What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2020-11-16 compared with 2020-08-19 · 225 added, 160 removed, 401 unchanged (49% of the section changed)

3 unchanged sentences

Consolidated Balance Sheets

September 30,

Current Assets

Cash and cash equivalents

expenses and other assets

Prepaid expenses and other assets

Total Current Assets

AND STOCKHOLDERS’

LIABILITIES AND STOCKHOLDERS’

Current Liabilities

Accounts payable

repurchase payable

Stock repurchase payable

Total Current Liabilities

Long-Term Liabilities

Paycheck Protection Program

Accrued expenses

Paycheck Protection Program loan

Notes payable, related parties

2 unchanged sentences

Stockholders’

Preferred stock, authorized

10,000,000 shares, par value $0.001;

Preferred stock, authorized 10,000,000 shares,

par value $0.001;

-0- shares issued and outstanding

Common stock, authorized 500,000,000

shares, par value $0.001;

Common stock, authorized 500,000,000 shares, par value $0.001;

37,828,441 shares issued and outstanding

Additional paid in capital

Accumulated deficit

(28,538,921 )

8 unchanged sentences

Three Months Ended

June 30, 2020

June 30, 2019

Interest Income on Investment in Net Insurance Benefits

General and Administrative Expenses

Loss from Operations

Six Months Ended

Interest Income on

Investment in Net Insurance Benefits

and Administrative Expenses

from Operations

Other Expense

Interest expense

Financing expense

Total Other Expense

Loss Before Income Taxes

Income Tax Provision (Benefit)

Other Expense

Loss Before Income

Tax Provision (Benefit)

Basic and Diluted:

Basic and diluted loss per share

Basic and diluted weighted average number of shares outstanding

and diluted loss per share

Basic and diluted

weighted average number of shares outstanding

accompanying notes are an integral part of these condensed, consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Stockholders’

the Three Months Ended June 30, 2020 and 2019

the Three and Six Months Ended September 30, 2020 and 2019

Stockholders’

4 unchanged sentences

(28,206,328 )

Balance, September 30, 2020

$ (28,538,921 )

$ (4,309,868 )

Balance, March 31, 2019

3 unchanged sentences

(27,212,257 )

Balance, September 30, 2019

$ (27,617,182 )

$ (3,388,129 )

accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

Statements of Cash Flows

Three Months Ended

June 30, 2020

June 30, 2019

Six Months Ended

Operating Activities

Adjustments to reconcile to net cash provided by (used in) operating activities:

Changes in operating assets and liabilities

Prepaid expenses and other assets

Adjustments to reconcile

to net cash provided by (used in) operating activities:

Changes in operating

assets and liabilities

on behalf of Company

Prepaid expenses

and other assets

Accounts payable

Accrued expenses

Net Cash used in Operating Activities

Cash used in Operating Activities

Financing Activities

Proceeds from issuance of notes payable, related party

Proceeds from Paycheck Protection Program Loan

Net Cash provided by Financing Activities

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Period

Cash and Cash Equivalents at End of Period

Supplemental disclosure of cash flow information:

Proceeds from issuance

of notes payable, related party

from Paycheck Protection Program Loan

Cash provided by Financing Activities

Net Change in Cash

and Cash Equivalents

and Cash Equivalents at Beginning of Period

and Cash Equivalents at End of Period

Supplemental disclosure

of cash flow information:

Cash paid for interest

Cash paid for income taxes

Cash paid for income

accompanying notes are an integral part of these Condensed Consolidated financial statements.

13 unchanged sentences

Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020, which was filed with the SEC on August 10,

The results from operations for the three-month period ended June 30, 2020, are not necessarily indicative of the results

The results from operations for the six-month period ended September 30, 2020, are not necessarily indicative of the results

that may be expected for the fiscal year ended March 31, 2021.

32 unchanged sentences

Potentially dilutive securities

are not included in the calculation of diluted net loss per share for the three months ended June 30, 2020 and 2019, because to

do so would be anti-dilutive.

Potentially dilutive securities outstanding as of June 30, 2020 are comprised of warrants convertible into 1,952,000 shares of common stock.

No potentially dilutive securities were outstanding as of June 30,

are not included in the calculation of diluted net loss per share for the three and six months ended September 30, 2020 and 2019,

because to do so would be anti-dilutive.

Potentially dilutive securities outstanding as of September 30, 2020 are comprised of

warrants convertible into 2,133,000 shares of common stock.

