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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q/A

Amendment No. 1

 

(Mark One)

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: July 31, 2021

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from________ to__________

 

Commission File Number: 333-223568

 

FACT, INC.

(f/ka Tiburon International Trading, Corp.)

(Exact name of registrant as specified in its charter)

 

Nevada   98-1350973

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

2 Toronto Street, Suite 231 Toronto, Ontario M5C 2B5

(Address of principal executive offices) (Zip Code)

 

(437) 703-2482

(Registrant’s telephone number, including area code)

 

 

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Ticker symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☒

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐ Accelerated filer ☐
       
Non-accelerated filer ☒ Smaller reporting company ☒
       
Emerging growth company ☒    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 55,216,680 shares of common stock, $0.001 par value, as of October 21, 2021.

 

 

 

 
 

 

EXPLANATORY NOTES

 

This Amendment No. 1 to our Quarterly Report on Form 10-Q/A for the three months ended July 31, 2021, amends in its entirety the Quarterly Report on Form 10-Q that was originally filed on October 21, 2021 (the “Quarterly Report”), to:

 

  ● comply with Rule 10-01(d) Regulation S-X, which requires interim financial statements included in quarterly reports on Form 10-Q to be reviewed by an independent public accountant using professional standards and procedures for conducting such reviews, as established by PCAOB,
     
  ● to update financial statements and various other disclosures throughout this quarterly report,
     
  ● to include the required certifications of the Company’s Principal Executive Officer and Principal Financial and Accounting Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act, and,
     
  ● to include exhibit 101, for XBRL (eXtensible Business Reporting Language) files.

 

This Amendment No. 1 revises the original filing of the Original Report and does not otherwise reflect events that may have occurred subsequent to the original filing date.

 

 
 

 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains “forward-looking statements”, as defined under United States federal securities laws. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

 

● our ability to market, commercialize and achieve broader market acceptance for our products;
   
● our ability to successfully complete the development of and commercialization of our products; and
   
● the estimates regarding the sufficiency of our cash resources, our ability to obtain additional capital or our ability to maintain or grow sources of revenue.

 

In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these words. Although we believe that we have a reasonable basis for each forward-looking statement contained in this Quarterly Report, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. You should also refer to the section of our Annual report on Form 10-K entitled “Risk Factors” for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this Quarterly Report will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us, or any other person, that we will achieve our objectives and plans in any specified time frame, or at all. We do not undertake to update any of the forward-looking statements after the date of this Quarterly Report, except to the extent required by applicable securities laws.

 

We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

 

Unless expressly indicated or the context requires otherwise, the terms “FACT,” “Company,” “we,” “us,” and “our” in this document refer to Fact, Inc., a Nevada corporation, and, where appropriate, its subsidiaries.

 

 
 

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION F-1
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 3
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 8
ITEM 4. CONTROLS AND PROCEDURES 8
PART II - OTHER INFORMATION 9
ITEM 1. LEGAL PROCEEDINGS. 9
ITEM 1A. RISK FACTORS. 9
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. 9
ITEM 3. DEFAULTS UPON SENIOR SECURITIES. 9
ITEM 4. MINE SAFETY DISCLOSURES. 9
ITEM 5. OTHER INFORMATION. 9
ITEM 6. EXHIBITS. 10
SIGNATURES 11

 

2
 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

FACT, INC.

INTERIM FINANCIAL STATEMENTS

(UNAUDITED)

 

Table of Contents

 

    Page
Condensed balance sheets at July 31, 2021 and January 31, 2021   F-2
Condensed Statements of Operations for the three and six months ended July 31, 2021 and 2020   F-3
Condensed Statements of Changes in Stockholders’ Deficit for the three and six months ended July 31, 2021 and 2020   F-4
Condensed Statements of Cash Flows for the six months ended July 31, 2021 and 2020   F-5
Notes to Condensed Financial Statements   F-6

 

F-1

 

 

FACT, INC.

