0001753926-23-000115.txt : 20230209 0001753926-23-000115.hdr.sgml : 20230209 20230209162216 ACCESSION NUMBER: 0001753926-23-000115 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 35 CONFORMED PERIOD OF REPORT: 20221031 FILED AS OF DATE: 20230209 DATE AS OF CHANGE: 20230209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Arax Holdings Corp CENTRAL INDEX KEY: 0001566243 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 990376721 STATE OF INCORPORATION: NV FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-185928 FILM NUMBER: 23606540 BUSINESS ADDRESS: STREET 1: 1185 AVENUE OF THE AMERICAS 3RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 646-768-8417 MAIL ADDRESS: STREET 1: 1185 AVENUE OF THE AMERICAS 3RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 10-K 1 g083369_10k.htm 10-K
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

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

For the fiscal year ended October 31, 2022

 

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

 

For the transition period from ___________ to ___________

COMMISSION FILE NO. 333-185928

 

ARAX HOLDINGS CORP.

(Exact name of registrant as specified in its charter)

 

Nevada

(State or other jurisdiction of incorporation)

 

6770

(Primary Standard Industrial Classification Code Number) 

 

99-0376721

(IRS Employer Identification No.)

 

30 North Gould Street

Sheridan, WY 82801

850-254-1161

(Address and telephone number of registrant’s executive office)

 

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

 

Title of each class   Trading Symbol   Name of each exchange on which registered
None   N/A   N/A

 

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

 

Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐    No ☒ 

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐    No ☒ 

 

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

 

 

 

 

Indicate by check mark whether the registrant has submitted electronically 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 ☒    No ☐ 

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes ☒    No ☐ 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 Smaller reporting company
  Emerging growth company

 

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

 

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

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant, as of January 17, 2023, was approximately $1,050,882 based on a closing price of $0.45 as of such date. Solely for purposes of this disclosure, shares of common stock held by executive officers, directors, and beneficial holders of 10% or more of the outstanding common stock of the registrant as of such date have been excluded because such persons may be deemed to be affiliates. 

 

As of February 7, 2023 the Registrant had 10,335,294 shares of common stock issued and outstanding. 

 

 

 

 

TABLE OF CONTENTS

 

  PART I  
     
Item 1 Description of Business 1
     
Item 1A Risk Factors 2
     
Item 1B Unresolved Staff Comments 2
     
Item 2 Properties 2
     
Item 3 Legal Proceedings 2
     
Item 4 Mine Safety Disclosures 2
     
  PART II  
     
Item  5 Market for Common Equity and Related Stockholder Matters 3
     
Item  6 Selected Financial Data 3
     
Item  7 Management’s Discussion and Analysis of Financial Condition and Results of Operations 3
     
Item 7A Quantitative and Qualitative Disclosures About Market Risk 5
     
Item 8 Financial Statements and Supplementary Data F-1
     
Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 6
     
Item 9A Controls and Procedures 6
     
Item 9B Other Information 7
     
  PART III  
     
Item 10 Directors, Executive Officers, and Corporate Governance 8
     
Item 11 Executive Compensation 10
     
Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 10
     
Item 13 Certain Relationships and Related Transactions, and Director Independence 11
     
Item 14 Principal Accountant Fees and Services 11
     
  PART IV  
     
Item 15 Exhibits and Financial Statement Schedules 13

 

i 

 

 

PART I

 

ITEM 1. DESCRIPTION OF BUSINESS

 

As used in this annual report, the terms “we”, “us”, “our”, “the Company”, mean Arax Holdings Corp. unless otherwise indicated.

 

Cautionary Note Regarding Forward Looking Statements

 

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our ability to locate and acquire an operating business and the resources and efforts we intend to dedicate to such an endeavor, our development of a viable business plan and commencement of operations, and our ability to locate sources of capital necessary to commence operations or otherwise meet our business needs and objectives. All statements other than statements of historical facts contained in this report, including statements regarding our future financial position, liquidity, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.

 

The results anticipated by any or all of these forward-looking statements might not occur. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include those described in Item 1A. – Risk Factors. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

 

Description of Business

 

Arax Holdings Corp. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of Nevada on February 23, 2012 with a business plan to sell hot dogs from mobile hot dog stands throughout the major cities in Mexico. As of the filing of the 10K for 2016, the Company stated that it was re-evaluating its business plan.

 

We have been dormant from May 2005 through October 31, 2020. As of the date of this Report, we intend to engage in what we believe to be synergistic acquisitions or joint ventures with a company or companies that we believe will enhance our business plan. There are no assurances we will be able to consummate any acquisitions using our securities as consideration, or at all. Numerous things will need to occur to allow us to implement this aspect of our business plan and there are no assurances that any of these developments will occur, or if they do occur, that we will be successful in fully implementing our plan.

 

On December 30, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-825346-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of the Company. On the same date, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.

 

On June 24, 2021, as a result of a private transaction, 10,000,000 shares of Series A Preferred Stock, $0.001 par value per share (the "Shares") of Arax Holdings Corp., a Nevada corporation (the “Company”), were transferred from Custodian Ventures, LLC to Michael Pieter Loubser (the “Purchaser”). As a result, the Purchaser became an approximately 90.6% holder of the voting rights of the issued and outstanding share capital of the Company on a fully-diluted basis of the Company, and became the controlling shareholder. In connection with the transaction, David Lazar released the Company from all debts owed to him and/or Custodian Ventures, LLC.

 

On June 24, 2021, the existing director and officer resigned immediately. Accordingly, David Lazar, serving as a director and an officer, ceased to be the Company’s Chief Executive Officer, Chief Financial Officer, President, Treasurer, Secretary and a Director. At the effective date of the transfer, Michael Pieter Loubser consented to act as the new Chairman of the Board of Directors of the Company, Ockert Cornelius Loubser consented to act as the new Chief Executive Officer of the Company, and Rastislav Vašička consented to act as the new Chief Information Officer of the Company.

 

On August 31st, 2021, the Company appointed Christopher D. Strachan as its Chief Financial Officer. The Company began a transition into a software and technology holding company, negotiating agreements with various technology companies in Europe to acquire some of their related assets. The Company is actively working to remove the shell status and has commenced operations.

 

 1

 

 

Competition and Market Conditions

 

We will face substantial competition in our efforts to identify and pursue a business venture. The primary source of competition is expected to be from other companies organized and funded for similar purposes, including small venture capital firms, blank check companies, and wealthy investors, many of which may have substantially greater financial and other resources than we do. In light of our limited financial and human resources, we are at a competitive disadvantage compared to many of our competitors in our efforts to obtain an operating business or assets necessary to commence our operations in a new field. Additionally, with the economic downturn caused by the coronavirus pandemic, many venture capital firms and similar firms and individuals have been seeking to acquire businesses at discounted rates, and we therefore currently face additional competition and resultant difficulty obtaining a business. We expect these conditions to persist at least until such time as the economy recovers. Further, even if we are successful in obtaining a business or assets for new operations, we expect there to be enhanced barriers to entry in the marketplace in which we decide to operate as a result of reduced demand and/or increased raw material costs caused by the pandemic and other economic forces that are beyond our control.

 

Regulation

 

As of the date of this Report, we are required to file reports with the Securities and Exchange Commission (the “SEC”) by Section 13 of the Securities Exchange Act of 1934 (the “Exchange Act”).

 

Depending on the direction management decides to take and a business or businesses we may acquire in the future, we may become subject to other laws or regulations that require us to make material expenditures on compliance including the increasing state level regulation of privacy. Any such requirements could require us to divert significant human and capital resources on compliance, which could have an adverse effect on our future operating results.

 

Employees

 

As of the date of this Report, we do not have employees. However our Chief Executive Officer, Chief Financial Officer and Chief Information Officer provide part-time consulting services to us with deferred compensation fees.

 

ITEM 1A. RISK FACTORS

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

 

ITEM 1B. UNRESOLVED STAFF COMMENTS.

 

None.

 

ITEM 2. PROPERTIES

 

The Company’s principal business and corporate address is 30 North Gould Street, Sheridan, WY 82801.

 

ITEM 3. LEGAL PROCEEDINGS

 

We currently are not a party to any material litigation or other material legal proceedings. From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.  

 

 2

 

 

PART II

 

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

 

Market Information

 

Our Common Stock is not listed on any securities exchange, and is quoted on the OTC Pink Market under the symbol “ARAT” Because our Common Stock is not listed on a securities exchange and its quotations on OTC Pink are limited and sporadic, there is currently no established public trading market for our Common Stock.

 

Holders

 

As of February 7, 2023 there were 35 shareholders of record of the Company’s Common Stock based upon the records of the shareholders provided by the Company’s transfer agent. The Company’s transfer agent is Vstock Transfer, 18 Lafayette Place, Woodmere, New York 11598, Telephone # 212-828-8436.

 

Dividends

 

We have never paid or declared any dividends on our Common Stock and do not anticipate paying cash dividends in the foreseeable future.

 

Securities Authorized For Issuance Under Equity Compensation Plans

 

We currently do not have any equity compensation plans.

 

Unregistered Sales of Equity Securities

 

We have previously disclosed all sales of securities without registration under the Securities Act of 1933.

 

ITEM 6. SELECTED FINANCIAL DATA

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF OPERATIONS

 

The Company has no operations or revenue as of October 31, 2022. We are currently in the process of developing a business plan. Management intends to explore and identify viable business opportunities within the U.S. including seeking to acquire a business in a reverse merger. Our ability to effectively identify, develop and implement a viable plan for our business may be hindered by risks and uncertainties which are beyond our control, including without limitation, the continued negative effects of the coronavirus pandemic on the U.S. and global economies. The Company has signed a Binding Letter of Intent and Deal Terms with a technology company to acquire some of their IP and technology assets together with limited liabilities. The Company continues to explore other acquisitions to further strengthen their ability to provide shareholder value and has begun operations. On December 13, 2022 the Company entered into an agreement to purchase the assets, software IP, and some liabilities of Core Business Holdings which is anticipated to be completed in the second fiscal quarter of 2023. This acquisition brings revenue and assets into the company to develop shareholder value. .For more information about the risk of Covid-19 on our business, see Item 1.A. - “Risk Factors”.

 

Plan of Operation

 

The Company has no operations from a continuing business other than the expenditures related to running the Company and has no revenue from continuing operations as of the date of this Report.

 

Management intends to explore and identify business opportunities within the U.S. and Europe, including a potential acquisition of an operating entity through a reverse merger, asset purchase or similar transaction. Our Chief Executive Officer has experience in business consulting, although no assurances can be given that he can identify and implement a viable business strategy or that any such strategy will result in profits. Our ability to effectively identify, develop and implement a viable plan for our business may be hindered by risks and uncertainties which are beyond our control, including without limitation, the continued negative effects of the coronavirus pandemic on the U.S. and global economies. For more information about the risk of coronavirus on our business, see Item 1A “Risk Factors.”

