NOTE 1 NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) NATURE OF BUSINESS
Kyto Technology and Life Science, Inc. (the “Company”) was formed as a Florida corporation on March 5, 1999 under the name of B Twelve, Inc.. In August, 2002, the Company changed its name from B Twelve, Inc. to Kyto BioPharma Inc. and in May 2018, the name was changed again to Kyto Technology and Life Science, Inc. In July 2019, the Company was re-incorporated as a Delaware company. The Company operates virtually, from public locations or the homes of its officers, and does not currently lease any office space.
The Company was originally formed to acquire and develop proprietary drugs for the treatment of cancer, arthritis, and other autoimmune diseases and had been evaluating a number of strategies. In April 2018, the Board adopted a new business plan focused on the development of early stage technology and life science businesses through early stage investment funding. The Company has recruited a number of experienced investment consultants from a network that includes angel investors, corporate managers, sophisticated early stage investors and successful entrepreneurs with experience across a number of technology and life science products and markets, and relies on input from these advisors in conducting due diligence and making investment decisions. In order to offset the risk in early-stage investing, the Company works with angel investment groups and other sophisticated investors and participates only after these groups have completed due diligence and committed to invest, in effect becoming lead investors. The Company then completes its own due diligence and invests under identical terms as the lead investors. The Company will do follow-on investments in existing portfolio companies, assuming adequate progress, when portfolio companies initiate new financing rounds. The Company currently does not typically invest more than $250,000 in any single investment. Generally, the Company’s investments represent less than 5% ownership interests, and the Company therefore has no effective control or influence over the management or commercial decisions of the companies in which it invests. The Company plans to generate revenue from realised gains from the sale of the businesses in which it has invested, or some or all of its shareholdings in those cases where portfolio companies go public. Generally, it is expected that investments will be realised from an exit within a period of four years following initial investment. Such exits or liquidity events are outside the Company’s control and depend on merger and acquisition (“M&A”) transactions or an initial public offering (“IPO”) which may result in cash or equity proceeds. Accordingly, it is difficult to forecast revenue, net income, and cash flow. Other than making its initial and, potentially, follow-on investments in its portfolio companies, the Company does not provide any financial support to any of its investees.
The Company has one regular employee – the CEO. Prior to December 31, 2020, the chief executive officer, Paul Russo, of Kyto Technology and Life Science, Inc. was acting as a consultant to the Company and did not receive contractual compensation for his services in the form of cash. For the year ended March 31, 2021 he was granted 215,000 stock options, and an ex-gratia bonus of $210,000. As of January 1, 2021, Mr. Russo was engaged as an employee of the Company at a salary of $400,000 per annum of which 60% is paid monthly, and the balance deferred to be paid once the Company lists and starts trading on the Nasdaq exchange. The full terms of Mr. Russo’s employment are described in an engagement letter filed on Form 8K on February 1, 2021, incorporated by reference herein, which was approved by the Compensation committee of the Board of Directors on that date.
The Company has created a portfolio of minority investments in early-stage start-up companies and derives its revenue opportunity from the sale of those investments. Such sales are outside the Company’s control and depend on M&A transactions or IPOs which may result in cash or equity proceeds. Accordingly, it is difficult to forecast revenue, net income, and cash flow. Stay at home orders and general economic uncertainties arising out of the current Covid-19 epidemic have created additional delays and uncertainty. To date there has been no disruption to the Company’s business operations, although some of its portfolio investment companies report delays in their programs.
At March 31, 2020, management determined that the Company was an investment company for purposes of ASC 946 disclosure, and committed to follow the specialized accounting and reporting guidance contained therein. Accordingly, a new company, Kyto Investments, Inc. ( “KI”) was incorporated in Delaware in December 2020 in preparation for a restructuring and an N-2 Registration Statement filed in March 2021 for review by the SEC. KI is an internally managed, closed-end investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Immediately upon effectiveness of this N-2 Registration Statement, the Company will merge with KI, and the Company will be the surviving entity. As of the completion of the merger, the Company will constitute a “successor issuer” for the purposes of Rule 414 under the Securities Act and may continue the current offering by filing post-effective amendments to the Registration Statements.
F-12
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 1 NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
As a BDC, the Company will be required to comply with certain regulatory requirements. The Company also intends to elect to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a RIC, the Company is required to comply with additional regulatory requirements. The Company has prepared and submitted sequentially two N-2 Registration Statements to the SEC for review but has not yet received final approval of its registration as of the filing date of this report.
(B) LIQUIDITY
The Company made 47 investments in the year ended on March 31, 2021. These consisted of 23 investments in new portfolio companies totaling $1,784,997 and 24 follow-on investments into existing portfolio companies totalling $1,175,003.
The accompanying financial statements have been prepared assuming that we will continue as a going concern. We have experienced recurring negative cash flows from operations resulting in a deficit of $33.0 million accumulated from inception through March 31, 2021.
As of the date of this filing, the Company had approximately $400,000 of cash to cover its operating expenses and new investment requirements, and is continuing its efforts to raise additional funding on a recurring monthly basis. If successful, it will have sufficient funding for further investments and ongoing operations. However, there is no assurance that the Company will be able to raise sufficient cash to cover its requirements on attractive terms, if at all, and whether it will be able to continue as a going concern. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared assuming the Company will continue to operate as a going concern and do not include any adjustments that might result from the outcome of this uncertainty.
