no vesting is required. Share-based compensation awards issued to non-employees for services are recorded at either the fair value of the services rendered or the fair value of the share-based payments, whichever is more readily determinable. The fair value of restricted stock awards is based on the fair value of the stock underlying the awards on the grant date as there is no exercise price.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'>The fair value of warrants is estimated using the Black-Scholes option-pricing model. The determination of the fair value of each stock award using this option-pricing model is affected by the Company’s assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards and the expected term of the awards based on an analysis of the actual and projected employee stock option exercise behaviors and the contractual term of the awards. The Company recognizes stock-based compensation expense over the requisite service period, which is generally consistent with the vesting of the awards, based on the estimated fair value of all stock-based payments issued to employees and directors that are expected to vest.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><b>D</b><b>iscontinued Operations </b>– During November 2017, the Company settled all remaining operations related to its rental activities with regulated entities. As a consequence of the sale, 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. There were no components of major assets and liabilities associated with the discontinued operations at October 31, 2018 and at January 31, 2018. 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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="531" style='width:398.2pt;border-collapse:collapse'> <tr style='height:4.0pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="108" colspan="2" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>Three Months Ended </b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>October 31, 2017</b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b> </b></p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>Nine months Ended </b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>October 31, 2017</b></p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" valign="bottom" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:18.75pt;text-indent:-18.75pt;text-autospace:ideograph-numeric ideograph-other'>Rental income from the Regulated Entities (Affiliates) </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>397,198</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="90" valign="bottom" style='width:67.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,254,793 </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:32.25pt;text-autospace:ideograph-numeric ideograph-other'>Total revenues</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>397,198</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,254,793 </p> </td> </tr> <tr style='height:3.55pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Operating costs and expenses</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Reserve for amounts due from Regulated Entities (Affiliates)</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>99,698</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>984,428</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Rents and other occupancy</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(1,719,769)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(87,212)</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Depreciation and amortization </p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>38,831</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>120,756</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:32.25pt;text-autospace:ideograph-numeric ideograph-other'>Total operating costs and expenses</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(1,581,240)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,017,972</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:18.75pt;text-indent:-18.75pt;text-autospace:ideograph-numeric ideograph-other'>Operating (loss)/income from discontinued operations</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,978,438</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,236,821</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Other income and (expenses)</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Interest expense</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(4,075)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(91,845)</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" valign="bottom" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Loss from discontinued operations</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,974,363</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="90" valign="bottom" style='width:67.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,144,976</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Comprehensive Income (Loss) - </b>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. Since our inception there have been no differences between our comprehensive loss and net loss. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Net income per share of common stock</b> - We have adopted applicable FASB Codification regarding <i>Earnings per Share</i>, 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. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'><b><u>Recently Issued Accounting Pronouncements</u></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'>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. The Company evaluated all new accounting pronouncements and deemed none resulted in changes to the financial statements</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Use of estimates – </b>The preparation of financial statements in conformity with U.S. 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.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Cash and cash equivalents – </b>For purposes of the statement of cash flows, we consider 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 our perceived association with the Regulated Entities, we have not been able to maintain a corporate bank account at any federally or state charted banking institution. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Tenant improvements and office equipment – </b>Tenant improvements and office equipment are recorded at cost and is depreciated under straight line methods over each item's estimated useful life. We review our 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. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Tenant improvements and office equipment, net of accumulated amortization and depreciation are comprised of the following:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="516" style='width:387.0pt;border-collapse:collapse'> <tr style='height:3.5pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="93" colspan="2" valign="top" style='width:69.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>October 31, 2018</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="90" colspan="2" valign="top" style='width:67.