 

 3

 

 

We have not engaged in any business activities that provided revenue or cash flow. During the next 12-month period we anticipate incurring costs in connection with investigating, evaluating, and negotiating potential business combinations, filing SEC reports, and consummating an acquisition of an operating business. The Company has entered into an acquisition agreement acquiring the technology, IP and assets of Core Business Holdings which will bring significant assets and potential revenues for the company.

 

Given our limited capital resources, we may consider a business combination with an entity which has recently commenced operations, is a developing company or is otherwise in need of additional funds for the development of new products or services or expansion into new markets, or is an established business experiencing financial or operating difficulties and is in need of additional capital. Alternatively, a business combination may involve the acquisition of, or merger with, an entity which desires access to the U.S. capital markets.

 

As of the date of this Report, our management has had discussions with representatives of many other entity regarding a potential business combination. These negotiations have led the Company to enter into a Binding Letter of Intent and Deal Terms for the acquisition of certain IP and technologies together with some liabilities for the purpose of expanding operations and bringing further value to its shareholders Any target business that is selected may be financially unstable or in the early stages of development. In such event, we expect to be subject to numerous risks inherent in the business and operations of a financially unstable or early-stage entity. In addition, we may effect a business combination with an entity in an industry characterized by a high level of risk or in which our management has limited experience, and, although our management will endeavor to evaluate the risks inherent in a particular target business, there can be no assurance that we will properly ascertain or assess all significant risks.

 

Our management anticipates that we will likely only be able to effect one business combination due to our limited capital. This lack of diversification will likely pose a substantial risk in investing in the Company for the indefinite future because it will not permit us to offset potential losses from one venture or operating territory against gains from another. The risks we face will likely be heightened to the extent we acquire a business operating in a single industry or geographical region.

 

We anticipate that the selection of a business combination will be a complex and risk-prone process. Because of general economic conditions, including unfavorable conditions caused by the coronavirus pandemic, rapid technological advances being made in some industries and shortages of available capital, management believes that there are a number of firms seeking business opportunities at this time at discounted rates with which we will compete. We expect that any potentially available business combinations may appear in a variety of different industries or regions and at various stages of development, all of which will likely render the task of comparative investigation and analysis of such business opportunities extremely difficult and complicated. Once we have developed and begun to implement our business plan, management intends to fund our working capital requirements through a combination of our existing funds and future issuances of debt or equity securities. Our working capital requirements are expected to increase in line with the implementation of a business plan and commencement of operations.

 

Based upon our current operations, we do not have sufficient working capital to fund our operations over the next 12 months. If we are able to close a reverse merger, it is likely we will need capital as a condition of closing that acquisition. Because of the uncertainties, we cannot be certain as to how much capital we need to raise or the type of securities we will be required to issue. In connection with a reverse merger, we will be required to issue a controlling block of our securities to the target’s shareholders which will be very dilutive. 

 

Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences, or privileges senior to our Common Stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

 

 4

 

 

We anticipate that we will incur operating losses in the next 12 months, principally costs related to our being obligated to file reports with the SEC. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development.  Such risks for us include, but are not limited to, an evolving and unpredictable business model, recognition of revenue sources, and the management of growth. To address these risks, we must, among other things, develop, implement, and successfully execute our business and marketing strategy, respond to competitive developments, and attract, retain, and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so could have a material adverse effect on our business prospects, financial condition, and results of operations.

 

COVID-19 Update

 

To date, the COVID-19 pandemic has not had a material impact on the Company, particularly due to our current lack of operations. The pandemic may, however, have an impact on our ability to evaluate and acquire an operating entity through a reverse merger or otherwise. See Item 1A “Risk Factors” for more information.

 

Off Balance Sheet Arrangements

 

As of the date of this Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

 

Going Concern

 

The independent registered public accounting firm auditors’ report accompanying our October 31, 2022 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared “assuming that we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

 5

 

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

Report of Independent Registered Public Accounting Firm F-2
   
Balance Sheets as of October 31, 2022 and 2021 F-3
   
Statements of Operations for the Years Ended October 31, 2022 and 2021 F-4
   
Statements of Changes in Stockholders’ Equity (Deficit) for the Years Ended October 31, 2022 and 2021 F-5
   
Statements of Cash Flows for the Years Ended October 31, 2022 and 2021 F-6
   
Notes to the Financial Statements F-7

 

F-1

 

 

Report of Independent Registered Public Accounting Firm

 

To the shareholders and the board of directors of Arax Holdings Corp.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Arax Holdings Corp. as of October 31, 2022 and 2021, the related statements of operations, stockholders’ equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of October 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

 

Substantial Doubt about the Company’s Ability to Continue as a Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

 

Critical Audit Matter

 

Critical audit matters are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

 

We determined that there are no critical audit matters.

 

/S/ BF Borgers CPA PC (PCAOB ID 5041)

 

We have served as the Company’s auditor since 2021

Lakewood, CO

February 9, 2023

 

F-2

 

 

ARAX HOLDINGS CORP.

BALANCE SHEET

 

         
   October 31,
2022
   October 31,
2021
 
ASSETS        
Total assets  $    $  
         
LIABILITIES & STOCKHOLDERS’ DEFICIT          
           
Current liabilities          
Accrued expenses  $116,869   $14,150 
Due to related party   57,756    11,862 
Total current liabilities   174,625    26,012 
Total liabilities  $174,625   $26,012 
           
Commitments and contingencies          
           
Stockholders’ deficit          
Preferred Stock Series A, par value $0.001, 10,000,000 shares authorized, 10,000,000 and -0- shares issued and outstanding as of October 31, 2022 and 2021, respectively   10,000    10,000 
Common stock, Par Value $0.001, 75,000,000 shares authorized, 10,335,294 issued and outstanding as of October 31, 2022 and 2021   10,335    10,335 
Additional paid in capital   684,046    684,046 
Accumulated deficit   (879,006)   (730,393)
Total stockholders’ deficit   (174,625)   (26,012)
Total liabilities and stockholders’ deficit  $   $ 

 

F-3

 

 

ARAX HOLDINGS CORP.

STATEMENT OF OPERATIONS

 

         
   Year ended
October 31,
2022
   Year ended
October 31,
2021
 
Revenue  $   $ 
           
Operating expenses:          
Administrative expenses   73,613    26,012 
Administrative expenses -related party   75,000    105,775 
Total operating expenses   148,613    131,787 
Loss from operations   (148,613)   (131,787)
Other expense          
Other (expense) net        
Loss before provision for income taxes   (148,613)   (131,787)
Provision for income taxes        
Net loss  $(148,613)  $(131,787)
           
Basic and diluted loss per common share  $(0.01)  $(0.01)
           
Weighted average number of shares outstanding   10,335,294    10,335,294 

 

F-4

 

 

ARAX HOLDINGS CORP

 

STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

YEARS ENDED OCTOBER 31, 2022 AND 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-in

Capital

 

 

Accumulated
Deficit

 

 

Stockholders’
Equity

 

 

 

Shares

 

 

Value

 

 

Shares

 

 

Value

 

Balance, October 31, 2019

 

 

 

 

$

 

 

 

10,335,294

 

 

$

10,335

 

 

$

588,271

 

 

$

(598,606

)

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 31, 2020

 

 

 

 

$

 

 

 

10,335,294

 

 

$

10,335

 

 

$

588,271

 

 

$

(598,606

)

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-in

Capital

 

 

Accumulated
Deficit

 

 

Stockholders’
Deficit

 

 

 

Shares

 

 

Value

 

 

Shares

 

 

Value

 

           

Balance, October 31, 2020

 

 

 

 

$

 

 

 

10,335,294

 

 

$

10,335

 

 

$

588,271

 

 

$

(598,606

)

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of preferred stock and forgiveness of debt treated as a capital contribution

 

 

10,000,000

 

 

 

10,000

 

 

 

 

 

 

 

 

 

90,000

 

 

 

 

 

 

100,000

 

Forgiveness of debt treated as a capital contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,775

 

 

 

 

 

 

5,775

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(131,787

)

 

 

(131,787

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 31, 2021

 

 

10,000,000

 

 

$

10,000

 

 

 

10,335,294

 

 

$

10,335

 

 

$

684,046

 

 

$

(730,393

)

 

$

(26,012

)

 

                                    Additional             Total  
    Preferred Stock     Common Stock    

Paid-in

Capital

    Accumulated
Deficit
    Stockholders’
Deficit
 
    Shares     Value     Shares     Value              
Balance, October 31, 2021     10,000,000     $ 10,000       10,335,294     $ 10,335     $ 684,046     $ (730,393 )   $ (26,012)  
                                                         
Net loss                                   (148,613 )     (148,613 )
                                                         
Balance, October 31, 2022     10,000,000     $ 10,000       10,335,294     $ 10,335     $ 684,046     $ (879,006 )   $ (174,625 )

 

F-5

 

 

ARAX HOLDINGS CORP

 

STATEMENT OF CASH FLOWS

 

         
   Year ended
October 31,
2022
   Year ended
October 31,
2021
 
Cash flows from operating activities:          
Net loss  $(148,613)  $(131,787)
Adjustments to reconcile net loss to net cash used by operating activities:          
Stock based compensation       83,834 
Expenses paid by related party   45,894    11,862 
Changes in operating assets and liabilities:          
Increase in accrued expenses   102,719    14,150 
Net cash used by operating activities       (21,941)
           
Cash flows from investing activities:        
           
Cash flows from financing activities:          
Proceeds from related party notes       21,941 
Net cash provided by financing activities       21,941 
           
Net increase (decrease) in cash        
Cash at the beginning of the period        
Cash at the end of the period  $   $ 
           
Supplemental disclosures of cash flow information:          
Cash paid during the period for interest        
Cash paid during the period for income taxes        
           
 Supplemental schedule of non-cash investing and financing activities:          
Related party debt settled with preferred stock       16,166 
Forgiveness of related party debt credited to paid in capital       5,775 

 

F-6

 

 

ARAX HOLDINGS CORP.

 

NOTES TO FINANCIAL STATEMENTS

OCTOBER 31, 2022 AND 2021

 

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Arax Holdings Corp. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of Nevada on February 23, 2012 with a business plan to sell hot dogs from mobile hot dog stands throughout the major cities in Mexico. As of the filing of the 10K for 2016, the Company stated that it was re-evaluating its business plan.

 

It was further indicated as possible that a new business model could be related to a new business sector other than the food sector, and that any new business model could entail a capital restructuring of the Company in order to provide new capital and a broader base of shareholders. Such a capital restructuring of the Company could involve a merger or acquisition of assets through various techniques, including a possible reverse-merger. On October 31, 2016 management believed that the best business model for our investors is to pursue business activity in the Life Sciences sector of the United States and possibly internationally.

