What changed in this filing

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Item 1A. Risk Factors

2019-02-19 compared with 2018-08-22 · 71 added, 70 removed, 68 unchanged (67% of the section changed)

Our limited operating history may

not serve as an adequate basis to judge our future prospects and results of operations .

Financial Gravity has a relatively

limited operating history.

Our limited operating history and the unpredictability of the wealth management industry make it difficult

for investors to evaluate our business.

An investor in our securities must consider the risks, uncertainties and difficulties frequently

encountered by companies in rapidly evolving markets.

additional financing to implement our business plan.

The Company will need additional financing to fully implement its

business plan in a manner that not only continues to expand an already established direct-to-consumer approach, but also allows

the Company to establish a stronger brand name in all the areas in which it operates.

In particular, the Company will need additional

financing to:

RISK FACTORS.

The Company’s limited operating

history may not serve as an adequate basis to judge its future prospects and results of operations .

Financial Gravity

has a relatively limited operating history.

Its limited operating history and the unpredictability of the wealth management industry

make it difficult for investors to evaluate its business.

An investor in its securities must consider the risks, uncertainties

and difficulties frequently encountered by companies in rapidly evolving markets.

The Company will need

additional financing to implement its business plan.

The Company will need additional financing to fully implement

its business plan in a manner that not only continues to expand an already established direct-to-consumer approach, but also

allows the Company to establish a stronger brand name in all the areas in which it operates.

In particular, the Company will

need additional financing to:

Effectuate its business plan and further develop its product and service lines;

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stockholders and incurring additional indebtedness could involve the imposition of covenants that restrict the Company’s

Our products and services are subject

to changes in applicable laws and regulations.

The Company’s business is particularly subject to changing federal

and state laws and regulations related to the provision of financial services to consumers.

The Company’s continued success

depends in part on its ability to anticipate and respond to these changes, and the Company may not be able to respond in a timely

or commercially appropriate manner.

If the Company fails to adjust its products and services in response to changing legal and/or

regulatory requirements, the ability to deliver its products and services may be hindered, which in turn could have an adverse

effect on the Company’s business, financial condition and results of operations.

We may continue

to encounter substantial competition in our business.

The Company believes that existing and new competitors will continue

to improve their products and services, as well as introduce new products and services with competitive price and performance characteristics.

The Company’s products and

services are subject to changes in applicable laws and regulations .

The Company’s business is particularly

subject to changing federal and state laws and regulations related to the provision of financial services to consumers.

The Company’s

continued success depends in part on its ability to anticipate and respond to these changes, and the Company may not be able to

respond in a timely or commercially appropriate manner.

If the Company fails to adjust its products and services in response to

changing legal and/or regulatory requirements, the ability to deliver its products and services may be hindered, which in turn

could have an adverse effect on the Company’s business, financial condition and results of operations.

The Company may continue to encounter

substantial competition in its business .

The Company believes that existing and new competitors will continue to

improve their products and services, as well as introduce new products and services with competitive price and performance characteristics.

The Company expects that it must continue to innovate, and to invest in product development and productivity improvements, to compete

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and results of operations.

Important factors

affecting the Company's current ability to compete successfully include:

Important factors affecting the Company's

current ability to compete successfully include:

lead generation and marketing costs;

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existing markets, or that the Company will be able to continue to compete successfully against its competition.

successfully manage our growth .

Our success will depend upon the expansion of our operations and the effective management

of our growth, which will place a significant strain on our management and on our administrative, operational and financial resources.

To manage this growth, we must expand our facilities, augment our operational, financial and management systems, and hire and train

additional qualified personnel.

If we are unable to manage our growth effectively, our business would be harmed.

We rely on key executive officers,

and their knowledge of our business and technical expertise would be difficult to replace .

We are highly dependent on our

executive officers.

If one or more of the Company's senior executives or other key personnel are unable or unwilling to continue

in their present positions, the Company may not be able to replace them easily or at all, and the Company’s business may

be disrupted.

Competition for senior management personnel is intense, the pool of qualified candidates is very limited, and we

may not be able to retain the services of our senior executives or attract and retain high-quality senior executives in the future.

The Company may not successfully

manage its growth .