CONDENSED BALANCE SHEETS

(UNAUDITED)

 

    July 31,     January 31,  
    2021     2021  
ASSETS                
Current Assets:                
Cash   $ 279     $ 9,945  
Prepaid expenses     1,042       2,292  
Total Current Assets     1,321       12,237  
                 
Total Assets   $ 1,321     $ 12,237  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT                
Current Liabilities:                
Accounts payable and accrued liabilities   $ 87,959     $ 63,665  
Accrued interest     50,512       6,200  
Loan payable     21,000       -  
Convertible note payable, net of unamortized discount of $32,692 and $234,972, respectively     479,808       125,028  
Derivative liability     840,037       469,589  
Total Current Liabilities     1,479,316       664,482  
                 
Convertible note payable non current, net of unamortized discount of $741 and $0, respectively     112,259       -  
Total Liabilities     1,591,575       664,482  
                 
Stockholders’ Deficit:                
Common stock, $0.001 par value, 150,000,000 shares authorized, 55,216,680 and 54,216,680 shares issued and outstanding at July 31, 2021 and January 31, 2021, respectively     55,217       54,217  
Additional paid-in capital     1,583,396       576,266  
Stock payable     -       19,980  
Deferred stock compensation     (450,000 )     -  
Accumulated deficit     (2,778,867 )     (1,302,708 )
Total Stockholders’ Deficit     (1,590,254 )     (652,245 )
Total Liabilities and Stockholders’ Deficit   $ 1,321     $ 12,237  

 

The accompanying unaudited notes to the financials should be read in conjunction with these condensed financial statements.

 

F-2

 

 

FACT, INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

    2021     2020     2021     2020  
    Three Months Ended     Six Months Ended  
    July 31,     July 31,  
    2021     2020     2021     2020  
                         
Revenues   $ -     $ -     $ -     $ -  
                                 
Operating Expenses                                
Advertising and marketing     12,000       -     $ 146,000     $ -  
General and administrative     245,284       2,160       510,195       5,807  
Professional fees     10,182       -       71,535       -  
Total Operating Expenses     267,466       2,160       727,730       5,807  
                                 
Loss from operations     (267,466 )     (2,160 )     (727,730 )     (5,807 )
                                 
Other Income (Expense)                                
Interest expense     (207,696 )     -       (386,289 )     -  
Change in fair value of derivative liability     (541,703 )     -       (362,140 )     -  
Net Other Income (Expenses)     (749,399 )     -       (748,429 )     -  
                                 
Loss Before Provision for Income Taxes     (1,016,865 )     (2,160 )     (1,476,159 )     (5,807 )
                                 
Provision for Income Taxes     -       -       -       -  
                                 
Net Loss   $ (1,016,865 )   $ (2,160 )   $ (1,476,159 )   $ (5,807 )
                                 
Net loss per common share: basic and diluted   $ (0.02 )   $ (0.00 )   $ (0.03 )   $ (0.00 )
                                 
Weighted average number of common shares outstanding: basic and diluted     55,216,680       69,566,680       54,954,592       69,566,680  

 

The accompanying unaudited notes to the financials should be read in conjunction with these condensed financial statements.

 

F-3

 

 

FACT, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(UNAUDITED)

 

For the Three and Six Months Ended July 31, 2021

 

    Shares     Amount     Capital     Payable     Compensation     Deficit     Total  
    Common stock    

Additional

Paid-in

    Stock     Deferred Stock     Accumulated        
    Shares     Amount     Capital     Payable     Compensation     Deficit     Total  
                                           
Balance - January 31 2021     54,216,680     $ 54,217     $ 576,266     $ 19,980     $ -     $ (1,302,708 )   $ (652,245 )
                                                         
Common stock issued for cash     100,000       100       99,900       (19,980 )     -       -       80,020  
Common stock for service     900,000       900       899,100       -       (675,000 )     -       225,000  
Beneficial conversion feature     -       -       8,130       -       -       -       8,130  
Net loss     -       -       -       -       -       (459,294 )     (459,294 )
Balance - April 30, 2021     55,216,680       55,217       1,583,396       -       (675,000 )     (1,762,002 )     (798,389 )
                                                         
Amortization deferred stock compensation     -       -       -       -       225,000       -       225,000  
Net loss     -       -       -       -               (1,016,865 )     (1,016,865 )
Balance - July 31,2021     55,216,680     $ 55,217     $ 1,583,396     $ -     $ (450,000 )   $ (2,778,867 )   $ (1,590,254 )

 

For the Three and Six Months Ended July 31, 2020

 

    Shares     Amount     Capital     Deficit     Total  
    Common stock    

Additional

Paid-in

    Accumulated        
    Shares     Amount     Capital     Deficit     Total  
                               
Balance - January 31 2020     69,566,680     $ 69,567     $ (39,717 )   $ (42,017 )   $ (12,167 )
                                         
Net loss     -       -       -       (3,647 )     (3,647 )
Balance - April 30, 2020     69,566,680       69,567       (39,717 )     (45,664 )     (15,814 )
                                         
Net loss     -       -       -       (2,160 )     (2,160 )
Balance - July 31, 2020     69,566,680     $ 69,567     $ (39,717 )   $ (47,824 )   $ (17,974 )

 

The accompanying unaudited notes to the financials should be read in conjunction with these condensed financial statements.