 

The Company had been dormant from September 28, 2017 to October 31, 2020.

 

On December 30, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-825346-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of the Company. On the same date, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.

 

On June 24, 2021, as a result of a private transaction, 10,000,000 shares of Series A Preferred Stock, $0.001 par value per share (the “Shares”) of Arax Holdings Corp., a Nevada corporation (the “Company”), were transferred from Custodian Ventures, LLC to Michael Pieter Loubser (the “Purchaser”). As a result, the Purchaser became an approximately 90.6% holder of the voting rights of the issued and outstanding share capital of the Company on a fully-diluted basis of the Company, and became the controlling shareholder. In connection with the transaction, David Lazar released the Company from all debts owed to him and/or Custodian Ventures, LLC.

 

On June 24, 2021, the existing director and officer resigned immediately. Accordingly, David Lazar, serving as a director and an officer, ceased to be the Company’s Chief Executive Officer, Chief Financial Officer, President, Treasurer, Secretary and a Director. At the effective date of the transfer, Michael Pieter Loubser consented to act as the new Chairman of the Board of Directors of the Company, Ockert Cornelius Loubser consented to act as the new Chief Executive Officer of the Company, and Rastislav Vašička consented to act as the new Chief Information Officer of the Company.

 

On August 31st, 2021, the Company appointed Christopher D. Strachan as its Chief Financial Officer. The Company began a transition into a software and technology holding company, negotiating agreements with various technology companies in Europe to acquire some of their related assets. The Company has removed the shell status and has commenced operations. As of the date of this Report, our management has had discussions with representatives of many other entity regarding a potential business combination. These negotiations have led the Company to enter into a Binding Letter of Intent and Deal Terms for the acquisition of certain IP and technologies together with some liabilities for the purpose of expanding operations and bringing further value to shareholders

 

F-7

 

 

The Company has no employment contracts with any of its officers.

 

COVID-19

 

On March 11, 2020, the World Health Organization (“WHO”) declared the Covid-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease.

 

Covid-19 and the U.S’s response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the Covid-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business, or our operations.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) “FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. 

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of October 31, 2021, the Company had a working capital deficit of $26,012 and an accumulated deficit of $730,393.

 

Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. The Company is currently being funded by a company related to Michael Pieter Loubser. The Company will be required to continue to rely on this entity until its operations become profitable.

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

 

Cash and cash equivalents

 

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents.

 

F-8

 

 

Income taxes

 

The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Under FASB ASC 740, 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. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities.

 

The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit.

 

Stock-based Compensation

 

The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

 

Net Loss per Share

 

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has 100,000,000 and 0 shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the years ended October 31, 2021 and 2020, respectively.

 

 

NOTE 3 – EQUITY

 

Common Stock

 

The Company has authorized 75,000,000 shares of $0.001 par value, common stock. As of October 31, 2022 and 2021 there were 10,335,294 shares of common stock issued and outstanding.

 

Preferred Stock

 

On March 31, 2021 the Company took a corporate action and authorized 10,000,000 shares of Series A Preferred Stock with a par value of $0.001. These shares which are convertible into common stock on a 10 for 1 basis, were awarded to Custodian Ventures managed by David Lazar in recognition of importance of Mr. Lazar ’s experience and expertise in devising a strategic plan to enable the Company to become a viable operating entity, and the fact that Mr. Lazar has provided the Company with its only source of liquidity via interest-free loans. These shares of Series A Preferred Stock in return for a reduction of $16,166 on Mr. Lazar’s loan of $21,941 due from the Company.

 

F-9

 

 

Due to the thinly traded nature of the Company’s stock and its status as a “shell”, the Company used the par value of the common stock which was determined to be $100,000 to value this issuance and recorded $16,166 for repayment of the loan and $83,834 as share-based compensation in the Company’s Statements of Operations.

 

On June 24, 2021, as a result of a private transaction, the 10,000,000 shares of Series A Preferred Stock were transferred from Custodian Ventures, LLC to Michael Pieter Loubser.

 

No transactions were recorded for the fiscal year ended October 31, 2022

 

Liquidation Preference

 

In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, subject to the rights of any existing series of Preferred Stock or to the rights of any series of Preferred Stock which may from time to time hereafter come into existence, the holders of the Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any of the assets of the Corporation to the holders of Common Stock by reason of their ownership thereof, an amount per share equal to the price per share actually paid to the Corporation upon the initial issuance of the Series A Preferred Stock (each, the “the Original Issue Price”) for each share of Series A Preferred Stock then held by them, plus declared but unpaid dividends. Unless the Corporation can establish a different Original Issue Price in connection with a particular sale of Series A Preferred Stock, the Original Issue Price shall be $0.001per share for the Series A Preferred Stock. If, upon the occurrence of any liquidation, dissolution or winding up of the Corporation, the assets and funds thus distributed among the holders of the Series A Preferred Stock shall be insufficient to permit the payment to such holders of the full aforesaid preferential amounts, then, subject to the rights of any existing series of Preferred Stock or to the rights of any series Arax Holdings Corp. Pursuant to Section 78.1955 of the Nevada Revised Statutes

  

F-10

 

 

SERIES A PREFERRED STOCK.

 

On behalf of Arax Holdings Corp., a Nevada corporation (the “Corporation”), the undersigned hereby certifies that the following resolution has been duly adopted by the board of directors of the Corporation (the “Board”): RESOLVED, that, pursuant to the authority granted to and vested in the Board by the provisions of the articles of incorporation of the Corporation (the “Articles of Incorporation”), there hereby is created, out of the Ten Million (10,000,000) shares of preferred stock, par value $0.001 per share, of the Corporation authorized by the Corporation’s Articles of Incorporation (“Preferred Stock”), Series A Preferred Stock, consisting of Ten Million (10,000,000) shares, which series shall have the following powers, designations, preferences and relative participating, optional and other special rights, and the following qualifications, limitations and restrictions: of Preferred Stock which may from time to time hereafter come into existence, the entire assets and funds of the corporation legally available for distribution shall be distributed ratably among the holders of the each series of Preferred Stock in proportion to the preferential amount each such holder is otherwise entitled to receive.

 

(b) Upon the completion of the distribution required by Section 2(a) above and any other distribution that may be required with respect to the rights of any existing series of Preferred Stock or to the rights of any series of Preferred Stock which may from time to time hereafter come into existence, if assets remain in the Corporation, the remaining assets shall be distributed to the holders of the Common Stock until such time as the holders of the Common stock shall have received a return of the capital originally contributed thereby. Thereafter, if assets remain in the Corporation, all remaining assets shall be distributed to all holders of Common Stock and to each series of Preferred Stock, pro rata based on the number of shares of Common Stock held by each (assuming conversion of all such Preferred Stock into Common Stock).

 

(c) For purposes of this Section 2, a liquidation, dissolution or winding up of the Corporation shall be deemed to be occasioned by, or to include, (i) the acquisition of the Corporation by another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Corporation); or (ii) a sale of all or substantially all of the assets of the Corporation, unless the Corporation’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Corporation’s acquisition or sale or otherwise) hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity in approximately the same relative percentages after such acquisition or sale as before such acquisition or sale.

 

(d) In any of the events specified in (c) above, if the consideration received by the corporation is other than cash, its value will be deemed its fair market value. Any securities shall be valued as follows:

 

(i) Securities not subject to investment letter or other similar restrictions on free marketability:

 

(A) If traded on a securities exchange, the value shall be deemed to be the average of the closing prices of the securities on such exchange over the thirty-day period ending three (3) days prior to the closing;

 

(B) If actively traded over-the-counter, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) over the thirty-day period ending three (3) days prior to the closing; and

 

(C) If there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Board of Directors.

 

(ii) The method of valuation of securities subject to investment letter or other restrictions on free marketability (other than restrictions arising solely by virtue of a stockholder’s status as an affiliate or former affiliate) shall be to make an appropriate discount from the market value determined as above in (i) (A), (B) or (C) to reflect the approximate fair market value thereof, as mutually determined by the Corporation and the holders of at least a majority of the voting power of all then outstanding shares of Preferred Stock.

 

F-11

 

 

(iii) In the event the requirements of Section 2(c) are not complied with, the Corporation shall forthwith either:

 

(A) cause such closing to be postponed until such time as the requirements of this Section 2 have been complied with; or

 

(B) cancel such transaction, in which event the rights, preferences and privileges of the holders of the Series A Preferred Stock shall revert to and be the same as such rights, preferences and privileges existing immediately prior to the date of the first notice referred to in Section 2(c)(iv) hereof.

 

(iv) The Corporation shall give each holder of record of Series A Preferred Stock written notice of such impending transaction not later than twenty (20) days prior to the stockholders’ meeting called to approve such transaction, or twenty (20) days prior to the closing of such transaction, whichever is earlier, and shall also notify such holders in writing of the final approval of such transaction. The first of such notices shall describe the material terms and conditions of the impending transaction and the provisions of this Section 2, and the corporation shall thereafter give such holders prompt notice of any material changes. The transaction shall in no event take place sooner than twenty (20) days after the corporation has given the first notice provided for herein or sooner than ten (10) days after the corporation has given notice of any material changes provided for herein; provided, however, that time periods set forth in this paragraph may be shortened upon the written consent of the holders of Series A Preferred Stock that are entitled to such notice rights or similar notice rights and that represent at least a majority of the voting power of all then outstanding shares of such Series A Preferred Stock.

 

NOTE 4 – COMMITMENTS AND CONTINGENCIES

 

The Company did not have any contractual commitments of October 31, 2022 and 2021.

 

NOTE 5 – NOTES PAYABLE-RELATED PARY

 

Mr. Lazar, the principal member of the Company’s Court-appointed custodian, is considered a related party. During the three months ended April 30, 2021, Custodian Venture extended $9,220 in interest-free demand loans to the Company. As of April 30, 2021, the total amount due to Mr. Lazar amounted to $5,775. On June 24, 2021, in connection with the change of control transaction described in Note 1, Mr. Lazar forgave this amount, which has been credited to paid in capital.

 

F-12

 

 

NOTE 6 – ADVANCES FROM RELATED PARTY

 

An entity controlled by the Company’s Chairman has advanced an aggregate of $57,756 to the Company as of October 31, 2022. These funds were used to pay corporate expenses of the Company, and the payments were made directly to the vendors by this entity.

 

NOTE 6 – SUBSEQUENT EVENTS

 

In accordance with FASB ASC 855-10, Subsequent Events, the Company has analyzed its operations subsequent to October 31, 2022, to the date these consolidated financial statements were issued.

 

On December 13, 2022 the Company entered into an agreement to purchase the assets, technology, IP, and some liabilities of Core Business Holdings which is anticipated to be completed in the second fiscal quarter of 2023.

 

F-13

 

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

Not applicable

 

ITEM 9A. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures.

