What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2020-01-13 compared with 2019-01-15 · 97 added, 108 removed, 47 unchanged (81% of the section changed)

8 unchanged sentences

The Company’s stock symbol is FGCO.

Financial Gravity is a parent company of best of breed financial

services companies including brokerage, wealth management, estate planning, family office services, risk management, business

and personal tax planning, business consulting, and financial advisor services.

Financial Gravity's mission is to synergistically

bring together companies that create symbiotic advantages to each other in order to bring a complete financial experience to the

clients that we serve.

Unless otherwise provided in footnotes,

8 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.

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

On the effective date of the Merger, the business of Financial Gravity Holdings became the only business of Pacific Oil

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.

Business Legacy, Inc., founded

in 2002, and Pollock Advisory Group, founded in 2007, were added on September 29, 2014, as subsidiaries.

During fiscal year 2015,

the Company acquired as additional subsidiaries, Cloud9b2b, LLC and SASH Corporation (dba Metro Data Processing).

During fiscal

year 2016, the Company acquired an additional subsidiary, Tax Coach Software, LLC.

The Company and its subsidiaries deliver a wide

range of accounting, tax planning and management services to high net worth individuals and businesses nationwide.

Organic growth has come in four key areas.

Partner Program

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.

Products and Services

On October 31, 2016, following a reverse

merger transaction with Pacific Oil Company, the Articles of Incorporation were amended to change the name of the Company to Financial

Gravity Companies, Inc.

Sofos Investments, Inc.

(formerly Financial

Gravity Wealth, Inc.), Financial Gravity Tax, Inc., MPath Advisor Resources, LLC (formerly Financial Gravity Business, LLC), Financial

Gravity Ventures, LLC and Tax Master Network, LLC, are Company subsidiaries that deliver a wide range of investment and financial

advice, support for financial advisors, tax planning and management services to high net worth individuals and businesses nationwide.

On September 30, 2019, the Company entered into an agreement to acquire 100%

of the shares of stock of Presidential Brokerage, Inc, a California corporation (“Forta”).

Subsequent to the entering

into the agreement, Forta changed it’s name to Forta Financial Group, Inc.

(“Forta”).

Upon completion of the

acquisition of the Forta stock, Forta will become a wholly owned subsidiary of the Company.

Forta is a broker-dealer, a registered

investment advisor, and a licensed insurance agent.

It primarily operates in Colorado.

The merger is subject to FINRA approval

and will be finalized upon such approval.

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.

Sofos Investments, Inc.

(Financial Gravity

Wealth, Inc.) (“Sofos”) Sofos is a registered investment advisor (“RIA”), registered with the Securities

and Exchange Commission, and provides asset management services to individuals and businesses, including financial planning, wealth

management and money management.

Financial Gravity Tax, Inc.

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.

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.

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

Cloud9Accelerator, LLC Financial Gravity Ventures holds acquired companies and business assets until they are integrated into

the main stream Financial Gravity business structure.

Gravity Tax was a tax planning service provider for small companies and individuals.

The Tax Operating System, is a system for

integrating and executing tax planning strategies.

This is offered via subscription for member tax professionals.

Financial Gravity

Tax had a small bookkeeping and payroll service businesses, but those business lines were either sold or shut down in 2019.

business lines and customers of Financial Gravity Tax was sold in October 2019 and the legal entity isn’t active currently.

Tax Master Network, LLC Tax Master

provides three primary services including monthly subscriptions to the Tax Master Network systems, coaching and email

marketing services.

Tax Master Network (“TMN”) currently supports over 300 Certified Public Accountants (“CPA”)

and Enrolled Agent professionals, training them to add crucial tax planning services to support clients.

TMN has developed the

Certified Tax Master®

for this group and includes client acquisition and retention systems.

TMN also offers tax planning services

through the Tax Blueprint®.

The process begins with an extensive and comprehensive review of the client’s needs.

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

The second step is to use the client’s

custom Tax Blueprint®

to capture the identified tax savings.

The Tax Blueprint®

is delivered to the client as a guide

to implementation of the identified tax savings strategies.

MPath Advisor Resources, LLC (formerly

Financial Gravity Business, LLC.) (“MPath”) MPath is an insurance marketing organization and provides insurance

products and services to insurance agents or agencies.

Financial Gravity Ventures, LLC .

Financial Gravity Ventures was established to hold acquired companies and business assets until they are integrated into the mainstream

Financial Gravity business structure.

Sash Corporation dba Metro Data Processing ,

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

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.

based in Tulsa, OK was the Company’s first acquisition and Metro Data Processing was based in Tulsa, OK.

The client list

was sold to ADP in 2018.

This entity is now inactive and awaiting dissolution.

Financial Group, Inc.

(formerlyh Presidential Brokerage, Inc.) On September 30, 2019, the Company entered into a merger agreement

with Forta, to acquire Forta in exchange for Company stock.

The merger is awaiting FINRA approval.

When approved, the Forta shareholders

will own more than 50% of the Company.

Forta is a broker dealer, registered investment advisor and an insurance brokerage, subject

to FINRA, SEC and insurance regulation.

Organic growth has come in three key areas.

Tax Services and financial advisory services, including Tax Blueprint®

and ongoing Tax Operating System®

Brokerage and

Wealth Management Services –

and brokerage services after the Forta acquisition and money management

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

All future growth is expected to come from

these key areas, organic growth, acquisitions, and strategic alliances.

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.

selection of varied suppliers that provide investment advisory and brokerage, financial advisory, accounting, and tax services.

These include accounting firms, tax preparers, estate planners, lawyers, wealth management advisors, banks, and large financial

institutions.

However, many of these firms are not able to provide the customized services that small business owners are seeking,

or simply do not have each of the customized services that Financial Gravity offers to meet the needs of small business owners

and high net worth individuals at the price that Financial Gravity offers.

Financial Gravity’s service delivery model 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 sales and revenue growth.

Intellectual Property

15 unchanged sentences

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.

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

or otherwise.

It is management’s opinion that there are no legal proceedings the outcome of which will be material to its

ability to operate or market its services, its consolidated financial position, operating results 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