360 Funds N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number 811-21726

360 Funds

(Exact name of registrant as specified in charter)

4300 Shawnee Mission Parkway, Suite 100,      Fairway, KS	66205
(Address of principal executive offices)	(Zip code)

The Corporation Trust Company 

Corporation Trust Center 

1209 Orange St. 

Wilmington, DE 19801 

(Name and address of agent for service) 

With Copies To: 

Bo J. Howell 

FinTech Law, LLC 

6224 Turpin Hills Dr. 

Cincinnati, Ohio 45244

Registrant’s telephone number, including area code: 877-244-6235

Date of fiscal year end: 02/28/2023

Date of reporting period: 08/31/2022

ITEM 1. REPORTS TO SHAREHOLDERS

The Semi-Annual report to Shareholders of the Stringer Growth Fund (the “Fund”), a series of the 360 Funds (the “registrant”), for the period ended August 31, 2022 pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1), is filed herewith.

 

Stringer Growth Fund

Class A Shares (Ticker Symbol: SRGAX)

Class C Shares (Ticker Symbol: SRGCX)

Institutional Class Shares (Ticker Symbol: SRGIX)

A series of the

360 Funds

SEMI-ANNUAL REPORT

AUGUST 31, 2022

Investment Adviser

Stringer Asset Management, LLC

5050 Poplar Avenue, Suite 1103

Memphis, TN 38157

IMPORTANT NOTE: As permitted by regulations adopted by the SEC, paper copies of the Fund’s shareholder reports will no longer be sent by mail unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an e-mail request. Your election to receive reports in paper will apply to all funds held with the Fund complex/your financial intermediary.

TABLE OF CONTENTS

INVESTMENT HIGHLIGHTS	1
SCHEDULE OF INVESTMENTS	2
STATEMENT OF ASSETS AND LIABILITIES	3
STATEMENT OF OPERATIONS	4
STATEMENTS OF CHANGES IN NET ASSETS	5
FINANCIAL HIGHLIGHTS	6
NOTES TO THE FINANCIAL STATEMENTS	9
ADDITIONAL INFORMATION	15
INFORMATION ABOUT YOUR FUND’S EXPENSES	18

Stringer Growth Fund SEMI-ANNUAL REPORT

INVESTMENT HIGHLIGHTS

August 31, 2022 (Unaudited)

The investment objective of the Stringer Growth Fund (the “Fund”) is long-term growth of capital. To meet its investment objective, the Fund will invest primarily in unaffiliated exchange-traded funds (“ETFs”). The underlying ETFs will invest in various securities including, but not limited to, domestic equity securities (including large-, mid-and small-cap stocks), stocks offered in international markets, including emerging markets, domestic fixed income securities, foreign debt securities, and cash or cash equivalents. The Fund may also invest in alternative sector ETFs, such as commodity and real estate ETFs, as well as exchange-traded notes (“ETNs”). ETNs are unsecured debt obligations of investment banks which are traded on exchanges and the returns of which are linked to the performance of market indices. The Fund will generally invest in ETNs which are linked to commodities indices; however, investing in ETNs is not equivalent to investing directly in index components or the relevant index itself. The Fund may also invest directly in domestic equity securities (including large-, small-and mid-cap stocks), stocks offered in international markets, including emerging markets, and unaffiliated open-end investment companies.

The Fund is designed to meet investor needs for a diversified portfolio solution with a defined risk objective of long-term growth through a fully managed investment policy utilizing primarily ETFs as well as United States and foreign equity securities, debt and money market securities, the combination of which will be varied from time to time both with respect to types of securities and markets in response to changing market and economic trends. The portfolio is built around a strategic allocation which allocates the portfolio’s investments to large cap stocks, small-and mid-cap stocks, international securities (including emerging markets), and other investments, primarily through investments in ETFs.

 

The percentages in the above graph are based on the portfolio holdings of the Fund as of August 31, 2022 and are subject to change.

1 

STRINGER GROWTH FUND
SCHEDULE OF INVESTMENTS
August 31, 2022 (Unaudited)	SEMI-ANNUAL REPORT

	Shares		Value
EXCHANGE-TRADED FUNDS  -  95.25%
DEBT FUND - 5.07%
First Trust Preferred Securities and Income ETF		94,634	$	1,668,398
EQUITY FUNDS - 90.18%
Ballast Small/Mid Cap ETF		65,582		2,077,225
Financial Select Sector SPDR Fund		85,086		2,812,092
FlexShares Quality Dividend Index Fund		45,834		2,408,577
Health Care Select Sector SPDR Fund		10,435		1,301,871
Invesco Russell 1000 Dynamic Multifactor ETF		49,181		2,075,930
iShares MSCI Global Min Vol Factor ETF		28,495		2,701,896
iShares MSCI International Quality Factor ETF		63,220		1,929,474
iShares MSCI USA Momentum Factor ETF		15,268		2,146,070
iShares MSCI USA Value Factor ETF		18,585		1,717,254
Overlay Shares Large Cap Equity ETF		83,919		2,709,929
Simplify US Equity PLUS Downside Convexity ETF		75,133		2,031,596
SPDR MSCI EAFE StrategicFactors ETF		42,184		2,575,755
Technology Select Sector SPDR Fund		12,212		1,651,795
Vanguard Growth ETF		6,297		1,507,250
				29,646,714
TOTAL EXCHANGE-TRADED FUNDS (Cost $32,059,966)				31,315,112
SHORT-TERM INVESTMENTS  -  4.85%
Federated Hermes Government Obligations Fund - Institutional Shares, 2.11% (a)		1,594,052		1,594,052
SHORT-TERM INVESTMENTS (Cost $1,594,052)				1,594,052
INVESTMENTS AT VALUE (Cost $33,654,018)  - 100.10%			$	32,909,164
LIABILITIES IN EXCESS OF OTHER ASSETS, NET  -  (-0.10%)				(32,735	)
NET ASSETS - 100.00%			$	32,876,429

Percentages are stated as a percent of net assets.