 

Our management is responsible for establishing and maintaining a system of “disclosure controls and procedures” (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

Management’s Report on Internal Control over Financial Reporting.

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed 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. Our internal control over financial reporting includes those policies and procedures that:

 

  pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
     
  provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
     
  provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. 

 

Our management assessed the effectiveness of our internal control over financial reporting based on the parameters set forth above and has concluded that as of October 31, 2021, our internal control over financial reporting was not effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles as a result of the following material weaknesses:

 

  The Company does not have sufficient segregation of duties within accounting functions due to its limited staff and limited resources.
     
  The Company does not have an independent board of directors or an audit committee.
     
  The Company does not have written documentation of our internal control policies and procedures.

 

6

 

 

  All of the Company’s financial reporting is carried out by a financial consultant.

 

We plan to rectify these weaknesses by implementing an independent board of directors, establishing written policies and procedures for our internal control of financial reporting, and hiring additional accounting personnel at such time as we complete a reverse merger or similar business acquisition.

 

Changes in Internal Control over Financial Reporting.

 

There has been no change in our internal control over financial reporting during the year ended October 31, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

ITEM 9B. OTHER INFORMATION.

 

None.

  

7

 

 

PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

The following table sets forth the names and positions of our executive officers and directors. Directors will be elected at our annual meeting of stockholders and serve for one year or until their successors are elected and qualify. Officers are elected by the Board and their terms of office are, except to the extent governed by employment contract, at the discretion of the Board.

 

Name   Age   Positions
Michael Pieter Loubser   65   Chairman of the Board of Directors
Ockert Cornelius Loubser   37   Chief Executive Officer
Christopher D. Strachan   58   Chief Financial Officer
Rastislav Vašička   37   Chief Technology Officer

 

Michael Pieter Loubser joined the Company as Chairman of the Board of Directors on June 24, 2021. With over 30 years’ experience in the digital transaction and data facilitation industry, Mr. Loubser is a seasoned Blockchain implementation advisor and Industrial Consultant, who has been instrumental in the set-up of 76 factories and improving workflow processes in many organizations worldwide. Mr. Loubser is co-founder and chairman of Core Decentralized Technologies, founded in [insert details] and based in Bratislava, Slovakia. Core develops and sells blockchain-based software and technology, mesh network communication solutions, and enterprise blockchain-based software products. Mr Loubser also is COO of GTIFin s.r.o. which he co-founded in 2012 in Bratislava, Slovakia to invest mainly in the development of high-tech solutions providers and use-case projects built on blockchain-based architecture.

 

Ockert Cornelius Loubser joined the Company as Chief Executive Officer on June 24, 2021. Mr. Loubser is a seasoned serial entrepreneur and tech-savvy business developer and has over 18 years of commercial expertise as a pioneering businessman. Since 2003, he established multiple ventures, all still in operations to this day. He co-founded Core Decentralized Technologies and has been the Chief Executive Officer of since 2014. He is also Chief Executive Officer of Wall Money since 2014, Chief Executive Officer of CorePay since 2014, Chief Executive Officer of Ting since 2014, Chief Executive Officer of TokToKey since 2012, Chief Executive Officer of PingExchange since 2014, Chief Executive Officer of Core Group since 2014, and CEO of Wall it since 2003. Ockert Loubser is the Co-Founder of GTIFin s.r.o. and has been with them since 2012. He is also the Chief Manager at CCnews24, and has been since 2018.

 

Christopher Strachan joined the Company as Chief Financial Officer on August 31, 2021. Mr. Strachan is an accomplished professional with thirty years of experience in corporate operations, marketing, securities and finance, and twenty years of experience in executive management. For the past five years, Mr. Strachan has served as chief financial officer of Diego Pellicer Worldwide, Inc. and has been a director of Diego since October 2019. Diego is a real estate and a consumer retail development company that is focused on high quality recurring revenues resulting from leasing real estate to licensed cannabis operators, and the management of operations for these and other third party cannabis operators deriving income from management and royalty fees. Mr. Strachan has also served as the President of Helisports LLC, a business development consulting company. In addition, he served as the Chief Executive Officer of Rhodes Architectural Stone from 2011 to 2012, Director of Marketing and Sales of Glasair Aviation from 2012 to 2014 and Director of Flight Operations and R&D at RotorWay Helicopters from 2009 to 2011.

 

Rastislav Vašička joined the Company as Chief Information Officer on June 24, 2021. Mr. Vašička has been the Chief Information Officer of Decentralized Software Solutions Platform since 2019. Rastislav has been the Chief Information Officer of Core Group since 2017, the Chief Information Officer of ping exchange since 2018, the Founder of CRYPTO ■ HUB since 2018, the Managing Editor at CCnews24 since Jan 2018, CIO of Wall it since 2016, and Co-founder of Webhosting & Blockchain services since 2010.

 

8

 

 

Election of Directors and Officers

 

Directors are elected to serve until the next annual meeting of stockholders and until their successors have been elected and qualified. Officers are appointed to serve until the meeting of the Board following the next annual meeting of stockholders and until their successors have been elected and qualified.

 

Audit Committee

 

We do not have any committees of the Board as we only have four directors. 

 

Director Independence

 

We do not currently have any independent directors. We evaluate independence by the standards for director independence established by Marketplace Rule 5605(a)(2) of the Nasdaq Stock Market, Inc.

 

Board Leadership Structure

 

We have chosen to combine the Chief Executive Officer and Board Chairman.

 

Code of Ethics

 

Our Board has not adopted a Code of Ethics due to the Company’s size and lack of employees. As of the date of this Report, our sole director is also our Chief Executive Officer. 

 

Delinquent Section 16(a) Reports

 

Section 16(a) of the Exchange Act requires the Company’s directors, executive officers, and persons who own more than 10% of the Company’s Common Stock to file initial reports of ownership and changes in ownership of the Company’s Common Stock with the SEC. These individuals are required by the regulations of the SEC to furnish us with copies of all Section 16(a) forms they file. Based solely on a review of the copies of the forms furnished to us none of Company’s directors, executive officers, and persons who own more than 10% of the Company’s Common Stock failed to comply with Section 16(a) filing requirements.

  

9

 

 

ITEM 11. EXECUTIVE COMPENSATION

 

Summary Compensation Table— Fiscal Years Ended October 31, 2022 and 2021

 

The following table sets forth information concerning all cash and non-cash compensation awarded to, earned by or paid to the named persons for services rendered in all capacities during the noted periods. No other executive officers received total annual salary and bonus compensation in excess of $100,000.  

 

Name and Principal Position  Fiscal
Year
   Salary ($)   Bonus   Option
Awards
   All Other
Compensation
   Total ($) 
Ockert Cornelius Loubser CEO (1)   2022   $               $ 
    2021   $               $ 
Christopher Strachan - CFO (2)   2022   $            75,000(3)  $75,000 
    2021   $               $ 

 

(1) Ockert Cornelius has served as CEO since June 24, 2021.

 

(2) Christopher Strachan has served as CFO since August 31, 2021.

 

(3) Represents the deferred compensation of $75,000.

 

Named Executive Officer Employment Agreements

 

None.

 

Termination Provisions

 

As of the date of this Report, we have no contract, agreement, plan, or arrangement, whether written or unwritten, that provides for payments to a Named Executive Officer at, following, or in connection with any termination, including without limitation resignation, severance, retirement or a constructive termination of a Named Executive Officer, or a change in control of the Company or a change in the Named Executive Officer’s responsibilities, with respect to each Named Executive Officer.

 

Outstanding Equity Awards at Fiscal Year End

 

As of October 31, 2022 none of our Named Executive Officers held any unexercised options, stock that have not vested, or other equity incentive plan awards.

 

Director Compensation

 

To date, we have not paid our director any compensation for services on our Board.

 

Equity Compensation Plan Information

 

The Company does not have any securities authorized for issuance or outstanding under an equity compensation plan or equity compensation grants made outside of such a plan. 

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

The following table provides the names and addresses of each person known to us to own more than 5% of our outstanding shares of common stock as of January 20, 2023 and by the officers and directors, individually and as a group. Except as otherwise indicated, all shares are owned directly and the shareholders listed possesses sole voting and investment power with respect to the shares shown. 

 

10

 

 

Name of Beneficial Owner and Address (1)  Amount and Nature of Beneficial Ownership of Common Stock   Percent of
Common Stock (2)
 
Michael Pieter Loubser   100,000,000(3)   90.6%
Ockert Cornelius Loubser       %
Christopher D. Strachan       %
Rastislav Vašička       %
All directors and officers as a group (4 people)   100,000,000    90.6%
5% Shareholders          
Thru Pharma, LLC (4)   8,000,000    77.4%

 

  (1) Unless otherwise noted, the address of each beneficial owner is c/o 30 North Gould Street, Sheridan, WY 82801.

    

  (2) Based on 10,335,294 shares of common stock issued and outstanding as of January 17, 2023.

 

  (3) Includes 100,000,000 shares of our Common Stock issuable upon conversion of our Series A preferred stock.

 

  (4) 2329 N. Career Avenue, Suite 317, Sioux Falls, South Dakota 57107

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

Not applicable.

 

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

Audit Fees

 

For the Company’s fiscal years ended October 31, 2022 and 2021, we were billed or expect to be billed approximately $32,700 and $23,000, respectively, for professional services rendered for the audit and quarterly reviews of our financial statements by BF Borgers CPA , respectively.

  

11

 

 

Audit Related Fees

 

There were no fees for audit related services rendered by our independent auditors for the years ended October 31, 2022 and 2021.

 

Tax Fees

 

For our fiscal years ended October 31, 2022 and 2021, there were no fees for professional services rendered by our independent auditors for tax compliance, tax advice, and tax planning.

 

All Other Fees

 

For our fiscal years ended October 31, 2022 and 2021, there were no other fees incurred.

 

Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Auditors

 

Given the small size of our Board as well as the limited activities of our Company, our Board acts as our Audit Committee. Our Board pre-approves all audit and permissible non-audit services. These services may include audit services, audit-related services, tax services, and other services. Our Board approves these services on a case-by-case basis.

  

12

 

 

PART IV

 

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 

31.1 Certification of Chief Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act
   
31.2 Certification of Chief Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act
   
32.1 Certification of Chief Executive Officer and Chief Financial Officer Under Section 1350 as Adopted Pursuant Section 906 of the Sarbanes-Oxley Act

 

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13

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) 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. 

 

  ARAX HOLDINGS CORP.
     
