Notes
to the Consolidated Financial Statements
December
31, 2019
NOTE
1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Organization
and Description of Business
GEX
Management, Inc. (“GEX”, the “Company”, “we”, “our”, “us”) is a professional
business services company that was originally formed in 2004 as Group Excellence Management, LLC d/b/a MyEasyHQ. The Company converted
from a limited liability company to a C corporation in March 2016, and changed its name to GEX Management, Inc. in April 2016.
Material
Definitive Agreements
No
Material Agreements have been executed by the Company during this reporting period.
Basis
of Presentation
Our
financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”),
as well as the applicable regulations and rules of the Securities and Exchange Commission (“SEC”). This requires management
to make estimates and assumptions that affect the amounts reported in the financial statements and their accompanying notes. The actual
results could differ from those estimates
Principles
of Consolidation
The
consolidated financial statements include the accounts of GEX Management, Inc. and its wholly owned subsidiaries. Intercompany accounts
and transactions have been eliminated in consolidation.
There
have been no significant changes to our accounting policies that have a material impact on our financial statements and accompanying
notes.
Use
of Estimates
The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Cash
and Cash Equivalents
Cash
and cash equivalents include cash in banks and short-term investments with original maturities of three months or less.
Accounts
Receivable
Accounts
receivable consists of accrued services and consulting receivables due from customers and are unsecured. The receivables are generally
due within 30 to 45 days after the date of the invoice. Accounts receivable is carried at their face amount, less an allowance for doubtful
accounts. GEX’s policy is not to charge interest on receivables after the invoice becomes past due. Write-offs are recorded at
the time when a customer receivable is deemed uncollectible.
Property
and Equipment
Property
and Equipment, net is carried at the cost of purchase, acquisition or construction, and is depreciated over the estimated useful lives
of the assets. Assets acquired in a business combination are stated at estimated fair value. Costs associated with repair and maintenance
are expensed as they are incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency
of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Depreciation and amortization
are provided using the straight-line methods over the useful lives of the assets as follows:
|
|
Useful
Life
|
Buildings
|
|
30
Years
|
Office
Furniture & Equipment
|
|
5
Years
|
Impairment
of Long-Lived Assets
The
Company records an impairment of long-lived assets used in operations, other than goodwill, and its equity method investments when events
or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets
over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced
to fair value, which is typically calculated using the discounted cash flow method.
Revenue
Recognition
Effective
on January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers
(Topic 606). ASU No. 2014-09 outlines a single, comprehensive revenue recognition model for revenue derived from contracts with customers
and it supersedes the prior revenue recognition guidance, including prior guidance that is industry-specific. Under ASU No. 2014-09,
an entity recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration
for which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU No. 2014-09 using the modified
retrospective method, which applies to only the most current period presented in the financial statements. There were no significant
changes to the Company’s existing revenue recognition policies as a result of adopting ASU 2014-09.
GEX
enters into contracts with its clients for professional services. GEX’s contract stipulates the rate and price charged to each
client. GEX’s contracts for these services are generally cancellable at any time by either party with 30-days’ written notice.
GEX fulfills its performance obligations each month, and the contracts generally have a term of one year with an automatic renewal after
12 months. The duration between invoicing and when GEX completes its contractual, performance obligations are satisfied is not significant.
For staffing and professional services payment is generally due 30 days after the invoice is sent to the client. GEX does not have significant
financing components or significant payment terms.
Staffing
Services and Professional Services
Staffing
services revenue is derived from supplying temporary staff to clients. Temporary staff generally consists of temporary workers working
under a contract for a fixed period of time, or on a specific client project. The temporary staff includes both GEX employees and third-parties
contracted by GEX.
Temporary
staff are provided to clients through a Staffing Service Agreement (‘SSA’) involving a specified service that the temporary
staff will provide to the client. When GEX is the principal or primary obligor for the temporary staff, GEX records the gross amount
of the revenue and expense from the SSA.