 

F-4

 

 

FACT, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

    2021     2020  
    Six Months Ended  
    July 31,  
    2021     2020  
             
Cash Flows from Operating Activities                
Net loss   $ (1,476,159 )   $ (5,807 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation expense     -       200  
Amortization of debt discount     217,977       -  
Change in value of derivative liabilities     362,140       -  
Stock based compensation     450,000       -  
Default penalty     124,000       -  
Changes in operating assets and liabilities:                
Prepaid expenses     1,250       -  
Accounts payable and accrued liabilities     12,280       -  
Accrued note payable interest     44,312       -  
Accrued management compensation     12,014       -  
Net cash used in operating activities     (252,186 )     (5,607 )
                 
Cash Flows from Financing Activities                
Proceeds from loan - related party     -       5,650  
Proceeds from loan     21,000       -  
Proceeds from issuance of common stock     80,020       -  
Proceed from issuance of convertible notes     141,500       -  
Net cash provided by Financing Activities     242,520       5,650  
                 
Net change in cash for period     (9,666 )     43  
Cash at beginning of period     9,945       46  
Cash at end of period   $ 279     $ 89  
                 
Supplemental Cash Flow Information                
Cash paid for income taxes   $ -     $ -  
Cash paid for interest   $ -     $ -  
                 
Non Cash Investing and Financing Activities                
Debt discount recognized as derivative liability   $ 8,308     $ -  
Beneficial conversion feature   $ 8,130     $ -  
Issuance of common stock for stock payable   $ 19,980     $ -  

 

The accompanying unaudited notes to the financials should be read in conjunction with these condensed financial statements.

 

F-5

 

 

FACT, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

 

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

 

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited interim financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited interim financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended January 31, 2021, as filed with the SEC on September 24, 2021.

 

Use of Estimates

 

The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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.

 

Convertible Financial Instruments

 

Beneficial Conversion Feature - The issuance of the convertible debt described in Note 3, below, generated a beneficial conversion feature (“BCF”), which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. The Company recognized the BCF by allocating the intrinsic value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, resulting in a discount on the convertible debt (recorded as a component of additional paid-in capital). The discount is amortized to interest expense over the term of the convertible debt.

 

Share-Based Compensation

 

ASC 718 “Compensation – Stock Compensation,” prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

Equity-based payments to non-employees are measured at grant-date fair value of the equity instruments that the Company is obligated to issue when the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Equity-classified nonemployee share based payment awards are measured at the grant date

 

F-6

 

 

During the six months ended July 31, 2021 and 2020, the Company recognized $450,000 and $0, respectively.

 

Basic and Diluted Net Loss Per Common Share

 

Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued.

 

For the six months ended July 31, 2021, and 2020, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive.

 

    Six Months Ended  
    July 31,  
    2021     2020  
    Shares     Shares  
Warrant     291,775       -  
Convertible Notes     3,135,316       -  
Total     3,427,091       -  

 

RECENT ISSUED ACCOUNTING PRONOUNCEMENTS

 

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company has adopted this standard on February 1, 2021.

 

The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements.

 

NOTE 2 – LIQUIDITY AND GOING CONCERN

 

The Company’s financial statements as of July 31, 2021 have been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management, significant shareholders and other sources sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

F-7

 

 

COVID-19

 

The novel coronavirus (“COVID-19”) was first identified in late 2019. COVID-19 spread rapidly throughout the world and, in March 2020, the World Health Organization (“WHO”) characterized COVID-19 as a pandemic. COVID-19 is a pandemic of respiratory disease spreading from person-to-person that poses a serious public health risk. It has significantly disrupted supply chains and businesses around the world. The extent and duration of the COVID-19 impact on our operations and financial position is highly uncertain.

 

Management continues to closely monitor and evaluate the impact of the COVID-19 pandemic on the Company’s operations and will take, the necessary actions to right-size the business in this environment, which is evolving daily. Some potential actions include, but are not limited to, modified work schedules as well as appropriate adjustments to the operating expenditures and capital spending plans.

