10-Q

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended April 30, 2022

OR

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

From the transition period ___________ to ____________.

Commission File Number 333-152444

AUTO PARTS 4LESS GROUP, INC.

FORMERLY THE 4LESS GROUP, INC.

(Exact name of small business issuer as specified in its charter)

Nevada	7389	90-1494749
(State or jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(IRS Employer Identification No.)

106 W. Mayflower, Las Vegas, NV 89030

(Address of principal executive offices)

(702) 267-6100

(Issuer’s telephone number)

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	FLES	OTCQB

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:

Yes [X]   No [_]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes [X]   No [_]. 

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

Large Accelerated Filer  [_]      Accelerated Filer  [_]

Non-Accelerated Filer  [X]      Smaller Reporting Company  [X]      Emerging Growth Company  [_]

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

Indicate by a check mark whether the company is a shell company (as defined by Rule 12b-2 of the Exchange Act):

Yes [_]    No [X]

As of June 14, 2022, there were 1,544,449 shares of Common Stock of the issuer outstanding.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION	3
ITEM 1.	Condensed Consolidated Financial Statements (Unaudited)	3
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	23
ITEM 3.	Quantitative and Qualitative Disclosure About Market Risk	27
ITEM 4.	Controls and Procedures	27
PART II.	OTHER INFORMATION	27
ITEM 1.	Legal Proceedings	27
ITEM 1A.	Risk Factors	27
ITEM 2.	Unregistered Sales of Securities and Use of Proceeds	27
ITEM 3.	Default Upon Senior Securities	27
ITEM 4.	Mine Safety Disclosures	27
ITEM 5.	Other Information	27
ITEM 6.	Exhibits	27

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PART 1: FINANCIAL INFORMATION

ITEM 1: CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AUTO PARTS 4LESS GROUP, INC.

FORMERLY THE 4LESS GROUP, INC.

Condensed Consolidated Balance Sheets

	April 30, 2022			January 31, 2022
	Unaudited			(*)
Assets
Current Assets
Cash and Cash Equivalents	$	461,060		$	77,498
Inventory		398,881			432,583
Prepaid Expenses		12,189			16,065
Deferred Offering Costs		23,000			23,000
Other Current Assets		4,123			15,469
Total Current Assets		899,253			564,615
Operating Lease Assets		213,714			242,583
Property and Equipment, net of accumulated depreciation of $135,406, and $122,469		209,541			221,336
Total Assets	$	1,322,508		$	1,028,534
Liabilities and Stockholders’ Deficit
Current Liabilities
Bank overdraft	$	—		$	11,055
Accounts Payable		1,093,942			1,228,039
Accrued Expenses		943,482			796,397
Accrued Expenses – Related Party		46,273			46,173
Customer Deposits		291,684			530,900
Deferred Revenue		332,823			665,143
Short-Term Debt		3,291,220			3,454,133
Current Operating Lease Liability		96,772			100,001
Short-Term Convertible Debt, net of debt discount of $3,339,672 and $2,131,034		2,263,728			647,966
Derivative Liabilities		1,991,793			1,263,442
Shareholder Loans Payable		50,000			119,476
Current Portion – Long-Term Debt		27,828			27,737
Total Current Liabilities		10,429,545			8,890,462
Non-Current Lease Liability		114,423			138,551
Long-Term Debt		108,962			115,900
Total Liabilities		10,652,930			9,144,913
Commitments and Contingencies		—			—
Redeemable Preferred Stock
Series D Preferred Stock, $0.001 par value, 870 shares authorized, 870 and 870 shares issued and outstanding		870,000			870,000
Stockholders’ Deficit
Preferred Stock – Series A, $0.001 par value, 330,000 shares authorized, 0 and 0 shares issued and outstanding		—			—
Preferred Stock – Series B, $0.001 par value, 20,000 shares authorized, 20,000 and 20,000 shares issued and outstanding		20			20
Preferred Stock – Series C, $0.001 par value, 7,250 shares authorized, 0 and 7,250 shares issued and outstanding		—			7
Common Stock, $0.000001 par value, 75,000,000 shares authorized, 1,500,362 and 341,023 shares issued, issuable and outstanding		1			—
Additional Paid In Capital		20,845,448			19,465,327
Accumulated Deficit		(31,045,891	)		(28,451,733	)
Total Stockholders’ Deficit		(10,200,422	)		(8,986,379	)
Total Liabilities and Stockholders’ Deficit	$	1,322,508		$	1,028,534

* Derived from audited information

The Accompanying Notes are an Integral Part of these Unaudited Condensed Consolidated Financial Statements.

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AUTO PARTS 4LESS GROUP, INC.

FORMERLY THE 4LESS GROUP, INC.

Condensed Consolidated Statements of Operations

For the Three Months Ended April 30, 2022 and April 30, 2021

(Unaudited)

	2022			2021
Revenue	$	1,729,930		$	3,728,784
Cost of Revenue		1,468,003			2,766,578
Gross Profit		261,927			962,206
Operating Expenses:
Depreciation		12,938			10,735
Postage, Shipping and Freight		74,698			193,187
Marketing and Advertising		274,427			608,034
E Commerce Services, Commissions and Fees		330,697			416,127
Operating lease cost and rent		30,479			30,479
Personnel Costs		205,299			297,493
General and Administrative		354,417			648,509
Total Operating Expenses		1,282,955			2,204,564
Net Operating Loss		(1,021,028	)		(1,242,358	)
Other Income (Expense)
Gain (Loss) on Change in Fair Value of Derivatives		(337,737	)		4,187
Gain on Settlement of Debt		3,589			914,049
Amortization of Debt Discount		(725,280	)		(128,528	)
Interest Expense		(513,702	)		(114,907	)
Total Other Income (Expense)		(1,573,130	)		674,801
Net Income (Loss)	$	(2,594,158	)	$	(567,557	)
Basic Average Shares Outstanding		1,342,433			194,010
Basic Income (Loss) per Share	$	(1.93	)	$	(2.93	)
Diluted Weighted Average Shares Outstanding		1,342,433			194,010
Diluted Income (Loss) per Share	$	(1.93	)	$	(2.93	)

The Accompanying Notes are an Integral Part of these Unaudited Condensed Consolidated Financial Statements.

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AUTO PARTS 4LESS GROUP, INC.

FORMERLY THE 4LESS GROUP, INC.

Condensed Consolidated Statement of Changes in Stockholders’ Deficit

For the Three Months Ended April 30, 2022 and April 30, 2021

(Unaudited)

	Preferred Series A			Preferred Series B			Preferred Series C					Common Stock			Paid in		Retained
	Shares	Amount		Shares	Amount		Shares		Amount			Shares	Amount		Capital		Earnings			Total
January 31, 2021	—	$	—	20,000	$	20	7,250		$	7		142,716	$	—	$	14,291,760	$	(20,381,977	)	$	(6,090,190	)
Common Stock Issued as Payment for Fees	—		—	—		—	—			—		5,000		—		107,500		—			107,500
Issuance of Common Stock as Part of REG A Subscription	—		—	—		—	—			—		109,725		—		2,194,500		—			2,194,500
Rounding	—		—	—		—	—			—		—		—		1		—			1
Net Income	—		—	—		—	—			—		—		—		—		(567,557	)		(567,557	)
April 30, 2021	—	$	—	20,000	$	20	7,250		$	7		257,441	$	—	$	16,593,761	$	(20,949,534	)	$	(4,355,746	)
January 31, 2022	—		—	20,000		20	7,250			7		341,023		—		19,465,327		(28,451,733	)		(8,986,379	)
Conversion of Preferred Series C Shares into Shares Of Common Stock	—		—	—		—	(7,250	)		(7	)	905,110		1		6		—			—
Relative Fair Value of Equity Issued with Debt	—		—	—		—	—			—		254,141		—		1,064,965		—			1,064,965
Penalty Warrants Recorded as Interest	—		—	—		—	—			—		—		—		315,150		—			315,150
Rounding shares	—		—	—		—	—			—		88		—		—		—			—
Net (Loss)	—		—	—		—	—			—		—		—		—		(2,594,158	)		(2,594,158	)
April 30, 2022	—	$	—	20,000	$	20	—		$	—		1,500,362	$	1	$	20,845,448	$	(31,045,891	)	$	(10,200,422	)

The Accompanying Notes are an Integral Part of these Unaudited Condensed Consolidated Financial Statements.

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AUTO PARTS 4LESS GROUP, INC.

FORMERLY THE 4LESS GROUP, INC.

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended April 30, 2022 and April 30, 2021

(Unaudited)

	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	(2,594,158	)	$	(567,557	)
Adjustments to reconcile net loss to cash used by operating activities:
Depreciation		12,938			10,735
(Gain) loss in Fair Value on Derivative Liabilities		337,737			(4,187	)
Amortization of Debt Discount		725,280			128,528
Interest Expense on Penalty Warrants		315,150			—
Loan Penalties Capitalized to Loan and Accrued Interest		—			28,000
Stock Based Payment of Consulting Fees		—			107,500
Gain on Settlement of Debt		(3,589	)		(914,049	)
Reduction of Right of Use Asset		27,357			23,203
Accretion of Lease Liability		3,122			7,276
Change in Operating Assets and Liabilities:
Decrease (Increase) in Inventory		33,702			15,886
(Increase) Decrease in Prepaid Rent and Expenses		(5,667	)		1,762
(Increase) Decrease in Other Current Assets		11,346			(2,677	)
Increase (Decrease) in Accounts Payable		(134,100	)		(2,558	)
Increase in Accrued Expenses		147,088			28,548
Increase (Decrease) in Accrued Expenses -Related Party		100			(25,000	)
Operating Lease Payments		(30,479	)		(30,479	)
Increase (Decrease) in Customer Deposits		(239,216	)		80,547
Increase (Decrease) in Deferred Revenue		(332,320	)		294,064
CASH FLOWS (USED IN) OPERATING ACTIVITIES		(1,725,709	)		(820,458	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property and Equipment		(1,142	)		(35,000	)
CASH FLOWS (USED IN) INVESTING ACTIVITIES		(1,142	)		(35,000	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Issuance of Common Shares		—			2,099,683
Proceeds from Share Subscriptions Receivable		—			100,000
Repayment of Shareholder loans payable, net		(69,476	)		—
Proceeds from Short Term Debt		—			—
Payments on Short Term Debt		(162,913	)		(128,075	)
Payments on Long Term Debt		(6,848	)		(1,993	)
Proceeds from Issuance of Convertible Notes Payable		2,395,250			—
Payments on Convertible Notes Payable		(45,600	)		(149,500	)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		2,110,413			1,920,115
NET INCREASE IN CASH		383,562			1,064,657
CASH AT BEGINNING OF PERIOD		77,498			277,664
CASH AT END OF PERIOD	$	461,060		$	1,342,321
Supplemental Disclosure of Cash Flows Information:
Cash Paid for Interest	$	23,872		$	42,949
Derivative Debt Discount	$	394,203		$	—
Relative Fair Value of Warrants and Common Shares Issued with Debt and Applies as Discount	$	1,064,965		$	—
Debt discount	$	474,750		$	—
Conversion of Series C Preferred Stock Into Common Stock	$	6		$	—
Issuance of Common Shares for Share Subscription Receivable	$	—		$	94,817
Loans to acquire Fixed Assets	$	—		$	151,327

The Accompanying Notes are an Integral Part of these Unaudited Condensed Consolidated Financial Statements.

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AUTO PARTS 4LESS GROUP, INC.

FORMERLY THE 4LESS GROUP, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

NOTE 1 – NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Business:

Nature of Business – Auto Parts 4Less Group, Inc., (the “Company”), formerly The 4Less Group, Inc., was incorporated under the laws of the State of Nevada on December 5, 2007. The Company, under the name MedCareers Group, Inc. (“MCGI”) formally operated a website for nurses, nursing schools and nurses’ organizations designed for better communication between nurses and the nursing profession.

On November 29, 2018, the Company entered into a transaction (the “Share Exchange”), pursuant to which the Company acquired 100% of the issued and outstanding equity securities of The 4LESS Corp. (“4LESS”), in exchange for the issuance of (i) nineteen thousand (19,000) shares of Series B Preferred Stock, (ii) six thousand seven hundred fifty (6,750) shares of Series C Preferred Stock, and (iii) 870 shares of Series D Preferred Stock. The Series C Preferred Shares have a right to convert into common stock of the Company by multiplying the number of issued and outstanding shares of common stock by 2.63 on the conversion date. The Share Exchange closed on November 29, 2018.  As a result of the Share Exchange, the former shareholders of 4LESS became the controlling shareholders of the Company. The Share Exchange was accounted for as a reverse takeover/recapitalization effected by a share exchange, wherein 4LESS is considered the acquirer for accounting and financial reporting purposes. The capital, share price, and earnings per share amount in these consolidated financial statements for the period prior to the reverse merger were restated to reflect the recapitalization in accordance with the shares issued as a result of the reverse merger except otherwise noted.

4LESS was formed as Vegas Suspension & Offroad, LLC on October 24, 2013 as a Nevada limited liability company and converted to a Nevada corporation with the same name on May 8, 2017. On April 2, 2018, the Company changed its name to The 4LESS Corp. The Corporation had S Corporation status. The Corporation operates as an e-commerce auto and truck parts sales company. As a result of the share exchange, The 4Less Group, Inc. is now a holding company operating through 4LESS and offers products including exhaust systems, suspension systems, wheels, tires, stereo systems, truck bed covers, and shocks. On December 30, 2019 4LESS changed its name to Auto Parts 4Less, Inc..On April 28, 2022 the Company changed its name from The 4Less Group, Inc. to Auto Parts 4Less Group, Inc.

Significant Accounting Policies:

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these condensed financial statements.

Basis of Presentation:

The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim unaudited consolidated financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements. Certain information and footnote disclosure normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the SEC. The unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended January 31, 2022 and notes thereto contained in the Company’s Annual Report on Form 10-K filed on May 9, 2022.

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Principles of Consolidation:

The condensed financial statements include the accounts of Auto Parts 4Less Group, Inc. as well as The Auto Parts 4Less, Inc., and JBJ Wholesale LLC. All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated.

Use of Estimates:

In order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determine whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions used to value derivative liabilities.

Reclassifications

Certain amounts in the Company’s condensed consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods.

Cash and Cash Equivalents:

The Company considers all highly liquid instruments with a maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The carrying amount of cash and cash equivalents approximates fair market value.

Inventory Valuation

Inventories are stated at the lower of cost or net realizable value. Inventories are valued on a first-in, first-out (FIFO) basis. Inventory is comprised of finished goods.

Concentrations

Cost of Goods Sold

For the three months ended April 30, 2022 the Company purchased approximately 52% of its inventory and items available for sale from third parties from three vendors. As of April 30, 2022, the net amount due to the vendors included in accounts payable was $433,897. For the three months ended April 30, 2021, the Company purchased from three vendors approximately 54% of its inventory and items available for sale from third parties. As of April 30, 2021, the net amount due to these vendors included in accounts payable was $462,991. The Company believes there are numerous other suppliers that could be substituted should a supplier become unavailable or non-competitive.

Leases

We elected the hindsight practical expedient to determine the lease term for existing leases. Our election of the hindsight practical expedient resulted in the shortening of lease terms for certain existing leases and the useful lives of corresponding leasehold improvements. In our application of hindsight, we evaluated the performance of the leased stores and the associated markets in relation to our overall real estate strategies, which resulted in the determination that most renewal options would not be reasonably certain in determining the expected lease term.

- 8 -

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. ASC 740, Accounting for Income Taxes requires companies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%. A corresponding offset has been made to the valuation allowance, and any potential other taxes arising due to the Tax Act will result in reductions to the Company’s net operating loss carryforward and valuation allowance. The Company will continue to analyze the Tax Act to assess its full effects on the Company’s financial results, including disclosures, for the Company’s fiscal year ending January 31, 2023, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements.

Fair Value of Financial Instruments:

The Company’s financial instruments consist of cash, accounts payable, advances and notes payable. The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to the short-term nature of these financial instruments. Derivatives are recorded at fair value at each period end. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date.

The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 Inputs – Quoted prices for identical instruments in active markets.

Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs – Instruments with primarily unobservable value drivers.

The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of April 30, 2022:

	April 30, 2022		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Derivative Liabilities – embedded redemption feature	$	1,991,793	$	—	$	—	$	1,991,793
Totals	$	1,991,793	$	—	$	—	$	1,991,793

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Related Party Transactions:

The Company has a verbal policy that includes procedures intended to ensure compliance with the related party provisions in common practice for public companies. For purposes of the policy, a “related party transaction” is a transaction in which the Company or any one of its subsidiaries participates and in which a related party has a direct or indirect material interest, other than ordinary course, arms-length transactions of less than 1% of the revenue of the counterparty. Any transaction exceeding the 1% threshold, and any transaction involving consulting, financial advisory, legal or accounting services that could impair a director’s independence, must be approved by the CEO. Any related party transaction in which an executive officer or a Director has a personal interest, or which could present a possible conflict under the Guide to Ethical Conduct, must be approved by Board of Directors, following appropriate disclosure of all material aspects of the transaction.

Derivative Liability

The derivative liabilities are valued as a level 3 input under the fair value hierarchy for valuing financial instruments. The derivatives arise from convertible debt where the debt and accrued interest is convertible into common stock at variable conversion prices and reclassification of equity instrument to liability due to insufficient shares for issuance. As the price of the common stock varies, it triggers a gain or loss based upon the discount to market assuming the debt was converted at the balance sheet date. When evaluating the effect of the issuance of new equity-linked or equity-settled instruments on previously issued instruments, the Company uses first-in, first-out method (“FIFO”) where authorized and unused shares would first be used to satisfy the earliest issued equity-linked instruments.

The fair value of the derivative liability is determined using a lattice model, is re-measured on the Company’s reporting dates, and is affected by changes in inputs to that model including our stock price, historical stock price volatility, the expected term, and both high risk and the risk-free interest rate. The most sensitive inputs to the model are for expected time for the holder to convert or be repaid and the estimated historical volatility of the Company’s common stock.  However, because the historical volatility of the Company’s common stock is so high (see Note 9), the sensitivity required to change the liability by 1% as of April 30, 2022 is greater than 25% change in historical volatility as of that date.  The other inputs, such as risk free rate, high yield cash rate and stock price all have a sensitivity for a 1% change in the input variable results in a significantly less than 1% change in the calculated derivative liability.

Revenue Recognition

The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue when control is transferred over the promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. The following five steps are applied to achieve that core principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the company satisfies a performance obligation

Because the Company’s sales agreements generally have an expected duration of one year or less, the Company has elected the practical expedient in ASC 606-10-50-14(a) to not disclose information about its remaining performance obligations.

Disaggregation of Revenue: Channel Revenue

The following table shows revenue split between proprietary and third-party website revenue for the three months ended April 30, 2022 and 2021:

					Change
	2022		2021		$			%
Proprietary website revenue	$	1,236,243		2,123,101	$	(886,858	)	(42%	)
Third-party website revenue		493,687		1,605,683		(1,111,996	)	(69%	)
Total Revenue	$	1,729,930	$	3,728,784	$	(1,998,854	)	(54%	)

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The Company’s performance obligations are satisfied at the point in time when products are received by the customer, which is when the customer has title and obtained the significant risks and rewards of ownership. Therefore, the Company’s contracts have a single performance obligation (shipment of product). The Company primarily receives fixed consideration for sales of product. Shipping and handling amounts paid by customers are primarily for online orders, and are included in revenue. Sales tax and other similar taxes are excluded from revenue.

Stock-Based Compensation:

The Company accounts for stock options at fair value. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option.

Earnings (Loss) Per Common Share:

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from the exercise of stock options and/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.

Basic loss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share is computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to include all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments. Diluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share.

Recently Issued Accounting Standards:

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) which simplifies goodwill impairment testing by requiring that such periodic testing be performed by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The policy is effective for fiscal years, including interim periods, beginning after December 15, 2019. We adopted on February 1, 2020 and the adoption had no impact.

Fair Value Measurement: In 2018, the FASB issued amended guidance to remove, modify and add disclosure requirements for fair value measurements. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosure requirements. Transition is on a prospective basis for the new and modified disclosures, and on a retrospective basis for disclosures that have been eliminated. The adoption of this guidance on February 1, 2020 did not have a material impact on our consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvement to Nonemployee Share-Based Payment Accounting, which is part of the FASB’s simplification initiative to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This update provides consistency in the accounting for share-based payments to nonemployees with that of employees. The updated guidance had no impact on the Company’s consolidated financial position, results of operations or cash flows.

In December 2019, the Financial Accounting Standards Board (FASB) issued amended guidance on the accounting and reporting of income taxes. The guidance is intended to simplify the accounting for income taxes by removing exceptions related to certain intra-period tax allocations and deferred tax liabilities; clarifying guidance primarily related to evaluating the step-up tax basis for goodwill in a business combination; and reflecting enacted changes in tax laws or rates in the annual effective tax rate. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.

In January 2020, the FASB issued new guidance intended to clarify certain interactions between accounting standards related to equity securities, equity method investments and certain derivatives. The guidance addresses accounting for the transition into and out of the equity method of accounting and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.

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In August 2020, the FASB issued amended guidance on the accounting for convertible instruments and contracts in an entity’s own equity. The guidance removes the separation model for convertible debt instruments and preferred stock, amends requirements for conversion options to be classified in equity as well as amends diluted earnings per share (EPS) calculations for certain convertible debt instruments. The amended guidance is effective for interim and annual periods in 2022. The application of the amendments in the new guidance are to be applied either on a modified retrospective or a retrospective basis. We are currently assessing the effect that the adoption of this standard will have on the Company’s consolidated financial statements upon adoption

In addition to the above, the Company has reviewed all other recently issued, but not yet effective, accounting pronouncements, and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations.

Recently Issued Accounting Standards Not Yet Adopted

In March 2020, the FASB issued optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for accounting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The amended guidance is effective for interim and annual periods in 2023 and is to be applied prospectively. Early adoption is permitted on a retrospective basis to the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations.

In November 2021, the FASB issued new guidance to increase the transparency of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The guidance requires annual disclosures of such transactions to include the nature of the transactions and the significant terms and conditions, the accounting treatment and the impact to the company’s financial statements. The guidance is effective for annual periods beginning in 2022 and is to be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

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

NOTE 2 – GOING CONCERN AND FINANCIAL POSITION

The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has an accumulated deficit of $31,045,891 as of April 30, 2022 and has a working capital deficit at April 30, 2022 of $9,530,292. As of April 30, 2022, the Company only had cash and cash equivalents of $461,060 and approximately $151,000 of short-term debt in default. The short-term debt agreements provide legal remedies for satisfaction of defaults, none of the lenders to this point have pursued their legal remedies. While the Company has plans to grow its revenues through the new website , at this time, our current liquidity position raises substantial doubt about the Company’s ability to continue as a going concern.

