EDGAR 10-K Filing

Company CIK: 2001249
Filing Year: 2025
Filename: 2001249_10-K_2025_0001213900-25-063676.json

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ITEM 1. BUSINESS
Item 1. Business

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ITEM 1A. RISK FACTORS
Item 1A. Risk Factors

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments.
None.

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ITEM 2. PROPERTIES
Item 2. Properties.
DESCRIPTION OF PROPERTY We do not own any real estate or other properties. The Company’s principal executive offices are located at 11951 US-1, Suite 105, North Palm Beach, Florida, 33408 and our registered office is located at 7901 4th St N, Suite 300, St. Petersburg, Florida, 33702. Our telephone number is (561) 772-3853.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings.
We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our Directors, Officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures.
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
As of June 27, 2025, the Company had sixty-two (62) active shareholders of record. The company has not paid cash dividends and has no outstanding options.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. [Reserved]
Not applicable.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of the financial condition and results of our operations should be read in conjunction with the “Summary Statements of Operations Data” and our financial statements and the notes to those statements appearing elsewhere in this annual report. This discussion and analysis contains forward-looking statements reflecting our management’s current expectations that involve risks, uncertainties and assumptions. Our actual results and the timing of events may differ materially from those described in or implied by these forward-looking statements due to several factors, including those discussed below and elsewhere in this annual report particularly on page 9 entitled “Risk Factors”.
Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
Overview
Going Concern
We have financed operations primarily through the sale of equity securities and short-term debt. Until revenues are sufficient to meet our needs, we will continue to attempt to secure financing through equity or debt securities. We continue to incur negative cash flows from operating activities and net losses. We had minimal cash, negative working capital, and negative total equity as at March 31, 2025. These factors, among others, raise substantial doubt about our ability to continue as a going concern. The financial statements included in this prospectus do not include any adjustments that might result from the outcome of this uncertainty.
For us to eliminate substantial doubt about our ability to continue as a going concern, we must achieve profitability, generate positive cash flows from operating activities and obtain the necessary debt or equity funding to meet our projected capital investment requirements. Our management’s plans with respect to this uncertainty consist of raising additional capital by issuing debt or equity securities and increasing the sales of our products and services. There can be no assurance, however, that we will be able to raise sufficient additional capital or that revenues will increase rapidly enough to offset operating losses. If we are unable to increase revenues or obtain additional financing, we will be unable to continue the development of our products and services and may have to cease operations.
Results of Operations
Periods Ended March 31, 2024, and March 31, 2025.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this prospectus.
Revenues for the period of September 21, 2023, to March 31, 2024, was $2,805. Revenues for the year ended March 31, 2025, was $1,294. The change in revenues was primarily due to decreased operating activity during the period.
Cost of revenues for the period of September 21, 2023, to March 31, 2024, was $830. Cost of revenues for the year ended March 31, 2025, was $445. The change in cost of revenues was primarily due to decreased operating activity during the period.
Compensation expense for the period of September 21, 2023, to March 31, 2024, was $29,599. Compensation expense for the year ended March 31, 2025, was $133,574. The change in compensation expense was primarily due to increased management salaries and Directors’ fees during the period.
Advertising expense for the period of September 21, 2023, to March 31, 2024, was $19,619. Advertising expense for the year ended March 31, 2025, was $7,087. The change in advertising expense was primarily due to decreased operating activity during the period.
Depreciation and amortization expense for the period of September 21, 2023, to March 31, 2024, was $2,205. Depreciation and amortization expense for the year ended March 31, 2025, was $11,492.
Impairment of property and equipment expense for the period of September 21, 2023, to March 31, 2024, was $47,772. Impairment of property and equipment expense for the year ended March 31, 2025, was $3,799. The change in impairment of property and equipment expense was primarily due to initial impairment expenses incurred during the year ended March 31, 2024.
