bowmo, Inc. - Quarter Report: 2020 September (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2020

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

For the transition period from __________ to __________

Commission File No.: 000-54624

CRUZANI, INC.

(Exact name of registrant as specified in its charter)

Nevada		26-4144571
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

208 East 51^st Street, #208, New York, NY 10022

(Address of principal executive offices)

(646) 893-1112

(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 and Section 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 files 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 and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 12-b2 of the Exchange Act). Yes ☐ No ☒

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock		CZNI		OTC Markets - Pink

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 17, 2020, there were 846,566,885 shares of Common Stock, par value $0.00001 per shares outstanding.

Table of Contents

PART I		1

Item 1.	Condensed Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	17

PART II		18

Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities	18
Item 4.	Mining Safety Disclosures	18
Item 5.	Other Information	18
Item 6.	Exhibits	19

	Signatures	20

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

Condensed Consolidated Balance Sheets as of September 30, 2020 (unaudited) and December 31, 2019		2

Condensed Consolidated Statements of Operations for the three months ended September 30, 2020 and 2019 (unaudited)		3

Condensed Consolidated Statements of Operations for the nine months ended September 30, 2020 and 2019 (unaudited)		4

Condensed Consolidated Statements of Stockholders’ Deficit for the nine months ended September 30, 2020 (unaudited)		5

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (unaudited)		6

Notes to Condensed Consolidated Financial Statements (unaudited)		7

Cruzani, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

	September 30, 2020			December 31, 2019
	(Unaudited)
ASSETS
Total Assets	$	-		$	-

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	316,400		$	316,400
Accrued liabilities		1,395,354			1,193,596
Accrued officer compensation		262,000			172,000
Convertible Notes, net of discounts of $83,310 and $35,547, respectively		1,770,890			1,693,848
Derivative liabilities		726,896			472,605
Loans payable		254,500			254,500
Total Current Liabilities		4,726,040			4,102,949

Total Liabilities		4,726,040			4,102,949

Commitments and Contingencies (Note 10)		-			-

STOCKHOLDERS’ DEFICIT:
Series A Preferred stock, 3,500,000 shares authorized, par value $0.01; 3,381,520 shares issued and outstanding		33,815			33,815
Series B Preferred stock, 10,000 shares authorized, par value $0.01; 5,000 shares issued and outstanding		50			50
Series C Preferred stock, 10,000,000 shares authorized, par value $0.01; 5,000,000 shares issued and outstanding		50,000			50,000
Series D Preferred stock, 125,000 shares authorized, par value $0.0001; 125,000 shares issued and outstanding		12			12
Series E Preferred stock, 500,000 shares authorized, par value $0.01; 34,985 and 34,985 shares issued and outstanding; respectively		34,985			34,985
Series E Preferred stock to be issued		166,331			140,831
Total Series E Preferred stock		201,316			175,816

Common stock 3,000,000,000 shares authorized, $0.00001 par value; 575,603,105 and 297,041,945 shares issued and outstanding, respectively at September 30, 2020 and December 31, 2019		5,756			2,970
Treasury stock, at cost – 2,917 shares		(773,500	)		(773,500	)
Additional paid in capital		76,138,167			75,958,049
Accumulated deficit		(80,381,656	)		(79,575,663	)
Total Stockholders’ Deficit		(4,726,040	)		(4,102,909	)
Total Liabilities and Stockholders’ Deficit	$	-		$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Cruzani, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations

(Unaudited)

	For the Three Months Ended September 30,
	2020			2019
Operating Expenses:
Compensation expense		30,000			30,000
Consulting fees		75,000			-
General and administrative		10,500			4,742
Professional fees		19,025			8,135
Total operating expenses		134,525			42,877

Loss from operations		(134,525	)		(42,877	)

Other Income (Expense):
Interest expense		(121,276	)		(82,754	)
Change in fair value of derivatives		(87,556	)		214,939
Total other income (expense)		(208,832	)		132,185

Income (loss) before provision for income taxes		(343,357	)		89,308
Provision for income taxes		-			-

Net Income (Loss)	$	(343,357	)	$	89,308

Basic income (loss) per share	$	(0.00	)	$	0.00
Basic and diluted weighted average shares outstanding		437,343,152			258,091,869

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Cruzani, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations

(Unaudited)

	For the Nine Months Ended September 30,
	2020			2019
Operating Expenses:
Compensation expense		90,000			90,000
Consulting fees		150,000			-
General and administrative		14,500			62,118
Professional fees		30,125			97,883
Total operating expenses		284,625			250,001

Loss from operations		(284,625	)		(250,001	)

Other Income (Expense):
Interest expense		(338,643	)		(474,972	)
Change in fair value of derivatives		(182,725	)		41,377
Loss on extinguishment of convertible notes		-			(46,250	)
Loss on receivables					(442,365	)
Loss on issuance of convertible preferred stock		-			(194,547	)
Gain on extinguishment of debt		-			492,016
Total other income (expense)		(521,368	)		(624,741	)

