NOTE 16 – BUSINESS COMBINATION

The Merger Agreement will be accounted for as a reverse acquisition in accordance with the Financial Accounting Standards Board (ASC 805, Business Combinations). Quanta management has evaluated the guidance contained in ASC 805 with respect to the identification of the acquirer in the Merger Agreement and concluded, based on a consideration of the pertinent facts and circumstances, Bioanomaly will have acquired Freight Solution, for financial accounting purposes. Accordingly, the Merger Agreement has been accounted for in the unaudited pro forma combined financial statements as a continuation of the financial statements of Quanta together with an exchange of shares of Freight Solution, and certain former shareholders of Freight Solution continue in their ownership of Freight Solution along and a re-capitalization of the equity of Freight Solution

(1)

Certain assets and liabilities of Freight Solution, Inc. were assumed by Quanta as part of the merger for the period ending July 31, 3018 such as cash and cash equivalents in the amount of $86; prepaid expense in the amount of $54, and; intangible assets, net in the amount of $0 (note intangible assets were sold for settlement of accounts payable of $15,000, recognizing a gain on sale of $15,000.

(2)

Our founder, a former officer and former director, in connection with the change in control of the Company guaranteed and negotiated the settlement of certain outstanding debts resulting in forgiveness of that debt; total debt forgiveness was approximately $265,538 ; recognized gain on the sale of intangible assets of $15,000 in a reduction accounts payable through a sale of the intangible asset; and $28 in bank service charges and fees.

(3)

Elimination of common stock of $25,900 offset against paid in capital, and elimination of accumulated deficit of Freight Solution, Inc. of ($337,569).

(4)

The Company recognized paid in capital through the issuance of common stock through the merger of $15,900 recorded at par value to Bioanomaly along with par value officer services provided for common stock of $12,129, and derivative liabilities associated with our convertible notes payable of $3,771. The Company recognized paid in capital through the issuance of common stock through the merger of $6,500 recorded at par value Freight Solution, the cancelation of ($21,500) recognized paid in capital through the cancelation of common stock through the merger, and $6,500 recognized paid in capital recorded at par value Freight Solution after the merger on July 13, 2018. The total eliminated for the consolidation was recorded at $25,900 and recognized through paid in capital.

(5)

The Company recognized the legal fees and other costs associated with the merger of $51,760 accounted for as merger expenses in our Statement of Operations as well as contribution into paid in capital of $51,760.

(6)

At the time of the merger, subscription escrow proceeds from the private placement were still receivable from the escrow agent of $63,000. These were recorded as contra equity, and eliminated on the pro forma. These escrow proceeds were received in August 2018.

(7)

Total cost to acquire the control shares of the Company by Bioanomaly, Inc. was $444,000 ($419,000 payment for shares, and $25,000 for a finder’s fee) recorded as part of the gain/(loss) on merger.