EDGAR 10-K Filing

Company CIK: 1512886
Filing Year: 2021
Filename: 1512886_10-K_2021_0001161697-21-000265.json

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ITEM 1. BUSINESS
ITEM 1. BUSINESS
Overview
Neutra Corp. was incorporated in Nevada on January 11, 2011 to market and participate in the nutraceutical space by bringing products derived from all natural and organic origins. On August 16, 2019, Neutra Corp. reincorporated in Wyoming.
Along with participating in the actual nutraceutical products, we plan to research and bring new technology to the nutraceutical space. Nutraceutical natural medicine is an alternative system that focuses on natural remedies and the body’s vital ability to heal and maintain itself. One of the nutraceutical sub-markets is the new thriving medical cannabis market, in which we intend to participate. We intend to entrust the manufacturing to a nutraceutical contractor to private label all of our products and to sell them under our unique brand. We have established a fiscal year end of January 31.
As the global cannabis market grows exponentially, it is constantly in need of better technologies and products to be more efficient in how it grows, what it grows and how it consumes cannabis and its related products. From lighting to dosage devices, from pesticide replacements to plant enhancers, Neutra Corp. is constantly combing the industry for the latest and greatest to test, prove and bring to market.
On January 23, 2018, we entered into an agreement with Artillery Labs to sell and market natural nutraceuticals online. The objective of this agreement is for the Company to have its own line of all natural and legal CBD products for sale through Artillery Labs’ online sales infrastructure. Under the terms of the agreement, Artillery Labs will be paid $25,000 upon the successful marketing launch of a product.
On August 30, 2019, we purchased all of the outstanding stock of Vivis Corporation, a Wyoming corporation, (“Vivis”) from Sydney Jim, our CEO. The purchase price for Vivis is $35,000 cash and a royalty of 40 percent of gross revenue until $100,000 is paid declining to 25 percent until an additional $100,000 has been paid. There will be a 10 percent royalty in perpetuity.
We have generated limited revenues to date and our activities have been primarily limited to developing our business plan and research and development of products. We will not have the necessary capital to fully develop or execute our business plan until we are able to secure additional financing. There can be no assurance that such financing will be available on suitable terms. We need to raise additional funds in order to implement our business plan. Our current cash on hand is insufficient to commercialize our products or fully develop our business strategy. If we are unable to raise adequate additional funds or if those funds are not available on terms that are acceptable to us, we will not be able to execute our business plan and we may cease operations.
Employees and Employment Agreements
We currently have 15 employees. We have employment agreements with our key employees.

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ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS
As a smaller reporting company, we are not required to provide the information required by this item.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS
As a smaller reporting company, we are not required to provide the information required by this item.

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ITEM 2. PROPERTIES
ITEM 2. PROPERTIES
We maintain our corporate offices at 54 Sugar Creek Center Blvd., Suite 200 Sugar Land, Texas 77478. Our telephone number is 702-793-4121. Our manufacturing facility is located in Katy, Texas.
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ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS
We know of no material, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder are an adverse party or has a material interest adverse to us.

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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 REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Our common stock began trading on the “Over the Counter” Bulletin Board (“OTC”) under the symbol “NTRR” in October 2011.
Holders
As of the date of this filing, there were 11 holders of record of our common stock.
Dividends
To date, we have not paid dividends on shares of our common stock and we do not expect to declare or pay dividends on shares of our common stock in the foreseeable future. The payment of any dividends will depend upon our future earnings, if any, our financial condition, and other factors deemed relevant by our Board of Directors.
Common Stock
We are authorized to issue unlimited shares of common stock, with a par value of $0.001. The closing price of our common stock on May 31, 2021, as quoted by OTC Markets Group, Inc., was $0.0043. There were 1,492,765,422 shares of common stock issued and outstanding as of January 31, 2021. All shares of common stock have one vote per share on all matters including election of directors, without provision for cumulative voting. The common stock is not redeemable and has no conversion or preemptive rights. The common stock currently outstanding is validly issued, fully paid and non-assessable. In the event of liquidation of the Company, the holders of common stock will share equally in any balance of the Company’s assets available for distribution to them after satisfaction of creditors and preferred shareholders, if any. The holders of the Company’s common are entitled to equal dividends and distributions per share with respect to the common stock when, as and if, declared by the Board of Directors from funds legally available.
Our Articles of Incorporation, our Bylaws, and the applicable statutes of the state of Wyoming contain a more complete description of the rights and liabilities of holders of our securities.
During the year ended January 31, 2021, there was no modification of any instruments defining the rights of holders of the Company’s common stock and no limitation or qualification of the rights evidenced by the Company’s common stock as a result of the issuance of any other class of securities or the modification thereof.
Non-cumulative voting
Holders of shares of our common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in that event, the holders of the remaining shares will not be able to elect any of our directors.
Securities Authorized for Issuance under Equity Compensation Plans
The following table shows the number of shares of common stock that could be issued upon exercise of outstanding options and warrants, the weighted average exercise price of the outstanding options and warrants, and the remaining shares available for future issuance as of January 31, 2021.
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Plan Category
Number of Securities to be issued upon exercise of outstanding options, warrants and rights
Weighted average exercise price of outstanding options, warrants and rights
Number of securities remaining available for future issuance
Equity compensation plans approved by security holders.
-
-
-
Equity compensation plans not approved by security holders.
-
-
-
Total
-
-
-
Preferred Stock
Our authorized preferred stock consists of 20,000,000 shares of $0.001 par value preferred stock. The Board of Directors is authorized to designate any series of preferred stock. Dividends, when, as and if declared by the Board of Directors, shall be paid out of funds at the time legally available for such purposes.
Series A Preferred Stock. In January 2020, our board of directors designated 50,000 shares of our preferred stock as Series A Preferred Stock which rank subordinate to all shares of common stock and do not have voting rights. The Series A Preferred Stock has a stated value of $5 per share. The Series A Preferred Stock is entitled to receive dividends of 10% of the net profit of VIVIS Corporation. The holders of the Series A Preferred Stock have the option to convert each share into 800 shares of common stock of the Company. As of January 31, 2021, there are 50,000 shares of Series A Preferred Stock outstanding.
Series B Preferred Stock. In July 2020, our board of directors designated 10,000 shares of our preferred stock as Series B Preferred Stock which rank subordinate to all shares of common stock and do not have voting rights. The Series B Preferred Stock has a stated value of $5 per share. The Series B Preferred Stock is entitled to receive dividends of 0.4% of the net profit of VIVIS Corporation. Holders of the Series B Preferred Stock have the option to convert each share into 800 shares of common stock. As of January 31, 2021, there are no shares of Series B Preferred Stock outstanding.
Series C Preferred Stock. In November 2020, our board of directors designated 40,000 shares of our preferred stock as Series C Preferred Stock which rank subordinate to all shares of common stock and do not have voting rights. The Series C Preferred Stock has a stated value of $5 per share. The Series C Preferred Stock is entitled to receive dividends of 10% of the net profit of VIVIS Corporation. After the Series C Preferred Stock has received cumulative dividends of $500,000, the dividend rate will reduce to 1%. Holders of the Series C Preferred Stock have the option to convert each share into 38 shares of common stock. As of January 31, 2021, there are no shares of Series C Preferred Stock outstanding.
Series E Preferred Stock. On November 13, 2015, our board of directors designated 1,000,000 shares of our preferred stock as Series E Preferred Stock. The Series E Preferred Stock is subordinated to our common stock. It does not receive dividends and does not participate in equity distributions. The Series E Preferred stock has 2 votes for each outstanding share of common stock in the company. As of the date of this report, there are 1,000,000 shares Series E Preferred Stock outstanding. Dividends, when, as and if declared by the Board of Directors, shall be paid out of funds at the time legally available for such purposes.
Series F Preferred Stock. On March 15, 2019, our board of directors designated 1,000,000 shares of our preferred stock as Series F Preferred Stock. The Series F Preferred Stock is subordinated to our common stock and superior to all shares of Preferred Stock. It does not receive dividends and does not participate in equity distributions. The Series F Preferred stock retains 2/3 of the voting rights in the company. During the year ended January 31, 2021, the Company issued 1,000,000 shares of Series F Preferred Stock to Sydney Jim, our CEO, in exchange for services. As of the date of this report, there are 1,000,000 shares Series E Preferred Stock outstanding.
Series G Preferred Stock. During the year ended January 31 2021, our board of directors designated 1,000,000 shares of our preferred stock as Series G Preferred Stock. The Series G convertible preferred stock has a stated value of $1.00 per share, carries no voting rights and earns dividends of 8% per annum on the stated value of the stock. Dividends are payable on liquidation, redemption or conversion. The Series G convertible preferred stock is redeemable at the option of the Company during the first nine months it is outstanding at a premium of between 3% and 33% depending on the date of redemption. After the stock has been outstanding for nine months, it is convertible into common stock of the Company at a 29% discount to the market value of the common stock. During the year ended January 31, 2021, we issued 271,800 shares of Series G convertible preferred stock and received cash proceeds of $230,000. During the year ended January 31, 2021, 115,500 shares of Series G convertible preferred stock were converted into 109,200,000 shares of our common stock. As of January 31, 2021, there were 156,300 shares of Series G convertible stock outstanding and $2,634 of accrued dividends payable.
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Recent Sales of Unregistered Securities
During the quarter ended January 31, 2021, the Company issued shares of common stock as a result of the conversion of Series G Convertible Preferred Stock, as detailed in the following table:
Date
Shares Converted
Number of Shares Issued
January 19, 2021
50,000
47,272,727
January 22, 2021
65,500
61,927,273
Total
115,500
109,200,000
The above transactions were exempt from registration per SEC Rule 144(a)(3).