Income (loss) before provision for income taxes		(805,993	)		(874,742	)
Provision for income taxes		-			-

Net Income (Loss)	$	(805,993	)	$	(874,742	)

Basic income (loss) per share	$	(0.00	)	$	(0.00	)
Basic and diluted weighted average shares outstanding		319,523,971			39,978,941

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Cruzani, Inc. and Subsidiaries

Consolidated Statement of Changes in Stockholders’ Deficit

For the Nine months Ended September 30, 2019

(Unaudited)

	Series A				Series B				Series C				Series D				Series E						Series E Preferred Stock								Additional
	Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock						to be issued				Common Stock				Paid-In		Treasury			Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount			Shares		Amount		Shares		Amount		Capital		Stock			Deficit			Total
Balance December 31, 2018		3,381,520	$	33,815		5,000	$	50		5,000,000	$	50,000		125,000	$	12		53,000		$	53,000				$	140,831		73,442,239	$	734	$	75,544,112	$	(773,500	)	$	(77,988,132	)	$	(2,939,077	)
Shares issued for extinguishment of convertible debt		-		-		-		-		-		-		-		-												29,160,864		292		154,840		-						155,132
Net loss		-		-		-		-		-		-		-		-		-			-			-		-		-		-		-		-			(131,631	)		(131,631	)
Balance March 31, 2019		3,381,520		33,815		5,000		50		5,000,000		50,000		125,000		12		53,000			53,000			-		140,831		102,603,103		1,026		75,698,952		(773,500	)		(78,119,763	)		(2,915,577	)

Cash proceeds for Series E Preferred stock																		33,785			33,785					25,500														59,285
Shares issued for extinguishment of Preferred stock		-		-		-		-		-		-		-		-												66,331,384		663		135,603		-						136,266
Net loss		-		-		-		-		-		-		-		-		-			-			-		-		-		-		-		-			(832,419	)		(832,419	)
Balance June 30, 2019		3,381,520		33,815		5,000		50		5,000,000		50,000		125,000		12		86,785			86,785			-		166,331		168,934,487		1,689		75,834,555		(773,500	)		(78,952,182	)		(3,552,445	)

Shares issued for extinguishment of Preferred stock																		(51,800	)		(51,800	)						128,107,458		1,281		123,494								72,975
Net income		-		-		-		-		-		-		-		-		-			-			-		-		-		-		-		-			89,308			89,308
Balance September 30, 2019		3,381,520	$	33,815		5,000	$	50		5,000,000	$	50,000		125,000	$	12		34,985		$	34,985			-	$	166,331		297,041,945	$	2,970	$	75,958,049	$	(773,500	)	$	(78,862,874	)	$	(3,390,162	)

Cruzani, Inc. and Subsidiaries

Consolidated Statement of Changes in Stockholders’ Deficit

For the Nine months Ended September 30, 2020

(Unaudited)

	Series A				Series B				Series C				Series D				Series E				Series E Preferred Stock								Additional
	Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				to be issued				Common Stock				Paid-In		Treasury			Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Capital		Stock			Deficit			Total
Balance December 31, 2019		3,381,520	$	33,815		5,000	$	50		5,000,000	$	50,000		125,000	$	12		34,985	$	34,985			$	166,331		297,041,945	$	2,970	$	75,958,049	$	(773,500	)	$	(79,575,663	)	$	(4,102,950	)
Net loss		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-			(130,188	)		(130,188	)
Balance March 31, 2020		3,381,520		33,815		5,000		50		5,000,000		50,000		125,000		12		34,985		34,985		-		166,331		297,041,945		2,970		75,958,049		(773,500	)		(79,705,850	)		(4,233,138	)

Shares issued for extinguishment of accrued interest		-		-		-		-		-		-		-		-		-		-		-		-		73,343,869		733		31,998		-						32,732
Net loss		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-			(332,448	)		(332,448	)
Balance June 30, 2020		3,381,520	$	33,815		5,000	$	50		5,000,000	$	50,000		125,000	$	12		34,985	$	34,985		-	$	166,331		370,385,814	$	3,704	$	75,990,047	$	(773,500	)	$	(80,038,298	)	$	(4,532,854	)

Shares issued for extinguishment of accrued interest																										205,217,291		2,052		148,119								150,172
Net loss		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-			(343,357	)		(343,357	)
Balance September 30, 2020		3,381,520	$	33,815		5,000	$	50		5,000,000	$	50,000		125,000	$	12		34,985	$	34,985		-	$	166,331		575,603,105	$	5,756	$	76,138,167	$	(773,500	)	$	(80,381,656	)	$	(4,726,040	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Cruzani, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For the Nine Months Ended September 30,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	(805,993	)	$	(874,742	)
Adjustments to reconcile net income to net cash used in operating activities:
Change in fair value of derivatives		182,725			(41,377	)
Consulting notes		150,000			-
Expenses incurred on extinguishment of accrued interest		7,025			-
Extinguishment of accounts payable		(316,400	)		-
Loss on receivables		-			442,365
Loss on extinguishment of convertible debt		-			46,250
Loss on issuance of convertible preferred stock		-			194,547
Debt discount amortization		79,837			231,805
Gain on extinguishment of debt		-			(492,016	)
Changes in Operating Assets and Liabilities:
Other assets		-			(17,161	)
Accounts payable and accrued liabilities		258,806			322,750
Accrued officer compensation		90,000			74,000
Net Cash Used in Operating Activities		(37,600	)		(113,579	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Net Cash Provided by Investing Activities		-			-