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>January 31, 2018</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Leasehold improvements</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="72" valign="bottom" style='width:53.7pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,200</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="69" valign="bottom" style='width:51.55pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,200</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Office equipment, furniture and fixtures</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 26,276</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>26,276</p> </td> </tr> <tr style='height:3.5pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>28,476</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>28,476</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accumulated amortization and depreciation</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(25,458)</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(24,703)</p> </td> </tr> <tr style='height:13.45pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,018</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,773</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>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 the three months ended October 31, 2018 was $252. For the three months ended October 31, 2017 there was no amortization or depreciation expense. Amortization and depreciation expense related to tenant improvements and office equipment for the nine months ended October 31, 2018 and 2017 was $755 and $1,325, respectively.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="516" style='width:387.0pt;border-collapse:collapse'> <tr style='height:3.5pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="93" colspan="2" valign="top" style='width:69.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>October 31, 2018</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="90" colspan="2" valign="top" style='width:67.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>January 31, 2018</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Leasehold improvements</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="72" valign="bottom" style='width:53.7pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,200</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="69" valign="bottom" style='width:51.55pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,200</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Office equipment, furniture and fixtures</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 26,276</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>26,276</p> </td> </tr> <tr style='height:3.5pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>28,476</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:3.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>28,476</p> </td> </tr> <tr style='height:4.0pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accumulated amortization and depreciation</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(25,458)</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(24,703)</p> </td> </tr> <tr style='height:13.45pt'> <td width="294" valign="bottom" style='width:220.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,018</p> </td> <td width="40" valign="bottom" style='width:29.65pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="69" valign="bottom" style='width:51.55pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.45pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,773</p> </td> </tr> </table> </div>
2200
2200
26276
26276
28476
28476
25458
24703
3018
3773
755
1325
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Income taxes – </b>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. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Investment in Unconsolidated Entity – </b>The Company entered into an agreement in September 2018, whereby the Company owns a 51% interest in Volume 2, LLC (“V2L”), which the Company has agreed to invest $120,000 in cash, issue 500,000 shares of the Company’s stock, and grant 500,000 warrants for a  total capital contribution of $185,000. The Company accounts for its investment V2L using the equity method based on the inability of the Company to control the acquired entity based on the terms of the Letter of Intent. Additionally, the Company has advanced $30,538 to fund operations. 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 V2L are made in each reporting period. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Long-Lived Assets – </b>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. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:-.9pt;text-align:justify'><b>Trademarks</b> – Trademarks and other intangible assets are stated at cost and are amortized using the straight-line method over fifteen years. Accumulated amortization was $3,538 and $2,989 at October 31, 2018 and January 31, 2018, respectively, and consisted of the following at October 31, 2018:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:-.9pt;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" width="560" style='margin-left:1.1in;border-collapse:collapse'> <tr align="left"> <td width="152" valign="bottom" style='width:114.3pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="108" valign="bottom" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Gross Carrying Amount</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Accumulated Amortization</p> </td> <td width="31" valign="top" style='width:23.4pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="17" valign="top" style='width:12.6pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Net</p> </td> </tr> <tr style='height:14.35pt'> <td width="152" valign="bottom" style='width:114.3pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Trademarks</p> </td> <td width="18" valign="bottom" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="108" valign="bottom" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 13,260</p> </td> <td width="30" valign="bottom" style='width:22.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18" valign="bottom" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,538</p> </td> <td width="31" valign="bottom" style='width:23.4pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17" valign="bottom" style='width:12.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 9,722</p> </td> </tr> </table>
2989
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:-.9pt;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" width="560" style='margin-left:1.1in;border-collapse:collapse'> <tr align="left"> <td width="152" valign="bottom" style='width:114.3pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="108" valign="bottom" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Gross Carrying Amount</p> </td> <td width="30" valign="top" style='width:22.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Accumulated Amortization</p> </td> <td width="31" valign="top" style='width:23.4pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="17" valign="top" style='width:12.6pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Net</p> </td> </tr> <tr style='height:14.35pt'> <td width="152" valign="bottom" style='width:114.3pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Trademarks</p> </td> <td width="18" valign="bottom" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="108" valign="bottom" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 13,260</p> </td> <td width="30" valign="bottom" style='width:22.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18" valign="bottom" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,538</p> </td> <td width="31" valign="bottom" style='width:23.4pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17" valign="bottom" style='width:12.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$</p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 9,722</p> </td> </tr> </table>
