What changed in this filing

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Item 1. Business

2019-01-15 compared with 2018-02-20 · 99 added, 64 removed, 56 unchanged (74% of the section changed)

8 unchanged sentences

The Company’s stock symbol is FGCO.

Unless otherwise provided in footnotes, all

references from this point forward in this Report to “Financial Gravity,”

Unless otherwise provided in footnotes,

all references from this point forward in this Report to “Financial Gravity,”

“we,”

6 unchanged sentences

Business Overview

The Company was incorporated in Nevada on December

5, 2005 as Kat Racing, Inc.

On January 4, 2013, the Articles of Incorporation were amended to change the name of the Company to

Prairie West Oil & Gas, Ltd.

On July 26, 2013, the Articles of Incorporation were amended to change the name of the Company

to Pacific Oil Company.

On October 31, 2016, following a reverse merger transaction (the “Merger”), the Articles of

Incorporation were amended to change the name of the Company to Financial Gravity Companies, Inc.

The accounting acquirer (legal acquiree) in

the Merger, Financial Gravity Holdings, Inc.

The Company was incorporated in Nevada

on December 5, 2005 as Kat Racing, Inc.

On January 4, 2013, the Articles of Incorporation were amended to change the name of the

Company to Prairie West Oil & Gas, Ltd.

On July 26, 2013, the Articles of Incorporation were amended to change the name of

the Company to Pacific Oil Company.

On October 31, 2016, following a reverse merger transaction (the “Merger”), the

Articles of Incorporation were amended to change the name of the Company to Financial Gravity Companies, Inc.

The accounting acquirer (legal acquiree)

in the Merger, Financial Gravity Holdings, Inc.

(“Financial Gravity Holdings”), was incorporated in Texas on September

1 unchanged sentence

Company (currently named Financial Gravity Companies, Inc.).

Also pursuant to the Merger, each of the shares

of Financial Gravity Holdings common stock issued and outstanding prior to the Merger was automatically converted into and exchangeable

for an equivalent number of fully paid and non-assessable shares of Company common stock.

The accounting acquirer (legal acquiree) in

the reverse merger transaction, Financial Gravity Holdings, is now a subsidiary of the Company.

Also pursuant to the Merger, each of the

shares of Financial Gravity Holdings common stock issued and outstanding prior to the Merger was automatically converted into and

exchangeable for an equivalent number of fully paid and non-assessable shares of Company common stock.

The accounting acquirer (legal acquiree)

in the reverse merger transaction, Financial Gravity Holdings, is now a subsidiary of the Company.

Business Legacy, Inc., founded

8 unchanged sentences

Partner Program

Tax Services, including Tax Blueprints and ongoing Tax Operating system services

Tax Services, including Tax Blueprint®

and ongoing Tax Operating System®

Wealth Management Services

Other Products and Services (Insurance and other miscellaneous products and services).

All future growth is expected to come from

these four key areas, as well as through organic growth, acquisitions, and strategic alliances.

All future growth is expected to

come from these four key areas, as well as through organic growth, acquisitions, and strategic alliances.

Products and Services

The following outline briefly describes Financial

Gravity’s various subsidiaries and the products and services they offer:

Financial Gravity Holdings,

Financial Gravity Holdings engages in the acquisition and integration of financial and other businesses which will deliver

a wide range of accounting, tax planning and management services to high net worth individuals and businesses in the Dallas/Fort

Worth region.

Financial Gravity Operations, Inc.

Gravity Operations manages operational expenses for the shared services of the subsidiaries.

The following outline briefly describes

Financial Gravity’s various subsidiaries and the products and services they offer:

Financial Gravity Holdings, Inc.

Financial Gravity Holdings engages in the acquisition and integration of financial and other businesses which will deliver a wide

range of accounting, tax planning and management services to high net worth individuals and businesses in the Dallas/Fort Worth

Financial Gravity Operations,

Financial Gravity Operations manages operational expenses for the shared services of the subsidiaries.

integrates the delivery of Financial Gravity Tax, Business, and Wealth Solutions to Financial Gravity’s growing

customer base around the country.

This integration is what sets Financial Gravity apart from its peers.

Financial Gravity Tax, Inc.

formerly Business

Financial Gravity Tax is a bookkeeping, tax planning and payroll service provider for small companies and individuals.

Business Legacy, Inc.

Financial Gravity Tax is a bookkeeping, tax planning and payroll service provider for

small companies and individuals.

Financial Gravity has developed a precise procedure that has proven to be very successful in delivering

lower taxes, higher profit, and greater wealth for small business owners.

The process begins with an extensive and comprehensive

review of the client’s needs.

This assessment sets the requirements for the program that is subsequently developed.

step is to use the client’s custom Tax Blueprint®

to build that business entity and documentation that captures the identified

Financial Gravity Wealth, Inc.

Pollock Advisory Group, Inc.

Financial Gravity Wealth is a registered investment advisor and provides asset management services.

Financial Gravity Wealth is a registered investment advisor and provides asset

management services.

An RIA is an advisor or firm engaged in financial planning and wealth management business and is registered

either with the Securities and Exchange Commission (SEC) or state securities authorities.

An RIA has a fiduciary duty to its clients,

which means that the RIA has a fundamental obligation to provide suitable investment advice and always act in the clients’

best interests.

