# EDGAR Filing Document

**Accession Number:** 0001830503
**File Stem:** 0001477932-23-001408
**Filing Date:** 2023-3
**Character Count:** 67266
**Document Hash:** 346fb50ab578a3d5f1aa6933a9baf2a2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-23-001408.hdr.sgml**: 20230310

**ACCESSION NUMBER**: 0001477932-23-001408

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 63

**CONFORMED PERIOD OF REPORT**: 20221130

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Business Warrior Corp
- **CENTRAL INDEX KEY:** 0001830503
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 901901168
- **FISCAL YEAR END:** 0831

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-265471
- **FILM NUMBER:** 23723091

**BUSINESS ADDRESS:**
- **STREET 1:** 455 E PEBBLE RD #230912
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89123-0912
- **BUSINESS PHONE:** 855-294-2900

**MAIL ADDRESS:**
- **STREET 1:** 455 E PEBBLE RD #230912
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89123-0912

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Business Warrior
- **DATE OF NAME CHANGE:** 20201029

?xml version="1.0" encoding="utf-8"?bzwr_10q.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

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

For the quarterly period ended: **<u>November 30, 2022</u>**

or

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

For the transition period from __________________ to __________________

Commission file number: **<u>333-265471</u>**

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|:---|
| **BUSINESS WARRIOR CORPORATION** |
| (Exact name of registrant as specified in its charter) |

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|:---|:---|
| **Wyoming** | **90-1901168** |
| State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization | Identification No.) |

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| **455 E Pebble Road, #230912, Las Vegas, NV 89123-0912** |
| (Address of principal executive offices and Zip Code) |

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Registrant's telephone number, including area code **<u>(855) 294-2900</u>**

Securities registered pursuant to Section 12(b) of the Act: None

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|:---|:---|:---|
| *Title of each class* | *Trading*<br>*Symbol(s)* | *Name of each exchange on which registered*<br>|

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Indicate by check mark if 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 such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

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|:---|:---|:---|:---|:---|
| Large accelerated filer | ☐ |  | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☒ |
|  |  |  | Emerging growth company | ☒ |

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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 check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. As of March 6, 2023, there were 465,618,093 shares of the registrant's common stock issued and outstanding.

Documents Incorporated by Reference: **None**

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|:---|:---|
| [Consolidated Balance Sheet as of November 30, 2022 (unaudited) and August 31, 2022](#f1) | 3 |
| [Consolidated Statements of Operations for the three months ended November 30, 2022 and 2021 (Unaudited)](#f2) | 4 |
| [Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the three months ended November 30, 2022 and 2021 (unaudited)](#f4) | 6 |
| [Consolidated Statements of Cash Flows for the Three months ended November 30, 2022 and 2021 (Unaudited)](#f3) | 5 |
| [Notes to the Consolidated Financial Statements](#f5) | 7 |

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| 2 |
| *[**Table of Contents**](#TOCFS)* |

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| | | |
|:---|:---|:---|
| **BUSINESS WARRIOR CORPORATION** | **BUSINESS WARRIOR CORPORATION** | **BUSINESS WARRIOR CORPORATION** |
| **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** |
|  |  ***(Unaudited)***  |  |
|  |  ***November 30,***  | **August 31,**  |
|  | **2022** | **2022** |
| **Assets** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $175261 | $382431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 428572 | 542428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of loans receivable, net | 62816 | 70399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other current assets | 17390 | 16638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 684039 | 1011896 |
| Loans receivable, non-current, net | 163473 | 223219 |
| Right-of-use asset, net | 72061 | 76219 |
| Property and equipment, net | 212794 | 244633 |
| Goodwill | 2321667 | 2321667 |
| **Total Assets** | $3454034 | $3877634 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 1182645 | 1063345 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent earnout liability | 1250000 | 1250000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 5280 | 474977 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of finance lease liability | 13564 | 18487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related party | 159147 | 159161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of notes payable |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of SBA loan | 6577 | 8039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 2617213 | 2974009 |
| Line of Credit | 1900535 |  |
| Finance lease liability, long term | 57164 | 57164 |
| Notes payable | 60647 | 75000 |
| SBA loan, non-current | 141861 | 141861 |
| **Total Liabilities** | $4777420 | $3248034 |
| Commitments and contingencies (Note 11) |  |  |
| **Stockholders' Equity**  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, par value $0.001, 10,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A Preferred stock; 15,500 shares authorized; 15,500 shares issued and outstanding | 16 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series B Preferred stock, 100,000 shares authorized; 2,023 and 12,017 shares issued and outstanding at November 30, 2022 and August 31, 2022, respectively | 2 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C Preferred stock, 50,000 shares authorized; 50,000 shares issued and outstanding at November 30, 2022 and August 31, 2022 | 50 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value; 500,000,000 shares authorized; 465,618,093 shares issued and outstanding as of November 30, 2022 and August 31, 2022 | 46562 | 46562 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital | 10558531 | 11539564 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (11928548) | (10956604) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | (1323386) | 629600 |
| **Total Liabilities and Stockholders' Equity** | $3454034 | $3877634 |