No potentially dilutive securities were outstanding as of September

STRATEGIES, INC.

2 unchanged sentences

Accounting Pronouncements

During the Three months Ended June 30, 2020

During the Six Months Ended September 30, 2020

June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses.

21 unchanged sentences

from related parties and the issuance of notes payable and convertible debentures.

As of June 30, 2020, the Company had $11,862

As of September 30, 2020, the Company had $2,452

of cash assets, compared to $28,784 as of March 31, 2020.

As of June 30, 2020, the Company had access to draw an additional $4,980,492

As of September 30, 2020, the Company had access to draw an additional

$4,859,992 on the notes payable, related party (see Note 5) and $3,000,000 on the Convertible Debenture Agreement (See Note 6).

For the three

months ended June 30, 2020, the Company’s average monthly operating expenses were approximately $45,000, which includes

salaries of our employees, consulting agreements and contract labor, general and administrative expenses and legal and accounting

In addition to the monthly operating expenses, the Company continues to pursue other debt and equity financing opportunities,

and as a result, a financing expense of $74,500 was incurred during the three months ended June 30, 2020.

As management continues

to explore additional financing alternatives, the Company is expected to spend an additional $350,000 over the next 12 months

related to these efforts.

Outstanding Accounts Payable as of June 30, 2020 totaled $499,817, and other accrued liabilities totaled

Management has concluded that its existing capital resources and availability under its existing convertible debentures

and debt agreements with related parties will be sufficient to fund its operating working capital requirements for at least the

next 12 months from the issuance of these financial statements.

Related parties have given assurance that their continued support,

by way of either extensions of due dates, or increases in lines-of-credit, can be relied on.

As mentioned above, the Company also

continues to evaluate other debt and equity financing opportunities.

For the three months ended September 30, 2020, the Company’s average monthly operating expenses were approximately $80,000,

which includes salaries of our employees, consulting agreements and contract labor, general and administrative expenses and legal

and accounting expenses.

In addition to the monthly operating expenses, the Company continues to pursue other debt and equity

financing opportunities, and as a result, a financing expense of $40,730 was incurred during the three months ended September

As management continues to explore additional financing alternatives, the Company is expected to spend an additional

$500,000 over the next 12 months related to these efforts.

Outstanding Accounts Payable as of September 30, 2020 totaled $623,195,

and other accrued liabilities totaled $568,864.

Management has concluded that its existing capital resources and availability

under its existing convertible debentures and debt agreements with related parties will be sufficient to fund its operating working

capital requirements for at least the next 12 months from the issuance of these financial statements.

Related parties have given

assurance that their continued support, by way of either extensions of due dates, or increases in lines-of-credit, can be relied

As mentioned above, the Company also continues to evaluate other debt and equity financing opportunities.

recent outbreak of COVID-19 originated in Wuhan, China, in December 2019 and has since spread to multiple countries, including

32 unchanged sentences

Company did not have any transfers of assets and liabilities between Levels 1, 2 and 3 of the fair value measurement hierarchy

during the three months ended June 30, 2020 and 2019.

during the six months ended September 30, 2020 and 2019.

Financial Instruments

31 unchanged sentences

the lender will also require 2 warrants for each dollar loaned.

of June 30, 2020 and March 31, 2020, the Company held outstanding warrants to related parties totaling 1,952,000 and 1,702,000,

of September 30, 2020 and March 31, 2020, the Company held outstanding warrants to related parties totaling 2,133,000 and 1,702,000,

respectively.

3 unchanged sentences

model, was not significant.

The inputs used in this calculation included a risk-free rate of 0.32% to 0.39%, volatility

of 85% to 123% and a dividend rate of 0%.

The average remaining outstanding life of the warrants as of June 30, 2020, was

The common stock issued upon exercise of the warrants are not registered with the Securities and Exchange Commission

and do not have registration rights.

The inputs used in this calculation included a fair value of $0.02 to $0.03 per share, a risk-free

rate of 0.23% to 0.39%, volatility of 55% to 123% and a dividend rate of 0%.

The average remaining outstanding life

of the warrants as of September 30, 2020, was 4.36 years.

The shares of common stock issuable upon exercise of the

warrants are not registered with the Securities and Exchange Commission and the holders of the warrants do not have registration

rights with respect to the warrants or the underlying shares of common stock.

NOTES PAYABLE, RELATED PARTY

of June 30, 2020, and March 31, 2020, the Company had borrowed $2,575,508 and $2,450,508 respectively, excluding accrued interest,

from related parties.

of September 30, 2020, and March 31, 2020, the Company had borrowed $2,696,008 and $2,450,508 respectively, excluding accrued

interest, from related parties.