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. SELECTED FINANCIAL DATA
As a smaller reporting company, we are not required to provide the information required by this item.

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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
THIS FILING CONTAINS FORWARD-LOOKING STATEMENTS. THE WORDS “ANTICIPATED,” “BELIEVE,” “EXPECT,” “PLAN,” “INTEND,” “SEEK,” “ESTIMATE,” “PROJECT,” “WILL,” “COULD,” “MAY,” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS INCLUDE, AMONG OTHERS, INFORMATION REGARDING FUTURE OPERATIONS, FUTURE CAPITAL EXPENDITURES, AND FUTURE NET CASH FLOW. SUCH STATEMENTS REFLECT THE COMPANY’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL PERFORMANCE AND INVOLVE RISKS AND UNCERTAINTIES, INCLUDING, WITHOUT LIMITATION, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN FOREIGN, POLITICAL, SOCIAL, AND ECONOMIC CONDITIONS, REGULATORY INITIATIVES AND COMPLIANCE WITH GOVERNMENTAL REGULATIONS, THE ABILITY TO ACHIEVE FURTHER MARKET PENETRATION AND ADDITIONAL CUSTOMERS, AND VARIOUS OTHER MATTERS, MANY OF WHICH ARE BEYOND THE COMPANY’S CONTROL. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES OCCUR, OR SHOULD UNDERLYING ASSUMPTIONS PROVE TO BE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY AND ADVERSELY FROM THOSE ANTICIPATED, BELIEVED, ESTIMATED, OR OTHERWISE INDICATED. CONSEQUENTLY, ALL OF THE FORWARD-LOOKING STATEMENTS MADE IN THIS FILING ARE QUALIFIED BY THESE CAUTIONARY STATEMENTS AND THERE CAN BE NO ASSURANCE OF THE ACTUAL RESULTS OR DEVELOPMENTS.
The following discussion and analysis of our financial condition and plan of operations should be read in conjunction with our financial statements and related notes appearing elsewhere herein. This discussion and analysis contains forward-looking statements including information about possible or assumed results of our financial conditions, operations, plans, objectives, and performance that involve risk, uncertainties, and assumptions. The actual results may differ materially from those anticipated in such forward-looking statements. For example, when we indicate that we expect to increase our product sales and potentially establish additional license relationships, these are forward-looking statements. The words expect, anticipate, estimate or similar expressions are also used to indicate forward-looking statements.
Background of our Company
Neutra Corp. was incorporated in Florida on January 11, 2011. On October 5, 2015, we reincorporated from Florida to Nevada. On August 16, 2019, Neutra Corp. reincorporated from Nevada to Wyoming. The reincorporation was approved by our board of directors and by a majority of the holders of voting rights in our stock. Our authorized shares increased to unlimited shares of common stock and 20,000,000 shares of preferred stock.
We have established a fiscal year end of January 31.
As the global cannabis market grows exponentially, it is constantly in need of better technologies and products to be more efficient in how it grows, what it grows and how it consumes cannabis and its related products. From lighting to dosage devices, from pesticide replacements to plant enhancers, Neutra Corp. is constantly combing the industry for the latest and greatest to test, prove and bring to market.
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We have generated limited revenues to date and our activities have been limited primarily to developing our business plan and research and development of products. We will not have the necessary capital to fully develop or execute our business plan until we are able to secure additional financing. There can be no assurance that such financing will be available on suitable terms. We need to raise additional funds in order to implement our business plan. Our current cash on hand is insufficient to commercialize our products or fully develop our business strategy. If we are unable to raise adequate additional funds or if those funds are not available on terms that are acceptable to us, we will not be able to execute our business plan and we may cease operations.
Plan of Operations
We believe we do not have adequate funds to fully execute our business plan for the next twelve months unless we obtain additional funding. However, should we not raise this capital, we will allocate our funding to first assure that all State, Federal and SEC requirements are met.
As of January 31, 2021, we had cash on hand of $23,308.
We intend to pursue capital through public or private financing, as well as borrowing and other sources in order to finance our business activities. We cannot guarantee that additional funding will be available on favorable terms, if at all. If adequate funds are not available, then our ability to continue our operations may be significantly hindered.
Results of Operations
We incurred a net loss of $538,892 for the year ended January 31, 2021. We had a working capital deficit of $977,000 as of January 31, 2021. We do not anticipate having positive net income in the immediate future. Net cash used by operating activities for the year ended January 31, 2021 was $412,378.
We continue to rely on advances to fund operating shortfalls and do not foresee a change in this situation in the immediate future. There can be no assurance that we will continue to have such advances available. We will not be able to continue operations without them. We are pursuing alternate sources of financing, but there is no assurance that additional capital will be available to the Company when needed or on acceptable terms.
Fiscal year ended January 31, 2021 compared to the fiscal year ended January 31, 2020.
Revenue
We recognized revenue of $9,687 and $6,395 for the years ended January 31, 2021 and 2020, respectively. Revenue was generated from the sale of our CBD sports creams and other products.
Cost of Goods Sold
We incurred cost of goods sold of $42,944 for the year ended January 31, 2021.
Depreciation
We recognized depreciation of $30,666 for the years ended January 31, 2021 as a result of the acquisition of property and equipment during the period.
General and Administrative Expenses
We recognized general and administrative expenses in the amount of $414,742 and $400,640 for the years ended January 31, 2021 and 2020, respectively.
Interest Expense
Interest expense decreased from $340,701 for the year ended January 31, 2020 to $121,648 for the year ended January 31, 2021 as a result of the decrease in convertible notes payable.
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Net Loss
We incurred a net loss of $538,892 for the year ended January 31, 2021 as compared to $695,621 for the comparable period of 2020. The decrease in the net loss was primarily the result of lower interest expense as discussed above.
Liquidity and Capital Resources
As of the date of this filing, we had yet to generate significant revenues from our business operations.
We anticipate needing additional financing to fund our operations and to effectively execute our business plan over the next eighteen months. Currently available cash is not sufficient to allow us to commence full execution of our business plan. Our business expansion will require significant capital resources that may be funded through the issuance of common stock or of notes payable or other debt arrangements that may affect our debt structure. Despite our current financial status, we believe that we may be able to issue notes payable or debt instruments in order to start executing our business plan. However, there can be no assurance that we will be able to raise money in this fashion and have not entered into any agreements that would obligate a third party to provide us with capital.
We raised the cash amounts to be used in these activities from convertible notes payable. We currently have negative working capital of $977,000.
As of January 31, 2021, we had $23,308 of cash on hand. This amount of cash will be adequate to fund our operations for less than twelve months.
We have no known demands or commitments and are not aware of any events or uncertainties as of January 31, 2021 that will result in or that are reasonably likely to materially increase or decrease our current liquidity.
Capital Resources
We had no material commitments for capital expenditures as of January 31, 2021 and 2020. However, should we execute our business plan as anticipated, we would incur substantial capital expenditures and require financing in addition to what is required to fund our present operation.
Additional Financing
Additional financing is required to continue operations. Although actively searching for available capital, the Company does not have any current arrangements for additional outside sources of financing and cannot provide any assurance that such financing will be available.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
Critical Accounting Policies and Estimates
We prepare our financial statements in conformity with GAAP, which requires management to make certain estimates and assumptions and apply judgments. We base our estimates and judgments on historical experience, current trends, and other factors that management believes to be important at the time the financial statements are prepared; actual results could differ from our estimates and such differences could be material. We have identified below the critical accounting policies, which are assumptions made by management about matters that are highly uncertain and that are of critical importance in the presentation of our financial position, results of operations and cash flows. Due to the need to make estimates about the effect of matters that are inherently uncertain, materially different amounts could be reported under different conditions or using different assumptions. On a regular basis, we review our critical accounting policies and how they are applied in the preparation our financial statements.
USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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GOING CONCERN - The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the year ended January 31, 2021, the Company had a net loss of $538,892 and generated negative cash flow from operations in the amount of $412,378. In view of these matters, the Company’s ability to continue as a going concern is dependent upon its ability to achieve a level of profitability or to obtain additional capital to finance its operations. The Company intends on financing its future activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
New Accounting Pronouncements
For a description of recent accounting standards, including the expected dates of adoption and estimated effects, if any, on our financial statements, see “Note 3: Significant Accounting Polices: Recently Issued Accounting Pronouncements” in Part II, Item 8 of this Form 10-K.

