Freedom Internet (FIGI) 10-Q 14 Jun 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Apr. 30, 2022	Jun. 14, 2022
Details
Registrant CIK	0001791325
Fiscal Year End	--10-31
Registrant Name	Freedom Internet Group Inc.
SEC Form	10-Q
Period End date	Apr. 30, 2022
Tax Identification Number (TIN)	66-0910894
Number of common stock shares outstanding		11,132,208
Filer Category	Non-accelerated Filer
Current with reporting	No
Interactive Data Current	Yes
Shell Company	false
Small Business	true
Emerging Growth Company	true
Ex Transition Period	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-56149
Entity Incorporation, State or Country Code	PR
Entity Address, Address Line One	151 Calle San Francisco
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	San Juan
Entity Address, Country	PR
Entity Address, Postal Zip Code	00901
City Area Code	855
Local Phone Number	422-4200
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Apr. 30, 2022	Oct. 31, 2021
ASSETS
Cash and cash equivalents	$ 335,250	$ 628,513
Prepaid expenses	11,500	11,500
Due from related party	1,215	0
Crypto currencies	270,163	150,014
Total Current Assets	618,128	790,027
Royalty interests, net of accumulated amortization of $102,355 and $79,855, respectively	573,320	595,820
Total assets	1,191,448	1,385,847
Current Liabilities
Accounts payable and accrued liabilities	12,855	16,794
Total Current Liabilities	12,855	16,794
Total Liabilities	12,855	16,794
Stockholders' Equity
Preferred stock	0	0
Common stock	111,321	111,321
Additional paid in capital	2,240,447	2,240,447
Accumulated deficit	(1,173,175)	(982,715)
Total Stockholders' Equity	1,178,593	1,369,053
Total Liabilities and Stockholders' Equity	$ 1,191,448	$ 1,385,847

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical - USD ($)	Apr. 30, 2022	Oct. 31, 2021
Details
Royalty Interests, Accumulated Amortization	$ 102,355	$ 79,855
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	11,132,208	11,132,208
Common Stock, Shares, Outstanding	11,132,208	11,132,208

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Apr. 30, 2022	Apr. 30, 2021
Revenues
Royalties (net)	$ 12,685	$ 17,885	$ 25,640	$ 42,369
Operating Expenses
Advertising	500	882	570	6,968
Professional and consulting	41,833	62,626	104,940	91,254
Salaries and payroll taxes	30,481	40,904	60,840	60,841
Rent expense	50	75	100	150
Amortization of royalty interests	11,250	13,689	22,500	25,855
Other expenses	7,079	7,942	18,098	14,221
Total Operating Expenses	91,193	126,118	207,048	199,289
Loss from operations	(78,508)	(108,233)	(181,408)	(156,920)
Other Income/(Expense)
Interest income	3,031	180	5,793	358
Loss on crypto currency impairment	0	0	(15,378)	0
Other	474	46	533	258
Total other income/(expense)	3,505	226	(9,052)	616
Net Loss	$ (75,003)	$ (108,007)	$ (190,460)	$ (156,304)
Net loss per common share - basic and diluted	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)
Weighted average shares outstanding - basic	11,132,208	9,230,400	11,132,208	9,230,400
Weighted average shares outstanding - diluted	11,132,208	9,230,400	11,132,208	9,230,400