Management’s plan is to raise additional funds in the form of debt or equity in order to continue to fund losses until such time as revenues can sustain the Company. However, there is no assurance that management will be successful in being able to continue to obtain additional funding. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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NOTE 3 – PROPERTY

The Company capitalizes all property purchases over $1,000 and depreciates the assets on a straight-line basis over their useful lives of 3 years for computers and 7 years for all other assets. Property consists of the following at April 30, 2022 and January 31, 2022:

	April 30, 2022			January 31, 2022
Office furniture, fixtures and equipment	$	95,183		$	94,041
Shop equipment		43,004			43,004
Vehicles		206,760			206,760
Sub-total		344,947			343,805
Less: Accumulated depreciation		(135,406	)		(122,469	)
Total Property	$	209,541		$	221,336

Additions to fixed assets for the three months ended April 30, 2022 were $1,142. Additions to fixed assets for the three months ended April 30, 2021 were $186,327 with $35,000 paid in cash and $151,327 financed through vehicle loans.

Depreciation expense was $12,938 and $10,735 for the three months ended April 30, 2022 and April 30, 2021, respectively.

NOTE 4 – LEASES

We lease certain warehouses and office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we did not combine lease and non-lease components.

Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 17 years or more. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Below is a summary of our lease assets and liabilities at April 30, 2022 and January 31, 2022.

Leases	Classification	April 30, 2022		January 31, 2022
Assets
Operating	Operating Lease Assets	$	213,714	$	242,583
Liabilities
Current
Operating	Current Operating Lease Liability	$	96,772	$	100,001
Noncurrent
Operating	Noncurrent Operating Lease Liabilities		114,423		138,551
Total lease liabilities		$	211,195	$	238,552

Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate of 8% based on the information available at commencement date in determining the present value of lease payments.

CAM charges were not included in operating lease expense and were expensed in general and administrative expenses as incurred.

Operating lease cost and rent was $30,479 and $30,479 for the three months ended April 30, 2022 and April 30, 2021, respectively.

NOTE 5 – CUSTOMER DEPOSITS

The Company receives payments from customers on orders prior to shipment and these customer deposits on cancelled orders were either returned to the customers subsequent to April 30, 2022 or will remain as deposits until the item is either delivered and recorded as revenue or cancelled and refunded. At April 30, 2022 the Company had received $291,684 (January 31, 2022- $530,900) in customer deposits for orders that were unfulfilled at April 30, 2022 and either canceled subsequent to year end or still awaiting shipment.

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NOTE 6 – DEFERRED REVENUE

The Company receives payments from customers on orders prior to shipment and orders that were unfulfilled at April 30, 2022 because of both normal order processing and fulfillment requirements, and back orders are recorded as deferred revenue. At April 30, 2022 the Company had received $332,823 (January 31, 2022- $665,143) in customer payments for orders that were unfulfilled at April 30, 2022 and delivered subsequent to April 30, 2022.

NOTE 7 – SHORT-TERM AND LONG-TERM DEBT

The components of the Company’s debt as of April 30, 2022 and January 31, 2022 were as follows:

	April 30, 2022			January 31, 2022
Loan dated October 8, 2019, and revised February 29, 2020 and November 10, 2020 repayable June 30, 2022 with an additional interest payment of $20,000(3)	$	97,340	*	$	97,340
Forklift Note Payable, original note of $20,433 Sept 26, 2018, 6.23% interest, 60 monthly payments of $394.54 ending August 2023(1)		7,120	#		8,183
Vehicle loan original loan of $93,239 February 16, 2021, 2.90 % interest. 72 monthly payments of $1,414 beginning on April 2, 2021 and ending on March 2, 2027. Secured by vehicle having net book value of $94,316.		77,677	#		81,346
Vehicle loan original loan of $59,711 March 20,2021, 7.89% interest. 72 monthly payments of $1,048 beginning on May 4, 2021 and ending on April 4, 2027. Secured by vehicle having net book value of $76,164.		51,993	#		54,108
Working Capital Note Payable - $700,000, dated October 29, 2021, repayment of $17,904 per week until Oct 29, 2022, interest rate of approximately 31%(2,4,7)		528,407	*		635,831
Working Capital Note Payable - $650,000, dated October 25, 2021, repayment of $15,875 per week until October 25, 2022, interest rate of approximately 26%(2,4,8)		540,558	*		596,047
Demand loan - $5,000 dated February 1, 2020, 15% interest, 5% fee on outstanding balance		5,000	*		5,000
Demand loan - $2,500, dated March 8, 2019, 25% interest, 5% fee on outstanding balance		2,500	*		2,500
Demand loan - $65,500 dated February 27, 2019, 25% interest, 5% fee on outstanding balance, Secured by the general assets of the Company		12,415	*		12,415
Promissory note - $60,000 dated September 18, 2020 maturing April 30, 2022(10), including $5,000 original issue discount, 15% compounded interest payable monthly		60,000	*		60,000
Promissory note - $425,000 dated August 28, 2020, including $50,000 original issue discount, 15% compounded interest payable monthly. This note matures when the Company receives proceeds through a financing event of $825,000 plus accrued interest on the note.(5)		425,000	*		425,000
Promissory note - $1,200,000 dated August 28, 2020, maturing August 28, 2022, 12%  interest payable monthly with the first six months interest deferred until the 6th month and added to principal.(6)		1,200,000	*		1,200,000
Promissory note - $420,000 dated December 27, 2021, including $20,000 original issue discount, maturing January 27, 2022, non-interest bearing(9)†		420,000	*		420,000
Total	$	3,428,010		$	3,597,770

	April 30, 2022		January 31, 2022
Short-Term Debt	$	3,291,220	$	3,454,133
Current Portion of Long-Term Debt		27,828		27,737
Long-Term Debt		108,962		115,900
Total	$	3,428,010	$	3,597,770

__________

†	In default
*	Short-term loans
#	Long-term loans of  $7,120 including current portion of $4,325
	$51,992 including current portion $8,633
	$81,346 including current portion $14,780

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(1)	Secured by equipment having a net book value of $8,733
(2)	The amounts due under the note are personally guaranteed by an officer or a director of the Company.
(3)	On November 10, 2020 the Company amended the agreement extending the maturity to June 30, 2022 from April 8, 2021 and changing monthly payments to $0 from $5,705 and interest rate from 13% to a $20,000 lump sum payable at maturity.
(4)	The Company has pledged a security interest on all accounts receivable and banks accounts of the Company.
(5)	Financing event would be a sale or issuance of assets, debt, shares or any means of raising capital. As the Company has entered into such a transaction the loan has reached maturity and is treated as current. An extension was granted on December 13, 2021 amending the maturity date to April 30, 2022. The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.
(6)	Secured by all assets of the Company. Loan payable in 2 instalments, $445,200 payable August 28, 2021 and $826,800 payable August 28, 2022. On December 13, 2021 the parties amended the maturity date for the first instalment to be April 30, 2022 with ethe second instalment date unchanged. The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.
(7)	This loan replaces $500,000 loan dated June 4, 2021, $422,009 proceeds were used to repay this loan, net cash received was $253,491 after payment of $26,500 in fees.
(8)	This loan replaces $500,000 loan dated June 4, 2021, $359,919 proceeds were used to repay this loan, net cash received was  $267,606 after payment of $22,475 in fees.
(9)	Penalty of 10% of principal amount and 30,000 3 year warrants with an exercise price of $15.00 on initial default and 2% of principal amount and 15,000 3 year warrants with an exercise price of $15.00 for every 30 day default period thereafter. Initial default has been recorded at January 31, 2022 with an interest charge of $42,000 and another $276,000 which was the fair value of the warrants (see Note 11). The Company has defaulted on the February26, 2022, March 28, 2022, April 27, 2022 and will issue an additional 15,000 warrants for each of those defaults. The company recorded $315,050 based on the fair value of the warrants and $25,200 for the 2% fee as interest expense.
(10)	The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.

The following are the minimum amounts due on the notes as of April 30, 2022:

Year Ended	Amount
April 30, 2023	$	3,319,048
April 30, 2024		27,574
April 30, 2025		26,118
April 30, 2026		27,447
April 30, 2027		27,823
Total	$	3,428,010

NOTE 8 – SHORT-TERM CONVERTIBLE DEBT

The components of the Company’s debt as of April 30, 2022 and January 31, 2022 were as follows:

	Interest	Default Interest	Conversion	Outstanding Principal at
Maturity Date	Rate	Rate	Price	April 30, 2022			January 31, 2022
Nov 4, 2013*	12%	12%	$1,800,000	$	100,000		$	100,000
Jan 31, 2014*	12%	18%	$2,400,000		16,000			16,000
July 31, 2013*	12%	12%	$1,440,000		5,000			5,000
Jan 31, 2014*	12%	12%	$2,400,000		30,000			30,000
Nov 12, 2022	8%	12%	(1)		2,400,000			2,400,000
Jan. 13, 2023	12%	22%	(2)		182,400			228,000
Aug. 11, 2022	10%	10%	(3)		220,000			—
Aug 14, 2022	12%	20%	(4)		1,200,000			—
Aug. 25, 2022	12%	20%	(4)		150,000			—
Aug. 25, 2022	12%	20%	(4)		350,000			—
Oct.. 9, 2022	12%	20%	(4)		200,000			—
Oct.. 9, 2022	12%	20%	(4)		200,000			—
Oct. 22, 2022	12%	20%	(4)		440,000			—
Oct. 22, 2022	12%	20%	(4)		110,000			—
Sub-total					5,603,400			2,779,000
Debt Discount					(3,339,672	)		(2,131,034	)
				$	2,263,728		$	647,966

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__________

*	In default.
(1)	lesser of $ 1.25 or 75 % of offering price if there is an uplisting to a national securities exchange.
(2)	75% of closing bid price on day preceding conversion date in event of default
(3)	convertible at 20% discount of the offering price on company’s uplist to NASDAQ
(4)	convertible upon default at conversion price lower of i) lowest price 20 days prior to Issuance ii) lowest price 20 days prior to conversion

The Company had accrued interest payable of $320,433 and $231,412 on the notes at April 30, 2022 and January 31, 2022, respectively.

The Company analyzed the conversion option for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that some instruments should be classified as liabilities due to there being a variable number of shares to be delivered upon settlement of the above conversion options. The instruments are measured at fair value at the end of each reporting period or termination of the instrument with the change in fair value recorded to earnings. The fair value of the embedded conversion option resulted in a discount to the note on the debt modification date. For the three months ended April 30, 2022 and 2021, the Company recorded amortization of debt discount expense of $725,280 and $128,528, respectively. See more information in Note 10.

On February 11, 2022 the Company entered into an unsecured convertible note for $220,000 with a one year maturity, interest rate of 10%, the Company received $200,000 in cash proceeds, recorded, an original issue discount of $20,000, and a derivative discount of $117,676 related to a conversion feature. The discount is amortized over the term of the loan. The note is repayable October 11, 2022.

On February 14, 2022 the Company entered into a new convertible note for $1,200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 120,000 common shares with a five year maturity and an exercise price of $15.00, and 115,000 common shares. If the loan is not in default the company may extend the term to February 14, 2023 with 10 days notice. If the Company does not extend the loan then 60,000 of the issued shares were returnable. On April 7, 2022 the parties agreed to not have the shares returnable in exchange for a waiver on the Company’s breach of certain provisions. The Company received $979,000 in cash proceeds, recorded an original issue discount of $120,000, a derivative discount of $131,489 for the conversion feature, recognized $484,032 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $101,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On February 25, 2022 the Company entered into a new convertible note for $350,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 35,000 common shares with a five year maturity and an exercise price of $15.00, and 33,542 common shares. If the loan is not in default the company may extend the term to February 25, 2023 with 10 days notice. If the Company does not extend the loan then 17,500 of the issued shares were returnable. The Company received $294,000 in cash proceeds, recorded an original issue discount of $35,000, a derivative discount of $37,784 for the conversion feature, recognized $132,255 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $21,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On February 25, 2022 the Company entered into a new convertible note for $150,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 15,000 common shares with a five year maturity and an exercise price of $15.00, and 14,400 common shares. If the loan is not in default the company may extend the term to February 25, 2023 with 10 days notice. If the Company does not extend the loan then 7,500 of the issued shares were returnable. The Company received $119,250 in cash proceeds, recorded an original issue discount of $15,000, a derivative discount of $16,193 for the conversion feature, recognized $52,613 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $15,750. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On March 9, 2022 the Company entered into a new convertible note for $200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 20,000 common shares with a five year maturity and an exercise price of $15.00, and 19,200 common shares. If the loan is not in default the company may extend the term to March 9, 2023 with 10 days notice. If the Company does not extend the loan then 10,000 of the issued shares were returnable. The Company received $168,000 in cash proceeds, recorded an original issue discount of $20,000, a derivative discount of $22,533 for the conversion feature, recognized $85,815 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $12,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

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On March 9, 2022 the Company entered into a new convertible note for $200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 20,000 common shares with a five year maturity and an exercise price of $15.00, and 9,200 common shares. If the loan is not in default the company may extend the term to March 9, 2023 with 10 days notice. If the Company does not extend the loan then 10,000 of the issued shares were returnable. The Company received $168,000 in cash proceeds, recorded an original issue discount of $20,000, a derivative discount of $22,533 for the conversion feature, recognized $85,728 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $12,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On April 22, 2022 the Company entered into a new convertible note for $440,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 44,000 common shares with a five year maturity and an exercise price of $15.00, and 42,240 common shares. If the loan is not in default the company may extend the term to April 22, 2023 with 10 days notice. If the Company does not extend the loan then 22,000 of the issued shares were returnable. The Company received $373,600 in cash proceeds, recorded an original issue discount of $40,000, a derivative discount of $36,796 for the conversion feature, recognized $161,815 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $26,400. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On April 22, 2022 the Company entered into a new convertible note for $110,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 11,000 common shares with a five year maturity and an exercise price of $15.00, and 10,560 common shares. If the loan is not in default the company may extend the term to April 22, 2023 with 10 days notice. If the Company does not extend the loan then 5,500 of the issued shares were returnable. The Company received $93,400 in cash proceeds, recorded an original issue discount of $10,000, a derivative discount of $9,199 for the conversion feature, recognized $62,707 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $6,600. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

During the three months ended April 30, 2022 and April 30, 2021 the Company added $0 and $28,000 in penalty interest to these loans, respectively.

As of April 30, 2022, the Company had $151,000 of aggregate debt in default. The agreements provide legal remedies for satisfaction of defaults, none of the lenders to this point have pursued their legal remedies. The Company continues to accrue interest at the listed rates, and plans to seek their conversion or payoff within the next twelve months.

NOTE 9 – DERIVATIVE LIABILITIES

As of April 30, 2022 and January 31, 2022, the Company had derivative liabilities of $1,991,793 and $1,263,442, respectively. During the three months ended April 30, 2022 and 2021, the Company recorded a loss of $337,737 and a gain of $4,187, respectively, from the change in the fair value of derivative liabilities. Any liabilities resulting from the warrants outstanding are immaterial.

The derivative liabilities are valued as a level 3 input for valuing financial instruments.

The following table presents changes in Level 3 liabilities measured at fair value for the three months ended April 30, 2022. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long- dated volatilities) inputs.

	Level 3
	Derivatives
Balance, January 31, 2022	$	1,263,442
Changes Due to Issuance of New Convertible Notes		394,203
Settlement Due to Repayment of Debt		(3,589	)
Mark to Market Change in Derivatives		337,737
Balance, April 30, 2022	$	1,991,793

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The derivatives arise from convertible debt where the debt is convertible into common stock at variable conversion prices which are linked to the trading and/or bid prices of the Company’s common stock as traded on the OTC market.

The fair value of the derivative liability is determined using the lattice model, is re-measured on the Company’s reporting dates, and is affected by changes in inputs to that model including our stock price, expected stock price volatility, the expected term, and the risk-free interest rate. A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liabilities and embedded conversion feature that are categorized within Level 3 of the fair value hierarchy as of April 30, 2022 is as follows:

	Embedded Derivative Liability As of April 30, 2022
Strike price	5.40 - 10.00
Contractual term (years)	0.28 - 0.79 years
Volatility (annual)	137.1% - 201.8
Underlying fair market value	10.00
Risk-free rate	7.38% -8.46
Dividend yield (per share)	0

NOTE 10 – STOCKHOLDERS’ DEFICIT

Preferred Stock:

The Series A Preferred Stock has an automatic forced conversion into common stock upon the completion of the repurchase or extinguishing of all “toxic” debt (notes having conversion features tied to the Company’s common stock), the extinguishing of all other existing dilutive debt or equity structures, and total recapitalization of the Company. As of both April 30, 2022, and January 31, 2022 the Company had 0 shares of Series A Preferred issued and outstanding and 330,000 authorized with a par value of $0.001 per share.

At both April 30, 2022 and January 31, 2022, there were 20,000 and 20,000 Series B preferred shares outstanding, respectively. The Series B Preferred Stock have voting rights equal to 51% of the total voting rights at any time. There are no conversion rights granted holders of Series B Preferred shares, they are not entitled to dividends, and the Company does not have the right of redemption. Currently, there are 20,000 Series B preferred shares authorized and issued of the Series B Preferred Stock with a par-value of $0.001 per share.

At both April 30, 2022 and January 31, 2022, there were 0 and 7,250 Series C preferred shares outstanding, respectively. The Series C Preferred Stock have the right to convert into the common stock of the Company by multiplying the number of issued and outstanding shares of common stock by 2.63 on the conversion date. The holders of Series C Preferred shares are not entitled to dividends, and the Company does not have the right of redemption. On February 1, 2022 the 7,250 Series C Preferred stockholders converted all of their outstanding shares for 905,110 shares of common stock. Currently, there are 0 Series C preferred shares authorized and issued with a par-value of $0.001 per share.

At both April 30, 2022 and January 31, 2022, there were 870 Series D preferred shares authorized and outstanding, respectively which with a par value $0.001. All shares of Series D Preferred Stock will rank subordinate and junior to all shares of Series A, B and C of Preferred Stock of the Corporation and pari passu with any of the Corporation’s preferred stock hereafter created as to distributions of assets upon dissolution or winding up of the Corporation, whether voluntary or involuntary. These shares are non-voting, do not receive dividends and are redeemable according to the terms set out as follows:

OPTIONAL REDEMPTION.

(1)  At any time, either the Corporation or the holder may redeem for cash out of funds legally available therefor, any or all of the outstanding Series D Preferred Stock (“Optional Redemption”) at $1,000 per share.

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(2)  Should the Corporation exercise the right of Optional Redemption it shall provide each holder of Preferred Stock with at least 30 days’ notice of any proposed optional redemption pursuant this Section VI (an “Optional Redemption Notice”). Any optional redemption pursuant to this Section VI shall be made ratably among holders in proportion to the Liquidation Value of Preferred Stock then outstanding and held by such holders. The Optional Redemption Notice shall state the Liquidation Value of Preferred Stock to be redeemed and the date on which the Optional Redemption is to occur (which shall not be less than thirty (30) or more than sixty (60) Business Days after the date of delivery of the Optional Redemption Notice) and shall be delivered by the Corporation to the holders at the address of such holder appearing on the register of the Corporation for the Preferred Stock. Within seven (7) business days after the date of delivery of the Optional Redemption Notice, each holder shall provide the Corporation with instructions as to the account to which payments associated with such Optional Redemption should be deposited. On the date of the Optional Redemption, provided for in the relevant Optional Redemption Notice, (A) the Corporation will deliver the redemption amount via wire transfer to the account designated by the holders, and (B) the holders will deliver the certificates relating to that number of shares of Preferred Stock being redeemed, duly executed for transfer or accompanied by executed stock powers, in either case, transferring that number of shares to be redeemed. Upon the occurrence of the wire transfer (or, in the absence of a holder designating an account to which funds should be transferred, delivery of a certified or bank cashier’s check in the amount due such holder in connection with such Optional Redemption to the address of such holder appearing on the register of the Corporation for the Preferred Stock), that number of shares of Preferred Stock redeemed pursuant to such Optional Redemption as represented by the previously issued certificates will be deemed no longer outstanding. Notwithstanding anything to the contrary in this Designation, each holder may continue to convert Preferred Stock in accordance with the terms hereof until the date such Preferred Stock is actually redeemed pursuant to an Optional Redemption.

(3)  Should the holder exercise the right of Optional Redemption it shall provide the Corporation with at least 30 days’ notice of any proposed optional redemption pursuant this Section VI (an “Optional Redemption Notice”). The Optional Redemption Notice shall state the value of the Preferred Stock to be redeemed and the date on which the Optional Redemption is to occur (which shall not be less than thirty (30) or more than sixty (60) Business Days after the date of delivery of the Optional Redemption Notice) and shall be delivered by the holder to the Corporation at the address of the Corporation for the Preferred Stock. Within seven (7) business days after the date of delivery of the Optional Redemption Notice, each holder shall provide the Corporation with instructions as to the account to which payments associated with such Optional Redemption should be deposited. On the date of the Optional Redemption, provided for in the relevant Optional Redemption Notice, (A) the Corporation will deliver the redemption amount via wire transfer to the account designated by the holder, and (B) the holder will deliver the certificates relating to that number of shares of Preferred Stock being redeemed, duly executed for transfer or accompanied by executed stock powers, in either case, transferring that number of shares to be redeemed. Upon the occurrence of the wire transfer (or, in the absence of a holder designating an account to which funds should be transferred, delivery of a certified or bank cashier’s check in the amount due such holder in connection with such Optional Redemption to the address of such holder appearing on the register of the Corporation for the Preferred Stock), that number of shares of Preferred Stock redeemed pursuant to such Optional Redemption as represented by the previously issued certificates will be deemed no longer outstanding. Notwithstanding anything to the contrary in this Designation, each holder may continue to convert Preferred Stock in accordance with the terms hereof until the date such Preferred Stock is actually redeemed pursuant to an Optional Redemption.

The Series D Preferred Stock is not entitled to any pre-emptive or subscription rights in respect of any securities of the Corporation.

Neither the Company nor any Series D preferred stockholders has given notice to exercise the redemption as of April 30, 2022 on the date of the financial statements.

Because the holders of the Series D preferred stock have the right to demand cash redemption, the cumulative amount of the redemption feature is included in Temporary Equity as of April 30, 2022 and January 31, 2022.

Common Stock

The Company is authorized to issue 75,000,000 common shares at a par value of $0.000001 per share. These shares have full voting rights. The Company undertook a 10-1 reverse stock split on April 28, 2022. The share capital has been retrospectively adjusted accordingly to reflect these reverse stock splits. At April 30, 2022 and January 31, 2022 there were 1,500,362 and 341,023 shares outstanding and issuable, respectively.  No dividends were paid in the three months ended April 30, 2022 or 2021. The Company’s articles of incorporation include a provision that the Company is not allowed to issue fractional shares.