The interest associated with the Notes Payable, Related Party of $396,559 and $288,369 is recorded

on the balance sheet as an Accrued Expense obligation at June 30, 2020 and March 31, 2020, respectively.

on the balance sheet as an Accrued Expense obligation at September 30, 2020 and March 31, 2020, respectively.

Party Promissory Notes

of both June 30, 2020 and March 31, 2020, the Company owed $826,000 under the unsecured promissory notes from Mr.

a stockholder and member of the Board of Directors.

of both September 30, 2020 and March 31, 2020, the Company owed $826,000 under the unsecured promissory notes from Mr.

Dickman, a stockholder and member of the Board of Directors.

The promissory notes bear interest at a rate of 8% annually.

The notes are

due on November 30, 2021, or at the immediate time when alternative financing or other proceeds are received.

In addition, as

mentioned in Note 4, prior to March 31, 2020, the Company had provided Mr.

Dickman warrants for 1,202,000 shares of common stock.

During the three months ended June 30, 2020, the Company neither borrowed any additional funds under this agreement nor made any

principal repayments.

As of June 30, 2020, accrued interest on the notes totaled $85,755.

In the event the Company completes a

successful equity raise all principal and interest on the notes are due in full at that time.

notes are due on November 30, 2021, or at the immediate time when alternative financing or other proceeds are received.

as mentioned in Note 4, prior to March 31, 2020, the Company had provided Mr.

Dickman warrants for 1,202,000 shares of common

During the six months ended September 30, 2020, the Company neither borrowed any additional funds under this agreement

nor made any principal repayments.

As of September 30, 2020, accrued interest on the notes totaled $104,325.

In the event the

Company completes a successful equity raise all principal and interest on the notes are due in full at that time.

Party Note Payable and Line of Credit Agreements

of June 30, 2020 and March 31, 2020, the Company owed $920,000 and $795,000, respectively, exclusive of accrued interest, under

the note payable and line of credit agreement with the Chairman of the Board of Directors and a stockholder.

The agreement allows

for borrowings of up to $4,600,000, with principal and interest due on August 31, 2021, or at the immediate time when alternative

financing or other proceeds are received.

During the three months ended June 30, 2020 the Company borrowed $125,000 of principal

under this agreement and made no repayments.

As discussed in Note 4, effective April 3, 2020, a provision to the lending agreement

provides the related party lender with common stock warrants upon the lenders extension of a maturity due date or upon the loaning

of additional monies.

Under this provision, additional warrants for 250,000 shares of common stock were issued in conjunction

with the $125,000 borrowed during the three months ended June 30, 2020, bringing the total number of warrants issued to the related

party lender to 750,000 as of June 30, 2020 (see Note 4 for further details on these warrants).

The note payable and line of credit

agreement incurs interest at 7.5% per annum and are collateralized by the Company’s NIBS, if any.

As of June 30, 2020, accrued

interest on this note totaled $84,938.

of June 30, 2020 and March 31, 2020, the Company owed $829,508 in principle under the note payable and lines of credit

agreement with Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors.

The agreement allows for

borrowings of up to $2,130,000.

The principal and interest on the note are due August 31, 2021 or at the immediate time when alternative

financing or other proceeds are received.

The note payable and line of credit agreement incurs interest at 7.5% per annum and

is collateralized by the Company’s NIBS, if any.

During the three months ended June 30, 2020 the Company neither borrowed

nor repaid any principal under this agreement.

As of June 30, 2020, accrued interest on this agreement totaled $169,920.

of September 30, 2020 and March 31, 2020, the Company owed $1,010,500 and $795,000, respectively, exclusive of accrued interest,

under the note payable and line of credit agreement with the Chairman of the Board of Directors and a stockholder.

As of September

30, 2020, the agreement allowed for borrowings of up to $4,600,000, with principal and interest due on August 31, 2021,

or at the immediate time when alternative financing or other proceeds are received.

Subsequent to September 30, 2020 the note

and the line of credit was extended from August 31, 2021 to November 30, 2022 (see Note 8 for detail on the due date extension).

During the six months ended September 30, 2020 the Company borrowed $208,500 in cash, and another $7,000 of expense paid

on behalf of the Company, totaling and additional $215,500 in principal borrowed under this agreement.

made no repayments during the six months ending September 30, 2020.