GEX
is generally the primary obligor when GEX is responsible for the fulfillment of services under the SSA, even if the temporary staff are
not employees of GEX. This typically occurs when GEX contracts third-parties to fulfill all or part of the SSA with the client, but GEX
remains the holder of the credit risk associated with the SSA, and GEX has total discretion in establishing the pricing under the SSA.
All
other Professional Services revenues are recognized in the period the services are performed as stipulated in the client’s Outsourcing
Agreement, when the client is invoiced, and collectability is reasonably assured. Revenue recognition for arrangements with multiple
deliverables constituting a single unit of accounting is recognized generally over the greater of the term of the arrangement or the
expected period of performance.
Income
Taxes
The
Company uses the liability method in the computation of income tax expense and the current and deferred income taxes payable. A valuation
allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Fair
Value Measurements
ASC
Topic 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and requires
certain disclosures about fair value measurements. In general, fair value of financial instruments is based upon quoted market prices,
where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily
use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded
at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s credit worthiness,
among other things, as well as unobservable parameters.
Earnings
Per Share
Earnings
per share are calculated in accordance with ASC 260 “Earnings per Share”. Basic income (loss) per share is computed by dividing
the period income (loss) available to common shareholders by the weighted average number of common shares outstanding. Diluted earnings
(loss) per share is computed by dividing the income (loss) available to common share holders by the weighted average number of common
shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued.
For purposes of this calculation, common stock dividends, warrants and options to acquire common stock, would be considered common stock
equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive
to the net loss per share.
Earnings
per share information for the twelve months ended December 31, 2020 has been retroactively adjusted to reflect the stock split that occurred
in December 2017 and the reverse stock split that occurred in May 2020.
Reclassifications
Certain
prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications have had no effect on the
financial position as of December 31, 2020 or operations or cash flows for the periods ended December 31 2020.
Going
Concern
To
date, the Company has funded its operations primarily through public and private offerings of common stock, our line of credit, short-
term discounted and convertible notes payable. The Company has identified several potential financing sources in order to raise the capital
necessary to fund operations through December 31, 2021.
In
addition to the aforementioned current sources of capital that will provide additional short-term liquidity, the Company is currently
exploring various other alternatives including debt and equity financing vehicles, strategic partnerships, government programs that may
be available to the Company, as well as trying to generate additional sales and increase margins. However, at this time the Company has
no commitments to obtain any additional funds, and there can be no assurance such funds will be available on acceptable terms or at all.
If the Company is unable to obtain additional funding and improve its operations, the Company’s financial condition and results
of operations may be materially adversely affected and the Company may not be able to continue operations, which raises substantial doubt
about its ability to continue as a going concern. Additionally, even if the Company raises sufficient capital through additional equity
or debt financing, strategic alternatives or otherwise, there can be no assurances that the revenue or capital infusion will be sufficient
to enable it to develop its business to a level where it will be profitable or generate positive cash flow. If the Company raises additional
funds through the issuance of equity or convertible debt securities, the percentage ownership of our stockholders could be significantly
diluted, and these newly issued securities may have rights, preferences or privileges senior to those of existing stockholders. If the
Company incurs additional debt, a substantial portion of its operating cash flow may be dedicated to the payment of principal and interest
on such indebtedness, thus limiting funds available for business activities. The terms of any debt securities issued could also impose
significant restrictions on the Company’s operations. Broad market and industry factors may seriously harm the market price of
our common stock, regardless of our operating performance, and may adversely impact our ability to raise additional funds. Similarly,
if the Company’s common stock is delisted from the public exchange markets, it may limit its ability to raise additional funds.
The
consolidated financial statements for the twelve months ended December 31, 2020 were prepared on the basis of a going concern which contemplates
that the Company will be able to realize assets and discharge liabilities in the normal course of business. Accordingly, they do not
give effect to adjustments that would be necessary should the Company be required to liquidate its assets. The ability of the Company
to meet its total liabilities and to continue as a going concern is dependent upon the availability of future funding,
continued growth in billings and sales contracts, and the Company’s ability to profitably meet its after-sale service commitments
with its existing customers. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.