The Company issued the following shares of common stock in the three months ended April 30, 2022:

The Company issued 905,110 shares upon conversion of 7,250 Series C preferred shares. Along with associated debt, the Company issued 254,141 shares and warrants to purchase 265,000 shares all with a relative fair value of $1,064,965.

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Options and Warrants:

The Company has 75,000 options outstanding as of both April 30, 2022 and or January 31, 2022.

The Company recorded option and warrant expense of $0 and $0 for the three months ended April 30, 2022 and 2021, respectively.

For the quarter ended April 30, 2022 the Company issued warrants to purchase 265,000 common shares along with debt to various lenders as well as warrants to acquire 45,000 common shares as penalty interest. The table below provides the significant estimates used that resulted in the Company determining the relative fair value of the 265,000 warrants at $1,064,965, which has been recorded as a debt discount and the 45,000 warrants at $315,150 which has been recorded as interest both with corresponding adjustments to paid-in capital.

Expected volatility	1,686-2,186%
Exercise price	$5.50 -$15.00
Stock price	$5.40-$9.49
Expected life	3-5 years
Risk-free interest rate	1.76%-2.94%
Dividend yield	0%

The Company had the following fully vested warrants outstanding at April 30,2022:

Issued To	# Warrants	Dated	Expire	Strike Price	Expired	Exercised
Lender	95,000	08/28/2020	08/28/2023	$4.00 per share	N	N
Broker	250	10/11/2020	10/11/2025	$45.00 per share	N	N
Broker	300	11/25/2020	11/25/2025	$30.00 per share	N	N
Triton	30,000	07/27/2021	07/27/2024	$21.10 per share	N	N
Consultant	25,000	08/26/2021	08/26/2024	$15.00 per share	N	N
Lender	90,000	11/12/2021	11/12/2026	$15.00 per share	N	N
Lender	90,000*	11/12/2021	11/12/2026	$15.00 per share	N	N
Lender	30,000	1/27/2022	1/27/2025	$15.00 per share	N	N
Lender	120,000	2/14/2022	2/14/2027	$15.00 per share	N	N
Lender	35,000	2/25/2022	2/25/2027	$15.00 per share	N	N
Lender	15,000	2/25/2022	2/25/2027	$15.00 per share	N	N
Lender	20,000	3/9/2022	3/9/2027	$15.00 per share	N	N
Lender	20,000	3/9/2022	3/9/2027	$15.00 per share	N	N
Lender	11,000	4/22/2022	4/22/2027	$15.00 per share	N	N
Lender	44,000	4/22/2022	4/22/2027	$15.00 per share	N	N
Lender	15,000	2/26/2022	2/26/2025	$5.40 per share	N	N
Lender	15,000	3/28/2022	3/28/2025	$7.50 per share	N	N
Lender	15,000	4/27/2022	4/27/2025	$6.99 per share	N	N

__________

* These warrants are extinguished if Company repays note by 11/12/2022 maturity.

The Company had the following fully vested options outstanding at April 30, 2022:

Issued To	# Options	Dated	Expire	Strike Price	Expired	Exercised
Consultant	25,000	8/26/2021	8/26/2024	$15.00 per share	N	N
T. Armes	50,000	10/14/2021	10/14/2023	$15.00 per share	N	N

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The following table summarizes the activity of options and warrants issued and outstanding as of and for the three months ended

April 30, 2022:

	Options	Weighted Average Exercise Price		Warrants	Weighted Average Exercise Price
Outstanding at January 31, 2022	75,000	$	15.00	360,550	$	12.64
Granted	—		—	310,000		15.00
Exercised	—		—	—		—
Forfeited and canceled	—		—	—		—
Outstanding at April 30, 2022	75,000	$	15.00	670,550	$	13.17

NOTE 11 – RELATED PARTY TRANSACTIONS

As of April 30, 2022 and January 31, 2021, the Company had $46,273 and $46,173, respectively of related party accrued expenses related to accrued compensation for employees and consultants.

NOTE 12 – COMMITMENTS AND CONTINGENCIES

On August 30, 2016, the Company entered into a 60-month lease agreement for its 3,554 sf warehouse facility starting in December 2016 with a minimum base rent of $2,132 and estimated monthly CAM charges of $1,017 per month. This lease is with a shareholder.

On July 1, 2018, the Company entered into a 60-month lease agreement with its minority shareholder for its 8,800 sf warehouse facility with a minimum base rent of $6,400 per month.

In October 2019 the Company entered into an operating lease for a vehicle with an annual cost of $9,067 and a three year term. The company paid initial fees of $17,744 and will pay fees on lease termination of $395. On a straight-line basis these costs amount to $1,259 per month.

Maturity of Lease Liabilities	Operating Leases
April 30 2023	$	113,100
April 30, 2024		42,803
April 30, 2025		30,003
April 30, 2026		30,003
April 30, 2027		17,503
Total lease payments		233,412
Less: Interest		(22,217	)
Present value of lease liabilities	$	211,195

The Company had total operating lease and rent expense of $30,479 and $30,479 for the three months ended April 30, 2022 and 2021 respectively.

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NOTE 13 – EARNINGS (LOSS) PER SHARE

The net income (loss) per common share amounts were determined as follows:

	For the Three Months Ended
	April 30,
	2022			2021
Numerator:
Net income (loss) available to common shareholders	$	(2,594,158	)	$	(567,557)
Denominator:
Weighted average shares – basic		1,342,433			194,010
Net income (loss) per share – basic	$	(1.93	)	$	(2.93	)
Effect of common stock equivalents
Add: interest expense on convertible debt		112,742			34,652
Add: amortization of debt discount		725,280			128,528
Less: gain on settlement of debt on convertible notes		—			—
Add (Less): loss (gain) on change of derivative liabilities		337,737			(4,187	)
Net income (loss) adjusted for common stock equivalents		(1,418,399	)		(408,564	)
Dilutive effect of common stock equivalents:
Convertible notes and accrued interest		—			—
Convertible Class C Preferred shares		—			—
Warrants and options		—			—
Denominator:
Weighted average shares – diluted		1,342,433			194,010
Net income (loss) per share – diluted	$	(1.93	)	$	(2.93	)

The anti-dilutive shares of common stock equivalents for the three months ended April 30, 2022 and April 30, 2021 were as follows:

	For the Three Months Ended
	April 30,
	2022		2021
Convertible notes and accrued interest		701,281		35,437
Convertible Class C Preferred shares		—		677,071
Options		75,000		—
Warrants		670,550		95,550
Total		1,446,831		808,058

NOTE 14 – SUBSEQUENT EVENTS

Subsequent to April 30, 2022 through to June 10, 2022:

• The Company issued 2,587 rounding shares due to 10:1 reverse split on April 28, 2022

• On May 19, 2022 the Company entered into a new convertible note for $400,000 with a one year maturity, interest rate of 12%, with a warrant to purchase 33,333 common shares with a five year maturity and an exercise price of $15.00, and 41,500 common shares. The Company received $325,000 in cash proceeds, recorded an original issue discount of $20,000 and transaction fees of $12,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 125%.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, which we refer to in this quarterly report as the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, which we refer to in this quarterly report as the Exchange Act. Forward-looking statements are not statements of historical fact but rather reflect our current expectations, estimates and predictions about future results and events. These statements may use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project” and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management’s beliefs and assumptions, using information currently available to us. These forward-looking statements are subject to risks, uncertainties and assumptions, including but not limited to, risks, uncertainties and assumptions discussed in this quarterly report. Factors that can cause or contribute to these differences include those described under the headings “Risk Factors” and “Management Discussion and Analysis and Plan of Operation.”

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statement you read in this quarterly report reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by this paragraph. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this quarterly report. The Company expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements to reflect any change in its views or expectations. The Company can give no assurances that such forward-looking statements will prove to be correct.

Company

The Auto Parts 4Less Group Inc. (“FLES”, the “Company”, “we” or “us”), the Company described herein, was incorporated under the laws of the State of Nevada on December 5, 2007, with offices located at 106 W Mayflower, Las Vegas, Nevada 89030. Our phone number is (702) 267-7100.

Nature of Business – Auto Parts 4Less Group Inc.., formerly known The 4Less Group, Inc.and as MedCareers Group, Inc. (the “Company”, “MCGI”), was incorporated under the laws of the State of Nevada on December 5, 2007.

On November 29, 2018, the Company entered into a transaction (the “Share Exchange”), pursuant to which the Company acquired 100% of the issued and outstanding equity securities of The 4Less Corp. (“4LESS”), in exchange for the issuance of (i) nineteen thousand (19,000) shares of Series B Preferred Stock, (ii) six thousand seven hundred fifty (6,750) shares of Series C Preferred Stock, and (iii) 870 shares of Series D Preferred Stock. The Series C Preferred Shares have a right to convert into common stock of the Company by multiplying the number of issued and outstanding shares of common stock by 2.63 on the conversion date. The Share Exchange closed on November 29, 2018.  As a result of the Share Exchange, the former shareholders of 4LESS became the controlling shareholders of the Company. The Share Exchange was accounted for as a reverse takeover/recapitalization effected by a share exchange, wherein 4LESS is considered the acquirer for accounting and financial reporting purposes. The capital, share price, and earnings per share amount in these consolidated financial statements for the period prior to the reverse merger were restated to reflect the recapitalization in accordance with the shares issued as a result of the reverse merger except otherwise noted.

On November 19, 2019 The 4Less Group acquired the URL Autoparts4Less.com and changed the name of their wholly owned subsidiary from the 4Less Corp. to Auto Parts 4Less, Inc. On April 28, 2022 the Company changed its name from The 4LESS Group, Inc. to Auto Parts 4Less Group, Inc.

Our Business

Like many small businesses, Christopher Davenport, the founder of Auto Parts 4Less (“4Less”) previously named The 4less Corp., the wholly owned subsidiary of Auto Parts 4Less Group, Inc., began selling auto parts on eBay and shipping those items out of his garage in 2013.  What started out as a hobby, quickly grew into a fully functioning ecommerce aftermarket auto parts company that required a significant technical staff and facilities to support their growth. In June of 2015, they leased their first office.

Originally the company listed their auto parts in the different marketplaces such as Amazon, eBay, Walmart and Jet.

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Starting in 2016 the company began investing to become their own ecommerce platform thereby allowing their auto parts to be direct listed across marketplace and social media sites. Technical achievements including CRM system, warehouse integration API, warehouse inventory software to name a few.

In 2019, shortly after the share exchange with MedCareers Group, Inc., with technology upgrades in place, 4Less began successfully moving majority of sales from third party marketplaces direct to their proprietary ecommerce web site Liftkits4Less.com. By doing so the company saves 8%-10% in fees charged by the major marketplace’s such as e-Bay and Amazon as well as further building the 4less brand as a leading ecommerce site for auto parts.

On November 19, 2019 the Company acquired the URL Autoparts4Less.com and changed the name of their wholly owned subsidiary from the 4Less Corp. to Auto Parts 4Less, Inc. With the acquisition of the URL AutoParts4Less.com, the Company also began focusing all of their efforts and resources on building out a flagship automotive marketplace with the potential to offer buyers a wide range of automotive parts for cars, trucks, boats, motorcycles and RV’s on a single platform.

In August 2021 the Company launched a beta test version of Autoparts4less.com. In a short period of time after the beta launch the company realized that with the amount of interest received from numerous types of larges sellers, which included not only ecommerce sites presently selling parts online, but also interest from other large parts sellers such as warehouse distributors, new car dealers with large inventories of parts as well as brick and mortar parts retailers looking to move sales online, the platform originally created would soon be inadequate. As such, the Company made the decision to upgrade to a larger and more advanced platform solution so they immediately began implementation of the AWS Fargate serverless platform solution.

The platform upgrade was completed in the 1^st quarter FYE 2023, with marketplace sales expected to begin in 2^nd quarter 2023.

On April 28. 2022 the Company changed its name from The 4Less Group, Inc. to Auto Parts 4Less Group, Inc.

Competition

We directly compete for buyers to use our web sites over current e-commerce sites as well as sellers that utilize major marketplaces such as Amazon and eBay.  However, we believe our specialty ecommerce website liftkits4less.com offers substantial value-added content including installation guides, install videos, high impact photos, order customization and live chat with a technical expert.

Additionally, we believe that our automotive parts marketplace AutoParts4less.com, with no known large challengers presently in the space outside of “all things to all people” online marketplaces Amazon and eBay, has the opportunity to quickly be branded when launched as the auto part’s industry premier marketplace just as sites like Etsy, Wayfair, Uber and Chewey’s have been able to successfully do in their industries.

Results of Operations for the Three Months Ended April 30, 2022 Compared to the Three Months Ended April 30, 2021

The following table shows our results of operations for the three months ended April 30, 2022 and 2021. The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

							Change
	2022			2021			$			%
Total Revenues	$	1,729,930			3,728,784		$	(1,998,854	)	(54%	)
Gross Profit		261,927			962,206			(700,279	)	(73%	)
Total Operating Expenses		1,282,955			2,204,564			(921,609	)	(42%	)
Total Other Income (Expense)		(1,573,130	)		674,801			(2,247,931	)	(333%	)
Net Income (Loss)	$	(2,594,158	)	$	(567,557	)	$	(2,026,601	)	(357%	)

Revenue

The following table shows revenue split between proprietary and third-party website revenue for the three months ended April 30, 2022 and 2021:

					Change
	2022		2021		$			%
Proprietary website revenue	$	1,236,243		2,123,101	$	(886,858	)	(42%	)
Third-party website revenue		493,687		1,605,683		(1,111,996	)	(69%	)
Total Revenue	$	1,729,930	$	3,728,784	$	(1,998,854	)	(54%	)

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We had total revenue of $1,729,930 for the three months ended April 30, 2022, compared to $3,728,784 for the three months ended April 30, 2021. Sales decreased by $1,998,854 primarily due to present economic conditions reducing consumer demand. In the prior year’s quarter, sales were driven by high consumer demand as a result of economic stimulus packages provided during the pandemic and an aggressive marketing push by the Company. In the current fiscal we are still dealing with supply issues as we have less product available for sale as a result. The Company also recorded $332,823 in deferred revenue for the three months ended April 30, 2022, which will be recognized as revenue next quarter and recognized $425,560 out of the total $665,143 from last quarter. The deferred revenue represents orders paid by customers this period but delivered in the following period due to back orders and processing and delivery times. The Company also recorded $291,684 in customer deposits for the three months ended April 30, 2022 and recognized $324,211 from the prior quarter out of a total of $530,900. The customer deposits are orders that were either cancelled and payment refunded to the customers subsequent to April 30, 2022 or shall remain as deposits until the item is either delivered and recorded as revenue or cancelled and refunded.

The Company’s focus continues in growing its proprietary website revenues and the Company was successful in that, increasing its proprietary website revenue to 71% of total sales this current quarter from 57% the previous year’s quarter.

Gross Profit

We had gross profit of $261,927 for the three months ended April 30, 2022, compared to gross profit of $962,206 for the three months ended April 30, 2021. Gross profit decreased by $700,279 as a result of the decreased revenues explained above and also due to an increase in cost because the Company had to purchase goods at higher product costs from distributers rather than the usual manufacturers for many of the new available products or some of the products that were not available from the usual manufacturers due to still existing supply chain issues.

Operating Expenses

The following table shows our operating expenses for the three months ended April 30, 2022 and 2021:

					Change
	2022		2021		$			%
Depreciation	$	12,938	$	10,735		2,203		21%
Postage, Shipping and Freight		74,698		193,187		(118,489	)	(61%	)
Marketing and Advertising		274,427		608,034		(333,607	)	(55%	)
E Commerce Services, Commissions and Fees		330,697		416,127		(85,430	)	(21%	)
Operating lease cost		30,479		30,479		—		0%
Personnel Costs		205,299		297,493		(92,194	)	(31%	)
General and Administrative		354,417		648,509		(294,092	)	(45%	)
Total Operating Expenses	$	1,282,955	$	2,204,564		(921,609	)	(42%	)

•   Depreciation increased by $2,203 due to full depreciation on the two new vehicles acquired last year’s quarter.

•   Postage shipping and freight decreased by $118,489 due to lower sales.

•   Marketing and advertising decreased by $333,607 due to aggressive promotional efforts in 2021 to drive sales to our proprietary websites and build our brands. For the quarter ended April 30, 2022 the spending has resumed to usual levels.

•   E Commerce Services, Commissions and Fees decreased by $85,430 due to lower sales.

•   Personnel Costs decreased by $92,194 due to staff reductions as a result of lower demand.

•   General and Administrative decreased by $294,092 due to a decrease of $272,320 in investor relations costs as a result of the REG A subscription offering in the prior year’s quarter and a reduction of $57,516 in professional fees due to associated reporting and business requirements of the afore mentioned REG A subscription from the prior year’s quarter. These decreases were partially offset by increases in insurance costs.

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Other Income (Expense)

The following table shows our other income and expenses for the three months ended April 30, 2022 and 2021:

							Change
Other Income (Expense)	2022			2022			$			%
Gain (Loss) on Derivatives	$	(337,737	)	$	4,187			(341,924	)	(8,166%	)
Gain on Settlement of Debt		3,589			914,049			(910,460	)	(100%	)
Amortization of Debt Discount		(725,280	)		(128,528	)		(596,752	)	464%
Interest Expense		(513,702	)		(114,907	)		(398,795	)	347%
Total Other Income (Expense)	$	(1,573,130	)	$	674,801			(2,247,931	)	(333%	)

The changes above can be explained by the increase in convertible debt this quarter ended April 30,2022. Convertible debt increased to $5,603,400 from $521,500 so accordingly there were large increases in amortization expense and interest expense. As a result of the debt exchanges and settlements for the quarter ended April 30, 2021, the gain on settlement of debt was higher. The higher loss on derivatives is a function of the market factors in the valuation of the derivative liability described in Note 8.

We had a net loss of $2,594,158 for three months ended April 30, 2022, compared to net income of $567,557 for three months ended April 30, 2021. The decrease in net income was mainly due to the lower sales and higher financing costs for the current year’s quarter as well as the gain on settlement in debt that occurred in the three months ended April 30, 2021. These changes were partially offset by a large decrease in operating expenses for reason set out above.

Liquidity and Capital Resources

Management believes that we will continue to incur losses for the immediate future. Therefore, we will need additional equity or debt financing until we can achieve profitability and positive cash flows from operating activities, if ever. These conditions raise substantial doubt about our ability to continue as a going concern. Our unaudited consolidated financial statements do not include any adjustments relating to the recovery of assets or the classification of liabilities that may be necessary should we be unable to continue as a going concern.

As of April 30, 2022, we had a cash balance of $461,060, inventory of $398,881 and $10,429,545 in current liabilities. At the current cash consumption rate, we will need to consider additional funding sources going forward. We are taking proactive measures to reduce operating expenses and drive growth in revenue.

The successful outcome of future activities cannot be determined at this time and there is no assurance that, if achieved, we will have sufficient funds to execute our intended business plan or generate positive operating results.

Capital Resources

The following table summarizes total current assets, liabilities and working capital (deficit) for the periods indicated:

	April 30, 2022			January 31, 2022
Current assets	$	899,253		$	564,615
Current liabilities		10,429,545			8,890,462
Working capital (deficits)	$	(9,530,292	)	$	(8,325,847	)

Net cash used in operations for the three months ended April 30, 2022 was $1,725,709 as compared to net cash used in operations of $820,458 for the three months ended April 30, 2021. Net cash used in investing activities for the three months ended April 30, 2022 was $1,142 as compared to $35,000 for the same period in 2021. Net cash provided by financing activities for the three months ended April 30, 2022 was $2,110,413 as compared to $1,920,115 for the three months ended April 30, 2021.

- 26 -

ITEM 3. Quantitative and Qualitative Disclosure about Market Risk.

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), we are not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

ITEM 4. Controls and Procedures

(a)           Evaluation of disclosure controls and procedures. Our Chief Executive Officer and Principal Financial Officer, after evaluating the effectiveness of our “disclosure controls and procedures” (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q (the “Evaluation Date”), has concluded that as of the Evaluation Date, our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Moving forward, we hope that our Chief Executive Officer and Principal Financial Officer will be able to devote the additional time and effort required so that our disclosure controls and procedures can become effective. Notwithstanding the assessment that our internal controls and procedures were not effective, we believe that our financial statements contained in this Quarterly Report for the quarter ended April 30, 2022 fairly present our financial position, results of operations and cash flows for the years and months covered thereby in all material respects.

(b)           Changes in internal control over financial reporting. There were no changes in our internal control over financial reporting during our most recent fiscal quarter that materially affected, or were reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 1A. Risk Factors

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), we are not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

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

Recent Sales of Unregistered Securities

None.

Item 3. Default Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

See the Exhibit Index immediately following the signature page of this Report on Form 10-Q.

- 27 -

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Auto Parts 4Less Group, Inc.

By:  /s/ Timothy Armes

Timothy Armes

Chairman (Director), Chief Executive Officer, President, Secretary and Treasurer

Date: June 14, 2022

- 28 -

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
31.1	Certificate of the Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *
32.1	Certificate of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. **
101.SCH	Inline XBRL Taxonomy Extension Schema Document **
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document **
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document **
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document **
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document **
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) **

__________

*   Filed herewith.

**   In accordance with Regulation S-T, the Interactive Data Files in Exhibit 101 to the Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed.”

- 29 -

EX-31

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy Armes, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Auto Parts 4Less Group, Inc.;

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

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

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

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

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

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

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

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

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

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

Date: June 14, 2022

By: /s/ Timothy Armes

Timothy Armes

Chief Executive Officer

(Principal Executive Officer and Principal Financial/Accounting Officer)

EX-32

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy Armes, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Auto Parts 4Less Group, Inc. on Form 10-Q for the period ended April 30, 2022 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of The 4Less Group, Inc.