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible debt		37,600			25,500
Preferred stock sold for cash		-			86,500
Net Cash Provided by Financing Activities		37,600			112,000

Net Increase (Decrease) in Cash		-			(1,579	)
Cash at Beginning of Period		-			1,579
Cash at End of Period	$	-		$	-

Cash paid during the period for:
Interest	$	-		$	-
Income taxes	$	-		$	-

Supplemental disclosure of non-cash activity:
Common stock issued for conversion of debt and accrued interest	$	32,732		$	43,899

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Cruzani, Inc. and Subsidiaries

Notes to Unaudited Consolidated Condensed Financial Statements

September 30, 2020

NOTE 1 – SUMMARY OF BUSINESS AND BASIS OF PRESENTATION

Organization and Business

Cruzani, Inc. (“Cruzani” or the “Company”) is a franchise development company that builds and represents popular franchise concepts, and other related businesses, throughout the United States as well as international markets. The Company was originally formed as a limited liability company on February 5, 1999 under the name The Powerhouse, L.L.C. pursuant to the laws of the State of Oklahoma. On November 9, 2006, Powerhouse Productions, L.L.C. filed Articles of Conversion changing the entity from a limited liability company to a corporation under the name Harcom Productions, Inc. On January 25, 2010, Articles of Merger were filed with the State of Oklahoma merging U.S. Highland, Inc., an Oklahoma corporation into Harcom Productions, Inc. and the name of the corporation was changed to US Highland, Inc. US Highland, Inc. was a recreational power sports Original Equipment Manufacturer (“OEM”), developing motorcycles, quads, single cylinder engines, and v-twin engines under its own brand and for other OEMs. During 2017, the Company exited the recreational power sports OEM and leisure activity vehicles markets.

On June 29, 2018, the Company filed Amended and Restated Articles of Incorporation with the State of Nevada to change its name to Cruzani, Inc.

On June 30, 2018, Supreme Sweets Acquisition Corp. (n/k/a Oventa, Inc.), a subsidiary of the Company, and the Company (collectively, the “Company”) entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Supreme Sweets Inc. and 2498411 Ontario, Inc., as sellers (collectively, the “Seller”), pursuant to which in exchange for CAD $200,000 and a twenty percent (20%) interest in Oventa, Inc., the Company agreed to acquire the trade secret assets of Seller upon the terms and subject to the conditions set forth in the Asset Purchase Agreement. A second closing occurred on July 31, 2018, pursuant to which the Company acquired the furniture, fixtures and equipment of Seller in exchange for CAD $100,000. Seller is engaged in the business of preparing delicious snacks, pastries and baked goods with high quality ingredients for exceptional taste, including low calorie and gluten-free alternatives. The Asset Purchase Agreement included a provision, pursuant to which the Company could unwind the transaction if certain milestones were not achieved. The milestones contemplated in the Asset Purchase Agreement were not met, and accordingly, on February 7, 2019, effective as of December 31, 2018, the Company terminated the Asset Purchase Agreement with Supreme Sweets Inc. and 2498411 Ontario, Inc, by written notice to the Seller, and the Company unwound the transaction. The $339,813 of capital injected into Oventa, Inc was written off as uncollectable as of September 30, 2020.

On September 27, 2018, the Company entered into a stock purchase agreement (the “Stock Purchase Agreement”) with Sandrea Gibson, as seller (the “Seller”), and Recipe Food Co., as the target (the “Target”), pursuant to which in exchange for up to CAD $237,000, the Company agreed to acquire 80% of the issued and outstanding stock of the Target from the Seller upon the terms and subject to the conditions set forth in the Stock Purchase Agreement. There were difficulties integrating the Target into the Company group, which forced the Company to cease injecting additional capital into the Target and recognize a loss of $102,552 for amounts that had already been loaned to the Target.

On July 8, 2019, Mr. Dickson entered into a Securities Purchase Agreement (“Purchase Agreement”) with Conrad Huss to sell 5,000,000 shares of Series C Preferred and 5,000 shares of Series B preferred Stock held by Mr. Dickson. As a result, Mr. Huss acquired the right to vote 99.06 % of the voting control of the Company. The Series B Preferred Stock is also convertible into common stock which, in the aggregate, would represent up to .01% of the outstanding common stock after the conversion. The Series B Preferred Stock is also convertible into common stock which, in the aggregate, would represent up to 99.05% of the outstanding common stock after the conversion.