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See notes to unaudited consolidated financial statements

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| 3 |
| *[**Table of Contents**](#TOCFS)* |

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| | | |
|:---|:---|:---|
| **BUSINESS WARRIOR CORPORATION** | **BUSINESS WARRIOR CORPORATION** | **BUSINESS WARRIOR CORPORATION** |
| **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** |
| ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** |
|  | **For the three months ended** | **For the three months ended** |
|  | **November 30,** | **November 30,** |
|  | **2022** | **2021** |
| Sales | $1455742 | $452490 |
| Cost of sales | 1031441 | 23051 |
| Gross profit | 424301 | 429439 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising and promotion | 66244 | 308519 |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and wages | 778307 | 313537 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services | 101635 | 64280 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 224573 | 336670 |
| Income (Loss) from operations | (746458) | (593567) |
| Other income (expense): |  |  |
| Interest expense | (273317) | 577 |
| Gain on extinguishment of debt |  | 77500 |
| Other income (expense) | 47831 | 1699 |
| Net loss before income taxes | (971944) | (513791) |
| Income taxes | - | - |
| Net loss | $(971944) | $(513791) |
| Basic and diluted loss per share  | $(0.0022) | $(0.0013) |
| Weighted average shares outstanding - basic and diluted | 434700005 | 410032902 |

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See notes to unaudited consolidated financial statements.

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| 4 |
| *[**Table of Contents**](#TOCFS)* |

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| | | |
|:---|:---|:---|
| **BUSINESS WARRIOR CORPORATION** | **BUSINESS WARRIOR CORPORATION** | **BUSINESS WARRIOR CORPORATION** |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** |
|  | **Three months ended** | **Three months ended** |
|  | **November, 30** | **November, 30** |
|  | **2022** | **2021** |
| **Cash Flows from Operating Activities** |  |  |
| Net loss | $(971944) | $(513791) |
| Adjustments to reconcile net loss to net cash from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization  | 35997 | 14446 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  | 29243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on extinguishment of debt |  | (77500) |
| Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 113856 | (422816) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other current assets | (752) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (469697) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 119300 | (1042022) |
| Net cash from operating activities | (1173240) | (2012440) |
| **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of loans receivable | (1852) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments received on loans receivable | 69182 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | - | (65075) |
| Net cash from investing activities | 67330 | (65075) |
| **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in related party payables |  | 14258 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in notes payable |  | (14349) |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversion of preferred stock into debt | (981043) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from line of credit | 1900535 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock |  | 1760000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of finance lease liability | (4923) | (3281) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of notes payable | (15815) | (9000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of notes payable, related party | (14) | (1717) |
| Net cash from financing activities | 898740 | 1745911 |
| Change in cash and cash equivalents | (207170) | (331604) |
| Cash and cash equivalents at beginning of period | 382431 | 4251741 |
| Cash and cash and equivalents at end of period | $175261 | $3920137 |
| Supplemental Cash Flow Information |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income taxes | $- | $- |

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See notes to unaudited consolidated financial statements

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| 5 |
| *[**Table of Contents**](#TOCFS)* |

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| **BUSINESS WARRIOR CORPORATION** |
| **CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT** |

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred Stock**  | **Series A Preferred Stock**  | **Series B Preferred Stock**  | **Series B Preferred Stock**  | **Series C Preferred Stock**  | **Series C Preferred Stock**  | **Common Stock**  | **Common Stock**  | | | |
|  | **Shares** | **Amount**  | **Shares** | **Amount**  | **Shares** | **Amount**  | **Shares** | **Amount**  | **Additional**<br>**Paid in**<br>**Capital** | **Accumulated** <br> **Deficit**  |<br> **Total**  |
| Balance August 31, 2022 | **15500** | $**16** | **12017** | $**12** | **50000** | $**50** | **465618093** | $**46562** | $**11539564** | $**(10956604)** | $**629600** |
| Conversion of preferred stock to debt |  |  | (9994) | (10) |  |  |  |  | (981033) |  | (981043) |
| Net loss |  |  |  |  |  |  |  |  |  | (971944) | (971944) |
|  |  |  |  |  |  |  |  |  |  |  | - |
| Balance November 30, 2022 | **15500** | $**16** | **2023** | $**2** | **50000** | $**50** | **465618093** | $**46562** | $**10558531** | $**(11928548)** | $**(1323386)** |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred Stock**  | **Series A Preferred Stock**  | **Series B Preferred Stock**  | **Series B Preferred Stock**  | **Common Stock**  | **Common Stock**  | | | |
|  | **Shares** | **Amount**  | **Shares** | **Amount**  | **Shares** | **Amount**  | **Additional**<br>**Paid in**<br>**Capital** | **Accumulated** <br> **Deficit**  | <br> **Total**  |
| Balances, August 31, 2021 | **15500** | $**16** |  | $- | **394243067** | $**39424** | $**5271880** | $**(3365354)** | $1906542 |
| Issuance of common stock for services |  |  |  |  | 150000 | 15 | 29228 |  | 297565 |
| Issuance of common stock for cash |  |  |  |  | 22075000 | 2207 | 1757793 |  | 1757793 |
| Net loss |  |  |  |  |  |  |  | (513791) | (513791) |
| Balance November 30, 2021 | **15500** | $**16** |  | $- | **416468067** | $**41646** | $**7058901** | $**(3879145)** | $**3448110** |