By: /s/ Timothy Armes

Timothy Armes

Chief Executive Officer

(Principal Executive Officer and Principal Financial/Accounting Officer)

June 14, 2022

XML

Cover - shares	3 Months Ended
	Apr. 30, 2022	Jun. 14, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Apr. 30, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--01-31
Entity File Number	333-152444
Entity Registrant Name	AUTO PARTS 4LESS GROUP, INC.
Entity Central Index Key	0001438901
Entity Tax Identification Number	90-1494749
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	106 W. Mayflower
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89030
City Area Code	702
Local Phone Number	267-6100
Title of 12(b) Security	Common Stock
Trading Symbol	FLES
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,544,449

XML

Consolidated Balance Sheets Unaudited - USD ($)	Apr. 30, 2022	Jan. 31, 2022
Current Assets
Cash and Cash Equivalents	$ 461,060	$ 77,498
Inventory	398,881	432,583
Prepaid Expenses	12,189	16,065
Deferred Offering Costs	23,000	23,000
Other Current Assets	4,123	15,469
Total Current Assets	899,253	564,615
Operating Lease Assets	213,714	242,583
Property and Equipment, net of accumulated depreciation of $135,406, and $122,469	209,541	221,336
Total Assets	1,322,508	1,028,534
Current Liabilities
Bank overdraft		11,055
Accounts Payable	1,093,942	1,228,039
Accrued Expenses	943,482	796,397
Accrued Expenses – Related Party	46,273	46,173
Customer Deposits	291,684	530,900
Deferred Revenue	332,823	665,143
Short-Term Debt	3,291,220	3,454,133
Current Operating Lease Liability	96,772	100,001
Short-Term Convertible Debt, net of debt discount of $3,339,672 and $2,131,034	2,263,728	647,966
Derivative Liabilities	1,991,793	1,263,442
Shareholder Loans Payable	50,000	119,476
Current Portion – Long-Term Debt	27,828	27,737
Total Current Liabilities	10,429,545	8,890,462
Non-Current Lease Liability	114,423	138,551
Long-Term Debt	108,962	115,900
Total Liabilities	10,652,930	9,144,913
Commitments and Contingencies
Stockholders’ Deficit
Common Stock, $0.000001 par value, 75,000,000 shares authorized, 1,500,362 and 341,023 shares issued, issuable and outstanding	1
Additional Paid In Capital	20,845,448	19,465,327
Accumulated Deficit	(31,045,891)	(28,451,733)
Total Stockholders’ Deficit	(10,200,422)	(8,986,379)
Total Liabilities and Stockholders’ Deficit	1,322,508	1,028,534
Series D Preferred Stock [Member]
Current Liabilities
Preferred Stock – Series C, $0.001 par value, 7,250 shares authorized, 0 and 7,250 shares issued and outstanding	870,000	870,000
Series A Preferred Stock [Member]
Current Liabilities
Preferred Stock – Series C, $0.001 par value, 7,250 shares authorized, 0 and 7,250 shares issued and outstanding
Stockholders’ Deficit
Total Stockholders’ Deficit
Series B Preferred Stock [Member]
Current Liabilities
Preferred Stock – Series C, $0.001 par value, 7,250 shares authorized, 0 and 7,250 shares issued and outstanding	20	20
Stockholders’ Deficit
Total Stockholders’ Deficit	20	20
Series C Preferred Stock [Member]
Current Liabilities
Preferred Stock – Series C, $0.001 par value, 7,250 shares authorized, 0 and 7,250 shares issued and outstanding		7
Stockholders’ Deficit
Total Stockholders’ Deficit		$ 7

XML

Consolidated Balance Sheets Unaudited (Parenthetical) - USD ($)	Apr. 30, 2022	Jan. 31, 2022
Net of accumulated depreciation	$ 135,406	$ 122,469
Net of debt discount	$ 3,339,672	$ 2,131,034
Common stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	1,500,362	341,023
Common stock, shares outstanding	1,500,362	341,023
Series D Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	870	870
Preferred stock, shares issued	870	870
Preferred stock, shares outstanding	870	870
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	330,000	330,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued	20,000	20,000
Preferred stock, shares outstanding	20,000	20,000
Series C Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	7,250	7,250
Preferred stock, shares issued	0	7,250
Preferred stock, shares outstanding	0	7,250

XML

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Income Statement [Abstract]
Revenue	$ 1,729,930	$ 3,728,784
Cost of Revenue	1,468,003	2,766,578
Gross Profit	261,927	962,206
Operating Expenses:
Depreciation	12,938	10,735
Postage, Shipping and Freight	74,698	193,187
Marketing and Advertising	274,427	608,034
E Commerce Services, Commissions and Fees	330,697	416,127
Operating lease cost and rent	30,479	30,479
Personnel Costs	205,299	297,493
General and Administrative	354,417	648,509
Total Operating Expenses	1,282,955	2,204,564
Net Operating Loss	(1,021,028)	(1,242,358)
Other Income (Expense)
Gain (Loss) on Change in Fair Value of Derivatives	(337,737)	4,187
Gain on Settlement of Debt	3,589	914,049
Amortization of Debt Discount	(725,280)	(128,528)
Interest Expense	(513,702)	(114,907)
Total Other Income (Expense)	(1,573,130)	674,801
Net Income (Loss)	$ (2,594,158)	$ (567,557)
Basic Average Shares Outstanding	1,342,433	194,010
Basic Income (Loss) per Share	$ (1.93)	$ (2.93)
Diluted Weighted Average Shares Outstanding	1,342,433	194,010
Diluted Income (Loss) per Share	$ (1.93)	$ (2.93)

XML

Consolidated Statement of Changes in Stockholders' Deficit (Unaudited) - USD ($)	Series A Preferred Stock [Member]	Series B Preferred Stock [Member]	Series C Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Jan. 31, 2021		$ 20	$ 7		$ 14,291,760	$ (20,381,977)	$ (6,090,190)
Shares, outstanding, beginning balance at Jan. 31, 2021		20,000	7,250	142,716
Common Stock Issued as Payment for Fees					107,500		107,500
Common Stock Issued as Payment for Fees (in shares)				5,000
Issuance of Common Stock as Part of REG A Subscription					2,194,500		2,194,500
Issuance of Common Stock as Part of REG A (in shares)				109,725
Rounding					1		1
Net (Loss)						(567,557)	(567,557)
Ending Balance at Apr. 30, 2021		$ 20	$ 7		16,593,761	(20,949,534)	(4,355,746)
Shares, outstanding, ending balance at Apr. 30, 2021		20,000	7,250	257,441
Beginning balance at Jan. 31, 2022		$ 20	$ 7		19,465,327	(28,451,733)	(8,986,379)
Shares, outstanding, beginning balance at Jan. 31, 2022		20,000	7,250	341,023
Relative Fair Value of Equity Issued with Debt ( in shares) at Jan. 31, 2022				254,141
Net (Loss)						(2,594,158)	(2,594,158)
Conversion of Preferred Series C Shares into Shares Of Common Stock			$ (7)	$ 1	6
Conversion of Preferred Series C Shares into Shares Of Common Stock ( in shares)			(7,250)
Conversion of Preferred Series C Shares into Shares Of Common Stock ( in shares)				905,110
Relative Fair Value of Equity Issued with Debt					1,064,965		1,064,965
Penalty Warrants Recorded as Interest					315,150		315,150
Rounding shares
Rounding shares (in shares)				88
Ending Balance at Apr. 30, 2022		$ 20		$ 1	$ 20,845,448	$ (31,045,891)	$ (10,200,422)
Shares, outstanding, ending balance at Apr. 30, 2022		20,000		1,500,362

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ (2,594,158)	$ (567,557)
Adjustments to reconcile net loss to cash used by operating activities:
Depreciation	12,938	10,735
(Gain) loss in Fair Value on Derivative Liabilities	337,737	(4,187)
Amortization of Debt Discount	725,280	128,528
Interest Expense on Penalty Warrants	315,150
Loan Penalties Capitalized to Loan and Accrued Interest		28,000
Stock Based Payment of Consulting Fees		107,500
Gain on Settlement of Debt	(3,589)	(914,049)
Reduction of Right of Use Asset	27,357	23,203
Accretion of Lease Liability	3,122	7,276
Change in Operating Assets and Liabilities:
Decrease (Increase) in Inventory	33,702	15,886
(Increase) Decrease in Prepaid Rent and Expenses	(5,667)	1,762
(Increase) Decrease in Other Current Assets	11,346	(2,677)
Increase (Decrease) in Accounts Payable	(134,100)	(2,558)
Increase in Accrued Expenses	147,088	28,548
Increase (Decrease) in Accrued Expenses -Related Party	100	(25,000)
Operating Lease Payments	(30,479)	(30,479)
Increase (Decrease) in Customer Deposits	(239,216)	80,547
Increase (Decrease) in Deferred Revenue	(332,320)	294,064
CASH FLOWS (USED IN) OPERATING ACTIVITIES	(1,725,709)	(820,458)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property and Equipment	(1,142)	(35,000)
CASH FLOWS (USED IN) INVESTING ACTIVITIES	(1,142)	(35,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Issuance of Common Shares		2,099,683
Proceeds from Share Subscriptions Receivable		100,000
Repayment of Shareholder loans payable, net	(69,476)
Proceeds from Short Term Debt
Payments on Short Term Debt	(162,913)	(128,075)
Payments on Long Term Debt	(6,848)	(1,993)
Proceeds from Issuance of Convertible Notes Payable	2,395,250
Payments on Convertible Notes Payable	(45,600)	(149,500)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	2,110,413	1,920,115
NET INCREASE IN CASH	383,562	1,064,657
CASH AT BEGINNING OF PERIOD	77,498	277,664
CASH AT END OF PERIOD	461,060	1,342,321
Supplemental Disclosure of Cash Flows Information:
Cash Paid for Interest	23,872	42,949
Derivative Debt Discount	394,203
Relative Fair Value of Warrants and Common Shares Issued with Debt and Applies as Discount	1,064,965
Debt discount	474,750
Conversion of Series C Preferred Stock Into Common Stock	6
Issuance of Common Shares for Share Subscription Receivable		94,817
Loans to acquire Fixed Assets		$ 151,327

XML

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Apr. 30, 2022

Accounting Policies [Abstract]

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Business:

Nature of Business – Auto Parts 4Less Group, Inc., (the “Company”), formerly The 4Less Group, Inc., was incorporated under the laws of the State of Nevada on December 5, 2007. The Company, under the name MedCareers Group, Inc. (“MCGI”) formally operated a website for nurses, nursing schools and nurses’ organizations designed for better communication between nurses and the nursing profession.

On November 29, 2018, the Company entered into a transaction (the “Share Exchange”), pursuant to which the Company acquired 100% of the issued and outstanding equity securities of The 4LESS Corp. (“4LESS”), in exchange for the issuance of (i) nineteen thousand (19,000) shares of Series B Preferred Stock, (ii) six thousand seven hundred fifty (6,750) shares of Series C Preferred Stock, and (iii) 870 shares of Series D Preferred Stock. The Series C Preferred Shares have a right to convert into common stock of the Company by multiplying the number of issued and outstanding shares of common stock by 2.63 on the conversion date. The Share Exchange closed on November 29, 2018.  As a result of the Share Exchange, the former shareholders of 4LESS became the controlling shareholders of the Company. The Share Exchange was accounted for as a reverse takeover/recapitalization effected by a share exchange, wherein 4LESS is considered the acquirer for accounting and financial reporting purposes. The capital, share price, and earnings per share amount in these consolidated financial statements for the period prior to the reverse merger were restated to reflect the recapitalization in accordance with the shares issued as a result of the reverse merger except otherwise noted.

4LESS was formed as Vegas Suspension & Offroad, LLC on October 24, 2013 as a Nevada limited liability company and converted to a Nevada corporation with the same name on May 8, 2017. On April 2, 2018, the Company changed its name to The 4LESS Corp. The Corporation had S Corporation status. The Corporation operates as an e-commerce auto and truck parts sales company. As a result of the share exchange, The 4Less Group, Inc. is now a holding company operating through 4LESS and offers products including exhaust systems, suspension systems, wheels, tires, stereo systems, truck bed covers, and shocks. On December 30, 2019 4LESS changed its name to Auto Parts 4Less, Inc..On April 28, 2022 the Company changed its name from The 4Less Group, Inc. to Auto Parts 4Less Group, Inc.

Significant Accounting Policies:

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these condensed financial statements.

Basis of Presentation:

The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim unaudited consolidated financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements. Certain information and footnote disclosure normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the SEC. The unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended January 31, 2022 and notes thereto contained in the Company’s Annual Report on Form 10-K filed on May 9, 2022.

Principles of Consolidation:

The condensed financial statements include the accounts of Auto Parts 4Less Group, Inc. as well as The Auto Parts 4Less, Inc., and JBJ Wholesale LLC. All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated.

Use of Estimates:

In order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determine whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions used to value derivative liabilities.

Reclassifications

Certain amounts in the Company’s condensed consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods.

Cash and Cash Equivalents:

The Company considers all highly liquid instruments with a maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The carrying amount of cash and cash equivalents approximates fair market value.

Inventory Valuation

Inventories are stated at the lower of cost or net realizable value. Inventories are valued on a first-in, first-out (FIFO) basis. Inventory is comprised of finished goods.

Concentrations

Cost of Goods Sold

For the three months ended April 30, 2022 the Company purchased approximately 52% of its inventory and items available for sale from third parties from three vendors. As of April 30, 2022, the net amount due to the vendors included in accounts payable was $433,897. For the three months ended April 30, 2021, the Company purchased from three vendors approximately 54% of its inventory and items available for sale from third parties. As of April 30, 2021, the net amount due to these vendors included in accounts payable was $462,991. The Company believes there are numerous other suppliers that could be substituted should a supplier become unavailable or non-competitive.

Leases

We elected the hindsight practical expedient to determine the lease term for existing leases. Our election of the hindsight practical expedient resulted in the shortening of lease terms for certain existing leases and the useful lives of corresponding leasehold improvements. In our application of hindsight, we evaluated the performance of the leased stores and the associated markets in relation to our overall real estate strategies, which resulted in the determination that most renewal options would not be reasonably certain in determining the expected lease term.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. ASC 740, Accounting for Income Taxes requires companies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%. A corresponding offset has been made to the valuation allowance, and any potential other taxes arising due to the Tax Act will result in reductions to the Company’s net operating loss carryforward and valuation allowance. The Company will continue to analyze the Tax Act to assess its full effects on the Company’s financial results, including disclosures, for the Company’s fiscal year ending January 31, 2023, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements.

Fair Value of Financial Instruments:

The Company’s financial instruments consist of cash, accounts payable, advances and notes payable. The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to the short-term nature of these financial instruments. Derivatives are recorded at fair value at each period end. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date.

The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 Inputs – Quoted prices for identical instruments in active markets.

Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs – Instruments with primarily unobservable value drivers.

The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of April 30, 2022:

	April 30, 2022		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Derivative Liabilities – embedded redemption feature	$	1,991,793	$	—	$	—	$	1,991,793
Totals	$	1,991,793	$	—	$	—	$	1,991,793

Related Party Transactions:

The Company has a verbal policy that includes procedures intended to ensure compliance with the related party provisions in common practice for public companies. For purposes of the policy, a “related party transaction” is a transaction in which the Company or any one of its subsidiaries participates and in which a related party has a direct or indirect material interest, other than ordinary course, arms-length transactions of less than 1% of the revenue of the counterparty. Any transaction exceeding the 1% threshold, and any transaction involving consulting, financial advisory, legal or accounting services that could impair a director’s independence, must be approved by the CEO. Any related party transaction in which an executive officer or a Director has a personal interest, or which could present a possible conflict under the Guide to Ethical Conduct, must be approved by Board of Directors, following appropriate disclosure of all material aspects of the transaction.

Derivative Liability

The derivative liabilities are valued as a level 3 input under the fair value hierarchy for valuing financial instruments. The derivatives arise from convertible debt where the debt and accrued interest is convertible into common stock at variable conversion prices and reclassification of equity instrument to liability due to insufficient shares for issuance. As the price of the common stock varies, it triggers a gain or loss based upon the discount to market assuming the debt was converted at the balance sheet date. When evaluating the effect of the issuance of new equity-linked or equity-settled instruments on previously issued instruments, the Company uses first-in, first-out method (“FIFO”) where authorized and unused shares would first be used to satisfy the earliest issued equity-linked instruments.

The fair value of the derivative liability is determined using a lattice model, is re-measured on the Company’s reporting dates, and is affected by changes in inputs to that model including our stock price, historical stock price volatility, the expected term, and both high risk and the risk-free interest rate. The most sensitive inputs to the model are for expected time for the holder to convert or be repaid and the estimated historical volatility of the Company’s common stock.  However, because the historical volatility of the Company’s common stock is so high (see Note 9), the sensitivity required to change the liability by 1% as of April 30, 2022 is greater than 25% change in historical volatility as of that date.  The other inputs, such as risk free rate, high yield cash rate and stock price all have a sensitivity for a 1% change in the input variable results in a significantly less than 1% change in the calculated derivative liability.

Revenue Recognition

The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue when control is transferred over the promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. The following five steps are applied to achieve that core principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the company satisfies a performance obligation

Because the Company’s sales agreements generally have an expected duration of one year or less, the Company has elected the practical expedient in ASC 606-10-50-14(a) to not disclose information about its remaining performance obligations.

Disaggregation of Revenue: Channel Revenue

The following table shows revenue split between proprietary and third-party website revenue for the three months ended April 30, 2022 and 2021:

					Change
	2022		2021		$			%
Proprietary website revenue	$	1,236,243		2,123,101	$	(886,858	)	(42%	)
Third-party website revenue		493,687		1,605,683		(1,111,996	)	(69%	)
Total Revenue	$	1,729,930	$	3,728,784	$	(1,998,854	)	(54%	)

The Company’s performance obligations are satisfied at the point in time when products are received by the customer, which is when the customer has title and obtained the significant risks and rewards of ownership. Therefore, the Company’s contracts have a single performance obligation (shipment of product). The Company primarily receives fixed consideration for sales of product. Shipping and handling amounts paid by customers are primarily for online orders, and are included in revenue. Sales tax and other similar taxes are excluded from revenue.

Stock-Based Compensation:

The Company accounts for stock options at fair value. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option.

Earnings (Loss) Per Common Share:

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from the exercise of stock options and/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.

Basic loss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share is computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to include all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments. Diluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share.

Recently Issued Accounting Standards:

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) which simplifies goodwill impairment testing by requiring that such periodic testing be performed by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The policy is effective for fiscal years, including interim periods, beginning after December 15, 2019. We adopted on February 1, 2020 and the adoption had no impact.

Fair Value Measurement: In 2018, the FASB issued amended guidance to remove, modify and add disclosure requirements for fair value measurements. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosure requirements. Transition is on a prospective basis for the new and modified disclosures, and on a retrospective basis for disclosures that have been eliminated. The adoption of this guidance on February 1, 2020 did not have a material impact on our consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvement to Nonemployee Share-Based Payment Accounting, which is part of the FASB’s simplification initiative to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This update provides consistency in the accounting for share-based payments to nonemployees with that of employees. The updated guidance had no impact on the Company’s consolidated financial position, results of operations or cash flows.

In December 2019, the Financial Accounting Standards Board (FASB) issued amended guidance on the accounting and reporting of income taxes. The guidance is intended to simplify the accounting for income taxes by removing exceptions related to certain intra-period tax allocations and deferred tax liabilities; clarifying guidance primarily related to evaluating the step-up tax basis for goodwill in a business combination; and reflecting enacted changes in tax laws or rates in the annual effective tax rate. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.

In January 2020, the FASB issued new guidance intended to clarify certain interactions between accounting standards related to equity securities, equity method investments and certain derivatives. The guidance addresses accounting for the transition into and out of the equity method of accounting and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.

In August 2020, the FASB issued amended guidance on the accounting for convertible instruments and contracts in an entity’s own equity. The guidance removes the separation model for convertible debt instruments and preferred stock, amends requirements for conversion options to be classified in equity as well as amends diluted earnings per share (EPS) calculations for certain convertible debt instruments. The amended guidance is effective for interim and annual periods in 2022. The application of the amendments in the new guidance are to be applied either on a modified retrospective or a retrospective basis. We are currently assessing the effect that the adoption of this standard will have on the Company’s consolidated financial statements upon adoption

In addition to the above, the Company has reviewed all other recently issued, but not yet effective, accounting pronouncements, and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations.

Recently Issued Accounting Standards Not Yet Adopted

In March 2020, the FASB issued optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for accounting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The amended guidance is effective for interim and annual periods in 2023 and is to be applied prospectively. Early adoption is permitted on a retrospective basis to the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations.

In November 2021, the FASB issued new guidance to increase the transparency of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The guidance requires annual disclosures of such transactions to include the nature of the transactions and the significant terms and conditions, the accounting treatment and the impact to the company’s financial statements. The guidance is effective for annual periods beginning in 2022 and is to be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

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

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GOING CONCERN AND FINANCIAL POSITION

3 Months Ended

Apr. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN AND FINANCIAL POSITION

NOTE 2 – GOING CONCERN AND FINANCIAL POSITION

The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has an accumulated deficit of $31,045,891 as of April 30, 2022 and has a working capital deficit at April 30, 2022 of $9,530,292. As of April 30, 2022, the Company only had cash and cash equivalents of $461,060 and approximately $151,000 of short-term debt in default. The short-term debt agreements provide legal remedies for satisfaction of defaults, none of the lenders to this point have pursued their legal remedies. While the Company has plans to grow its revenues through the new website , at this time, our current liquidity position raises substantial doubt about the Company’s ability to continue as a going concern.

Management’s plan is to raise additional funds in the form of debt or equity in order to continue to fund losses until such time as revenues can sustain the Company. However, there is no assurance that management will be successful in being able to continue to obtain additional funding. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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PROPERTY

3 Months Ended

Apr. 30, 2022

Property, Plant and Equipment [Abstract]

PROPERTY

NOTE 3 – PROPERTY

The Company capitalizes all property purchases over $1,000 and depreciates the assets on a straight-line basis over their useful lives of 3 years for computers and 7 years for all other assets. Property consists of the following at April 30, 2022 and January 31, 2022:

	April 30, 2022			January 31, 2022
Office furniture, fixtures and equipment	$	95,183		$	94,041
Shop equipment		43,004			43,004
Vehicles		206,760			206,760
Sub-total		344,947			343,805
Less: Accumulated depreciation		(135,406	)		(122,469	)
Total Property	$	209,541		$	221,336

Additions to fixed assets for the three months ended April 30, 2022 were $1,142. Additions to fixed assets for the three months ended April 30, 2021 were $186,327 with $35,000 paid in cash and $151,327 financed through vehicle loans.

Depreciation expense was $12,938 and $10,735 for the three months ended April 30, 2022 and April 30, 2021, respectively.

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LEASES

3 Months Ended

Apr. 30, 2022

Leases

LEASES

NOTE 4 – LEASES

We lease certain warehouses and office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we did not combine lease and non-lease components.

Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 17 years or more. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Below is a summary of our lease assets and liabilities at April 30, 2022 and January 31, 2022.

Leases	Classification	April 30, 2022		January 31, 2022
Assets
Operating	Operating Lease Assets	$	213,714	$	242,583
Liabilities
Current
Operating	Current Operating Lease Liability	$	96,772	$	100,001
Noncurrent
Operating	Noncurrent Operating Lease Liabilities		114,423		138,551
Total lease liabilities		$	211,195	$	238,552

Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate of 8% based on the information available at commencement date in determining the present value of lease payments.

CAM charges were not included in operating lease expense and were expensed in general and administrative expenses as incurred.

Operating lease cost and rent was $30,479 and $30,479 for the three months ended April 30, 2022 and April 30, 2021, respectively.