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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 the information required by this item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Neutra Corp.
Consolidated Financial Statements
January 31, 2021
Contents
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets
Consolidated Statements of Operations
Consolidated Statement of Change in Stockholders’ Deficit
Consolidated Statement of Change in Mezzanine Equity
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and
Stockholders of Neutra Corp.
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Neutra Corp. (the Company) as of January 31, 2021 and 2020 and the related statements of operations, stockholders’ deficit, and cash flows for each of the years in the two-year period ended January 31, 2021, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of January 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the two-year period ended January 31, 2021, in conformity with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying financial states have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company suffered a net loss from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate.
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Equity Transactions
As discussed in Note 3 to the financial statements, the company issues convertible preferred stock. The proper classification of preferred stock requires significant management judgement.
To evaluate the appropriateness of the classification determined by management, we examined and evaluated the preferred share agreement used in determining the classification of the convertible preferred shares issued.
/s/ M&K CPAS, PLLC
We have served as the Company’s auditor since 2014.
Houston, TX
May 17, 2021
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NEUTRA CORP.
CONSOLIDATED BALANCE SHEETS
January 31, 2021
January 31, 2020
ASSETS
CURRENT ASSETS
Cash
$
23,308
$
177,176
Deposits
1,610
1,658
Accounts receivable
-
Inventory
-
3,500
Total current assets
24,943
182,334
Property and equipment, net
165,824
-
TOTAL ASSETS
$
190,767
$
182,334
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses
$
426,482
$
410,620
Accounts payable, related party
131,755
131,755
Advances payable
3,450
3,450
Advances payable to related party
16,236
-
Dividends payable on Series G preferred stock
2,634
-
Convertible notes payable, in default
239,711
288,997
Current portion of convertible notes payable, net of discount of $- and $72,621, respectively
-
23,379
Current portion of accrued interest payable
181,675
173,623
Total current liabilities
1,001,943
1,031,824
TOTAL LIABILITIES
1,001,943
1,031,824
COMMITMENTS AND CONTINGENCIES
-
-
MEZZANINE EQUITY
Series G preferred stock; $1.00 stated value; 156,300 shares outstanding at January 31, 2021
156,300
-
STOCKHOLDERS’ DEFICIT
Common stock, $0.001 par value; unlimited shares authorized; 1,492,765,422 and 616,198,035 shares issued and outstanding at January 31, 2021 and January 31, 2020, respectively
1,492,765
616,198
Preferred stock; $0.001 par value; 20,000,000 shares authorized:
Convertible preferred stock; 50,000 shares issued and outstanding at January 31, 2021; convertible into 100,000 shares of common stock
Series E preferred stock, 1,000,000 shares issued and outstanding at January 31, 2021 and January 31, 2020
1,000
1,000
Series F preferred stock; 1,000,000 shares issued and outstanding at January 31, 2021
1,000
1,000
Additional paid-in capital
7,427,709
8,091,570
Preferred stock payable
250,000
-
Accumulated deficit
(10,140,000
)
(9,559,308
)
Total stockholders’ deficit
(967,476
)
(849,490
)
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT
$
190,767
$
182,334
The accompany notes are an integral part of these consolidated financial statements.
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NEUTRA CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended
January 31,
REVENUE
$
9,687
$
6,395
COST OF GOODS SOLD
42,944
-
GROSS MARGIN
(33,257
)
6,395
OPERATING EXPENSES
General and administrative expenses
414,742
400,640
Depreciation
30,666
-
LOSS FROM OPERATIONS
(478,665
)
(394,245
)
OTHER INCOME (EXPENSE)
Interest expense
(121,648
)
(340,701
)
Gain on settlement of debt
61,421
74,325
Loss on acquisition of VIVIS
-
(35,000
Other income
-
-
Total other income (expense)
(60,227
)
(301,376
)
NET LOSS
$
(538,892
)
$
(695,621
)
Deemed dividend on preferred stock
(41,800
)
-
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
$
(580,692
)
$
(695,621
)
NET LOSS PER COMMON SHARE - Basic and fully diluted
$
(0.00
)
$
(0.00
)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and fully diluted
1,192,972,593
241,537,039
The accompany notes are an integral part of these consolidated financial statements.
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NEUTRA CORP.
CONSOLIDATED STATEMENT OF CHANGE IN STOCKHOLDERS’ DEFICIT
Common Stock
Series A
Convertible
Preferred Stock
Series E
Preferred Stock
Series F
Preferred Stock
Additional
Paid-In
Accumulated
Stock subscribed but not
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Deficit
Issued
Total
BALANCE,
January 31, 2019
34,126,329
$
34,126
-
$
-
1,000,000
$
1,000
-
$
-
$
7,722,991
$
(8,863,687
)
$
-
$
(1,105,570
)
Common stock issued for debt conversion
582,071,707
582,072
-
-
-
-
-
-
(120,301
)
-
-
461,771
Preferred stock issued for cash
-
-
50,000
-
-
-
-
249,950
-
-
250,000
Preferred stock issued for services
-
-
-
-
-
-
1,000,000
1,000
88,930
-
-
89,930
Beneficial conversion discount on convertible note payable
-
-
-
-
-
-
-
-
150,000
-
-
150,000
Net loss
-
-
-
-
-
-
-
-
-
(695,621
)
-
(695,621
)
BALANCE,
January 31, 2020
616,198,035
$
616,198
50,000
$
1,000,000
$
1,000
1,000,000
$
1,000
$
8,091,570
$
(9,559,308
)
$
-
$
(849,490
)
Common stock issued for debt conversion
767,367,387
767,367
-
-
-
-
-
-
(667,527
)
-
-
99,840
Common stock issued for preferred stock conversion
109,200,000
109,200
-
-
-
-
-
-
11,330
-
-
120,530
Cash received for stock subscription
-
-
-
-
-
-
-
-
-
-
250,000
250,000
Dividends on Series G convertible preferred stock
-
-
-
-
-
-
-
-
(7,664
)
-
-
(7,664
)
Deemed dividend on Series G convertible preferred stock
-
-
-
-
-
-
-
-
-
(41,800
)
-
(41,800
)
Net loss
-
-
-
-
-
-
-
-
-
(538,892
)
-
(538,892
)
BALANCE,
January 31, 2021
1,492,765,422
$
1,492,765
50,000
$
1,000,000
$
1,000
1,000,000
$
1,000
$
7,427,709
$
(10,140,000
)
$
250,000
$
(967,476
)
The accompany notes are an integral part of these consolidated financial statements.
- 16 -
NEUTRA CORP.
CONSOLIDATED STATEMENT OF CHANGE IN MEZZANINE EQUITY
Series G Preferred Stock
Shares
Amount
Balance, January 31, 2020
-
$
-
Series G preferred stock issued for cash
271,800
271,800
Series G preferred stock converted to common stock
(115,500
)
(115,500
)
Balance, January 31, 2021
156,300
$
156,300
The accompany notes are an integral part of these consolidated financial statements.
- 17 -
NEUTRA CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended January 31,
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(538,892
)
$
(695,621
)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on convertible note payable
72,621
233,681
Depreciation
30,666
-
Gain on settlement of convertible note payable
(61,421
)
(74,325
)
Preferred stock issued for services
-
89,930
Changes in operating assets and liabilities:
Deposits
161,938
Accounts receivable
(25
)
-
Inventory
3,500
(3,500
)
Accounts payable and accrued liabilities
32,098
Accrued interest payable
49,027
106,088
NET CASH USED IN OPERATING ACTIVITIES
(412,378
)
(181,607
)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
(196,490
)
-
NET CASH USED IN INVESTING ACTIVITIES
(196,490
)
-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable
-
150,000
Proceeds from mezzanine equity
230,000
-
Proceeds from preferred stock payable
250,000
-
Repayments of convertible notes payable
(25,000
)
(41,217
)
Proceeds from sale of preferred stock
-
250,000
NET CASH PROVIDED BY FINANCING ACTIVITIES
455,000
358,783
NET (DECREASE) INCREASE IN CASH
(153,868
)
177,176
CASH, at the beginning of the period
177,176
-
CASH, at the end of the period
$
23,308
$
177,176
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest
$
-
$
Taxes
$
-
$
-
Noncash investing and financing transaction:
Beneficial conversion discount on convertible note payable
$
-
$
150,000
Original issue discounts on convertible notes payable
$
-
$
9,000
Conversion of convertible notes payable and accrued interest