 

NOTE 3 – CONVERTIBLE NOTES

 

On November 19, 2020, the Company entered a Securities Purchase Agreement (“SPA”) and Equity Purchase Agreement (“EPA”) with a third party. Pursuant to SPA, the Company issued a convertible note payable up to $730,000, bearing 10% annual interest and cash consideration up to $600,000 with maturity date of six months for each tranche payment. The note was originally to be convertible at the lesser of (i) $2.00 per share and (ii) 65% of the lowest traded price of the common stock as reported on the trading market during the 30 consecutive trading period. During the year ended January 31, 2021, the first tranche of $310,000 was issued and due on May 19, 2021. The Oasis note is currently past due as of issuance and incurred a penalty of $124,000 or 140% on the principal, recorded as interest expense. As of July 31, 2021, the Oasis note has $434,000 due, bearing interest at 24% per annum and is convertible at the lesser of (i) $2.00 per share and (ii) 60% of the lowest traded price of the common stock as reported on the trading market during the 30 consecutive trading period.

 

On January 8, 2021, the Company entered into a promissory note with MRVL Island Ventures LLC in the amount of $50,000. This note is payable on January 31st, 2022. The Conversion price in effect of any conversion day shall be equal lowest price in effect of 75% of the lowers VWAP during the 15 days trading days immediately prior to the conversion date. The price shall be appropriately adjusted for stock splits, dividends, stock combination, reclassification or any similar transaction that proportionately increase or decrease the stock during this period. The interest rate is 8% per year which is payable in cash or kind payable on the maturity date. Late fees are assessed at 16% per annum at the discretion of MRVL management to waive any fees.

 

During the month March 2021, the Company issued three (3) convertible notes in the total of amount of $133,000. The term of the notes are 18 months, and annual interest rates are 8% (default rate is 18%). The Conversion price is a fixed $1.00. The Company recognized a beneficial conversion feature of $8,130.

 

On May 28, 2021, the Company issued a convertible note in amount of $8,500. The term of the notes are 12 months, and annual interest rates are 8% (default rate is 24%). The Conversion price in effect of any conversion day shall be equal lowest price in effect of 75% of the lowers VWAP during the 15 days trading days immediately prior to the conversion date. The Company recognized a debt discount as derivative liability of $8,308.

 

The Company determined that the conversion features, in the convertible notes which have variable conversion prices, met the definition of a liability in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and therefore bifurcated the embedded conversion options once the notes become convertible and accounted for it as a derivative liability. The fair value of the conversion feature was recorded as a debt discount and amortized to interest expense over the term of the note.

 

The Company valued the conversion feature using the Black-Scholes Merton pricing model. The fair value of the derivative liability for all the notes that became convertible during the year ended January 31, 2021 amounted to $498,301, and $145,915 of the value assigned to the derivative liability was recognized as a debt discount to the notes while the balance of $352,386 was recognized as a “day 1” derivative loss.

 

F-8

 

 

During the six months ended July 31, 2021, the Company recorded interest expense of $168,312 and amortization of debt discount of $217,977.

 

NOTE 4 – DERIVATIVE LIABILITIES

 

The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The Company accounts for warrants as a derivative liability due to there being no explicit limit to the number of shares to be delivered upon settlement of all conversion options.

 

ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item.

 

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes Merton pricing model to calculate the fair value as of July 31, 2021. The Black-Scholes Merton model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note is estimated using the Black-Scholes Merton valuation model, except for the Oasis note that is in default and is calculated on a conversion liability with no duration.

 

For the six months ended July 31, 2021, the estimated fair values of the liabilities measured on a recurring basis are as follows:

 

      Six Months Ended  
      July 31,  
      2021  
Expected term     0.05 - 1.00 years  
Expected average volatility     1.38 - 231 %
Expected dividend yield     -  
Risk-free interest rate     0.01 - 0.05 %

 

The following table summarizes the changes in the derivative liabilities during the six months ended July 31, 2021:

 

Fair Value Measurements Using Significant Observable Inputs (Level 3)  
Balance - January 31, 2021   $ 469,589  
Addition of new derivatives recognized as debt discounts     8,308  
Loss on change in fair value of the derivative     362,140  
Balance - July 31, 2021   $ 840,037  

 

NOTE 5 – WARRANTS

 

During the year ended January 31, 2021, 291,775 warrants were granted for a period of five years from issuance, at a price of $1.10 per share. The intrinsic value at July 31, 2021 was $0. The Company values the warrants using the Black Scholes model, with appropriate assumptions for warrant life, stock value, risk free interest rate, and volatility.

