What changed in this filing

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Item 1. Business

2021-01-12 compared with 2020-01-13 · 65 added, 107 removed, 37 unchanged (82% of the section changed)

Financial Gravity Companies, Inc.

(“Financial

Gravity”

or the “Company”) was incorporated under the laws of the State of Nevada on December 5, 2005.

Its principal

executive offices are located at 800 N.

Watters Rd., Suite 150, Allen, Texas 75013.

The Company’s telephone number is 800-588-3893.

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,

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

“we,”

“us,”

company,”

“our,”

or the “Company”

refer to the combined Financial Gravity Companies, Inc.

together with its subsidiaries.

Business Overview

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:

is a parent company of the best of bread stock brokerage, investment advisory,

asset management, tax planning for business and personal, and financial advisor services companies.

We believe that truly comprehensive

financial guidance is a fundamental need for everyone.

We provide this comprehensive experience through our unique combination

of services that include tax planning and the ability to deliver in-depth advice on a comprehensive range of investment services

and products.

For advisors, we provide platforms to access proprietary and non-proprietary investment products that enhance advisors’

ability to deliver what is best for their clients, all coupled with technology to deliver a state-of-the-art experience.

Financial Gravity Companies, Inc., and

subsidiaries (the “Company”) is headquartered in Austin Texas, with locations in Allen, Texas, Denver, Colorado and

Cincinnati, Ohio.

The currently operating wholly owned subsidiaries of the organization include:

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.

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.

(“Sofos”,

formerly, Financial Gravity Wealth, Inc.).

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

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

planning, and wealth management.

Sofos commenced its money management services in late 2019, and by September 2020 was approaching

$100,000,000 in assets under management.

Tax Master Network, LLC, runs the Tax Master

(“TMN”) that provides four primary services including monthly subscriptions to the TMN systems, coaching

and marketing services.

TMN currently supports over 300 Certified Public Accountants (“CPA”) and Enrolled Agent professionals,

training them to support clients through tax planning services.

TMN has developed the Certified Tax Master®

that includes client

acquisition and retention systems.

TMN also offers tax planning services through the Tax Blueprint®, which includes an extensive

individualized review and assessment of the client’s tax situation.

The initial assessment sets the requirements for a custom

Tax Blueprint®

for each client to use as guide to implementation of the identified tax savings strategies.

Finally, TMN offers

the Tax Operating System, which is a system for integrating and executing tax planning strategies.

In addition, TMN will be launching

new efforts to increase subscribers, including a revamped tax operating system and financial advisor business development programs

that will assist TMN subscribers in increasing their business activity.

The goal is to provide TMN subscribers with a platform

for them to enhance their business opportunities in the areas of investment and financial advice and to increase their effectiveness

as tax advisors to small businesses and individuals.

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 ,

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.

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

and services to insurance agents or agencies.

This is a new venture that will be focused upon insurance marketing and will capture

business synergies in the sale of insurance products by financial advisors with TMN and with Forta.

Forta Financial Group, Inc.

(“Forta”)

is a broker-dealer, a registered investment advisor, and a licensed insurance agent.

It primarily operates in Colorado and has

independent advisors and representative in other states.

Forta will be focused on attracting independent advisors and supporting

TMN members as they grow their financial advisory businesses.

Forta is implementing plans to recruit independent advisors which

will increase revenue.

Organic growth has come from the following

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

Brokerage and Wealth Management Services.

Money Management Services.

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

All future growth is expected to come from

Future growth is expected to come from

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

6 unchanged sentences

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.

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 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.

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

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