The Company’s success will depend upon the expansion of its operations and the effective

management of its growth, which will place a significant strain on its management and on its administrative, operational and financial

To manage this growth, it must expand its facilities, augment its operational, financial and management systems, and

hire and train additional qualified personnel.

If it is unable to manage its growth effectively, its business would be harmed.

The Company relies on key executive

officers, and their knowledge of its business and technical expertise would be difficult to replace .

is highly dependent on its executive officers.

If one or more of the Company's senior executives or other key personnel are unable

or unwilling to continue in their present positions, the Company may not be able to replace them easily or at all, and the Company’s

business may be disrupted.

Competition for senior management personnel is intense, the pool of qualified candidates is very limited,

and it may not be able to retain the services of its senior executives or attract and retain high-quality senior executives in

Such failure could have a material adverse effect on the Company's business, financial condition and results of operations.

We may never pay dividends to our

common stockholders .

The Company currently intends to retain its future earnings to support operations and to finance expansion;

The Company may never pay dividends

to its common stockholders .

The Company currently intends to retain its future earnings to support operations and to finance

accordingly, the Company does not anticipate paying any cash dividends in the foreseeable future.

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the amount thereof.

Our common stock is quoted through

the OTC Markets, which may have an unfavorable impact on our stock price and liquidity.

The Company’s common stock

is quoted on the OTC Markets, which is a significantly more limited market than the New York Stock Exchange or NASDAQ.

volume may be limited by the fact that many major institutional investment funds, including mutual funds, follow a policy of not

investing in OTC Markets stocks and certain major brokerage firms restrict their brokers from recommending OTC Markets stocks because

they are considered speculative and volatile.

is quoted through the OTC Markets, which may have an unfavorable impact on its stock price and liquidity .

The Company’s

common stock is quoted on the OTC Markets, which is a significantly more limited market than the New York Stock Exchange or NASDAQ.

The trading volume may be limited by the fact that many major institutional investment funds, including mutual funds, follow a

policy of not investing in OTC Markets stocks and certain major brokerage firms restrict their brokers from recommending OTC Markets

stocks because they are considered speculative and volatile.

The trading volume of the Company’s

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companies is generally volatile, with wide price fluctuations not necessarily related to the operating performance of such companies.

stock is subject to price volatility unrelated to our operations.

The market price of the Company’s common stock

could fluctuate substantially due to a variety of factors, including market perception of the Company’s ability to achieve

its planned growth, operating results of the Company and of other companies in the same industry, trading volume in the Company’s

The Company’s common stock

is subject to price volatility unrelated to its operations .

The market price of the Company’s common stock could

fluctuate substantially due to a variety of factors, including market perception of the Company’s ability to achieve its

planned growth, operating results of the Company and of other companies in the same industry, trading volume in the Company’s

common stock, changes in general conditions in the economy and the financial markets or other developments affecting the Company

or its competitors.

stock is classified as a “penny stock.”

Rule 3a51-1 of the Securities Exchange

Act of 1934 establishes the definition of a “penny stock,”

for purposes relevant to us, as any equity security that

has a minimum bid price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to a limited

number of exceptions which are not available to us.

It is likely that the Company’s common stock will be a penny stock for

the immediately foreseeable future.

The Company’s common stock

is classified as a “penny stock.”

Rule 3a51-1 of the Securities Exchange Act of 1934 establishes the definition

of a “penny stock,”

for purposes relevant to us, as any equity security that has a minimum bid price of less than $5.00

per share or with an exercise price of less than $5.00 per share, subject to a limited number of exceptions which are not available

It is likely that the Company’s common stock will be considered to be a penny stock for the immediately foreseeable

For any transaction involving a penny stock,

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available to an investor in cases of fraud in penny stock transactions.

Because of these

regulations, broker-dealers may not wish to furnish the necessary paperwork and disclosures and/or may encounter difficulties in

their attempt to buy or sell shares of the Company’s common stock, which may in turn affect the ability of Company stockholders

to sell their shares.

Because of these regulations, broker-dealers

may not wish to furnish the necessary paperwork and disclosures and/or may encounter difficulties in their attempt to buy or sell

shares of the Company’s common stock, which may in turn affect the ability of Company stockholders to sell their shares.

Accordingly, the penny stock classification

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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-Q

Item 1A. Risk Factors