Note - 9 Commitments/Contingencies | 9. Commitments/Contingencies As of October 31, 2021, the Company has 375,000,000 shares of $0.001 par value common stock authorized and there are 44,482,138 shares of common stock issued and outstanding. As of the period ended October 31, 2021, the Company issued the following shares: On September 2, 2020, the Company issued 500,000 common shares to SRAX, Inc. (“SRAX”), in exchange for the right to use the SRAX Sequire platform, pursuant to a Platform Account Contract dated August 4, 2020. The shares were valued at $355,550 based on OTC’s closing trade price on the date of the agreement. The term of the contract was for one year, and accordingly, the Company has included the $355,550 in stock-based compensation expense. On September 13, 2020, and concurrently with the execution of the Financing Agreement, the Company issued to GHS Investments, LLC, 150,857 restricted shares of its Common stock (the “Commitment Shares”) to offset transaction costs. The shares were valued at $155,383 based on OTC’s closing trade price on the date of the agreement and were initially recorded as a prepaid expense. As a result of the Company not selling any shares to GHS, and may not occur in the future, the Company recognized $155,383 as stock-based compensation expense. On September 21, 2020, the Company issued 250,000 shares of common stock to the CEO of the Company in exchange for consulting services, pursuant to his agreement dated August 1, 2019. The shares were valued at $370,000 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 100,000 shares of common stock to the Company’s CPM in exchange for consulting services, pursuant to his consulting agreement dated August 1, 2019 (see Note 9 (c)). The shares were valued at $148,000 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 100,000 shares of common stock to the Chief Science Officer of the Company pursuant to his employment agreement dated August 1, 2020. The shares were valued at $87,250 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 25,000 common shares to the Assistant Agricultural Operations Manager of the Company in exchange for consulting services, pursuant to her consulting agreement dated August 1, 2019. The shares were valued at $37,000 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 200,000 shares of common stock pursuant to a consulting agreement dated July 1, 2020. The value of the shares of $92,000 was recorded against stock payable. On September 21, 2020 and under the terms of the Placement Agreement dated September 18, 2020, with Boustead Securities LLC (“BSL”), the Company issued to BSL an advisory fee of two hundred fifty thousand (250,000) shares of common stock. The shares were valued at $187,500 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 50,000 shares to the Company’s CFO, pursuant to his consulting agreement dated February 13, 2020. The shares were valued at $60,750 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 50,000 shares of common stock to a consultant for advice on real estate acquisitions, pursuant to his consulting agreement. The shares were valued at $58,500 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 125,000 shares of common stock to a consultant for advisory services to the Board of Directors of the Company, pursuant to his consulting agreement. The shares were valued at $113,750 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 125,000 shares of common stock to a consultant for advisory services to the Board of Directors of the Company, pursuant to his consulting agreement. The shares were valued at $113,750 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 100,000 shares of common stock to a consultant for services, pursuant to his agreement dated February 1, 2020. The shares were valued at $187,000 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 125,000 shares of common stock to a shareholder for advisory services to the Company, pursuant to his consulting agreement August 1, 2019. The shares were valued at $185,000 based on OTC’s closing trade price on the date of the agreement. On September 21, 2020, the Company issued 50,000 shares of common stock in the aggregate to two relatives of our CPM in exchange for production equipment, pursuant to a Stock Purchase Agreement dated September 3, 2020, with an effective date of January 31, 2020. The shares were valued at $51,500 based on OTC’s closing trade price on the date of the agreement. On September 29, 2020, the Company issued 140,000 shares of common stock to a non-related third party for the purchase of farm vehicles, pursuant to a Stock Purchase Agreement dated July 27, 2020, and effective June 1, 2020. The shares were valued at $137,200 based on OTC’s closing trade price on the effective date of the agreement. On November 15, 2020, the Company issued 100,000 shares of restricted common stock to a consultant, pursuant to a consulting agreement dated November 15, 2019, for services performed as COO of the Company. The shares were valued at $200,000 based on OTC’s closing trade price on the effective date of the agreement. On November 15,2020, the Company issued 125,000 shares of restricted common stock to a consultant, pursuant to a consulting agreement dated August 18, 2020. The shares were valued at $75,000 based on OTC’s closing trade price on the issuance date, pursuant to the agreement. On December 1, 2020, the Company issued 50,000 shares of restricted common stock to a consultant, pursuant to a consulting agreement dated December 1, 2020, for services performed as Corporate Communications Officer of the Company. The shares were valued at $34,000 based on OTC’s closing trade price on the effective date of the agreement. On January 15, 2021, the Company issued 100,000 shares of restricted common stock to a consultant, pursuant to a consulting agreement dated January 15, 2021, for services performed. The shares were valued at $75,000 based on OTC’s closing trade price on the effective date of the agreement. On February 17, 2021, the Company issued 125,000 shares of restricted common stock to a consultant, pursuant to a consultant agreement dated February 1, 2021, for services performed. The shares were valued at $113,750 based on OTC’s closing trade price on the effective date of the agreement. On February 17, 2021, the Company issued 200,000 