Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Feb. 14, 2023 | Apr. 30, 2022 | |
Details | |||
Registrant CIK | 0001791325 | ||
Fiscal Year End | --10-31 | ||
Registrant Name | Freedom Internet Group Inc. | ||
SEC Form | 10-K | ||
Period End date | Oct. 31, 2022 | ||
Tax Identification Number (TIN) | 66-0910894 | ||
Number of common stock shares outstanding | 11,132,208 | ||
Public Float | $ 3,898,707 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
Interactive Data Current | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Shell Company | false | ||
Small Business | true | ||
Emerging Growth Company | true | ||
Ex Transition Period | false | ||
Document Annual 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 | FY | ||
Auditor Firm ID | 794 | ||
Auditor Name | Hancock Askew & Co., LLP | ||
Auditor Location | Savannah, Georgia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 312,636 | $ 628,513 |
Prepaid expenses | 14,500 | 11,500 |
Due from related party | 1,214 | 0 |
Cryptocurrencies | 0 | 150,014 |
Total current Assets | 328,350 | 790,027 |
Royalty interests, net of accumulated amortization of $124,855 and $79,855 respectively | 550,820 | 595,820 |
Investment | 123,445 | |
Notes receivable, net of discount of $28,455 and $0, respectively | 66,555 | 0 |
Total other assets | 740,820 | 595,820 |
Total assets | 1,069,170 | 1,385,847 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 14,277 | 16,794 |
Total current liabilities | 14,277 | 16,794 |
Non-current Liabilities | ||
Notes payable | 0 | 0 |
Total Liabilities | 14,277 | 16,794 |
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock | 111,321 | 111,321 |
Common stock payable | 95,000 | 0 |
Additional paid in capital | 2,240,447 | 2,240,447 |
Accumulated deficit | (1,391,875) | (982,715) |
Total Stockholders' Equity | 1,054,893 | 1,369,053 |
Total Liabilities and Stockholders' Equity | $ 1,069,170 | $ 1,385,847 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Details | ||
Royalty Interests, Accumulated Amortization | $ 124,855 | $ 79,855 |
Notes Receivable, Discount | $ 28,455 | $ 0 |
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 ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Revenues | ||
Royalties (net) | $ 51,331 | $ 66,226 |
Operating Expenses | ||
Advertising | 657 | 7,058 |
Legal and professional | 124,300 | 127,041 |
Consulting | 35,975 | 25,000 |
Salaries and payroll taxes | 120,653 | 120,678 |
Rent expense | 250 | 300 |
Amortization of royalty interests | 45,000 | 54,355 |
Other business expenses | 22,468 | 24,330 |
Total operating expenses | 349,303 | 358,762 |
Loss from operations | (297,972) | (292,536) |
Other Income (Expense) | ||
Loss on cryptocurrencies - Impairment expense | (120,399) | 0 |
Impairment of royalty interest | 0 | (161,000) |
Interest income | 8,521 | 5,731 |
Settlement income | 0 | 105,000 |
PPP loan forgiveness | 0 | 11,300 |
Other | 690 | 370 |
Total other income (expense) | (111,188) | 38,599 |
Net Loss | $ (409,160) | $ (331,135) |
Net loss per common share - basic and diluted | $ (0.04) | $ (0.03) |
Weighted average shares outstanding - basic | 11,132,208 | 11,132,208 |
Weighted average shares outstanding - diluted | 11,132,208 | 11,132,208 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) | Preferred Stock | Common Stock | Common Stock Payable | 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 | (331,135) | (331,135) |
Stockholders' Equity Attributable to Parent, Ending Balance at Oct. 31, 2021 | 0 | $ 111,321 | 0 | 2,240,447 | (982,715) | 1,369,053 |
Shares, Outstanding, Ending Balance at Oct. 31, 2021 | 11,132,208 | |||||
Common stock subscribed issuance | $ 19,017 | (19,017) | 0 | 0 | 0 | |
Common stock subscribed issuance, shares | 1,901,808 | |||||
Net Loss | 0 | $ 0 | 0 | 0 | (409,160) | (409,160) |
Stockholders' Equity Attributable to Parent, Ending Balance at Oct. 31, 2022 | 0 | $ 111,321 | 95,000 | 2,240,447 | (1,391,875) | 1,054,893 |
Shares, Outstanding, Ending Balance at Oct. 31, 2022 | 11,132,208 | |||||
Common Stock Payable | $ 0 | $ 0 | $ 95,000 | $ 0 | $ 0 | $ 95,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Cash flows from operating activities | ||
Net Loss | $ (409,160) | $ (331,135) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Amortization of royalty interests | 45,000 | 54,355 |
Forgiveness of PPP funding | 0 | (11,300) |
Impairment of cryptocurrencies | 120,399 | 0 |
Impairment of royalty interest | 0 | 161,000 |
Increase (Decrease) in Due from Related Parties | (1,214) | 0 |
Increase (Decrease) in Prepaid Expense | (3,000) | 5,167 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | (2,517) | (9,860) |
Net cash used in operating activities | (250,492) | (131,593) |
Cash flows from investing activities | ||
Issuance of notes receivable | (95,000) | 0 |
Purchase of cryptocurrencies | (135,528) | (150,014) |