On July 8, 2019, Everett Dickson, who had been the sole officer of the Company, resigned as an officer of the Company, and Conrad Huss was appointed the Interim President and Chief Executive Officer of the Company. Mr. Huss is the sole beneficial owner of 5,000,000 and 5,000 shares of Series B and C Preferred Stocks, respectively. Mr. Dickson also resigned as a director of the Company, effective on July 8th, 2019. Mr. Dickson’s resignation was not the result of any disagreement with the management of the Company.

Basis of Presentation

The accompanying unaudited interim consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These unaudited consolidated condensed financial statements should be read in conjunction with the audited financial statements and footnotes for the year ended December 31, 2019 included on the Company’s Form 10-K. The results of the nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020.

In the opinion of management, all adjustments necessary to present fairly the financial position as of September 30, 2020 and the results of operations and cash flows presented herein have been included in the financial statements. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results of operations for the full year.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Concentrations of Credit Risk

We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash.

Reclassifications

Certain reclassifications have been made to the prior year financial information to conform to the presentation used in the financial statements for the nine months ended September 30, 2020. There is no effect on the accumulated deficit as the result of these reclassifications.

Principles of Consolidation

The accompanying unaudited interim consolidated condensed financial statements include the accounts of the Company. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America. All significant intercompany transactions and balances have been eliminated.

Fair value of financial instruments

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:

Level 1:

Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2:

Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3:

Pricing inputs that are generally unobservable inputs and not corroborated by market data.

The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company’s notes payable approximates the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at September 30, 2020 and December 31, 2019.

Recently issued accounting pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

NOTE 2 – GOING CONCERN

The accompanying unaudited interim consolidated condensed financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company on a going-concern basis. The going concern basis assumes that assets are realized, and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements. The Company has incurred recurring losses from operations and has an accumulated deficit of $80,381,656. The Company’s ability to continue as a going concern depends upon its ability to obtain adequate funding to support its operations through continuing investments of debt and/or equity by qualified investors/creditors, internally generated working capital and monetization of intellectual property assets. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management is currently pursuing a business strategy which includes raising the necessary funds to finance the Company’s development and marketing efforts.

NOTE 3 – LOANS PAYABLE

The loan payable balances are as follows:

	Rate			September 30, 2020		December 31, 2019
Loan 1		1	%	$	27,000	$	27,000
Loan 2		1	%		3,000		3,000
Loan 3		8	%		64,000		64,000
Loan 4		8	%		160,500		160,500
Total				$	254,500	$	254,500

Above notes are past due as of the issuance of these financial statements.

NOTE 4 – CONVERTIBLE NOTES

During the nine months ended September 30,2020, the Company issued $187,600 of convertible debt as detailed in the table below:

The following table summarizes the convertible notes as of September 30, 2020:

Note Holder	Date		Maturity Date	Interest			Balance September 30, 2020			Balance December 31, 2019
Third party individual		7/25/13	12/31/16		12	%	$	500,000		$	500,000
Livingston Asset Management, LLC (See Note One)		2/11/16	2/11/17		24	%		40,729			68,004
GW Holdings Group, LLC		5/17/16	5/17/17		24	%		24,000			24,000
Travel Data Solutions		11/18/17	11/30/19		10	%		100,000			100,000
GW Holdings Group, LLC		3/16/18	3/15/19		24	%		36,750			36,750
Livingston Asset Management, LLC		7/19/19	3/31/20		10	%		100,000			100,000
Travel Data Solutions		1/18/2019	1/31/20		10	%		25,000			25,000
Oasis Capital, LLC		Various	Various		10	%		839,941			875,641
Livingston Asset Management, LLC		4/1/20	12/31/20		10	%		25,000			-
Livingston Asset Management, LLC		5/1/20	1/31/21		10	%		25,000			-
Livingston Asset Management, LLC		5/20/20	2/20/21		10	%		10,000			-
Livingston Asset Management, LLC		6/1/20	2/1/21		10	%		25,000			-
Livingston Asset Management, LLC		6/11/20	3/10/21		10	%		1,100			-
Livingston Asset Management, LLC		7/1/20	3/31/21		10	%		25,000			-
Livingston Asset Management, LLC		7/20/20	4/20/21		10	%		4,500			-
Livingston Asset Management, LLC		8/1/20	4/30/21		10	%		25,000			-
Livingston Asset Management, LLC		8/14/20	5/14/21		10	%		9,500			-
Livingston Asset Management, LLC		8/24/20	5/24/21		10	%		12,500			-
Livingston Asset Management, LLC		9/1/20	6/30/21		10	%		25,000			-
Total before discount								1,854,200			1,729,395
Less: debt discount								(83,310	)		(35,547	)
							$	1,770,890		$	1,693,848

Note One: On February 24, 2020, Adar Bays, Inc. the prior holder of this note sold its entire interest in the Note to Livingston Asset Management, LLC (“Livingston”). During the nine months ended September 30, 2020, Livingston converted $28,732 of accrued interest plus related expenses into approximately 73 million shares.