The Company expects to continue raising funds to cover operating expenses and to continue new portfolio and follow-on investments in existing portfolio companies on an ongoing basis as it continues efforts to become effective as a “40 Act” investment company. Once effective, the Company plans to engage an investment banker and list on the NASDAQ exchange. To continue to fund operations and purchase additional investments, we will need to raise additional capital. We may obtain additional financing in the future through the issuance of our common stock, through other equity or debt financings, or other means. However, there is no assurance that the Company will be able to raise sufficient cash to cover its requirements on attractive terms, if at all, and whether it will be able to continue as a going concern.
(C) BASIS OF PRESENTATION
The Company’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires the use of estimates, assumptions and the exercise of subjective judgment as to future uncertainties. Actual results could differ from those estimates, assumptions, and judgments. Significant items subject to such estimates will include determining the fair value of investments, revenue recognition, income tax uncertainties, and other contingencies.
The Company’s financial statements are prepared using the specialized accounting principles of Accounting Standards Codification Topic 946, Financial Services—Investment Companies (ASC Topic 946). In accordance with this specialized accounting guidance, the Company recognizes and carries all of its investments at fair value with changes in fair value recognized in earnings. Additionally, the company will not apply consolidation or equity method of accounting to its investments. The Company carries its liabilities at amounts payable, net of unamortized premiums or discounts. The Company does not currently plan to elect to carry its liabilities at fair value. Net assets are calculated as the carrying amounts of assets, including the fair value of investments, less the carrying amounts of its liabilities.
The financial information associated with the March 31, 2021 and 2020 financial statements, contains all adjustments and eliminations, consisting of only normal recurring adjustments, necessary for a fair presentation in accordance with GAAP.
F-13
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 1 NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) REVENUE RECOGNITION
The Company generates increases or decreases in its net assets from the sale of complete or partial investments following a mergers or acquisitions (“M&A”) transaction or restructuring or from the revaluation of portfolio company investments to recognize changes in their value, either upwards or downwards. As a minority, early-stage investor, the Company does not have the ability to manage the timing or acceptance of liquidity events that will realize its investments, nor the ability to predict when they may happen, although as a general guideline, it would expect such events to occur approximately four years after its investments are made. The Company will record the changes in value from investment activities upon completion of sale and receipt of net proceeds, after deducting related transaction expenses as realized gains or losses. Realized gains or losses on the sale of investments, or upon the determination that an investment balance, or portion thereof, is not recoverable, are calculated using the specific identification method. The Company measures realized gains or losses by calculating the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment. Net change in unrealized appreciation or depreciation reflects the change in the fair values of the Company’s portfolio investments during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized. The Company is in regular contact with the management of its portfolio investment companies to provide a basis for valuation changes or impairment reviews. The Company does not expect to receive interest and principal repayments on its convertible notes and generally expects these notes to convert into equity securities upon completion of qualified subsequent financings. Accrued interest is then recorded as an adjustment to fair value.
(E) INCOME TAXES
The Company accounts for income taxes under the Financial Accounting Standards Accounting Standard Codification Topic 740 "Accounting for Income Taxes" ("Topic 740"). Under Topic 740, 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. 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. Under Topic 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period, which includes the enactment date.
(F) USE OF ESTIMATES
In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial, and revenues and expenses during the period presented. Actual results may differ from these estimates.
Significant estimates during the fiscal year ended March 31, 2021 and 2020 include the valuation of investments, stock options and warrants.
(G) CASH AND CASH EQUIVALENTS
The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. There were no cash equivalents at March 31, 2021 and 2020, respectively.
(H) CONCENTRATIONS
The Company maintains its cash in bank checking and deposit accounts, which, at times, may exceed federally insured limits. As of March 31, 2021 and March 31, 2020, the Company had $1,187,868 and $0 deposits in excess of federally insured limits. The Company has not experienced any losses in such accounts through March 31, 2021 and 2020, respectively.
F-14
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 1 NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(I) STOCK-BASED COMPENSATION
Financial Accounting Standards Board Accounting Standards Codification Topic 718, “Stock Compensation” requires generally that all equity awards granted to employees and consultants be accounted for at “fair value.” This fair value is measured at grant date for stock settled awards, and at subsequent exercise or settlement for cash-settled awards. Under this method, the Company records an expense equal to the fair value of the options or warrants issued. The fair value is computed using the Black Scholes options pricing model. The Company granted 1,505,500 options to consultants and advisors during the year ended March 31, 2021, and 1,370,000 options to consultants and advisors during the year ended March 31, 2020. There were no grants to employees in either period.
(J) EARNINGS (LOSS) PER COMMON SHARE
Basic net change in net assets resulting from operations per common share is computed using the weighted-average number of shares outstanding for the period presented. Diluted net change in net assets resulting from operations per common shares is computed by dividing net increase (decrease) in net assets resulting from operations for the period adjusted to include the pre-tax effects of interest incurred on potentially dilutive securities, by the weighted average number of common shares outstanding plus any potentially dilutive shares outstanding during the period. The Company used the if-converted method in accordance with FASB ASC 260, Earnings per Share (“ASC 260”) to determine the number of potentially dilutive share outstanding.
(K) INVESTMENT AND VALUATION OF INVESTMENT AT FAIR VALUE
The Company reviews the performance of the underlying investments based on available information, including management reports, press releases, web site announcements and progress reports, third party equity updates, management interviews and, where accessible, financial reports, to determine their current and future potential value and liquidity. In the event that Management considers the value of an investment to be impaired, the carrying value of the investment will be written down by an impairment charge to reflect Management’s estimated valuation. The Company recognized impairment of one of its investments which was written down by $61,046 in September, 2019. The Company has not experienced any impairment write-downs in any prior or subsequent periods.