^(a) Rate shown represents the 7-day yield at August 31, 2022, is subject to change and resets daily.

ETF - Exchange-Traded Fund

The accompanying notes are an integral part of these financial statements.

2 

STRINGER GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2022 (Unaudited)	SEMI-ANNUAL REPORT

Assets:
Investments, at cost	$	33,654,018
Investments, at value	$	32,909,164
Receivables:
Interest		3,434
Fund shares sold		2,769
Prepaid expenses		25,832
Total assets		32,941,199
Liabilities:
Payables:
Fund shares redeemed		39,626
Due to Adviser		5,471
Accrued distribution (12b-1) fees		7,194
Due to administrator		7,382
Accrued expenses		5,097
Total liabilities		64,770
Net Assets	$	32,876,429
Sources of Net Assets:
Paid-in beneficial interest	$	34,865,739
Total aumulated deficit		(1,989,310	)
Total Net Assets (Unlimited $0 par value shares of beneficial interest authorized)	$	32,876,429
Class A Shares:
Net assets	$	4,696,782
Shares Outstanding (Unlimited $0 par value shares of beneficial interest authorized)		426,636
Net Asset Value Per Share	$	11.01
Maximum Offering Price Per Share (a)	$	11.65
Minimum Redemption Price Per Share (b)	$	10.90
Class C Shares:
Net assets	$	5,275,777
Shares Outstanding (Unlimited $0 par value shares of beneficial interest authorized)		488,314
Net Asset Value and Offering Price Per Share	$	10.80
Minimum Redemption Price Per Share (c)	$	10.69
Institutional Class Shares:
Net assets	$	22,903,870
Shares Outstanding (Unlimited $0 par value shares of beneficial interest authorized)		2,074,890
Net Asset Value, Offering and Redemption Price Per Share	$	11.04

^(a) A maximum sales charge of 5.50% is imposed on Class A shares. 

^(b) Investments in Class A shares made at or above the $1 million breakpoint are not subject to an initial sales charge and may be subject to a 1.00% contingent deferred sales charge (“CDSC”) on shares redeemed within one year from the date of purchase. 

^(c) A contingent deferred sales charge (“CDSC”) of 1.00% is imposed in the event of certain Class C redemption transactions made within one year from the date of purchase.

The accompanying notes are an integral part of these financial statements.

3 

STRINGER GROWTH FUND
STATEMENT OF OPERATIONS
	SEMI-ANNUAL REPORT

	For the Six Months Ended August 31, 2022
	(Unaudited)
Investment income:
Dividends	$	364,441
Interest		8,538
Total investment income		372,979
Expenses:
Advisory fees (Note 5)		171,925
Distribution (12b-1) fees - Class A (Note 5)		4,492
Distribution (12b-1) fees - Class C (Note 5)		39,637
Accounting and transfer agent fees and expenses (Note 5)		75,123
Registration and filing fees		20,536
Reports to shareholders		10,672
Trustee fees and expenses		10,120
Legal fees		8,810
Miscellaneous		8,321
Audit fees		6,766
Custodian fees		4,940
Insurance		2,674
Pricing fees		1,110
Non-12b-1 shareholder servicing expense		454
Total expenses		365,580
Less: fees waived (Note 5)		(131,428	)
Net expenses		234,152
Net investment income		138,827
Realized and unrealized loss:
Net realized loss on:
Investments		(1,412,634	)
Net realized loss on investments		(1,412,634	)
Net change in unrealized depreciation on:
Investments		(3,275,467	)
Net change in unrealized depreciation		(3,275,467	)
Net realized and unrealized loss on investments		(4,688,101	)
Net decrease in net assets resulting from operations	$	(4,549,274	)

The accompanying notes are an integral part of these financial statements.

4 

STRINGER GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
	SEMI-ANNUAL REPORT

	For the Six Months Ended August 31, 2022			For the Year Ended February 28, 2022
	(Unaudited)
Increase in net assets from:
Operations:
Net investment income	$	138,827		$	153,522
Net realized gain (loss) on investments		(1,412,634	)		3,463,630
Net change in unrealized depreciation on investments		(3,275,467	)		(2,426,572	)
Net increase (decrease) in net assets resulting from operations		(4,549,274	)		1,190,580
Distributions to shareholders from:
Distributable earnings - Class A		—			(578,243	)
Distributable earnings - Class C		—			(1,299,324	)
Distributable earnings - Institutional Class		—			(3,653,376	)
Total distributions		—			(5,530,943	)
Beneficial interest transactions (Note 3):
Increase (decrease) in net assets from beneficial interest transactions		(1,632,365	)		13,130,078
Increase (decrease) in net assets		(6,181,639	)		8,789,715
Net Assets:
Beginning of year/period		39,058,068			30,268,353
End of year/period	$	32,876,429		$	39,058,068

The accompanying notes are an integral part of these financial statements.

5 

STRINGER GROWTH FUND
FINANCIAL HIGHLIGHTS
	SEMI-ANNUAL REPORT

The following tables set forth the per share operating performance data for a share of beneficial interest outstanding, total return, ratios to average net assets and other supplemental data for the years/period indicated.