Dated: February 9, 2023 By: /s/ Ockert Loubser
   

Ockert Loubser 

Chief Executive Officer 

(Principal Executive Officer) 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

SIGNATURE   TITLE   DATE
         
/s/ Ockert Loubser   Chief Executive Officer
(Principal Executive Officer)
  February 9, 2023
Ockert Loubser        
         
/s/ Christopher D. Strachan   Chief Financial Officer
(Principal Financial and Accounting Officer)
  February 9, 2023
Christopher D. Strachan        
         
/s/ Michael Loubser   Chairman   February 9, 2023
Michael Loubser        

 

14

EX-31.1 2 g083369_ex31-1.htm EXHIBIT 31.1

 

Exhibit 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

 

I, Ockert Loubser, certify that:

 

1. I have reviewed this annual report on Form 10-K of Arax Holdings Corp, 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 registrant as of, and for, the periods presented in this report;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Dated: February 9, 2023

By: /s/ Ockert Loubser
   

Ockert Loubser 

Chief Executive Officer 

(Principal Executive Officer) 

 

 

EX-31.2 3 g083369_ex31-2.htm EXHIBIT 31.2

 

Exhibit 31.2

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

 

I, Christopher D. Strachan, certify that:

 

1. I have reviewed this annual report on Form 10-K of Arax Holdings Corp, 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 registrant as of, and for, the periods presented in this report;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Dated: February 9, 2023

By: /s/ Christopher D. Strachan
   

Christopher D. Strachan

Chief Financial Officer

(Principal Financial Officer)

 

 

EX-32.1 4 g083369_ex32-1.htm EXHIBIT 32.1

 

 Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, 

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the annual report of Arax Holdings Corp, Inc. (the “Company”) on Form 10-K for the fiscal year ended October 31, 2022, as filed with the Securities and Exchange Commission on the date hereof, I, Ockert Loubser, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

  1. The annual report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

 

  2. The information contained in the annual report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Ockert Loubser  
Ockert Loubser  
Chief Executive Officer  
(Principal Executive Officer)  

 

Dated: February 9, 2023

 

In connection with the annual report of Arax Holdings Corp, Inc. (the “Company”) on Form 10-K for the fiscal year ended October 31, 2022, as filed with the Securities and Exchange Commission on the date hereof, I, Christopher D. Strachan, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

  1. The annual report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

 

  2. The information contained in the annual report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Christopher D. Strachan  
Christopher D. Strachan  
Chief Financial Officer  
(Principal Financial Officer)  

 

Dated: February 9, 2023

 

 

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STATEMENT OF OPERATIONS - USD ($)
12 Months Ended
Oct. 31, 2022
Oct. 31, 2021
Income Statement [Abstract]    
Revenue
Operating expenses:    
Administrative expenses 73,613 26,012
Administrative expenses -related party 75,000 105,775
Total operating expenses 148,613 131,787
Loss from operations (148,613) (131,787)
Other expense    
Other (expense) net
Loss before provision for income taxes (148,613) (131,787)
Provision for income taxes
Net loss $ (148,613) $ (131,787)
Basic and diluted loss per common share $ (0.01) $ (0.01)
Weighted average number of shares outstanding 10,335,294 10,335,294
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.22.4
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Oct. 31, 2019 $ 10,335 $ 588,271 $ (598,606)
Beginning balance (in shares) at Oct. 31, 2019 10,335,294      
Net loss
Ending balance, value at Oct. 31, 2020 $ 10,335 588,271 (598,606)
Ending Balance (in shares) at Oct. 31, 2020 10,335,294      
Net loss (131,787) (131,787)
Issuance of preferred stock and forgiveness of debt treated as a capital contribution $ 10,000 90,000 100,000
Issuance of preferred stock and forgiveness of debt treated as a capital contribution (in shares) 10,000,000        
Forgiveness of debt treated as a capital contribution 5,775 5,775
Ending balance, value at Oct. 31, 2021 $ 10,000 $ 10,335 684,046 (730,393) (26,012)
Ending Balance (in shares) at Oct. 31, 2021 10,000,000 10,335,294      
Net loss (148,613) (148,613)
Ending balance, value at Oct. 31, 2022 $ 10,000 $ 10,335 $ 684,046 $ (879,006) $ (174,625)
Ending Balance (in shares) at Oct. 31, 2022 10,000,000 10,335,294      
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.22.4
STATEMENT OF CASH FLOWS - USD ($)
12 Months Ended
Oct. 31, 2022
Oct. 31, 2021
Cash flows from operating activities:    
Net loss $ (148,613) $ (131,787)
Adjustments to reconcile net loss to net cash used by operating activities:    
Stock based compensation 83,834
Expenses paid by related party 45,894 11,862
Changes in operating assets and liabilities:    
Increase in accrued expenses 102,719 14,150
Net cash used by operating activities (21,941)
Cash flows from investing activities:
Cash flows from financing activities:    
Proceeds from related party notes 21,941
Net cash provided by financing activities 21,941
Net increase (decrease) in cash
Cash at the beginning of the period
Cash at the end of the period
Supplemental disclosures of cash flow information:    
Cash paid during the period for interest
Cash paid during the period for income taxes
Related party debt settled with preferred stock 16,166
Forgiveness of related party debt credited to paid in capital $ 5,775
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.22.4
ORGANIZATION AND DESCRIPTION OF BUSINESS
12 Months Ended
Oct. 31, 2022
Accounting Policies [Abstract]  
ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Arax Holdings Corp. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of Nevada on February 23, 2012 with a business plan to sell hot dogs from mobile hot dog stands throughout the major cities in Mexico. As of the filing of the 10K for 2016, the Company stated that it was re-evaluating its business plan.

 

It was further indicated as possible that a new business model could be related to a new business sector other than the food sector, and that any new business model could entail a capital restructuring of the Company in order to provide new capital and a broader base of shareholders. Such a capital restructuring of the Company could involve a merger or acquisition of assets through various techniques, including a possible reverse-merger. On October 31, 2016 management believed that the best business model for our investors is to pursue business activity in the Life Sciences sector of the United States and possibly internationally.

 

The Company had been dormant from September 28, 2017 to October 31, 2020.

 

On December 30, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-825346-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of the Company. On the same date, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.

 

On June 24, 2021, as a result of a private transaction, 10,000,000 shares of Series A Preferred Stock, $0.001 par value per share (the “Shares”) of Arax Holdings Corp., a Nevada corporation (the “Company”), were transferred from Custodian Ventures, LLC to Michael Pieter Loubser (the “Purchaser”). As a result, the Purchaser became an approximately 90.6% holder of the voting rights of the issued and outstanding share capital of the Company on a fully-diluted basis of the Company, and became the controlling shareholder. In connection with the transaction, David Lazar released the Company from all debts owed to him and/or Custodian Ventures, LLC.

 

On June 24, 2021, the existing director and officer resigned immediately. Accordingly, David Lazar, serving as a director and an officer, ceased to be the Company’s Chief Executive Officer, Chief Financial Officer, President, Treasurer, Secretary and a Director. At the effective date of the transfer, Michael Pieter Loubser consented to act as the new Chairman of the Board of Directors of the Company, Ockert Cornelius Loubser consented to act as the new Chief Executive Officer of the Company, and Rastislav Vašička consented to act as the new Chief Information Officer of the Company.

 

On August 31st, 2021, the Company appointed Christopher D. Strachan as its Chief Financial Officer. The Company began a transition into a software and technology holding company, negotiating agreements with various technology companies in Europe to acquire some of their related assets. The Company has removed the shell status and has commenced operations. As of the date of this Report, our management has had discussions with representatives of many other entity regarding a potential business combination. These negotiations have led the Company to enter into a Binding Letter of Intent and Deal Terms for the acquisition of certain IP and technologies together with some liabilities for the purpose of expanding operations and bringing further value to shareholders

 

The Company has no employment contracts with any of its officers.

 

COVID-19

 

On March 11, 2020, the World Health Organization (“WHO”) declared the Covid-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease.

 

Covid-19 and the U.S’s response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the Covid-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business, or our operations.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Oct. 31, 2022
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) “FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. 

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of October 31, 2021, the Company had a working capital deficit of $26,012 and an accumulated deficit of $730,393.

 

Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. The Company is currently being funded by a company related to Michael Pieter Loubser. The Company will be required to continue to rely on this entity until its operations become profitable.

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

 

Cash and cash equivalents

 

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents.

 

Income taxes

 

The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Under FASB ASC 740, 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. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities.

 

The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit.

 

Stock-based Compensation

 

The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

 

Net Loss per Share

 

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has 100,000,000 and 0 shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the years ended October 31, 2021 and 2020, respectively.

 

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.22.4
EQUITY
12 Months Ended
Oct. 31, 2022
Equity [Abstract]  
EQUITY

NOTE 3 – EQUITY

 

Common Stock

 

The Company has authorized 75,000,000 shares of $0.001 par value, common stock. As of October 31, 2022 and 2021 there were 10,335,294 shares of common stock issued and outstanding.

 

Preferred Stock

 

On March 31, 2021 the Company took a corporate action and authorized 10,000,000 shares of Series A Preferred Stock with a par value of $0.001. These shares which are convertible into common stock on a 10 for 1 basis, were awarded to Custodian Ventures managed by David Lazar in recognition of importance of Mr. Lazar ’s experience and expertise in devising a strategic plan to enable the Company to become a viable operating entity, and the fact that Mr. Lazar has provided the Company with its only source of liquidity via interest-free loans. These shares of Series A Preferred Stock in return for a reduction of $16,166 on Mr. Lazar’s loan of $21,941 due from the Company.

 

Due to the thinly traded nature of the Company’s stock and its status as a “shell”, the Company used the par value of the common stock which was determined to be $100,000 to value this issuance and recorded $16,166 for repayment of the loan and $83,834 as share-based compensation in the Company’s Statements of Operations.

 

On June 24, 2021, as a result of a private transaction, the 10,000,000 shares of Series A Preferred Stock were transferred from Custodian Ventures, LLC to Michael Pieter Loubser.

 

No transactions were recorded for the fiscal year ended October 31, 2022

 

Liquidation Preference

 

In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, subject to the rights of any existing series of Preferred Stock or to the rights of any series of Preferred Stock which may from time to time hereafter come into existence, the holders of the Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any of the assets of the Corporation to the holders of Common Stock by reason of their ownership thereof, an amount per share equal to the price per share actually paid to the Corporation upon the initial issuance of the Series A Preferred Stock (each, the “the Original Issue Price”) for each share of Series A Preferred Stock then held by them, plus declared but unpaid dividends. Unless the Corporation can establish a different Original Issue Price in connection with a particular sale of Series A Preferred Stock, the Original Issue Price shall be $0.001per share for the Series A Preferred Stock. If, upon the occurrence of any liquidation, dissolution or winding up of the Corporation, the assets and funds thus distributed among the holders of the Series A Preferred Stock shall be insufficient to permit the payment to such holders of the full aforesaid preferential amounts, then, subject to the rights of any existing series of Preferred Stock or to the rights of any series Arax Holdings Corp. Pursuant to Section 78.1955 of the Nevada Revised Statutes

  

SERIES A PREFERRED STOCK.