 

A summary of activity during the nine months ended July 31, 2021 follows:

 

    Warrants Outstanding  
    Number of    

Weighted

Average

   

Weighted Average Remaining

Contractual life

 
    warrants     Exercise Price     (in years)  
Outstanding, January 31, 2021     291,775     $ 1.10       4.80  
Granted     -       -       -  
Reset feature     -       -       -  
Exercised     -       -       -  
Forfeited/canceled     -       -       -  
Outstanding, July 31, 2021     291,775     $ 1.10       4.56  
                         
Exercisable, July 31, 2021     291,775     $ 1.10       4.56  

 

F-9

 

 

NOTE 6 – LOAN PAYABLE

 

On July 28, 2021, the Company issued a promissory note in amount of $21,000. The term of note is on demand, unsecured and without interest.

 

NOTE 7 – STOCKHOLDERS’ EQUITY

 

The Company has 150,000,000 shares of common stock authorized with a par value of $0.001 per share.

 

During the six months ended July 31, 2021, the Company issued common stock as follows:

 

  ● 100,000 shares at price of $1.00 per share, for cash and stock payable.
     
  ● 900,000 shares value at $1.00 per share, for services to be provided over a 1 year term. As of July 31, 2021, the Company recorded as part of equity, deferred stock compensation of $450,000.

 

As of July 31, 2021 and January 31, 2021, the Company had 55,216,680 and 54,216,680 shares of common stock issued and outstanding, respectively.

 

NOTE 8 – RELATED PARTY TRANSACTIONS

 

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

 

During the six months ended July 31, 2021, Rutherglen Value Enhancements Inc (“Rutherglen”) invested $113,000 for convertible notes. Rutherglen is owned and managed by Brian McWilliams, a former employee and investor in FACT, Inc.

 

For the six months ended July 31, 2021, the Company’s accrued salary of $12,014, to a member of the Board of Directors.

 

In the 4th quarter of 2020, Kryptos Art Technologies, Inc, a majority shareholder in FACT, Inc, entered into a contract with SRAX on behalf of Fact, Inc. The contract was signed by Brian McWilliams who was CEO of FACT, Inc at the time and the owner of Kryptos Art Technologies. SRAX is an operating system and investor relations platform that allows you to track the buying and selling of your publicly traded stock to give you insights across marketing channels. It allows you to target investors and present shareholders to increase your capital. The cost of the platform was $900,000 which was payable in FACT, Inc stock. The system became functional in March of 2021 and shall remain in place until March 2022. FACT, Inc plans to approach SRAX in March of 2022 to negotiate a reduced fee or credit for the platform fees for 2022-2023.

 

NOTE 9 - SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from July 31, 2021 through the date these financial statements were issued and determined the following events require disclosure:

 

  ● The Company will issue 20,000 shares to each of its four (4) directors on December 31, 2021 for a total of 80,000 shares.
     
  ● The Directors have agreed to defer their payments until FACT, Inc can raise adequate funds to make such payments.

 

F-10
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

PRELIMINARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains forward-looking statements. The reader should understand that several factors govern whether any forward-looking statement contained herein will be or can be achieved. Any one of those factors could cause actual results to differ materially from those projected herein. These forward-looking statements include plans and objectives of management for future operations, including plans and objectives relating to the products and the future economic performance of the Company. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, future business decisions, and the time and money required to successfully complete development projects, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of those assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in any of the forward-looking statements contained herein will be realized. Based on actual experience and business development, the Company may alter its marketing, capital expenditure plans or other budgets, which may in turn affect the Company’s results of operations. In light of the significant uncertainties inherent in the forward-looking statements included therein, the inclusion of any such statement should not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved.

 

A complete discussion of these uncertainties are contained in our Annual Financial Statements included in the Form 10-K for the fiscal year ended January 31, 2021, as filed with the Securities and Exchange Commission on September 24, 2021.