The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures”, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing US GAAP that require the use of fair value measurements which establishes a framework for measuring fair value and expands disclosure about such fair value measurements.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is an exchange price notion under which fair value is the price in an orderly transaction between market participants to sell an asset or transfer a liability in the market in which the reporting entity would transact for the asset or liability.
The Company has established procedures to estimate the fair value of its investments which the Company’s board of directors has reviewed and approved. The Company will use observable market data to estimate the fair value of investments to the extent that market data is available. In the absence of quoted market prices in active markets, or quoted market prices for similar assets or in markets that are not active, the Company will use the valuation methodologies described below with unobservable data based on the best available information in the circumstances, which incorporates the company’s assumptions about the factors that a market participant would use to value the asset.
For investments for which quoted market prices are not available, which will comprise most of our investment portfolio, fair value will be estimated by using the income or market approach. The income approach is based on the assumption that value is created by the expectation of future benefits discounted to a current value and the fair value estimate is the amount an investor would be willing to pay to receive those future benefits. The market approach compares recent comparable transactions to the investment. Adjustments are made for any dissimilarity between the comparable transactions and the investments. These valuation methodologies involve a significant degree of judgment on the part of our management and board.
F-15
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 1 NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In determining the appropriate fair value of an investment using these approaches, the most significant information and assumption may include, as applicable: available current market data, including relevant and applicable comparable market transactions, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition comparable, the principal market and enterprise values, environmental factors, among other factors.
The estimated fair values will not necessarily represent the amounts that may be ultimately realized due to the occurrence or nonoccurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of the valuation of the investments, the estimate of fair values may differ significantly from the value that would have been used had a broader market for the investments existed.
The authoritative accounting guidance prioritizes the use of market-based inputs over entity-specific inputs and establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation. The three levels of valuation hierarchy are defined as follows:
Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data
Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. Most of our investments fall into this category.
(L) BASIS OF ACCOUNTING AND RECENT ACCOUNTING PRONOUNCEMENTS
In March 2020, the Company adopted Accounting Standards Codification Topic 946, Financial Services—Investment Companies (ASC Topic 946). In accordance with this specialized accounting guidance, the Company recognizes and carries all of its investments at fair value with changes in fair value recognized in earnings. Additionally, the Company does not apply consolidation or equity method of accounting to its investments.
Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.
(M) DEFERRED FUNDRAISING EXPENSES
Since April 2019, the Company has conducted a series of sales of common and preferred stock to fund its ongoing investment program and cost of operations. Typically, it expects that this plan, from start to finish, may take from six to nine months and in order to match the cost and benefits of this process. The Company adopted a policy of capitalizing direct expenses incurred in the course of fund raising with the intention of netting accumulated expenses against proceeds from sale of equity, and reporting the net funds raised at the close. Direct expenses include legal fees, investor relations fees, investor roadshows and meeting expenses, and related filing and printing fees. At March 31, 2021, the Company had deferred $169,891 of such expenses, relating to the preparation and filing of an N-2 Registration Statement.
(N) RECLASSIFICATIONS
Certain prior period amounts have been reclassified to conform to the current period presentation. As of March 31, 2020 the Company treated all of its investment portfolio as Level 3 assets in determining the fair value of its investments. In reviewing the portfolio as of March 31, 2021 it was determined that one of the investments consisted of shares of common stock, tradable on the Toronto venture exchange, and, accordingly an investment of $73,500 was reclassified from Level 3 to Level 1. This reclassification represented 3% of net assets as of March 31, 2020, and did not affect results of operations, net assets or any debt or equity covenants and was considered immaterial.
F-16
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 1 NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In the financial statements for the year ended March 31, 2020, cash spent on the purchase of investments was recorded under the heading Cash used in investing activities in the Statement of Cash Flows. In the current year, cash spent on the purchase of investments is shown as Cash used in operating activities.
(O) COMMON STOCK SUBSCRIPTION LIABILITY
The treatment of consideration received under a stock subscription prior to the issuance of shares depends on the subscription agreement. If the Company is obligated to refund consideration received in the event that a subscription is canceled, amounts received are recorded as a liability until the underlying shares are actually issued.
(P) SECURITIES TRANSACTION
Securities transactions are accounted for on the date when the transactions for the purchase or sales of the securities is entered into by the Company (i.e. trade date).
NOTE 2 COMMITMENTS AND CONTINGENCIES
The Company has no commitments or contingencies.
NOTE 3 RELATED PARTY TRANSACTIONS
During the years ended March 31, 2021 and March 31, 2020, the Company paid consulting fees of $63,000 and $60,000 and discretionary bonuses of $235,000 and $218,000, respectively, to officers of the Company.
At March 31, 2021 the Company had accrued and owed $46,420 accrued compensation and travel expenses to Mr. Russo and $5,000 accrued consulting fees to Mr. Westbrook, respectively. At March 31, 2020 the Company had accrued and owed $750 accrued travel expenses to Mr. Russo and $5,000 accrued consulting fees to Mr. Westbrook, respectively.