NOTE 5 – DERIVATIVE LIABILITIES

The embedded conversion options of the Company’s convertible debentures summarized in Note 4, and its convertible preferred Series E stock. contain conversion features that qualify for embedded derivative classification. The fair value of these liabilities is re-measured at the end of every reporting period and the change in fair value is reported in the statement of operations as a gain or loss on derivative financial instruments.

The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities:

Balance at December 31, 2019	$	472,605
Derivative liability incurred on new issuances		127,601
Derivative liability extinguished on conversions		(56,035	)
Change in fair value of derivative liability		182,725
Balance at September 30, 2020	$	726,896

The Company uses Level 3 inputs for its valuation methodology for its conversion option liabilities as their fair values were determined by using the Binomial option pricing model based on various assumptions. The model incorporates the price of a share of the Company’s common stock (as quoted on the Over the Counter Bulletin Board), volatility, risk free rate, dividend rate and estimated life. Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As, required, these are classified based on the lowest level of input that is significant to the fair value measurement.

The following table shows the assumptions used in the calculations of its derivatives:

Expected
Volatility

Risk-free

Interest Rate

Expected

Dividend Yield

Expected Life

(in years)

At December 31, 2019

291.74

2.45

0.25 – 0.50

At September 30, 2020

330.14

.62

0.25 – 0.50

NOTE 6 – WARRANTS

In connection with the issuance of the convertible note (the “Note”) with L2 Capital, LLC (“L2”) and funding of the initial tranche of $50,000 on the Note, the Company also issued a common stock purchase warrant to purchase up to 381,905 shares of the Company’s common stock pursuant to the terms therein as a commitment fee. At the time that each subsequent tranche under the Note is funded by L2 in cash, then on such funding date, the warrant shares shall immediately and automatically be increased by the quotient of 100% of the face value of the respective tranche and 110% of the VWAP of the common stock on the Trading Day (as defined in the Note) immediately prior to the funding date of the respective tranche. As of September 30, 2020, the Company had received multiple tranches for which it issued warrants to purchase shares of the Company’s common stock.

These warrants have a variable exercise price per the above and expire in five years. The aggregate fair value of the warrants, which was allocated against the debt proceeds totaled $280,438 based on the Black Scholes Merton pricing model using the following estimates: exercise price ranging from $0.001 – 0.0071, 2.80% – 2.94% risk free rate, 252.42 – 258.24% volatility and expected life of the warrants of 5 years. The fair value was credited to additional paid in capital and debited to debt discount to be amortized over the term of the loan.

Range of Exercise Prices

Number Outstanding 9/30/2020

Weighted
Average
Remaining
Contractual
Life

Weighted Average

Exercise Price

$0.001 – 0.0071

22,669,092

3.44 years

0.0011

NOTE 7 – COMMON STOCK

During the nine months ended September 30, 2020, the Company issued 278,561,160 shares of common stock as follows:

Date	Recipient	Shares issued
5-27-20	Livingston Asset Management, LLC		29,288,000
6-12-20	Trillium Partners, LP		11,936,286
6-29-20	Trillium Partners, LP		16,059,792
6-29-20	Livingston Asset Management, LLC		16,059,792
7-21-20	Trillium Partners, LP		17,545,881
7-29-20	Trillium Partners, LP		30,386,595
8-26-20	Oasis Capital, LLC		38,689,997
9-8-20	Livingston Asset Management, LLC		21,547,021
9-8-20	Trillium Partners, LP		23,703,521
9-21-20	Livingston Asset Management, LLC		21,492,859
9-28-20	Oasis Capital, LLC		51,851,417

	Total		278,561,160

NOTE 8 – PREFERRED STOCK

Series A Convertible Preferred Stock, has a par value of $0.01, may be converted at the holder’s election into shares of common stock at the conversion rate of ten shares of common stock for one share of Series A Preferred Stock. Each share is entitled to 10 votes, voting with the common stock as a single class, has liquidation rights of $2.00 per share and is not entitled to receive dividends. As of September 30, 2020, and December 31, 2019, there are 3,381,520 and 3,381,520 shares of Series A preferred stock outstanding, respectively.

Series B Convertible Preferred Stock, has a par value of $0.01, may be converted at the holder’s election into shares of common stock at the conversion rate of 4,000 shares of common stock for one share of Series B Preferred Stock. Each share is entitled to 4,000 votes, voting with the common stock as a single class, has liquidation rights of $0.01 per share and is not entitled to receive dividends. As of September 30, 2020, and December 31, 2019, there are 5,000 and 5,000 shares of Series B preferred stock outstanding, respectively.

