Restatement of Statements of Changes

12 Months Ended

Jan. 31, 2023

Restatement of Statements of Changes

Statements of Changes in Equity Restatement

Note 3 - Restatement of Statements of Changes in Stockholders’ Equity as of January 31, 2022

After the issuance of the Company’s Annual Report on Form 10-K for the year ended January 31, 2022, the Company discovered certain calculation errors with respect to certain of its stock-based compensation (“SBC”) expense, which resulted in a misstatement in the Company’s previously issued financial statements. The financial statements for the year ended January 31, 2022, have been restated to reflect the corrections of the misstatements in accordance with ASC 250, Accounting Changes and Error Corrections. The Company has also corrected certain disclosures related to the financial statements. The reasons for the changes were due to the following:

A.	131,901,600 SBC common shares, granted on October 4, 2020, are being amortized and expensed, at a fair value of $0.005 per share, over 4 fiscal years equally (vesting period) commencing on October 4, 2020. Previously, a larger portion of these SBC common shares (attributable to prior services) were expensed as of the grant date, with the balance being amortized and expensed over the remaining 4-year service period.
B.	6,233,500 SBC common shares, granted on November 24, 2020, were expensed entirely, at a fair value of $0.005 per share, as fully vested on the grant date. Previously, these SBC common shares were being amortized and expensed over a 4-year service period.
C.	7,135,015 SBC common shares, granted on May 12, 2021, were expensed entirely, at a fair value of $0.05 per share, as fully vested on the grant date. Previously, these SBC common shares were being amortized and expensed over a 12-month service period, at a fair value of $0.005 per share.

The impact of these restatements on the Statements of Changes in Stockholders’ Equity is summarized as follows:

	As previously			Effect of
January 31, 2022	Reported			Restatement			As Restated
Common stock	$	20,652		-			$	20,652
Non-vested stock-based
Shareholder receivables		(137,634	)		137,634			-
Additional Paid-in Capital		877,797			(97,287	)		780,510
Retained Earnings (Deficit)		816,724			(40,347	)		776,377
Stockholders’ Equity	$	1,577,539		$	-		$	1,577,539