 

Introduction

 

Tiburon International Trading, Corp (“Tiburon”) was established under the laws of the State of Nevada on February 17, 2017. Tiburon was established as a development stage company focusing its business on the distribution of air infiltration valves manufactured in China to markets in Europe and in the Commonwealth of Independent States (CIS). On October 5, 2020, Kryptos Art Technologies, Inc, (“Kryptos”), an Ontario corporation, purchased 2,500,000 shares of Tiburon from Yun Cai, who was the Chief Executive Officer, President, Chief Financial Officer and Director of Tiburon. As a result of this sale, Kryptos became the majority shareholder of the Tiburon. The shares owned by Kryptos represent approximately 71.87% of Tiburon’s outstanding common stock. The purchase price was $232,467. The funds were funds of Kryptos. Kryptos is controlled by Victoria Glynn.

 

Mr. McWilliams was appointed Tiburon’s Chief Executive Officer on October 5, 2020. On October 8, 2020, Kryptos, as the holder of approximately 71% of the voting stock of the Company executed a shareholder consent to effect a name change of the Tiburon to Fact, Inc. The Company wound down operations of the historic Tiburon business, which had largely been curtailed by prior management because of COVID-19 and lack of capital necessary for expansion of the website and product offerings.

 

Kryptos had been working on a technology designed to detect and eliminate fraud in the art world. Kryptos has assigned all of its technological know-how in this area to the Company which we will pursue as our primary business operations. In connection therewith, the Company has entered into and is negotiating a series of development and consulting agreements with software and hardware developers to complete the development of our products The Company expects to enter into a license agreement to utilize fraud detection technology in the art area. The Company expects to enter into such license agreement with an award winning forensic ballistic technology company that revolutionized the Criminal Justice system’s approach to ballistics.

 

On October 8, 2020, Kryptos, as the holder of approximately 71% of the voting stock of Tiburon, executed a shareholder consent to effect a name change of Tiburon to Fact, Inc. FACT is a leading innovator of bringing forensic technology to the art world. Using white light interferometry, FACT takes a non-destructive unique digital fingerprint of the art using over 10,000 unique scans. These scans, measured at two (2) microns, 1/50th of a human hair, are unable to be reproduced or forged. Scans are compared to one another by a computer algorithm to verify the paintings authenticity.

 

3
 

 

All data is stored securely on the block-chain for real time collection management. We are currently developing a front-end user interface as well as modifying existing ballistics firmware for a comprehensive verification, tracking and reporting system. A workable prototype (the “Prototype”) is expected to be ready during the Company’s second quarter ending July 31, 2022.

 

We plan to market to various channels in different capacities including, but not limited to, subscription models, leasing models, and individual point of sale models. The fees for our different models will range from a flat fee to a percentage of sales fee. We are hopeful the Company will commence its marketing efforts in Company’s first quarter ending April 30, 2022, with the hope that the product may launch in the Company’s second quarter ending July 31, 2022.

 

The following is a discussion of our financial condition, results of operations, financial resources, and working capital. This discussion and analysis should be read in conjunction with our financial statements contained in this Form 10-Q.

 

OVERVIEW

 

The Company’s sales from continuing operations for the six months ended July 31, 2021 and 2020 were $0 and $0, respectively.

 

GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Results of Operations.

  

Three months ended July 31, 2021 compared to three months ended July 31, 2020:

 

The following summary of our operations should be read in conjunction with our unaudited financial statements for the three months ended July 31, 2021 and 2020.

 

    Three Months Ended        
    July 31,        
    2021     2020     Change  
Revenue   $ -     $ -     $ -  
Operating expenses     267,466       2,160       265,306  
Other expenses     749,399       -       749,399  
Net loss   $ (1,016,865 )   $ (2,160 )   $ (1,014,705 )

 

During the three months ended July 31, 2021 and 2020, we did not have any revenues.

 

Our financial statements report a net loss of $1,016,585 for the three months ended July 31, 2021 compared to a net loss of $2,160 for the three months ended July 31, 2020.

 

4
 

 

Our operating expenses for the three months ended July 31, 2021 were $267,466 compared to $2,160 for the three months ended July 31, 2020. For the three months ended July 31, 2021, operating expenses consists of professional fees of $10,182, advertising and marketing of $12,000 and general and administrative expenses of $245,284. General and administrative expenses increased primarily in 2021 due to the issuance of common shares for services valued at $225,000 and salary of $20,000.

 

For the three months ended July 31, 2020, operating expenses consisted of general and administrative expenses of $2,160.

 

Our other expenses for the three months ended July 31, 2021 was $1,016,865 compared to $0 for the three months ended July 31, 2020. For the three months ended July 31, 2021, other expenses consist of interest expense of $207,696 (including amortization debt discount of $49,597) and loss of change in fair value of derivative liability of $541,703.