Selling, general and administrative expenses for the period of September 21, 2023, to March 31, 2024, was $50,794. Selling, general and administrative expenses for the year ended March 31, 2025, was $176,271. The change in selling, general and administrative expenses was primarily due to increased accounting and audit expenses incurred during the year ended March 31, 2025.
Gain on sale of property and equipment for the period of September 21, 2023, to March 31, 2024, was $0. Gain on sale of property and equipment for the year ended March 31, 2025, was $389. The change in gain on sale of property and equipment was primarily due to the sale of equipment incurred during the period ended March 31, 2025.
Total operating expenses for the period of September 21, 2023, to March 31, 2024, was $149,989. Total operating expenses for the year ended March 31, 2025, was $332,223. The change in total operating expenses was primarily due to increased management salaries and Directors’ fees during the period.
Net loss for the period of September 21, 2023, to March 31, 2024, was ($148,014). Net loss for the year ended March 31, 2025, was ($330,985). The change in net loss was primarily due to increased management salaries and Directors’ fees during the period.
Capital Resources and Liquidity
For the period from September 21, 2023, to March 31, 2024, cash used by operating activities was $70,081. For the year ended March 31, 2025, cash used by operating activities was $191,027. The change in cash used by operating activities was primarily due to increased operating activity during the period.
Net cash used in investing activities for the period from September 21, 2023, to March 31, 2024, was $16,205. Net cash used in investing activities for the year ended March 31, 2025, was $5,685. The change in cash provided by investing activities is due primarily to a decrease in the purchase of equipment.
Net cash provided by financing activities for the period from September 21, 2023, to March 31, 2024, was $96,943. Cash provided by financing activities for the year ended March 31, 2025, was $186,505. The change in cash provided by financing activities is due primarily to proceeds received from the issuance of common stock and advances from Matthew Degelman, President.
As at March 31, 2024, we had $10,657 in cash. As at March 31, 2025, we had $450 in cash.
As at March 31, 2024, we had $72,114 in property and equipment, net. As at March 31, 2025, we had $59,903 in property and equipment, net. The change in property and equipment, net was primarily due to depreciation expense.
As at March 31, 2024, we had $1,914 in intangible assets, net. As at March 31, 2025, we had $4,908 in intangible assets, net. The change in intangible assets, net was primarily due to the costs associated with the Company’s website.
As at March 31, 2024, we had $17,831 in accounts payable and accrued expenses. As at March 31, 2025, we had $46,358 in accounts payable and accrued expenses. The change in accounts payable and accrued expenses was primarily due to increased accounts payable due for accounting and audit services.
As at March 31, 2024, we had $109,043 in advances payable - related party. As at March 31, 2025, we had $79,548 of advances payable - related party. The change in advances payable - related party was primarily due to increased loans from Matthew Degelman, President, and a reduction of $200,000 of advances payable to Matthew Degelman, President, to pay a subscription received for common stock.
As at March 31, 2024, we had $6,973 in contract liabilities. As at March 31, 2025, we had $5,929 in contract liabilities. The contract liabilities represents deferred revenues which are payments received from customers before the services were provided. The change in contract liabilities was primarily due to decreased operating activity during the period.
As at March 31, 2024, we had $2,468 in deferred rent. As at March 31, 2025, we had $0 in deferred rent. The change in deferred rent was primarily due to the lease being terminated.
As at March 31, 2024, we had $684 in sales tax payable. As at March 31, 2025, we had $725 in sales tax payable. The change in sales tax payable was primarily due to delays in paying sales tax payables.
Off Balance Sheet Arrangements
None
APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles used in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financials.
Long-Lived Assets
The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The test for impairment is required to be performed by management at least annually. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.
Stock-Based Compensation Expense
Stock-based compensation expense is measured at the grant date fair value of the award and is expensed over the requisite service period. For stock-based awards to employees, non-employees and directors, the Company calculates the fair value of the award on the date of grant using the Black-Scholes option pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in substance, multiple awards.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