Sale of cryptocurrencies | 165,143 | |
Purchase of royalty interest | 0 | (125,000) |
Net cash used in investing activities | (65,385) | (275,014) |
Cash flows from financing activities | ||
Net cash provided from financing activities | 0 | 0 |
Net change in cash and cash equivalents | (315,877) | (406,607) |
Cash and cash equivalents, at beginning of period | 628,513 | 1,035,120 |
Cash and cash equivalents, at end of period | 312,636 | 628,513 |
Schedule of non-cash financing activities | ||
Common stock payable for investment | 95,000 | 0 |
Discount on notes receivable in exchange for investment | 28,445 | 0 |
Supplemental cash flow information | ||
Income taxes paid | $ 0 | $ 10,500 |
NOTE 1. ORGANIZATION AND DESCRI
NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1. NATURE OF BUSINESS On November 15, 2018, (commencement of operations) Freedom Internet Group Inc. (the “Company”) was organized in Puerto Rico to provide Internet-focused entrepreneurs with business consulting services and centralized management services. The Company is engaged in the business of acquiring, holding and managing royalty interests derived from Internet based businesses. Royalty interests are non-operating agreements that provide the Company with contractual rights to revenue produced from operators. |
NOTE 2. SUMMARY OF SIGNIFICANT
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Assets that are particularly susceptible to fluctuations in fair value estimates include our cryptocurrency investments and royalty agreements. Following is a description of the more significant accounting policies followed by the Company: Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. There were no cash equivalents as of October 31, 2022 and 2021. Investments From time to time, the Company may invest in other Companies and acquire a minority interest. The Company evaluates each investment in accordance with ASC 321 or ASC 323, which provides guidance on the classification and measurement of investments in equity securities or equity method investments. The Company evaluates accounting for each investment depending on whether or not the Company has significant influence or control over the investee. If an investment is considered an equity method investment (i.e., when the Company has significant influence over the entity’s decision making) the Company will record its share of earnings in the income statement. When the Company has no control or significant influence in decisions, the Company will record its investment at the transaction price and evaluate it for impairment at each period reported when the investment does not have a readily determinable fair value. If an observable price change occurs in an orderly transaction of the equity investment, the equity investment is measured at its fair value as of the date that the observable transaction occurred. Royalty Interests Royalty interests are non-operating agreements that provide us with contractual rights to a percentage of revenue produced from companies that we have executed a royalty interest agreement with. We provide management consulting services to the operators over the life of the agreement. Although most of our royalty interest agreements have a perpetual term, management does not expect these royalty interests to last longer than 15 years due to the rapidly changing environment of a typical operator. Therefore, we have adopted the policy of amortizing the cost of royalty interests using the straight-line method over a period of 15 years, unless the agreement has a specific life provided. 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. In accordance with ASC 360-10, impairment exists for the royalty interests if the carrying amount exceeds the estimates 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 over time when it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the services that are transferred to the customer. Because of the uncertainty of collections at the inception of a royalty interest agreement and our lack of historical collection statistics, the Company 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 a quarterly period, 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 October 31, 2022 and 2021. Cryptocurrencies The Company made investments in cryptocurrencies, including bitcoin, during the years ended October 31, 2022 and 2021 of $135,528 and $150,014, respectively. Such amounts are included in current assets at original cost, net of impairments 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 year ended October 31, 2022, the cryptocurrency market became more volatile and the broker that held the Company’s cryptocurrency froze the account. Recovery of the cryptocurrency is uncertain as of the date of this report. As such, management of the Company impaired the entire remaining balance of $120,399. Per Share Data Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to warrants. The Company has excluded all common equivalent shares outstanding for warrants from the calculation of diluted net loss per share because all such securities are anti-dilutive for the periods presented. |
