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Mountain High Acquisitions Corp. – ‘10-K’ for 3/31/20 – ‘EX-101.INS’

On:  Thursday, 7/2/20, at 3:42pm ET   ·   For:  3/31/20   ·   Accession #:  1554795-20-170   ·   File #:  0-55803

Previous ‘10-K’:  ‘10-K’ on 6/25/19 for 3/31/19   ·   Latest ‘10-K’:  This Filing

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 7/02/20  Mountain High Acquisitions Corp.  10-K        3/31/20   54:2.2M                                   Sharello Corp/FA

Annual Report   —   Form 10-K   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML    334K 
 2: EX-31.1     Certification -- §302 - SOA'02                      HTML     21K 
 3: EX-31.2     Certification -- §302 - SOA'02                      HTML     21K 
 4: EX-32.1     Certification -- §906 - SOA'02                      HTML     16K 
 5: EX-32.2     Certification -- §906 - SOA'02                      HTML     17K 
12: R1          Document and Entity Information                     HTML     57K 
13: R2          Consolidated Balance Sheets                         HTML     96K 
14: R3          Consolidated Balance Sheets (Parenthetical)         HTML     35K 
15: R4          Consolidated Statement of Operations                HTML     96K 
16: R5          Consolidated Statement of Stockholders' Equity      HTML     84K 
                (Deficit)                                                        
17: R6          Consolidated Statement of Cash Flows                HTML    112K 
18: R7          Organization and Basis of Presentation              HTML     35K 
19: R8          Going Concern                                       HTML     21K 
20: R9          Summary of Significant Accounting Policies          HTML     40K 
21: R10         Note Receivable                                     HTML     23K 
22: R11         Prepaids                                            HTML     18K 
23: R12         Fixed Assets                                        HTML     27K 
24: R13         Accrued liabilities                                 HTML     21K 
25: R14         Equity                                              HTML     24K 
26: R15         Notes Payable                                       HTML     33K 
27: R16         Related Party Transactions                          HTML     25K 
28: R17         Officer and Director fees                           HTML     21K 
29: R18         Commitments and Contingencies                       HTML     20K 
30: R19         Income Taxes                                        HTML     44K 
31: R20         Subsequent Events                                   HTML     29K 
32: R21         Summary of Significant Accounting Policies          HTML     78K 
                (Policies)                                                       
33: R22         Fixed Assets (Tables)                               HTML     24K 
34: R23         Notes Payable (Tables)                              HTML     23K 
35: R24         Income Taxes (Tables)                               HTML     43K 
36: R25         Organization and Basis of Presentation (Details     HTML     21K 
                Narrative)                                                       
37: R26         Going Concern (Details Narrative)                   HTML     35K 
38: R27         Note Receivable (Details Narrative)                 HTML     25K 
39: R28         Prepaids (Details Narrative)                        HTML     19K 
40: R29         Fixed Assets - Fixed assets (Details)               HTML     29K 
41: R30         Fixed Assets (Details Narrative)                    HTML     21K 
42: R31         Accrued liabilities (Details Narrative)             HTML     21K 
43: R32         Equity (Details Narrative)                          HTML     37K 
44: R33         Notes Payable - Outstanding convertible notes       HTML     39K 
                (Details)                                                        
45: R34         Notes Payable (Details Narrative)                   HTML     28K 
46: R35         Related Party Transactions (Details Narrative)      HTML     20K 
47: R36         Officer and Director fees (Details Narrative)       HTML     19K 
48: R37         Income Taxes - Reconciliation of effective tax      HTML     27K 
                rate (Details)                                                   
49: R38         Income Taxes - Components of deferred tax assets    HTML     23K 
                (Details)                                                        
50: R39         Income Taxes - Components of deferred income taxes  HTML     60K 
                (Details)                                                        
51: R40         Income Taxes (Details Narrative)                    HTML     18K 
53: XML         IDEA XML File -- Filing Summary                      XML     89K 
52: EXCEL       IDEA Workbook of Financial Reports                  XLSX     60K 
 6: EX-101.INS  XBRL Instance -- myhi-20200331                       XML    439K 
 8: EX-101.CAL  XBRL Calculations -- myhi-20200331_cal               XML    100K 
 9: EX-101.DEF  XBRL Definitions -- myhi-20200331_def                XML    119K 
10: EX-101.LAB  XBRL Labels -- myhi-20200331_lab                     XML    483K 
11: EX-101.PRE  XBRL Presentations -- myhi-20200331_pre              XML    364K 
 7: EX-101.SCH  XBRL Schema -- myhi-20200331                         XSD     98K 
54: ZIP         XBRL Zipped Folder -- 0001554795-20-000170-xbrl      Zip     65K 


‘EX-101.INS’   —   XBRL Instance — myhi-20200331


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<p style="font: italic 16pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt; font-style: normal"><b>Note</b></font><font style="font-size: 8pt; font-style: normal"> </font><font style="font-size: 10pt; font-style: normal"><b>1 - Organization and Basis of Presentation</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Organization and Line of Business</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to January 1, 2020, the Company was in the business of providing infrastructure assets to licensed producers, processors and retailers engaged in the cannabis industry. Due to the restrictive regulatory and operational challenges the Company faced in that business it was decided to pivot away from cannabis and instead focus on opportunities in the hemp industry.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company plans to acquire assets such as equipment, real estate and operating entities engaged in hemp related activities and to repurpose its existing assets for use in hemp operations.   As discussed below, the Company has acquired a company (GPS) engaged in the formulation, manufacturing, branding, fulfillment and distribution of hemp-derived CBD products at its cGMP, FDA-registered facility in Santa Ana, California. GPS's continually expanding product offering is sold directly to consumers online as well as through wholesale partners (both online and brick and mortar stores) under its retail brand name, Zen Drops. The product offering includes tinctures, salves, gummies, transdermal patches and oral thin films.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 22, 2016 the Company completed the acquisition of Greenlife Botanix ("Greenlife") a Colorado corporation. The Company issued 10,000,000 restricted shares of its common stock to the shareholders of Greenlife in exchange for their 100% interest in Greenlife. The shares were valued at the market value on the date of issuance, $0.23, for a total consideration of $2,300,000. The amount paid for Greenlife was recorded as Goodwill due to the start up nature of Greenlife and the minimal net assets of Greenlife at the time of acquisition. Subsequent to the purchase of Greenlife the Company executed a rescission agreement with Freedom Seed and Feed, "FSF", which prevented Greenlife from becoming a fully integrated cosmetic company. Due to the rescission of FSF and the remarketing of the Greenlife product line the Company evaluated the book value of the asset and elected to impair the goodwill value of Greenlife and expensed the $2,300,000 book value in the year ended March 31, 2017.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">On</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">March 31, 2020, the Company sold its 100% interest in GreenLife to Evolution Equities Corporation, a Nevada Corporation for the sum of $1.00. At the time of the sale, GreenLife had no assets and had liabilities in the amount of $201,445. Of the liabilities that were in GreenLife, $138,945 were owed to Brent McMahon, a related party. The gain on deconsolidation </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">has been reflected as an increase in Additional Paid in Capital of $201,445 as the transaction was with a related party</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">controlled by a stockholder in the company, resulting in the effective treatment of the gain as a stockholder contribution. The company assesses its joint ventures and partnerships at inception to determine if any meet the qualifications of a variable interest entity ("VIE") in accordance with Accounting Standards Codification ("ASC") 810, "Consolidation." If a joint venture or partnership is a VIE and the company is the primary beneficiary, the joint venture or partnership is fully consolidated. Management has determined GreenLife does not meet the definition of a business under ASC 805 and is therefore not subject to VIE guidance and should remain deconsolidated after the sale date. Furthermore, the Company forgave the balance of $50,000 due from Greenlife on the transaction date, resulting in at $50,000 loss. </font><font style="font-size: 8pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">In May 2017, the Company formed MYHI-AZ</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">, an Arizona Corporation to acquire equipment to service the growing cannabis industry. In September 2017, the Company entered into a consulting agreement with D9 Manufacturing, "D9," to provide D9 customers with infrastructure equipment. Also, in September 2017, MYHI-AZ purchased 2 intermodal grow containers from D9 to be used in a grow operation in Arizona. MYHI-AZ leased the grow containers to D9 for 3 years with the right to extend the lease for an additional 2 years. The lease began August 15, 2017. The lease provided for a monthly lease rate of $20,000 a month and required advance payment for operating supplies and expenses. The monthly lease rate was recorded as Revenue and an Account Receivable while the advances were recorded as Other Receivable. The monthly lease payments were to commence on harvesting of the first crop. The containers were planted in October 2017 with an expected harvest in January 2018. The initial grow operation encountered a power failure which ultimately resulted in the loss of the crop. The loss of this crop resulted in a deferral of collection of the lease rental payments and the operating cost payments. The power failure highlighted electrical issues with the facility where the containers were being used and improvements to the containers that could be made. The container improvements and facility power requirement issue took a few months to resolve. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt"></font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Effective June 5, 2018, MYHI-AZ and D9 agreed to convert the current amount due under the operating lease, representing $150,000 in lease payments and $22,294 in operating expenses, into a $135,000 note payable, (the "Note"), with a term of 3 years and interest rate of 7% per annum, and to capitalize $35,000 for improvements to the containers. The first payment on the Note was due October 3, 2018. The Parties also agreed to terminate the current lease effective March 31, 2018 and replace it with a new lease beginning July 1, 2018 with lease payments of $5,000 per month beginning November 1, 2018. This replacement lease was terminated on March 31, 2019 as D9 was unable to successfully complete a harvest. due to the ongoing power problems and a shift in the focus of their company to extraction only. The Note however remains in full force and effect. During the three month period ended June 30, 2019, the Company decided to sell the containers to generate capital to finance its own change in focus to extraction. On August 20, 2019, the Company completed the sale of the containers for proceeds of $100,000 (see note 5).</font><font style="font-size: 8pt">  </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">On August 18, 2018, the Company entered into an Exchange Agreement (the “Exchange Agreement”) with Alchemy Capital LLC (“Alchemy”) pursuant to which Alchemy, the sole shareholder of One Lab Co (“Labco</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">”), a Nevada Corporation agreed to exchange 100% of the capital stock of Labco for 88,000,000 restricted shares of the Company (the “MYHI Shares”). The Exchange Agreement called for the issuance of 20,000,000 MYHI Shares at Closing and 68,000,000 MYHI Shares after certain equipment under order by Labco at the time (the “Equipment”) was delivered pursuant to a Lease Agreement (the “Lease”) between Labco and Workforce Labor Solutions, LLC (“the Lessee”). The Equipment consists of a state-of-the-art intermodal extraction laboratory, engineered and designed specifically for processing cannabis. The Lease calls for monthly payments of $25,000 and has a five year term commencing November 1, 2018 with an option to renew for a second five year term. As of March 31, 2020, the Lessee was in arrears on the lease. The Company has been in constant discussion with the Lessee regarding this delinquency but has been unable to come to a resolution of the matter. The Company intends to terminate the lease agreement immediately and to relocate the equipment at the earliest opportunity. </font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">In conjunction with the acquisition of One Lab Co and its tangible assets including the Equipment and the Lease, the Company also acquired intangible assets such as industry relationships, access to capital resources and acquisition opportunities. These intangible assets were classified as Goodwill. MYHI issued the 88,000,000 shares of restricted common stock in accordance with the terms of the Exchange Agreement and recorded the acquisition of the Equipment at a cost value of $159,666 and Goodwill of $4,605,134. As of March 31, 2019, the intangible asset was fully impaired. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> On May 8, 2020, Mountain High Acquisitions Corp, (“MYHI”) and Trilogy Capital LLC ("Trilogy") entered into an Exchange Agreement (the “Exchange Agreement”) pursuant to which MYHI agreed to purchase from Trilogy all of the capital stock of GPS Associates, Inc., a Delaware corporation ("GPS") in exchange (the "Exchange") for 215,250,000 restricted shares of MYHI (the “MYHI Shares"). Dr. Judy Pham is the sole member and manager of Trilogy. Dr Pham is also the sole member and manager of Alchemy Capital, LLC ("Alchemy") which owns</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">53,727,273 shares of the MYHI's Common Stock</font><font style="font-size: 8pt">  </font><font style="font-size: 10pt">.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">GPS is a California based company engaged in the formulation, manufacturing, branding, fulfillment and distribution of hemp-derived CBD products at its cGMP, FDA-registered facility in Santa Ana, California. GPS's team of professionals includes physiologists, chemists, herbalists and botanists committed to combining high-quality organic CBD with synergistic organic, raw herbs to produce pure, premium consumer products. All products manufactured by GPS are tested at independent, third party laboratories to prove potency and purity.</p>
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All intercompany balances and transactions were eliminated on consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions. These estimates and assumptions 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. 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Changes in the observable inputs may result in a reclassification of assets and liabilities within the three levels of the hierarchy outlined above.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of certain financial instruments, such as cash equivalents, short term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Concentrations</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the years ended March 31, 2020 and 2019, one customer accounted for nil% and 100%, respectively, of the Company’s revenues.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">. <font style="background-color: white">Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At March 31, 2020 and 2019, the Company had $0 and $0 in excess of the FDIC insured limit, respectively.</font></font></p> <p style="font: italic 16pt Times New Roman, Times, Serif; margin: 0; color: navy; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u></u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">As of January 1, 2018, we adopted ASU No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09).   Leasing revenue recognition is specifically excluded and therefore the new standard is only applicable to service fee and consulting revenue.  A five-step model has been introduced for an entity to apply when recognizing revenue. </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt"> The new guidance also includes enhanced disclosure requirements.  The guidance was effective January 1, 2018.  The adoption did not have an impact on our financial statements.  </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Our revenue in 2019 represented lease revenue for the grow containers pursuant to the Company's lease with D9 and the extraction equipment lease pursuant to the Labco share exchange agreement.</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">D9 is not a related party. For the year ended March 31, 2020, the Company recorded no revenue. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><font style="font-size: 10pt"><u>Fixed Assets</u></font> <font style="font-size: 8pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Fixed Assets are stated at cost. Depreciation is provided on fixed assets using the straight-line method over an estimated service life of five years for equipment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The cost of normal maintenance and repairs is charged to operating expenses as incurred. Material expenditures which increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-lived assets, which include property, equipment, goodwill and identifiable intangible assets, are reviewed for impairment whenever events or changes in business circumstances indicate impairment may exist. If the Company determines that the carrying value of a long-lived asset may not be recoverable, a permanent impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its estimated fair value. If an initial assessment indicates it is more likely than not an impairment may exist, it is evaluated by comparing the unit’s estimated fair value to its carrying value. Fair value is generally estimated using an income approach that discounts estimated future cash flows using discount rates judged by management to be commensurate with the applicable risk. Estimates of future sales, operating results, cash flows and discount rates are subject to changes in the economic environment, including such factors as the general level of market interest rates, expected equity market returns and the volatility of markets served, particularly when recessionary economic circumstances continue for an extended period of time. Management believes the estimates of future cash flows and fair values are reasonable; however, changes in estimates due to variance from assumptions could materially affect the evaluations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fixed assets as of March 31, 2020 and 2019, respectively, have not been impaired.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Intangible Assets</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">The Company accounts for intangibles in accordance with ASC 350, Intangibles</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">-Goodwill and Other. The Company evaluates intangibles, at a minimum, on an annual basis and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of intangibles is tested by comparing the carrying amount to the fair value. The fair values are estimated using undiscounted projected net cash flows. If the carrying amount exceeds its fair value, intangibles are considered impaired and a second step is performed to measure the amount of impairment loss, if any. The Company evaluates the impairment of intangibles as of the end of each fiscal year or whenever events or changes in circumstances indicate that an intangible asset’s carrying amount may not be recoverable. These circumstances include:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">a significant decrease in the market value of an asset;</font></td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">a significant adverse change in the extent or manner in which an asset is used; or</font></td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.