$
99,840
$
461,771
Conversion of mezzanine equity
$
120,530
$
-
Deemed dividend on mezzanine equity
$
41,800
$
-
The accompany notes are an integral part of these consolidated financial statements.
- 18 -
NEUTRA CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2021
Note 1. Background Information
Neutra Corp. was incorporated in Nevada on January 11, 2011 to market and participate in the nutraceutical space by bringing products derived from all natural and organic origins. Along with participating in the actual nutraceutical products, we plan to research and bring new technology to the nutraceutical space. Nutraceutical natural medicine is an alternative system that focuses on natural remedies and the body’s vital ability to heal and maintain itself. One of the nutraceutical sub-markets is the new thriving medical cannabis market, in which we intend to participate. We intend to entrust the manufacturing to a nutraceutical contractor to private label all of our products and to sell them under our unique brand. We have established a fiscal year end of January 31.
As the global cannabis market grows exponentially, it is constantly in need of better technologies and products to be more efficient in how it grows, what it grows and how it consumes cannabis and its related products. From lighting to dosage devices, from pesticide replacements to plant enhancers, Neutra Corp. is constantly combing the industry for the latest and greatest to test, prove and bring to market.
We have generated limited revenues to date and our activities have been primarily limited to developing our business plan and research and development of products. We will not have the necessary capital to fully develop or execute our business plan until we are able to secure additional financing. There can be no assurance that such financing will be available on suitable terms. We need to raise additional funds in order to implement our business plan. Our current cash on hand is insufficient to commercialize our products or fully develop our business strategy. If we are unable to raise adequate additional funds or if those funds are not available on terms that are acceptable to us, we will not be able to execute our business plan and we may cease operations.
Note 2. Going Concern
For the fiscal year ended January 31, 2021, the Company had a net loss of $538,892 and negative cash flow from operations of $412,378. As of January 31, 2021, the Company has negative working capital of $977,000.
These factors raise a substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.
The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.
Management has plans to address the Company’s financial situation as follows:
In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raises doubts about the Company’s ability to continue as a going concern.
In the long term, management believes that the Company’s projects and initiatives will be successful and will provide cash flow to the Company that will be used to finance the Company’s future growth. However, there can be no assurances that the Company’s planned activities will be successful, or that the Company will ultimately attain profitability. The Company’s long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations.
Note 3. Significant Accounting Policies
The significant accounting policies that the Company follows are:
- 19 -
Basis of Presentation
The consolidated financial statements and related disclosures have been prepared pursuant to the rules and regulations of the SEC. The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Consolidated Financial Statements
The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries, Diamond Anvil Designs, LLC and Vivis Corporation, from the date of their formations or acquisition. Significant intercompany transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. Cash and cash equivalents were $23,308 and $177,176 at January 31, 2021 and 2020, respectively.
Cash Flow Reporting
The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period.
Deposits
Deposits represent cash on deposit with the Company’s attorney.
Property and Equipment, net
Property and equipment consist of equipment used to manufacture the Company’s products and is presented at cost. Depreciation is recognized over the useful life of the equipment on a straight-line basis over three years beginning when the asset is put in service. For the year ended January 31, 2021, the Company recognized depreciation expense of $30,666. The Company did not record any depreciation expense during the year ended January 31, 2020.
Impairment of long-lived assets
Long-lived assets, including fixed assets and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value. The Company determined that there was no impairment of long-lived assets during the years ended January 31, 2021 and 2020.
- 20 -
Common stock
The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied.
Mezzanine equity
Where ordinary or preferred shares are determined to be conditionally redeemable upon the occurrence of certain events that are not solely within the control of the issuer, and upon such event, the shares would become redeemable at the option of the holders, they are classified as ‘mezzanine equity’ (temporary equity). The purpose of this classification is to convey that such a security may not be permanently part of equity and could result in a demand for cash, securities or other assets of the entity in the future.
Revenue Recognition
On February 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, and the related guidance in ASC 340 40 (collectively, the new revenue standard) using the modified retrospective method applied to those contracts which were not completed as of February 1, 2018. Under the modified retrospective method, the Company recognizes the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings; however, no adjustment was required as a result of adopting the new revenue standard. Results for reporting periods beginning after February 1, 2019 are presented under the new revenue standard. The comparative information has not been restated.
ASC 606 requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For the year ended January 31, 2021, revenue from contracts with customers was $9,687.
Income Taxes
The Company accounts for income taxes under ASC 740 Income Taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized as of January 31, 2021 and 2020, respectively.
Earnings (Loss) per Common Share
We compute basic and diluted earnings per common share amounts in accordance with ASC Topic 260, Earnings per Share. The basic earnings (loss) per common share are calculated by dividing our net income available to common shareholders by the weighted average number of common shares outstanding during the year. The diluted earnings (loss) per common share are calculated by dividing our net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. There are no dilutive shares outstanding for any periods reported.
Financial Instruments
The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period between the origination of these instruments and their expected realization.
FASB Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
- 21 -
Level 1 -
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2 -
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 -
Inputs that are both significant to the fair value measurement and unobservable.
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of January 31, 2021 and 2020. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, and accrued expenses. The fair value of the Company’s notes payable is estimated based on current rates that would be available for debt of similar terms that is not significantly different from its stated value.
Commitments and Contingencies
The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no known commitments or contingencies as of January 31, 2021 and January 31, 2020.
Subsequent events
The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.
Recently Adopted Accounting Pronouncements
In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify certain disclosure requirements of fair value measurements. The Company adopted this update effective February 1, 2020. The adoption of the Update did not have an impact on the Company’s financial position or results of operations.