In
addition, at this time we cannot predict the impact of COVID-19 on our ability to obtain financing necessary for the Company to fund
its working capital requirements. Also, it may hamper our efforts to comply with our filing obligations with the Securities and Exchange
Commission.
NOTE
2. OTHER CURRENT ASSETS
At
December 31, 2020 and December 31, 2019, Other Current Assets were as follows:
|
|
December 31,
2020
|
|
|
December 31,
2019
|
|
Other Current Assets:
|
|
|
|
|
|
|
|
|
Prepaids and Debt Discounts
|
|
$
|
(200
|
)
|
|
$
|
967,152
|
|
Other Current Assets
|
|
|
107,489
|
|
|
|
26,985
|
|
Total Other Current Assets
|
|
$
|
107,289
|
|
|
$
|
994,137
|
|
NOTE
3. STOCKHOLDERS’ EQUITY
General
The
Company filed Form S-1 with the Securities & Exchange Commission and it was declared effective on November 14, 2016 under which the
Company sold 188,059 shares for $282,089 in the first quarter under this registration statement. The Company effected a 4 for 3 stock
split in December 2017. All transaction have been adjusted to reflect this split.
The
Company issued 47,781 shares for services for a total of $74,750 during 2017.
On
May 15, 2017, GEX entered into a Conversion Agreement with two consultants that had a $45,000 balance with the Company. In accordance
with the terms and conditions of the Conversion Agreement, GEX issued a total of 40,000 shares of the Company’s common stock, at
a cost basis of $1.125 per share. The two consultants were issued 20,000 shares each of the total 40,000 shares issued by the Company.
On
June 7, 2017, GEX entered into a Debt Conversion Agreement with the Company that purchased the Line of Credit Promissory Note from the
Company’s Chief Executive Officer. Under the terms and conditions of the Debt Conversion Agreement GEX issued 153,664 shares of
its common stock, for the extinguishment of $345,745 in debt and accrued interest owed by GEX under the Line of Credit as of the date
of the Debt Conversion Agreement. The shares were valued at $1.125 per share. GEX recorded a gain on extinguishment of debt in the amount
of $172,872.
On
June 20, 2017, GEX entered into a Stock Purchase Agreement (“SPA”) with a third-party investor. Under the terms and conditions
of the SPA, GEX issued 19,003 shares of its common stock, for a total of $120,000.
On
June 20, 2017, GEX entered into an Advisory Agreement with a third-party advisory firm. Under the terms and conditions of the Advisory
Agreement, GEX paid a non-refundable retainer in the amount of $24,750 through the issuance of 3,334 shares of the Company’s common
stock.
On
July 20, 2017, GEX entered into a Stock Purchase Agreement with a third-party investor. Under the terms and conditions of the SPA, GEX
issued 12,668 shares of its common stock restricted pursuant to Rule 144 of the Securities Act of 1933 for a total of $80,000.
On
September 20, 2017, GEX entered into Stock Purchase Agreements with two advisory board members. Under the terms and conditions of the
SPA’s, GEX issued 6,564 shares of its common stock, for a total of $32,000.
On
October 18, 2017, GEX entered into a Stock Purchase Agreements with one advisory board member. Under the terms and conditions of the
SPA, GEX issued 2,667 shares of its common stock restricted pursuant to Rule 144 of the Securities Act of 1933, as amended, for a total
of $13,000.
On
October 31, 2017 GEX entered into a Lease Agreement for office space in Fayetteville, Arkansas for 1,067 shares of its common stock,
restricted pursuant to Rule 144 of the Securities Act of 1933, as amended.
On
December 29, 2017 GEX entered into a SPA with a shareholder. Under the terms of the SPA, GEX issued 75,000 shares of its common stock
for a total of $300,000.