Financial Gravity Business, LLC formerly

Cloud9b2b, LLC Financial Gravity Business provides business consulting services to Small Business Owners that identify way

to leverage a business’

current assets (people, platforms and processes) and reduce exposure to risk, both short-term and

long-term, while simplifying the business and increasing profitability.

Cloud9b2b, LLC Financial Gravity Business provides business consulting services to Small Business Owners

that identify way to leverage a business’

current assets (people, platforms and processes) and reduce exposure to risk, both

short-term and long-term, while simplifying the business and increasing profitability.

Financial Gravity Business is the only non-product

centric business system for financial advisors that helps them serve the needs of the small business owner without needing to sell

a financial services product such as a life insurance policy or a 401(k) plan.

To broaden the skillset of CPAs, the Company has

created the Certified Tax Master®

designation and partner program for CPA’s and Enrolled Agents.

Financial Gravity Ventures, LLC formerly

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Metro Data Processing provides payroll services, software and support solutions to business owners.

Tax Coach Software, LLC Tax Coach Software

provides three primary services including monthly subscriptions to the “TaxCoach”

software system, coaching and email

marketing services.

The market is comprised of a very large selection

of varied suppliers that provide financial advisory, accounting, and tax needs.

These include accounting firms, certified public

accountants (“CPA's”), bookkeeping businesses, estate planners, lawyers, wealth management consultants, estate offices,

private offices, banks, and large financial institutions.

However, many of these firms are either too big to provide the customized

services that small business owners are seeking, are too expensive, or simply do not have the customized services that Financial

Gravity offers to meet the needs of small business owners and high net worth individuals.

Financial Gravity has a unique product and

service delivery model that has been proven to work over the past years.

The business accounts of Sash

Corporation dba Metro Data Processing (MDP) were sold to Automatic Data Processing (ADP) during fiscal 2018.

Subsequent to the

sale, MDP filed for dissolution and all financial accounts were closed prior to fiscal year end.

Tax Master Network, LLC formerly Tax

Coach Software, LLC Tax Master Network®

provides three primary services including monthly subscriptions

to the “TaxCoach”

software system, coaching and email marketing services.

Tax Coach Software (TCS) was a key acquisition

in fiscal year 2016.

TCS supports over 550 CPA and Enrolled Agent professionals, training them to add crucial tax planning services

to support clients.

TCS developed the Certified Tax Master®

for this group and rolled out new client systems in mid-2016.

The market is comprised of a very large

selection of varied suppliers that provide financial advisory, accounting, and tax needs.

These include accounting firms, certified

public accountants (“CPA's”), bookkeeping businesses, estate planners, lawyers, wealth management consultants, estate

offices, private offices, banks, and large financial institutions.

However, many of these firms are either too big to provide the

customized services that small business owners are seeking, are too expensive, or simply do not have the customized services that

Financial Gravity offers to meet the needs of small business owners and high net worth individuals.

Financial Gravity has a unique product

and service delivery model that has been proven to work over the past years.

Financial Gravity believes that its superior products,

services and overall customer service will enable it to achieve its target sales and revenue.

In addition, Financial Gravity considers a

number of its small to medium-sized business competitors to potentially be attractive acquisition targets.

In addition, Financial Gravity considers

a number of its small to medium-sized business competitors to potentially be attractive acquisition targets.

Intellectual Property

Financial Gravity maintains copyrights or trademarks

on all of its printed marketing materials, the financialgravity.com website and other web pages, and proprietary software.

Gravity’s goal is to preserve its trade secrets and operate without infringing on the proprietary rights of other parties.

To help protect its proprietary know-how, which

is not patentable, Financial Gravity currently relies and will in the future rely on trade secret protection and confidentiality

Financial Gravity maintains copyrights

or trademarks on all of its printed marketing materials, the financialgravity.com website and other web pages, and proprietary

Financial Gravity’s goal is to preserve its trade secrets and operate without infringing on the proprietary rights

of other parties.

To help protect its proprietary know-how,

which is not patentable, Financial Gravity currently relies and will in the future rely on trade secret protection and confidentiality

agreements to protect its interests.

2 unchanged sentences

require disclosure and assignment to Financial Gravity of the ideas, developments, discoveries and inventions important to its

As of September 30, 2017, the Company had approximately 19 full-time employees.

None of the Company’s employees are covered by a collective

bargaining agreement.

The Company believes that it maintains good relations with its employees.

As of September 30, 2018, the Company had

approximately 16 full-time employees.

None of the Company’s employees are covered by a collective bargaining agreement.

Company believes that it maintains good relations with its employees.

Legal Proceedings

From time to time, the Company is a party to

or otherwise involved in legal proceedings, claims and other legal matters, arising in the ordinary course of its business or otherwise.

A subsidiary of the Company is currently involved in one legal proceeding, the outcome of which will not be material to its ability

to operate or market its services, its consolidated financial position, results of operations or cash flows.

From time to time, the Company is a party

to or otherwise involved in legal proceedings, claims and other legal matters, arising in the ordinary course of its business or

A subsidiary of the Company is currently involved in one legal proceeding, the outcome of which will not be material

to its ability to operate or market its services, its consolidated financial position, results of operations or cash flows.

Government Regulation

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business