NOTE 3. ROYALTY INTERESTS
NOTE 3. ROYALTY INTERESTS | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 3. ROYALTY INTERESTS | NOTE 3. ROYALTY INTERESTS Wiz Motions, LLC On October 10, 2019, we acquired a royalty interest from Wiz Motions, LLC (“ Wiz Growth Stack, Inc. On November 22, 2019, we acquired a royalty interest from Growth Stack, Inc., (“ Growth Stack Pick A Toilet LLC On April 1, 2020, we acquired a royalty interest from Pick A Toilet, LLC, (“ Pick A Toilet Artist Holdings, LLC On February 24, 2021, the Company acquired a royalty interest from Artist Holdings, LLC, (" Artist Holdings RhymeMakers, LLC On February 24, 2021, the Company acquired a royalty interest from RhymeMakers, LLC, (“ RhymeMakers The Company recorded total amortization expense related to the original royalty agreement purchases of $45,000 and $54,355 for the years ended October 31, 2022 and 2021, respectively. The following table summarizes the future amortization of royalty interests as of October 31, 2022: 2023 45,000 2024 45,000 2025 45,000 2026 45,000 2027 45,000 Thereafter 325,820 Total $550,820 |
NOTE 4. INCOME TAXES
NOTE 4. INCOME TAXES | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 4. INCOME TAXES | NOTE 4. INCOME TAXES The Company has a tax grant (Case No. 2019-Act20-000614) pursuant to Act No. 20 of January 17, 2012, as amended. The tax exemption grant is in accordance with the applicable terms of the Act covering the performance of the eligible service activities for markets outside of Puerto Rico. The Company specializes in Consulting Services, Centralized Management Services and Trading Companies. The Company is entitled to an exemption period of twenty (20) years. During the term of the tax grant, the Company will participate in: o o o o As of October 31, 2022 and 2021, Management is evaluating the Act’s impact in the Company’s financial statements. However, there are uncertainties as to how certain Act provisions will be interpreted and implemented, which could impact Management’s overall assessment and the Company’s tax provision and analysis for future years. The components of deferred tax asset at October 31, 2022 and 2021, are as follows: 2022 2021 Tax loss carryforward related to operations not covered by tax grant $55,667 $39,300 Less: Valuation Allowance $(55,667) $(39,300) Net Deferred tax asset $- $- A valuation allowance is recorded if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets may not be realized. At October 31, 2022 and 2021 the Company recorded a valuation allowance for the entire deferred tax asset due to the uncertainty surrounding the timing of realizing certain tax benefits in future income tax returns. The Company has carryforward losses available to offset future taxable income not covered by the tax grants amounting to $1,188,000 which expires following the Company’s 20-year exemption period. |
NOTE 5. INVESTMENT IN FINANCIER
NOTE 5. INVESTMENT IN FINANCIER | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 5. INVESTMENT IN FINANCIER | NOTE 5 INVESTMENT IN FINANCIER Equity Investment On July 15, 2022, the Company entered into a purchase and sale agreement with Financier LB Group, (“ Financier As of July 31, 2022, the Company has accounted for its investment in Financier as an equity security in accordance with ASC 321 as the Company does not have the ability to exert significant influence over Financier . Loan Receivable As part of the Financier transaction, the Company issued an interest free loan to Financier in the amount of $95,000. The Company imputed interest at 15% and as such created a discount to the Notes Receivable in the amount of $28,445, which increased the total investment to $123,445 at July 31, 2022. The Company issued a zero interest rate note in the amount of $95,000, payable in equal installments of $1,583 for a period of sixty months. As of October 31, 2022, the common stock that is payable to Financier has not been issued by management. According to the payment terms of the loan receivable, payment is not to begin until after Financier receives the stock from the Company. |
NOTE 6. NOTE PAYABLE