Series C Convertible Preferred Stock, has a par value of $0.01, may be converted at the holder’s election into shares of common stock at the conversion rate of 400 shares of common stock for one share of Series C Preferred Stock. Each share is entitled to 400 votes, voting with the common stock as a single class, has liquidation rights of $0.01 per share and is entitled to receive four hundred times the dividends declared and paid with respect to each share of Common Stock. As of June 30, 20120, and December 31, 2019, there are 5,000,000 and 5,000,000 shares of Series C preferred stock outstanding, respectively.

Series D Convertible Preferred Stock, has a par value of $0.0001, may be converted at a ratio of the Stated Value plus dividends accrued but unpaid divided by the fixed conversion price of $0.0015, which conversion price is subject to adjustment. Series D is non-voting, has liquidation rights to be paid in cash, before any payment to common or junior stock, 140% of the Stated Value ($2.00) per share plus any dividends accrued but unpaid thereon and is entitled to 8% cumulative dividends. As of September 30, 2020, and December 31, 2019, there are 125,000 and 125,000 shares of Series D preferred stock outstanding, respectively.

Series E Convertible Preferred Stock, has a par value of $0.001, and a stated value of $1.00 per share, subject to adjustment. The shares of Series E Convertible Preferred Stock can convert at a conversion price that is equal to the amount that is 61% of the lowest trading price of the Company’s common stock during the 20 trading days immediately preceding such conversion. The shares of Series E Convertible Preferred Stock are subject to redemption by the Company at its option from the date of issuance until the date that is 180 days therefrom, subject to premium that ranges from 120% to 145%, increasing by 5% during each 30-day period following issuance. Series E carries a 12% cumulative dividend, which will increase to 22% upon an event of default, is non-voting, and has liquidation rights to be paid in cash, before any payment to common or junior stock.

On July 1, 2018, the Company entered into a Stock Purchase Agreement with Device Corp. (“Device”) whereby Device will purchase up to $250,000 Series E preferred stock for $1 per share. As of December 31, 2019, the Company has received $166,331 for the purchase of the Series E. Originally, these purchases were recorded as debt because the Preferred shares were not issued. As of the Balance sheet date and the date of this report, these shares have not been issued to the Purchaser.

On January 15, 2019, the Company entered into a Stock Purchase Agreement with Geneva Roth Remark Holdings, Inc. (“Geneva”) whereby Geneva will purchase 53,000 shares of Series E preferred stock for $53,000. As of September 30, 2020, and December 31, 2019, there are 34,985 and 34,985 shares of Series E preferred stock outstanding, respectively. As of September 30, 2020, the Company fair valued its Series E preferred stock derivative liability at $40,000.

NOTE 9 – RELATED PARTY TRANSACTIONS

On July 8, 2019, the Company executed an employment agreement with Conrad Huss, the new CEO. The agreement provides for a salary of $10,000 per month. As of September 30, 2020, $262,000 has been credited to accrued compensation.

NOTE 10 – COMMITMENTS AND CONTINGENCIES

During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with FASB ASC 450-20-50, Contingencies. The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals.

On September 21, 2018, Pro Drive Outboards, LLC (“Pro-Drive”) filed a lawsuit against the Company, in which Pro-Drive alleges that the Company breached a contract that Pro-Drive entered into with the Company. Pro-Drive is seeking damages in excess of $500,000. The Company has filed an answer, including the defenses of defective service of process and statute of limitations and a motion to dismiss. The judge granted a motion to dismiss, and the plaintiff’s deadline to appeal has passed, thus concluding the matter. contingent liabilities that should be reflected in the financial statements.

On February 13, 2017, Baum Glass & Jayne PLLC (“Plaintiff”) obtained a default judgment against the Company in the amount of $27,083.74. Plaintiff has not attempted enforced collection. The amount was included in accounts payable as of September 30, 2020 and December 31, 2019.

On June 20, 2018, GW Holdings Group, Inc. (“GW”) filed a lawsuit against the Company, in which GW alleges that the Company breached two Stock Purchase Agreements that GW entered into with the Company. On July 11, 2018, the Company filed a motion to dismiss which was granted by the court on March 13, 2019. A notice of appeal filed by GW is pending. As of September 30, 2020, the Company has a note payable balance of $60,750 due to GW. Since GW’s original complaint has been dismissed and no further action has been taken by the court, no additional liability has been accrued.

NOTE 11- COVID-19

The Company, like all enterprises, is currently dealing with the impact of COVID-19 on its operations and future prospects. At this time, it is difficult to estimate the ultimate impact on our operations, but we will continue to monitor circumstances and respond as appropriate.