On
December 29, 2017 the Company acquired a 12,223 square foot, multi-use office building in Lowell, Arkansas through the purchase of 100%
of the member interest in AMAST Consulting, LLC for 200,000 shares of the Company’s common stock and assumption of the outstanding
mortgage.
During
the twelve months ended December 31, 2018, the Company issued the following unregistered securities. The issuance of securities in connection
with these transactions was exempt from registration under Section 4(a)(2) and/or Rule 506 of Regulation D as promulgated by the Securities
and Exchange Commission (the “SEC”) under of the Securities Act of 1933, as amended (the Securities Act”), as transactions
by an issuer not involving a public offering.
During
the twelve-month periods ended December 31, 2018, 2019 and 2020 respectively, the Company issued the following unregistered securities.
The issuance of securities in connection with these transactions was exempt from registration under Section 4(a)(2) and/or Rule 506 of
Regulation D as promulgated by the Securities and Exchange Commission (the “SEC”) under of the Securities Act of 1933, as
amended (the Securities Act”), as transactions by an issuer not involving a public offering.
On
July 9, 2018, the Company issued 58,500 shares of common stock at no cost basis for consulting services. On July 19, 2018, the Company
issued 206,500 shares of common stock at no cost basis for consulting services. On July 25, 2018, the Company issued 12,668 shares of
common stock at no cost basis for consulting services. On July 30, 2018, the Company issued 100,000 shares of common stock at no cost
basis for consulting services. On August 2, 2018, the Company issued 207,339 shares of common stock at no cost basis in connection with
issuance of a convertible note payable as a commitment fee. On August 7, 2018, the Company issued 50,000 shares of common stock at no
cost basis for consulting services. On August 27, 2018, the Company issued 15,000 shares of common stock at no cost basis for consulting
services. On September 10, 2018, the Company issued 220,000 shares of common stock at no cost basis for consulting services. On September
14, 2018, the Company issued 50,000 shares of common stock at no cost basis for consulting services. On September 25, 2018, the Company
issued 1,436 shares of common stock at no cost basis for consulting services. On September 26, 2018, the Company issued 15,000,000 shares
of common stock at no cost basis related to a real property purchase acquisition transaction. On January 16, 2019, the Company issued
60,000 shares of common stock related to a convertible note conversion. On January 21, 2019, the Company issued 538,095 shares of common
stock related to a convertible note conversion. On January 29, 2019, the Company issued 120,000 shares of common stock related to a convertible
note conversion. On February 13, 2019, the Company issued 1,000,000 shares of common stock related to a convertible note conversion.
On February 13, 2019, the Company issued 400,000 shares of common stock related to a convertible note conversion. On February 14, 2019,
the Company issued 400,000 shares of common stock related to a convertible note conversion. On February 19, 2019, the Company issued
670,000 shares of common stock related to a convertible note conversion. On February 20, 2019, the Company issued 1,000,000 shares of
common stock related to a convertible note conversion. On February 20, 2019, the Company issued 1,000,000 shares of common stock related
to a convertible note conversion. On February 21, 2019, the Company issued 847,458 shares of common stock related to a convertible note
conversion. On February 22, 2019, the Company issued 677,966 shares of common stock related to a convertible note conversion. On February
22, 2019, the Company issued 1,129,944 shares of common stock related to a convertible note conversion. On February 22, 2019, the Company
issued 300,000 shares of common stock related to a convertible note conversion. On February 25, 2019, the Company issued 2,300,000 shares
of common stock related to a convertible note conversion. On February 25, 2019, the Company issued 2,000,000 shares of common stock related
to a convertible note conversion. On February 26, 2019, the Company issued 1,140,000 shares of common stock related to a convertible
note conversion. On February 26, 2019, the Company issued 1,250,000 shares of common stock related to a convertible note conversion.