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CUSTOMER DEPOSITS

3 Months Ended

Apr. 30, 2022

Disclosure Customer Deposits Abstract

CUSTOMER DEPOSITS

NOTE 5 – CUSTOMER DEPOSITS

The Company receives payments from customers on orders prior to shipment and these customer deposits on cancelled orders were either returned to the customers subsequent to April 30, 2022 or will remain as deposits until the item is either delivered and recorded as revenue or cancelled and refunded. At April 30, 2022 the Company had received $291,684 (January 31, 2022- $530,900) in customer deposits for orders that were unfulfilled at April 30, 2022 and either canceled subsequent to year end or still awaiting shipment.

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DEFERRED REVENUE

3 Months Ended

Apr. 30, 2022

Revenue from Contract with Customer [Abstract]

DEFERRED REVENUE

NOTE 6 – DEFERRED REVENUE

The Company receives payments from customers on orders prior to shipment and orders that were unfulfilled at April 30, 2022 because of both normal order processing and fulfillment requirements, and back orders are recorded as deferred revenue. At April 30, 2022 the Company had received $332,823 (January 31, 2022- $665,143) in customer payments for orders that were unfulfilled at April 30, 2022 and delivered subsequent to April 30, 2022.

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SHORT-TERM AND LONG-TERM DEBT

3 Months Ended

Apr. 30, 2022

Debt Disclosure [Abstract]

SHORT-TERM AND LONG-TERM DEBT

NOTE 7 – SHORT-TERM AND LONG-TERM DEBT

The components of the Company’s debt as of April 30, 2022 and January 31, 2022 were as follows:

	April 30, 2022			January 31, 2022
Loan dated October 8, 2019, and revised February 29, 2020 and November 10, 2020 repayable June 30, 2022 with an additional interest payment of $20,000(3)	$	97,340	*	$	97,340
Forklift Note Payable, original note of $20,433 Sept 26, 2018, 6.23% interest, 60 monthly payments of $394.54 ending August 2023(1)		7,120	#		8,183
Vehicle loan original loan of $93,239 February 16, 2021, 2.90 % interest. 72 monthly payments of $1,414 beginning on April 2, 2021 and ending on March 2, 2027. Secured by vehicle having net book value of $94,316.		77,677	#		81,346
Vehicle loan original loan of $59,711 March 20,2021, 7.89% interest. 72 monthly payments of $1,048 beginning on May 4, 2021 and ending on April 4, 2027. Secured by vehicle having net book value of $76,164.		51,993	#		54,108
Working Capital Note Payable - $700,000, dated October 29, 2021, repayment of $17,904 per week until Oct 29, 2022, interest rate of approximately 31%(2,4,7)		528,407	*		635,831
Working Capital Note Payable - $650,000, dated October 25, 2021, repayment of $15,875 per week until October 25, 2022, interest rate of approximately 26%(2,4,8)		540,558	*		596,047
Demand loan - $5,000 dated February 1, 2020, 15% interest, 5% fee on outstanding balance		5,000	*		5,000
Demand loan - $2,500, dated March 8, 2019, 25% interest, 5% fee on outstanding balance		2,500	*		2,500
Demand loan - $65,500 dated February 27, 2019, 25% interest, 5% fee on outstanding balance, Secured by the general assets of the Company		12,415	*		12,415
Promissory note - $60,000 dated September 18, 2020 maturing April 30, 2022(10), including $5,000 original issue discount, 15% compounded interest payable monthly		60,000	*		60,000
Promissory note - $425,000 dated August 28, 2020, including $50,000 original issue discount, 15% compounded interest payable monthly. This note matures when the Company receives proceeds through a financing event of $825,000 plus accrued interest on the note.(5)		425,000	*		425,000
Promissory note - $1,200,000 dated August 28, 2020, maturing August 28, 2022, 12%  interest payable monthly with the first six months interest deferred until the 6th month and added to principal.(6)		1,200,000	*		1,200,000
Promissory note - $420,000 dated December 27, 2021, including $20,000 original issue discount, maturing January 27, 2022, non-interest bearing(9)†		420,000	*		420,000
Total	$	3,428,010		$	3,597,770

	April 30, 2022		January 31, 2022
Short-Term Debt	$	3,291,220	$	3,454,133
Current Portion of Long-Term Debt		27,828		27,737
Long-Term Debt		108,962		115,900
Total	$	3,428,010	$	3,597,770

__________

†	In default
*	Short-term loans
#	Long-term loans of  $7,120 including current portion of $4,325
	$51,992 including current portion $8,633
	$81,346 including current portion $14,780

(1)	Secured by equipment having a net book value of $8,733
(2)	The amounts due under the note are personally guaranteed by an officer or a director of the Company.
(3)	On November 10, 2020 the Company amended the agreement extending the maturity to June 30, 2022 from April 8, 2021 and changing monthly payments to $0 from $5,705 and interest rate from 13% to a $20,000 lump sum payable at maturity.
(4)	The Company has pledged a security interest on all accounts receivable and banks accounts of the Company.
(5)	Financing event would be a sale or issuance of assets, debt, shares or any means of raising capital. As the Company has entered into such a transaction the loan has reached maturity and is treated as current. An extension was granted on December 13, 2021 amending the maturity date to April 30, 2022. The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.
(6)	Secured by all assets of the Company. Loan payable in 2 instalments, $445,200 payable August 28, 2021 and $826,800 payable August 28, 2022. On December 13, 2021 the parties amended the maturity date for the first instalment to be April 30, 2022 with ethe second instalment date unchanged. The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.
(7)	This loan replaces $500,000 loan dated June 4, 2021, $422,009 proceeds were used to repay this loan, net cash received was $253,491 after payment of $26,500 in fees.
(8)	This loan replaces $500,000 loan dated June 4, 2021, $359,919 proceeds were used to repay this loan, net cash received was  $267,606 after payment of $22,475 in fees.
(9)	Penalty of 10% of principal amount and 30,000 3 year warrants with an exercise price of $15.00 on initial default and 2% of principal amount and 15,000 3 year warrants with an exercise price of $15.00 for every 30 day default period thereafter. Initial default has been recorded at January 31, 2022 with an interest charge of $42,000 and another $276,000 which was the fair value of the warrants (see Note 11). The Company has defaulted on the February26, 2022, March 28, 2022, April 27, 2022 and will issue an additional 15,000 warrants for each of those defaults. The company recorded $315,050 based on the fair value of the warrants and $25,200 for the 2% fee as interest expense.
(10)	The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.

The following are the minimum amounts due on the notes as of April 30, 2022:

Year Ended	Amount
April 30, 2023	$	3,319,048
April 30, 2024		27,574
April 30, 2025		26,118
April 30, 2026		27,447
April 30, 2027		27,823
Total	$	3,428,010

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SHORT-TERM CONVERTIBLE DEBT

3 Months Ended

Apr. 30, 2022

Debt Disclosure [Abstract]

SHORT-TERM CONVERTIBLE DEBT

NOTE 8 – SHORT-TERM CONVERTIBLE DEBT

The components of the Company’s debt as of April 30, 2022 and January 31, 2022 were as follows:

	Interest	Default Interest	Conversion	Outstanding Principal at
Maturity Date	Rate	Rate	Price	April 30, 2022			January 31, 2022
Nov 4, 2013*	12%	12%	$1,800,000	$	100,000		$	100,000
Jan 31, 2014*	12%	18%	$2,400,000		16,000			16,000
July 31, 2013*	12%	12%	$1,440,000		5,000			5,000
Jan 31, 2014*	12%	12%	$2,400,000		30,000			30,000
Nov 12, 2022	8%	12%	(1)		2,400,000			2,400,000
Jan. 13, 2023	12%	22%	(2)		182,400			228,000
Aug. 11, 2022	10%	10%	(3)		220,000			—
Aug 14, 2022	12%	20%	(4)		1,200,000			—
Aug. 25, 2022	12%	20%	(4)		150,000			—
Aug. 25, 2022	12%	20%	(4)		350,000			—
Oct.. 9, 2022	12%	20%	(4)		200,000			—
Oct.. 9, 2022	12%	20%	(4)		200,000			—
Oct. 22, 2022	12%	20%	(4)		440,000			—
Oct. 22, 2022	12%	20%	(4)		110,000			—
Sub-total					5,603,400			2,779,000
Debt Discount					(3,339,672	)		(2,131,034	)
				$	2,263,728		$	647,966

__________

*	In default.
(1)	lesser of $ 1.25 or 75 % of offering price if there is an uplisting to a national securities exchange.
(2)	75% of closing bid price on day preceding conversion date in event of default
(3)	convertible at 20% discount of the offering price on company’s uplist to NASDAQ
(4)	convertible upon default at conversion price lower of i) lowest price 20 days prior to Issuance ii) lowest price 20 days prior to conversion

The Company had accrued interest payable of $320,433 and $231,412 on the notes at April 30, 2022 and January 31, 2022, respectively.

The Company analyzed the conversion option for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that some instruments should be classified as liabilities due to there being a variable number of shares to be delivered upon settlement of the above conversion options. The instruments are measured at fair value at the end of each reporting period or termination of the instrument with the change in fair value recorded to earnings. The fair value of the embedded conversion option resulted in a discount to the note on the debt modification date. For the three months ended April 30, 2022 and 2021, the Company recorded amortization of debt discount expense of $725,280 and $128,528, respectively. See more information in Note 10.

On February 11, 2022 the Company entered into an unsecured convertible note for $220,000 with a one year maturity, interest rate of 10%, the Company received $200,000 in cash proceeds, recorded, an original issue discount of $20,000, and a derivative discount of $117,676 related to a conversion feature. The discount is amortized over the term of the loan. The note is repayable October 11, 2022.

On February 14, 2022 the Company entered into a new convertible note for $1,200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 120,000 common shares with a five year maturity and an exercise price of $15.00, and 115,000 common shares. If the loan is not in default the company may extend the term to February 14, 2023 with 10 days notice. If the Company does not extend the loan then 60,000 of the issued shares were returnable. On April 7, 2022 the parties agreed to not have the shares returnable in exchange for a waiver on the Company’s breach of certain provisions. The Company received $979,000 in cash proceeds, recorded an original issue discount of $120,000, a derivative discount of $131,489 for the conversion feature, recognized $484,032 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $101,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On February 25, 2022 the Company entered into a new convertible note for $350,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 35,000 common shares with a five year maturity and an exercise price of $15.00, and 33,542 common shares. If the loan is not in default the company may extend the term to February 25, 2023 with 10 days notice. If the Company does not extend the loan then 17,500 of the issued shares were returnable. The Company received $294,000 in cash proceeds, recorded an original issue discount of $35,000, a derivative discount of $37,784 for the conversion feature, recognized $132,255 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $21,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On February 25, 2022 the Company entered into a new convertible note for $150,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 15,000 common shares with a five year maturity and an exercise price of $15.00, and 14,400 common shares. If the loan is not in default the company may extend the term to February 25, 2023 with 10 days notice. If the Company does not extend the loan then 7,500 of the issued shares were returnable. The Company received $119,250 in cash proceeds, recorded an original issue discount of $15,000, a derivative discount of $16,193 for the conversion feature, recognized $52,613 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $15,750. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On March 9, 2022 the Company entered into a new convertible note for $200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 20,000 common shares with a five year maturity and an exercise price of $15.00, and 19,200 common shares. If the loan is not in default the company may extend the term to March 9, 2023 with 10 days notice. If the Company does not extend the loan then 10,000 of the issued shares were returnable. The Company received $168,000 in cash proceeds, recorded an original issue discount of $20,000, a derivative discount of $22,533 for the conversion feature, recognized $85,815 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $12,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On March 9, 2022 the Company entered into a new convertible note for $200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 20,000 common shares with a five year maturity and an exercise price of $15.00, and 9,200 common shares. If the loan is not in default the company may extend the term to March 9, 2023 with 10 days notice. If the Company does not extend the loan then 10,000 of the issued shares were returnable. The Company received $168,000 in cash proceeds, recorded an original issue discount of $20,000, a derivative discount of $22,533 for the conversion feature, recognized $85,728 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $12,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On April 22, 2022 the Company entered into a new convertible note for $440,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 44,000 common shares with a five year maturity and an exercise price of $15.00, and 42,240 common shares. If the loan is not in default the company may extend the term to April 22, 2023 with 10 days notice. If the Company does not extend the loan then 22,000 of the issued shares were returnable. The Company received $373,600 in cash proceeds, recorded an original issue discount of $40,000, a derivative discount of $36,796 for the conversion feature, recognized $161,815 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $26,400. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

On April 22, 2022 the Company entered into a new convertible note for $110,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 11,000 common shares with a five year maturity and an exercise price of $15.00, and 10,560 common shares. If the loan is not in default the company may extend the term to April 22, 2023 with 10 days notice. If the Company does not extend the loan then 5,500 of the issued shares were returnable. The Company received $93,400 in cash proceeds, recorded an original issue discount of $10,000, a derivative discount of $9,199 for the conversion feature, recognized $62,707 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $6,600. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

During the three months ended April 30, 2022 and April 30, 2021 the Company added $0 and $28,000 in penalty interest to these loans, respectively.

As of April 30, 2022, the Company had $151,000 of aggregate debt in default. The agreements provide legal remedies for satisfaction of defaults, none of the lenders to this point have pursued their legal remedies. The Company continues to accrue interest at the listed rates, and plans to seek their conversion or payoff within the next twelve months.

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DERIVATIVE LIABILITIES

3 Months Ended

Apr. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITIES

NOTE 9 – DERIVATIVE LIABILITIES

As of April 30, 2022 and January 31, 2022, the Company had derivative liabilities of $1,991,793 and $1,263,442, respectively. During the three months ended April 30, 2022 and 2021, the Company recorded a loss of $337,737 and a gain of $4,187, respectively, from the change in the fair value of derivative liabilities. Any liabilities resulting from the warrants outstanding are immaterial.

The derivative liabilities are valued as a level 3 input for valuing financial instruments.

The following table presents changes in Level 3 liabilities measured at fair value for the three months ended April 30, 2022. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long- dated volatilities) inputs.

	Level 3
	Derivatives
Balance, January 31, 2022	$	1,263,442
Changes Due to Issuance of New Convertible Notes		394,203
Settlement Due to Repayment of Debt		(3,589	)
Mark to Market Change in Derivatives		337,737
Balance, April 30, 2022	$	1,991,793

The derivatives arise from convertible debt where the debt is convertible into common stock at variable conversion prices which are linked to the trading and/or bid prices of the Company’s common stock as traded on the OTC market.

The fair value of the derivative liability is determined using the lattice model, is re-measured on the Company’s reporting dates, and is affected by changes in inputs to that model including our stock price, expected stock price volatility, the expected term, and the risk-free interest rate. A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liabilities and embedded conversion feature that are categorized within Level 3 of the fair value hierarchy as of April 30, 2022 is as follows:

	Embedded Derivative Liability As of April 30, 2022
Strike price	5.40 - 10.00
Contractual term (years)	0.28 - 0.79 years
Volatility (annual)	137.1% - 201.8
Underlying fair market value	10.00
Risk-free rate	7.38% -8.46
Dividend yield (per share)	0

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STOCKHOLDERS’ DEFICIT

3 Months Ended

Apr. 30, 2022

Equity [Abstract]

STOCKHOLDERS’ DEFICIT

NOTE 10 – STOCKHOLDERS’ DEFICIT

Preferred Stock:

The Series A Preferred Stock has an automatic forced conversion into common stock upon the completion of the repurchase or extinguishing of all “toxic” debt (notes having conversion features tied to the Company’s common stock), the extinguishing of all other existing dilutive debt or equity structures, and total recapitalization of the Company. As of both April 30, 2022, and January 31, 2022 the Company had 0 shares of Series A Preferred issued and outstanding and 330,000 authorized with a par value of $0.001 per share.

At both April 30, 2022 and January 31, 2022, there were 20,000 and 20,000 Series B preferred shares outstanding, respectively. The Series B Preferred Stock have voting rights equal to 51% of the total voting rights at any time. There are no conversion rights granted holders of Series B Preferred shares, they are not entitled to dividends, and the Company does not have the right of redemption. Currently, there are 20,000 Series B preferred shares authorized and issued of the Series B Preferred Stock with a par-value of $0.001 per share.

At both April 30, 2022 and January 31, 2022, there were 0 and 7,250 Series C preferred shares outstanding, respectively. The Series C Preferred Stock have the right to convert into the common stock of the Company by multiplying the number of issued and outstanding shares of common stock by 2.63 on the conversion date. The holders of Series C Preferred shares are not entitled to dividends, and the Company does not have the right of redemption. On February 1, 2022 the 7,250 Series C Preferred stockholders converted all of their outstanding shares for 905,110 shares of common stock. Currently, there are 0 Series C preferred shares authorized and issued with a par-value of $0.001 per share.

At both April 30, 2022 and January 31, 2022, there were 870 Series D preferred shares authorized and outstanding, respectively which with a par value $0.001. All shares of Series D Preferred Stock will rank subordinate and junior to all shares of Series A, B and C of Preferred Stock of the Corporation and pari passu with any of the Corporation’s preferred stock hereafter created as to distributions of assets upon dissolution or winding up of the Corporation, whether voluntary or involuntary. These shares are non-voting, do not receive dividends and are redeemable according to the terms set out as follows:

OPTIONAL REDEMPTION.

(1)  At any time, either the Corporation or the holder may redeem for cash out of funds legally available therefor, any or all of the outstanding Series D Preferred Stock (“Optional Redemption”) at $1,000 per share.

(2)  Should the Corporation exercise the right of Optional Redemption it shall provide each holder of Preferred Stock with at least 30 days’ notice of any proposed optional redemption pursuant this Section VI (an “Optional Redemption Notice”). Any optional redemption pursuant to this Section VI shall be made ratably among holders in proportion to the Liquidation Value of Preferred Stock then outstanding and held by such holders. The Optional Redemption Notice shall state the Liquidation Value of Preferred Stock to be redeemed and the date on which the Optional Redemption is to occur (which shall not be less than thirty (30) or more than sixty (60) Business Days after the date of delivery of the Optional Redemption Notice) and shall be delivered by the Corporation to the holders at the address of such holder appearing on the register of the Corporation for the Preferred Stock. Within seven (7) business days after the date of delivery of the Optional Redemption Notice, each holder shall provide the Corporation with instructions as to the account to which payments associated with such Optional Redemption should be deposited. On the date of the Optional Redemption, provided for in the relevant Optional Redemption Notice, (A) the Corporation will deliver the redemption amount via wire transfer to the account designated by the holders, and (B) the holders will deliver the certificates relating to that number of shares of Preferred Stock being redeemed, duly executed for transfer or accompanied by executed stock powers, in either case, transferring that number of shares to be redeemed. Upon the occurrence of the wire transfer (or, in the absence of a holder designating an account to which funds should be transferred, delivery of a certified or bank cashier’s check in the amount due such holder in connection with such Optional Redemption to the address of such holder appearing on the register of the Corporation for the Preferred Stock), that number of shares of Preferred Stock redeemed pursuant to such Optional Redemption as represented by the previously issued certificates will be deemed no longer outstanding. Notwithstanding anything to the contrary in this Designation, each holder may continue to convert Preferred Stock in accordance with the terms hereof until the date such Preferred Stock is actually redeemed pursuant to an Optional Redemption.

(3)  Should the holder exercise the right of Optional Redemption it shall provide the Corporation with at least 30 days’ notice of any proposed optional redemption pursuant this Section VI (an “Optional Redemption Notice”). The Optional Redemption Notice shall state the value of the Preferred Stock to be redeemed and the date on which the Optional Redemption is to occur (which shall not be less than thirty (30) or more than sixty (60) Business Days after the date of delivery of the Optional Redemption Notice) and shall be delivered by the holder to the Corporation at the address of the Corporation for the Preferred Stock. Within seven (7) business days after the date of delivery of the Optional Redemption Notice, each holder shall provide the Corporation with instructions as to the account to which payments associated with such Optional Redemption should be deposited. On the date of the Optional Redemption, provided for in the relevant Optional Redemption Notice, (A) the Corporation will deliver the redemption amount via wire transfer to the account designated by the holder, and (B) the holder will deliver the certificates relating to that number of shares of Preferred Stock being redeemed, duly executed for transfer or accompanied by executed stock powers, in either case, transferring that number of shares to be redeemed. Upon the occurrence of the wire transfer (or, in the absence of a holder designating an account to which funds should be transferred, delivery of a certified or bank cashier’s check in the amount due such holder in connection with such Optional Redemption to the address of such holder appearing on the register of the Corporation for the Preferred Stock), that number of shares of Preferred Stock redeemed pursuant to such Optional Redemption as represented by the previously issued certificates will be deemed no longer outstanding. Notwithstanding anything to the contrary in this Designation, each holder may continue to convert Preferred Stock in accordance with the terms hereof until the date such Preferred Stock is actually redeemed pursuant to an Optional Redemption.

The Series D Preferred Stock is not entitled to any pre-emptive or subscription rights in respect of any securities of the Corporation.

Neither the Company nor any Series D preferred stockholders has given notice to exercise the redemption as of April 30, 2022 on the date of the financial statements.

Because the holders of the Series D preferred stock have the right to demand cash redemption, the cumulative amount of the redemption feature is included in Temporary Equity as of April 30, 2022 and January 31, 2022.

Common Stock

The Company is authorized to issue 75,000,000 common shares at a par value of $0.000001 per share. These shares have full voting rights. The Company undertook a 10-1 reverse stock split on April 28, 2022. The share capital has been retrospectively adjusted accordingly to reflect these reverse stock splits. At April 30, 2022 and January 31, 2022 there were 1,500,362 and 341,023 shares outstanding and issuable, respectively.  No dividends were paid in the three months ended April 30, 2022 or 2021. The Company’s articles of incorporation include a provision that the Company is not allowed to issue fractional shares.

The Company issued the following shares of common stock in the three months ended April 30, 2022:

The Company issued 905,110 shares upon conversion of 7,250 Series C preferred shares. Along with associated debt, the Company issued 254,141 shares and warrants to purchase 265,000 shares all with a relative fair value of $1,064,965.

Options and Warrants:

The Company has 75,000 options outstanding as of both April 30, 2022 and or January 31, 2022.

The Company recorded option and warrant expense of $0 and $0 for the three months ended April 30, 2022 and 2021, respectively.

For the quarter ended April 30, 2022 the Company issued warrants to purchase 265,000 common shares along with debt to various lenders as well as warrants to acquire 45,000 common shares as penalty interest. The table below provides the significant estimates used that resulted in the Company determining the relative fair value of the 265,000 warrants at $1,064,965, which has been recorded as a debt discount and the 45,000 warrants at $315,150 which has been recorded as interest both with corresponding adjustments to paid-in capital.