As discussed in Note 4, effective April 3, 2020,

a provision to the lending agreement provides the related party lender with common stock warrants upon the lenders extension of

a maturity due date or upon the loaning of additional monies.

Under this provision, additional warrants for 431,000 shares of

common stock were issued in conjunction with the $215,500 borrowed during the six months ended September 30, 2020, bringing the

total number of warrants issued to the related party lender to 931,000 as of September 30, 2020 (see Note 4 for further details

on these warrants).

The note payable and line of credit agreement incurs interest at 7.5% per annum and are collateralized by

the Company’s NIBS, if any.

As of September 30, 2020, accrued interest on this note totaled $103,212.

of September 30, 2020 and March 31, 2020, the Company owed $859,508 and $829,508 in principal, respectively, under the

note payable and lines of credit agreement with Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors.

The agreement allows for borrowings of up to $2,130,000.

The principal and interest on the note are due August 31, 2021 or at

the immediate time when alternative financing or other proceeds are received.

Subsequent to September 30, 2020 the note and

the line of credit was extended from August 31, 2021 to November 30, 2022 (see Note 8 for detail on the due date extension).

The note payable and line of credit agreement incurs interest at 7.5% per annum and is collateralized by the Company’s NIBS,

During the six months ended September 30, 2020 the Company borrowed $30,000 of principal under this agreement and made

no repayments.

As of September 30, 2020, accrued interest on this agreement totaled $189,022.

STRATEGIES, INC.

2 unchanged sentences

CONVERTIBLE DEBENTURE AGREEMENT

The Company has entered into an 8% convertible debenture agreement

with Satco International, Ltd., that allows for borrowings of up to $3,000,000.

The holder originally had the option to convert

the outstanding principal and accrued interest to unregistered, restricted common stock of the Company on June 2, 2016.

agreement, the number of shares issuable at conversion shall be determined by the quotient obtained by dividing the outstanding

principal and accrued and unpaid interest by 90% of the 90 day average closing price of the Company’s common stock from the

date the notice of conversion is received;

and the price at which the Debenture may be converted will be no lower than $1.00 per

The original maturity date was June 2, 2016, but was later extended, through a series of extensions, to December 1, 2020.

As of June 30, 2020 and March 31, 2020, the Company owed $0 under the agreement, excluding accrued interest.

Company has entered into an 8% convertible debenture agreement with Satco International, Ltd., that allows for borrowings of up

to $3,000,000.

The holder originally had the option to convert the outstanding principal and accrued interest to unregistered,

restricted common stock of the Company on June 2, 2016.

Per the agreement, the number of shares issuable at conversion shall be

determined by the quotient obtained by dividing the outstanding principal and accrued and unpaid interest by 90% of the 90 day

average closing price of the Company’s common stock from the date the notice of conversion is received;

and the price at

which the Debenture may be converted will be no lower than $1.00 per share.

The original maturity date was June 2, 2016, but was

later extended, through a series of extensions, to December 1, 2020.

On July 13, 2020, the Company agreed to amend the

convertible debenture agreement to extend the due date and conversion rights from December 1, 2020 to November 30, 2021.

September 30, 2020 and March 31, 2020, the Company owed $0 under the agreement, excluding accrued interest.

The associated interest

of $124,225 is recorded on the balance sheet as an Accrued Expense obligation at June 30, 2020 and March 31, 2020.

of $124,225 is recorded on the balance sheet as an Accrued Expense obligation at September 30, 2020 and March 31, 2020.

April 20, 2020, the Company received funding under a Paycheck Protection Program (“PPP”) loan (the “PPP Loan”)

21 unchanged sentences

SUBSEQUENT EVENTS

to June 30, 2020, the following events transpired:

The Company agreed

to amend the 8% convertible debenture agreement with Satco International, Ltd., to extend the due date and conversion rights from

December 1, 2020 to November 30, 2021.

The Company borrowed

an additional $48,500 on Notes Payable, Related Party and issued 97,000 warrants.

to September 30, 2020, the following events transpired:

October 1, 2020, the related party, note payable and line of credit agreement with Radiant Life, LLC, an entity partially owned

by the Chairman of the Board of Directors (see Note 5) was amended to include a formal provision that provides the related party

lender with common stock warrants upon the lenders extension of a maturity due date or upon the loaning of additional monies.

The number of warrants issued will be based on the following formula:

10,000 warrants per month the due date is extended plus

1 warrant for every $2 of the principal balance outstanding (not including interest) at the time of the extension (rounded to

the nearest whole warrant).