</font></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes in accordance with ASC Topic 740, <i>Income Taxes</i>. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. The open tax years are 2012, 2013, 2014, 2015, 2016, 2017, 2018 and 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; background-color: white"><font style="font-size: 10pt">The Company has no tax positions at March 31, 2020 or March 31, 2019, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. </font><font style="font-size: 8pt">  </font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; background-color: white"><font style="font-size: 8pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basic and Diluted Loss Per Share </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Earnings per share is calculated in accordance with the ASC Topic 260, <i>Earnings Per Share</i>. Basic earnings per share is based upon the weighted average number of common shares outstanding. Diluted earnings per share is based on the assumption that all dilutive convertible shares and stock warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Recent authoritative guidance issued by the FASB (including technical corrections to the FASB Accounting Standards Codification), the American Institute of Certified Public Accountants, and the SEC, did not, or are not expected to have a material effect on the Company’s consolidated financial statements.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt"><u>Principles of Consolidation</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The accounts of the Company and its wholly–owned subsidiaries MYHI-AZ and One Lab Co are included in the accompanying consolidated financial statements. All intercompany balances and transactions were eliminated on consolidation.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions. These estimates and assumptions 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. It is possible that accounting estimates and assumptions may be material to the Company due to the levels of subjectivity and judgment involved.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">. <font style="background-color: white">Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At March 31, 2020 and 2019, the Company had $0 and $0 in excess of the FDIC insured limit, respectively.</font></font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u></u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">As of January 1, 2018, we adopted ASU No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09).   Leasing revenue recognition is specifically excluded and therefore the new standard is only applicable to service fee and consulting revenue.  A five-step model has been introduced for an entity to apply when recognizing revenue. </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt"> The new guidance also includes enhanced disclosure requirements.  The guidance was effective January 1, 2018.  The adoption did not have an impact on our financial statements.  </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Our revenue in 2019 represented lease revenue for the grow containers pursuant to the Company's lease with D9 and the extraction equipment lease pursuant to the Labco share exchange agreement.</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">D9 is not a related party. For the year ended March 31, 2020, the Company recorded no revenue. </font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes in accordance with ASC Topic 740, <i>Income Taxes</i>. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. The open tax years are 2012, 2013, 2014, 2015, 2016, 2017, 2018 and 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; background-color: white"><font style="font-size: 10pt">The Company has no tax positions at March 31, 2020 or March 31, 2019, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. </font><font style="font-size: 8pt">  </font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basic and Diluted Loss Per Share </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Earnings per share is calculated in accordance with the ASC Topic 260, <i>Earnings Per Share</i>. Basic earnings per share is based upon the weighted average number of common shares outstanding. Diluted earnings per share is based on the assumption that all dilutive convertible shares and stock warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements </u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Recent authoritative guidance issued by the FASB (including technical corrections to the FASB Accounting Standards Codification), the American Institute of Certified Public Accountants, and the SEC, did not, or are not expected to have a material effect on the Company’s consolidated financial statements.</p>
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<us-gaap:StockholdersEquityNoteDisclosureTextBlock contextRef="From2019-04-01to2020-03-31">
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><b>Note 7 – Equity</b></p> <p style="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt"><u>Preferred Stock</u></font><u><font style="font-size: 8pt"> </font></u></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has 250,000,000 shares of Series B preferred stock with a par value of $0.0001 per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 9, 2017, the Company authorized up to 200,000 shares of Series B stock issuable. The shares have liquidation preference as well as 20:1 voting rights. The stated value of the shares are $0.75 per share and are redeemable by the Company, at the Company’s option, at any point after June 9, 2020 with 30 days notice for the $0.75 per share. The shares are convertible by the Holder at $0.075 per share at any point up until the day before they are redeemed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">On June 12, 2017, the Company issued 100,000 shares of Series B Convertible Preferred stock, par value $0.0001, to an outside consulting firm for consulting services, valued at $109,700, which was recorded as consulting fees in the three months ended June 30, 2017. Due to the super voting provision of the Series B Convertible Preferred stock the Company recorded a loss on valuation of the shares of $2,084,300, the equivalent of 20,000,000 shares less the associated consulting expense of $109,700. </font><font style="font-size: 8pt"></font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font><font style="font-size: 10pt">These are the only shares of Series B Preferred Stock outstanding as of March 31, 2020 and 2019. </font></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt"><u>Common Stock</u></font><font style="font-size: 8pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective June 12, 2017, the Company increased its authorized shares of common stock to 500,000,000 shares with a par value of $0.0001 per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended March 31, 2020, the Company converted $130,449 of convertible notes into 16,852,691 shares of common stock.</p>
</us-gaap:StockholdersEquityNoteDisclosureTextBlock>
<us-gaap:BasisOfAccountingPolicyPolicyTextBlock contextRef="From2019-04-01to2020-03-31">
<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"><u>Basis of Presentation</u></font></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0; color: navy; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been presented in United States Dollars ($ or “USD”). The fiscal year end is March 31.</p>
</us-gaap:BasisOfAccountingPolicyPolicyTextBlock>
<us-gaap:SubsequentEventsTextBlock contextRef="From2019-04-01to2020-03-31">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 13 – Subsequent Events</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><font style="font-size: 10pt">On</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">April 23, 2020, the Company entered into a Securities Purchase Agreement with Trilogy</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">Capital, LLC pursuant to which the Company agreed to issue 11,750,000 of its restricted common shares (the “MYHI Shares”) to Trilogy and Trilogy agreed to purchase the MYHI Shares for $94,000. The proceeds from the sale of the MYHI Shares were used to pay the outstanding obligations of the Company under a Convertible Promissory Note dated April 24, 2019 issued to St. George Investments, LLC, which totaled </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">$90,656 of principal and $2,474 of accrued interest as of April 23, 2020.</font><font style="font-size: 8pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><u>Share Exchange Agreement</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><font style="font-size: 10pt">On</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">May 8, 2020, The Company and Trilogy entered into an Exchange Agreement pursuant to which the Company agreed to purchase from Trilogy all of the capital stock of GPS Associates, Inc., a Delaware corporation ("GPS") in exchange for 215,250,000 restricted shares of the Company (the “MYHI Shares"). Dr. Judy Pham is the sole member and manager of Trilogy. Dr Pham is also the sole member and manager of Alchemy Capital LLC ("Alchemy") which owns 53,727,273 shares of the Company's Common Stock. The audited financial statements of GPS consisting of balance sheets as of December 31, 2019 and 2018 and for the applicable interim periods and the related statements of operations, stockholders equity and cash flows for the years and interim periods then ended together with proforma financial statements consisting of proforma unaudited combined balance sheets as of December 31, 2019 and interim period and unaudited proforma combined statement of operations for the year ended December 31, 2019 and interim period will be filed pursuant to the rules according to the Current Report on the from 8-K announcing this transaction. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">As of the date of the Exchange Agreement, May 8, 2020, based on the closing price, the 215,250,000 shares issued were valued at $1,650,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">On May 13, 2020, the Exchange was consummated.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As an interim step to assure the acquisition of GPS by MYHI, pursuant to an Exchange Agreement dated as April 10, 2020 between Trilogy and the shareholders of GPS (the "GPS/Trilogy Transaction"), Trilogy purchased all of the capital stock of GPS for $300,000 and 5,000,000 shares of the common stock of MYHI (subject to adjustment based on the future value of the MYHI shares and the EBITDA of GPS). The 5,000,000 shares were to be delivered to the GPS shareholders upon the consummation of the Exchange referred to in Item 1.01. Subsequent to the closing of the GPS/Trilogy Transaction, Trilogy provided financing to GPS for the acquisition of equipment and the purchase of raw material inventories. Among other things, the financing enabled GPS to increase its revenues from the sale of hand sanitizers as discussed below under "Description of GPS" which in turn increased the valuation of GPS used by MYHI in its purchase of GPS.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Description of GPS</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">GPS is a California based company engaged in the formulation, manufacturing, branding, fulfillment and distribution of hemp-derived CBD products at its cGMP, FDA-registered facility in Santa Ana, California. GPS's team of professionals includes physiologists, chemists, herbalists and botanists committed to combining high-quality organic CBD with synergistic organic, raw herbs to produce pure, premium consumer products. All products manufactured by GPS are tested at independent, third party laboratories to prove potency and purity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">GPS's continually expanding product offering is sold directly to consumers online as well as through wholesale partners (both online and brick and mortar stores) under its retail brand name, Zen Drops. The product offering includes tinctures, salves, gummies, transdermal patches and oral thin films.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">However, GPS's primary focus is manufacturing products for its white label clients nationwide. In this regard, GPS acts as a contract manufacturer. The labeling is with the client company's logo and branding and sold through the client's channels to its customers.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The GPS product development team blends organic raw herbs with CBD isolate and CBD distillate extracted from organically grown hemp to ensure safety, potency and purity. Also, the graphic design team creates logos, labels and other marketing assets to assist its white-label clients, the objective being to provide the client’s CBD brand with maximum visual impact in the market.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Once a white label client has approved the custom formulation and branded art work developed by GPS, the client’s new CBD product goes into production at GPS’s facility. All batches come with a certificate of analysis of the cannabinoid breakdown from a third-party testing facility. After testing, the products are bottled, capped, sealed and labeled with the client’s custom labels. The entire order is then packed and shipped to the white label client.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><font style="font-size: 10pt">To meet the demand created by the Coronavirus pandemic, GPS has expanded its operations to produce medical grade, alcohol-based hand sanitizer - proven to be 99.9% effective against germs. Additional production and bottling equipment has been acquired to rapidly expand GPS’s manufacturing capacity for this product line. The hand sanitizer line is formulated to include powerful botanical constituents such as red thyme oil, which has exceptional antiviral, antimicrobial and antiseptic properties</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with FASB ASC 855-10, Subsequent Events, the Company has analyzed its operations subsequent to March 31, 2020 to the date these consolidated financial statements were issued, and has determined that it does not have any additional material subsequent events to disclose in these consolidated financial statements.</p>
</us-gaap:SubsequentEventsTextBlock>
<us-gaap:SubstantialDoubtAboutGoingConcernTextBlock contextRef="From2019-04-01to2020-03-31">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Going Concern</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred a net loss of $485,536 for the year ended March 31, 2020 and has an accumulated deficit of $15,610,923 and a working capital deficit of $143,862 as of March 31, 2020. In addition, the Company had $5,542 </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">of cash on hand at year end as well has sustained recurring operating losses. These</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">conditions raise substantial doubt as to the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management plans to continue to raise capital to fund the Company’s operations and believes that it can continue to raise equity or debt financing to support its operations until the Company is able to generate positive cash flow from operations. </font></p>
</us-gaap:SubstantialDoubtAboutGoingConcernTextBlock>
<us-gaap:CommitmentsAndContingenciesDisclosureTextBlock contextRef="From2019-04-01to2020-03-31">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 11 – Commitments and Contingencies</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2020, and 2019 and for the fiscal years then ended, the Company identified no material commitments and contingencies requiring disclosure or adjustment to the financial statements. </p>
</us-gaap:CommitmentsAndContingenciesDisclosureTextBlock>
<us-gaap:IntangibleAssetsFiniteLivedPolicy contextRef="From2019-04-01to2020-03-31">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Intangible Assets</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">The Company accounts for intangibles in accordance with ASC 350, Intangibles</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">-Goodwill and Other. The Company evaluates intangibles, at a minimum, on an annual basis and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of intangibles is tested by comparing the carrying amount to the fair value. The fair values are estimated using undiscounted projected net cash flows. If the carrying amount exceeds its fair value, intangibles are considered impaired and a second step is performed to measure the amount of impairment loss, if any. The Company evaluates the impairment of intangibles as of the end of each fiscal year or whenever events or changes in circumstances indicate that an intangible asset’s carrying amount may not be recoverable. These circumstances include:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">a significant decrease in the market value of an asset;</font></td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">a significant adverse change in the extent or manner in which an asset is used; or</font></td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.</font></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
</us-gaap:IntangibleAssetsFiniteLivedPolicy>
<us-gaap:ConvertibleDebtTableTextBlock contextRef="From2019-04-01to2020-03-31">
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; width: 30%"><font style="font-size: 10pt">Note holder</font></td> <td style="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; width: 70%"><font style="font-size: 10pt">St George Investments LLC</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Original principal amount</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">$112,500</font><font style="font-size: 8pt"> </font></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Debt Offering Costs</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">$ (2,500)</font><font style="font-size: 8pt"> </font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Original Issue Discount</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">$ (10,000)</font><font style="font-size: 8pt"> </font></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Net proceeds to the Company</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">$ 100,000</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Term</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">12 months  </font><font style="font-size: 8pt">  </font></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Interest rate</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">10% computed on the basis of a 360 day year comprised of twelve thirty month days, compounded daily</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Security</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Not secured</font></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Prepayment rights</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">The Company had the right to prepay the Note with five trading days notice at 125% of the outstanding balance</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Conversion rights</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">On notice, the Note holder had the right to convert all or a portion of the outstanding balance of the Note into common shares of the Company at a rate of 65% of the average of the 2 lowest closing bid prices in the 20 trading days preceding the notice.  Should the company not be, or stop being DTC / DWAC eligible, the discount rate will increase by 5</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">% for each instance.</font></td></tr> </table>
</us-gaap:ConvertibleDebtTableTextBlock>
<us-gaap:DebtInstrumentConvertibleTermsOfConversionFeature contextRef="From2019-04-01to2020-03-31_custom_NoteHolder15Member"> 180 days from closing at lower of 65% of avg. 2 lowest closing bid 15 days prior to conversion </us-gaap:DebtInstrumentConvertibleTermsOfConversionFeature>
<us-gaap:ConvertibleNotesPayable contextRef="AsOf2020-03-31_custom_NoteHolder15Member" unitRef="USD" decimals="0"> 112500 </us-gaap:ConvertibleNotesPayable>