NOTE 12 – SUBSEQUENT EVENTS

Issuance of shares of common stock

Subsequent to September 30, 2020, the Company issued 270,963,780 shares for the conversion of $92,920 of principal interest on debt, 8,322 of accrued interest and $5,125 in fees as follows below:

Creditor	Date		Shares		Principal		Accrued interest		Fees		Total
Livingston Asset Management, LLC		5-Oct-20		26,834,167	$	13,941	$	110	$	2,050	$	16,101
Oasis Capital LLC		8-Oct-20		59,641,290		26,839		-		-		26,839
Livingston Asset Management, LLC		14-Oct-20		38,869,667		19,516		449		1,025		20,990
Livingston Asset Management, LLC		29-Oct-20		69,365,086		2,275		7,111		1,025		10,411
Livingston Asset Management, LLC		13-Nov-20		76,253,571		30,350		652		1,025		32,027
Totals				270,963,780	$	92,920	$	8,322	$	5,125	$	106,367

Issuance of Convertible debt

Subsequent to September 30, 2020, the Company issued $50,000 in notes for consulting services and $5,000 for professional fee.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. For this purpose, any statements contained in this Report that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking information includes statements relating to future actions, prospective products, future performance or results of current or anticipated products, sales and marketing efforts, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, cost savings, objectives of management, and other matters. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “will,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “continue” and similar expressions or the negative of these similar terms. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking information to encourage companies to provide prospective information about themselves without fear of litigation so long as that information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information.

These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In evaluating these forward-looking statements, you should consider various factors, including the following: (a) those risks and uncertainties related to general economic conditions, (b) whether we are able to manage our planned growth efficiently and operate profitable operations, (c) whether we are able to generate sufficient revenues or obtain financing to sustain and grow our operations, (d) whether we are able to successfully fulfill our primary requirements for cash, which are explained below under “Liquidity and Capital Resources”. We assume no obligation to update forward-looking statements, except as otherwise required under the applicable federal securities laws. Unless stated otherwise, terms such as the “Company,” “Cruzani,” “we,” “us,” “our,” and similar terms shall refer to Cruzani, Inc., a Nevada corporation, and its subsidiaries.

Plan of Operations

Cruzani, Inc. is a restaurant development company that builds and represents the quick-service food industry utilizing quality menu items of value in modern dining rooms, and other related businesses, throughout the United States as well as international markets, with an emphasis on food and wellness. Our Management team picks up and coming concepts with growth potential. With little territory available for the older brands we bring fresh innovative brands to our consumers that have great potential. All of our brands are unique in nature as we focus on niche markets that are still in need of developing.

Cruzani’s core value proposition relates to the platform of services it offers to potential food entrepreneurs. Cruzani’s goal is to propel those entrepreneurs to the next level of success.

Results of Operations

Three Months Ended September 30, 2020 Compared to the Three Months Ended September 30, 2019

Compensation Expense

Compensation expense for the three months ended September 30, 2020 and September 30, 2019 was $30,000 due to Chief Executive Officer compensation.

Consulting Expense

Consulting expense for the three months ended September 30, 2020 and September 30, 2019 was $75,000 and $-0-. A consulting contract was signed effective April 1, 2020. For a fee of $25,000 per month, payable in a note, the consultant shall provide accounting and financial statement services, evaluate business acquisition opportunities and help in securing financing.

General and Administrative Expense

General and administrative expense for the three months ended September 30, 2020 was $10,500 compared to $4,742 for the three months ended September 30, 2019. Expenses in the current period were for transfer agent and SEC filing expenses. Expenses are being kept low as the Company is searching for new business opportunities.

Professional Fees

Professional fees for the three months ended September 30, 2020 were $19.025 compared to $8,135 for the three months ended September 30, 2019. Expenses incurred in the current period were predominately for the audit of the 2019 financial statements and the quarterly reviews.

Other Income/ (Expense)

Total other expense of $(208,832) for the three months ended September 30, 2020 consists of interest expense of $121,276, which includes $32,974 of debt discount amortization. Additionally, there was a loss on change in fair value of derivatives of $87,556.. Other income of $132,185 for the three months ended September 30, 2019, was comprised of: a) interest expense of $82,754, and b) gain on change in fair value of derivatives of $214,939.

Net Income (Loss)

The Company had a net loss of $343,357 for the three months ended September 30, 2020, as compared to net income of $89,308 for the three months ended September 30, 2019.

Nine Months Ended September 30, 2020 Compared to the Nine Months Ended September 30, 2019

Compensation Expense

Compensation expense for the nine months ended September 30, 2020 and September 30, 2019 was $90,000 due to Chief Executive Officer compensation.

Consulting Expense

Consulting expense for the nine months ended September 30, 2020 and September 30, 2019 was $150,000 and $-0-. A consulting contract was signed effective April 1, 2020. For a fee of $25,000 per month, payable in a note, the consultant shall provide accounting and financial statement services, evaluate business acquisition opportunities and help in securing financing.

General and Administrative Expense

General and administrative expense for the six months ended September 30, 2020 was $14,500 compared to $62,118 for the nine months ended September 30, 2019. Expenses in the current period were predominately for transfer agent and SEC filing expenses. Expenses are being kept low as the Company is searching for new business opportunities.

Professional Fees

Professional fees for the nine months ended September 30, 2020 were $30,125 compared to $97,883 for the nine months ended September 30, 2019. Expenses incurred in the current period were predominately for the audit of the 2019 financial statements and the quarterly reviews.