13260
3538
9722
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><b>Deferred Revenue </b>– The Company periodically collects advances from customers related to consulting services. These advances are recorded as deferred revenue until the contracted services are completed. The Company has recorded deferred revenue of $176,000 and $150,000 as of October 31, 2018 and January 31, 2018, respectively. </p>
176000
150000
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><b>Share-Based Payments and Stock-Based Compensation</b> – Share-based compensation awards, including warrants and restricted stock awards, are recorded at estimated fair value of the awards’ grant date, based on estimated number of awards that are expected to vest. The grant date fair value is amortized on a straight-line basis over te time in which the awards are expected to vest, or immediately if no vesting is required. Share-based compensation awards issued to non-employees for services are recorded at either the fair value of the services rendered or the fair value of the share-based payments, whichever is more readily determinable. The fair value of restricted stock awards is based on the fair value of the stock underlying the awards on the grant date as there is no exercise price.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'>The fair value of warrants is estimated using the Black-Scholes option-pricing model. The determination of the fair value of each stock award using this option-pricing model is affected by the Company’s assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards and the expected term of the awards based on an analysis of the actual and projected employee stock option exercise behaviors and the contractual term of the awards. The Company recognizes stock-based compensation expense over the requisite service period, which is generally consistent with the vesting of the awards, based on the estimated fair value of all stock-based payments issued to employees and directors that are expected to vest.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><b>D</b><b>iscontinued Operations </b>– During November 2017, the Company settled all remaining operations related to its rental activities with regulated entities. As a consequence of the sale, 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. There were no components of major assets and liabilities associated with the discontinued operations at October 31, 2018 and at January 31, 2018. 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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="531" style='width:398.2pt;border-collapse:collapse'> <tr style='height:4.0pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="108" colspan="2" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>Three Months Ended </b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>October 31, 2017</b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b> </b></p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>Nine months Ended </b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>October 31, 2017</b></p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" valign="bottom" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:18.75pt;text-indent:-18.75pt;text-autospace:ideograph-numeric ideograph-other'>Rental income from the Regulated Entities (Affiliates) </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>397,198</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="90" valign="bottom" style='width:67.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,254,793 </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:32.25pt;text-autospace:ideograph-numeric ideograph-other'>Total revenues</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>397,198</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,254,793 </p> </td> </tr> <tr style='height:3.55pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Operating costs and expenses</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Reserve for amounts due from Regulated Entities (Affiliates)</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>99,698</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>984,428</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Rents and other occupancy</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(1,719,769)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(87,212)</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Depreciation and amortization </p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>38,831</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>120,756</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:32.25pt;text-autospace:ideograph-numeric ideograph-other'>Total operating costs and expenses</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(1,581,240)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,017,972</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:18.75pt;text-indent:-18.75pt;text-autospace:ideograph-numeric ideograph-other'>Operating (loss)/income from discontinued operations</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,978,438</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,236,821</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Other income and (expenses)</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Interest expense</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(4,075)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(91,845)</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" valign="bottom" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Loss from discontinued operations</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,974,363</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="90" valign="bottom" style='width:67.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,144,976</p> </td> </tr> </table> </div>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="531" style='width:398.2pt;border-collapse:collapse'> <tr style='height:4.0pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="108" colspan="2" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>Three Months Ended </b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>October 31, 2017</b></p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b> </b></p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>Nine months Ended </b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>October 31, 2017</b></p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" valign="bottom" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:18.75pt;text-indent:-18.75pt;text-autospace:ideograph-numeric ideograph-other'>Rental income from the Regulated Entities (Affiliates) </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>397,198</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="90" valign="bottom" style='width:67.