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Deficit - USD ($)	Preferred Stock	Common Stock	Common Stock Subscribed	Additional Paid-in Capital	Retained Earnings	Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Oct. 31, 2020	$ 0	$ 92,304	$ 19,017	$ 2,240,447	$ (651,580)	$ 1,700,188
Shares, Outstanding, Beginning Balance at Oct. 31, 2020		9,230,400
Net Loss	0	$ 0	0	0	(48,297)	(48,297)
Stockholders' Equity Attributable to Parent, Ending Balance at Jan. 31, 2021	0	$ 92,304	19,017	2,240,447	(699,877)	1,651,891
Shares, Outstanding, Ending Balance at Jan. 31, 2021		9,230,400
Stockholders' Equity Attributable to Parent, Beginning Balance at Oct. 31, 2020	0	$ 92,304	19,017	2,240,447	(651,580)	1,700,188
Shares, Outstanding, Beginning Balance at Oct. 31, 2020		9,230,400
Net Loss						(156,304)
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 30, 2021	0	$ 92,304	19,017	2,240,447	(807,884)	1,543,884
Shares, Outstanding, Ending Balance at Apr. 30, 2021		9,230,400
Stockholders' Equity Attributable to Parent, Beginning Balance at Jan. 31, 2021	0	$ 92,304	19,017	2,240,447	(699,877)	1,651,891
Shares, Outstanding, Beginning Balance at Jan. 31, 2021		9,230,400
Net Loss					(108,007)	(108,007)
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 30, 2021	0	$ 92,304	19,017	2,240,447	(807,884)	1,543,884
Shares, Outstanding, Ending Balance at Apr. 30, 2021		9,230,400
Stockholders' Equity Attributable to Parent, Beginning Balance at Oct. 31, 2021	0	$ 111,321	0	2,240,447	(982,715)	1,369,053
Shares, Outstanding, Beginning Balance at Oct. 31, 2021		11,132,208
Net Loss	0	$ 0	0	0	(115,457)	(115,457)
Stockholders' Equity Attributable to Parent, Ending Balance at Jan. 31, 2022	0	$ 111,321	0	2,240,447	(1,098,172)	1,253,596
Shares, Outstanding, Ending Balance at Jan. 31, 2022		11,132,208
Stockholders' Equity Attributable to Parent, Beginning Balance at Oct. 31, 2021	0	$ 111,321	0	2,240,447	(982,715)	1,369,053
Shares, Outstanding, Beginning Balance at Oct. 31, 2021		11,132,208
Net Loss						(190,460)
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 30, 2022	0	$ 111,321	0	2,240,447	(1,173,175)	1,178,593
Shares, Outstanding, Ending Balance at Apr. 30, 2022		11,132,208
Stockholders' Equity Attributable to Parent, Beginning Balance at Jan. 31, 2022	0	$ 111,321	0	2,240,447	(1,098,172)	1,253,596
Shares, Outstanding, Beginning Balance at Jan. 31, 2022		11,132,208
Net Loss					(75,003)	(75,003)
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 30, 2022	$ 0	$ 111,321	$ 0	$ 2,240,447	$ (1,173,175)	$ 1,178,593
Shares, Outstanding, Ending Balance at Apr. 30, 2022		11,132,208

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Cash flows from operating activities
Net Loss	$ (190,460)	$ (156,304)
Adjustments to reconcile net loss to net cash used in operating activities
Loss on crypto currency impairment	15,378	0
Amortization of royalty interests	22,500	25,855
Increase (Decrease) in Due from Related Parties	(1,215)
Increase (Decrease) in Prepaid Expense	0	9,000
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(3,938)	17,942
Net cash used in operating activities	(157,735)	(103,507)
Cash flows from investing activities
Purchase of royalty interest		(125,000)
Purchase of crypto currencies	(135,528)	(45,000)
Net cash used in investing activities	(135,528)	(170,000)
Net change in cash and cash equivalents	(293,263)	(273,507)
Cash and cash equivalents, at beginning of period	628,513	1,035,120
Cash and cash equivalents, at end of period	335,250	761,613
Supplemental cash flow information
Interest paid	0	0
Income taxes paid	$ 0	$ 0

1 - ORGANIZATION AND DESCRIPTIO

1 - ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Apr. 30, 2022
Notes
1 - ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS On November 15, 2018, (commencement of operations) Freedom Internet Group Inc. (the “Company” or “we”) was organized in Puerto Rico to provide Internet-focused entrepreneurs with business consulting services, centralized management services and revenue-based financing. The Company is engaged in the business of acquiring, holding and managing royalty interests derived from Internet based businesses, referred to as operators. Royalty interests are passive (non-operating) agreements that provide the Company with contractual rights to revenue produced from operators.