In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. The Company adopted this Update effective February 1, 2020. The Company currently does not have any goodwill. The adoption of ASU No. 2017-04 did not have an impact on the Company’s financial statements.
In January 2017, the FASB issued ASU No. 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The Company adopted this update effective February 1, 2019. The adoption did not have an impact on the Company’s financial statements.
- 22 -
Note 4. Deposits
Deposits represent cash on deposit with the Company’s attorney. As of January 31, 2021 and January 31, 2020, the Company had amounts on deposit with its attorney in the amount of $1,610 and $1,658, respectively.
Note 5. Property and equipment, net
Property and equipment consist of the following:
January 31, 2021
January 31, 2020
Equipment
$
196,490
$
-
Total property and equipment
196,490
-
Less: accumulated depreciation
(30,666
)
-
Property and equipment, net
$
165,824
$
-
Note 6. Related Party Transactions
During the year ended January 31, 2020, we incurred and paid salary expense of $76,000, related to services provided by our former CEO Christopher Brown.
During the years ended January 31, 2021 and 2020, we incurred and paid salary expense of $100,000 and $91,666, respectively, to our CEO, Sydney Jim. As of January 31, 2021, we owe Mr. Jim $56,621.
Acquisition of Vivis
Effective August 30, 2019, the Company entered into an agreement to purchase all of the outstanding stock of Vivis Corporation, a Wyoming corporation, (“Vivis”) from Sydney Jim, the Company’s CEO. The purchase price for Vivis is $35,000 cash and a royalty of 40 percent of gross revenue until $100,000 is paid declining to 25 percent until an additional $100,000 has been paid. There will be a 10 percent royalty in perpetuity. Since this transaction involves our CEO, it will be accounted for as a related party transaction. The assets acquired in the acquisition of Vivis were valued at $0 for accounting purposes. For the year ended January 31, 2020, we recognized a loss on acquisition of Vivis of $35,000.
The acquisition of Vivis was accounted for as an asset acquisition according to ASC 805-10 Business Combinations. The primary asset held by Vivis at the date of the acquisition was inventory.
Note 7. Advances
As of January 31, 2021 and 2020, we had amounts due under advances of $3,450 at each period. These advances are not collateralized, non-interest bearing and are due on demand.
Note 8. Income Taxes
There is no current or deferred income tax expense or benefit for the year ended January 31, 2021 and 2020. As of January 31, 2021, the Company has a total deferred tax asset of $758,885 which is offset by an equal valuation allowance, resulting in a net deferred tax asset of $0.
The statutory tax rate for the years ended January 31, 2021 and 2020 was 21%. The provision for income taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The items causing this difference for the periods ended January 31, 2021 and 2020 are as follows.
Tax benefit at U.S. statutory rate
$
113,167
$
146,080
less: amortization of beneficial conversion feature
(15,250
)
(49,073
)
less: valuation allowance
(97,917
)
(97,007
)
Tax benefit, net
$
-
$
-
We have net operating loss carryforwards of approximately $3,613,738 as of January 31, 2021. This generated a deferred tax asset of $758,885 which is fully allowed for.
- 23 -
Note 9. Convertible Notes Payable
Convertible notes payable consists of the following as of January 31, 2021 and 2020:
January 31, 2021
January 31, 2020
Convertible note, dated October 31, 2015, bearing interest at 10% per annum, bearing default interest at 25% per annum, matured on October 31, 2018 and convertible into shares of common stock at $0.50 per share, in default
156,976
156,976
Convertible note, dated January 31, 2016, bearing interest at 10% per annum, bearing default interest at 25% per annum, matured on January 31, 2020 and convertible into shares of common stock at a 60% discount to the market price, in default
82,735
82,735
Convertible note, dated May 26, 2016, bearing interest at 10% per annum, bearing default interest at 25% per annum, matured on May 26, 2017, and convertible into shares of common stock at a 45% discount to the market price, in default
-
49,286
Convertible note, dated August 6, 2019, bearing interest at 8% per annum, bearing default interest at 22% per annum, maturing July 31, 2020, and convertible into shares of common stock at a 39% discount to the lowest trading price in the 15 days prior to the conversion with a floor on the conversion price of $0.00005
-
53,000
Convertible note, dated November 4, 2019, bearing interest at 8% per annum, bearing default interest at 22% per annum, maturing November 4, 2020, and convertible into shares of common stock at a 39% discount to the lowest trading price in the 15 days prior to the conversion with a floor on the conversion price of $0.00005
-
43,000
Total convertible notes payable
$
239,711
$
384,997
Less: discount on current convertible notes payable
-
(72,621
)
Less: convertible notes payable, in default
(239,711
)
(288,997
)
Current convertible notes payable, net of discount
$
-
$
23,379
Convertible Promissory Notes Issued for Cash
On May 21, 2019, we issued a convertible promissory note to a third party for cash proceeds of $60,000. The note is in the amount of $63,000, and it matures on March 21, 2020. The note bears interest at 8% and default interest at 22% per year. The note is convertible into shares of our common stock at a 39% discount to our lowest bid price over the preceding 15 days with a floor on the conversion price of $0.00005.
On August 6, 2019, we issued a convertible promissory note to a third party for cash proceeds of $50,000. The note is in the amount of $53,000, and it matures on July 31, 2020. The note bears interest at 8% per year and is convertible into shares of our common stock at a 39% discount to our lowest trading price over the preceding 15 days with a floor on the conversion price of $0.00005.
On November 4, 2019, we issued a convertible promissory note to a third party for cash proceeds of $40,000. The note is in the amount of $43,000, and it matures on November 4, 2020. The note bears interest at 8% per year and is convertible into shares of our common stock at a 39% discount to our lowest trading price over the preceding 15 days with a floor on the conversion price of $0.00005.
We evaluated the terms of the note in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. We determined that the conversion features did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. We then evaluated the conversion feature for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the note and was deemed to be less than the market value of underlying common stock at the inception of the note. Therefore, we recognized beneficial conversion discount of $60,000 on May 21, 2019, a beneficial conversion discount of $50,000 on August 6, 2019, and a beneficial conversion discount of $40,000 on November 4, 2019. We recorded the beneficial conversion discount as an increase in additional paid-in capital and a discount to the Convertible Notes Payable. Discounts to the Convertible Notes Payable are amortized to interest expense using the effective interest method over the life of the respective notes.
During the years ended January 31, 2021 and 2020, we recorded amortization of discounts on convertible notes payable and recognized interest expense of $72,621 and $233,681, respectively.
- 24 -
Conversions to Common Stock
During the year ended January 31, 2021, the holders of our convertible promissory notes converted $99,840 of principal and accrued interest into 767,367,387 shares of our common stock.
During the year ended January 31, 2020, the holders of our convertible notes converted $461,771 of principal and accrued interest into 582,071,707 shares of our common stock.
See Note 10 for a detail of the conversions. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement which provided for conversion.
Settlement of Convertible Note Payable
During the year ended January 31, 2021, the Company paid $25,000 to fully settle the convertible note payable dated May 26, 2016. At the time of the settlement, outstanding principal was $49,286 and accrued interest was $37,135. The Company recognized a gain on settlement of convertible note payable of $61,421 during the year ended January 31, 2021. As a part of the settlement, the holder of the remaining notes dated October 31, 2015 and January 31, 2016 agreed that it will not request conversion of any convertible notes payable through December 31, 2020.