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See notes to unaudited consolidated financial statements

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| 6 |
| *[**Table of Contents**](#TOCFS)* |

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**BUSINESS WARRIOR CORPORATION**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(UNAUDITED)**<br>

**1. Organization and Nature of Operations** 

**Organization**—Business Warrior Corporation (the Company" or "Business Warrior") was originally incorporated under the name Kading Companies, S.A., under the International Business Companies Ordinance of the Territory of the British Virgin Islands on October 10, 1995. Kading Companies was traded on the Pink Sheets of the OTC Markets under the stock ticker KDNG. On January 27, 2020, Kading Companies was redomiciled in Wyoming. Bluume, LLC was founded in 2014 and was a sales and marketing organization that provided small businesses with basic advertising, merchant services, white label Point of Sale systems, and a white label business analytics software. On January 31, 2020, Bluume, LLC completed a triangular reverse merger with Kading Companies (formerly KDNG) and changed its name to Business Warrior. It is currently an active corporation in the state of Wyoming. The previous Bluume team took over all operations of the Company and formed a new business plan, which replaced all former plans of the previous management team at Kading Companies. In July 2020, the Company changed its stock ticker to BZWR.

On March 18, 2022, the Company acquired Helix House, LLC, a premium marketing agency that provides small business advertising services including digital marketing. Additionally, on June 18, 2022, the Company acquired FluidFi Inc., dba Alchemy Technology, a lending technology company that builds fully customized lending end-to-ending lending solutions.

**Nature of Operations**— Business Warrior has three divisions of the company: Helix House, LLC, Alchemy Technologies, and Business Warrior. Helix House is a premium marketing agency that provides small business advertising services including digital marketing (YouTube, Google, social media), traditional marketing (billboards, mailers, fliers, etc.), and social media content. Alchemy builds and manages lending software technology for enterprise businesses which are fully customized for each client. Through the combination of services from Helix House and Alchemy, Business Warrior offers a full service lending as a service solution known as PayPlan: a comprehensive lending software platform that includes marketing services to drive applicants for lenders and merchants.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation—**The consolidated financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and its consolidated and wholly owned subsidiaries. The consolidated financial statements reflect the elimination of all significant inter-company accounts and transactions.

**Use of Estimates**—The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual events and results could materially differ from those assumptions and estimates.

**Concentration of Credit Risk**—Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

**Cash and Cash Equivalents**—The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are maintained at financial institutions, and at times, balances may exceed federally insured limits.

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| 7 |
| *[**Table of Contents**](#TOCFS)* |

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**Property and Equipment**— Property and equipment are stated at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of depreciable assets.

Cost and accumulated depreciation for property retired or disposed of are removed from the accounts, and any resulting gain or loss is included in earnings. Expenditures for maintenance and repairs are charged to expense as incurred.

**Impairment of Long-Lived Assets**—Potential impairments of long-lived assets are reviewed when events or changes in circumstances indicate a potential impairment may exist. In accordance with Accounting Standard Codification ("ASC") Subtopic 360-10, "Property, Plant and Equipment – Overall," impairment is determined when estimated future undiscounted cash flows associated with an asset are less than the asset's carrying value.

**Goodwill**—The Company's goodwill balance of $2.3 million as of November 30, 2022 resulted from the acquisitions of Helix House, LLC and FluidFi, Inc. Helix House, LLC was acquired on March 17, 2022, and FluidFi, Inc. was acquired on June 8, 2022. Goodwill represents the excess of the cost of an acquired business over the estimated fair values of the assets acquired and liabilities assumed. Goodwill is reviewed at least annually for impairment, which may result from the deterioration in the operating performance of the acquired business, adverse market conditions, adverse changes in the applicable laws or regulations and a variety of other circumstances. Any resulting impairment charge would be recognized as an expense in the period in which impairment is identified. After performing a qualitative and quantitative analyses for the acquired companies, the Company recognized approximately $4.0 million in goodwill impairment during the year ended August 31, 2022.

**Accounts Receivable and Allowance for Doubtful Accounts**— Accounts receivable are carried at the original invoiced amount less an allowance for doubtful accounts based on the probability of future collection. The probability of future collection is based on specific considerations of historical loss patterns and an assessment of the continuation of such patterns based on past collection trends and known or anticipated future economic events that may impact collectability. The probability of future collection is also assessed by geography. To date, losses resulting from uncollected receivables have not exceeded management's expectations. The Company recorded an allowance for doubtful accounts of $459,117 and $0 as of November 30, 2022 and August 31, 2022, respectively.