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,254,793 </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:32.25pt;text-autospace:ideograph-numeric ideograph-other'>Total revenues</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>397,198</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,254,793 </p> </td> </tr> <tr style='height:3.55pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Operating costs and expenses</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:3.55pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Reserve for amounts due from Regulated Entities (Affiliates)</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>99,698</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>984,428</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Rents and other occupancy</p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(1,719,769)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(87,212)</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:32.25pt;text-indent:-.25in;text-autospace:ideograph-numeric ideograph-other'>Depreciation and amortization </p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>38,831</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>120,756</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:32.25pt;text-autospace:ideograph-numeric ideograph-other'>Total operating costs and expenses</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(1,581,240)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,017,972</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:18.75pt;text-indent:-18.75pt;text-autospace:ideograph-numeric ideograph-other'>Operating (loss)/income from discontinued operations</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,978,438</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,236,821</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Other income and (expenses)</p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="bottom" style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" valign="bottom" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> </tr> <tr style='height:2.5pt'> <td width="278" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Interest expense</p> </td> <td width="21" valign="top" style='width:15.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="87" valign="top" style='width:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(4,075)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="top" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="90" style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(91,845)</p> </td> </tr> <tr style='height:2.5pt'> <td width="278" valign="bottom" style='width:208.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Loss from discontinued operations</p> </td> <td width="21" valign="bottom" style='width:15.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="87" valign="bottom" style='width:65.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,974,363</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="18" valign="bottom" style='width:13.3pt;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$</p> </td> <td width="90" valign="bottom" style='width:67.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:2.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,144,976</p> </td> </tr> </table> </div>
397198
2254793
397198
2254793
99698
984428
-1719769
-87212
38831
120756
-1581240
1017972
1978438
1236821
-4075
-91845
1974363
1144976
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Comprehensive Income (Loss) - </b>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. Since our inception there have been no differences between our comprehensive loss and net loss. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Net income per share of common stock</b> - We have adopted applicable FASB Codification regarding <i>Earnings per Share</i>, 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. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'><b><u>Recently Issued Accounting Pronouncements</u></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'>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. The Company evaluated all new accounting pronouncements and deemed none resulted in changes to the financial statements</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Note 3 – Going concern:</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. Since inception, we have not achieved profitable operations, and have cumulative losses through October 31, 2018 of $7.1 million. Our losses to date raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our 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 our 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.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b>Note 4 – Fair value of financial instruments</b> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>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. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments in the management of our foreign exchange, commodity price or interest rate market risks.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>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: </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="66" valign="top" style='width:49.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Level 1:</p> </td> <td width="606" valign="top" style='width:454.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> Quoted prices in active markets for identical assets or liabilities.</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="66" valign="top" style='width:49.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Level 2:</p> </td> <td width="606" valign="top" style='width:454.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="66" valign="top" style='width:49.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Level 3:</p> </td> <td width="606" valign="top" style='width:454.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>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.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'><b>Note 5 - Operating Leases</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'>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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>During the three months ended October 31, 2018 and 2017, rent expense was $13,500 and $28,143, respectively. During the nine months ended October 31, 2018 and 2017, rent expense was $39,516 and $56,445, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;line-height:107%;text-autospace:ideograph-numeric ideograph-other'>As of October 31, 2018, future minimum lease payments are as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="337" style='width:252.45pt;border-collapse:collapse'> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in .1in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>For the Fiscal Year Ending January 31,</b></p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="23%" colspan="2" valign="bottom" style='width:23.0%;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;border:none;padding:0in 0in 0in 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Remainder of 2019</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$</p> </td> <td width="19%" valign="bottom" style='width:19.44%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>13,750</p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 0in 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>2020</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.44%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>55,250</p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 0in 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>2021</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.44%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>56,250 </p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 1.0pt 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>2022</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0in 0in 1.