Other (Expense)

Total other expense of $(521,368) for the nine months ended September 30, 2020 consists of interest expense of $338,643, which includes $79,837 of debt discount amortization. Additionally, there was a loss on change in fair value of derivatives of $182,725.. Total expense of $(624,741) for the nine months ended September 30, 2019, was comprised of: a) loss on receivables of $442,365; b) interest expense of $474,972, which includes $231,805 of debt discount amortization; c), a loss on the issuance of Series E preferred stock of $194,547; and d) a loss on extinguishment of convertible notes of $46,250. These losses were offset by a gain on extinguishment of debt of $492,016 and a gain on the fair value of derivatives of $41,377.

Net Loss

The Company had a net loss of $805,993 for the nine months ended September 30, 2020, as compared to a net loss of $874,742 for the nine months ended September 30, 2019.

Quarterly Developments

Significant Developments

None

Going Concern

Critical Accounting Estimates and Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Note 1 to the Financial Statements describes the significant accounting policies and methods used in the preparation of the Financial Statements. Estimates are used for, but not limited to, contingencies and taxes. Actual results could differ materially from those estimates. The following critical accounting policies are impacted significantly by judgments, assumptions, and estimates used in the preparation of the Financial Statements.

We are subject to various loss contingencies arising in the ordinary course of business. We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss in determining loss contingencies. An estimated loss contingency is accrued when management concludes that it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether such accruals should be adjusted.

We recognize deferred tax assets (future tax benefits) and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities represent the expected future tax return consequences of those differences, which are expected to be either deductible or taxable when the assets and liabilities are recovered or settled. Future tax benefits have been fully offset by a 100% valuation allowance as management is unable to determine that it is more likely than not that this deferred tax asset will be realized.

Recent Accounting Pronouncements

Off Balance Sheet Arrangements

We have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Not applicable to smaller reporting companies.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to be effective in providing reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure. Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, they concluded that our disclosure controls and procedures were not effective for the quarterly period ended September 30, 2020.

The following aspects of the Company were noted as potential material weaknesses:

We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act which is applicable to us for the period ended September 30, 2020. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

We do not have sufficient resources in our accounting function, which restricts the Company’s ability to gather, analyze and properly review information related to financial reporting in a timely manner. As a result, as of the date of filing, we have not completed our ASC 606 implementation process and, thus, cannot disclose the quantitative impact of adoption on our financial statements. In addition, due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

We have inadequate controls to ensure that information necessary to properly record transactions is adequately communicated on a timely basis from non-financial personnel to those responsible for financial reporting. Management evaluated the impact of the lack of timely communication between non–financial personnel and financial personnel on our assessment of our reporting controls and procedures and has concluded that the control deficiency represented a material weakness.

Certain control procedures were unable to be verified due to performance not being sufficiently documented. As an example, some procedures requiring review of certain reports could not be verified due to there being no written documentation of such review. Management evaluated the impact of its failure to maintain proper documentation of the review process on its assessment of its reporting controls and procedures and has concluded deficiencies represented a material weakness.

In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.

Changes in Internal Controls

Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that no change occurred in the Company’s internal controls over financial reporting during the quarter ended September 30, 2020, that has materially affected, or is reasonably likely to materially affect, the Company’s internal controls over financial reporting.

PART II – OTHER INFORMATION

Item. 1. Legal Proceedings.

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

Item 1A. Risk Factors.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, are not required to provide the information under this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the nine months ended September 30, 2020, the Company issued 278,561,160 shares of common stock as follows:

Date	Recipient	Shares issued
5-27-20	Livingston Asset Management, LLC		29,288,000
6-12-20	Trillium Partners, LP		11,936,286
6-29-20	Trillium Partners, LP		16,059,792
6-29-20	Livingston Asset Management, LLC		16,059,792
7-21-20	Trillium Partners, LP		17,545,881
7-29-20	Trillium Partners, LP		30,386,595
8-26-20	Oasis Capital, LLC		38,689,997
9-8-20	Livingston Asset Management, LLC		21,547,021
9-8-20	Trillium Partners, LP		23,703,521
9-21-20	Livingston Asset Management, LLC		21,492,859
9-28-20	Oasis Capital, LLC		51,851,417

	Total		278,561,160

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits

Exhibit		Description
31.1		Section 302 Certification of Principal Executive Officer*
31.2		Section 302 Certification of Principal Financial and Accounting Officer*
32.1		Section 906 Certification of Principal Executive Officer*
32.2		Section 906 Certification of Principal Financial and Accounting Officer*

*	filed herewith

SIGNATURES

In accordance with 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 hereunto duly authorized.

	CRUZANI, INC.

Date: November 17, 2020	By:	Conrad Huss
	Name:	Conrad Huss
	Title:	Chief Executive Officer and Interim Chief Financial Officer
		(Principal Executive Officer)
		(Principal Financial and Accounting Officer)