**Income Taxes**— Income taxes are accounted for under the asset and liability method. 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 basis and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as a component of general and administrative expenses. Our federal tax return and any state tax returns are not currently under examination.

The Company has adopted ASC 740-10, *Accounting for Income Taxes*, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually from differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

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| *[**Table of Contents**](#TOCFS)* |

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**Revenue Recognition**—The Company recognizes revenue in accordance with Accounting Standards Update 2014-09, "*Revenue from contracts with customers,"* (Topic 606). Revenue is recognized when a customer obtains control of promised goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company's main revenue stream is from sales of products. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company's performance obligations are transferred to customers at a point in time, typically upon delivery.

The Company has four main sources of revenue. Helix House is a premium marketing agency that charges monthly service fees and one-time project charges for providing small business advertising services including digital marketing (YouTube, Google, social media), traditional marketing (billboards, mailers, fliers, etc.), and social media content. FluidFi Inc, dba Alchemy builds fully customized lending end-to-end lending software solutions for banks, lenders, and financial technology firms. Alchemy charges monthly recurring fees for each client's software-as-a-service as well as contracted work for custom software development. Business Warrior collects revenue for building software lending solutions, and sales and marketing solutions associated with each lending client. Business Warrior Funding collects principal and interest payments for providing business loans to small businesses.

*Identify the customer contract*

A customer contract is generally identified when the Company and a customer have executed an arrangement that calls for the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer.

*Identify performance obligations that are distinct*

A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and a company's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are distinct because, once a customer has access to the online software product is fully functional and does not require any additional development, modification, or customization. Professional services sold are distinct because the customer benefits from the on-boarding and training to make better use of the online software products it purchased.

*Determine the transaction price*

The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding sales taxes that are collected on behalf of government agencies. The Company estimates any variable consideration to which it will be entitled at contract inception, and reassesses at each reporting date, when determining the transaction price. The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when any uncertainty associated with the variable consideration is resolved.

*Allocate the transaction price to the distinct performance obligations*

The transaction price is allocated to each performance obligation based on the relative standalone selling prices ("SSP") of the goods or services being provided to the customer. The Company determines the SSP of its goods and services based upon the average sales prices for each type of online software product and professional services sold. In instances where there are not sufficient data points, or the selling prices for a particular online software product or professional service are disparate, the Company estimates the SSP using other observable inputs, such as similar products or services.

*Recognize revenue as the performance obligations are satisfied*

Revenues are recognized when or as control of the promised goods or services is transferred to customers. Revenue from online software products is recognized ratably over the subscription period beginning on the date the Company's online software products are made available to customers. Most subscription contracts are one year or less. The Company recognizes revenue from on-boarding, training, and consulting services as the services are provided. Cash payments received in advance of providing subscription or services are recorded to deferred revenue until the performance obligation is satisfied. Revenue from the Company's business lending solution is recognized as interest income and origination fees, based upon the loan that is issued to each customer.

*&nbsp;&nbsp;&nbsp;&nbsp;Deferred Revenue*

The Company recognized the deposits received from its customers as deferred revenue if the goods or service are associated with a long-term contract. The Company signed a 12-month contract with a client in November of 2021. The total value of that contract was $3,000,000. During the three months ended November 30, 2022, a total of $469,697 of deferred revenue was recognized into sales revenue. As of November 30, 2022 the full $3,000,000 of that contract has been recognized and the Company has $0 deferred revenue remaining.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| |
|:---|
| 9 |
| *[**Table of Contents**](#TOCFS)* |

---

**Net Income (Loss) Per Common Share**—The Company computes income per common share, in accordance with ASC Topic 260, *Earnings Per Share,* which requires dual presentation of basic and diluted earnings per share. Basic income or loss per common share is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted income or loss per common share is computed by dividing net income or loss by the weighted average number of common shares outstanding, plus the issuance of common shares, if dilutive, that could result from the exercise of outstanding stock options and warrants. No potential dilutive common shares are included in the computation of any diluted per share amount when a loss is reported.

**Fair Value Measurements**—ASC Topic 820, *Fair Value Measurements*, clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2: Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3: Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

The estimated fair value of certain financial instruments, including all current liabilities are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.

**Advertising and Promotion**— The Company follows the policy of charging the costs of advertising, marketing, and public relations to expense as incurred. The Company has $66,244 and $308,519 in advertising expenses for the three months ended November 30, 2022 and 2021, respectively.

**Cost of Sales** — This is comprised of referral and sales commission, advertising for our premium marketing clients, website hosting fees, and data fees for our software subscribers.

**Leases**— Under ASC Top 842, *"Leases"*, the Company determines if an agreement is a lease at inception. Operating leases are included in operating lease – right to use, current portion of operating lease liability, and operating lease liability, less current portion in the Company's consolidated balance sheets. Finance leases are included in property and equipment, net, current portion of long-term debt, net and long-term debt, less current portion and debt issuance costs in the Company's consolidated balance sheets.

As permitted under ASU Topic 842, the Company has made an accounting policy election not to apply the recognition provisions of ASU 2016-02 to short term leases (leases with a lease term of 12 months or less that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise); instead, the Company will recognize the lease payments for short term leases on a straight-line basis over the lease term.