Expected volatility	1,686-2,186%
Exercise price	$5.50 -$15.00
Stock price	$5.40-$9.49
Expected life	3-5 years
Risk-free interest rate	1.76%-2.94%
Dividend yield	0%

The Company had the following fully vested warrants outstanding at April 30,2022:

Issued To	# Warrants	Dated	Expire	Strike Price	Expired	Exercised
Lender	95,000	08/28/2020	08/28/2023	$4.00 per share	N	N
Broker	250	10/11/2020	10/11/2025	$45.00 per share	N	N
Broker	300	11/25/2020	11/25/2025	$30.00 per share	N	N
Triton	30,000	07/27/2021	07/27/2024	$21.10 per share	N	N
Consultant	25,000	08/26/2021	08/26/2024	$15.00 per share	N	N
Lender	90,000	11/12/2021	11/12/2026	$15.00 per share	N	N
Lender	90,000*	11/12/2021	11/12/2026	$15.00 per share	N	N
Lender	30,000	1/27/2022	1/27/2025	$15.00 per share	N	N
Lender	120,000	2/14/2022	2/14/2027	$15.00 per share	N	N
Lender	35,000	2/25/2022	2/25/2027	$15.00 per share	N	N
Lender	15,000	2/25/2022	2/25/2027	$15.00 per share	N	N
Lender	20,000	3/9/2022	3/9/2027	$15.00 per share	N	N
Lender	20,000	3/9/2022	3/9/2027	$15.00 per share	N	N
Lender	11,000	4/22/2022	4/22/2027	$15.00 per share	N	N
Lender	44,000	4/22/2022	4/22/2027	$15.00 per share	N	N
Lender	15,000	2/26/2022	2/26/2025	$5.40 per share	N	N
Lender	15,000	3/28/2022	3/28/2025	$7.50 per share	N	N
Lender	15,000	4/27/2022	4/27/2025	$6.99 per share	N	N

__________

* These warrants are extinguished if Company repays note by 11/12/2022 maturity.

The Company had the following fully vested options outstanding at April 30, 2022:

Issued To	# Options	Dated	Expire	Strike Price	Expired	Exercised
Consultant	25,000	8/26/2021	8/26/2024	$15.00 per share	N	N
T. Armes	50,000	10/14/2021	10/14/2023	$15.00 per share	N	N

The following table summarizes the activity of options and warrants issued and outstanding as of and for the three months ended

April 30, 2022:

	Options	Weighted Average Exercise Price		Warrants	Weighted Average Exercise Price
Outstanding at January 31, 2022	75,000	$	15.00	360,550	$	12.64
Granted	—		—	310,000		15.00
Exercised	—		—	—		—
Forfeited and canceled	—		—	—		—
Outstanding at April 30, 2022	75,000	$	15.00	670,550	$	13.17

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RELATED PARTY TRANSACTIONS

3 Months Ended

Apr. 30, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 11 – RELATED PARTY TRANSACTIONS

As of April 30, 2022 and January 31, 2021, the Company had $46,273 and $46,173, respectively of related party accrued expenses related to accrued compensation for employees and consultants.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Apr. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 12 – COMMITMENTS AND CONTINGENCIES

On August 30, 2016, the Company entered into a 60-month lease agreement for its 3,554 sf warehouse facility starting in December 2016 with a minimum base rent of $2,132 and estimated monthly CAM charges of $1,017 per month. This lease is with a shareholder.

On July 1, 2018, the Company entered into a 60-month lease agreement with its minority shareholder for its 8,800 sf warehouse facility with a minimum base rent of $6,400 per month.

In October 2019 the Company entered into an operating lease for a vehicle with an annual cost of $9,067 and a three year term. The company paid initial fees of $17,744 and will pay fees on lease termination of $395. On a straight-line basis these costs amount to $1,259 per month.

Maturity of Lease Liabilities	Operating Leases
April 30 2023	$	113,100
April 30, 2024		42,803
April 30, 2025		30,003
April 30, 2026		30,003
April 30, 2027		17,503
Total lease payments		233,412
Less: Interest		(22,217	)
Present value of lease liabilities	$	211,195

The Company had total operating lease and rent expense of $30,479 and $30,479 for the three months ended April 30, 2022 and 2021 respectively.

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EARNINGS (LOSS) PER SHARE

3 Months Ended

Apr. 30, 2022

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

NOTE 13 – EARNINGS (LOSS) PER SHARE

The net income (loss) per common share amounts were determined as follows:

	For the Three Months Ended
	April 30,
	2022			2021
Numerator:
Net income (loss) available to common shareholders	$	(2,594,158	)	$	(567,557)
Denominator:
Weighted average shares – basic		1,342,433			194,010
Net income (loss) per share – basic	$	(1.93	)	$	(2.93	)
Effect of common stock equivalents
Add: interest expense on convertible debt		112,742			34,652
Add: amortization of debt discount		725,280			128,528
Less: gain on settlement of debt on convertible notes		—			—
Add (Less): loss (gain) on change of derivative liabilities		337,737			(4,187	)
Net income (loss) adjusted for common stock equivalents		(1,418,399	)		(408,564	)
Dilutive effect of common stock equivalents:
Convertible notes and accrued interest		—			—
Convertible Class C Preferred shares		—			—
Warrants and options		—			—
Denominator:
Weighted average shares – diluted		1,342,433			194,010
Net income (loss) per share – diluted	$	(1.93	)	$	(2.93	)

The anti-dilutive shares of common stock equivalents for the three months ended April 30, 2022 and April 30, 2021 were as follows:

	For the Three Months Ended
	April 30,
	2022		2021
Convertible notes and accrued interest		701,281		35,437
Convertible Class C Preferred shares		—		677,071
Options		75,000		—
Warrants		670,550		95,550
Total		1,446,831		808,058

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SUBSEQUENT EVENTS

3 Months Ended

Apr. 30, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 14 – SUBSEQUENT EVENTS

Subsequent to April 30, 2022 through to June 10, 2022:

• The Company issued 2,587 rounding shares due to 10:1 reverse split on April 28, 2022

• On May 19, 2022 the Company entered into a new convertible note for $400,000 with a one year maturity, interest rate of 12%, with a warrant to purchase 33,333 common shares with a five year maturity and an exercise price of $15.00, and 41,500 common shares. The Company received $325,000 in cash proceeds, recorded an original issue discount of $20,000 and transaction fees of $12,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 125%.

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NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Apr. 30, 2022

Accounting Policies [Abstract]

Business:

Business:

Nature of Business – Auto Parts 4Less Group, Inc., (the “Company”), formerly The 4Less Group, Inc., was incorporated under the laws of the State of Nevada on December 5, 2007. The Company, under the name MedCareers Group, Inc. (“MCGI”) formally operated a website for nurses, nursing schools and nurses’ organizations designed for better communication between nurses and the nursing profession.

On November 29, 2018, the Company entered into a transaction (the “Share Exchange”), pursuant to which the Company acquired 100% of the issued and outstanding equity securities of The 4LESS Corp. (“4LESS”), in exchange for the issuance of (i) nineteen thousand (19,000) shares of Series B Preferred Stock, (ii) six thousand seven hundred fifty (6,750) shares of Series C Preferred Stock, and (iii) 870 shares of Series D Preferred Stock. The Series C Preferred Shares have a right to convert into common stock of the Company by multiplying the number of issued and outstanding shares of common stock by 2.63 on the conversion date. The Share Exchange closed on November 29, 2018.  As a result of the Share Exchange, the former shareholders of 4LESS became the controlling shareholders of the Company. The Share Exchange was accounted for as a reverse takeover/recapitalization effected by a share exchange, wherein 4LESS is considered the acquirer for accounting and financial reporting purposes. The capital, share price, and earnings per share amount in these consolidated financial statements for the period prior to the reverse merger were restated to reflect the recapitalization in accordance with the shares issued as a result of the reverse merger except otherwise noted.

4LESS was formed as Vegas Suspension & Offroad, LLC on October 24, 2013 as a Nevada limited liability company and converted to a Nevada corporation with the same name on May 8, 2017. On April 2, 2018, the Company changed its name to The 4LESS Corp. The Corporation had S Corporation status. The Corporation operates as an e-commerce auto and truck parts sales company. As a result of the share exchange, The 4Less Group, Inc. is now a holding company operating through 4LESS and offers products including exhaust systems, suspension systems, wheels, tires, stereo systems, truck bed covers, and shocks. On December 30, 2019 4LESS changed its name to Auto Parts 4Less, Inc..On April 28, 2022 the Company changed its name from The 4Less Group, Inc. to Auto Parts 4Less Group, Inc.

Significant Accounting Policies:

Significant Accounting Policies:

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these condensed financial statements.

Basis of Presentation:

Basis of Presentation:

The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim unaudited consolidated financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements. Certain information and footnote disclosure normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the SEC. The unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended January 31, 2022 and notes thereto contained in the Company’s Annual Report on Form 10-K filed on May 9, 2022.

Principles of Consolidation:

Principles of Consolidation:

The condensed financial statements include the accounts of Auto Parts 4Less Group, Inc. as well as The Auto Parts 4Less, Inc., and JBJ Wholesale LLC. All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated.

Use of Estimates:

Use of Estimates:

In order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determine whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions used to value derivative liabilities.

Reclassifications

Reclassifications

Certain amounts in the Company’s condensed consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods.

Cash and Cash Equivalents:

Cash and Cash Equivalents:

The Company considers all highly liquid instruments with a maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The carrying amount of cash and cash equivalents approximates fair market value.

Inventory Valuation

Inventory Valuation

Inventories are stated at the lower of cost or net realizable value. Inventories are valued on a first-in, first-out (FIFO) basis. Inventory is comprised of finished goods.

Concentrations

Concentrations

Cost of Goods Sold

For the three months ended April 30, 2022 the Company purchased approximately 52% of its inventory and items available for sale from third parties from three vendors. As of April 30, 2022, the net amount due to the vendors included in accounts payable was $433,897. For the three months ended April 30, 2021, the Company purchased from three vendors approximately 54% of its inventory and items available for sale from third parties. As of April 30, 2021, the net amount due to these vendors included in accounts payable was $462,991. The Company believes there are numerous other suppliers that could be substituted should a supplier become unavailable or non-competitive.

Leases

Leases

We elected the hindsight practical expedient to determine the lease term for existing leases. Our election of the hindsight practical expedient resulted in the shortening of lease terms for certain existing leases and the useful lives of corresponding leasehold improvements. In our application of hindsight, we evaluated the performance of the leased stores and the associated markets in relation to our overall real estate strategies, which resulted in the determination that most renewal options would not be reasonably certain in determining the expected lease term.

Income Taxes

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. ASC 740, Accounting for Income Taxes requires companies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%. A corresponding offset has been made to the valuation allowance, and any potential other taxes arising due to the Tax Act will result in reductions to the Company’s net operating loss carryforward and valuation allowance. The Company will continue to analyze the Tax Act to assess its full effects on the Company’s financial results, including disclosures, for the Company’s fiscal year ending January 31, 2023, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements.

Fair Value of Financial Instruments:

Fair Value of Financial Instruments:

The Company’s financial instruments consist of cash, accounts payable, advances and notes payable. The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to the short-term nature of these financial instruments. Derivatives are recorded at fair value at each period end. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date.

The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 Inputs – Quoted prices for identical instruments in active markets.

Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs – Instruments with primarily unobservable value drivers.

The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of April 30, 2022:

	April 30, 2022		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Derivative Liabilities – embedded redemption feature	$	1,991,793	$	—	$	—	$	1,991,793
Totals	$	1,991,793	$	—	$	—	$	1,991,793

Related Party Transactions:

Related Party Transactions:

The Company has a verbal policy that includes procedures intended to ensure compliance with the related party provisions in common practice for public companies. For purposes of the policy, a “related party transaction” is a transaction in which the Company or any one of its subsidiaries participates and in which a related party has a direct or indirect material interest, other than ordinary course, arms-length transactions of less than 1% of the revenue of the counterparty. Any transaction exceeding the 1% threshold, and any transaction involving consulting, financial advisory, legal or accounting services that could impair a director’s independence, must be approved by the CEO. Any related party transaction in which an executive officer or a Director has a personal interest, or which could present a possible conflict under the Guide to Ethical Conduct, must be approved by Board of Directors, following appropriate disclosure of all material aspects of the transaction.

Derivative Liability

Derivative Liability

The derivative liabilities are valued as a level 3 input under the fair value hierarchy for valuing financial instruments. The derivatives arise from convertible debt where the debt and accrued interest is convertible into common stock at variable conversion prices and reclassification of equity instrument to liability due to insufficient shares for issuance. As the price of the common stock varies, it triggers a gain or loss based upon the discount to market assuming the debt was converted at the balance sheet date. When evaluating the effect of the issuance of new equity-linked or equity-settled instruments on previously issued instruments, the Company uses first-in, first-out method (“FIFO”) where authorized and unused shares would first be used to satisfy the earliest issued equity-linked instruments.

The fair value of the derivative liability is determined using a lattice model, is re-measured on the Company’s reporting dates, and is affected by changes in inputs to that model including our stock price, historical stock price volatility, the expected term, and both high risk and the risk-free interest rate. The most sensitive inputs to the model are for expected time for the holder to convert or be repaid and the estimated historical volatility of the Company’s common stock.  However, because the historical volatility of the Company’s common stock is so high (see Note 9), the sensitivity required to change the liability by 1% as of April 30, 2022 is greater than 25% change in historical volatility as of that date.  The other inputs, such as risk free rate, high yield cash rate and stock price all have a sensitivity for a 1% change in the input variable results in a significantly less than 1% change in the calculated derivative liability.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue when control is transferred over the promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. The following five steps are applied to achieve that core principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the company satisfies a performance obligation

Because the Company’s sales agreements generally have an expected duration of one year or less, the Company has elected the practical expedient in ASC 606-10-50-14(a) to not disclose information about its remaining performance obligations.

Disaggregation of Revenue: Channel Revenue

The following table shows revenue split between proprietary and third-party website revenue for the three months ended April 30, 2022 and 2021:

					Change
	2022		2021		$			%
Proprietary website revenue	$	1,236,243		2,123,101	$	(886,858	)	(42%	)
Third-party website revenue		493,687		1,605,683		(1,111,996	)	(69%	)
Total Revenue	$	1,729,930	$	3,728,784	$	(1,998,854	)	(54%	)

The Company’s performance obligations are satisfied at the point in time when products are received by the customer, which is when the customer has title and obtained the significant risks and rewards of ownership. Therefore, the Company’s contracts have a single performance obligation (shipment of product). The Company primarily receives fixed consideration for sales of product. Shipping and handling amounts paid by customers are primarily for online orders, and are included in revenue. Sales tax and other similar taxes are excluded from revenue.

Stock-Based Compensation:

Stock-Based Compensation:

The Company accounts for stock options at fair value. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option.

Earnings (Loss) Per Common Share:

Earnings (Loss) Per Common Share:

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from the exercise of stock options and/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.

Basic loss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share is computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to include all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments. Diluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share.

Recently Issued Accounting Standards:

Recently Issued Accounting Standards:

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) which simplifies goodwill impairment testing by requiring that such periodic testing be performed by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The policy is effective for fiscal years, including interim periods, beginning after December 15, 2019. We adopted on February 1, 2020 and the adoption had no impact.

Fair Value Measurement: In 2018, the FASB issued amended guidance to remove, modify and add disclosure requirements for fair value measurements. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosure requirements. Transition is on a prospective basis for the new and modified disclosures, and on a retrospective basis for disclosures that have been eliminated. The adoption of this guidance on February 1, 2020 did not have a material impact on our consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvement to Nonemployee Share-Based Payment Accounting, which is part of the FASB’s simplification initiative to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This update provides consistency in the accounting for share-based payments to nonemployees with that of employees. The updated guidance had no impact on the Company’s consolidated financial position, results of operations or cash flows.

In December 2019, the Financial Accounting Standards Board (FASB) issued amended guidance on the accounting and reporting of income taxes. The guidance is intended to simplify the accounting for income taxes by removing exceptions related to certain intra-period tax allocations and deferred tax liabilities; clarifying guidance primarily related to evaluating the step-up tax basis for goodwill in a business combination; and reflecting enacted changes in tax laws or rates in the annual effective tax rate. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.

In January 2020, the FASB issued new guidance intended to clarify certain interactions between accounting standards related to equity securities, equity method investments and certain derivatives. The guidance addresses accounting for the transition into and out of the equity method of accounting and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.

In August 2020, the FASB issued amended guidance on the accounting for convertible instruments and contracts in an entity’s own equity. The guidance removes the separation model for convertible debt instruments and preferred stock, amends requirements for conversion options to be classified in equity as well as amends diluted earnings per share (EPS) calculations for certain convertible debt instruments. The amended guidance is effective for interim and annual periods in 2022. The application of the amendments in the new guidance are to be applied either on a modified retrospective or a retrospective basis. We are currently assessing the effect that the adoption of this standard will have on the Company’s consolidated financial statements upon adoption

In addition to the above, the Company has reviewed all other recently issued, but not yet effective, accounting pronouncements, and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations.

Recently Issued Accounting Standards Not Yet Adopted

In March 2020, the FASB issued optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for accounting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The amended guidance is effective for interim and annual periods in 2023 and is to be applied prospectively. Early adoption is permitted on a retrospective basis to the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations.

In November 2021, the FASB issued new guidance to increase the transparency of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The guidance requires annual disclosures of such transactions to include the nature of the transactions and the significant terms and conditions, the accounting treatment and the impact to the company’s financial statements. The guidance is effective for annual periods beginning in 2022 and is to be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

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

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NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Apr. 30, 2022

Accounting Policies [Abstract]

The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of April 30, 2022:

The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of April 30, 2022:

	April 30, 2022		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Derivative Liabilities – embedded redemption feature	$	1,991,793	$	—	$	—	$	1,991,793
Totals	$	1,991,793	$	—	$	—	$	1,991,793

The following table shows revenue split between proprietary and third-party website revenue for the three months ended April 30, 2022 and 2021:

The following table shows revenue split between proprietary and third-party website revenue for the three months ended April 30, 2022 and 2021:

					Change
	2022		2021		$			%
Proprietary website revenue	$	1,236,243		2,123,101	$	(886,858	)	(42%	)
Third-party website revenue		493,687		1,605,683		(1,111,996	)	(69%	)
Total Revenue	$	1,729,930	$	3,728,784	$	(1,998,854	)	(54%	)

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PROPERTY (Tables)

3 Months Ended

Apr. 30, 2022

Property, Plant and Equipment [Abstract]

Property consists of the following at April 30, 2022 and January 31, 2022:

The Company capitalizes all property purchases over $1,000 and depreciates the assets on a straight-line basis over their useful lives of 3 years for computers and 7 years for all other assets. Property consists of the following at April 30, 2022 and January 31, 2022:

	April 30, 2022			January 31, 2022
Office furniture, fixtures and equipment	$	95,183		$	94,041
Shop equipment		43,004			43,004
Vehicles		206,760			206,760
Sub-total		344,947			343,805
Less: Accumulated depreciation		(135,406	)		(122,469	)
Total Property	$	209,541		$	221,336

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LEASES (Tables)

3 Months Ended

Apr. 30, 2022

Leases

Below is a summary of our lease assets and liabilities at April 30, 2022 and January 31, 2022.

Below is a summary of our lease assets and liabilities at April 30, 2022 and January 31, 2022.

Leases	Classification	April 30, 2022		January 31, 2022
Assets
Operating	Operating Lease Assets	$	213,714	$	242,583
Liabilities
Current
Operating	Current Operating Lease Liability	$	96,772	$	100,001
Noncurrent
Operating	Noncurrent Operating Lease Liabilities		114,423		138,551
Total lease liabilities		$	211,195	$	238,552

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SHORT-TERM AND LONG-TERM DEBT (Tables)

3 Months Ended

Apr. 30, 2022

Debt Disclosure [Abstract]

The components of the Company’s debt as of April 30, 2022 and January 31, 2022 were as follows:

The components of the Company’s debt as of April 30, 2022 and January 31, 2022 were as follows:

	April 30, 2022			January 31, 2022
Loan dated October 8, 2019, and revised February 29, 2020 and November 10, 2020 repayable June 30, 2022 with an additional interest payment of $20,000(3)	$	97,340	*	$	97,340
Forklift Note Payable, original note of $20,433 Sept 26, 2018, 6.23% interest, 60 monthly payments of $394.54 ending August 2023(1)		7,120	#		8,183
Vehicle loan original loan of $93,239 February 16, 2021, 2.90 % interest. 72 monthly payments of $1,414 beginning on April 2, 2021 and ending on March 2, 2027. Secured by vehicle having net book value of $94,316.		77,677	#		81,346
Vehicle loan original loan of $59,711 March 20,2021, 7.89% interest. 72 monthly payments of $1,048 beginning on May 4, 2021 and ending on April 4, 2027. Secured by vehicle having net book value of $76,164.		51,993	#		54,108
Working Capital Note Payable - $700,000, dated October 29, 2021, repayment of $17,904 per week until Oct 29, 2022, interest rate of approximately 31%(2,4,7)		528,407	*		635,831
Working Capital Note Payable - $650,000, dated October 25, 2021, repayment of $15,875 per week until October 25, 2022, interest rate of approximately 26%(2,4,8)		540,558	*		596,047
Demand loan - $5,000 dated February 1, 2020, 15% interest, 5% fee on outstanding balance		5,000	*		5,000
Demand loan - $2,500, dated March 8, 2019, 25% interest, 5% fee on outstanding balance		2,500	*		2,500
Demand loan - $65,500 dated February 27, 2019, 25% interest, 5% fee on outstanding balance, Secured by the general assets of the Company		12,415	*		12,415
Promissory note - $60,000 dated September 18, 2020 maturing April 30, 2022(10), including $5,000 original issue discount, 15% compounded interest payable monthly		60,000	*		60,000
Promissory note - $425,000 dated August 28, 2020, including $50,000 original issue discount, 15% compounded interest payable monthly. This note matures when the Company receives proceeds through a financing event of $825,000 plus accrued interest on the note.(5)		425,000	*		425,000
Promissory note - $1,200,000 dated August 28, 2020, maturing August 28, 2022, 12%  interest payable monthly with the first six months interest deferred until the 6th month and added to principal.(6)		1,200,000	*		1,200,000
Promissory note - $420,000 dated December 27, 2021, including $20,000 original issue discount, maturing January 27, 2022, non-interest bearing(9)†		420,000	*		420,000
Total	$	3,428,010		$	3,597,770

	April 30, 2022		January 31, 2022
Short-Term Debt	$	3,291,220	$	3,454,133
Current Portion of Long-Term Debt		27,828		27,737
Long-Term Debt		108,962		115,900
Total	$	3,428,010	$	3,597,770

__________

†	In default
*	Short-term loans
#	Long-term loans of  $7,120 including current portion of $4,325
	$51,992 including current portion $8,633
	$81,346 including current portion $14,780

(1)	Secured by equipment having a net book value of $8,733
(2)	The amounts due under the note are personally guaranteed by an officer or a director of the Company.
(3)	On November 10, 2020 the Company amended the agreement extending the maturity to June 30, 2022 from April 8, 2021 and changing monthly payments to $0 from $5,705 and interest rate from 13% to a $20,000 lump sum payable at maturity.
(4)	The Company has pledged a security interest on all accounts receivable and banks accounts of the Company.
(5)	Financing event would be a sale or issuance of assets, debt, shares or any means of raising capital. As the Company has entered into such a transaction the loan has reached maturity and is treated as current. An extension was granted on December 13, 2021 amending the maturity date to April 30, 2022. The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.
(6)	Secured by all assets of the Company. Loan payable in 2 instalments, $445,200 payable August 28, 2021 and $826,800 payable August 28, 2022. On December 13, 2021 the parties amended the maturity date for the first instalment to be April 30, 2022 with ethe second instalment date unchanged. The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.
(7)	This loan replaces $500,000 loan dated June 4, 2021, $422,009 proceeds were used to repay this loan, net cash received was $253,491 after payment of $26,500 in fees.
(8)	This loan replaces $500,000 loan dated June 4, 2021, $359,919 proceeds were used to repay this loan, net cash received was  $267,606 after payment of $22,475 in fees.
(9)	Penalty of 10% of principal amount and 30,000 3 year warrants with an exercise price of $15.00 on initial default and 2% of principal amount and 15,000 3 year warrants with an exercise price of $15.00 for every 30 day default period thereafter. Initial default has been recorded at January 31, 2022 with an interest charge of $42,000 and another $276,000 which was the fair value of the warrants (see Note 11). The Company has defaulted on the February26, 2022, March 28, 2022, April 27, 2022 and will issue an additional 15,000 warrants for each of those defaults. The company recorded $315,050 based on the fair value of the warrants and $25,200 for the 2% fee as interest expense.
(10)	The April 30, 2022 payment has not been made and the Company is working on another extension with the lender.