	Class A
	For the Six Months Ended August 31, 2022			For the Year Ended February 28, 2022			For the Year Ended February 28, 2021			For the Year Ended February 29, 2020			For the Year Ended February 28, 2019			For the Year Ended February 28, 2018
	(Unaudited)
Net Asset Value, Beginning of Year/Period	$	12.49		$	13.64		$	11.42		$	11.28		$	12.65		$	12.01
Investment Operations:
Net investment income		0.05	(d)		0.07	(d)		0.07	(d)		0.09	(d)		0.12			0.11
Net realized and unrealized gain (loss) on investments		(1.53	)		0.78			2.94			0.23			(0.47	)		1.46
Total from investment operations		(1.48	)		0.85			3.01			0.32			(0.35	)		1.57
Distributions:
From net investment income		—			(0.05	)		(0.07	)		(0.10	)		(0.09	)		(0.11	)
From net realized capital gains		—			(1.95	)		(0.72	)		(0.08	)		(0.93	)		(0.82	)
Total distributions		—			(2.00	)		(0.79	)		(0.18	)		(1.02	)		(0.93	)
Net Asset Value, End of Year/Period	$	11.01		$	12.49		$	13.64		$	11.42		$	11.28		$	12.65
Total Return (a)		(11.85	)%(e)		5.01	%		26.60	%		2.70	%		(1.97	)%		13.09	%
Ratios/Supplemental Data
Net assets, end of year/period (in 000’s)	$	4,697		$	3,953		$	4,028		$	3,730		$	4,355		$	10,083
Ratio of expenses to average net assets:
Before fees waived and expenses absorbed (b)		2.03	%(f)		1.98	%		2.16	%		1.86	%		1.70	%		1.63	%
After fees waived and expenses absorbed (b)		1.30	%(f)		1.30	%		1.30	%		1.30	%		1.30	%		1.37	%
Ratio of net investment income (loss):
Before fees waived and expenses absorbed (b) (c)		0.04	%(f)		(0.18	)%		(0.27	)%		0.19	%		0.39	%		0.60	%
After fees waived and expenses absorbed (b) (c)		0.77	%(f)		0.50	%		0.60	%		0.75	%		0.79	%		0.86	%
Portfolio turnover rate		36	%(e)		105	%		212	%		68	%		68	%		126	%

(a)	Total Return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends. Had the Adviser not waived fees/reimbursed expenses, total returns would have been lower. The returns shown exclude the impact of any sales loads and contingent deferred sales charges.
(b)	These ratios exclude the impact of the expenses of the underlying investment companies in which the Fund invests.
(c)	Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(d)	Net investment income per share is based on average shares outstanding for the six month period ended August 31, 2022 and for the years ended February 28, 2022, February 28, 2021 and February 29, 2020.
(e)	Not annualized.
(f)	Annualized.

The accompanying notes are an integral part of these financial statements.

6 

STRINGER GROWTH FUND
FINANCIAL HIGHLIGHTS
	SEMI-ANNUAL REPORT

The following tables set forth the per share operating performance data for a share of beneficial interest outstanding, total return, ratios to average net assets and other supplemental data for the years/period indicated.

	Class C
	For the Six Months Ended August 31, 2022			For the Year Ended February 28, 2022			For the Year Ended February 28, 2021			For the Year Ended February 29, 2020			For the Year Ended February 28, 2019			For the Year Ended February 28, 2018
	(Unaudited)
Net Asset Value, Beginning of Year/Period	$	12.30		$	13.51		$	11.34		$	11.19		$	12.55		$	11.92
Investment Operations:
Net investment income (loss)		0.00	(a)(e)		(0.04	)(e)		(0.02	)(e)		0.00	(a)(e)		0.00	(a)		0.01
Net realized and unrealized gain (loss) on investments		(1.50	)		0.78			2.91			0.23			(0.43	)		1.46
Total from investment operations		(1.50	)		0.74			2.89			0.23			(0.43	)		1.47
Distributions:
From net investment income		—			—			—			—			—			(0.02	)
From net realized capital gains		—			(1.95	)		(0.72	)		(0.08	)		(0.93	)		(0.82	)
Total distributions		—			(1.95	)		(0.72	)		(0.08	)		(0.93	)		(0.84	)
Net Asset Value, End of Year/Period	$	10.80		$	12.30		$	13.51		$	11.34		$	11.19		$	12.55
Total Return (b)		(12.20	)%(f)		4.29	%		25.69	%		1.99	%		(2.68	)%		12.27	%
Ratios/Supplemental Data
Net assets, end of year/period (in 000’s)	$	5,276		$	8,840		$	9,924		$	8,380		$	11,094		$	14,648
Ratio of expenses to average net assets:
Before fees waived and expenses absorbed (c)		2.78	%(g)		2.73	%		2.91	%		2.61	%		2.45	%		2.38	%
After fees waived and expenses absorbed (c)		2.05	%(g)		2.05	%		2.05	%		2.05	%		2.05	%		2.12	%
Ratio of net investment income (loss):
Before fees waived and expenses absorbed (c) (d)		(0.72	)%(g)		(0.95	)%		(1.02	)%		(0.53	)%		(0.33	)%		(0.15	)%
After fees waived and expenses absorbed (c) (d)		0.01	%(g)		(0.27	)%		(0.16	)%		0.03	%		0.07	%		0.11	%
Portfolio turnover rate		36	%(f)		105	%		212	%		68	%		68	%		126	%

^(a) Net investment income (loss) per share was less than $0.01 per share for the six month period ended August 31, 2022 and for the years ended February 29, 2020 and February 28, 2019.

^(b) Total Return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends. Had the Adviser not waived fees/reimbursed expenses, total returns would have been lower. The returns shown exclude the impact of any contingent deferred sales charges.

^(c) These ratios exclude the impact of the expenses of the underlying investment companies in which the Fund invests.

^(d) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

^(e) The ratio is net investment income (loss) per share and based on average outstanding shares for the six month period ended August 31, 2022 and for the years ended February 28, 2022, February 28, 2021 and February 29, 2020.

^(f) Not annualized.

^(g) Annualized.

The accompanying notes are an integral part of these financial statements.

7 

STRINGER GROWTH FUND
FINANCIAL HIGHLIGHTS
	SEMI-ANNUAL REPORT

The following tables set forth the per share operating performance data for a share of beneficial interest outstanding, total return, ratios to average net assets and other supplemental data for the years/period indicated.