shares of restricted common stock to a consultant, pursuant to a consultant agreement dated August 1, 2019, for services performed. The shares were valued at $296,000 based on OTC’s closing trade price on the effective date of the agreement. On March 10, 2021, the Company recorded the issuance in the aggregate of 200,000 shares of restricted common stock to two consultants, pursuant to a consultant agreement dated March 10, 2021, for services performed. The shares were valued at $206,000 based on OTC’s closing trade price on the effective date of the agreement. On March 11, 2021, the Company recorded the issuance in the aggregate of 60,000 shares of restricted common stock pursuant to an Asset Purchase Agreement between the Company and Castillo for the purchase of certain assets. The shares were valued at $69,600 based on OTC’s closing trade price on the effective date of the agreement and the Company recorded inventory of $69,400. On March 15, 2021, the Company recorded the issuance of 260,000 shares of restricted common stock pursuant to a consultant agreement dated March 15, 2021, for services performed. The shares were valued at $338,000 based on OTC’s closing trade price on the effective date of the agreement. On June 8, 2021, the Company issued 75,000 shares of restricted common stock pursuant to a consulting agreement dated May 1, 2021, for services. The shares were valued at $97,500 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 125,000 shares of common stock to the CEO of the Company in exchange for consulting services, pursuant to his agreement dated August 1, 2019. The shares were valued at $185,000 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 100,000 shares of restricted common stock to a consultant, pursuant to a consulting agreement dated November 15, 2019, for services performed as COO of the Company. The shares were valued at $200,000 based on OTC’s closing trade price on the effective date of the agreement. On June 8, 2021, the Company issued 100,000 shares of common stock to the Chief Science Officer of the Company pursuant to his employment agreement dated August 1, 2020. The shares were valued at $87,250 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 50,000 shares of common stock to a non-related party consultant in exchange for consulting services pursuant to a February 1, 2021 agreement. The shares were valued at $44,500 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 12,500 shares of common stock to a non-related party consultant in exchange for consulting services pursuant to a March 1, 2021 agreement. The shares were valued at $15,125 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 100,000 shares of common stock to a non-related party consultant in exchange for consulting services pursuant to a March 15, 2021 agreement. The shares were valued at $130,000 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 100,000 shares of common stock to a non-related party consultant in exchange for consulting services pursuant to a March 15, 2021 agreement. The shares were valued at $130,000 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 100,000 shares of common stock to a non-related party consultant in exchange for consulting services pursuant to a March 15, 2021 agreement. The shares were valued at $130,000 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 50,000 shares of common stock to a non-related party consultant in exchange for consulting services pursuant to a March 15, 2021 agreement. The shares were valued at $65,000 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 25,000 shares of common stock to a non-related party consultant in exchange for consulting services pursuant to a March 15, 2021 agreement. The shares were valued at $32,500 based on OTC’s closing trade price on the date of the agreement. On June 8, 2021, the Company issued 100,000 shares of restricted common stock to a consultant, pursuant to a consulting agreement dated November 15, 2019, for services performed as COO of the Company. The shares were valued at $200,000 based on OTC’s closing trade price on the effective date of the agreement. On June 8, 2021, the Company issued 50,000 shares of restricted common stock to a consultant, pursuant to a consulting agreement dated December 1, 2020, for services performed as Corporate Communications Officer of the Company. The shares were valued at $34,000 based on OTC’s closing trade price on the effective date of the agreement. Common Stock to be issued On November 15, 2019, the Company agreed to issue 100,000 common shares to a former Independent Director of the Company, William Creekmur, in exchange for consulting services. The shares were valued based on OTC’s closing trade price on the date of the agreement. The Company issued 50,000 of the shares on April 20, 2020. The remaining 50,000 shares valued at $100,000 have not been issued and are included in Stock payable as of October 31, 2021, and 2020. During the year ended July 31, 2021, the Company sold 356,000 shares of common stock at $2.00 per share for proceeds of $712,000. The shares were not issued as of July 31, 2021 and $712,000 is included in Stock payable as of July 31, 2021 and were issued by October 31, 2021. The Company also issued warrants to purchase 356,000 shares of common stock at an exercise price of $3.00 per share, with an expiration date on the second anniversary of the date of issuance. Warrants In July 2021, in conjunction with sale of common stock to be issued, the Company issued warrants (the “Warrants”) to purchase 356,000 shares of common stock. The Warrants have an exercise price of $3,00 per share and an expiration date on the second- year anniversary of their issuance. A summary of the Company’s warrant activity and related information for the eyer ended July 31, 2021 is as follows: Number of Warrants Weighted average exercise price Outstanding beginning of year - $ - Granted 356,000 $ 3.00 Outstanding and exercisable, end of year 356,000 $ 3.00 The Company is in negotiations with the IRS regarding its payroll taxes as of October 31, 2021. The amount that is reported in the financial statements is the outstanding amount owed to the IRS but the company feels that there is an error in the calculation and may be able to reduce that amount. There is currently no other pending or threatened litigation. |