NOTE 4 EARNINGS (LOSS) PER SHARE
Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common stock had been converted to common stock. Diluted net loss per share is not reported where the diluted earnings per share would be anti-dilutive. The following reconciles share amounts reported in the financial statements for the years ended:
If Converted method
|
|
|
|
|
Number of shares used in calculating fully- diluted EPS
|
|
|
|
|
|
Year ended
March 31,
2021
|
|
Year ended
March 31,
2020
|
|
Common Stock issued
|
6,808,684
|
|
5,836,832
|
|
Common stock subscribed not issued
|
2,978,600
|
|
-
|
|
Series A preferred stock
|
4,200,000
|
|
3,805,449
|
*
|
Series B preferred stock
|
3,628,906
|
|
95,753
|
*
|
Options
|
2,634,250
|
|
435,635
|
*
|
Warrants
|
1,596,667
|
|
3,805,449
|
*
|
|
|
|
|
|
Total used in calculating fully-diluted EPS
|
21,847,107
|
|
5,836,832
|
|
|
|
|
|
|
* These shares excluded from the calculation of fully-diluted EPS as the result would be anti-dilutive.
|
|
F-17
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 5 INVESTMENTS
The following table summarizes the Company’s investment portfolio at March 31, 2021 and 2020.
|
|
March 31, 2021
|
|
March 31, 2020
|
Number of portfolio companies
|
|
51
|
|
|
28
|
|
Fair value
|
$
|
6,821,407
|
|
$
|
2,665,499
|
|
Cost
|
|
5,686,545
|
|
|
2,726,545
|
|
|
|
|
|
|
|
|
% of portfolio at fair value
|
|
|
|
|
|
|
Convertible notes
|
|
2,553,954
|
37%
|
|
1,578,002
|
59%
|
Preferrred stock
|
|
3,129,458
|
46%
|
|
651,497
|
24%
|
Common stock
|
|
391,995
|
6%
|
|
73,500
|
3%
|
SAFE
|
|
325,000
|
5%
|
|
126,500
|
5%
|
Other ownership units
|
|
421,000
|
6%
|
|
236,000
|
9%
|
Total
|
|
6,821,407
|
100%
|
$
|
2,665,499
|
100%
|
Our investment portfolio represents approximately 97.5% of our net assets at March 31, 2021 and 99.9% at March 31, 2020. Investments in early stage start-up private operating entities, are valued based on available metrics, such as relevant market multiples and comparable company valuations, company specific-financial data including actual and projected results and independent third party valuation estimates. These investments are typically designated as Level 3 assets.
The majority of our investments are made in the United States and Canada, with additional investments made in Israel and the rest of the world.
F-18
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 5 INVESTMENTS (CONTINUED)
Investment Valuation Inputs
The fair values of the Company’s investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation as of March 31, 2021 and March 31, 2020 are as follows:
|
|
As of March 31, 2021
|
|
|
Quoted
prices in
active
markets
for
identical
securities
|
|
Significant
other
observable
inputs
|
|
Significant
other
inputs
|
|
|
Description
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
|
Investments at Fair Value
|
|
|
|
|
|
|
|
|
Private Portfolio Companies
|
|
|
|
|
|
|
|
|
Convertible notes
|
$
|
-
|
$
|
-
|
$
|
2,553,954
|
$
|
2,553,954
|
Preferred stock
|
|
-
|
|
-
|
|
3,129,458
|
|
3,129,458
|
Common stock
|
|
-
|
|
-
|
|
300,000
|
|
300,000
|
SAFEs
|
|
-
|
|
-
|
|
325,000
|
|
325,000
|
Other ownership interests
|
|
-
|
|
-
|
|
421,000
|
|
421,000
|
|
|
-
|
|
-
|
|
6,729,412
|
|
6,729,412
|
Public Portfolio Companies
|
|
|
|
|
|
|
|
|
Common stock
|
|
91,995
|
|
-
|
|
-
|
|
91,995
|
|
|
|
|
|
|
|
|
|
Total Investments at Fair value
|
$
|
91,995
|
$
|
-
|
$
|
6,729,412
|
$
|
6,821,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2020
|
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
March 31, 2020
|
|
|
|
|
|
|
|
|
Investments at Fair Value
|
|
|
|
|
|
|
|
|
Private Portfolio Companies
|
|
|
|
|
|
|
|
|
Convertible notes
|
$
|
-
|
$
|
-
|
$
|
1,578,002
|
$
|
1,578,002
|
Preferred stock
|
|
-
|
|
-
|
|
651,497
|
|
651,497
|
SAFEs
|
|
-
|
|
-
|
|
126,500
|
|
126,500
|
Other ownership interests
|
|
-
|
|
-
|
|
236,000
|
|
236,000
|
|
|
-
|
|
-
|
|
2,591,999
|
|
2,591,999
|
|
|
|
|
|
|
|
|
|
Public Portfolio Companies
|
|
|
|
|
|
|
|
|
Common stock
|
|
73,500
|
|
-
|
|
-
|
|
73,500
|
|
|
|
|
|
|
|
|
|
Total Investments at Fair value
|
$
|
73,500
|
$
|
-
|
$
|
2,591,999
|
$
|
2,665,499
|
|
|
|
|
|
|
|
|
|
As of March 31, 2021 and March 31, 2020, all our investments were treated as Level 3 with the exception of one which was invested in common stock of a public company and treated as Level 1.