**3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS**

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

**4. LOANS RECEIVABLE**

During the year ended August 31, 2022, the Company launched its new small business lending solution called Business Warrior Funding. The new lending solution leverages the Company's expertise and strategic partnerships to help entrepreneurs grow their business and offset the difficulty often associated with traditional bank lending. Loans to customers range from $5,000 to $125,000, with interest rates ranging from 16.99% to 23.0%. As of November 30, 2022, the Company had a loans receivable balance of $286,035. As of August 31, 2022, the Company had a loans receivable balance of $293,618, of which $70,399 are considered current and $223,219 are non-current. The Company has $59,427 recorded as an allowance for doubtful accounts as of November 30, 2022 and August 31, 2022.

---

| | |
|:---|:---|
| Year ending August 31, 2023 | $62816 |
| Year ending August 31, 2024 | 223219 |
|  | $286035 |

---

---

| |
|:---|
| 10 |
| *[**Table of Contents**](#TOCFS)* |

---

**5. PROPERTY AND EQUIPMENT** 

Property and equipment consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Useful lives** | **November 30,**<br>**2022** | **August 31,**<br>**2022** |
| Software and computer equipment | 5 years | $635555 | $652892 |
| Furniture and fixtures and other equipment | 3 years | 2960 | 2960 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment |  | 638515 | 655852 |
| Less accumulated depreciation |  | (425721) | (411219) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment, net |  | $212794 | $244633 |

---

For the three months ended November 30, 2022 and 2021, depreciation expense was $31,839 and $10,288, respectively.

**6. LEASE RIGHT-OF-USE ASSETS AND LEASE LIABILITIES**

*Finance leases*

The Company leases a vehicle which meets the classification of a finance lease under ASC 842. The monthly payments are $1,778 and the term is 60 months. The lease commenced on August 26, 2021.

Finance right of use assets are summarized below:

---

| | | |
|:---|:---|:---|
|  | **November 30,** <br>**2022**  | **August 31,** <br>**2022** |
| Finance Lease | $94237 | $94237 |
| Less accumulated depreciation | (22176) | (18018) |
| Finance lease, net | $72061 | $76219 |

---

Depreciation expense was $4,158 for the three months ended November 30, 2022 and 2021.

Finance lease liabilities are summarized below:

---

| | | |
|:---|:---|:---|
|  | **November 30,** <br>**2022**  | **August 31,** <br>**2022**  |
| Finance lease liability | $70728 | $75651 |
| Less: current portion | (13564) | (18487) |
| Long term portion | $57164 | $57164 |

---

---

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|:---|
| 11 |
| *[**Table of Contents**](#TOCFS)* |

---

**Maturity of lease liabilities are as follows:**

---

| | |
|:---|:---|
|  | **November 30, 2022** |
| Year ending August 31, 2023 | $16417 |
| Year ending August 31, 2024 | 21340 |
| Year ending August 31, 2025 | 21340 |
| Year ending August 31, 2026 | 19562 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total future minimum lease payments | 78659 |
| Less imputed interest | (7931) |
| &nbsp;&nbsp;&nbsp;&nbsp;PV of payments | $70728 |

---

**7. NOTES PAYABLE**

As of August 31, 2022, the Company entered into a note payable due to Elev8 Advisors for $75,000. This note bears interest of 17.97% and matures in February 2024.

The Company made payments of $14,353 to bring the note payable balance to $60,647 for the three months ended November 30, 2022.

**8. LINE OF CREDIT**

The revolving Line of Credit (LOC) consists of new notes in the principal amount of $901,176 that was paid in cash and the conversion of 9,994 of Preferred B stock into debt. The LOC has a maximum draw amount of $5,000,000. Advances on the LOC bear interest, on the outstanding principal balance at a rate equal to ten (10%) per annum. Interest only payments start on July 1, 2023 and the LOC has a maturity date of September 30, 2024. As of November 30, 2022, the Company's principal balance due is $1,900,535.

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**9. PPP AND SBA LOANS**

The Company also entered into a normal SBA loan during 2020 with a principal amount of $149,900. The note bears interest at a rate of 3.75% per annum. On March 16, 2021, the SBA announced extended deferment periods for all COVID-19 and other disaster loans until 2022. For the three months ended November 30, 2022, the Company made payments of $1,462.

Aggregate principal maturities of the SBA loan is as follows:

---

| | |
|:---|:---|
| Year ending August 31, 2023 | $6577 |
| Year ending August 31, 2024 | 8772 |
| Year ending August 31, 2025 | 8772 |
| Year ending August 31, 2026 | 8772 |
| Year ending August 31, 2027 | 8772 |
| Thereafter | $106773 |
|  | $148438 |

---

**10. RELATED PARTIES**

The Board of Directors has adopted a written related party transaction policy. This policy applies to all transactions that qualify for disclosure. Information about transactions involving related persons is reviewed by management. Related persons include Company directors and executive officers, as well as their immediate family members. If a related person has a direct or indirect material interest in any Company transaction, then management would decide whether or not to approve or ratify the transaction. Amounts due to related parties were $159,147 and $159,161 as of November 30, 2022 and August 31, 2022. These amounts are considered a current liability.