<us-gaap:PreferredStockParOrStatedValuePerShare contextRef="AsOf2020-03-31" unitRef="USDPShares" decimals="INF"> 0.0001 </us-gaap:PreferredStockParOrStatedValuePerShare>
<us-gaap:PreferredStockParOrStatedValuePerShare contextRef="AsOf2019-03-31" unitRef="USDPShares" decimals="INF"> 0.0001 </us-gaap:PreferredStockParOrStatedValuePerShare>
<us-gaap:PreferredStockSharesAuthorized contextRef="AsOf2020-03-31" unitRef="Shares" decimals="INF"> 250000000 </us-gaap:PreferredStockSharesAuthorized>
<us-gaap:PreferredStockSharesAuthorized contextRef="AsOf2019-03-31" unitRef="Shares" decimals="INF"> 250000000 </us-gaap:PreferredStockSharesAuthorized>
<us-gaap:PreferredStockSharesIssued contextRef="AsOf2020-03-31" unitRef="Shares" decimals="INF"> 100000 </us-gaap:PreferredStockSharesIssued>
<us-gaap:PreferredStockSharesIssued contextRef="AsOf2019-03-31" unitRef="Shares" decimals="INF"> 100000 </us-gaap:PreferredStockSharesIssued>
<us-gaap:PreferredStockSharesOutstanding contextRef="AsOf2020-03-31" unitRef="Shares" decimals="INF"> 100000 </us-gaap:PreferredStockSharesOutstanding>
<us-gaap:PreferredStockSharesOutstanding contextRef="AsOf2019-03-31" unitRef="Shares" decimals="INF"> 100000 </us-gaap:PreferredStockSharesOutstanding>
<us-gaap:CommonStockParOrStatedValuePerShare contextRef="AsOf2020-03-31" unitRef="USDPShares" decimals="INF"> 0.0001 </us-gaap:CommonStockParOrStatedValuePerShare>
<us-gaap:CommonStockParOrStatedValuePerShare contextRef="AsOf2019-03-31" unitRef="USDPShares" decimals="INF"> 0.0001 </us-gaap:CommonStockParOrStatedValuePerShare>
<us-gaap:CommonStockSharesAuthorized contextRef="AsOf2020-03-31" unitRef="Shares" decimals="INF"> 500000000 </us-gaap:CommonStockSharesAuthorized>
<us-gaap:CommonStockSharesAuthorized contextRef="AsOf2019-03-31" unitRef="Shares" decimals="INF"> 500000000 </us-gaap:CommonStockSharesAuthorized>
<us-gaap:DebtDisclosureTextBlock contextRef="From2019-04-01to2020-03-31">
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt"><b>Note 8 - Notes Payable</b></font><font style="font-size: 8pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 24, 2019, the Company entered in a convertible note payable in the amount of $112,500. The Company recorded discounts of<font style="font-size: 8pt"> </font> $2,500 of debt offering costs and an original issue discount of $10,000 on issuance. During the year ended March 31, 2020, the Company fully amortized these discounts, resulting in $12,500 of interest expense.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">The Company determined there to be an embedded derivative liability </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">present per the criteria of ASC 815, which requires the elements of the instrument to be bifurcated. The note had conversion provisions allowing the holder to convert the note into shares of the Company at a discount, as described in the table below. The Company recorded a derivative liability of $121,053 which was calculated at issuance (April 24, 2019) based on the amount the note could be converted into at that time, over and above the note payable. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">At</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">March 31, 2020 the balance on the outstanding convertible note payable with interest accrued in the amount of $93,130 net of $0 discounts. </font><font style="font-size: 8pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">As of March 31, 2020, the value of the derivative liability </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">was $111,181, and the company reduced the derivative liability by $9,872 by recognizing a gain on the reduction in other income section of the income statement. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font><font style="font-size: 10pt">Further details of the outstanding convertible note</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">as of March 31, 2020 are as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border: Black 1pt solid; width: 30%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Note holder</font></td> <td style="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; width: 70%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">St George Investments LLC</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Original principal amount</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">$112,500</font><font style="font-size: 8pt"> </font></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Debt Offering Costs</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">$ (2,500)</font><font style="font-size: 8pt"> </font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Original Issue Discount</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">$ (10,000)</font><font style="font-size: 8pt"> </font></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Net proceeds to the Company</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">$ 100,000</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Term</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">12 months  </font><font style="font-size: 8pt">  </font></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Interest rate</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">10% computed on the basis of a 360 day year comprised of twelve thirty month days, compounded daily</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Security</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Not secured</font></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Prepayment rights</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">The Company had the right to prepay the Note with five trading days notice at 125% of the outstanding balance</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Conversion rights</font></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">On notice, the Note holder had the right to convert all or a portion of the outstanding balance of the Note into common shares of the Company at a rate of 65% of the average of the 2 lowest closing bid prices in the 20 trading days preceding the notice.  Should the company not be, or stop being DTC / DWAC eligible, the discount rate will increase by 5</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">% for each instance.</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Interest expense</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">for this note for the year ending March 31, 2020 and 2019 was $10,630 and $0.</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">Accrued interest for this note for the year ending March 31, 2020 and 2019 was $2,474 and $0.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Outstanding balances on convertible notes as of March 31, 2020 and 2019 were</font> <font style="font-size: 8pt"> </font><font style="font-size: 10pt">$93,130 and $98,553.</font><font style="font-size: 8pt">  </font> <font style="font-size: 10pt">Furthermore, total outstanding derivative liability on the convertible notes as of March 31, 2020 and 2019 were $111,181 and $0. Subsequently on April 23, 2020 the convertible note, with then-outstanding principal of $93,130 and accrued interest of $2,474 was settled and paid in full. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, on January 23, 2017, the Company took out a note of $10,000, at 5% interest with a third party. On January 17, 2020, the Company converted all then-outstanding principal of $10,000 and accrued interest of $1,490 into 383,059 shares of the Company’s common stock. This note had a balance at March 31, 2020 and 2019, respectively, of $0 and $11,092. Accrued interest as of March 31, 2020 and 2019 was $0 and $1,011.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">On January 23, 2018, the Company took out a note of $335,000, at 10% interest with a third party. A total of 18,129,731 shares of the Company’s common stock was issued to settle the note from 2018 to 2019. This loan had a balance as of March 31, 2020 and 2019, respectively, of $0 and $87,461.</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">Accrued interest as of March 31, 2020 and 2019 was $0 and $479.</font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt"> </font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Accrued interest as of March 31, 2020 and 2019 was $2,474 and $1,490.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 9 - Related Party Transactions</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Effective April 1, 2017, Alan Smith assigned his consulting agreements and all future amounts due under the agreements to Evolution Equities Corp, "Evolution". Evolution is a related party due to Mr. Smith's 100% </font><font style="font-size: 8pt">  </font><font style="font-size: 10pt">ownership</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">interest and positions in the company. Evolution was paid $100,907 for the year ended March 31, 2020 and $90,000 for the year ended March 31, 2019. As of March 31, 2020 and 2019, the amount owed to Evolution was $305 </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">and $0, this amount is included in Accounts Payable and is non-interest bearing and due on demand. Additionally, the Company has retained KWPR Group, “KWPR”, a public relations company to assist with web site maintenance, press release preparation and social network posts. KWPR is a related party as the owner Kelly Wood is wife to the CEO Mr. Alan Smith. As of March 31, 2020, and 2019 the total fees paid to KWPR were </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">$30,000</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">and $0</font><font style="font-size: 8pt">  </font><font style="font-size: 10pt">. Additionally, as of March 31, 2020 and 2019, prepaids due to the director and officer and outside consultant were $7,500 and $0, respectively. These include a $5,000 prepayment to our director and officer for future services, and $2,500 for outside consultant. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2020, the Company sold its 100% interest in GreenLife to Evolution Equities Corporation<font style="font-size: 8pt">  </font>, an entity owned and controlled by Mr. Smith, <font style="font-size: 8pt"> </font>for the sum of $1.00. At the time of the sale, GreenLife had no assets and had liabilities in the amount of $201,445. Of the liabilities that were in GreenLife, $138,945 were owed to Brent McMahon, a related party. The gain on deconsolidation <font style="font-size: 8pt"> </font>has been reflected as an increase in Additional Paid in Capital of $201,445 as the transaction was with a related party<font style="font-size: 8pt">    </font>controlled by a stockholder in the company, resulting in the effective treatment of the gain as a stockholder contribution. The company assesses its joint ventures and partnerships at inception to determine if any meet the qualifications of a variable interest entity ("VIE") in accordance with Accounting Standards Codification ("ASC") 810, "Consolidation." If a joint venture or partnership is a VIE and the company is the primary beneficiary, the joint venture or partnership is fully consolidated. Management has determined GreenLife does not meet does not meet the definition of a business under ASC 805 and is therefore not subject to VIE guidance and should remain deconsolidated after the sale date. Furthermore, the Company forgave the balance of $50,000 due from Greenlife on the transaction date, resulting in a $50,000 loss.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 3 – Note Receivable</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2017, the Company formed MYHI-AZ to acquire equipment to service the growing cannabis industry. In September 2017, the Company entered into a consulting agreement with D9 Manufacturing, "D9," to provide D9 customers with infrastructure equipment. Also, in September 2017, MYHI-AZ purchased 2 intermodal grow containers from D9 to be used in a grow operation in Arizona. MYHI-AZ leased the grow containers to D9 for 3 years with the right to extend the lease for an additional 2 years. The lease began August 15, 2017. The lease provided for a monthly lease rate of $20,000 a month and required advance payment for operating supplies and expenses. The monthly lease rate was recorded as Revenue and an Account Receivable while the advances were recorded as Other Receivable. The monthly lease payments were to commence on harvesting of the first crop. The containers were planted in October 2017 with an expected harvest in January 2018. The initial grow operation encountered a power failure which ultimately resulted in the loss of the crop. The loss of this crop resulted in a deferral of collection of the lease rental payments and the operating cost payments. The power failure highlighted electrical issues with the facility where the containers were being used and improvements to the containers that could be made. While the container improvements were made, the facility power requirement issues were never fully resolved.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective September 11, 2018, MYHI-AZ and D9 agreed to convert the current amount due under the operating lease, representing $150,000 in lease payments and $22,294 in operating expenses, into a $135,000 note payable, (the "Note"), with a term of 3 years and interest rate of 7% per annum, and to capitalize $35,000 for improvements to the containers. The first payment on the Note was due October 3, 2018.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, and in anticipation of the resolution of the power issues at the grow facility, the Parties agreed to terminate the current lease effective March 31, 2018 and replace it with a new lease beginning July 1, 2018 with lease payments of $5,000 per month beginning November 1, 2018. This replacement lease was terminated on March 31, 2019 as D9 was unable to successfully complete a harvest due to the ongoing power problems and a shift in the focus of their company to extraction only. The Note however remained in full force and effect.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><font style="background-color: white">As of </font>March 31, 2020<font style="background-color: white">, the Company evaluated the collectability of the note and believes the balance of $73,361 is collectible. D9 is current in its required Note payments. </font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><b>Note 5 – Fixed Assets</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Fixed assets consist of the following at March 31, 2020 and 2019, respectively:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">For the year ended</p> <p style="margin-top: 0; margin-bottom: 0">March 31, 2020</p></td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>For the year ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>March 31, 2019</b></p></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 51%; font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Extraction Equipment</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 20%; font-weight: bold; text-align: right">159,667</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="width: 3%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 20%; font-weight: bold; text-align: right">159,667</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Grow Equipment</td><td style="font-size: 11pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 11pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 11pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 11pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">235,000</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total cost</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">159,667</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">394,667</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: Accumulated depreciation and amortization</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(43,832</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 12pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 12pt; font-weight: bold; text-align: right">(88,811</td><td style="padding-bottom: 1pt; font-size: 12pt; font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">115,835</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">305,856</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">Total depreciation expense for the years ended March 31, 2020 and 2019 was $50,233 and $58,811, respectively. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Loss on Sale of Equipment</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three-month period ended June 30, 2019, the Company decided to sell the grow containers with a carrying value of $139,788, to generate capital to finance its own change in focus to extraction. On August 20, 2019, the Company completed the sale of the containers for proceeds of $100,000, recognizing a loss on sale of equipment of $39,788.</p>
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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">For the year ended</p> <p style="margin-top: 0; margin-bottom: 0">March 31, 2020</p></td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>For the year ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>March 31, 2019</b></p></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt; width: 51%">Extraction Equipment</td><td style="font-weight: bold; padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left; width: 1%">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right; width: 20%">159,667</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; width: 1%"> </td><td style="font-weight: bold; padding-bottom: 1pt; width: 3%"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left; width: 1%">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right; width: 20%">159,667</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Grow Equipment</td><td style="font-size: 11pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 11pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 11pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 11pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">235,000</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total cost</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">159,667</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">394,667</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: Accumulated depreciation and amortization</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(43,832</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 12pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 12pt; font-weight: bold; text-align: right">(88,811</td><td style="padding-bottom: 1pt; font-size: 12pt; font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">115,835</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">305,856</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 6 – Accrued liabilities </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">As of March 31, 2020 and 2019</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">, total accrued liabilities consisted of $0 and $149,955, respectively. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">As of March 31, 2020 and 2019, a total of $0 and $138,945, respectively was related to a liability due to Brent McMahon, a 24% shareholder of the Company</font><font style="font-size: 8pt">  </font><font style="font-size: 10pt">, for Greenlife BotaniX, (“Greenlife”) selling and administrative expenses paid by him</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">between 2015 and 2017. In addition, as of March 31, 2020 and 2019, a total of $0 and $12,500, respectively was related to Greenlife office lease expenses. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2020, the Company sold its 100% interest in GreenLife to Evolution Equities Corporation, a Nevada Corporation for the sum of $1.00. At the time of the sale, GreenLife had no assets and had liabilities in the amount of $201,445. Of the liabilities that were in GreenLife, $138,945 were owed to Brent McMahon, a related party. Management has determined that Greenlife does not meet the definition of a business per ASC 805 and was not a Variable Interest Entity (VIE). The gain to the company of the removal of liabilities in the books has been reflected as an increase in Additional Paid in Capital of $201,445 as the transaction was with a related party. The company assesses its joint ventures and partnerships at inception to determine if any meet the qualifications of a variable interest entity ("VIE") in accordance with Accounting Standards Codification ("ASC") 810, "Consolidation." If a joint venture or partnership is a VIE and the company is the primary beneficiary, the joint venture or partnership is fully consolidated. Management has determined GreenLife does not meet this test.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 10 – Officer and Director fees</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">During the year ended </font> <font style="font-size: 8pt"> </font><font style="font-size: 10pt">March 31, 2020 and 2019, respectively, the total officer</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">and director fees paid were $100,907 and $90,000 to the Company’s CEO and Director. </font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt"> Additionally, as of March 31, 2019 a total of $60,000 was paid to the former CFO and Director of the Company, but there were no amounts paid to the former CFO and director during</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">the period ending March 31, 2020. There were no amounts accrued and unpaid as of March 31, 2020 or 2019, respectively. </font></p>