NOTE 6. NOTE PAYABLE | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 6. NOTE PAYABLE | NOTE 6. NOTE PAYABLE On July 1 and September 21, 2020, the Company closed two loans of $7,400 and $3,900 (the “PPP loans”) from a commercial bank, pursuant to the Paycheck Protection Program (“ PPP All or a portion of the PPP loan may be forgiven by the lender upon application by the Company beginning 60 days after the loan approval and upon documentation of expenditures in accordance with the requirements set forth by the SBA pursuant to the CARES Act. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, covered mortgage interest and covered utilities during either, at the Company’s election, the eight-week period or twenty-four-week period beginning on the date of disbursement of proceeds from the PPP loan. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000 prorated annually. Not more than 40% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced, under certain circumstances, if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced. In the event the PPP loan, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal. During the year ended October 31, 2021, the full amount of $11,300 was forgiven and is included in other income. |
NOTE 7. RELATED PARTY TRANSACTI
NOTE 7. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 7. RELATED PARTY TRANSACTIONS | NOTE 7. RELATED PARTY TRANSACTIONS The Company is a member of a group of entities affiliated through common management. The Company regularly enters into transactions with related parties, at terms and conditions agreed upon by management of the Company and related parties. Amounts due from/to related parties are non-interest bearing and do not have fixed repayment terms. These amounts are payable and received in the normal course of business and related to operating transactions and cash flows needs. As of October 31, 2022, a related party entity of management owed the Company $1,214. |
NOTE 8. COMMON STOCK
NOTE 8. COMMON STOCK | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 8. COMMON STOCK | NOTE 8. COMMON STOCK Common Stock – Private Placement In June 2020, the Company, through a private offering, offered an aggregate of $1,800,000 of units, each unit consists of a subscription for 300 shares of Company $0.01 par value common stock and a warrant to purchase an additional 300 shares of Company common stock at an exercise price of $2.67 per share. Units were offered, at a purchase price of $600 per unit. Through October 31, 2021, the Company sold 848.4 units, or a subscription for 254,511 shares of common stock for an aggregate purchase price of $509,000. The subscription included detachable warrants to purchase an additional 254,500 shares at $2.67 per share with a term ending on December 31, 2021. |
NOTE 9. STOCK PURCHASE WARRANTS
NOTE 9. STOCK PURCHASE WARRANTS | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 9. STOCK PURCHASE WARRANTS | NOTE 9. STOCK PURCHASE WARRANTS 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 October 31, 2022 - - On December 31, 2021, warrants to purchase 254,511 shares of common stock expired unexercised. |
NOTE 10. RETIREMENT PLAN
NOTE 10. RETIREMENT PLAN | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 10. RETIREMENT PLAN | NOTE 10. RETIREMENT PLAN The Company established the Freedom Internet Group Inc. 401K Plan (i.e., the “Plan”) effective January 1, 2019. The Plan covers all eligible employees that complete at least 1,000 hours of service in a 12-consecutive months period beginning with the first day of employment. Eligible employees can make Employee Deferral Contributions and Voluntary Contributions and received Matching Contributions and Profit-Sharing Contributions on the: a) first day of the first month of the Plan year or b) first day of the seventh month of the Plan year coincident with or next following the date where the employee attains an age of 21 years old and one year of Eligible Service have been completed. The employees may elect to make contributions to the Plan on a pre-tax basis (i.e., Employee Deferral Contributions) up to 100% of the employee’s compensation on a pretax basis or after-tax basis (i.e. Voluntary Contributions) up to 100% of employee’s compensation. However, the combination of the two contributions may not exceed 100% of the employee compensation. The Company is not obligated to perform matching contributions to the plan and could perform discretionary contributions as decided by management. As of October 31, 2022 and 2021, no contributions to the Plan were made by the Company. |
NOTE 11. SETTLEMENT
NOTE 11. SETTLEMENT | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 11. SETTLEMENT | NOTE 11. SETTLEMENT On August 24, 2021, the Company entered into a settlement agreement with a prior service provider that resolved all outstanding disputes in exchange for a $105,000 payment from the service provider. On September 7, 2021 the Company received $94,500 directly and $10,500 was withheld for tax purposes and was recognized as other income. |
NOTE 12. COMMITMENTS AND CONTIN
NOTE 12. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 12. COMMITMENTS AND CONTINGENCIES | NOTE 12. COMMITMENTS AND CONTINGENCIES COVID – 19 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 have impacted the Company’s licensing royalty interests. 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 13. SUBSEQUENT EVENTS