 

On behalf of Arax Holdings Corp., a Nevada corporation (the “Corporation”), the undersigned hereby certifies that the following resolution has been duly adopted by the board of directors of the Corporation (the “Board”): RESOLVED, that, pursuant to the authority granted to and vested in the Board by the provisions of the articles of incorporation of the Corporation (the “Articles of Incorporation”), there hereby is created, out of the Ten Million (10,000,000) shares of preferred stock, par value $0.001 per share, of the Corporation authorized by the Corporation’s Articles of Incorporation (“Preferred Stock”), Series A Preferred Stock, consisting of Ten Million (10,000,000) shares, which series shall have the following powers, designations, preferences and relative participating, optional and other special rights, and the following qualifications, limitations and restrictions: of Preferred Stock which may from time to time hereafter come into existence, the entire assets and funds of the corporation legally available for distribution shall be distributed ratably among the holders of the each series of Preferred Stock in proportion to the preferential amount each such holder is otherwise entitled to receive.

 

(b) Upon the completion of the distribution required by Section 2(a) above and any other distribution that may be required with respect to the rights of any existing series of Preferred Stock or to the rights of any series of Preferred Stock which may from time to time hereafter come into existence, if assets remain in the Corporation, the remaining assets shall be distributed to the holders of the Common Stock until such time as the holders of the Common stock shall have received a return of the capital originally contributed thereby. Thereafter, if assets remain in the Corporation, all remaining assets shall be distributed to all holders of Common Stock and to each series of Preferred Stock, pro rata based on the number of shares of Common Stock held by each (assuming conversion of all such Preferred Stock into Common Stock).

 

(c) For purposes of this Section 2, a liquidation, dissolution or winding up of the Corporation shall be deemed to be occasioned by, or to include, (i) the acquisition of the Corporation by another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Corporation); or (ii) a sale of all or substantially all of the assets of the Corporation, unless the Corporation’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Corporation’s acquisition or sale or otherwise) hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity in approximately the same relative percentages after such acquisition or sale as before such acquisition or sale.

 

(d) In any of the events specified in (c) above, if the consideration received by the corporation is other than cash, its value will be deemed its fair market value. Any securities shall be valued as follows:

 

(i) Securities not subject to investment letter or other similar restrictions on free marketability:

 

(A) If traded on a securities exchange, the value shall be deemed to be the average of the closing prices of the securities on such exchange over the thirty-day period ending three (3) days prior to the closing;

 

(B) If actively traded over-the-counter, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) over the thirty-day period ending three (3) days prior to the closing; and

 

(C) If there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Board of Directors.

 

(ii) The method of valuation of securities subject to investment letter or other restrictions on free marketability (other than restrictions arising solely by virtue of a stockholder’s status as an affiliate or former affiliate) shall be to make an appropriate discount from the market value determined as above in (i) (A), (B) or (C) to reflect the approximate fair market value thereof, as mutually determined by the Corporation and the holders of at least a majority of the voting power of all then outstanding shares of Preferred Stock.

 

(iii) In the event the requirements of Section 2(c) are not complied with, the Corporation shall forthwith either:

 

(A) cause such closing to be postponed until such time as the requirements of this Section 2 have been complied with; or

 

(B) cancel such transaction, in which event the rights, preferences and privileges of the holders of the Series A Preferred Stock shall revert to and be the same as such rights, preferences and privileges existing immediately prior to the date of the first notice referred to in Section 2(c)(iv) hereof.

 

(iv) The Corporation shall give each holder of record of Series A Preferred Stock written notice of such impending transaction not later than twenty (20) days prior to the stockholders’ meeting called to approve such transaction, or twenty (20) days prior to the closing of such transaction, whichever is earlier, and shall also notify such holders in writing of the final approval of such transaction. The first of such notices shall describe the material terms and conditions of the impending transaction and the provisions of this Section 2, and the corporation shall thereafter give such holders prompt notice of any material changes. The transaction shall in no event take place sooner than twenty (20) days after the corporation has given the first notice provided for herein or sooner than ten (10) days after the corporation has given notice of any material changes provided for herein; provided, however, that time periods set forth in this paragraph may be shortened upon the written consent of the holders of Series A Preferred Stock that are entitled to such notice rights or similar notice rights and that represent at least a majority of the voting power of all then outstanding shares of such Series A Preferred Stock.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.22.4
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Oct. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 4 – COMMITMENTS AND CONTINGENCIES

 

The Company did not have any contractual commitments of October 31, 2022 and 2021.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.22.4
NOTES PAYABLE-RELATED PARY
12 Months Ended
Oct. 31, 2022
Debt Disclosure [Abstract]  
NOTES PAYABLE-RELATED PARY

NOTE 5 – NOTES PAYABLE-RELATED PARY

 

Mr. Lazar, the principal member of the Company’s Court-appointed custodian, is considered a related party. During the three months ended April 30, 2021, Custodian Venture extended $9,220 in interest-free demand loans to the Company. As of April 30, 2021, the total amount due to Mr. Lazar amounted to $5,775. On June 24, 2021, in connection with the change of control transaction described in Note 1, Mr. Lazar forgave this amount, which has been credited to paid in capital.

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.22.4
ADVANCES FROM RELATED PARTY
12 Months Ended
Oct. 31, 2022
Related Party Transactions [Abstract]  
ADVANCES FROM RELATED PARTY

NOTE 6 – ADVANCES FROM RELATED PARTY

 

An entity controlled by the Company’s Chairman has advanced an aggregate of $57,756 to the Company as of October 31, 2022. These funds were used to pay corporate expenses of the Company, and the payments were made directly to the vendors by this entity.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.22.4
SUBSEQUENT EVENTS
12 Months Ended
Oct. 31, 2022
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 6 – SUBSEQUENT EVENTS

 

In accordance with FASB ASC 855-10, Subsequent Events, the Company has analyzed its operations subsequent to October 31, 2022, to the date these consolidated financial statements were issued.

 

On December 13, 2022 the Company entered into an agreement to purchase the assets, technology, IP, and some liabilities of Core Business Holdings which is anticipated to be completed in the second fiscal quarter of 2023.

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Oct. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) “FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. 

Going Concern

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of October 31, 2021, the Company had a working capital deficit of $26,012 and an accumulated deficit of $730,393.

 

Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. The Company is currently being funded by a company related to Michael Pieter Loubser. The Company will be required to continue to rely on this entity until its operations become profitable.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

Cash and cash equivalents

Cash and cash equivalents

 

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents.

Income taxes

Income taxes

 

The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Under FASB ASC 740, 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. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities.

 

The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit.

Stock-based Compensation

Stock-based Compensation

 

The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

Net Loss per Share

Net Loss per Share

 

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has 100,000,000 and 0 shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the years ended October 31, 2021 and 2020, respectively.