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|:---|
| 12 |
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**11. COMMITMENTS AND CONTINGENCIES**

During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450-20-50, *Contingencies*. The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. As of August 31, 2022 and 2021, the Company is not aware of any contingent liabilities that has not been be reflected in the financial statements.

**12. EQUITY**

*Series A preferred shares*

As of November 30, 2022 and August 31, 2022, 15,500 shares were issued and outstanding with a par value of $.001 These shares were authorized in 2020 and each share is convertible into 0.1% of the total number of shares of common stock outstanding at the time of conversion. Each holder of these preferred shares shall be entitled to cast the number of votes equal to the number of whole shares of common stock into which the shares of Series A preferred stock held by each holder are convertible.

*Series B preferred shares*

In May 2022, the Company authorized 100,000 shares of the Series B preferred stock with a par value of $.001. As of November 30, 2022 and August 31, 2022, the Company has 2,023 and 12,017 Preferred B shares issued and outstanding, respectively. Each share shall be convertible, at the option of the holder into the number of fully paid and nonassessable shares of common stock that have fair market value, in the aggregate, equal to the Series B conversion price.

*Series C preferred shares*

In June 2022, the Company authorized 50,000 shares of the Series C preferred stock with a stated value of $100 per share and a par value of $.001. As of November 30, 2022 and August 31, 2022, the Company has 50,000 Preferred C shares issued and outstanding. Each holder of outstanding shares of Series C preferred stock shall be entitled to cast the number of votes equal to the number of whole shares of common stock into which the shares of Series C preferred stock held by such holder are convertible.

**13. CONCENTRATIONS**

For the three months ended November 30, 2022 and November 30, 2021, the Company had four customers representing 32% of total revenue and one customer representing 56% of total revenue, respectively. For the three months ended November 30, 2022, the Company had four customers representing 61% of total accounts receivable and two customer representing 42% of total accounts receivable as of August 31, 2022.

**14. RECLASSIFICATIONS**

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

**15. INCOME TAXES**

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. Federal income tax rate is 21%.

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|:---|
| 13 |
| *[**Table of Contents**](#TOCFS)* |

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The provision for Federal income tax consists of the following three months ended November 30:

---

| | | |
|:---|:---|:---|
| Federal income taxes attributable to: | **2022** | **2021** |
| Current operations | $212246 | $107896 |
| Less: valuation allowance | (212246) | (107896) |
| Net provision for federal income taxes | $- | $- |

---

The cumulative tax effect at the expected rate of 21% of significant stems comprising our net deferred tax amount is as follows:

---

| | | |
|:---|:---|:---|
|  | **November 30,**<br>**2022** | **August 31,**<br>**2022** |
| Net operating loss carryover | $1668130 | $1455884 |
| Less: valuation allowance | (1668130) | (1455884) |
| Net deferred income taxes | $- | $- |

---

The Company files income tax returns for federal purposes and in many states. The Company's tax filings remain subject to examination by applicable tax authorities for certain length of time, generally three to four years, following the tax year to which these filings related. The statue of limitations for adjustment of the net operating losses utilized on these tax returns remains open an additional three to four years, depending on jurisdiction, from the date these returns were filed.

**16. SUBSEQUENT EVENTS**

In January 2023, the Company converted 2,023 shares of Series B preferred stock into debt.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

Our management's discussion and analysis provides a narrative about our financial performance and condition that should be read in conjunction with the audited and unaudited consolidated financial statements and related notes thereto included in this quarterly report on Form 10-Q. This discussion contains forward looking statements reflecting our current expectations and estimates and assumptions about events and trends that may affect our future operating results or financial position. Our actual results and the timing of certain events could differ materially from those discussed in these forward-looking statements due to a number of factors, including, but not limited to, those set forth in the sections of our annual report on Form 10-K titled "Risk Factors".

**Results of Operations** 

**For the Three Months Ended November 30, 2022 and 2021**

*Revenues*

For the three months ended November 30, 2022, and 2021, we had revenues of $1,455,742 and $452,490, respectively. The increase was due to the revenue earned from the two entities that we acquired in 2022 (Alchemy and Helix). Additionally, we entered into a long term contract in November 2021, for which only one month of revenue was earned in the same period in 2021, while two months of revenue were earned in the same period of 2022

*Operating Expenses*

For the three months ended November 30, 2022, and 2021, we had operating expenses of $1,170,759 and 1,023,006, an increase 14.4%, due to an increase in salaries and wages due to additional staff onboarded in conjunction with the acquisition of Helix and Alchemy. This amount was offset by a decrease in advertising and promotion. There was a decrease in advertising and promotion in the quarter as we focused on building a new product and waiting for that product to be completed before spending significantly on marketing.