NOTE 13. SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 13. SUBSEQUENT EVENTS | NOTE 13. SUBSEQUENT EVENTS Management has determined there were no subsequent events to disclose as of February 14, 2023 the date of this report. |
NOTE 2. SUMMARY OF SIGNIFICAN_2
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Oct. 31, 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. There were no cash equivalents as of October 31, 2022 and 2021. |
NOTE 2. SUMMARY OF SIGNIFICAN_3
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Investments (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Policies | |
Investments | Investments From time to time, the Company may invest in other Companies and acquire a minority interest. The Company evaluates each investment in accordance with ASC 321 or ASC 323, which provides guidance on the classification and measurement of investments in equity securities or equity method investments. The Company evaluates accounting for each investment depending on whether or not the Company has significant influence or control over the investee. If an investment is considered an equity method investment (i.e., when the Company has significant influence over the entity’s decision making) the Company will record its share of earnings in the income statement. When the Company has no control or significant influence in decisions, the Company will record its investment at the transaction price and evaluate it for impairment at each period reported when the investment does not have a readily determinable fair value. If an observable price change occurs in an orderly transaction of the equity investment, the equity investment is measured at its fair value as of the date that the observable transaction occurred. |
NOTE 2. SUMMARY OF SIGNIFICAN_4
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Royalty Interests (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Policies | |
Royalty Interests | Royalty Interests Royalty interests are non-operating agreements that provide us with contractual rights to a percentage of revenue produced from companies that we have executed a royalty interest agreement with. We provide management consulting services to the operators over the life of the agreement. Although most of our royalty interest agreements have a perpetual term, management does not expect these royalty interests to last longer than 15 years due to the rapidly changing environment of a typical operator. Therefore, we have adopted the policy of amortizing the cost of royalty interests using the straight-line method over a period of 15 years, unless the agreement has a specific life provided. 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. In accordance with ASC 360-10, impairment exists for the royalty interests if the carrying amount exceeds the estimates 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. |
NOTE 2. SUMMARY OF SIGNIFICAN_5
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Policies | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue under royalty interest agreements when earned over time when it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the services that are transferred to the customer. Because of the uncertainty of collections at the inception of a royalty interest agreement and our lack of historical collection statistics, the Company 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 a quarterly period, some of which do not line up with the quarterly reporting period of the Company. |
NOTE 2. SUMMARY OF SIGNIFICAN_6
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies) | 12 Months Ended |
Oct. 31, 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 October 31, 2022 and 2021. |
NOTE 2. SUMMARY OF SIGNIFICAN_7
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cryptocurrencies (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Policies | |
Cryptocurrencies | Cryptocurrencies The Company made investments in cryptocurrencies, including bitcoin, during the years ended October 31, 2022 and 2021 of $135,528 and $150,014, respectively. Such amounts are included in current assets at original cost, net of impairments 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 year ended October 31, 2022, the cryptocurrency market became more volatile and the broker that held the Company’s cryptocurrency froze the account. Recovery of the cryptocurrency is uncertain as of the date of this report. As such, management of the Company impaired the entire remaining balance of $120,399. |
NOTE 2. SUMMARY OF SIGNIFICAN_8
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Per Share Data (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Policies | |