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<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><font style="font-size: 10pt"><u>Fixed Assets</u></font> <font style="font-size: 8pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Fixed Assets are stated at cost. Depreciation is provided on fixed assets using the straight-line method over an estimated service life of five years for equipment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The cost of normal maintenance and repairs is charged to operating expenses as incurred. Material expenditures which increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-lived assets, which include property, equipment, goodwill and identifiable intangible assets, are reviewed for impairment whenever events or changes in business circumstances indicate impairment may exist. If the Company determines that the carrying value of a long-lived asset may not be recoverable, a permanent impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its estimated fair value. If an initial assessment indicates it is more likely than not an impairment may exist, it is evaluated by comparing the unit’s estimated fair value to its carrying value. Fair value is generally estimated using an income approach that discounts estimated future cash flows using discount rates judged by management to be commensurate with the applicable risk. Estimates of future sales, operating results, cash flows and discount rates are subject to changes in the economic environment, including such factors as the general level of market interest rates, expected equity market returns and the volatility of markets served, particularly when recessionary economic circumstances continue for an extended period of time. Management believes the estimates of future cash flows and fair values are reasonable; however, changes in estimates due to variance from assumptions could materially affect the evaluations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fixed assets as of March 31, 2020 and 2019, respectively, have not been impaired.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><b>Note 4 – Prepaids</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Prepaids as of March 31, 2020 and 2019, were $7,500 and $0, respectively. These include a $5,000 prepayment to our director and officer for future services, and $2,500 for outside consultant.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 12 – Income Taxes</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes using the asset and liability approach Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributable to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">The Company had </font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">federal net operating loss carryforwards as of March 31, 2020 and 2019 of approximately $5,871,365 and $5,434,865 expiring in various years</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">through 2040. The tax benefit of these net operating losses has been offset by a full allowance for realization. The use of the net operating loss carryfowards may be limited due to a change in control.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt">The Company’s effective tax rate differs from the high statutory rate for the year ended March 31, 2020</font><font style="font-size: 8pt"> </font> <font style="font-size: 10pt">and 2019, due to the following (expressed as a percentage of pre-tax income):</font></p> <table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt"><font style="font-size: 10pt"> </font></td><td style="font-size: 12pt"><font style="font-size: 10pt"> </font></td> <td colspan="3" style="font-size: 12pt; text-align: right"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">Federal taxes at statutory rate</font></td><td style="width: 10%"><font style="font-size: 10pt"> </font></td> <td style="width: 1%; text-align: left"><font style="font-size: 10pt">$</font></td><td style="width: 18%; text-align: right"><font style="font-size: 10pt">21.0</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">State taxes, net of federal tax benefit</font></td><td style="font-size: 12pt"><font style="font-size: 10pt"> </font></td> <td style="font-size: 12pt; text-align: left"><font style="font-size: 10pt"> </font></td><td style="font-size: 12pt; text-align: right"><font style="font-size: 10pt">5.0</font></td><td style="font-size: 12pt; text-align: left"><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Valuation allowance</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt">(26.0</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt">)%</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Effective income tax rate</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 10pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 10pt">0.0</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 10pt">%</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: justify">The corporate tax rate in Arizona is 6.98% and the corporate tax rate in Colorado is 4.63%. Were the Company to have income in both locations, there would be offsetting deductions, thus the Company does not believe we would pay the full tax rate in both locations. Management is continuing to monitor the state taxes (as well as Federal) to insure we are utilizing the best strategies to keep our effect tax rate as low as legally possible.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: justify"><font style="font-size: 10pt">As of March 31, 2020</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">, the components of these temporary differences and the deferred tax asset were as follows: </font></p> <table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td><font style="font-size: 10pt"> </font></td><td><font style="font-size: 10pt"> </font></td> <td colspan="3" style="text-align: right"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><font style="font-size: 10pt">Deferred Tax assets:</font></td><td><font style="font-size: 10pt"> </font></td> <td colspan="3"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; font-size: 10pt; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">     Net operating loss carryforward</font></td><td style="width: 10%; font-size: 10pt"><font style="font-size: 10pt"> </font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 10pt">$</font></td><td style="width: 18%; font-size: 10pt; text-align: right"><font style="font-size: 10pt">1,526,555</font></td><td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">     Less: valuation allowance</font></td><td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">(1,526,555</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Net deferred tax assets</font></td><td style="font-size: 10pt; padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><font style="font-size: 10pt">$</font></td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><font style="font-size: 10pt">—  </font></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 11.25pt 0 0"><font style="font-size: 10pt">As of March 31, 2019</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">, the components of these temporary differences and the deferred tax asset were as follows: </font></p> <table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td><font style="font-size: 10pt"> </font></td><td><font style="font-size: 10pt"> </font></td> <td colspan="3" style="text-align: right"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><font style="font-size: 10pt">Deferred Tax assets:</font></td><td><font style="font-size: 10pt"> </font></td> <td colspan="3"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; font-size: 10pt; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">     Net operating loss carryforward</font></td><td style="width: 10%"><font style="font-size: 10pt"> </font></td> <td style="width: 1%; text-align: left"><font style="font-size: 10pt">$</font></td><td style="width: 18%; text-align: right"><font style="font-size: 10pt">1,413,065</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">     Less: valuation allowance</font></td><td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">(1,413,065</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Net deferred tax assets</font></td><td style="font-size: 10pt; padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><font style="font-size: 10pt">$</font></td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><font style="font-size: 10pt">—  </font></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following tables set forth the components of deferred income taxes as of March 31, 2020 and 2019:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">  </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">March 31, 2020</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">March 31 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Bad debt allowance</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Accrued expenses</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Share based compensation accruals</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; font-size: 10pt; text-align: left; text-indent: 9pt">Net operating loss carryforwards</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 15%; font-size: 10pt; text-align: right">5,871,365</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 15%; font-size: 10pt; text-align: right">5,434,865</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 9pt">Unrealized losses</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 0.25in">Total deferred tax assets</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">5,871,365</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">5,434,865</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Less: valuation allowance</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(5,871,365</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(5,434,865</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 0.25in">Net deferred tax assets</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 9pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred tax liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Prepaid expenses</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Fixed assets</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Goodwill and intangible assets</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 9pt">Unrealized gains</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 0.25in">Total deferred tax liabilities</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Less: valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(—)</td><td style="padding-bottom: 1pt; text-align: left"></td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(—)</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 0.25in">Net deferred tax liabilities</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-indent: 9pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; text-indent: 0.25in">Total deferred tax assets, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