On February 27, 2019, the Company issued 2,535,211 shares of common stock related to a convertible note conversion. On February 28, 2019,
the Company issued 3,400,000 shares of common stock related to a convertible note conversion. On February 28, 2019, the Company issued
2,900,000 shares of common stock related to a convertible note conversion. In March 2019, the Company issued a total of 253,428,115 shares
of common stock related to a convertible note conversion. In April 2019, the Company issued a total of 131,889,069 shares of common stock
related to convertible note conversions. In May 2019, the Company issued a total of 1,060,050,879 shares of common stock related to convertible
note conversions. In June 2019, the Company issued a total of 1,598,790,735 shares of common stock related to convertible note conversions.
In July 2019, the Company issued a total of 1,865,042,736 shares of common stock related to convertible note conversions. In August 2019,
the Company issued a total of 913,654,084 shares of common stock related to convertible note conversions. On September 21, 2020, the
Company issued 30,409 shares of common stock related to a convertible note conversion. On September 23, 2020, the Company issued 31,872
shares of common stock related to a convertible note conversion. On September 24, 2020, the Company issued 336,134 shares of common stock
related to a convertible note conversion. On September 25, 2020, the Company issued 39,085 shares of common stock related to a convertible
note conversion. On September 29, 2020, the Company issued 57,808 shares of common stock related to a convertible note conversion. On
October 6, 2020, the Company issued 60,693 shares of common stock related to a convertible note conversion. On October 16, 2020, the
Company issued 51,170 shares of common stock related to a convertible note conversion. On November 2, 2020, the Company issued 66,294
shares of common stock related to a convertible note conversion. On December 3, 2020, the Company issued 69,583 shares of common stock
related to a convertible note conversion. On December 8, 2020, the Company issued 72,860 shares of common stock related to a convertible
note conversion. On December 10, 2020, the Company issued 76,691 shares of common stock related to a convertible note conversion. On
December 10, 2020, the Company issued 72,860 shares of common stock related to a convertible note conversion. On December 14, 2020, the
Company issued 72,700 shares of common stock related to a convertible note conversion. On December 15, 2020, the Company issued 84,153
shares of common stock related to a convertible note conversion. On December 17, 2020, the Company issued 81,481 shares of common stock
related to a convertible note conversion. On December 21, 2020, the Company issued 84,153 shares of common stock related to a convertible
note conversion. On December 15, 2020, the Company issued 100,636 shares of common stock related to a convertible note conversion. On
December 24, 2020, the Company issued 105,658 shares of common stock related to a convertible note conversion. On December 24, 2020,
the Company issued 209,643 shares of common stock related to a convertible note conversion. On December 28, 2020, the Company issued
81,633 shares of common stock related to a convertible note conversion. On December 29, 2020, the Company issued 240,884 shares of common
stock related to a convertible note conversion. On December 30, 2020, the Company issued 272,828 shares of common stock related to a
convertible note conversion. On December 31, 2020, the Company issued 121,391 shares of common stock related to a convertible note conversion.
Effective
February 19, 2019, the Board of Directors of the Company approved the authorization of eight hundred thousand (800,000) shares of Series
A1 Voting Preferred Stock (the “Series A1 Preferred Stock”) and approved the issuance to Srikumar Vanamali, the Corporation’s
Interim CEO and Executive Director, of four hundred thousand (400,000) shares of this Series A1 Preferred Stock and approved the issuance
to Shaheed Bailey, the Corporation’s Interim Chief Investment Officer and Director, of four hundred thousand (400,000) shares of
this Series A1 Preferred Stock. As a result of the issuance of the Series A1 Preferred Stock Shares to Mr. Srikumar Vanamali and Mr.