2 - SUMMARY OF SIGNIFICANT ACCO

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Apr. 30, 2022
Notes
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. The accompanying interim unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information under Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended April 30, 2022, are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the period ended October 31, 2021. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America, and, as such, include amounts based on judgments, estimates, and assumptions made by management that affect the reported amounts of assets and liabilities and 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. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Royalty Interests Royalty interests are passive (non-operating) agreements that provide us with contractual rights to a percentage of revenue produced from companies we provide funds to. The Company amortizes the cost of royalty interests over the estimated life of the cash flows produced by the agreement, which is initially estimated at 15 years. Royalty interests are considered a long-lived asset that is required to be reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company evaluates its royalty agreements at subsequent reporting periods to determine if a change in the underlying agreement or cash flows warrants a change in the estimate. Impairment exists for the royalty interests if the carrying amount exceeds the estimate of future net undiscounted cash flows expected to be generated by such assets. An impairment charge is required to be recognized if the carrying amount of the asset, or asset group, exceeds its fair value. Revenue Recognition The Company recognizes revenue under royalty interest agreements when earned and collection is reasonably assured. The Company recognizes revenue from royalty interest agreements under ASC 606-10-55-65 which apply to sales-based or usage-based royalties. Guidance under this section stipulates that revenue recognition should be based when the later of the following events occur: (1) the subsequent sales occur or (2) the performance obligation to which some or all for the sales-based royalty has been allocated has been satisfied or partially satisfied. The Company deems collection efforts to be the key performance obligation being satisfied, and therefore has adopted the approach of recognizing revenue based on customer collections. The operators that are parties to the royalty agreements, are typically structured to report and pay percentages of revenue earned over quarterly or monthly periods, some of which do not line up with the quarterly reporting period of the Company. Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established for deferred tax assets that, based on management ’ Tax benefits of uncertain tax positions are recorded only where the position is “more likely than not” to be sustained based on their technical merits. The amount recognized is the amount that represents the largest amount of tax benefit that is greater than 50% likely of being ultimately realized. A liability is recognized for any benefit claimed or expected to be claimed, in a tax return in excess of the benefit recorded in the financial statements, along with any interest and penalty (if applicable) in such excess. The Company has no uncertain tax positions as of April 30, 2022. Cryptocurrencies The Company made investments in crypto currencies, including bitcoin, during the six months ended April 30, 2022 and 2021 of $135,528 and $45,000, respectively. Such amounts are included in current assets at original cost in the accompanying balance sheets. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. During the six months ended April 30, 2022, the Company recognized an impairment loss of $15,378 on its investment in cryptocurrencies.

3. ROYALTY INTERESTS

3. ROYALTY INTERESTS	6 Months Ended
	Apr. 30, 2022
Notes
3. ROYALTY INTERESTS	NOTE 3 - ROYALTY INTERESTS The Company recorded total amortization expense related to royalty agreements of $22,500 and $25,855, for the six month periods ended April 30, 2022 and 2021, respectively.

NOTE 4. COMMITMENTS AND CONTING

NOTE 4. COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Apr. 30, 2022
Notes
NOTE 4. COMMITMENTS AND CONTINGENCIES	NOTE 4 - COMMITMENTS AND CONTINGENCIES In March 2020, the World Health Organization declared the outbreak of a novel coronavirus disease (“COVID-19”) as a pandemic, which continues to spread throughout the U.S. COVID-19 is having an unprecedented impact on the U.S economy as federal, state, and local governments react to this public health crisis. The impacts of the current COVID-19 pandemic are broad reaching and the impacts on the Company’s licensing royalty interests is to date unknown. Due to the COVID-19 outbreak, there is significant uncertainty surrounding the potential impact on the Company’s future results of operations and cash flows and its ability to raise capital. Continued impacts of the pandemic could materially adversely affect the Company’s near-term and long-term revenues, earnings, liquidity, and cash flows as the Company’s customers and/or licensees may request temporary relief, delay or not make scheduled payments on their royalty commitments.

NOTE 5 - COMMON STOCK

NOTE 5 - COMMON STOCK	6 Months Ended
	Apr. 30, 2022
Notes
NOTE 5 - COMMON STOCK	NOTE 5 - COMMON STOCK Stock Dividend On November 2, 2020, our Board of Directors effectuated a three-for-one stock split of our common stock in the form of a stock dividend (the “ Stock Split Warrants At April 30, 2022, warrants outstanding are as follows: Warrant Shares Weighted Average Exercise Price Balance at October 31, 2021 254,511 $ 2.67 Granted - - Forfeit or cancelled (254,511) (2.67) Exercised - - Balance at April 30, 2022 - $- On December 31, 2021, warrants to purchase 254,511 shares of common stock expired unexercised.