In addition, the number of warrants to be issued upon the loaning of additional monies is 2 warrants

for each dollar loaned.

In this amendment,

the due date was extended from August 31, 2021 to November 30, 2022 or at the immediate time when alternative financing or other

proceeds are received.

As per the provision outlined above, and in conjunction with the extension of the due date of the agreement,

the Company also agreed to provide the Radiant Life, LLC with warrants for 579,754 shares of common stock at an exercise price

of $0.05 per share.

The warrants have a 5-year exercise window from the date of the extension agreement.

October 27, 2020, the Company agreed to amend the agreement to extend the due date on the note payable and line of credit agreement

with the Chairman of the Board of Directors and a stockholder (see Note 5).

The due date was extended from August 31, 2021 to

November 30, 2022 or at the immediate time when alternative financing or other proceeds are received.

As per the provision outlined

in Note 4, and in conjunction with the extension of the due date of the agreement, the Company also agreed to provide the Chairman

with warrants for 679,400 shares of common stock at an exercise price of $0.05 per share.

The warrants have a 5-year exercise

window from the date of the extension agreement.

to September 30, 2020, the Company has borrowed an additional $48,300 on

the Notes Payable, Related Party and issued an additional 96,600 warrants in conjunction with this borrowed amount, bringing the

total warrants issued subsequent to September 30, 2020 to 776,000.

November 10, 2020, the Company issued a private placement memorandum offering to raise up to $1,000,000 through the issuance of

restricted shares of the Company’s common stock (par value $0.001) to qualified investors.

The Company has received subscription

agreements for 500,000 common shares at a purchase price of $1 per share, with total proceeds to the Company of $500,000.

Management’s Discussions and Analysis of Financial Condition and Results of Operations.

discussion summarizes the significant factors affecting our consolidated operating results, financial condition, liquidity and

capital resources at and during the three months ended June 30, 2020 and 2019.

capital resources at and during the six months ended September 30, 2020 and 2019.

For a complete understanding, this Management’s

140 unchanged sentences

of Operations

Ended June 30, 2020, Compared with Three-Months Ended June 30, 2019

to the Company not holding NIBs, no interest income was recorded for the three months ended June 30, 2020 or 2019.

Ended September 30, 2020, Compared with Three-Months Ended September 30, 2019

to the Company not holding NIBs, no interest income was recorded for the three months ended September 30, 2020 or 2019.

& Administrative Expenses

and administrative expenses totaled $124,341 and $282,978 during the three months ended June 30, 2020, and 2019, respectively.

and administrative expenses totaled $235,918 and $328,855 during the three months ended September 30, 2020, and 2019, respectively.

A significant portion of these expenses were professional fees and payroll costs.

Reduced operational needs from the three months

ended September 30, 2019 to September 30, 2020 resulted in decreases in each of the areas previously mentioned.

Income and Expenses

the three months ended June 30, 2020 and 2019, other expenses related to pursuing potential financing alternatives were $74,500

the three months ended September 30, 2020 and 2019, other expenses related to pursuing potential financing alternatives were $40,730

and $32,500, respectively.

the three months ended June 30, 2020, and 2019, interest expense accrued in the amount of $52,245 and $36,871, respectively.

increased interest expense was due to higher principal balances during the three months ended June 30, 2020.

the three months ended June 30, 2020, the Company recorded a net loss before income taxes of $251,086 and had no income tax expense

or benefit as a result of a full valuation allowance on the net deferred tax asset.

The increased expenses are due to additional costs incurred as progress advances toward additional

the three months ended September 30, 2020, and 2019, interest expense accrued in the amount of $55,945 and $43,570, respectively.

The increased interest expense was due to higher principal balances during the three months ended September 30, 2020.

the three months ended September 30, 2020, the Company recorded a net loss before income taxes of $332,593 and had no income tax

expense or benefit as a result of a full valuation allowance on the net deferred tax asset.

Ended September 30, 2020, Compared with Six-Months Ended September 30, 2019

to the Company not holding NIBs, no interest income was recorded for the six months ended September 30, 2020 or 2019.

& Administrative Expenses

and administrative expenses totaled $360,259 and $611,833 during the six months ended September 30, 2020, and 2019, respectively.

A significant portion of these expenses were professional fees and payroll costs.

Reduced operational needs from the six months

ended September 30, 2019 to September 30, 2020 resulted in decreases in each of the areas previously mentioned.