Shaheed Bailey, Mr. Srikumar Vanamali and Mr. Shaheed Bailey obtained voting rights over the Company’s outstanding voting stock
on February 19, 2019, which provide them combined the right to vote up to 51% of the total voting shares able to vote on any and all
shareholder matters. As a result, Mr. Srikumar Vanamali and Mr. Shaheed Bailey will exercise majority control in determining the outcome
of all corporate transactions or other matters, including the election of Directors, mergers, consolidations, the sale of all or substantially
all of our assets, and also the power to prevent or cause a change in control. In the event Mr. Srikumar Vanamali and Mr. Shaheed Bailey
are no longer acting as Officers and Directors of the Board of Directors of the Corporation, the shares of Series A1 Preferred Stock
shall automatically, without any action on the part of any party, or the Corporation, be deemed cancelled in their entirety.
NOTE
4. NOTES PAYABLE
On
April 26, 2018, the Company entered into two Securities Purchase Agreements, pursuant to which the Company issued Convertible Promissory
Notes (“the Notes”) with principal amounts totaling up to $1,000,000, bearing interest at 10% per annum. The total amounts
of the Notes that can be funded (consideration that can be loaned to the Company) is up to $887,500, after discounts of $112,500 prorated
over the term of the Notes. Amounts borrowed by the Company mature in twelve months after the date of funding and can be prepaid up to
six months after issuance subject to prepayment penalties and approval by the Note holders. Any amounts outstanding on the Notes can
be converted into Common Stock at a conversion price of $2.50 per share for the first six months and at a discount of up to 50% thereafter
to the then current market value of the Company’s stock commencing six months after issuance. Conversion is at the sole discretion
of the holders of the Notes. In May 2018, the Company borrowed $200,000 under the Notes, and received $175,000 after giving effect to
discounts of 10% for each note and origination fees. The Company incurred a total of $5,000 related to origination fees on the Notes.
Additionally, the Company issued 50,000 warrant shares for debt issuance costs at an exercise price of $4.00 per share. The warrants
are exercisable for five years and had a fair market value of $31,852 on the date of issuance. The Notes bear interest at 10% per annum.
On April 26, 2018, the Company entered into a convertible note payable for $146,681 bearing interest at 10% per annum. All principal
and interest is due on April 26, 2019.
On
April 26, 2018, the Company entered into a convertible note payable for $146,681 bearing interest at 10% per annum. All principal and
interest is due on April 26, 2019.
On
August 1, 2018, the Company entered into a convertible note payable for $226,000 bearing interest at 12% per annum. All principal and
interest is due on January 27, 2019.
On
August 8, 2018, the Company entered into a convertible note payable for $85,000 bearing interest at 10% per annum. All principal and
interest is due on August 8, 2019.
On
August 14, 2018, the Company entered into a convertible note payable for $250,000 bearing interest at 10% per annum. All principal and
interest is due on May 6, 2019.
On
August 24, 2018, the Company entered into a convertible note payable for $85,000 bearing interest at 10% per annum. All principal and
interest is due on August 24, 2019.
On August 29, 2018, the Company entered into a
convertible note payable for $112,750 bearing interest at 10% per annum. All principal and interest is due on August 29, 2019.
On
January 18 2019, the Company entered into a convertible note payable for $226,000 bearing interest at 12% per annum. All principal and
interest is due on July 18, 2019.
On
February 15, 2019, the Company entered into a convertible note payable for $43,000 bearing interest at 10% per annum. All principal and
interest is due on February 15, 2020.
On
April 16, 2019, the Company entered into a convertible note payable for $38,000 bearing interest at 10% per annum. All principal and
interest is due on April 16, 2020.
On March 25, 2019, the Company entered into a
convertible note payable for $50,000 bearing interest at 12% per annum. All principal and interest is due on March 25, 2020.
On September 27, 2019, the Company entered into
a convertible note payable for $45,000 bearing interest at 10% per annum. All principal and interest is due on March 27, 2020.
On October 12, 2019, the Company entered into
a convertible note payable for $100,000 bearing interest at 10% per annum. All principal and interest is due on October 12, 2020.
NOTE
5. ACCOUNTS RECEIVABLE AND CONCENTRATION OF CREDIT RISK
As of December 31, 2020, the company had
$211,222 outstanding accounts receivable balance with its customers. As of December 31, 2019, the company had $7,467
outstanding accounts receivable balance with its customers.