The following are the minimum amounts due on the notes as of April 30, 2022:

The following are the minimum amounts due on the notes as of April 30, 2022:

Year Ended	Amount
April 30, 2023	$	3,319,048
April 30, 2024		27,574
April 30, 2025		26,118
April 30, 2026		27,447
April 30, 2027		27,823
Total	$	3,428,010

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SHORT-TERM CONVERTIBLE DEBT (Tables)

3 Months Ended

Apr. 30, 2022

Debt Disclosure [Abstract]

Short Term Convertible Debt

The components of the Company’s debt as of April 30, 2022 and January 31, 2022 were as follows:

	Interest	Default Interest	Conversion	Outstanding Principal at
Maturity Date	Rate	Rate	Price	April 30, 2022			January 31, 2022
Nov 4, 2013*	12%	12%	$1,800,000	$	100,000		$	100,000
Jan 31, 2014*	12%	18%	$2,400,000		16,000			16,000
July 31, 2013*	12%	12%	$1,440,000		5,000			5,000
Jan 31, 2014*	12%	12%	$2,400,000		30,000			30,000
Nov 12, 2022	8%	12%	(1)		2,400,000			2,400,000
Jan. 13, 2023	12%	22%	(2)		182,400			228,000
Aug. 11, 2022	10%	10%	(3)		220,000			—
Aug 14, 2022	12%	20%	(4)		1,200,000			—
Aug. 25, 2022	12%	20%	(4)		150,000			—
Aug. 25, 2022	12%	20%	(4)		350,000			—
Oct.. 9, 2022	12%	20%	(4)		200,000			—
Oct.. 9, 2022	12%	20%	(4)		200,000			—
Oct. 22, 2022	12%	20%	(4)		440,000			—
Oct. 22, 2022	12%	20%	(4)		110,000			—
Sub-total					5,603,400			2,779,000
Debt Discount					(3,339,672	)		(2,131,034	)
				$	2,263,728		$	647,966

__________

*	In default.
(1)	lesser of $ 1.25 or 75 % of offering price if there is an uplisting to a national securities exchange.
(2)	75% of closing bid price on day preceding conversion date in event of default
(3)	convertible at 20% discount of the offering price on company’s uplist to NASDAQ
(4)	convertible upon default at conversion price lower of i) lowest price 20 days prior to Issuance ii) lowest price 20 days prior to conversion

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DERIVATIVE LIABILITIES (Tables)

3 Months Ended

Apr. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents changes in Level 3 liabilities measured at fair value for the three months ended April 30, 2022

The following table presents changes in Level 3 liabilities measured at fair value for the three months ended April 30, 2022. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long- dated volatilities) inputs.

	Level 3
	Derivatives
Balance, January 31, 2022	$	1,263,442
Changes Due to Issuance of New Convertible Notes		394,203
Settlement Due to Repayment of Debt		(3,589	)
Mark to Market Change in Derivatives		337,737
Balance, April 30, 2022	$	1,991,793

A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liabilities and embedded conversion feature that are categorized within Level 3 of the fair value hierarchy as of April 30, 2022 is as follows:

The fair value of the derivative liability is determined using the lattice model, is re-measured on the Company’s reporting dates, and is affected by changes in inputs to that model including our stock price, expected stock price volatility, the expected term, and the risk-free interest rate. A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liabilities and embedded conversion feature that are categorized within Level 3 of the fair value hierarchy as of April 30, 2022 is as follows:

	Embedded Derivative Liability As of April 30, 2022
Strike price	5.40 - 10.00
Contractual term (years)	0.28 - 0.79 years
Volatility (annual)	137.1% - 201.8
Underlying fair market value	10.00
Risk-free rate	7.38% -8.46
Dividend yield (per share)	0

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STOCKHOLDERS’ DEFICIT (Tables)

3 Months Ended

Apr. 30, 2022

Equity [Abstract]

Schedule Of Warrants Fair Value

For the quarter ended April 30, 2022 the Company issued warrants to purchase 265,000 common shares along with debt to various lenders as well as warrants to acquire 45,000 common shares as penalty interest. The table below provides the significant estimates used that resulted in the Company determining the relative fair value of the 265,000 warrants at $1,064,965, which has been recorded as a debt discount and the 45,000 warrants at $315,150 which has been recorded as interest both with corresponding adjustments to paid-in capital.

Expected volatility	1,686-2,186%
Exercise price	$5.50 -$15.00
Stock price	$5.40-$9.49
Expected life	3-5 years
Risk-free interest rate	1.76%-2.94%
Dividend yield	0%

The Company had the following fully vested warrants outstanding at April 30,2022:

The Company had the following fully vested warrants outstanding at April 30,2022:

Issued To	# Warrants	Dated	Expire	Strike Price	Expired	Exercised
Lender	95,000	08/28/2020	08/28/2023	$4.00 per share	N	N
Broker	250	10/11/2020	10/11/2025	$45.00 per share	N	N
Broker	300	11/25/2020	11/25/2025	$30.00 per share	N	N
Triton	30,000	07/27/2021	07/27/2024	$21.10 per share	N	N
Consultant	25,000	08/26/2021	08/26/2024	$15.00 per share	N	N
Lender	90,000	11/12/2021	11/12/2026	$15.00 per share	N	N
Lender	90,000*	11/12/2021	11/12/2026	$15.00 per share	N	N
Lender	30,000	1/27/2022	1/27/2025	$15.00 per share	N	N
Lender	120,000	2/14/2022	2/14/2027	$15.00 per share	N	N
Lender	35,000	2/25/2022	2/25/2027	$15.00 per share	N	N
Lender	15,000	2/25/2022	2/25/2027	$15.00 per share	N	N
Lender	20,000	3/9/2022	3/9/2027	$15.00 per share	N	N
Lender	20,000	3/9/2022	3/9/2027	$15.00 per share	N	N
Lender	11,000	4/22/2022	4/22/2027	$15.00 per share	N	N
Lender	44,000	4/22/2022	4/22/2027	$15.00 per share	N	N
Lender	15,000	2/26/2022	2/26/2025	$5.40 per share	N	N
Lender	15,000	3/28/2022	3/28/2025	$7.50 per share	N	N
Lender	15,000	4/27/2022	4/27/2025	$6.99 per share	N	N

__________

* These warrants are extinguished if Company repays note by 11/12/2022 maturity.

The Company had the following fully vested options outstanding at April 30, 2022:

The Company had the following fully vested options outstanding at April 30, 2022:

Issued To	# Options	Dated	Expire	Strike Price	Expired	Exercised
Consultant	25,000	8/26/2021	8/26/2024	$15.00 per share	N	N
T. Armes	50,000	10/14/2021	10/14/2023	$15.00 per share	N	N

Schedule of warrants outstanding

The following table summarizes the activity of options and warrants issued and outstanding as of and for the three months ended

April 30, 2022:

	Options	Weighted Average Exercise Price		Warrants	Weighted Average Exercise Price
Outstanding at January 31, 2022	75,000	$	15.00	360,550	$	12.64
Granted	—		—	310,000		15.00
Exercised	—		—	—		—
Forfeited and canceled	—		—	—		—
Outstanding at April 30, 2022	75,000	$	15.00	670,550	$	13.17

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Apr. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of minimum lease obligations

Maturity of Lease Liabilities	Operating Leases
April 30 2023	$	113,100
April 30, 2024		42,803
April 30, 2025		30,003
April 30, 2026		30,003
April 30, 2027		17,503
Total lease payments		233,412
Less: Interest		(22,217	)
Present value of lease liabilities	$	211,195

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EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Apr. 30, 2022

Earnings Per Share [Abstract]

The net income (loss) per common share amounts were determined as follows:

The net income (loss) per common share amounts were determined as follows:

	For the Three Months Ended
	April 30,
	2022			2021
Numerator:
Net income (loss) available to common shareholders	$	(2,594,158	)	$	(567,557)
Denominator:
Weighted average shares – basic		1,342,433			194,010
Net income (loss) per share – basic	$	(1.93	)	$	(2.93	)
Effect of common stock equivalents
Add: interest expense on convertible debt		112,742			34,652
Add: amortization of debt discount		725,280			128,528
Less: gain on settlement of debt on convertible notes		—			—
Add (Less): loss (gain) on change of derivative liabilities		337,737			(4,187	)
Net income (loss) adjusted for common stock equivalents		(1,418,399	)		(408,564	)
Dilutive effect of common stock equivalents:
Convertible notes and accrued interest		—			—
Convertible Class C Preferred shares		—			—
Warrants and options		—			—
Denominator:
Weighted average shares – diluted		1,342,433			194,010
Net income (loss) per share – diluted	$	(1.93	)	$	(2.93	)

The anti-dilutive shares of common stock equivalents for the three months ended April 30, 2022 and April 30, 2021 were as follows:

The anti-dilutive shares of common stock equivalents for the three months ended April 30, 2022 and April 30, 2021 were as follows:

	For the Three Months Ended
	April 30,
	2022		2021
Convertible notes and accrued interest		701,281		35,437
Convertible Class C Preferred shares		—		677,071
Options		75,000		—
Warrants		670,550		95,550
Total		1,446,831		808,058

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The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of April 30, 2022: (Details) - USD ($)	Apr. 30, 2022	Jan. 31, 2022
Liabilities:
Derivative Liabilities – embedded redemption feature	$ 1,991,793	$ 1,263,442
Totals	1,991,793	$ 1,263,442
Fair Value, Inputs, Level 1 [Member]
Liabilities:
Derivative Liabilities – embedded redemption feature
Totals
Fair Value, Inputs, Level 2 [Member]
Liabilities:
Derivative Liabilities – embedded redemption feature
Totals
Fair Value, Inputs, Level 3 [Member]
Liabilities:
Derivative Liabilities – embedded redemption feature	1,991,793
Totals	$ 1,991,793

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The following table shows revenue split between proprietary and third-party website revenue for the three months ended April 30, 2022 and 2021: (Details) - USD ($)	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Product Information [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 1,729,930	$ 3,728,784
Contract with Customer Change in Revenue	$ (1,998,854)
Contract with Customer Percentage Change in Revenue	54.00%
Proprietary Website Revenue [Member]
Product Information [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 1,236,243	2,123,101
Contract with Customer Change in Revenue	$ (886,858)
Contract with Customer Percentage Change in Revenue	42.00%
Third Party Website Revenue [Member]
Product Information [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 493,687	$ 1,605,683
Contract with Customer Change in Revenue	$ (1,111,996)
Contract with Customer Percentage Change in Revenue	69.00%

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NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 29, 2018	Apr. 30, 2022	Apr. 30, 2021
Accounting Policies [Abstract]
Date of incorporation		Dec. 05, 2007
Business acquisition transaction of equity securities, description	the Company entered into a transaction (the “Share Exchange”), pursuant to which the Company acquired 100% of the issued and outstanding equity securities of The 4LESS Corp. (“4LESS”), in exchange for the issuance of (i) nineteen thousand (19,000) shares of Series B Preferred Stock, (ii) six thousand seven hundred fifty (6,750) shares of Series C Preferred Stock, and (iii) 870 shares of Series D Preferred Stock. The Series C Preferred Shares have a right to convert into common stock of the Company by multiplying the number of issued and outstanding shares of common stock by 2.63 on the conversion date
Percentage of inventory		52.00%	54.00%
Accounts payable		$ 433,897	$ 462,991

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GOING CONCERN AND FINANCIAL POSITION (Details Narrative) - USD ($)	Apr. 30, 2022	Mar. 31, 2022	Jan. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 31,045,891		$ 28,451,733
Working capital deficit	9,530,292
Cash and cash equivalents	461,060
Short-term debt in default	$ 151,000	$ 151,000

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Property consists of the following at April 30, 2022 and January 31, 2022: (Details) - USD ($)	Apr. 30, 2022	Apr. 22, 2022	Jan. 31, 2022
Property, Plant and Equipment [Line Items]
Sub-total		$ 344,947	$ 343,805
Less: Accumulated depreciation	$ (135,406)	(135,406)	(122,469)
Total Property	209,541	$ 209,541	221,336
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Sub-total	95,183		94,041
Shopequipment [Member]
Property, Plant and Equipment [Line Items]
Sub-total	43,004		43,004
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Sub-total	$ 206,760		$ 206,760

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PROPERTY (Details Narrative) - USD ($)	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Property, Plant and Equipment [Abstract]
Addition to fixed assets	$ 1,142	$ 186,327
Cash		35,000
Financed through vehicle loans		151,327
Depreciation expense	$ 12,938	$ 10,735

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Below is a summary of our lease assets and liabilities at April 30, 2022 and January 31, 2022. (Details) - USD ($)	Apr. 30, 2022	Jan. 31, 2022
Leases
Operating	$ 213,714	$ 242,583
Operating	96,772	100,001
Operating	114,423	138,551
Total lease liabilities	$ 211,195	$ 238,552

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LEASES (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Leases
Leases, description			Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
Description of renewal lease term			one to 17 years or more
Incremental borrowing rate			8.00%
Operating lease cost and rent	$ 30,479	$ 30,479

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CUSTOMER DEPOSITS (Details Narrative) - USD ($)	Apr. 30, 2022	Jan. 31, 2022
Disclosure Customer Deposits Abstract
Customer deposits	$ 291,684	$ 530,900

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DEFERRED REVENUE (Details Narrative) - USD ($)	Apr. 30, 2022	Jan. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 332,823	$ 665,143

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The components of the Company’s debt as of April 30, 2022 and January 31, 2022 were as follows: (Details) - USD ($)					12 Months Ended
		Jun. 04, 2021	Jun. 04, 2021	Nov. 10, 2020	Jan. 31, 2022	Jan. 31, 2022	Aug. 28, 2022	Apr. 30, 2022		Aug. 28, 2021
Short-Term Debt [Line Items]
Debt					$ 3,597,770	$ 3,597,770		$ 3,428,010
Total					3,597,770	3,597,770		3,428,010
Short-Term Debt					3,454,133	3,454,133		3,291,220
Current Portion of Long-Term Debt					27,737	27,737		27,828
Long-term loan					115,900	115,900		108,962
Total					3,597,770	3,597,770		3,428,010
Long-Term Debt, Current Maturities					27,737	$ 27,737		27,828
Loan One [Member]
Short-Term Debt [Line Items]
Debt issuance date						Oct. 08, 2019
Debt revised date						Feb. 29, 2020
Debt repayment date						Nov. 10, 2020
Debt Instrument, Maturity Date						Jun. 30, 2022
Debt instrument periodic payment						$ 20,000
Debt					97,340	97,340		97,340	[1]
Debt Instrument, Interest Rate, Effective Percentage				13.00%
Total					97,340	$ 97,340		97,340	[1]
Lump sump amount payable				$ 20,000
Loan One [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Debt instrument periodic payment				$ 5,705
Forklift Note Payable [Member]
Short-Term Debt [Line Items]
Debt issuance date						Sep. 26, 2018
Debt instrument periodic payment						$ 39,454
Debt					8,183	8,183		7,120	[2]
Conversion of notes payable					$ 20,433	$ 20,433
Interest rate					6.23%	6.23%
Description of payment terms						60 monthly payments
Total					$ 8,183	$ 8,183		7,120	[2]
Vehicle Loan [Member]
Short-Term Debt [Line Items]
Debt issuance date						Feb. 16, 2021
Debt instrument periodic payment						$ 1,414
Debt					81,346	81,346		77,677	[2]
Conversion of notes payable					$ 93,239	$ 93,239
Interest rate					2.90%	2.90%
Description of payment terms						72 monthly payments
Secured equipment net bookvalue					$ 94,316	$ 94,316
Total					81,346	$ 81,346		77,677	[2]
Vehicle Loan One [Member]
Short-Term Debt [Line Items]
Debt issuance date						Mar. 20, 2021
Debt instrument periodic payment						$ 1,048
Debt					54,108	54,108		51,993	[2]
Conversion of notes payable					$ 59,711	$ 59,711
Interest rate					7.89%	7.89%
Description of payment terms						72 monthly payments
Secured equipment net bookvalue					$ 76,164	$ 76,164
Total					54,108	$ 54,108		51,993	[2]
Working Capital Note Payable [Member]
Short-Term Debt [Line Items]
Debt issuance date						Oct. 29, 2021
Debt Instrument, Maturity Date						Oct. 29, 2022
Debt instrument periodic payment						$ 17,904
Debt					635,831	635,831		528,407	[1]
Conversion of notes payable					$ 700,000	$ 700,000
Interest rate					31.00%	31.00%
Total					$ 635,831	$ 635,831		528,407	[1]
Working Capital Note Payable One [Member]
Short-Term Debt [Line Items]
Debt issuance date						Oct. 25, 2021
Debt Instrument, Maturity Date						Oct. 25, 2022
Debt instrument periodic payment						$ 15,875
Debt					596,047	596,047		540,558	[1]
Conversion of notes payable					$ 650,000	$ 650,000
Interest rate					26.00%	26.00%
Total					$ 596,047	$ 596,047		540,558	[1]
Demand Loan [Member]
Short-Term Debt [Line Items]
Debt issuance date						Feb. 01, 2020
Debt	[1]				5,000	$ 5,000		5,000
Conversion of notes payable					$ 5,000	$ 5,000
Interest rate					15.00%	15.00%
DemandLoanMember					5
Total	[1]				$ 5,000	$ 5,000		5,000
Demand Loan One [Member]
Short-Term Debt [Line Items]
Debt issuance date						Mar. 08, 2019
Debt	[1]				2,500	$ 2,500		2,500
Conversion of notes payable					$ 2,500	$ 2,500
Interest rate					25.00%	25.00%
DemandLoanMember					5
Total	[1]				$ 2,500	$ 2,500		2,500
Demand Loan Two [Member]
Short-Term Debt [Line Items]
Debt issuance date						Feb. 27, 2019
Debt	[1]				12,415	$ 12,415		12,415
Conversion of notes payable					$ 65,500	$ 65,500
Interest rate					25.00%	25.00%
DemandLoanMember					5
Total	[1]				$ 12,415	$ 12,415		12,415
Promissory Note [Member]
Short-Term Debt [Line Items]
Debt issuance date						Sep. 18, 2020
Debt Instrument, Maturity Date						Apr. 30, 2022
Debt					60,000	$ 60,000		60,000	[1]
Conversion of notes payable					60,000	60,000
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net					$ 5,000	$ 5,000
Debt Instrument, Interest Rate, Effective Percentage					15.00%	15.00%
Total					$ 60,000	$ 60,000		60,000	[1]
Promissory Note One [Member]
Short-Term Debt [Line Items]
Debt issuance date						Aug. 28, 2020
Debt					425,000	$ 425,000		425,000	[1]
Conversion of notes payable					425,000	425,000
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net					$ 50,000	$ 50,000
Debt Instrument, Interest Rate, Effective Percentage					15.00%	15.00%
Interest Payable					$ 825,000	$ 825,000
Total					425,000	$ 425,000		425,000	[1]
Promissory Note Two [Member]
Short-Term Debt [Line Items]
Debt issuance date						Aug. 28, 2020
Debt Instrument, Maturity Date						Aug. 28, 2022
Debt					1,200,000	$ 1,200,000		1,200,000	[1]
Conversion of notes payable					$ 1,200,000	$ 1,200,000	$ 826,800			$ 445,200
Description of payment terms						interest payable monthly with the first six months interest deferred until the 6th month and added to principal
Debt Instrument, Interest Rate, Effective Percentage					12.00%	12.00%
Total					$ 1,200,000	$ 1,200,000		1,200,000	[1]
Promissory Note Three [Member]
Short-Term Debt [Line Items]
Debt issuance date						Dec. 27, 2021
Debt Instrument, Maturity Date						Jan. 27, 2022
Debt	[3]				420,000	$ 420,000		420,000
Conversion of notes payable					420,000	420,000
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net					20,000	20,000
Total	[3]				420,000	$ 420,000		$ 420,000
Debt Instrument, Description						Penalty of 10% of principal amount and 30,000 3 year warrants with an exercise price of $15.00 on initial default and 2% of principal amount and 15,000 3 year warrants with an exercise price of $15.00 for every 30 day default period thereafter. Initial default has been recorded at January 31, 2022 with an interest charge of $42,000 and another $276,000 which was the fair value of the warrants (see Note 11). The Company has defaulted on the February26, 2022, March 28, 2022, April 27, 2022 and will issue an additional 15,000 warrants for each of those defaults. The company recorded $315,050 based on the fair value of the warrants and $25,200 for the 2% fee as interest expense.
Long Term Loans [Member]
Short-Term Debt [Line Items]
Long-term loan					4,325	$ 4,325
Long-Term Debt, Current Maturities					7,120	7,120
Long Term Loans One [Member]
Short-Term Debt [Line Items]
Long-term loan					8,633	8,633
Long-Term Debt, Current Maturities					51,992	51,992
Long Term Loans Two [Member]
Short-Term Debt [Line Items]
Long-term loan					14,780	14,780
Long-Term Debt, Current Maturities					$ 81,346	81,346
Loan Two [Member]
Short-Term Debt [Line Items]
Proceeds from Debt, Net of Issuance Costs		$ 422,009
Net cash received		253,491
Payment fees			$ 26,500
Loan Four [Member]
Short-Term Debt [Line Items]
Proceeds from Debt, Net of Issuance Costs						$ 359,919
Net cash received		$ 267,606
Payment fees			$ 22,475