F-19
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 5 INVESTMENTS (CONTINUED)
Significant Unobservable Inputs for Level 3 Assets and Liabilities
In accordance with FASB ASC 820, Fair Value Management, the tables below provide quantitative information about the Company’s fair value measurements of its Level 3 assets as of March 31, 2021 and March 31, 2020. In addition to the techniques and inputs noted in the tables below, according to the Company’s valuation policy, the Company may also use other valuation techniques and methodologies when determining the Company’s fair value measurements. The tables below are not meant to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements. To the extent an unobservable input is not reflected in the tables below, such input is deemed insignificant with respect to the Company’s Level 3 fair value measurements as of March 31, 2021 and March 31, 2020. Significant changes in the inputs in isolation would result in a significant change in the fair value measurement, depending on the materiality of the investment.
|
As of March 31, 2021
|
|
Fair Value
|
Valuation Approach/
Technique
|
Unobservable Inputs
|
Range/
Weighted
Average
|
|
|
|
|
|
Convertible notes
|
$ 2,553,954
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Preferred stock in private companies
|
3,129,458
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Common stock in private companies
|
300,000
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Common stock in public companies
|
91,995
|
Quoted security
|
Current stock price
|
N/A
|
SAFE
|
325,000
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Other investments
|
421,000
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Total Investments
|
$ 6,821,407
|
|
|
|
|
|
|
|
|
|
As of March 31, 2020
|
Asset
|
Fair Value
|
Valuation Approach/
Technique
|
Unobservable Inputs
|
Range/
Weighted
Average
|
|
|
|
|
|
Convertible notes
|
$ 1,578,002
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Preferred stock in private companies
|
651,497
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Common stock in public companies
|
73,500
|
Quoted security
|
Current stock price
|
N/A
|
SAFE
|
126,500
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Other investments
|
236,000
|
Market approach
|
Precedent and follow-on transactions
|
N/A
|
Total Investments
|
$ 2,665,499
|
|
|
|
|
|
|
|
|
F-20
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 5 INVESTMENTS (CONTINUED)
|
|
America
|
|
Canada
|
|
Rest of World
|
|
Total
|
Fair value beginning of year March 31, 2020
|
$
|
2,170,499
|
$
|
245,000
|
$
|
250,000
|
$
|
2,665,499
|
New investments
|
|
2,235,000
|
|
525,000
|
|
200,000
|
|
2,960,000
|
Proceeds from sale of investments
|
|
-
|
|
-
|
|
-
|
|
-
|
Realized gains
|
|
-
|
|
-
|
|
-
|
|
-
|
Change in value of investments
|
|
1,030,512
|
|
137,560
|
|
27,836
|
|
1,195,908
|
Fair value end of year March 31, 2021
|
$
|
5,486,011
|
$
|
907,560
|
$
|
427,836
|
$
|
6,821,407
|
|
|
|
|
|
|
|
|
|
|
|
America
|
|
Canada
|
|
Rest of World
|
|
Total
|
|
$
|
1,448,048
|
$
|
50,000
|
$
|
-
|
$
|
1,498,048
|
Fair value beginning of year March 31, 2019
|
|
783,497
|
|
195,000
|
|
250,000
|
|
1,228,497
|
New investments
|
|
-
|
|
-
|
|
-
|
|
-
|
Proceeds from sale of investments
|
|
-
|
|
-
|
|
-
|
|
-
|
Realized gains
|
|
(61,046)
|
|
-
|
|
-
|
|
(61,046)
|
Change in value of investments
|
$
|
2,170,499
|
$
|
245,000
|
$
|
250,000
|
$
|
2,665,499
|
|
|
Fintech
|
|
Technology
|
|
Life science
|
|
Total
|
Fair value beginning of year March 31, 2020
|
$
|
101,500
|
$
|
685,002
|
$
|
1,878,997
|
$
|
2,665,499
|
New investments
|
|
-
|
|
575,000
|
|
2,385,000
|
|
2,960,000
|
Proceeds from sale of investments
|
|
-
|
|
-
|
|
-
|
|
-
|
Realized gains
|
|
-
|
|
-
|
|
-
|
|
-
|
Change in value of investments
|
|
24,530
|
|
134,316
|
|
1,037,062
|
|
1,195,908
|
Fair value end of year March 31, 2021
|
$
|
126,030
|
$
|
1,394,318
|
$
|
5,301,059
|
$
|
6,821,407
|
|
|
|
|
|
|
|
|
|
|
|
Fintech
|
|
Technology
|
|
Life science
|
|
Total
|
Fair value beginning of year March 31, 2019
|
$
|
101,500
|
$
|
262,548
|
$
|
1,134,000
|
$
|
1,498,048
|
New investments
|
|
-
|
|
483,500
|
|
744,997
|
|
1,228,497
|
Proceeds from sale of investments
|
|
-
|
|
-
|
|
-
|
|
-
|
Realized gains
|
|
-
|
|
-
|
|
-
|
|
-
|
Change in value of investments
|
|
-
|
|
(61,046)
|
|
-
|
|
(61,046)
|
Fair value end of year March 31, 2020
|
$
|
101,500
|
$
|
685,002
|
$
|
1,878,997
|
$
|
2,665,499
|
We invest in early stage private companies developing products or solutions in the fields of fintech, technology and life sciences. Typically we are investing in interest bearing notes that may be convertible into equity securities upon the completion of qualified subsequent financings, preferred stock, SAFEs or other forms of ownership. Typically notes carry a two year term, and are then rolled over for additional periods if no other maturity triggers have been achieved. If a convertible note investment were to become impaired we would reverse the accrued interest and adjust the valuation to reflect management’s assessment of fair value. If a convertible note investment exceeds its maturity date we would request the portfolio company to document an extension, as well as considering whether the overdue note, along with all other available performance data and management reviews lead us to consider whether there should be an adjustment in fair value to reflect impairment of the investment.