NOTE
6. PROPERTY AND EQUIPMENT
The
Company had the following property and equipment as of December 31, 2020 and December 31, 2019:
|
|
Dec
31, 2020
|
|
|
Dec
31, 2019
|
|
Land
|
|
$
|
-
|
|
|
$
|
-
|
|
Buildings
|
|
|
-
|
|
|
|
-
|
|
Office
Equipment
|
|
|
-
|
|
|
|
7,435
|
|
Total
Fixed Assets
|
|
|
-
|
|
|
|
7,435
|
|
Accumulated
Depreciation
|
|
|
-
|
|
|
|
-
|
)
|
Property
and Equipment, net
|
|
$
|
-
|
|
|
$
|
7,435
|
|
NOTE
7. RELATED PARTY TRANSACTIONS
Policy
on Related Party Transactions
The
Company has a formal, written policy that includes procedures intended to ensure compliance with the related party provisions in common
practice for public companies. For purposes of the policy, a “related party transaction” is a transaction in which the Company
participates and in which a related party (including all of GEX’s directors and executive officers) has a direct or indirect material
interest. Any transaction exceeding the 1% threshold, and any transaction involving consulting, financial advisory, legal or accounting
services that could impair a director’s independence, must be approved by the Board of Directors. Any related party transaction
in which an executive officer or a Director has a personal interest, must be approved by the Board of Directors, following appropriate
disclosure of all material aspects of the transaction.
Related
Party Transactions
The
Company did not have any related party transactions during this reporting period.
NOTE
8: COMMITMENTS AND CONTINGENCIES
The
Company did not have any contingent liabilities during this reporting period.
NOTE
9. ACQUISITIONS AND DIVESTITURES
The
Company did not have any related party transactions during this reporting period.
NOTE
10. SUBSEQUENT EVENTS
On
January 4, 2021, the Company issued 299,849 shares of common stock related to a convertible note conversion. On January 5,
2021, the Company issued 157,156 shares of common stock related to a convertible note conversion. On January 5, 2021, the
Company issued 81,633 shares of common stock related to a convertible note conversion. On January 6, 2021, the Company issued
341,537 shares of common stock related to a convertible note conversion. On January 6, 2021, the Company issued 81,633 shares
of common stock related to a convertible note conversion. On January 7, 2021, the Company issued 157,100 shares of common
stock related to a convertible note conversion. On January 8, 2021, the Company issued 422,594 shares of common stock related
to a convertible note conversion.
On
January 11, 2021, the Company issued 212,990 shares of common stock related to a convertible note conversion.
On
January 12, 2021, the Company issued 485,588 shares of common stock related to a convertible note conversion.
On
January 13, 2021, the Company issued 244,615 shares of common stock related to a convertible note conversion.
On
January 15, 2021, the Company issued 281, 100 shares of common stock related to a convertible note conversion. On January 15, 2021, the
Company issued 557,727 shares of common stock related to a convertible note conversion.
On January 19, 2021, the Company issued 281,100
shares of common stock related to a convertible note conversion.
On January 20, 2021, the Company issued
280,020 shares of common stock related to a convertible note conversion.
On January 21, 2021, the Company issued
696,364 shares of common stock related to a convertible note conversion.
On January 22, 2021, the Company issued
323,002 shares of common stock related to a convertible note conversion.
On January 22, 2021, the Company issued
337,838 shares of common stock related to a convertible note conversion.
On January 22, 2021, the Company issued
340,537 shares of common stock related to a convertible note conversion.
On
April 12, 2021, the Corporation’s Board of Directors authorized the establishment and issuance of 250,000 shares a new series
of preferred stock, designated as Series B Convertible Preferred Stock, to be issued as follows: 200,000 shares to Orcrist
Consulting, LLC, 25,000 shares to KinerjayPay Corp., 12,500 shares to Draper Inc. and 12,500 shares to Carriage House Capital
Inc.