As a smaller reporting company, we are not required to provide information required by this Item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data.
See financial statements included in Item 15 “Exhibits, Financial Statement Schedules” of this annual report.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
Our independent registered public accounting firm is Salberg & Company, P.A. There have not been any changes in or disagreements with our accountants on accounting, financial disclosure or any other matter.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures.
Within 90 days prior to the end of the period covered by this report the registrant carried out an evaluation of the effectiveness of the design and operation of disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This evaluation was done under the supervision and with the participation of registrants President and Principal Financial Officer. Based on that Evaluation he concluded that the registrant’s disclosure controls and procedures are not effective in gathering, analyzing and disclosing information needed to satisfy the registrant’s disclosure obligations under the Exchange Act due to the material weaknesses disclosed below.
There were no significant changes in the registrant’s disclosure control and procedure, in factors that could significantly affect those controls and procedures since their most recent evaluation.
Item 9A(T). Controls and Procedures
Our management is responsible for establishing and maintaining adequate internal control over financial report for the company. Internal control over financial reporting is to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; providing reasonable assurance that receipts and expenditures of company assets are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisition , use or disposition of company assets that could have a material effect on our financial statements would be prevented or detected.
As of March 31, 2025, management assessed the effectiveness of the Company’s internal control over financial reporting based on the criteria for effective internal control over financial reporting established in SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal control over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.
The matters involving internal controls and procedures that the Company’s management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee and lack of a majority of outside directors on the Company’s board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; (3) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (4) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by the Company’s Chief Financial Officer in connection with the audit of our financial statements as of March 31, 2025, and communicated to our management.
Management believes that the material weaknesses set forth in items (2), (3) and (4) above did not have an effect on the Company’s financial results. However, management believes that the lack of a functioning audit committee and lack of a majority of outside directors on the Company’s board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures can result in the Company’s determination to its financial statements for the future years.
We are committed to improving our financial organization. As part of this commitment, we will create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to the Company: i) Appointing one or more outside directors to our board of directors who shall be appointed to the audit committee of the Company resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures; and ii) Preparing and implementing sufficient written policies and checklists which will set forth procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements.
Management believes that the appointment of more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on the Company’s Board. In addition, management believes that preparing and implementing sufficient written policies and checklists will remedy the following material weaknesses (i) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (ii) ineffective controls over period end financial close and reporting processes. Further, management believes that the hiring of additional personnel who have the technical expertise and knowledge will result proper segregation of duties and provide more checks and balances within the department. Additional personnel will also provide the cross training needed to support the Company if personnel turn over issues within the department occur. This coupled with the appointment of additional outside directors will greatly decrease any control and procedure issues the company may encounter in the future.
We will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.
There have been no significant changes in our internal controls over financial reporting that occurred during the year ended March 31, 2025, that have materially affected or are reasonably likely to materially affect, our internal controls over financial reporting.
This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide management report in the Annual Report.