F-21
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 5 INVESTMENTS (CONTINUED)
|
|
Convertible
notes
|
|
Preferred
stock
|
|
Common
stock
|
|
SAFEs
|
|
Other
ownership
interests
|
|
Total
|
Fair value beginning of year
March 31, 2020
|
$
|
1,578,002
|
$
|
651,497
|
$
|
73,500
|
$
|
126,500
|
$
|
236,000
|
$
|
2,665,499
|
Conversions into preferred stock
|
|
(558,000)
|
|
609,500
|
|
-
|
|
(51,500)
|
|
-
|
|
-
|
New investments
|
|
1,135,000
|
|
1,190,000
|
|
200,000
|
|
250,000
|
|
185,000
|
|
2,960,000
|
Proceeds from sale of investments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Realized gains
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Change in value of investments
|
|
398,952
|
|
678,461
|
|
118,495
|
|
-
|
|
-
|
|
1,195,908
|
Fair value end of year
March 31, 2021
|
$
|
2,553,954
|
$
|
3,129,458
|
$
|
391,995
|
$
|
325,000
|
$
|
421,000
|
$
|
6,821,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible
notes
|
|
Preferred
stock
|
|
Common
stock
|
|
SAFEs
|
|
Other
ownership
interests
|
|
Total
|
Fair value beginning of year
March 31, 2019
|
$
|
764,048
|
$
|
401,500
|
$
|
73,500
|
$
|
-
|
$
|
206,000
|
$
|
1,445,048
|
New investments
|
|
875,000
|
|
249,997
|
|
-
|
|
126,500
|
|
30,000
|
|
1,281,497
|
Proceeds from sale of investments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Realized gains
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Change in value of investments
|
|
(61,046)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(61,046)
|
Fair value end of year
March 31, 2020
|
$
|
1,578,002
|
$
|
651,497
|
$
|
73,500
|
$
|
126,500
|
$
|
236,000
|
$
|
2,665,499
|
NOTE 6 INCOME TAXES
Deferred income taxes result from the tax effect of transactions that are recognized in different periods for financial statement and income tax reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of the Company’s deferred income tax assets and liabilities are as follows:
|
|
For the years ended March 31
|
|
|
2021
|
|
2020
|
Net operating loss carryforwards
|
$
|
6,647,382
|
$
|
5,824,727
|
Investements
|
|
(329,109)
|
|
-
|
Gross deferred tax assets
|
|
6,318,273
|
|
5,824,727
|
Valuation allowance
|
|
(6,318,273)
|
|
(5,824,727)
|
Deferred tax asset, net of valuation allowance
|
$
|
-
|
$
|
-
|
The valuation allowance increased by $493,546 for the year ended March 31, 2021 and decreased by $709,677 for the year ended March 31, 2020.
For the years ended March 31, 2021 and 2020, the Company recorded income tax provision related to state minimum taxes due. A reconciliation of the federal statutory income tax rate and the Company’s effective income tax rate is as follow:
|
March 31,
|
|
2021
|
|
2020
|
Tax benefit at federal statutory rate
|
21.0%
|
|
(21.0)%
|
State income taxes, net of federal benefit
|
0.2%
|
|
(8.0)%
|
True up
|
(136.8)%
|
|
0.0%
|
Change in valuation allowance
|
115.6%
|
|
29.0%
|
Effective income tax rate
|
0.0%
|
|
0.0%
|
F-22
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 6 INCOME TAXES (CONTINUED)
At March 31, 2021, the Company had net operating loss carry forwards for federal and state income tax purposes of approximately $31.2 million and $1.5 million, respectively, which begin to expire in 2021 and 2039, respectively.
The Tax Cuts and Jobs Act also introduces a limitation on the amount of NOLs that a corporation may deduct in a single tax year under section 172(a) equal to the lesser of the available NOL carryover or 80 percent of a taxpayer’s pre-NOL deduction taxable income (the “80-percent limitation”). This limitation applies only to losses arising in tax years that begin after December 31, 2017 based upon section 172(e)(1) of the amended statute. At March 31, 2021, the Company has approximately $1.7 million of federal NOLs which do not expire but are subject to the 80% limitation.
The Company had no income tax provision for the years ended March 31, 2021 and 2020 because the Company had net operating losses for both federal and state tax purposes. The net operating loss carryovers may be subject to annual limitations under Internal Revenue Code Section 382/383, and similar state provisions, should there be a greater than 50% ownership change as determined under the applicable income tax regulations. The amount of the limitation would be determined based on the value of the company immediately prior to the ownership change and subsequent ownership changes could further impact the annual limitation or eliminate them entirely. An ownership change pursuant to Section 382/383 may have occurred in the past or could happen in the future, such that the NOLs available for utilization could be significantly limited or eliminate them entirely.
The utilization of the net operating loss carry forwards is dependent upon the ability to generate sufficient taxable income during the carry forward period. In addition, utilization of these carry forwards may be limited due to ownership changes rules, as defined in the Internal Revenue Code 382/383. The Company has not determined if an ownership change has occurred that would limit the use of the net operating losses or eliminate them entirely.
The Company uses the “more likely than not” criterion for recognizing the income tax benefit of uncertain income tax positions and establishing measurement criteria for income tax benefits. The Company has evaluated the impact of these provisions and has no unrecognized tax benefit as of March 31, 2021 and 2020. Our policy is to recognize interest and penalties related to income taxes as income tax expense. No amount of interest or penalties were recognized in the Company’s financial statements for 2021 and 2020. The Company is not currently under examination by income tax authorities in federal, state, or other foreign jurisdictions. The Company does not anticipate any significant changes within 12 months of this reporting date of its uncertain tax position. The Company files income tax returns in the federal and California state jurisdictions. The Company’s tax years will remain open for examination by federal and California authorities for three and four years, respectively, from the date of utilization of any net operating losses. The Company is currently not under examination by the Internal Revenue Service or any other taxing authorities and is not aware of any uncertain tax positions.