	Institutional Class
	For the Six Months Ended August 31, 2022			For the Year Ended February 28, 2022			For the Year Ended February 28, 2021			For the Year Ended February 29, 2020			For the Year Ended February 28, 2019			For the Year Ended February 28, 2018
	(Unaudited)
Net Asset Value, Beginning of Year/Period	$	12.51		$	13.65		$	11.42		$	11.29		$	12.68		$	12.04
Investment Operations:
Net investment income		0.06	(d)		0.10	(d)		0.10	(d)		0.12	(d)		0.14			0.15
Net realized and unrealized gain (loss) on investments		(1.53	)		0.79			2.95			0.22			(0.46	)		1.46
Total from investment operations		(1.47	)		0.89			3.05			0.34			(0.32	)		1.61
Distributions:
From net investment income		—			(0.08	)		(0.10	)		(0.13	)		(0.14	)		(0.15	)
From net realized capital gains		—			(1.95	)		(0.72	)		(0.08	)		(0.93	)		(0.82	)
Total distributions		—			(2.03	)		(0.82	)		(0.21	)		(1.07	)		(0.97	)
Net Asset Value, End of Year/Period	$	11.04		$	12.51		$	13.65		$	11.42		$	11.29		$	12.68
Total Return (a)		(11.75	)%(e)		5.34	%		26.98	%		2.86	%		(1.69	)%		13.35	%
Ratios/Supplemental Data
Net assets, end of year/period (in 000’s)	$	22,904		$	26,265		$	16,316		$	13,575		$	15,485		$	16,664
Ratio of expenses to average net assets:
Before fees waived and expenses absorbed (b)		1.78	%(f)		1.73	%		1.91	%		1.61	%		1.45	%		1.38	%
After fees waived and expenses absorbed (b)		1.05	%(f)		1.05	%		1.05	%		1.05	%		1.05	%		1.12	%
Ratio of net investment income (loss):
Before fees waived and expenses absorbed (b) (c)		0.28	%(f)		0.04	%		(0.03	)%		0.46	%		0.79	%		0.85	%
After fees waived and expenses absorbed (b) (c)		1.01	%(f)		0.72	%		0.83	%		1.02	%		1.19	%		1.11	%
Portfolio turnover rate		36	%(e)		105	%		212	%		68	%		68	%		126	%

^(a) Total Return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends. Had the Adviser not waived fees/reimbursed expenses, total returns would have been lower.

^(b) These ratios exclude the impact of the expenses of the underlying investment companies in which the Fund invests.

^(c) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

^(d) Net investment income per share is based on average shares outstanding for the six month period ended August 31, 2022 and for the years ended February 28, 2022, February 28, 2021 and February 29, 2020.

^(e) Not annualized.

^(f) Annualized.

The accompanying notes are an integral part of these financial statements.

8 

Stringer Growth Fund SEMI-ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

August 31, 2022 (Unaudited)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The Stringer Growth Fund (the “Fund”) is a series of 360 Funds (the “Trust”). The Trust was organized on February 24, 2005 as a Delaware statutory trust. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940 (the “1940 Act”). The Fund is a diversified fund. The Fund’s investment objective is long-term growth of capital. The Fund’s investment adviser is Stringer Asset Management, LLC (the “Adviser”). The Fund offers three classes of shares, Class A, Class C and Institutional Class shares. Each class of shares commenced operations on March 27, 2013. Each class differs as to sales and redemption charges and ongoing fees. Income and realized/unrealized gains or losses are allocated to each class based on relative share balances.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. The Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.

a)           Security Valuation – All investments in securities are recorded at their estimated fair value, as described in Note 2.

b)           Exchange-Traded Funds – The Fund may invest in Exchange-Traded Funds (“ETFs”). ETFs are registered investment companies and incur fees and expenses such as operating expenses, licensing fees, registration fees, trustees fees, and marketing expenses, and ETF shareholders, such as the Fund, pay their proportionate share of these expenses. Your cost of investing in the Fund will generally be higher than the cost of investing directly in ETFs. By investing in the Fund, you will indirectly bear fees and expenses charged by the underlying ETFs in which the Fund invests in addition to the Fund’s direct fees and expenses.

c)           Federal Income Taxes – The Fund has qualified and intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

As of and during the six months ended August 31, 2022, the Fund did not have a liability for any unrecognized tax expenses. The Fund recognizes interest and penalties, if any, related to unrecognized tax liability as income tax expense in the Statement of Operations. During the six months ended August 31, 2022, the Fund did not incur any interest or penalties. The Fund identifies its major tax jurisdictions as U.S. Federal and Delaware State. As required by accounting principles generally accepted in the United States of America (“GAAP”), ASC 740, management has analyzed the Fund’s tax positions taken on Federal income tax returns for all open tax years (tax years ended 2019, 2020, 2021, 2022) and for the six months ended August 31, 2022 and has concluded that no provision for income tax is required in these financial statements.

d)           Distributions to Shareholders – Dividends from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. Income and capital gain distributions, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. GAAP requires that permanent financial reporting differences relating to shareholder distributions be reclassified to paid-in beneficial interest. There were no reclassifications necessary for the six months ended August 31, 2022.

e)           Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

f)            Other – Investment and shareholder transactions are recorded on trade date. The Fund determines the gain or loss realized from the investment transactions by comparing the original cost of the security lot sold with the net sales proceeds. Dividend income is recognized on the ex-dividend date or as soon as information is available to the Fund and interest income is recognized on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

9

Stringer Growth Fund SEMI-ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

August 31, 2022 (Unaudited)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

g)          Contingent Deferred Sales Charges – For initial purchases of Class A shares of the Fund of $1 million or more, a broker-dealer’s commission (equal to 1.00% of such purchases over $1 million) may be paid by the Adviser to participating unaffiliated broker-dealers through whom such purchases are effected. A contingent deferred sales charge (“CDSC”) may be imposed upon certain redemptions of Class A shares purchased at net asset value in amounts totaling $1 million or more if the dealer’s commission described above was paid by the Adviser and the shares are redeemed within one year from the date of purchase. The Adviser may advance a commission to a dealer that sells such Class A shares and any CDSC will be reimbursed to the Adviser and will be equal to 1.00% of the lesser of (1) the net asset value at the time of purchase of the Class A shares being redeemed; or (2) the net asset value of such shares at the time of redemption. There were no CDSC fees from Class A redemptions reimbursed to the Adviser during the six months ended August 31, 2022.