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.44%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>42,750</p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0in 0in 1.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 1.0pt 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Thereafter</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0in 0in 1.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.44%;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>— </p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0in 0in 1.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 0in .5in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:-10.1pt'>Total minimum lease payments</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$</p> </td> <td width="19%" valign="bottom" style='width:19.44%;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>168,000</p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
13500
28143
39516
56445
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="337" style='width:252.45pt;border-collapse:collapse'> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in .1in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>For the Fiscal Year Ending January 31,</b></p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="23%" colspan="2" valign="bottom" style='width:23.0%;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;border:none;padding:0in 0in 0in 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Remainder of 2019</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$</p> </td> <td width="19%" valign="bottom" style='width:19.44%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>13,750</p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 0in 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>2020</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.44%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>55,250</p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 0in 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>2021</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.44%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>56,250 </p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 1.0pt 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>2022</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0in 0in 1.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.44%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>42,750</p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0in 0in 1.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 1.0pt 8.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Thereafter</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0in 0in 1.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.44%;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>— </p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0in 0in 1.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.24%;padding:0in 0in 0in .5in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:-10.1pt'>Total minimum lease payments</p> </td> <td width="1%" valign="bottom" style='width:1.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$</p> </td> <td width="19%" valign="bottom" style='width:19.44%;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>168,000</p> </td> <td width="1%" valign="bottom" style='width:1.78%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
13750
55250
56250
42750
0
168000
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'><b>Note 6 – Note Receivable</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'>The Company entered into management and licensing agreements with a private entity in Puerto Rico, COPR Enterprises, LLC, 49% owned by Erin Phillips to operate five dispensaries and two cultivation operations in Puerto Rico. In conjunction with these agreements, the Company has begun providing funds to operate the Puerto Rico operations, which is evidenced by a promissory note. The note provides for a 36-month payment schedule bearing interest at 12%.  The principal amount of the loan has not been determined.  Through October 31, 2018 the Company has advanced $275,107 related to the note. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'>The Company entered into management and licensing agreements with a private entity to establish a joint venture in Oklahoma, 2600 Meridian, LLC, that is owned 25% by the Company. In conjunction with this joint venture the Company has agreed to provide funds to operate the operations. The note provides for a 36-month payment schedule bearing interest at 12%. The principal amount of the loan has not been determined. Through October 31, 2018 the Company has advanced $228,227 related to the note.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'><b>Note 7 – Due to Related Party</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'>The Company borrowed $49,562 from related parties to fund operations during the nine months ended October 31, 2018. One of the related parties converted $322,006 in loans to common stock during the nine months ended October 31, 2018. The loans do not carry an interest rate and do not have a maturity date. As of October 31, 2018 and January 31, 2018, the Company owed related parties $218,526 and $490,970, respectively.</p>
49562
218526
490970
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'><b>Note 8 – Notes Payable</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b><i>Richland Note</i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On August 29, 2018, the Company entered into a Note Purchase and Security Agreement (the "Purchase Agreement") with Richland Fund, LLC., a Delaware limited liability company ("Richland"). Pursuant to the Agreement, Richland agreed to purchase Convertible Promissory Notes of the Company (collectively, the "Notes"), in the aggregate principal amount of $225,000, funded in three tranches, (i) $100,000.00 (the "First Note"), (ii) $67,000.00 (the "Second Note"), and (iii) the balance of $58,000.00 (the "Third Note"). The Notes bear 12% interest per annum, with the last payment under the Notes due January 15, 2020. The Notes are secured by all assets of the Company and guarantees from Shawn and Erin Phillips. The Notes may be prepaid without penalty with 30 days' advance notice to Richland.<font style='background:white'> </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Notes are convertible into common stock of the Company. The conversion price will be equal to the lower of (i) $0.15 cents per share (ii) or the average of the closing bid price of the Company's common stock taken over the three trading days prior to conversion or (iii) upon any issuance by the Company of common stock, or a security that is convertible into common stock, at a price lower than a net receipt to the Company of $0.15 per share, at such price that shall be at the same discount ratio as on the Funding Date. The conversion price of the Notes will be further subject to proportional adjustment for stock splits, reverse stock splits or combinations of shares, stock dividends, and the like. There are penalties for failure to timely deliver conversion shares.