During the year ended January 31, 2020, the Company paid $40,000 to fully settle the convertible note payable dated July 31, 2015. At the time of the settlement, outstanding principal was $72,640 and accrued interest was $41,685. The Company recognized a gain on settlement of convertible note payable of $74,325 during the year ended January 31, 2020.
Note 10. Shareholders’ Equity
Reincorporation
On August 16, 2019, the Company reincorporated from Nevada to Wyoming. The reincorporation was approved by its board of directors and by the holders of a majority of the voting rights for its common stock. There was no change in share ownership as a result of the reincorporation. Authorized shares in the Wyoming corporation are unlimited shares of common stock and 20,000,000 shares of preferred stock.
Preferred stock subscribed and unissued
During the year ended January 31, 2021, the Company received $250,000 for the subscription of preferred stock. These shares have not been issued as of January 31, 2021. The $250,000 proceeds were included as preferred stock subscribed but not issued in the consolidated balance sheet as of January 31, 2021.
Series F preferred stock issued for services
On March 15, 2019, we issued 1,000,000 shares of Series F Preferred Stock to Mr. Jim for services. The shares were valued at $89,930 based on a third-party valuation of stock on the date of issuance. The shares were valued at $89,930 based on a third-party estimate of the fair market value of the stock on the date of issuance.
The Series F Preferred Stock is subordinated to our common stock and superior to all shares of Preferred Stock. It does not receive dividends and does not participate in equity distributions. The Series F Preferred stock retains 2/3 of the voting rights in the company.
- 25 -
Series E preferred stock issued for services
On November 13, 2015, our board of directors designated 1,000,000 shares of our preferred stock as Series E Preferred Stock. The Series E Preferred Stock is subordinated to our common stock. It does not receive dividends and does not participate in equity distributions. The Series E Preferred stock has 2 votes for each outstanding share of common stock in the company. As of January 31, 2021, there are 1,000,000 shares Series E Preferred Stock outstanding. Dividends, when, as and if declared by the Board of Directors, shall be paid out of funds at the time legally available for such purposes.
Series G convertible preferred stock
During the year ended January 31, 2021, the Company issued 271,800 shares of Series G convertible preferred stock and received cash proceeds of $230,000. The Series G convertible preferred stock has a stated value of $1.00 per share, carries no voting rights and earns dividends of 8% per annum on the stated value of the stock. Dividends are payable on liquidation, redemption or conversion. The Series G convertible preferred stock is redeemable at the option of the Company during the first nine months it is outstanding at a premium of between 3% and 33% depending on the date of redemption. After the stock has been outstanding for nine months, it is convertible into common stock of the Company at a 29% discount to the market value of the common stock. The Series G convertible preferred stock is included in mezzanine equity on the condensed consolidated balance sheet, because it is redeemable by the holders upon certain events of default which are not within the Company’s control. The $41,800 difference between the stated value of the stock and the proceeds received has been recognized as a deemed dividend to the preferred shareholders. During the year ended January 31, 2021, the Company accrued dividends of $7,664.
Convertible preferred stock issued for services
In January 2020, our board of directors designated 50,000 shares of our preferred stock as Convertible Preferred Stock. The Convertible Preferred Stock is entitled to receive dividends of 10% of the net profit of VIVIS Corporation. After the Convertible Preferred Stock has received cumulative dividends of $1,100,000, the dividend rate will reduce to 2%. The Convertible Preferred Stock is convertible into 100,000 post reverse shares of common stock of the Company. During the year ended January 31, 2021, the Company issued 50,000 shares of Convertible Preferred Stock and received cash proceeds of $250,000.
Conversions to common stock - convertible notes payable
During year ended January 31, 2021, the holders of our convertible notes elected to convert principal and interest into shares of common stock as detailed below:
Date
Amount
Converted
Number of
Shares Issued
March 3, 2020
$
9,500
30,645,161
March 20, 2020
5,800
32,222,222
April 1, 2020
3,800
31,666,667
April 3, 2020
3,800
31,666,667
April 13, 2020
3,800
31,666,667
April 16, 2020
4,400
36,666,667
April 20, 2020
4,800
40,000,000
April 24, 2020
4,800
40,000,000
April 27, 2020
4,800
40,000,000
May 7, 2020
4,800
40,000,000
May 11, 2020
4,820
40,166,667
May 13, 2020
4,800
40,000,000
May 18, 2020
6,200
51,666,667
May 20, 2020
6,200
51,666,667
May 21, 2020
6,200
51,666,667
May 26, 2020
6,200
51,666,667
May 26, 2020
6,200
51,666,667
May 27, 2020
6,200
51,666,667
May 27, 2020
2,720
22,666,667
Total
$
99,840
767,367,387
- 26 -
During year ended January 31, 2020, the holders of our convertible notes elected to convert principal and interest into shares of common stock as detailed below:
Date
Amount
Converted
Number of
Shares Issued
February 21, 2019
$
10,856
981,959
March 7, 2019
10,889
989,899
March 28, 2019
8,748
1,060,417
April 9, 2019
7,296
1,326,599
April 30, 2019
11,009
2,042,466
May 9, 2019
10,000
1,639,344
May 17, 2019
8,600
2,000,000
May 20, 2019
8,600
2,000,000
May 28, 2019
7,750
2,236,589
May 31, 2019
8,200
2,000,000
June 3, 2019
8,200
2,000,000
June 5, 2019
6,800
2,000,000
June 5, 2019
7,761
2,565,511
June 7, 2019
6,600
2,000,000
June 10, 2019
6,000
2,000,000
June 12, 2019
7,773
5,047,474
June 12, 2019
4,600
2,000,000
June 13, 2019
6,900
3,000,000
June 13, 2019
7,800
3,391,304
June 14, 2019
7,800
3,391,304
June 14, 2019
7,404
5,049,494
June 17, 2019
5,300
4,076,923
June 18, 2019
5,300
4,076,923
June 18, 2019
5,942
5,144,165
June 20, 2019
4,900
4,083,333
June 21, 2019
1,520
1,551,020
June 21, 2019
8,428
9,577,773
July 1, 2019
4,700
4,795,918
July 1, 2019
4,700
4,795,918
July 2, 2019
4,700
4,795,918
July 3, 2019
4,700
4,795,918
July 8, 2019
6,300
6,428,571
July 8, 2019
6,200
6,326,531
July 9, 2019
6,300
6,428,571
July 10, 2019
1,920
2,086,957
July 23, 2019
9,122
13,820,803
July 26, 2019
8,278
12,543,030
August 1, 2019
8,608
13,041,818
August 12, 2019
13,527
18,918,755
August 21, 2019
11,741
15,247,623
August 29, 2019
11,491
16,070,713
September 3, 2019
11,496
16,077,622
September 6, 2019
11,456
16,022,559
September 12, 2019
11,792
16,492,308
September 25, 2019
10,000
25,000,000
September 26, 2019
12,684
28,826,568
October 4, 2019
10,930
33,122,485
October 11, 2019
6,471
19,608,091
October 16, 2019
8,700
29,000,000
October 24, 2019
9,462
28,671,727
December 6, 2019
9,700
22,558,140
December 6, 2019
9,700
22,558,140
December 9, 2019
9,700
22,558,140
December 11, 2019
11,100
25,813,953
December 24, 2019
9,600
25,945,946
December 27, 2019
9,600
25,945,946
December 28, 2019
6,117
16,540,541
Total
$
461,771
582,071,707
- 27 -
During the year ended January 31, 2020, the holders of our convertible notes elected to convert principal and interest into shares of common stock as detailed below:
Date
Amount
Converted
Number of
Shares Issued
April 26, 2018
$
18,904
343,709
September 12, 2018
21,209
550,094
September 28, 2018
21,280
552,727
October 25, 2018
14,006
505,275
November 5, 2018
26,545
965,252
November 29, 2018
26,678
2,425,253
January 23, 2019
23,745
1,944,744
Total
$
152,367
7,287,054
Conversions to common stock - Series G preferred stock
During year ended January 31, 2021, the holders of Series G preferred stock elected to convert 115,500 shares of Series G preferred stock into 109,200,000 shares of common stock in accordance with the terms of the preferred stock.
Note 10. Subsequent Events
During the period from February 1, 2021 through the filing of this report, the holders of the Series G Preferred Stock elected to convert 85,200 share of Series G Preferred Stock into 26,184,589 share of common stock of the Company.
- 28 -