NOTE 7 EQUITY
PREFERRED STOCK
(A) SERIES A PREFERRED
As of March 31, 2021, the Company has outstanding 4,200,000 shares of Series A Preferred Stock (“Series A”) designated at a par value of $0.01 per share. The Series A were sold in a private placement to accredited investors as Stock Units (“Units”) consisting of one share of Series A Preferred Stock and one warrant to purchase a share of Common Stock at $0.80 per share. The Series A will be converted into shares of Common Stock upon listing of the Company on Nasdaq or NYSE. In the event of any liquidation or winding up of the Company, the holders of the Series A shall be entitled to receive in preference to the holders of shares of Common Stock a per share amount equal to two times (2 X) their original purchase price plus any declared but unpaid dividends (the Liquidation Preference). All share issuances and obligations are recognized on the books and stock register.
On March 2, 2021, in preparation for an intended future public offering (“IPO”), the Company made an offer to all its preferred shareholders to protect them against the possibility that the IPO price might be less than their preferred stock price. Accordingly, the Series A preferred stock was sub-designated into Series A, Series A-1 and Series A-2 and shareholders were granted an opportunity to purchase shares of Common Stock at $0.40 per share. If shareholders purchased at least $6,000 of Common Stock, their Series A Preferred Stock converted into Series A-1 which is guaranteed to convert into shares of Common Stock at the same price as the IPO price, and if shareholders purchase a pro-rated amount of Common Stock their Series A Preferred Stock converts into Series A-2 Preferred Stock which converts into shares of Common Stock at a discount of 10% to the IPO price.
F-23
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 7 EQUITY (CONTINUED)
(B) SERIES B PREFERRED
There are also 6,000,000 shares of Series B Preferred Stock (“Series B”) designated at a par value of $0.01 per share. The Series B can be converted into shares of Common Stock upon listing of the Company on Nasdaq. In the event of any liquidation or winding up of the Company, the holders of the Series B shall be entitled to receive in preference to the holders of Common Shares and Series A, a per share amount equal to two times (2 X) their original purchase price plus any declared but unpaid dividends (the Liquidation Preference). The holders of Class B Preferred Stock shall be entitled to receive out of any funds of the Corporation at a time legally available for the declaration of dividends, dividends at a cumulative rate of 10% under such terms and conditions as the Board shall prescribe, provided, however, that in the event dividends shall be declared, dividends on issued and outstanding Class B Preferred Stock shall be payable before any dividends shall be declared or paid upon or set apart for the Common Stock. At March 31, 2021, the Company had sold 3,628,906 shares of Series B Preferred (“Series B”) for proceeds of $2,902,500.
On March 2, 2021, in preparation for an intended future IPO, the Company made an offer to all its preferred shareholders to protect them against the possibility that the IPO price might be less than their preferred stock price. Accordingly the Series B Preferred Stock was sub-designated into Series B, Series B-1 and Series B-2 and shareholders were granted an opportunity to purchase shares of Common Stock at $0.40 per share. If shareholders purchased at least $6,000 of common stock, their Series B Preferred Stock converted into Series B-1 which is guaranteed to convert into shares of Common Stock at the same price as the IPO price, and if shareholders purchase a pro-rated amount of common stock their Series B Preferred Stock converts into Series B-2 Preferred Stock which converts into shares of Common Stock at a discount of 10% to the IPO price.
(C) COMMON STOCK
The Company has authorized 40,000,000 shares of common stock at a par value of $0.01 per share. As of March 31, 2021, and March 31, 2020 there were 9,983,082 and 5,836,832 shares of the Company’s common stock issued and outstanding, respectively. During the course of the year the Company issued the following Common shares.
|
# of Common shares
|
March 31, 2020
|
5,836,832
|
Exercise of warrants
|
3,905,000
|
Exercise of options
|
241,250
|
March 31, 2021
|
9,983,082
|
During the year ended March 31, 2021, the Company offered preferred shareholders an opportunity to adjust the conversion price of their Preferred Stock such that the price would be equal to or better than the price offered for shares of Common Stock in a future IPO, depending on the number of common shares subscribed as described in sections A and B above. A total of 2,978,611 shares of Common Stock were subscribed under this program for a total consideration of $1,191,442 which was accrued as stock subscription liability at March 31, 2021, pending final closing of the round which occurred in April 2021 (see Note 9).
(D) STOCK OPTIONS
In March 2019, the majority of the shareholders of the Company approved the introduction of the Kyto Technology and Life Science 2019 Stock Option and Incentive Plan (“Plan”), and reserved 2 million shares for issuance to directors, officers, consultants and advisors.
In December 2020, the majority of the shareholders of the Company approved the introduction of the Kyto Technology and Life Science 2020 Stock Option and Incentive Plan (“Plan”), and reserved 2 million shares for issuance to directors, officers, consultants and advisors.
During the years ended March 31, 2021 and March 31, 2020, the Company issued, respectively, a total of 1,505,500 and 1,370,000 non-qualified stock options to consultants, directors and advisors vesting over terms from immediate through two years. The Company had one employee for the last three months of the year ended March 31, 2021.