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b><i><font style='background:white'>Green Acres Note</font></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><font style='background:white'>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 note has not been funded and as of October 31, 2018 there was no balance due under this note. </font></p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'><b>Note 9 – Stockholders Equity</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'><b><i>Common Stock</i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On August 29, 2018, in conjunction with the Richland Note, the Company issued Richland warrants to purchase 100,000 shares of the Company's common stock for $18,000. Richland exercised the warrants on October 3, 2018.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>From approximately September 24, 2018 to October 16, 2018, the Company issued a total of 281,000 shares of its common stock for $42,150 resulting from the exercise of outstanding warrants with an exercise price of $0.15 per share. These shares were issued pursuant to Section 4(a)(2) of the Securities Act.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On October 15, 2018, the Company entered into an Exchange Agreement (the "Exchange Agreement") with Shawn Phillips ("Mr. Phillips"), pursuant to which the Company issued Mr. Phillips 2,012,539 shares of the Company's Common Stock in exchange for $322,006 of debt owed to Mr. Phillips (the "Exchange"). The Exchange agreement otherwise contains standard terms and conditions. During the three and nine months ended October 31, 2018 the Company recognized an expense of $80,502 related to the conversion of these notes as a result of the stock being issued at a discount below the private offering price.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On or around October 18, 2018, the Company completed a private offering to accredited investors (the "Offering") in accordance with Regulation D under the Securities Act of 1933 ("Securities Act"). The Offering consisted of 3,416,000 shares of the Company's Common Stock at a price per share of $0.20, for offering proceeds of $683,200. All securities sold in the Offering were sold in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><b><i>Warrants</i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On October 15, 2018, the Company issued warrants to purchase 1,900,000 shares of its common stock to three individuals in exchange for services, respectively. The warrants all carry two-year terms and an exercise price of $0.16 per share. Forty percent of each warrant may be exercised pursuant to a cashless exercise formula. The warrants otherwise contain standard terms and conditions. During the three and nine months ended October 31, 2018 the Company recognized $76,000 in expense related to the issuance of these warrants. These warrants were issued pursuant to Section 4(a)(2) of the Securities Act.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On October 26, 2018 the Company issued a total of 25,000 shares to Tysadco Partners LLC as compensation for services. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The shares shall vest at a schedule of 10,000 shares at on November 1, 2018, 7,500 shares on the 120<sup>th</sup> day from November 1, 2018, and 7,500 shares on the 180<sup>th</sup> day from November 1, 2018, subject to the investor relations agreement being in effect as of each applicable vesting date.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'><b>Note 11 – Subsequent Events</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>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”). </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b><i>Recognized Subsequent Events</i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>None</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b><i>Unrecognized Subsequent Events</i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>The </font><font style='background:white'>Company was named as a defendant in one civil suit</font><font style='background:white'> filed with the District Court of the City and County of Denver, Colorado. This matter has been resolved.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;line-height:107%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On October 15, 2018, the Company entered into an Executive Employment Agreement (the "Phillips Employment Agreement") with Erin Phillips ("Ms. Phillips"). Pursuant to the Phillips Employment Agreement, Ms. Phillips agreed to continue to serve as the Company's CEO for a term commencing on October 15, 2018 and continuing until terminated by either party. The Company acknowledged that Ms. Phillips had $165,000 deferred compensation as of July 31, 2018 and Ms. Phillips agreed to continue to defer payment until November 1, 2018. The deferred compensation is recorded in accounts payable and accrued expenses on the balance sheet. Ms. Phillips will receive a base salary of $180,000 per year. If the Agreement is terminated by Ms. Phillips with "good reason" or by the Company without "cause," Ms. Phillips will be entitled to severance pay equal to $500,000 plus her base salary for twelve months. The Phillips Employment Agreement otherwise contains standard terms and conditions.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white;text-autospace:ideograph-numeric ideograph-other'>On October 15, 2018, the Company entered into an Employment Agreement (the "Kotzker Employment Agreement") with Jay Kotzker ("Mr. Kotzker"). Pursuant to the Employment Agreement, Mr. Kotzker agreed to continue to serve as the Company's general counsel for a term commencing on October 15, 2018 and continuing until terminated by either party. The Company acknowledged that Mr. Kotzker had $43,750 deferred compensation as of September 15, 2018 and $1,571.27 in unpaid expenses. Mr. Kotzker will receive a base salary of $150,000 per year. If the Agreement is terminated by the Company without "cause," Mr. Kotzker shall be entitled to severance pay equal to four months' salary. The Kotzker Employment Agreement otherwise contains standard terms and conditions.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;background:white'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'>On October 18, 2018, the Company entered into an Employment Agreement (the "SPhillips Employment Agreement") with Shawn Phillips ("Mr. Phillips"). Pursuant to the Employment Agreement, Mr. Phillips agreed to serve as the Company's Senior Business Development Strategist for a term commencing on October 18, 2018 and continuing until terminated by either party. Mr. Phillips will receive a base salary of $96,000 per year. If the Agreement is terminated by the Company without "cause," Mr. Phillips shall be entitled to severance pay equal to three months' salary. During the term of the Agreement, Mr. Phillips shall receive a vehicle stipend in the amount of $800 per month. The SPhillips Employment Agreement otherwise contains standard terms and conditions.</p>
Company was named as a defendant in one civil suit
2018-10-15
Company entered into an Executive Employment Agreement (the 'Phillips Employment Agreement') with Erin Phillips ('Ms. Phillips')
2018-10-15
Company entered into an Employment Agreement (the 'Kotzker Employment Agreement') with Jay Kotzker ('Mr. Kotzker')
2018-10-18
Company entered into an Employment Agreement (the 'SPhillips Employment Agreement') with Shawn Phillips ('Mr. Phillips')
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