 

Six months ended July 31, 2021 compared to six months ended July 31, 2020:

 

The following summary of our operations should be read in conjunction with our unaudited financial statements for the six months ended July 31, 2021 and 2020.

 

    Six Months Ended        
    July 31,        
    2021     2020     Change  
Revenue   $ -     $ -     $ -  
Operating expenses     727,730       5,807       721,923  
Other expenses     748,429       -       748,429  
Net loss   $ (1,476,159 )   $ (5,807 )   $ (1,470,352 )

 

During the six months ended July 31, 2021 and 2020, we did not have any revenues.

 

Our financial statements report a net loss of $1,476,159 for the six months ended July 31, 2021 compared to a net loss of $5,807 for the six months ended July 31, 2020.

 

Our operating expenses for the six months ended July 31, 2021 were $727,730 compared to $5,807 for the six months ended July 31, 2020. For the six months ended July 31, 2021, operating expenses consists of professional fees of $71,535, advertising and marketing of $146,000 and general and administrative expenses of $510,195. General and administrative expenses increased primarily in 2021 due to the issuance of common shares for services valued at $450,000 and salary of $59,373.

 

For the six months ended July 31, 2020, operating expenses consisted of general and administrative expenses of $5,807.

 

Our other expenses for the six months ended July 31, 2021 was $748,429 compared to $0 for the six months ended July 31, 2020. For the six months ended July 31, 2021, other expenses consist of interest expense of $386,289 (including amortization of debt discount of $217,977) and loss of change in fair value of derivative liability of $362,140.

 

Liquidity and Capital Resources

 

The following table provides selected financial data about our company as of July 31, 2021 and January 31, 2021.

 

5
 

 

Working Capital

 

    July 31,     January 31,        
    2021     2021     Change  
Cash and cash equivalents   $ 279     $ 9,945     $ (9,666 )
                         
Current Assets   $ 1,321     $ 12,237     $ (10,916 )
Current Liabilities   $ 1,479,316     $ 664,482     $ 814,834  
Working Capital (Deficiency)   $ (1,477,995 )   $ (652,245 )   $ (825,750 )

 

Stockholders’ deficit was $1,590,254 as of July 31, 2021 compared to stockholders’ deficit of $652,245 as of January 31, 2021. The increase in current liabilities is primarily due to an increase of convertible notes, loan payable and an increase in derivative liability.

 

Cash Flows

 

    Six Months Ended  
    July 31,  
    2021     2020  
Cash used in operating activities   $ (252,186 )   $ (5,607 )
Cash provided by Investing Activities   $ -     $ -  
Cash provided by financing activities   $ 242,520     $ 5,650  
Net Change In Cash   $ (9,666 )   $ 43  

 

Operating Activities

 

We have not generated positive cash flows from operating activities. For the six months ended July 31, 2021, net cash flows used in operating activities was $252,186 consisting of a net loss of 1,476,159 reduced by amortization of debt discount of $217,977, stock-based compensation of $450,000, net change in working capital of $69,856, and loss of change in fair value of derivative liability of $362,140. The loss on derivative liability was due to the increase of the liability primarily from the drop on stock price at July 31, 2021 as compared to January 31, 2021

 

For the six months ended July 31, 2020, net cash flows used in operating activities was $5,607, consisting of a net loss of $5,807, reduced by depreciation of $200.

 

Investing Activities

 

The Company did not use any funds for investing activities during the six months ended July 31, 2021 and 2020.

 

Financing Activities

 

For six months ended July 31, 2021, net cash provided by financing activities was $242,520, consisting of issuance common stock of $80,020, issuance convertible notes of $141,500 and issuance promissory note of $21,000.

 

For six months ended July 31,2020, net cash provided by financing activities was $5,650, consisting of loan from related party of $5,650.

 

Critical Accounting Policies

 

We believe that several accounting policies are important to understanding our historical and future performance. We refer to these policies as “critical” because these specific areas generally require us to make judgments and estimates about matters that are uncertain at the time we make the estimate, and different estimates—which also would have been reasonable—could have been used, which would have resulted in different financial results.

 

6
 

 

Our management’s discussion and analysis of financial condition and results of operations is based on our condensed financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of our condensed financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates based on historical experience and make various assumptions, which management believes to be reasonable under the circumstances, which form the basis for judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

 

The notes to our condensed financial statements contained herein contain a summary of our significant accounting policies. We consider the following accounting policies critical to the understanding of the results of our operations:

 

Convertible Financial Instruments

 

The Company bifurcates conversion options from their host instruments and accounts for them as free-standing derivative financial instruments if certain criteria are met. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional, as that term is described under applicable GAAP.

