What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-12-30 compared with 2021-01-12 · 91 added, 97 removed, 5 unchanged (97% of the section changed)

Financial Gravity Companies, Inc.

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.

(“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

(the “Company”)

is headquartered in Austin Texas, with locations in Denver, Colorado, Monterey, California and Cincinnati, Ohio.

Company, along with its

subsidiary companies, supports investment advisors and provides tax professionals with a turnkey family office charter.

Company helps

the tax professionals evolve from the commoditized business of tax compliance to a Family Office Director that runs and manages their

own multi-family office.

Family Office Directors are able to leverage the Financial Gravity systems, technology, proprietary resources,

and deep domain expertise to bring an elevated and holistic financial service experience to their clients that spans proactive tax planning,

retirement and estate planning, wealth management, and risk mitigation.

The currently operating wholly owned subsidiaries

of the Company include:

Tax Master Network, LLC, runs the Tax Master Network®

(“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

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.

TMN also provides CPAs, Enrolled Agents, and other

tax professionals a system for marketing, selling, and fulfilling tax-planning engagements.

The system rests on two proprietary SAAS-based

applications, the Tax Ninja software, which uses non-technical language in written reports introducing clients to tax-saving concepts

and strategies;

and the Tax Operating System®, which automates implementation of tax strategies.

The system also includes:

and practice-management tools and resources;

2) access to the Technical Training Center and the Sales Training Center to support members;

3) the monthly Fueled program which promotes personal development education;

4) the weekly Tax Beat client newsletter (a client newsletter);

and 5) the Certified Tax Master® designation (which identifies members as offering special training not usually available to clients).

TMN membership also includes the option to participate in the Financial Advisor Technical Education (FATE) program, which serves two goals:

1) it helps tax planners do a better job helping clients manage tax exposure in their investment portfolios;

and 2) it gives members a

proprietary "done for you" path into the investment advisory business.

Financial Gravity Family Office Services, LLC

(“FGFOS”) is a registered investment advisor that offers investment management advice to clients through independent investment

Many of the independent investment advisors are members of TMN that are licensed to provide investment management advice.

provides support for the multi-family offices run by the TMN members.

Financial Gravity Asset Management, Inc., formerly

Sofos Investment Management, Inc.

(“FGAM”) is a registered investment advisor, registered with the Securities and Exchange

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

wealth management.

FGAM commenced its money management services in late 2020, and by September 30, 2021 had in excess of $170,000,000

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.

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.

Financial Gravity Enhanced Markets, LLC, formerly,

MPath Advisor Resources, LLC (“FGEM”) 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.

Money Management Services.

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

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 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.

(“Forta”) is a broker-dealer, a registered investment advisor, and a licensed insurance agent.

It primarily operates in

Colorado and has independent advisors and representatives in other states.

As explained below, management has determined that

Forta’s broker/dealer business is no longer viable and has decided to discontinue Forta’s broker/dealer operations.

Company is in the process of completing that transition.

The market is comprised of a very large 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

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.

To this end, Financial Gravity requires all its employees, consultants, advisors and other

contractors to enter into confidentiality agreements that prohibit the disclosure of confidential information and, where applicable,

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

As of September 30, 2020, the Company had

approximately 23 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

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.

Financial Gravity maintains copyrights or trademarks

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

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.

To this end, Financial Gravity requires all its employees, consultants, advisors and other contractors to enter

into confidentiality agreements that prohibit the disclosure of confidential information and, where applicable, require disclosure and

assignment to Financial Gravity of the ideas, developments, discoveries and inventions important to its business.

As of September 30, 2021, the Company had approximately 27 full-time

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

The Company believes that it maintains

good relations with its employees.

Government Regulation

The services provided by Financial Gravity,

through its subsidiaries, are extensively regulated by federal and state authorities in the United States.

Financial Gravity believes

it is in compliance with federal and state qualification and registration requirements in order that it may continue to provide

services to its clients consistent with applicable laws and regulations.

The services provided by Financial Gravity, through its subsidiaries,

are extensively regulated by federal and state authorities in the United States.

Financial Gravity believes it is in compliance with federal

and state qualification and registration requirements in order that it may continue to provide services to its clients consistent with

applicable laws and regulations.

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