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Changes in Accountants
None.
Disagreements with Accountants
There were no disagreements with accountants on accounting and financial disclosures for the years ended January 31, 2021 and 2020.

---

ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Limitations on Systems of Controls
Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or 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. Due to 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, have been detected. To address the material weaknesses identified in our evaluation, we performed additional analysis and other post-closing procedures in an effort to ensure our consolidated financial statements included in this annual report have been prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the company’s principal executive and principal financial officers and effected by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:
•
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
•
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
•
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
- 29 -
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.
As of January 31, 2021, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and 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 controls 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 our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: lack of a functioning audit committee; lack of a majority of independent members and a lack of a majority of outside directors on our board of directors; inadequate segregation of duties consistent with control objectives; lack of a formal written policy for the approval, identification and authorization of related party transactions; and management is dominated by a single individual. The aforementioned material weaknesses were identified by our Chief Executive Officer in connection with the review of our financial statements as of January 31, 2021.
Management believes that the material weaknesses set forth above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

---

ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
None.
PART III

---

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Our directors will each serve until a successor is elected and qualified. Our officers are elected by the board of directors to a term of one (1) year and serve until their successor is duly elected and qualified, or until they are removed from office. The board of directors has no nominating, auditing or compensation committees.
The name, address, age and position of our president, secretary/treasurer, and director and vice president is set forth below:
Name
Age
Position
Sydney Jim
54 Sugar Creek Center Blvd., Suite 200
Sugar Land, Texas 77478
President, Secretary, Treasurer, Principal Executive Officer,
Principal Financial and Accounting Officer, and Sole Director
Mr. Jim was appointed as CEO and a member of the board of directors on September 26, 2018.
Family Relationships
There are no family relationships among our directors, executive officers or persons nominated to become executive officers or directors.
- 30 -
Involvement in Certain Legal Proceedings
During the past ten (10) years, none of our directors, persons nominated to become directors, executive officers, promoters or control persons was involved in any of the legal proceedings listen in Item 401 (f) of Regulation S-K.
Arrangements
There are no arrangements or understandings between an executive officer, director or nominee and any other person pursuant to which he was or is to be selected as an executive officer or director.
Committees of the Board of Directors
Our board of directors has not established any committees, including an Audit Committee, a Compensation Committee, or a Nominating Committee, any committee performing a similar function. The functions of those committees are being undertaken by our sole director. Because we do not have any independent directors, our sole director believes that the establishment of committees of the Board would not provide any benefits to our company and could be considered more form than substance.
We do not have a policy regarding the consideration of any director candidates that may be recommended by our stockholders, including the minimum qualifications for director candidates, nor has our sole director established a process for identifying and evaluating director nominees. We have not adopted a policy regarding the handling of any potential recommendation of director candidates by our stockholders, including the procedures to be followed. Our sole director has not considered or adopted any of these policies, as we have never received a recommendation from any stockholder for any candidate to serve on our Board of Directors. Given our relative size and lack of directors and officers insurance coverage, we do not anticipate that any of our stockholders will make such a recommendation in the near future.
While there have been no nominations of additional directors proposed, in the event such a proposal is made, all current members of our Board will participate in the consideration of director nominees.
Our directors are not an “audit committee financial expert” within the meaning of Item 401(e) of Regulation S-K. In general, an “audit committee financial expert” is an individual member of the audit committee or Board of Directors who:
•
understands generally accepted accounting principles and financial statements,
•
is able to assess the general application of such principles in connection with accounting for estimates, accruals and reserves,
•
has experience preparing, auditing, analyzing or evaluating financial statements comparable to the breadth and complexity to our financial statements,
•
understands internal controls over financial reporting, and
•
understands audit committee functions
Our Board of Directors is comprised of Mr. Jim, Mr. Daniel Chen, Mr. Gilbert Fung, Mr. Cole Munger and Mr. Amar Raval. Mr. Jim is also an officer of the Company and is involved in our day-to-day operations. We would prefer to have an audit committee financial expert on our board of directors. As with most small, early stage companies until such time our company further develops its business, achieves a stronger revenue base and has sufficient working capital to purchase directors’ and officers’ insurance, the Company does not have any immediate prospects to attract independent directors. When the Company is able to expand our Board of Directors to include independent directors, the Company intends to establish an Audit Committee of our Board of Directors. It is our intention that one or more of these independent directors will also qualify as an audit committee financial expert. Our securities are not quoted on an exchange that has requirements that a majority of our Board members be independent and the Company is not currently otherwise subject to any law, rule or regulation requiring that all or any portion of our Board of Directors include “independent” directors, nor are we required to establish or maintain an Audit Committee or other committee of our Board of Directors.
WE DO NOT HAVE ANY INDEPENDENT DIRECTORS AND THE COMPANY HAS NOT VOLUNTARILY IMPLEMENTED VARIOUS CORPORATE GOVERNANCE MEASURES, IN THE ABSENCE OF WHICH, STOCKHOLDERS MAY HAVE MORE LIMITED PROTECTIONS AGAINST INTERESTED DIRECTOR TRANSACTIONS, CONFLICTS OF INTEREST, AND SIMILAR MATTERS.
- 31 -
Code of Business Conduct and Ethics
We have adopted a code of ethics meeting the requirements of Section 406 of the Sarbanes-Oxley Act of 2002. We believe our code of ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely, and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of violations; and provide accountability for adherence to the provisions of the code of ethic.