For initial purchases of Class C shares of the Fund, a broker-dealer’s commission (equal to 1.00% of such purchases) may be paid by the Adviser to participating unaffiliated broker-dealers through whom such purchases are effected. A CDSC of 1.00% may be imposed on certain redemptions of Class C shares that are redeemed within one year from the date of purchase. The Adviser may advance a commission to a dealer that sells Class C shares and any CDSC will be reimbursed to the Adviser and will be a percentage of the dollar amount of shares redeemed and will be assessed on an amount equal to the net asset value at the time of purchase of the Class C shares being redeemed. During the six months ended August 31, 2022, CDSC fees paid from Class C redemptions of $1,284 were reimbursed to the Adviser by the Fund.

2. SECURITIES VALUATIONS

Processes and Structure

The Fund’s Board of Trustees (the “Board”) has adopted guidelines for valuing securities and other derivative instruments including in circumstances in which market quotes are not readily available, and has delegated authority to the Adviser to apply those guidelines in determining fair value prices, subject to review by the Board.

Hierarchy of Fair Value Inputs

The Fund utilizes various methods to measure the fair value of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:

● Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

● Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

● Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

10

Stringer Growth Fund SEMI-ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

August 31, 2022 (Unaudited)

2. SECURITIES VALUATIONS (continued)

Fair Value Measurements

A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis follows.

Equity securities (common stock and ETFs) – Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, ETFs, and the movement of the certain indexes of securities based on a statistical analysis of the historical relationship and that are categorized in Level 2. Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized in Level 2.

Money market funds – Money market funds are valued at their net asset value of $1.00 per share and are categorized as Level 1.

The following table summarizes the inputs used to value the Fund’s assets and liabilities measured at fair value as of August 31, 2022.

Financial Instruments – Assets

Security Classification (1)	Level 1		Level 2		Level 3		Totals
Exchange-Traded Funds (2)	$	31,315,112	$	—	$	—	$	31,315,112
Short Term Investments		1,594,052		—		—		1,594,052
Total Assets	$	32,909,164	$	—	$	—	$	32,909,164

⁽¹⁾       As of and during the six months ended August 31, 2022, the Fund held no securities that were considered to be “Level 3” securities (those valued using significant unobservable inputs). Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable.

⁽²⁾       All ETFs held in the Fund are Level 1 securities. For a detailed break-out of ETFs by investment type, please refer to the Schedule of Investments.

During the six months ended August 31, 2022, no securities were valued using alternative procedures approved by the Board. The Fund began complying with Rule 2a-5 effective September 8, 2022. Effective on that date, securities for which market quotations are not readily available (as defined in Rule 2a-5) will have a fair value determined by the Valuation Designee (also as defined by Rule 2a-5) in accordance with the fair value policies and procedures adopted by the Board and the Adviser. The Board will oversee the Valuation Designee’s fair value determinations.

3. BENEFICIAL INTEREST TRANSACTIONS

Transactions in shares of beneficial interest for the Fund for the six months ended August 31, 2022 were as follows:

	Sold		Redeemed			Reinvested		Net Increase (Decrease)
Class A
Shares		176,726		(66,620	)		—		110,106
Value	$	1,984,416	$	(762,593	)	$	—	$	1,221,823
Class C
Shares		4,257		(234,786	)		—		(230,529	)
Value	$	49,145	$	(2,612,988	)	$	—	$	(2,563,843	)

11

Stringer Growth Fund SEMI-ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

August 31, 2022 (Unaudited)

3. BENEFICIAL INTEREST TRANSACTIONS (continued)

	Sold		Redeemed			Reinvested		Net Increase (Decrease)
Institutional Class
Shares		167,031		(191,982	)		—		(24,951	)
Value	$	1,965,095	$	(2,255,440	)	$	—	$	(290,345	)

Transactions in shares of beneficial interest for the Fund for the year ended February 28, 2022 were as follows:

	Sold		Redeemed			Reinvested		Net Increase (Decrease)
Class A
Shares		24,018		(40,819	)		37,921		21,120
Value	$	353,379	$	(574,885	)	$	514,967	$	293,461
Class C
Shares		17,597		(124,440	)		91,072		(15,771	)
Value	$	253,038	$	(1,731,638	)	$	1,219,448	$	(259,152	)
Institutional Class
Shares		901,586		(252,370	)		255,170		904,386
Value	$	13,320,892	$	(3,692,886	)	$	3,467,763	$	13,095,769

4. INVESTMENT TRANSACTIONS

For the six months ended August 31, 2022, aggregate purchases and sales of investment securities (excluding short-term investments) for the Fund were as follows:

Purchases		Sales
$	12,597,771	$	14,417,934

There were no government securities purchased or sold during the period.

5. ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS

The Fund has entered into an Investment Advisory Agreement (the “Advisory Agreement”) with the Adviser. Pursuant to the Advisory Agreement, the Adviser manages the operations of the Fund and manages the Fund’s investments in accordance with the stated policies of the Fund. As compensation for the investment advisory services provided to the Fund, the Adviser will receive a monthly management fee equal to an annual rate of 0.95% of the Fund’s net assets.

The Adviser has entered into an Expense Limitation Agreement with the Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Fund, if necessary, in an amount that limits the Fund’s annual operating expenses (exclusive of interest, taxes, brokerage fees and commissions, other expenditures that are capitalized in accordance with generally accepted accounting principles, acquired funds fees and expenses, other extraordinary expenses not incurred in the ordinary course of the Fund’s business, interest and dividend expense on securities sold short, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 of the 1940 Act to not more than 1.05% until and through at least June 30, 2023. The current contractual agreement cannot be terminated before June 30, 2023 without the Board’s approval. Please see the table below for information regarding the management fees earned, fee waivers and expenses reimbursed during the six months ended August 31, 2022, as well as amounts due to (from) the Adviser at August 31, 2022.