 

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, discounts are recorded for the intrinsic value of conversion options embedded in the instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the instrument.

 

Derivative financial instruments - Derivative financial instruments are classified as equity if the contracts (1) require physical settlement or net-share settlement, or (2) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). Contracts which (1) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), (2) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement), or (3) that contain reset provisions that do not qualify for the scope exception are classified as liabilities. The Company assesses classification of its common stock purchase warrants and derivatives at each reporting date to determine whether a change in classification between equity and liabilities is required.

 

Beneficial Conversion Feature - The issuance of the convertible debt generated a beneficial conversion feature (“BCF”), which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. The Company recognized the BCF by allocating the intrinsic value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, resulting in a discount on the convertible debt (recorded as a component of additional paid-in capital). The discount is amortized to interest expense over the term of the convertible debt.

 

Share-Based Compensation

 

ASC 718 “Compensation – Stock Compensation,” prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

Equity-based payments to non-employees are measured at grant-date fair value of the equity instruments that the Company is obligated to issue when the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Equity-classified nonemployee share based payment awards are measured at the grant date

 

7
 

 

Off- Balance Sheet Arrangements

 

The Company currently does not have any off-balance sheet arrangements.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not Applicable

 

ITEM 4. CONTROLS AND PROCEDURES

 

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

 

The Company’s management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as that term is defined in Rule 13a-15(e)) as of July 31, 2021, the end of the period covered by this Quarterly Report on Form 10-Q.

 

Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer (Principal Financial and Accounting Officer) concluded that, as of July 31, 2021, our internal control over financial reporting was not effective as of the end of the period covered to ensure that information required to be disclosed in our reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to the Company’s management, including its principal executive officer and its principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Principal Executive Officer, and our Principal Financial and Accounting Officer, to allow timely decisions regarding required disclosure.

 

During 2020, we identified material weaknesses in our internal control over financial reporting, which were disclosed in our annual report on Form 10-K filed with the SEC on September 24, 2021.

 

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

 

There were no changes in our internal control over financial reporting that occurred during the last fiscal quarter, (i.e., the three months ended July 31, 2021), that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

8
 

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 1A. RISK FACTORS

 

Not applicable.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

On January 19, 2021, the Company issued to MSW PROJECTS LTD 50,000 shares of Common Stock.

 

On February 9, 2021, the Company issued to MSW PROJECTS LTD 100,000 shares of Common Stock.

 

On March 24, 2021, the Company issued to SAX INC 100,000 shares of Common Stock.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

Not applicable.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION.

 

None.

 

WHERE YOU CAN FIND ADDITIONAL INFORMATION

 

We have filed with the Securities and Exchange Commission this Form 10-Q, including exhibits. You may read and copy all or any portion of the registration statement or any reports, statements or other information in the files at SEC’s Public Reference Room located at 100 F Street, NE., Washington, DC 20549, on official business days during the hours of 10 a.m. to 3 p.m.

 

You can request copies of these documents upon payment of a duplicating fee by writing to the Commission. You may call the Commission at 1-800-SEC-0330 for further information on the operation of its public reference room. Our filings, including the registration statement, will also be available to you on the website maintained by the Commission at http://www.sec.gov.

 

We intend to furnish our stockholders with annual reports which will be filed electronically with the SEC containing financial statements audited by our independent auditors, and to make available to our stockholders quarterly reports for the first three quarters of each year containing unaudited interim financial statements.

 

Our website is located at http://www.factsecured.com. The Company’s website and the information to be contained on that site, or connected to that site, is not part of or incorporated by reference into this filing.

 

9
 

 

ITEM 6. EXHIBITS

 

(a)   Exhibits.
     
31.1   Certification of our Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2   Certification of our Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1   Certification of our Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

 

101 INS   Inline XBRL Instance Document
101 SCH   Inline XBRL Taxonomy Extension Schema Document
101 CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document
101 DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document
101 LAB   Inline XBRL Taxonomy Extension Label Linkbase Document
101 PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

10
 

 

SIGNATURES

 

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

 

Date: January 14, 2022

 

FACT, INC.  
     
By: /s/ Patricia Trompeter  
  Patricia Trompeter  
  Chief Executive Officer  

 

11

 

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