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.22.4
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - $ / shares
12 Months Ended
Jun. 24, 2021
Oct. 31, 2022
Oct. 31, 2021
Entity Incorporation, State or Country Code   NV  
Series A Preferred Stock [Member]      
Issuance of preferred stock and forgiveness of debt treated as a capital contribution, Shares 10,000,000    
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001 $ 0.001
Series A Preferred Stock [Member] | Investment [Member]      
Transfer of ownership to the purchaser 90.60%    
Arax Holdings Corp [Member]      
Entity Incorporation, State or Country Code   NV  
Entity incorporation date   Feb. 23, 2012  
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
12 Months Ended
Oct. 31, 2021
Oct. 31, 2020
Oct. 31, 2022
Accounting Policies [Abstract]      
Working capital deficit $ 26,012    
Accumulated deficit $ 730,393   $ 879,006
Cash     $ 0
Antidilutive securities excluded 100,000,000 0  
XML 26 R17.htm IDEA: XBRL DOCUMENT v3.22.4
EQUITY (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Jun. 24, 2021
Mar. 31, 2021
Apr. 30, 2021
Oct. 31, 2022
Oct. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Common stock, shares authorized       75,000,000 75,000,000
Common stock, par or stated value per share       $ 0.001 $ 0.001
Common stock, shares, outstanding       10,335,294 10,335,294
Common stock, shares, issued       10,335,294 10,335,294
Common stock issued for loan repayment and compensation expenses       $ 100,000  
Repayments of debt         $ 16,166
Stock-based compensation expense         83,834
Mr Lazar [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Proceeds from notes payable     $ 9,220   $ 21,941
Series A Preferred Stock [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Preferred stock, authorized       10,000,000 10,000,000
Preferred stock, par value (in dollars per share) $ 0.001     $ 0.001 $ 0.001
Series A Preferred Stock [Member] | Related Party Transactions [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Common stock conversion basis   10 for 1      
Proceeds from notes payable   $ 16,166      
Series A Preferred Stock [Member] | Michael Pieter Loubser [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Number of shares issued 10,000,000        
Common Stock [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Common stock, shares authorized       75,000,000 75,000,000
Common stock, par or stated value per share       $ 0.001 $ 0.001
Common stock, shares, outstanding       10,335,294 10,335,294
Common stock, shares, issued       10,335,294 10,335,294
Preferred Stock [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Preferred stock, authorized   10,000,000      
Preferred stock, par value (in dollars per share)   $ 0.001      
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.22.4
NOTES PAYABLE-RELATED PARY (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Apr. 30, 2021
Oct. 31, 2021
Defined Benefit Plan Disclosure [Line Items]    
Due to related party $ 5,775  
Mr Lazar [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Proceeds from notes payable $ 9,220 $ 21,941
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.22.4
ADVANCES FROM RELATED PARTY (Details Narrative)
Oct. 31, 2022
USD ($)
Related Party Transactions [Abstract]  
Advance $ 57,756
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NV 99-0376721 30 North Gould Street Sheridan WY 82801 850 254-1161 No No Yes Yes Non-accelerated Filer true false false 1050882 10335294 BF Borgers CPA PC 5041 Lakewood, CO 116869 14150 57756 11862 174625 26012 174625 26012 0.001 0.001 10000000 10000000 10000000 10000000 0 0 10000 10000 0.001 0.001 75000000 75000000 10335294 10335294 10335294 10335294 10335 10335 684046 684046 -879006 -730393 -174625 -26012 73613 26012 75000 105775 148613 131787 -148613 -131787 -148613 -131787 -148613 -131787 -0.01 -0.01 10335294 10335294 10335294 10335 588271 -598606 10335294 10335 588271 -598606 10335294 10335 588271 -598606 10000000 10000 90000 100000 5775 5775 -131787 -131787 10000000 10000 10335294 10335 684046 -730393 -26012 10000000 10000 10335294 10335 684046 -730393 -26012 -148613 -148613 10000000 10000 10335294 10335 684046 -879006 -174625 -148613 -131787 83834 -45894 -11862 102719 14150 -21941 21941 21941 16166 5775 <p id="xdx_800_eus-gaap--BusinessDescriptionAndBasisOfPresentationTextBlock_zAuPVP3FEuY1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_829_zz06PC5HsoDf">ORGANIZATION AND DESCRIPTION OF BUSINESS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Arax Holdings Corp. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of <span id="xdx_90B_edei--EntityIncorporationStateCountryCode_c20211101__20221031__srt--OwnershipAxis__custom--AraxHoldingsCorpMember_z9lKy0hs4Hmb">Nevada</span> on <span id="xdx_903_edei--EntityIncorporationDateOfIncorporation_dd_c20211101__20221031__srt--OwnershipAxis__custom--AraxHoldingsCorpMember_zEdE3Jkqsnlj" title="Entity incorporation date">February 23, 2012</span> with a business plan to sell hot dogs from mobile hot dog stands throughout the major cities in Mexico. As of the filing of the 10K for 2016, the Company stated that it was re-evaluating its business plan.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">It was further indicated as possible that a new business model could be related to a new business sector other than the food sector, and that any new business model could entail a capital restructuring of the Company in order to provide new capital and a broader base of shareholders. Such a capital restructuring of the Company could involve a merger or acquisition of assets through various techniques, including a possible reverse-merger. On October 31, 2016 management believed that the best business model for our investors is to pursue business activity in the Life Sciences sector of the United States and possibly internationally.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company had been dormant from September 28, 2017 to October 31, 2020.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 30, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-825346-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of the Company. On the same date, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 24, 2021, as a result of a private transaction, <span id="xdx_90D_ecustom--IssuanceOfPreferredStockAndForgivenesOfDebtTreatedAsCapitalContributionShares_pid_uShares_c20210620__20210624__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_znzT47iX8CV3" title="Issuance of preferred stock and forgiveness of debt treated as a capital contribution, Shares">10,000,000</span> shares of Series A Preferred Stock, $<span id="xdx_90E_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20210624__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zYWeL1fOZt7k" title="Preferred stock, par value (in dollars per share)">0.001</span> par value per share (the “Shares”) of Arax Holdings Corp., a Nevada corporation (the “Company”), were transferred from Custodian Ventures, LLC to Michael Pieter Loubser (the “Purchaser”). As a result, the Purchaser became an approximately <span id="xdx_909_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20210624__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--InvestmentMember_z7MEbDVN9DMh" title="Transfer of ownership to the purchaser">90.6</span>% holder of the voting rights of the issued and outstanding share capital of the Company on a fully-diluted basis of the Company, and became the controlling shareholder. In connection with the transaction, David Lazar released the Company from all debts owed to him and/or Custodian Ventures, LLC.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 24, 2021, the existing director and officer resigned immediately. Accordingly, David Lazar, serving as a director and an officer, ceased to be the Company’s Chief Executive Officer, Chief Financial Officer, President, Treasurer, Secretary and a Director. At the effective date of the transfer, Michael Pieter Loubser consented to act as the new Chairman of the Board of Directors of the Company, Ockert Cornelius Loubser consented to act as the new Chief Executive Officer of the Company, and Rastislav Vašička consented to act as the new Chief Information Officer of the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 10pt">On August 31st, 2021, the Company appointed Christopher D. Strachan as its Chief Financial Officer. The Company began a transition into a software and technology holding company, negotiating agreements with various technology companies in Europe to acquire some of their related assets. The Company has removed the shell status and has commenced operations. As of the date of this Report, our management has had discussions with representatives of many other entity regarding a potential business combination. These negotiations have led the Company to enter into a Binding Letter of Intent and Deal Terms for the acquisition of certain IP and technologies together with some liabilities for the purpose of expanding operations and bringing further value to shareholders</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"/></p> <p style="margin: 0"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has no employment contracts with any of its officers.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><span style="text-decoration: underline">COVID-19</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 11, 2020, the World Health Organization (“WHO”) declared the Covid-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Covid-19 and the U.S’s response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the Covid-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business, or our operations.</p> NV 2012-02-23 10000000 0.001 0.906 <p id="xdx_80F_eus-gaap--SignificantAccountingPoliciesTextBlock_zIXyiEVLAw4l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 2 – <span id="xdx_82B_zvzwZp4sM3Cl">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_840_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zXGiM5yGQj8j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_860_zCuLKUPdQFGh">Basis of Presentation</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“<span style="text-decoration: underline">FASB</span>”) “FASB Accounting Standard Codification™” (the “<span style="text-decoration: underline">Codification</span>”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“<span style="text-decoration: underline">GAAP</span>”) in the United States. </p> <p id="xdx_855_zKIW1TwTUbLk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84C_ecustom--GoingConcernPolicyTextBlock_zljoa9T58nzb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_zjRfhJzjqA9j">Going Concern</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of October 31, 2021, the Company had a working capital deficit of $<span id="xdx_909_ecustom--WorkingCapitalDeficit_iI_uUSD_c20211031_zmtstYPh0TZ1" title="Working capital deficit">26,012</span> and an accumulated deficit of $<span id="xdx_907_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_di_uUSD_c20211031_zt30QeoErL9" title="Accumulated deficit">730,393</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. The Company is currently being funded by a company related to Michael Pieter Loubser. The Company will be required to continue to rely on this entity until its operations become profitable.</p> <p id="xdx_853_zi1wX8E3WSx9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_848_eus-gaap--UseOfEstimates_zzxDJqyi9OBd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_861_z4I61iv8jNL6">Use of Estimates</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.</p> <p id="xdx_853_zngbogLt3z0k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zXphDZSULRy2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_zS2D9KAekmfd">Cash and cash equivalents</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has <span id="xdx_90E_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20221031_zubKIxnLg0Xc" title="Cash">no</span> cash equivalents.</p> <p id="xdx_85D_zye7C3d47zXg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_842_eus-gaap--IncomeTaxPolicyTextBlock_zkq9bFTvDzdg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_868_zOyuImYnKkx6">Income taxes</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Under FASB ASC 740, 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. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit.</p> <p id="xdx_855_zxbOFRiudpOb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_846_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zUlqj4TVGOHj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_z0u3Fo093AQ7">Stock-based Compensation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.</p> <p id="xdx_851_zq15BpDmi6sa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--EarningsPerSharePolicyTextBlock_zlja1jK972Tf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_860_z5ZYUxxFGOgj">Net Loss per Share</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_uShares_c20201101__20211031_zw8SnnIpLltg" title="Antidilutive securities excluded">100,000,000</span> and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_dn_uShares_c20191101__20201031_zdbnFve7pD0h">0</span> shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the years ended October 31, 2021 and 2020, respectively.</p> <p id="xdx_857_zjc7642NyIn8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_840_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zXGiM5yGQj8j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_860_zCuLKUPdQFGh">Basis of Presentation</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“<span style="text-decoration: underline">FASB</span>”) “FASB Accounting Standard Codification™” (the “<span style="text-decoration: underline">Codification</span>”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“<span style="text-decoration: underline">GAAP</span>”) in the United States. </p> <p id="xdx_84C_ecustom--GoingConcernPolicyTextBlock_zljoa9T58nzb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_zjRfhJzjqA9j">Going Concern</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of October 31, 2021, the Company had a working capital deficit of $<span id="xdx_909_ecustom--WorkingCapitalDeficit_iI_uUSD_c20211031_zmtstYPh0TZ1" title="Working capital deficit">26,012</span> and an accumulated deficit of $<span id="xdx_907_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_di_uUSD_c20211031_zt30QeoErL9" title="Accumulated deficit">730,393</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. The Company is currently being funded by a company related to Michael Pieter Loubser. The Company will be required to continue to rely on this entity until its operations become profitable.</p> 26012 -730393 <p id="xdx_848_eus-gaap--UseOfEstimates_zzxDJqyi9OBd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_861_z4I61iv8jNL6">Use of Estimates</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.</p> <p id="xdx_841_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zXphDZSULRy2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_zS2D9KAekmfd">Cash and cash equivalents</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has <span id="xdx_90E_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20221031_zubKIxnLg0Xc" title="Cash">no</span> cash equivalents.</p> 0 <p id="xdx_842_eus-gaap--IncomeTaxPolicyTextBlock_zkq9bFTvDzdg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_868_zOyuImYnKkx6">Income taxes</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Under FASB ASC 740, 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. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit.</p> <p id="xdx_846_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zUlqj4TVGOHj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_z0u3Fo093AQ7">Stock-based Compensation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.</p> <p id="xdx_84A_eus-gaap--EarningsPerSharePolicyTextBlock_zlja1jK972Tf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_860_z5ZYUxxFGOgj">Net Loss per Share</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_uShares_c20201101__20211031_zw8SnnIpLltg" title="Antidilutive securities excluded">100,000,000</span> and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_dn_uShares_c20191101__20201031_zdbnFve7pD0h">0</span> shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the years ended October 31, 2021 and 2020, respectively.