*Net Loss*

Our (Net Loss) for the three months ended November 30, 2022, and 2021, was $(971,944) versus $(513,791) respectively. The difference is attributable to an increase in cost of sales attributed to the new business models in the acquisitions of Helix and Alchemy.

*Assets and Liabilities*

Our total current assets decreased to $684,039 from $1,011,896 during the three-month period ended November 30, 2022, compared to August 31, 2022. This decrease was due to cash used for operations and decrease in Accounts Receivables collected.

Total current liabilities decreased to $2,617,213 from $2,974,009 during the three-month period ended November 30, 2022, compared to our year end at August 31, 2022. The decrease reflects a decrease in deferred revenue from $474,977 to $5,280.

Net cash from financing activities decreased to $898,740 as of November 30, 2022 as compared to $1,745,911 for the same period in 2021. The decrease was due to a decrease of proceeds from the issuance of Common Stock and the conversion of Preferred Shares to debt, but partially offset by the proceeds from a new Line of Credit.

***Liquidity and Capital Resources***

*Cash used by operating activities*

The Company used $1,173,240 in cash from operating activities for the quarter ended November 30, 2022 as compared to a use of $2,012,440 for the quarter ended November 30, 2021. The decrease is due to an improvement in Accounts Receivables and less cash used for Account Payables.

*Cash provided by investing activities*

Net cash from investing activities was $67,330 for the period ended November 30, 2022, as compared to cash used of $65,075 for the period ended November 30, 2021. The increase in net cash is due to the collection of loan receivables from the small business loans provided by Business Warrior Funding.

*Cash provided by financing activities*

Net cash from financing activities decreased to $898,740 as of November 30, 2022 as compared to $1,745,911 for the same period in 2021. The decrease was due to the exchange of preferred stock for debt.

We currently do not have sufficient capital to fund our cash needs for the next 12 months. We intend to rely on financing from convertible debt, promissory notes, and sale of stock to fund our operations.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.** 

Not applicable.

**Item 4. Controls and Procedures.**

***(a) Disclosure Controls and Procedures***

We maintain "disclosure controls and procedures", as that term is defined in Rule 13a-15(e), promulgated by the Securities and Exchange Commission pursuant to the *Securities Exchange Act of 1934*, as amended. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company's reports filed under the *Securities Exchange Act of 1934* is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by paragraph (b) of Rules 13a-15 under the *Securities Exchange Act of 1934*, our management, with the participation of our principal executive officer and our principal financial officer, evaluated our company's disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our management concluded that as of the end of the period covered by this quarterly report on Form 10-Q, our disclosure controls and procedures were not effective.

***(b) Management's Report on Internal Control over Financial Reporting***

Our management, including our principal executive officer and our Board of Directors, is responsible for establishing and maintaining a process 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 management, with the participation of our principal executive officer, evaluated the effectiveness of our internal control over financial reporting as of November 30, 2022. Our management's evaluation of our internal control over financial reporting was based on the framework in Internal Control—Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was not effective as of November 30, 2022 due to the following material weaknesses which are indicative of many small companies with small staff: (i) inadequate segregation of duties and ineffective risk assessment; (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines; (iii) and inadequate technical skills of accounting personnel. To remediate such weaknesses, we believe we would need to implement the following changes: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out in (i) and (ii) are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner. Until we have the required funds, we do not anticipate implementing these remediation steps.

A material weakness is a deficiency or a combination of control deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

Our principal executive officer does not expect that our disclosure controls or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additional controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

***(c) Changes in Internal Control over Financial Reporting***

There were no changes in our internal control over financial reporting during the quarterly period ended November 30, 2022 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings.**

Business Warrior Corporation vs. Timothy Li, CASE #: 8:22-cv-02144-DOC-ADS

On November 28, 2022, the Company filed a complaint in United States District Court for the Central District of California, against Timothy Li, alleging breach of fiduciary duty, fraudulent concealment, civil theft under California Penal Code §§484 and 496, breach of duty of loyalty, and unfair competition in violation of CA Bus, & Prof. Code §§17200 et seq., in connection with the acquisition of FluidFi Inc. d/b/a Alchemy and the transfer by Timothy Li of $200,000 from accounts of FluidFi to Timothy Li after the closing of acquisition.

Other than as set forth above, we are not a party to any material legal proceedings, nor is our property the subject of any material legal proceedings.

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

None

**Item 3. Defaults Upon Senior Securities.**

None

**Item 4. Mine Safety Disclosures.**

Not applicable

**Item 5. Other Information.**

In January 2023, the Company converted 2,023 shares of Series B preferred stock into debt.