Advisory fees earned	$	171,925
Fees waived		131,428
Payable to (Due from) Adviser		5,471

12

Stringer Growth Fund SEMI-ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

August 31, 2022 (Unaudited)

5. ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS (continued)

Subject to approval by the Fund’s Board, any waiver or reimbursement under the Expense Limitation Agreement is subject to repayment by the Fund within the three years following the month in which such waiver or reimbursement occurred, but only if the Fund can make the payment without exceeding the 1.05% expense limitation. The amounts subject to repayment by the Fund, pursuant to the aforementioned conditions, are as follows:

February 28, 2023		February 29, 2024		February 28, 2025		February 28, 2026		Totals
$	166,586	$	236,559	$	247,755	$	131,428	$	782,328

The Fund has entered into an Investment Company Services Agreement (“ICSA”) with M3Sixty Administration, LLC (“M3Sixty”). Pursuant to the ICSA, M3Sixty will provide day-to-day operational services to the Fund including, but not limited to: (a) Fund accounting services; (b) financial statement preparation; (c) valuation of the Fund’s portfolio securities; (d) pricing the Fund’s shares; (e) assistance in preparing tax returns; (f) preparation and filing of required regulatory reports; (g) communications with shareholders; (h) coordination of Board and shareholder meetings; (i) monitoring the Fund’s legal compliance; and (j) maintaining shareholder account records.

For the six months ended August 31, 2022, the Fund accrued servicing fees, including out of pocket expenses, and have amounts payable to M3Sixty as follows.

Service fees accrued	$	75,123
Service fees payable		7,382

Certain officers and a Trustee of the Fund are also employees of M3Sixty.

The Fund has entered into a Distribution Agreement with Matrix 360 Distributors, LLC (“M3SixtyD”). Pursuant to the Distribution Agreement, M3SixtyD provides distribution services to the Fund. M3SixtyD serves as underwriter/distributor of the Fund. During the six months ended August 31, 2022, commissions of $259 were paid to M3SixtyD.

M3SixtyD is an affiliate of M3Sixty.

The Fund has adopted a Distribution Plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act for each class of shares. The Fund may expend up to 1.00% for Class C shares and up to 0.25% for Class A shares of the Fund’s average daily net assets annually to pay for any activity primarily intended to result in the sale of shares of the Fund and the servicing of shareholder accounts, provided that the Trustees have approved the category of expenses for which payment is being made.

The distribution plans for the Class A and Class C shares of the Fund took effect March 27, 2013. For the six months ended August 31, 2022, the Fund accrued 12b-1 expenses attributable to Class A shares and Class C shares as follows.

Class A		Class C
$	4,492	$	39,637

6. TAX MATTERS

For U.S. Federal income tax purposes, the cost of securities owned, gross appreciation, gross depreciation, and net unrealized appreciation of the Fund’s investments at August 31, 2022 were as follows:

Cost		Gross Appreciation		Gross Depreciation			Net Depreciation
$	33,703,466	$	1,079,836	$	(1,874,138	)	$	(794,302	)

The difference between book basis unrealized appreciation and tax-basis unrealized appreciation for the Fund is attributable primarily to the tax deferral of losses on wash sales.

13

Stringer Growth Fund SEMI-ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

August 31, 2022 (Unaudited)

6. TAX MATTERS (continued)

The Fund did not pay any distributions during the six months ended August 31, 2022.

The tax character of distributions paid by the Fund during the fiscal year ended February 28, 2022 were as follows:

Long-Term Capital Gains		Ordinary Income
$	1,629,827	$	3,901,116

The Fund’s tax basis distributable earnings are determined only at the end of each fiscal year. As of February 28, 2022, the Fund’s most recent fiscal year-end, the components of distributable earnings presented on an income tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Post-October Capital Losses & Post-December Ordinary Loss			Net Unrealized Appreciation		Total Distributable Earnings
$	—	$	526,803	$	(470,426	)	$	2,503,587	$	2,559,964

Under current tax law, net capital losses realized after October 31st and net ordinary losses incurred after December 31st may be deferred and treated as occurring on the first day of the following fiscal year. The Fund’s carryforward losses, post-October losses and post-December losses are determined only at the end of each fiscal year. As of February 28, 2022, the Fund elected to defer net capital losses and net ordinary losses as indicated in the chart below:

Post-October Losses				Post-December Losses
	Deferred		Utilized		Deferred		Utilized
$	395,381	$	—	$	75,045	$	59,515

7. COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Trust may enter into contracts that may contain a variety of representations and warranties and provide general indemnifications. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, management considers the risk of loss from such claims to be remote.

8. SUBSEQUENT EVENTS

In accordance with GAAP, Management has evaluated the impact of all subsequent events of the Fund through the date the financial statements were issued, and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

14

Stringer Growth Fund SEMI-ANNUAL REPORT

ADDITIONAL INFORMATION

August 31, 2022 (Unaudited)

The Fund files its complete schedules of portfolio holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Forms N-PORT are available on the Commission’s website at http://www.sec.gov. The Fund’s Forms N-PORT may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Commission’s Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-877-244-6235; and on the Commission’s website at http://www.sec.gov.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available without charge, upon request, by calling 1-877-244-6235; and on the Commission’s website at http://www.sec.gov.

Shareholder Tax Information - For the six months ended August 31, 2022, the Fund did not pay any distributions. Tax information is reported from the Fund’s fiscal year and not calendar year, therefore, shareholders should refer to their Form 1099-DIV or other tax information which will be mailed in 2023 to determine the calendar year amounts to be included on their 2022 tax returns. Shareholders should consult their own tax advisors.