</p> 100000000 0 <p id="xdx_808_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_z4doXTn8XLu5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 3 –<span id="xdx_828_zz1U4p3U2OMe"> EQUITY</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><span style="text-decoration: underline">Common Stock</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has authorized <span id="xdx_906_eus-gaap--CommonStockSharesAuthorized_iI_pid_uShares_c20221031__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z5QJpZFeYjfe" title="Common stock, shares authorized"><span id="xdx_90C_eus-gaap--CommonStockSharesAuthorized_iI_pid_uShares_c20211031__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z78jkwOq20Gj" title="Common stock, shares authorized">75,000,000</span></span> shares of $<span id="xdx_906_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20221031__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zD1SCQU0ZW23" title="Common stock, par or stated value per share"><span id="xdx_90A_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20211031__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zNCO9zRpGbPg" title="Common stock, par or stated value per share">0.001</span></span> par value, common stock. As of October 31, 2022 and 2021 there were <span id="xdx_90F_eus-gaap--CommonStockSharesOutstanding_iI_pid_uShares_c20221031__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zVx1fhLQ9qId" title="Common stock, shares, outstanding"><span id="xdx_90A_eus-gaap--CommonStockSharesOutstanding_iI_pid_uShares_c20211031__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z53UVVlFeRw8" title="Common stock, shares, outstanding"><span id="xdx_901_eus-gaap--CommonStockSharesIssued_iI_pid_uShares_c20221031__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z09VkqLayAI3" title="Common stock, shares, issued"><span id="xdx_907_eus-gaap--CommonStockSharesIssued_iI_pid_uShares_c20211031__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zitr5Oh22i4k" title="Common stock, shares, issued">10,335,294</span></span></span></span> shares of common stock issued and outstanding.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><span style="text-decoration: underline">Preferred Stock</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 31, 2021 the Company took a corporate action and authorized <span id="xdx_905_eus-gaap--PreferredStockSharesAuthorized_iI_pid_uShares_c20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember_zBtmQ6XH0Pxa" title="Preferred stock, authorized">10,000,000</span> shares of Series A Preferred Stock with a par value of $<span id="xdx_904_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember_zakCgDMr6Epg" title="Preferred stock, par value (in dollars per share)">0.001</span>. These shares which are convertible into common stock on a <span id="xdx_902_eus-gaap--CommonStockConversionBasis_c20210328__20210331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedPartyTransactionsMember_zqD4KQTURScl" title="Common stock conversion basis">10 for 1</span> basis, were awarded to Custodian Ventures managed by David Lazar in recognition of importance of Mr. Lazar ’s experience and expertise in devising a strategic plan to enable the Company to become a viable operating entity, and the fact that Mr. Lazar has provided the Company with its only source of liquidity via interest-free loans. These shares of Series A Preferred Stock in return for a reduction of $<span id="xdx_901_eus-gaap--ProceedsFromNotesPayable_c20210328__20210331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedPartyTransactionsMember_zeOCoOPgmzqg" title="Proceeds from notes payable">16,166</span> on Mr. Lazar’s loan of $<span id="xdx_905_eus-gaap--ProceedsFromNotesPayable_uUSD_c20201101__20211031__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrLazarMember_zeMoc4QHPJqj" title="Proceeds from notes payable">21,941</span> due from the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the thinly traded nature of the Company’s stock and its status as a “shell”, the Company used the par value of the common stock which was determined to be $<span id="xdx_901_ecustom--CommonStockIssuedForLoanAndCompensationExpenses_uUSD_c20211101__20221031_zhYYwNx6WXsi" title="Common stock issued for loan repayment and compensation expenses">100,000</span> to value this issuance and recorded $<span id="xdx_904_eus-gaap--RepaymentsOfDebt_c20201101__20211031_z4pclwY2N6q6" title="Repayments of debt">16,166</span> for repayment of the loan and $<span id="xdx_903_eus-gaap--ShareBasedCompensation_c20201101__20211031_z1mm9PqetNEi" title="Stock-based compensation expense">83,834</span> as share-based compensation in the Company’s Statements of Operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 24, 2021, as a result of a private transaction, the <span id="xdx_905_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_uShares_c20210622__20210624__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelPieterLoubserMember_zCD2xKEcAub3" title="Number of shares issued">10,000,000</span> shares of Series A Preferred Stock were transferred from Custodian Ventures, LLC to Michael Pieter Loubser.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No transactions were recorded for the fiscal year ended October 31, 2022</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i><span style="text-decoration: underline">Liquidation Preference</span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, subject to the rights of any existing series of Preferred Stock or to the rights of any series of Preferred Stock which may from time to time hereafter come into existence, the holders of the Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any of the assets of the Corporation to the holders of Common Stock by reason of their ownership thereof, an amount per share equal to the price per share actually paid to the Corporation upon the initial issuance of the Series A Preferred Stock (each, the “the Original Issue Price”) for each share of Series A Preferred Stock then held by them, plus declared but unpaid dividends. Unless the Corporation can establish a different Original Issue Price in connection with a particular sale of Series A Preferred Stock, the Original Issue Price shall be $0.001per share for the Series A Preferred Stock. If, upon the occurrence of any liquidation, dissolution or winding up of the Corporation, the assets and funds thus distributed among the holders of the Series A Preferred Stock shall be insufficient to permit the payment to such holders of the full aforesaid preferential amounts, then, subject to the rights of any existing series of Preferred Stock or to the rights of any series Arax Holdings Corp. Pursuant to Section 78.1955 of the Nevada Revised Statutes</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SERIES A PREFERRED STOCK.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On behalf of Arax Holdings Corp., a Nevada corporation (the “Corporation”), the undersigned hereby certifies that the following resolution has been duly adopted by the board of directors of the Corporation (the “Board”): RESOLVED, that, pursuant to the authority granted to and vested in the Board by the provisions of the articles of incorporation of the Corporation (the “Articles of Incorporation”), there hereby is created, out of the Ten Million (10,000,000) shares of preferred stock, par value $0.001 per share, of the Corporation authorized by the Corporation’s Articles of Incorporation (“Preferred Stock”), Series A Preferred Stock, consisting of Ten Million (10,000,000) shares, which series shall have the following powers, designations, preferences and relative participating, optional and other special rights, and the following qualifications, limitations and restrictions: of Preferred Stock which may from time to time hereafter come into existence, the entire assets and funds of the corporation legally available for distribution shall be distributed ratably among the holders of the each series of Preferred Stock in proportion to the preferential amount each such holder is otherwise entitled to receive.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(b) Upon the completion of the distribution required by Section 2(a) above and any other distribution that may be required with respect to the rights of any existing series of Preferred Stock or to the rights of any series of Preferred Stock which may from time to time hereafter come into existence, if assets remain in the Corporation, the remaining assets shall be distributed to the holders of the Common Stock until such time as the holders of the Common stock shall have received a return of the capital originally contributed thereby. Thereafter, if assets remain in the Corporation, all remaining assets shall be distributed to all holders of Common Stock and to each series of Preferred Stock, <i>pro rata</i> based on the number of shares of Common Stock held by each (assuming conversion of all such Preferred Stock into Common Stock).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(c) For purposes of this Section 2, a liquidation, dissolution or winding up of the Corporation shall be deemed to be occasioned by, or to include, (i) the acquisition of the Corporation by another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Corporation); or (ii) a sale of all or substantially all of the assets of the Corporation, unless the Corporation’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Corporation’s acquisition or sale or otherwise) hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity in approximately the same relative percentages after such acquisition or sale as before such acquisition or sale.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(d) In any of the events specified in (c) above, if the consideration received by the corporation is other than cash, its value will be deemed its fair market value. Any securities shall be valued as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(i) Securities not subject to investment letter or other similar restrictions on free marketability:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(A) If traded on a securities exchange, the value shall be deemed to be the average of the closing prices of the securities on such exchange over the thirty-day period ending three (3) days prior to the closing;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(B) If actively traded over-the-counter, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) over the thirty-day period ending three (3) days prior to the closing; and</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(C) If there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Board of Directors.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(ii) The method of valuation of securities subject to investment letter or other restrictions on free marketability (other than restrictions arising solely by virtue of a stockholder’s status as an affiliate or former affiliate) shall be to make an appropriate discount from the market value determined as above in (i) (A), (B) or (C) to reflect the approximate fair market value thereof, as mutually determined by the Corporation and the holders of at least a majority of the voting power of all then outstanding shares of Preferred Stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(iii) In the event the requirements of Section 2(c) are not complied with, the Corporation shall forthwith either:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(A) cause such closing to be postponed until such time as the requirements of this Section 2 have been complied with; or</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(B) cancel such transaction, in which event the rights, preferences and privileges of the holders of the Series A Preferred Stock shall revert to and be the same as such rights, preferences and privileges existing immediately prior to the date of the first notice referred to in Section 2(c)(iv) hereof.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(iv) The Corporation shall give each holder of record of Series A Preferred Stock written notice of such impending transaction not later than twenty (20) days prior to the stockholders’ meeting called to approve such transaction, or twenty (20) days prior to the closing of such transaction, whichever is earlier, and shall also notify such holders in writing of the final approval of such transaction. The first of such notices shall describe the material terms and conditions of the impending transaction and the provisions of this Section 2, and the corporation shall thereafter give such holders prompt notice of any material changes. The transaction shall in no event take place sooner than twenty (20) days after the corporation has given the first notice provided for herein or sooner than ten (10) days after the corporation has given notice of any material changes provided for herein; provided, however, that time periods set forth in this paragraph may be shortened upon the written consent of the holders of Series A Preferred Stock that are entitled to such notice rights or similar notice rights and that represent at least a majority of the voting power of all then outstanding shares of such Series A Preferred Stock.</p> 75000000 75000000 0.001 0.001 10335294 10335294 10335294 10335294 10000000 0.001 10 for 1 16166 21941 100000 16166 83834 10000000 <p id="xdx_806_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zb5Ayo286xWa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 4 – <span id="xdx_82F_zx99EzOZBEd6">COMMITMENTS AND CONTINGENCIES</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company did not have any contractual commitments of October 31, 2022 and 2021.</p> <p id="xdx_80D_eus-gaap--DebtDisclosureTextBlock_zIYcl5blJ461" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 5 – <span id="xdx_820_zPgkGeN21CNd">NOTES PAYABLE-RELATED PARY</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Lazar, the principal member of the Company’s Court-appointed custodian, is considered a related party. During the three months ended April 30, 2021, Custodian Venture extended $<span id="xdx_903_eus-gaap--ProceedsFromNotesPayable_uUSD_c20210201__20210430__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrLazarMember_zii8Mv6eTNB5" title="Proceeds from notes payable">9,220</span> in interest-free demand loans to the Company. As of April 30, 2021, the total amount due to Mr. Lazar amounted to $<span id="xdx_90F_eus-gaap--NotesPayableRelatedPartiesClassifiedCurrent_iI_uUSD_c20210430_zCD3CIMOkgyi" title="Due to related party">5,775</span>. On June 24, 2021, in connection with the change of control transaction described in Note 1, Mr. Lazar forgave this amount, which has been credited to paid in capital.</p> 9220 5775 <p id="xdx_80F_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zobmSZg3m6u2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 6 – <span id="xdx_829_zWIemFRqRox3">ADVANCES FROM RELATED PARTY</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An entity controlled by the Company’s Chairman has advanced an aggregate of $<span id="xdx_90B_eus-gaap--RelatedPartyTransactionDueFromToRelatedParty_iI_uUSD_c20221031_zMiSk4VhyFA1" title="Advance">57,756</span> to the Company as of October 31, 2022. These funds were used to pay corporate expenses of the Company, and the payments were made directly to the vendors by this entity.</p> 57756 <p id="xdx_808_eus-gaap--SubsequentEventsTextBlock_zkwPLmTE8xW" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 6 – <span id="xdx_82B_zBDXjoPoghEl">SUBSEQUENT EVENTS</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with FASB ASC 855-10, <i>Subsequent Events</i>, the Company has analyzed its operations subsequent to October 31, 2022, to the date these consolidated financial statements were issued.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 13, 2022 the Company entered into an agreement to purchase the assets, technology, IP, and some liabilities of Core Business Holdings which is anticipated to be completed in the second fiscal quarter of 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/> EXCEL 30 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0 ( ,>"258'04UB@0 +$ 0 9&]C4')O<',O87!P+GAM M;$V./0L",1!$_\IQO;=!P4)B0-!2L+(/>QLOD&1#LD)^OCG!CVX>;QA&WPIG M*N*I#BV&5(_C(I(/ !47BK9.7:=N')=HI6-Y #OGDK7A.YNJQ<&4GPZ4A!0W_J=0U[R;UEA_6\#MI7E!+ P04 M " #'@DE6GT!PN>T K @ $0 &1O8U!R;W!S+V-O&ULS9+! 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