2 - SUMMARY OF SIGNIFICANT AC_2

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies)	6 Months Ended
	Apr. 30, 2022
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

2 - SUMMARY OF SIGNIFICANT AC_3

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Royalty Interests (Policies)	6 Months Ended
	Apr. 30, 2022
Policies
Royalty Interests	Royalty Interests Royalty interests are passive (non-operating) agreements that provide us with contractual rights to a percentage of revenue produced from companies we provide funds to. The Company amortizes the cost of royalty interests over the estimated life of the cash flows produced by the agreement, which is initially estimated at 15 years. Royalty interests are considered a long-lived asset that is required to be reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company evaluates its royalty agreements at subsequent reporting periods to determine if a change in the underlying agreement or cash flows warrants a change in the estimate. Impairment exists for the royalty interests if the carrying amount exceeds the estimate of future net undiscounted cash flows expected to be generated by such assets. An impairment charge is required to be recognized if the carrying amount of the asset, or asset group, exceeds its fair value.

2 - SUMMARY OF SIGNIFICANT AC_4

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)	6 Months Ended
	Apr. 30, 2022
Policies
Revenue Recognition	Revenue Recognition The Company recognizes revenue under royalty interest agreements when earned and collection is reasonably assured. The Company recognizes revenue from royalty interest agreements under ASC 606-10-55-65 which apply to sales-based or usage-based royalties. Guidance under this section stipulates that revenue recognition should be based when the later of the following events occur: (1) the subsequent sales occur or (2) the performance obligation to which some or all for the sales-based royalty has been allocated has been satisfied or partially satisfied. The Company deems collection efforts to be the key performance obligation being satisfied, and therefore has adopted the approach of recognizing revenue based on customer collections. The operators that are parties to the royalty agreements, are typically structured to report and pay percentages of revenue earned over quarterly or monthly periods, some of which do not line up with the quarterly reporting period of the Company.

2 - SUMMARY OF SIGNIFICANT AC_5

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)	6 Months Ended
	Apr. 30, 2022
Policies
Income Taxes	Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established for deferred tax assets that, based on management ’ Tax benefits of uncertain tax positions are recorded only where the position is “more likely than not” to be sustained based on their technical merits. The amount recognized is the amount that represents the largest amount of tax benefit that is greater than 50% likely of being ultimately realized. A liability is recognized for any benefit claimed or expected to be claimed, in a tax return in excess of the benefit recorded in the financial statements, along with any interest and penalty (if applicable) in such excess. The Company has no uncertain tax positions as of April 30, 2022.

2 - SUMMARY OF SIGNIFICANT AC_6

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cryptocurrencies (Policies)	6 Months Ended
	Apr. 30, 2022
Policies
Cryptocurrencies	Cryptocurrencies The Company made investments in crypto currencies, including bitcoin, during the six months ended April 30, 2022 and 2021 of $135,528 and $45,000, respectively. Such amounts are included in current assets at original cost in the accompanying balance sheets. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. During the six months ended April 30, 2022, the Company recognized an impairment loss of $15,378 on its investment in cryptocurrencies.

NOTE 5 - COMMON STOCK_ Schedule

NOTE 5 - COMMON STOCK: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)	6 Months Ended
	Apr. 30, 2022
Warrant
Schedule of Stockholders' Equity Note, Warrants or Rights	Warrant Shares Weighted Average Exercise Price Balance at October 31, 2021 254,511 $ 2.67 Granted - - Forfeit or cancelled (254,511) (2.67) Exercised - - Balance at April 30, 2022 - $-

2 - SUMMARY OF SIGNIFICANT AC_7

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cryptocurrencies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Apr. 30, 2022	Apr. 30, 2021
Details
Payments to Acquire Intangible Assets			$ 135,528	$ 45,000
Loss on crypto currency impairment	$ 0	$ 0	$ 15,378	$ 0

3. ROYALTY INTERESTS (Details)

3. ROYALTY INTERESTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Apr. 30, 2022	Apr. 30, 2021
Details
Amortization of royalty interests	$ 11,250	$ 13,689	$ 22,500	$ 25,855

NOTE 5 - COMMON STOCK (Details)

NOTE 5 - COMMON STOCK (Details) - $ / shares	Apr. 30, 2022	Oct. 31, 2021
Details
Common Stock, Shares, Outstanding	11,132,208	11,132,208
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01

NOTE 5 - COMMON STOCK_ Schedu_2

NOTE 5 - COMMON STOCK: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - Warrant - $ / shares	6 Months Ended
	Apr. 30, 2022	Oct. 31, 2021
Shares, Outstanding	0	254,511
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0	$ 2.67
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	(254,511)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	$ (2.67)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0