Per Share Data | Per Share Data Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to warrants. The Company has excluded all common equivalent shares outstanding for warrants from the calculation of diluted net loss per share because all such securities are anti-dilutive for the periods presented. |
NOTE 3. ROYALTY INTERESTS_ Sche
NOTE 3. ROYALTY INTERESTS: Schedule of future amortization of royalty interests (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of future amortization of royalty interests | 2023 45,000 2024 45,000 2025 45,000 2026 45,000 2027 45,000 Thereafter 325,820 Total $550,820 |
NOTE 4. INCOME TAXES_ Schedule
NOTE 4. INCOME TAXES: Schedule of deferred tax asset (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of deferred tax asset | 2022 2021 Tax loss carryforward related to operations not covered by tax grant $55,667 $39,300 Less: Valuation Allowance $(55,667) $(39,300) Net Deferred tax asset $- $- |
NOTE 9. STOCK PURCHASE WARRAN_2
NOTE 9. STOCK PURCHASE WARRANTS: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Warrant | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Warrant Shares Weighted Average Exercise Price Balance at October 31, 2021 254,511 $2.67 Granted - - Forfeit or cancelled (254,511) (2.67) Exercised - - Balance at October 31, 2022 - - |
NOTE 2. SUMMARY OF SIGNIFICAN_9
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cryptocurrencies (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||
Purchase of cryptocurrencies | $ 135,528 | $ 150,014 |
Loss on crypto currency impairment | $ 120,399 | $ 0 |
NOTE 3. ROYALTY INTERESTS (Deta
NOTE 3. ROYALTY INTERESTS (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Royalties (net) | $ 51,331 | $ 66,226 |
Impairment of royalty interest | 0 | 161,000 |
Amortization of royalty interests | 45,000 | 54,355 |
Wiz Motions, LLC | ||
Payments for Royalties | 300,000 | |
Royalties (net) | 36,182 | 30,033 |
Growth Stack, Inc. | ||
Payments for Royalties | 250,000 | |
Royalties (net) | 11,000 | 38,690 |
Pick A Toilet LLC | ||
Payments for Royalties | 180,000 | |
Impairment of royalty interest | 161,000 | |
Artist Holdings, LLC | ||
Payments for Royalties | 50,000 | |
Royalties (net) | 2,888 | 2,500 |
RhymeMakers, LLC | ||
Payments for Royalties | 75,000 | |
Royalties (net) | $ 1,261 | $ 4,003 |
NOTE 3. ROYALTY INTERESTS_ Sc_2
NOTE 3. ROYALTY INTERESTS: Schedule of future amortization of royalty interests (Details) | 12 Months Ended |
Oct. 31, 2022 USD ($) | |
Details | |
Royalty Interests Future Amortization Due Current | $ 45,000 |
Royalty Interests Future Amortization Year One | 45,000 |
Royalty Interests Future Amortization Year Two | 45,000 |
Royalty Interests Future Amortization Year Three | 45,000 |
Royalty Interests Future Amortization Year Four | 45,000 |
Royalty Interests Future Amortization Year Five | 325,820 |
Royalty Interests Future Amortization Due | $ 550,820 |
NOTE 4. INCOME TAXES_ Schedul_2
NOTE 4. INCOME TAXES: Schedule of deferred tax asset (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Details | ||
Tax loss carryforward related to operations not covered by tax grant | $ 55,667 | $ 39,300 |
Less: Valuation Allowance | (55,667) | (39,300) |
Net Deferred tax asset | $ 0 | $ 0 |
NOTE 4. INCOME TAXES (Details)
NOTE 4. INCOME TAXES (Details) | Oct. 31, 2022 USD ($) |
Details | |
Operating Loss Carryforwards | $ 1,188,000 |
NOTE 5. INVESTMENT IN FINANCI_2
NOTE 5. INVESTMENT IN FINANCIER (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Details | ||
Common stock payable | $ 95,000 | $ 0 |
Notes Receivable, Discount, Net | 28,445 | |
Investment | $ 123,445 |
NOTE 6. NOTE PAYABLE (Details)
NOTE 6. NOTE PAYABLE (Details) - USD ($) | Oct. 31, 2021 | Sep. 21, 2020 | Jul. 01, 2020 |
Details | |||
Proceeds from Loans | $ 11,300 | $ 3,900 | $ 7,400 |
NOTE 7. RELATED PARTY TRANSAC_2
NOTE 7. RELATED PARTY TRANSACTIONS (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Details | ||
Due from related party | $ 1,214 | $ 0 |
NOTE 8. COMMON STOCK (Details)
NOTE 8. COMMON STOCK (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2020 | Oct. 31, 2022 |
Details | |||
Sales of Common Stock and Warrants, Amount | $ 1,800,000 | ||
Sales of Common Stock and Warrants, Shares | 300 | ||
Warrants Issued | 254,500 | 300 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.67 | ||
Shares Issued, Price Per Share | $ 600 | ||
Common Stock Shares Sold | 254,511 |
NOTE 9. STOCK PURCHASE WARRAN_3
NOTE 9. STOCK PURCHASE WARRANTS: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - Warrant - $ / shares | 12 Months Ended | |
Oct. 31, 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 |
NOTE 11. SETTLEMENT (Details)
NOTE 11. SETTLEMENT (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||
Proceeds from Legal Settlements | $ 105,000 | |
Legal Settlements - Cash Received | 94,500 | |
Income taxes paid | $ 0 | $ 10,500 |