F-24
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 7 EQUITY (CONTINUED)
|
Number of
options granted
|
|
Weighted
average
exercise
price
|
|
Weighted
average
remaining
life years
|
Outstanding March 31, 2019
|
-
|
$
|
-
|
|
-
|
Granted
|
1,370,000
|
$
|
0.03
|
|
2.00
|
Exercised
|
-
|
$
|
-
|
|
-
|
Cancelled
|
-
|
$
|
-
|
|
-
|
Outstanding March 31, 2020
|
1,370,000
|
$
|
0.03
|
|
1.40
|
Granted
|
1,505,500
|
$
|
0.06
|
|
1.42
|
Exercised
|
(241,250)
|
$
|
0.04
|
|
-
|
Cancelled
|
-
|
$
|
-
|
|
-
|
Outstanding March 31, 2021
|
2,634,250
|
$
|
0.05
|
|
0.90
|
|
|
|
|
|
|
Exercisable March 31, 2021
|
1,505,853
|
$
|
0.04
|
|
0.51
|
In connection with the grant of stock options the Company recognises the value of the related option expense using the Black Scholes model, with appropriate assumptions for option life, stock value, risk free interest rate, volatility, and cancellations. The assumptions used for options granted in the years ended March 31, 2021 and 2020 were as follows:
|
|
March 31,
2021
|
|
March 31,
2020
|
Stock Price at grant date
|
$
|
$0.033 - $ 0.078
|
$
|
0.033
|
Exercise Price
|
$
|
$0.033 - $ 0.078
|
$
|
0.033
|
Term in Years
|
|
0 - 2.00
|
|
2.32
|
Volatility assumed
|
|
71% - 196%
|
|
71%
|
Annual dividend rate
|
|
0.0%
|
|
0.0%
|
Risk free discount rate
|
|
0.12% - 2.0%
|
|
2.00%
|
The compensation expense calculated at time of grant is amortised over the vesting period for the options granted. During the year ended March 31, 2021 and March 31, 2020, the Company amortised $23,774 and $7,277, respectively, as option expense.
(E) WARRANTS
In conjunction with the sale of Series A Preferred stock Units, the Company issued 4,200,000 warrants to purchase common stock at a price of $1.20 per share for a period of three years. The Company values the warrants using the Black Scholes model, with appropriate assumptions for warrant life, stock value, risk free interest rate, and volatility.
On October 1, 2020, the Company approved a limited 30 day term offer to Series A shareholders under which Series A warrants could be exercised at $0.40 per share instead of $1.20, and each warrant would convert to 1.5 shares of common stock. As a result of this offer, 2,603,333 warrants were exercised for the purchase of 3,905,000 shares of Common Stock, resulting in net proceeds of $1,562,000.
F-25
KYTO TECHNOLOGY AND LIFE SCIENCE, INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2021
NOTE 7 EQUITY (CONTINUED)
|
Number of
warrants
|
|
Weighted
average
exercise
price
|
|
Weighted
average
remaining life
in years
|
Outstanding March 31, 2019
|
2,612,500
|
$
|
1.20
|
|
2.4
|
Granted
|
1,587,500
|
|
1.20
|
|
3.0
|
Exercised
|
-
|
|
-
|
|
-
|
Cancelled
|
-
|
|
-
|
|
-
|
Outstanding March 31, 2020
|
4,200,000
|
$
|
1.20
|
|
2.9
|
Granted
|
-
|
|
-
|
|
-
|
Exercised
|
(2,603,333)
|
|
0.60
|
|
-
|
Cancelled
|
-
|
|
-
|
|
-
|
Outstanding March 31, 2021
|
1,596,667
|
$
|
1.20
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable March 31, 2021
|
1,596,667
|
$
|
1.20
|
|
1.4
|
The Series A Preferred stock and warrants were sold as a combined investment unit at a fixed price of $0.80 per unit. The Company did not bifurcate the value of Series A Preferred and warrants as the fair value of the warrant was determined to be de minimis.. At March 31, 2021, and March 31, 2020 the fair value of the warrants was de minimis.
NOTE 8 FINANCIAL HIGHLIGHTS
Per share data (a)
|
|
|
|
|
|
|
March 31,
2021
|
|
March 31,
2020
|
Net asset value
|
$
|
1.03
|
$
|
0.46
|
Net increase (decrease) in net assets
|
$
|
0.06
|
$
|
(0.13)
|
Net unrealized gain (loss) on investments
|
$
|
0.18
|
$
|
(0.01)
|
|
|
|
|
|
Ratios and Supplemental Data
|
|
|
|
|
Net assets, end of period
|
$
|
6,993,163
|
$
|
2,667,611
|
|
|
|
|
|
Weighted average common shares outstanding, end of period
|
|
6,808,684
|
|
5,836,832
|
|
|
|
|
|
Total operating expenses/net assets
|
|
11.0%
|
|
29.5%
|
|
|
|
|
|
Net increase (decrease) in net assets
|
|
6.1%
|
|
-29.0%
|
|
|
|
|
|
Total return
|
|
1.2%
|
|
-2.2%
|
|
|
|
|
|
(a) Per share data is based on the number of common shares outstanding at the end of the period.
|
NOTE 9 SUBSEQUENT EVENTS
Since March 31, 2021, the Company has raised $870,875 from the sale of 1,088,594 shares of Series B Preferred stock through private placements.
Since March 31, 2021, upon the closing of the Series A and Series B Preferred stock amendment offering, the Company has converted $1,191,442 of stock subscription liability into shares of common stock, and raised $122,876 from additional sales of common stock.
Since March 31, 2021, the Company has invested $1,490,600 in nineteen additional investment opportunities.
F-26