15

Stringer Growth Fund SEMI-ANNUAL REPORT

ADDITIONAL INFORMATION

August 31, 2022

BOARD OF TRUSTEES, OFFICERS AND PRINCIPAL SHAREHOLDERS - (Unaudited)

The Trustees are responsible for the management and supervision of the Fund. The Trustees approve all significant agreements between the Trust, on behalf of the Fund, and those companies that furnish services to the Fund; review performance of the Fund; and oversee activities of the Fund. This section provides information about the persons who serve as Trustees and Officers to the Trust and Fund, respectively, as well as the entities that provide services to the Fund. The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling (877) 244-6235.

Trustees and Officers.  Following are the Trustees and Officers of the Trust, their age and address, their present position with the Trust or the Fund, and their principal occupation during the past five years. Each of the Trustees of the Trust will generally hold office indefinitely. The Officers of the Trust will hold office indefinitely, except that: (1) any Officer may resign or retire and (2) any Officer may be removed any time by written instrument signed by at least two-thirds of the number of Trustees prior to such removal. In case a vacancy or an anticipated vacancy on the Board shall for any reason exist, the vacancy shall be filled by the affirmative vote of a majority of the remaining Trustees, subject to certain restrictions under the 1940 Act. Those Trustees who are “interested persons” (as defined in the 1940 Act) by virtue of their affiliation with either the Trust or the Adviser, are indicated in the table. The address of each trustee and officer is 4300 Shawnee Mission Parkway, Suite 100, Fairway, KS 66205.

Name, Address and Year of Birth (“YOB”)	Position(s) Held with Trust	Length of Service	Principal Occupation(s) During Past 5 Years	Number of  Series Overseen	Other Directorships During Past 5 Years
Independent Trustees
Gary W. DiCenzo  YOB: 1962	Trustee and Independent Chairman	Since 2014 Since 2019	Partner, Cognios Capital (investment management firm) (2015–2020) Chief Executive officer (2015–2019).	Six	Volt ETF Trust (2021–present)
Arthur Q. Falk YOB : 1937	Trustee	Since 2011	Retired.	Six	None
Tom M. Wirtshafter YOB : 1954	Trustee	Since  2011	Senior Vice President, American Portfolios Financial Services, (broker-dealer), American Portfolios Advisors (investment adviser) (2009–Present).	Six	None
Steven D. Poppen YOB : 1968	Trustee	Since 2018	Executive Vice President and Chief Financial Officer, Minnesota Vikings (professional sports organization) (1999–present).	Six	IDX Funds (2015–2021)
Thomas J. Schmidt YOB: 1963	Trustee	Since 2018	Principal, Tom Schmidt & Associates Consulting, LLC (2015–Present)	Six	Lind Capital Partners Municipal Credit Income Fund (2021–present)
Interested Trustee*
Randall K. Linscott YOB: 1971	President	Since 2013	Chief Executive Officer, M3Sixty Administration, LLC (2013–present)	Six	IDX Funds (2015–2021)

* The Interested Trustee is an Interested Trustee because he is Chief Executive Officer and principal owner of M3Sixty Administration, LLC, the Fund’s administrator and transfer agent.

16

Stringer Growth Fund SEMI-ANNUAL REPORT

ADDITIONAL INFORMATION

August 31, 2022

BOARD OF TRUSTEES, OFFICERS AND PRINCIPAL SHAREHOLDERS - (Unaudited)(continued)

Name, Address and Year of Birth (“YOB”)	Position(s) Held with Trust	Length of Service	Principal Occupation(s) During Past 5 Years	Number of  Series Overseen	Other Directorships During Past 5 Years
Officers
Richard Yates YOB: 1965	Chief Compliance Officer and Secretary	Since 2021	Of Counsel, McElroy Deutsch (2020–present); Head of Compliance, M3Sixty Administration, LLC (2021–present); Chief Compliance Officer and Secretary, M3Sixty Funds Trust (2021–present); Founder, The Yates Law Firm (2018–2020); Chief Legal Officer, Manning & Napier, Inc. (2000–2018).	N/A	N/A
Larry E. Beaver, Jr. YOB: 1969	Treasurer	Since 2021	Fund Accounting, Administration and Tax Officer, M3Sixty Administration, LLC (2017–Present); Director of Fund Accounting & Administration, M3Sixty Administration, LLC (2005–2017); Assistant Treasurer, 360 Funds Trust (2017–2021); Chief Accounting Officer, Amidex Funds, Inc. (2003–2020); Assistant Treasurer, Capital Management Investment Trust (2017–2018); Assistant Treasurer, IDX Funds (2017–2021; Assistant Treasurer, WP Funds Trust (2017–2021).	N/A	N/A
Tony DeMarino YOB: 1970	Anti-Money Laundering (“AML”) Officer	Since 2022	Principal Executive Officer, Matrix 360 Distributors, LLC (2022–present); Partner, Primark Capital (2020–2022); Head of Distribution, Cognios Capital, LLC (2016–2020)	N/A	N/A

Remuneration Paid to Trustees and Officers - Officers of the Trust and Trustees who are “interested persons” of the Trust or the Adviser will receive no salary or fees from the Trust. Officers of the Trust and Interested Trustees do receive compensation directly from certain service providers to the Trust, including M3SixtyD and M3Sixty. Each Trustee who is not an “interested person” (an “Independent Trustee”) receives a $5,000 annual retainer (paid quarterly). In addition, each Independent Trustee receives, on a per fund basis: (i) a fee of $1,500 per fund each year (paid quarterly); (ii) a fee of $200 per Board meeting attended; and (iii) a fee of $200 per committee meeting attended. The Trust will also reimburse each Trustee for travel and other expenses incurred in connection with, and/or related to, the performance of their obligations as a Trustee. Officers of the Trust will also be reimbursed for travel and other expenses relating to their attendance at Board meetings.

Name of Trustee1	Aggregate Compensation From the Fund2	Pension or Retirement Benefits Accrued As Part of Portfolio Expenses		Estimated Annual Benefits Upon Retirement	Total Compensation From the Fund Paid to Trustees2
Independent Trustees
Gary W. DiCenzo	$1,767	None	None		$1,767
Arthur Q. Falk	$1,767	None	None		$1,767
Tom M. Wirtshafter	$1,767	None	None		$1,767
Steven D. Poppen	$1,767	None	None		$1,767
Thomas J. Schmidt	$1,767	None	None		$1,767
Interested Trustees
Randall K. Linscott	None	Not Applicable	Not Applicable		None

¹ Each of the Trustees serves as a Trustee to the six series of the Trust.