---

ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
Mr. Jim is paid $100,000 per year for his services to the company.
The table below summarizes all compensation awards to, earned by, or paid to our named executive officer for all service rendered in all capacities to us for the fiscal years ended January 31, 2021, 2020 and 2019
SUMMARY COMPENSATION TABLE
Name and Principal Position
Fiscal Year
Salary ($)
Bonus ($)
Stock Awards ($)
Option Awards ($)
Non-Equity Incentive Plan Compensation ($)
Nonqualified Deferred Compensation ($)
All Other Compensation ($)
Total
($)
Christopher Brown
78,000
-
-
-
-
-
-
78,000
Former CEO and
Chairman
Sydney Jim
100,000
-
-
-
-
-
-
100,000
CEO and chairman
91,666
-
89,930
-
-
-
-
181,596
of the board
76,000
-
1,464,000
-
-
-
-
1,540,000
OUTSTANDING EQUITY AWARDS AT JANUARY, 31, 2021
Option Awards
Stock Awards
Name
Number of Securities Underlying Unexercised Options (#) Exercisable
Number of Securities Underlying Unexercised Options (#) Unexercisable
Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)
Option Exercise Price ($)
Option Expiration Date
Number of Shares of Stock That Have Not Vested (#)
Market Value of Shares of Stock That Have Not Vested ($)
Equity Incentive Plan Awards: Number of Unearned Shares or Other Rights That Have Not Vested (#)
Equity Incentive Plan Awards: market or Payout Value of Unearned Shares or Other Rights That Have Not Vested ($)
Sydney Jim
-
-
-
-
-
-
-
-
-
Employment Agreements & Retirement Benefits
None of our executive officers is subject to employment agreements, but we may enter into such agreements with them in the future. We have no plans providing for the payment of any retirement benefits.
Director Compensation
Directors receive no compensation for serving on the Board. We have no non-employee directors.
Our Board of Directors is comprised of Sydney Jim. Mr. Jim also serves as the CEO of the Company. None of our directors has or had a compensation arrangement with the Company for director services, nor have any of them been compensated for director services since the Company’s inception.
- 32 -
We reimburse our directors for all reasonable ordinary and necessary business related expenses, but we did not pay director’s fees or other cash compensation for services rendered as a director in the year ended January 31, 2021 to any of the individuals serving on our Board during that period. We have no standard arrangement pursuant to which our directors are compensated for their services in their capacity as directors. We may pay fees for services rendered as a director when and if additional directors are appointed to the Board of Directors.
Director Independence
We do not currently have any independent directors and we do not anticipate appointing additional directors in the foreseeable future. If we engage further directors and officers, however, we plan to develop a definition of independence.

---

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
We do not currently have a stock option plan in favor of any director, officer, consultant, or employee of our company. No individual grants of stock options, whether or not in tandem with stock appreciation rights known as SARs or freestanding SARs have been made to our sole director and officer since our inception; accordingly, no stock options have been granted or exercised by our sole director and officer since we were founded.
The following table sets forth certain information as of June 17, 2020, with respect to the beneficial ownership of our common stock by each beneficial owner of more than 5% of the outstanding shares of common stock of the Company, each director, each executive officer named in the “Summary Compensation Table” and all executive officers and directors of the Company as a group, and sets forth the number of shares of common stock owned by each such person and group. Unless otherwise indicated, the owners have sole voting and investment power with respect to their respective shares.
Name of Beneficial Owner
Number of Shares Beneficially Owned
Percentage of Outstanding Common Stock Owned
Sydney Jim, CEO (1)
20,000,000
%
All directors and executive officers as a group (1) person.
20,000,000
%
__________
(1) In addition to the common stock, Mr. Jim owns 1,000,000 shares of the Company’s Series F Preferred Stock which represents 100% of the outstanding Series F Preferred Stock. The Series F Preferred Stock carries 2/3 voting control of the Company.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
None.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
The following table summarize the fees billed to the Company by its independent accountants, M&K CPAs PLLC, for the years ended January 31, 2021 and 2020:
Audit Fees
$
18,600
$
18,600
Audit Related Fees (1)
$
-
$
-
Tax Fees (2)
$
-
$
-
All Other Fees (3)
$
-
$
-
Total Fees
$
18,600
18,600
- 33 -
Notes to the Accountants Fees Table:
(1)
Consists of fees for assurance and related services by our principal accountants that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported under “Audit Fees.”
(2)
Consists of fees for professional services rendered by our principal accountants for tax related services.
(3)
Consists of fees for products and services provided by our principal accountants, other than the services reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees” above.
As part of its responsibility for oversight of the independent registered public accountants, the Board has established a pre-approval policy for engaging audit and permitted non-audit services provided by our independent registered public accountants. In accordance with this policy, each type of audit, audit-related, tax and other permitted service to be provided by the independent auditors is specifically described and each such service, together with a fee level or budgeted amount for such service, is pre-approved by the Board. All of the services provided by M&K CPAs PLLC described above were approved by our Board.
The Company’s principal accountant did not engage any other persons or firms other than the principal accountant’s full-time, permanent employees.
PART IV

---

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
3.1
Articles of Incorporation (1)
3.2
Bylaws (1)
Subsidiaries of the Registrant (2)
31.1
Rule 13a-14(a) Certification of Chief Executive Officer (2)
32.2
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Chief Executive Officer and Chief Financial Officer (2)
XBRL data files of Financial Statement and Notes contained in this Annual Report on Form 10-K (3)
______________
(1)
Incorporated by reference to our Form S-1 filed with the Securities and Exchange Commission on February 24, 2011.
(2)
Filed or furnished herewith.
(3)
To be submitted by amendment.
- 34 -