[1] Short-term loans

[2] Long-term loans of  $7,120 including current portion of $4,325

[3] In default

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The following are the minimum amounts due on the notes as of April 30, 2022: (Details)	12 Months Ended
	Jan. 31, 2022 USD ($)
Short-Term Debt [Line Items]
Minimum amount due	$ 3,428,010
Loans Payable [Member]
Short-Term Debt [Line Items]
Short term debt terms	April 30, 2023
Minimum amount due	$ 3,319,048
Loans Payable 1 [Member]
Short-Term Debt [Line Items]
Short term debt terms	April 30, 2024
Minimum amount due	$ 27,574
Loans Payable 2 [Member]
Short-Term Debt [Line Items]
Short term debt terms	April 30, 2025
Minimum amount due	$ 26,118
Loans Payable 3 [Member]
Short-Term Debt [Line Items]
Short term debt terms	April 30, 2026
Minimum amount due	$ 27,447
Loans Payable 4 [Member]
Short-Term Debt [Line Items]
Short term debt terms	April 30, 2027
Minimum amount due	$ 27,823

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Short Term Convertible Debt (Details) - USD ($)		3 Months Ended
		Apr. 30, 2022	Jan. 31, 2022
Extinguishment of Debt [Line Items]
Sub-total		$ 5,603,400	$ 2,779,000
Debt Discount		(3,339,672)	(2,131,034)
Total		$ 2,263,728	647,966
Debt One [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date		Nov. 04, 2013
Interest rate		12.00%
Default interest rate		12.00%
Conversion price		$ 1,800,000
Sub-total		$ 100,000	100,000
Debt Two [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date		Jan. 31, 2014
Interest rate		12.00%
Default interest rate		18.00%
Conversion price		$ 2,400,000
Sub-total		$ 16,000	16,000
Debt Four [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date		Jul. 31, 2013
Interest rate		12.00%
Default interest rate		12.00%
Conversion price		$ 1,440,000
Sub-total		$ 5,000	5,000
Debt Five [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date		Jan. 31, 2014
Interest rate		12.00%
Default interest rate		12.00%
Conversion price		$ 2,400,000
Sub-total		$ 30,000	30,000
Debt Six [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[1]	Nov. 12, 2022
Interest rate	[1]	8.00%
Default interest rate	[1]	12.00%
Sub-total	[1]	$ 2,400,000	2,400,000
Debt 1 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[2]	Jan. 13, 2023
Interest rate	[2]	12.00%
Default interest rate	[2]	22.00%
Sub-total	[2]	$ 182,400	$ 228,000
Debt 2 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[3]	Aug. 11, 2022
Interest rate	[3]	10.00%
Default interest rate	[3]	10.00%
Sub-total	[3]	$ 220,000
Debt 3 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[4]	Aug. 14, 2022
Interest rate	[4]	12.00%
Default interest rate	[4]	20.00%
Sub-total	[4]	$ 1,200,000
Debt 4 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[4]	Aug. 25, 2022
Interest rate	[4]	12.00%
Default interest rate	[4]	20.00%
Sub-total	[4]	$ 150,000
Debt 5 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[4]	Aug. 25, 2022
Interest rate	[4]	12.00%
Default interest rate	[4]	20.00%
Sub-total	[4]	$ 350,000
Debt 6 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[4]	Oct. 09, 2022
Interest rate	[4]	12.00%
Default interest rate	[4]	20.00%
Sub-total	[4]	$ 200,000
Debt 7 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[4]	Oct. 09, 2022
Interest rate	[4]	12.00%
Default interest rate	[4]	20.00%
Sub-total	[4]	$ 200,000
Debt 8 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[4]	Oct. 22, 2022
Interest rate	[4]	12.00%
Default interest rate	[4]	20.00%
Sub-total	[4]	$ 440,000
Debt 9 [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Maturity Date	[4]	Oct. 22, 2022
Interest rate	[4]	12.00%
Default interest rate	[4]	20.00%
Sub-total	[4]	$ 110,000

[1] lesser of $ 1.25 or 75 % of offering price if there is an uplisting to a national securities exchange.

[2] 75% of closing bid price on day preceding conversion date in event of default

[3] convertible at 20% discount of the offering price on company’s uplist to NASDAQ

[4] convertible upon default at conversion price lower of i) lowest price 20 days prior to Issuance ii) lowest price 20 days prior to conversion

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SHORT-TERM CONVERTIBLE DEBT (Details Narrative) - USD ($)						2 Months Ended	3 Months Ended		15 Months Ended
	Apr. 22, 2022	Mar. 09, 2022	Feb. 25, 2022	Feb. 14, 2022	Feb. 11, 2022	Mar. 31, 2022	Apr. 30, 2022	Apr. 30, 2021	Apr. 30, 2022	Jan. 31, 2022
Short-Term Debt [Line Items]
Accrued interest payable							$ 320,433		$ 320,433	$ 231,412
Amortization of Debt Issuance Costs and Discounts							725,280		128,528
Penalty interest to Loan						$ 0		$ 28,000
Short-term debt in default						$ 151,000	$ 151,000		$ 151,000
Promissory Convertible Notes [Member]
Short-Term Debt [Line Items]
Convertible debt, description	the Company entered into a new convertible note for $440,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 44,000 common shares with a five year maturity and an exercise price of $15.00, and 42,240 common shares. If the loan is not in default the company may extend the term to April 22, 2023 with 10 days notice. If the Company does not extend the loan then 22,000 of the issued shares were returnable. The Company received $373,600 in cash proceeds, recorded an original issue discount of $40,000, a derivative discount of $36,796 for the conversion feature, recognized $161,815 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $26,400. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.	the Company entered into a new convertible note for $200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 20,000 common shares with a five year maturity and an exercise price of $15.00, and 19,200 common shares. If the loan is not in default the company may extend the term to March 9, 2023 with 10 days notice. If the Company does not extend the loan then 10,000 of the issued shares were returnable. The Company received $168,000 in cash proceeds, recorded an original issue discount of $20,000, a derivative discount of $22,533 for the conversion feature, recognized $85,815 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $12,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.	the Company entered into a new convertible note for $350,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 35,000 common shares with a five year maturity and an exercise price of $15.00, and 33,542 common shares. If the loan is not in default the company may extend the term to February 25, 2023 with 10 days notice. If the Company does not extend the loan then 17,500 of the issued shares were returnable. The Company received $294,000 in cash proceeds, recorded an original issue discount of $35,000, a derivative discount of $37,784 for the conversion feature, recognized $132,255 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $21,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.	the Company entered into a new convertible note for $1,200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 120,000 common shares with a five year maturity and an exercise price of $15.00, and 115,000 common shares. If the loan is not in default the company may extend the term to February 14, 2023 with 10 days notice. If the Company does not extend the loan then 60,000 of the issued shares were returnable. On April 7, 2022 the parties agreed to not have the shares returnable in exchange for a waiver on the Company’s breach of certain provisions. The Company received $979,000 in cash proceeds, recorded an original issue discount of $120,000, a derivative discount of $131,489 for the conversion feature, recognized $484,032 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $101,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.	the Company entered into an unsecured convertible note for $220,000 with a one year maturity, interest rate of 10%, the Company received $200,000 in cash proceeds, recorded, an original issue discount of $20,000, and a derivative discount of $117,676 related to a conversion feature. The discount is amortized over the term of the loan. The note is repayable October 11, 2022.
Promissory Convertible Notes 1 [Member]
Short-Term Debt [Line Items]
Convertible debt, description			the Company entered into a new convertible note for $150,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 15,000 common shares with a five year maturity and an exercise price of $15.00, and 14,400 common shares. If the loan is not in default the company may extend the term to February 25, 2023 with 10 days notice. If the Company does not extend the loan then 7,500 of the issued shares were returnable. The Company received $119,250 in cash proceeds, recorded an original issue discount of $15,000, a derivative discount of $16,193 for the conversion feature, recognized $52,613 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $15,750. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.
Promissory Convertible Notes 2 [Member]
Short-Term Debt [Line Items]
Convertible debt, description		the Company entered into a new convertible note for $200,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 20,000 common shares with a five year maturity and an exercise price of $15.00, and 9,200 common shares. If the loan is not in default the company may extend the term to March 9, 2023 with 10 days notice. If the Company does not extend the loan then 10,000 of the issued shares were returnable. The Company received $168,000 in cash proceeds, recorded an original issue discount of $20,000, a derivative discount of $22,533 for the conversion feature, recognized $85,728 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $12,000. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.
Promissory Convertible Notes 3 [Member]
Short-Term Debt [Line Items]
Convertible debt, description	the Company entered into a new convertible note for $110,000 with a six month maturity, interest rate of 12%, with a warrant to purchase 11,000 common shares with a five year maturity and an exercise price of $15.00, and 10,560 common shares. If the loan is not in default the company may extend the term to April 22, 2023 with 10 days notice. If the Company does not extend the loan then 5,500 of the issued shares were returnable. The Company received $93,400 in cash proceeds, recorded an original issue discount of $10,000, a derivative discount of $9,199 for the conversion feature, recognized $62,707 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $6,600. The discount is amortized over the term of the loan. The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 200%.

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The following table presents changes in Level 3 liabilities measured at fair value for the three months ended April 30, 2022 (Details)	3 Months Ended
	Apr. 30, 2022 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Balance at beginning	$ 1,263,442
Changes due to issuance of new convertible notes	394,203
Reduction of derivative due to extinguishment or repayment	(3,589)
Mark to market change in derivatives	337,737
Balance at ending	$ 1,991,793

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A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liabilities and embedded conversion feature that are categorized within Level 3 of the fair value hierarchy as of Apr (Details) - Fair Value, Inputs, Level 3 [Member]	Apr. 30, 2022 $ / shares
Measurement Input, Share Price [Member] | Minimum [Member]
Derivative [Line Items]
Derivative liability, measurement input	5.40
Measurement Input, Share Price [Member] | Maximum [Member]
Derivative [Line Items]
Derivative liability, measurement input	10.00
Measurement Input, Expected Term [Member] | Minimum [Member]
Derivative [Line Items]
Contractual term	3 months 11 days
Measurement Input, Expected Term [Member] | Maximum [Member]
Derivative [Line Items]
Contractual term	9 months 14 days
Measurement Input, Price Volatility [Member] | Minimum [Member]
Derivative [Line Items]
Derivative liability, measurement input	1.371
Measurement Input, Price Volatility [Member] | Maximum [Member]
Derivative [Line Items]
Derivative liability, measurement input	2.018
Underlying Fair Market Value [Member]
Derivative [Line Items]
Derivative liability, measurement input	10.00
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member]
Derivative [Line Items]
Derivative liability, measurement input	0.0738
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member]
Derivative [Line Items]
Derivative liability, measurement input	0.0846
Dividend Yield [Member]
Derivative [Line Items]
Derivative liability, measurement input	0

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DERIVATIVE LIABILITIES (Details Narrative) - USD ($)	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liabilities	$ 1,991,793		$ 1,263,442
Gain (loss) fair value of derivative liabilities	$ 337,737	$ 4,187

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Schedule Of Warrants Fair Value (Details)	3 Months Ended
	Apr. 30, 2022 $ / shares
Dividend yield	0.00%
Minimum [Member]
Expected volatility	1686.00%
Exercise price	$ 5.50
Stock price	$ 5.40
Expected life	3 years
Risk-free interest rate	1.76%
Maximum [Member]
Expected volatility	2186.00%
Exercise price	$ 15.00
Stock price	$ 9.49
Expected life	5 years
Risk-free interest rate	2.94%

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The Company had the following fully vested warrants outstanding at April 30,2022: (Details)	3 Months Ended
	Apr. 30, 2022 $ / shares shares
Lender One [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	95,000
Dated	Aug. 28, 2020
Expire	Aug. 28, 2023
Strike Price | $ / shares	$ 4.00
Broker One [Member]
Line of Credit Facility [Line Items]
Issued To	Broker
# Warrants | shares	250
Dated	Oct. 11, 2020
Expire	Oct. 11, 2025
Strike Price | $ / shares	$ 45.00
Broker Two [Member]
Line of Credit Facility [Line Items]
Issued To	Broker
# Warrants | shares	300
Dated	Nov. 25, 2020
Expire	Nov. 25, 2025
Strike Price | $ / shares	$ 30.00
Triton [Member]
Line of Credit Facility [Line Items]
Issued To	Triton
# Warrants | shares	30,000
Dated	Jul. 27, 2021
Expire	Jul. 27, 2024
Strike Price | $ / shares	$ 21.10
Consultant One [Member]
Line of Credit Facility [Line Items]
Issued To	Consultant
# Warrants | shares	25,000
Dated	Aug. 26, 2021
Expire	Aug. 26, 2024
Strike Price | $ / shares	$ 15.00
Lender Two [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	90,000
Dated	Nov. 12, 2021
Expire	Nov. 12, 2026
Strike Price | $ / shares	$ 15.00
Lender Three [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	90,000
Dated	Nov. 12, 2021
Expire	Nov. 12, 2026
Strike Price | $ / shares	$ 15.00
Lender Four [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	30,000
Dated	Jan. 27, 2022
Expire	Jan. 27, 2025
Strike Price | $ / shares	$ 15.00
Lender Five [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	120,000
Dated	Feb. 14, 2022
Expire	Feb. 14, 2027
Strike Price | $ / shares	$ 15.00
Lender Six [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	35,000
Dated	Feb. 25, 2022
Expire	Feb. 25, 2027
Strike Price | $ / shares	$ 15.00
Lender Seven [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	15,000
Dated	Feb. 25, 2022
Expire	Feb. 25, 2027
Strike Price | $ / shares	$ 15.00
Lender Eight [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	20,000
Dated	Mar. 09, 2022
Expire	Mar. 09, 2027
Strike Price | $ / shares	$ 15.00
Lender Nine [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	20,000
Dated	Mar. 09, 2022
Expire	Mar. 09, 2027
Strike Price | $ / shares	$ 15.00
Lender Ten [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	11,000
Dated	Apr. 22, 2022
Expire	Apr. 22, 2027
Strike Price | $ / shares	$ 15.00
Lender Eleven [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	44,000
Dated	Apr. 22, 2022
Expire	Apr. 22, 2027
Strike Price | $ / shares	$ 15.00
Lender Twelve [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	15,000
Dated	Feb. 26, 2022
Expire	Feb. 26, 2025
Strike Price | $ / shares	$ 5.40
Lender Thirteen [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	15,000
Dated	Mar. 28, 2022
Expire	Mar. 28, 2025
Strike Price | $ / shares	$ 7.50
Lender Fourteen [Member]
Line of Credit Facility [Line Items]
Issued To	Lender
# Warrants | shares	15,000
Dated	Apr. 27, 2022
Expire	Apr. 27, 2025
Strike Price | $ / shares	$ 6.99

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The Company had the following fully vested options outstanding at April 30, 2022: (Details)	3 Months Ended
	Apr. 30, 2022 $ / shares shares
Consultant Two [Member]
Line of Credit Facility [Line Items]
Issued to	Consultant
Options | shares	25,000
Dated	Aug. 26, 2021
Expire	Aug. 26, 2024
Strike price | $ / shares	$ 15.00
T Armes One [Member]
Line of Credit Facility [Line Items]
Issued to	T. Armes
Options | shares	50,000
Dated	Oct. 14, 2021
Expire	Oct. 14, 2023
Strike price | $ / shares	$ 15.00

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Schedule of warrants outstanding (Details) - Warrant [Member]	3 Months Ended
	Apr. 30, 2022 $ / shares shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Begenning balance (in shares) | shares	75,000
Beginning balance | $ / shares	$ 15.00
Begenning balance (in shares) | shares	360,550
Beginning balance | $ / shares	$ 12.64
Granted | shares	310,000
Granted | $ / shares	$ 15.00
Ending balance (in shares) | shares	75,000
Ending balance | $ / shares	$ 15.00
Ending balance (in shares) | shares	670,550
Ending balance | $ / shares	$ 13.17

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STOCKHOLDERS’ DEFICIT (Details Narrative) - USD ($)	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Apr. 28, 2022	Feb. 02, 2022	Jan. 31, 2022
Class of Stock [Line Items]
Common stock, shares authorized	75,000,000				75,000,000
Common stock, par value (in dollars per share)	$ 0.000001				$ 0.000001
Common Stock Shares Issued	1,500,362		2,587		341,023
Common stock, shares outstanding	1,500,362				341,023
Number of shares and warrent issued	254,141
Fair value of shares	$ 1,064,965
Number of shares outstanding	75,000				75,000
Option and warrant expense	$ 0	$ 0
Description of warrant	the Company issued warrants to purchase 265,000 common shares along with debt to various lenders as well as warrants to acquire 45,000 common shares as penalty interest. The table below provides the significant estimates used that resulted in the Company determining the relative fair value of the 265,000 warrants at $1,064,965, which has been recorded as a debt discount and the 45,000 warrants at $315,150 which has been recorded as interest both with corresponding adjustments to paid-in capital.
Common Stock [Member]
Class of Stock [Line Items]
Preferred Stock converted into common stock ( in shares)	905,110			905,110
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares outstanding	0				0
Preferred stock, shares issued	0				0
Preferred stock, shares authorized	330,000				330,000
Preferred stock, par value (in dollars per share)	$ 0.001				$ 0.001
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares outstanding	20,000				20,000
Preferred stock, shares issued	20,000				20,000
Preferred stock, shares authorized	20,000				20,000
Preferred stock, par value (in dollars per share)	$ 0.001			$ 0.001	$ 0.001
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares outstanding	0				7,250
Preferred stock, shares issued	0				7,250
Preferred stock, shares authorized	7,250				7,250
Preferred stock, par value (in dollars per share)	$ 0.001				$ 0.001
Preferred Stock converted into common stock ( in shares)	7,250			7,250
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares outstanding	870				870
Preferred stock, shares issued	870				870
Preferred stock, shares authorized	870				870
Preferred stock, par value (in dollars per share)	$ 0.001				$ 0.001
Preferred Stock, Voting Rights	These shares are non-voting
Redemption price	$ 1,000

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Apr. 30, 2022	Jan. 31, 2021
Related Party Transactions [Abstract]
Accrued expenses related party	$ 46,273	$ 46,173

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Schedule of minimum lease obligations (Details)	Apr. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
April 30 2023	$ 113,100
April 30, 2024	42,803
April 30, 2025	30,003
April 30, 2026	30,003
April 30, 2027	17,503
Total lease payments	233,412
Less: Interest	(22,217)
Present value of lease liabilities	$ 211,195

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COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)			1 Months Ended
	Jul. 01, 2018	Aug. 30, 2016	Oct. 31, 2019
Warehouse Lease Facility Two [Member]
Lessee, Lease, Description [Line Items]
Operating lease description		the Company entered into a 60-month lease agreement for its 3,554 sf warehouse facility starting in December 2016 with a minimum base rent of $2,132 and estimated monthly CAM charges of $1,017 per month
Operating leases, rent expense		$ 2,132
Warehouse Lease Facility Three [Member]
Lessee, Lease, Description [Line Items]
Operating lease description	the Company entered into a 60-month lease agreement with its minority shareholder for its 8,800 sf warehouse facility with a minimum base rent of $6,400 per month
Operating leases, rent expense	$ 6,400
Vehicles [Member]
Lessee, Lease, Description [Line Items]
Operating lease description			the Company entered into an operating lease for a vehicle with an annual cost of $9,067 and a three year term. The company paid initial fees of $17,744 and will pay fees on lease termination of $395. On a straight-line basis these costs amount to $1,259 per month
Operating leases, rent expense			$ 9,067

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The net income (loss) per common share amounts were determined as follows: (Details) - USD ($)	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Numerator:
Net income (loss) available to common shareholders	$ (2,594,158)	$ (567,557)
Denominator:
Weighted average shares – basic	1,342,433	194,010
Net income (loss) per share – basic	$ (1.93)	$ (2.93)
Effect of common stock equivalents
Add: interest expense on convertible debt	$ 112,742	$ 34,652
Add: amortization of debt discount	725,280	128,528
Less: gain on settlement of debt on convertible notes
Add (Less): loss (gain) on change of derivative liabilities	337,737	(4,187)
Net income (loss) adjusted for common stock equivalents	(1,418,399)	(408,564)
Dilutive effect of common stock equivalents:
Convertible class c preferred shares
Denominator:
Weighted average shares – diluted	1,342,433	194,010
Net income (loss) per share – diluted	$ (1.93)	$ (2.93)
Warrant [Member]
Dilutive effect of common stock equivalents:
Convertible class c preferred shares
Convertible Class C Preferred Shares [Member]
Dilutive effect of common stock equivalents:
Convertible class c preferred shares

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The anti-dilutive shares of common stock equivalents for the three months ended April 30, 2022 and April 30, 2021 were as follows: (Details) - shares	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Short-Term Debt [Line Items]
Anti-dilutive shares	1,446,831	808,058
Convertible Notes and Accrued interest [Member]
Short-Term Debt [Line Items]
Anti-dilutive shares	701,281	35,437
Convertible Class C Preferred Shares [Member]
Short-Term Debt [Line Items]
Anti-dilutive shares		677,071
Options Held [Member]
Short-Term Debt [Line Items]
Anti-dilutive shares	75,000
Warrant [Member]
Short-Term Debt [Line Items]
Anti-dilutive shares	670,550	95,550

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SUBSEQUENT EVENTS (Details Narrative) - USD ($)		3 Months Ended
	May 19, 2022	Apr. 30, 2022	Apr. 30, 2021	Apr. 28, 2022	Jan. 31, 2022
Subsequent Event [Line Items]
Common Stock, Shares, Issued		1,500,362		2,587	341,023
Proceeds from issuance of common stock			$ 2,099,683
Convertible Debt [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Principal amount	$ 400,000
Investment interest rate	12.00%
Exercise price of shares	$ 15.00
Fair value	$ 41,500
Debt description	recorded an original issue discount of $20,000 and transaction fees of $12,000
Description of conversion	The note has certain default provisions such as failure to pay any principal or interest when due and failure to issue shares upon conversion. In the event of these or any other default provisions, the note becomes due and payable at 125%.
Convertible Debt 4 [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Conversion of shares	33,333
Maturities term	P5Y
Proceeds from issuance of common stock	$ 325,000