Income and Expenses

the six months ended September 30, 2020 and 2019, other expenses related to pursuing potential financing alternatives were $115,230

and $82,500, respectively.

The increased expenses are due to additional costs incurred as progress advances toward additional

the six months ended September 30, 2020, and 2019, interest expense accrued in the amount of $108,190 and $80,441, respectively.

The increased interest expense was due to higher principal balances during the six months ended September 30, 2020.

the six months ended September 30, 2020, the Company recorded a net loss before income taxes of $583,679 and had no income tax

expense or benefit as a result of a full valuation allowance on the net deferred tax asset.

and Capital Resources

1 unchanged sentence

and notes payable from related parties and the issuance of convertible debentures.

As of June 30, 2020, we had $11,862 of cash,

compared to $28,784 as of March 31, 2020.

As of June 30, 2020, the Company had access to draw an additional $4,980,492 on the

notes payable, related party and $3,000,000 on the Convertible Debenture Agreement.

Our monthly expenses are anticipated to

be approximately $70,000, which includes salaries of our employees, policy servicing expenses, consulting agreements

As of September 30, 2020, we had $2,452 of

cash, compared to $28,784 as of March 31, 2020.

As of September 30, 2020, the Company had access to draw an additional $4,859,992

on the notes payable, related party and $3,000,000 on the Convertible Debenture Agreement.

Our monthly expenses are anticipated

to be approximately $60,000, which includes salaries of our employees, policy servicing expenses, consulting agreements

and contract labor, general and administrative expenses, estimated legal and accounting expenses.

Outstanding Accounts Payable

as of June 30, 2020 totaled $499,817, and other accrued liabilities totaled $489,559.

We believe that our availability under our

existing lines of credit with related parties, our existing capital resources, together with the issuance of additional notes

as of September 30, 2020 totaled $623,195, and other accrued liabilities totaled $568,864.

We believe that our availability under

our existing lines of credit with related parties, our existing capital resources, together with the issuance of additional notes

payable and convertible debentures will be sufficient to fund our operating working capital requirements for at least the next

12 months, or through August 2021.

June 30, 2020, we owed $3,066,855, including accrued interest, for debt obligations.

12 months, or through November 2021.

September 30, 2020, we owed $3,243,368, including accrued interest, for debt obligations.

We owed $2,696,008 in principal pursuant

to notes payable and lines-of-credits from related parties and had fully paid off the principal owing on the 8% Convertible Debenture.

As of June 30, 2020, one note payable and line-of-credit had a principal balance of $829,508 and is due on August 31, 2021, or

when the Company completes a successful equity raise, at which time principal and interest is due in full.

The second note payable

and line-of-credit had a principal balance of $920,000, and the line of credit is currently extended through August 31, 2021.

At June 30, 2020, unsecured promissory notes had principal balances totaling $826,000 and are due November 30, 2021.

The convertible

debenture agreement, which has no principal balance due as of June 30, 2020 is open through November 30, 2021.

19, 2020, there was $4,931,992 available under the lines-of-credit we currently have with related parties and $3,000,000 available

under the 8% convertible debenture agreement.

During the 3 months ended June 30, 2020, we received $26,458 funding under a

Paycheck Protection Program loan which is currently due April 20, 2022, but is subject to partial or full forgiveness if we comply

with the provisions of the CARES Act (see Note 7 of the Notes to the Condensed Consolidated Financial Statements for more detail).

As of September 30, 2020, one note payable and line-of-credit had a principal balance of $859,508 and is currently extended through

November 30, 2022, or when the Company completes a successful equity raise, at which time principal and interest is due in full.

The second note payable and line-of-credit had a principal balance of $1,010,500, and the line of credit is currently extended

through November 30, 2022.

At September 30, 2020, unsecured promissory notes had principal balances totaling $826,000 and are

due November 30, 2021.

The convertible debenture agreement, which has no principal balance due as of September 30, 2020 is open

through November 30, 2021.

As of November 16, 2020, there was $4,811,691 available under the lines-of-credit we currently have

with related parties and $3,000,000 available under the 8% convertible debenture agreement.

During the six months ended September

30, 2020, we received $26,458 funding under a Paycheck Protection Program loan which is currently due April 20, 2022, but is subject

to partial or full forgiveness if we comply with the provisions of the CARES Act (see Note 7 of the Notes to the Condensed Consolidated

Financial Statements for more detail).

Accounting Policies and Estimates

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-Q

Item 1. Financial Statements