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ITEM 9B. OTHER INFORMATION
Item 9B. Other Information.
None

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers, Promoters and Control Persons.
All Directors of our company hold office until the next annual meeting of the stockholders or until their successors have been elected and qualified. The Officers of our company are appointed by our board of Directors and hold office until their death, resignation or removal from office. Our Directors and executive Officers, their ages, positions held, and duration as such, are as follows:
Name Position Held with our Company Age Date First Elected or
Appointed
Matthew Degelman President, Secretary, Treasurer and Director September 21, 2023
Max Lemos Vice-President and Director May 31, 2024
Business Experience
The following is a brief account of the education and business experience of each Director and Executive Officer during at least the past five years, indicating each person’s business experience, principal occupation during the period, and the name and principal business of the organization by which her was employed.
● Matthew Degelman President, Secretary, Treasurer and Director
Mr. Degelman, 29, has been our President and a Director since inception of the corporation in 2023. From 2022 to 2023, Mr. Degelman was President and Director of MedX Fit Tech Inc. From 2014 to 2020, Mr. Degelman held various management positions at Degelman Industries in Regina, Canada.
Mr. Degelman holds a Bachelor of Administration degree from the University of Regina, Canada.
● Max Lemos Vice President and Director
Mr. Lemos, 50, has been our Vice President since the inception of the corporation and a Director since May 2024. From 2005 to 2022, Mr. Lemos was Development Agent for Subway in Brazil. From 2023 to present, Mr. Lemos is a Subway Clinic multi-unit operator in the State of Rio de Janeiro, Brazil. From 2000 to 2003, Mr. Lemos was a Project Manager for a leading commercial construction company in Brazil.
Mr. Lemos holds a Bachelor of Science degree in Architecture and a Bachelor of Urban Planning degree from the University of Santa Ursula in Rio de Janeiro, Brazil.
Committees of the Board
We do not have a separate audit committee at this time. Our entire board of Directors acts as our audit committee.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11. Executive Compensation.
Medical Exercise Inc. has made no provisions for paying cash or non-cash compensation to either of its two Officers and Directors. No salaries are being paid at the present time, and none will be paid unless and until our operations generate sufficient cash flows.
The table below summarizes all compensation awarded to, earned by, or paid to our named Executive Officers and Directors for all services rendered in all capacities to us for their appointment for the period ended March 31, 2025.
Name and Principal Position Year Salary
($) Bonus
($) Stock
Awards
($) Option
Awards
($) Non-Equity
Incentive Plan
Compensation
($) Nonqualified
Deferred
Compensation
Earnings ($) All Other
Compensation
($) Total
($)
Matthew Degelman - President, Secretary, Treasurer, - - - - - - - -
and Director - - $ 100,000 - - - 12,000 112,000
Max Lemos - Vice-President - - - - - - - -
and Director - - - - - - 3,000 3,000
There are no other stock option plans, retirement, pension, or profit-sharing plans for the benefit of our Officers and Directors other than as described herein.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The following table sets forth certain information as of March 31, 2025 with respect to the holdings of: (1) each person known to us to be the beneficial owner of more than 5% of our Common Stock; (2) each of our Directors, nominees for Director and named Executive Officers; and (3) all Directors and Executive Officers as a group. To the best of our knowledge, each of the persons named in the table below as beneficially owning the shares set forth therein has sole voting power and sole investment power with respect to such shares, unless otherwise indicated. Unless otherwise specified, the address of each of the persons set forth below is in care of the Company, at the address of 7901 4th St N, Suite 300, St Petersburg, Florida, 33702.
Name and Address of Beneficial Owner Title of Class Amount and Nature of
Beneficial Ownership Percentage of
Class(1)
Matthew Degelman Common Stock 9,000,000 Direct 73.0 %
Max Lemos Common Stock 1,000,000 Direct 8.1 %
Directors and Executive Officers (2-as a group) Common Stock 10,000,000
81.1 %
(1) Based on 12,327,000 shares of our common stock outstanding as of the date hereof.
Description of Common Stock
We are currently authorized to issue up to 100,000,000 shares of capital stock consisting of: 100,000,000 shares of common stock, no par value. As of March 31, 2025, 12,327,000 shares of common stock were issued and outstanding.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13. Certain Relationships and Related Transactions, and Director Independence.
Currently, there are no contemplated transactions that the Company may enter into with our officers, directors or affiliates. If any such transactions are contemplated, we will file such disclosure in a timely manner with the Commission on the proper form making such transaction available for the public to view.
The Company has no formal written employment agreement or other contracts with our current officer and director and there is no assurance that the services to be provided by him will be available for any specific length of time in the future. Mr. Degelman and Mr. Lemos anticipate devoting at a minimum of fifty percent of their available time to the Company’s affairs. The amounts of compensation and other terms of any full-time employment arrangements would be determined, if and when, such arrangements become necessary.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accounting Fees and Services.
The following table sets forth the aggregate fees billed by Salberg & Company, P.A. for the years ended March 31:
Audit Fees $ 65,000 $ 32,000
Audit Related Fees $ 15,000 $ -
Tax Fees $ - $ -
All Other Fees $ - $ -
Total $ 80,000 $ 32,000
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits and Financial Statement Schedules.
(a) The following documents are filed as part of this Annual Report on Form 10-K:
1. Financial Statements:
Our financial statements and the Report of Independent Registered Public Accounting Firm are included herein on page.
2. Financial Statement Schedules:
The financial statement schedules are omitted as they are either not applicable or the information required is presented in the financial statements and notes thereto on page.
3. Exhibits:
INDEX TO EXHIBITS
Exhibit No.
Document Description
3.1*
Articles of Incorporation
3.2*
Bylaws
4.0
Description of Securities
23.1*
Consent of Salberg & Company, PA
31.1
Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1
Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
* Previously Filed