² Figures are for the six months ended August 31, 2022.

17

Stringer Growth Fund SEMI-ANNUAL REPORT

August 31, 2022

Information About Your Fund’s Expenses - (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as the sales charge (load) imposed on certain subscriptions and the contingent deferred sales charge (“CDSC”) imposed on certain short-term redemptions; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees; and other Fund expenses. The example below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses – The first section of the table provides information about actual account values and actual expenses (relating to the example $1,000 investment made at the beginning of the period). You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes – The second section of the table provides information about the hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), CDSC fees, or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. For more information on transactional costs, please refer to the Fund’s prospectus.

Expenses and Value of a $1,000 Investment for the period from 03/01/22 through 08/31/22
	Beginning Account Value (03/01/2022)		Annualized Expense  Ratio for the Period		Ending Account Value (08/31/2022)		Expenses Paid  During Period (a)
Actual Fund Return (in parentheses)
Class A (-11.85%)	$	1,000.00		1.30%	$	881.50	$	6.17
Class C (-12.20%)	$	1,000.00		2.05%	$	878.00	$	9.70
Institutional Class (-11.75%)	$	1,000.00		1.05%	$	882.50	$	4.98
Hypothetical 5% Fund Return
Class A	$	1,000.00		1.30%	$	1,018.70	$	6.61
Class C	$	1,000.00		2.05%	$	1,014.90	$	10.41
Institutional Class	$	1,000.00		1.05%	$	1,019.90	$	5.35

(a) Expenses are equal to the Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.

18

Stringer Growth Fund SEMI-ANNUAL REPORT

August 31, 2022

Information About Your Fund’s Expenses - (Unaudited)(continued)

For more information on Fund expenses, please refer to the Fund’s prospectus, which can be obtained from your investment representative or by calling 1-877-244-6235. Please read it carefully before you invest or send money.

Total Fund operating expense ratios as stated in the current Fund prospectus dated June 30, 2022 were as follows:
Stringer Growth Fund Class A, gross of fee waivers or expense reimbursements	2.31%
Stringer Growth Fund Class A, after waiver and reimbursement*	1.63%
Stringer Growth Fund Class C, gross of fee waivers or expense reimbursements	3.06%
Stringer Growth Fund Class C, after waiver and reimbursement*	2.38%
Stringer Growth Fund Institutional Class, gross of fee waivers or expense reimbursements	2.06%
Stringer Growth Fund Institutional Class, after waiver and reimbursement*	1.38%

^* Stringer Asset Management, LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Fund, if necessary, in an amount that limits the Fund’s annual operating expenses (exclusive of interest, taxes, brokerage fees and commissions, other expenditures that are capitalized in accordance with generally accepted accounting principles, acquired funds fees and expenses, other extraordinary expenses not incurred in the ordinary course of the Fund’s business, interest and dividend expense on securities sold short, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 of the Investment Company Act of 1940, as amended (the “1940 Act”)) to not more than 1.05% until and through at least June 30, 2023. Subject to approval by the Fund’s Board, any waiver under the Expense Limitation Agreement is subject to repayment by the Fund within the three fiscal years following the year in which such waiver occurred, if the Fund is able to make the payment without exceeding the 1.05% expense limitation. The current contractual agreement cannot be terminated prior to at least one year after the effective date without the Board of Trustees’ approval. Total Gross Operating Expenses (Annualized) during six months ended August 31, 2022 were 2.03%, 2.78% and 1.78% for the Class A, Class C and Institutional Class shares, respectively. Please see the Information About Your Fund’s Expenses, the Financial Highlights and Notes to Financial Statements (Note 5) sections of this report for gross and net expense related disclosures during the six months ended August 31, 2022.

19

360 FUNDS

4300 Shawnee Mission Parkway

Suite 100

Fairway, KS 66205

INVESTMENT ADVISER

Stringer Asset Management, LLC

5050 Poplar Avenue

Suite 1103

Memphis, TN 38157

ADMINISTRATOR & TRANSFER AGENT

M3Sixty Administration, LLC

4300 Shawnee Mission Parkway

Suite 100

Fairway, KS 66205

DISTRIBUTOR

Matrix 360 Distributors, LLC

4300 Shawnee Mission Parkway

Suite 100

Fairway, KS 66205

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BBD, LLP

1835 Market Street

3^rd Floor

Philadelphia, PA 19103

LEGAL COUNSEL

FinTech Law, LLC

6224 Turpin Hills Dr.

Cincinnati, Ohio 45244

CUSTODIAN BANK

Fifth Third Bank

Fifth Third Center
38 Fountain Square Plaza
Cincinnati, OH 45263

ITEM 2. CODE OF ETHICS.

Not applicable at this time.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable at this time.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable at this time.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

ITEM 6. INVESTMENTS

Included in the Semi-Annual report to Shareholders filed under item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant, the Fund is an open-end management investment company.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant, the Fund is an open-end management investment company.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable to the registrant, the Fund is an open-end management investment company.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act), are effective, as of a date within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant, the Fund is an open-end management investment company.

ITEM 13. EXHIBITS.

(1) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith.

(2) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

360 Funds

/s/ Randy Linscott

By: Randy Linscott

Principal Executive Officer,  

Date:  November 9, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following person on behalf of the registrant and in the capacities and on the date indicated.

/s/ Randy Linscott

By: Randy Linscott

Principal Executive Officer

Date: November 9, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following person on behalf of the registrant and in the capacities and on the date indicated.

/s/ Larry E. Beaver, Jr.

By Larry E. Beaver, Jr.  

Treasurer and Principal Financial Officer

Date: November 9, 2022