**Item 6. Exhibits.**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| [3.1(i)\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793220006544/business_ex21.htm) | [Articles of Continuance (incorporated by reference to Exhibit 2.1 to the Company's filing on Form 1-A on November 16, 2020)](http://www.sec.gov/Archives/edgar/data/1830503/000147793220006544/business_ex21.htm) |
| [3.1(ii)\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793220006544/business_ex22.htm) | [Amended and Restated Articles of Incorporation of Business Warrior (incorporated by reference to Exhibit 2.2 to the Company's Filing on Form 1-A on November 16, 2020)](http://www.sec.gov/Archives/edgar/data/1830503/000147793220006544/business_ex22.htm) |
| [3.1(iii)\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex31iii.htm) | [Designation of the Series B Preferred Stock(incorporated by reference to Exhibit 3.1(iii) to the Company's Filing on Form S-1 on June 8, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex31iii.htm) |
| [3.2(ii)\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004435/business_ex32.htm) | [Bylaws of Business Warrior Corporation.(incorporated by reference to Exhibit 3.2(ii) to the Company's Filing on Form S-1 on June 16, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004435/business_ex32.htm) |
| [10.1\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793220006544/business_ex61.htm) | [Plan and Agreement of Merger and Reorganization (incorporated by reference to Exhibit 6.1 to the Company's filing on Form 1-A on November 16, 2020)](http://www.sec.gov/Archives/edgar/data/1830503/000147793220006544/business_ex61.htm) |
| [10.2\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793220006544/business_ex65.htm) | [Consulting agreement with Kevin Kading (incorporated by reference to Exhibit 6.1 to the Company's filing on Form 1-A on November 16, 2020)](http://www.sec.gov/Archives/edgar/data/1830503/000147793220006544/business_ex65.htm) |
| [10.3\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex103.htm) | [Agreement with Savior Software (incorporated by reference to Exhibit 3.1(iii) to the Company's Filing on Form S-1 on June 8, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex103.htm) |
| [10.4\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex104.htm) | [Development Agreement with Alchemy (incorporated by reference to Exhibit 3.1(iii) to the Company's Filing on Form S-1 on June 8, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex104.htm) |
| [10.5\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex105.htm) | [Agreement with EVRGRN (incorporated by reference to Exhibit 3.1(iii) to the Company's Filing on Form S-1 on June 8, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex105.htm) |
| [10.6\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex106.htm) | [Helix House Membership Interest Purchase Agreement (incorporated by reference to Exhibit 3.1(iii) to the Company's Filing on Form S-1 on June 8, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex106.htm) |
| [10.7\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex107.htm) | [Series B Exchange Agreement (incorporated by reference to Exhibit 3.1(iii) to the Company's Filing on Form S-1 on June 8, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex107.htm) |
| [10.8\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex108.htm) | [Common Stock Purchase Agreement (Keystone) (incorporated by reference to Exhibit 3.1(iii) to the Company's Filing on Form S-1 on June 8, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex108.htm) |
| [10.9\*](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex109.htm) | [Registration Rights Agreement (Keystone) (incorporated by reference to Exhibit 3.1(iii) to the Company's Filing on Form S-1 on June 8, 2022)](http://www.sec.gov/Archives/edgar/data/1830503/000147793222004198/business_ex109.htm) |
| **(31)** | **Rule 13a-14(a)/15d-14(a) Certification** |
| [<u>31.1\*</u>\*](bzwr_ex311.htm) | <u>[Certification of the Principal Executive Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](bzwr_ex311.htm)</u> |
| **(32)** | **Section 1350 Certification** |
| <u>[32.1+](bzwr_ex321.htm)</u> | <u>[Certification of the Principal Executive Officer and Principal Financial Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](bzwr_ex321.htm)</u> |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.LAB  | Inline XBRL Taxonomy Extension Labels Linkbase Document. |
| 101.PRE  | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 101.DEF  | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |

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\* Previously Filed

\*\* Filed herewith.

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| | |
|:---|:---|
| + | In accordance with SEC Release 33-8238, Exhibits 32.1 is being furnished and not filed. |

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**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.

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| | | |
|:---|:---|:---|
|  | **BUSINESS WARRIOR CORPORATION**  | **BUSINESS WARRIOR CORPORATION**  |
| Date: March 9, 2023 | By: | */s/ Rhett Doolittle* |
|  |  | Name: Rhett Doolittle |
|  |  | Title: Chief Executive Officer and Director<br>(Principal Executive Officer) (Principal Financial and Accounting Officer) |

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## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Rhett Doolittle, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended November 30, 2022, of Business Warrior Corporation;

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 consolidated 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 period 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 the 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.

(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 controls 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 controls over financial reporting.

Date: March 9, 2023

*<u>/s/ Rhett Doolittle</u>*

Rhett Doolittle

Chief Executive Officer

(Principal Executive Officer and Principal Financial and Accounting Officer)

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT 0F 2002**

In connection with the Quarterly Report on Form 10-Q of Business Warrior Corporation. (the "Company") for the quarterly period ended November 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Rhett Doolittle, Chief Executive Officer of the Company and Principal Accounting Officer, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge and belief:

(1) The 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 Report fairly presents, in all material respects, the financial condition of the registrant at the end of the period covered by this report and results of operations of the registrant for the period covered by this report.

Date: March 9, 2023

*<u>/s/ Rhett Doolittle</u>*

Rhett Doolittle

Chief Executive Officer (Principal Executive Officer and Principal Accounting Officer)