</us-gaap:IncomeTaxDisclosureTextBlock>
<us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock contextRef="From2019-04-01to2020-03-31">
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt"><font style="font-size: 10pt"> </font></td><td style="font-size: 12pt"><font style="font-size: 10pt"> </font></td> <td colspan="3" style="font-size: 12pt; text-align: right"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">Federal taxes at statutory rate</font></td><td style="width: 10%"><font style="font-size: 10pt"> </font></td> <td style="width: 1%; text-align: left"><font style="font-size: 10pt">$</font></td><td style="width: 18%; text-align: right"><font style="font-size: 10pt">21.0</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">State taxes, net of federal tax benefit</font></td><td style="font-size: 12pt"><font style="font-size: 10pt"> </font></td> <td style="font-size: 12pt; text-align: left"><font style="font-size: 10pt"> </font></td><td style="font-size: 12pt; text-align: right"><font style="font-size: 10pt">5.0</font></td><td style="font-size: 12pt; text-align: left"><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Valuation allowance</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt">(26.0</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt">)%</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Effective income tax rate</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 10pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 10pt">0.0</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 10pt">%</font></td></tr> </table>
</us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock>
<us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock contextRef="From2019-04-01to2020-03-31">
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td><font style="font-size: 10pt"> </font></td><td><font style="font-size: 10pt"> </font></td> <td colspan="3" style="text-align: right"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><font style="font-size: 10pt">Deferred Tax assets:</font></td><td><font style="font-size: 10pt"> </font></td> <td colspan="3"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; font-size: 10pt; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">     Net operating loss carryforward</font></td><td style="width: 10%; font-size: 10pt"><font style="font-size: 10pt"> </font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 10pt">$</font></td><td style="width: 18%; font-size: 10pt; text-align: right"><font style="font-size: 10pt">1,526,555</font></td><td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">     Less: valuation allowance</font></td><td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">(1,526,555</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Net deferred tax assets</font></td><td style="font-size: 10pt; padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><font style="font-size: 10pt">$</font></td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><font style="font-size: 10pt">—  </font></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 11.25pt 0 0"><font style="font-size: 10pt">As of March 31, 2019</font><font style="font-size: 8pt"> </font><font style="font-size: 10pt">, the components of these temporary differences and the deferred tax asset were as follows: </font></p> <table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td><font style="font-size: 10pt"> </font></td><td><font style="font-size: 10pt"> </font></td> <td colspan="3" style="text-align: right"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><font style="font-size: 10pt">Deferred Tax assets:</font></td><td><font style="font-size: 10pt"> </font></td> <td colspan="3"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; font-size: 10pt; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">     Net operating loss carryforward</font></td><td style="width: 10%"><font style="font-size: 10pt"> </font></td> <td style="width: 1%; text-align: left"><font style="font-size: 10pt">$</font></td><td style="width: 18%; text-align: right"><font style="font-size: 10pt">1,413,065</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt"> </font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">     Less: valuation allowance</font></td><td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">(1,413,065</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Net deferred tax assets</font></td><td style="font-size: 10pt; padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><font style="font-size: 10pt">$</font></td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><font style="font-size: 10pt">—  </font></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr> </table>
</us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock>
<us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock contextRef="From2019-04-01to2020-03-31">
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">March 31, 2020</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">March 31 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Bad debt allowance</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Accrued expenses</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Share based compensation accruals</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; font-size: 10pt; text-align: left; text-indent: 9pt">Net operating loss carryforwards</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 15%; font-size: 10pt; text-align: right">5,871,365</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 15%; font-size: 10pt; text-align: right">5,434,865</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 9pt">Unrealized losses</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 0.25in">Total deferred tax assets</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">5,871,365</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">5,434,865</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Less: valuation allowance</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(5,871,365</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(5,434,865</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 0.25in">Net deferred tax assets</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 9pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred tax liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Prepaid expenses</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Fixed assets</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 9pt">Goodwill and intangible assets</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 9pt">Unrealized gains</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 0.25in">Total deferred tax liabilities</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Less: valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(—)</td><td style="padding-bottom: 1pt; text-align: left"></td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(—)</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 0.25in">Net deferred tax liabilities</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-indent: 9pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; text-indent: 0.25in">Total deferred tax assets, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>
</us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock>
<us-gaap:FairValueOfFinancialInstrumentsPolicy contextRef="From2019-04-01to2020-03-31">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair value is the price that would be received from selling an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides a hierarchy for inputs used in measuring fair value that prioritize the use of observable inputs over the use of unobservable inputs, when such observable inputs are available. The three levels of inputs that may be used to measure fair value are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font-size: 10pt">● Level 1 - Quoted prices in active markets for identical assets or liabilities.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font-size: 10pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font-size: 10pt">● Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font-size: 10pt"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font-size: 10pt">● Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by the Company. </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observable inputs may result in a reclassification of assets and liabilities within the three levels of the hierarchy outlined above.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of certain financial instruments, such as cash equivalents, short term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities.</p>
</us-gaap:FairValueOfFinancialInstrumentsPolicy>
<us-gaap:ConcentrationRiskCreditRisk contextRef="From2019-04-01to2020-03-31">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Concentrations</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the years ended March 31, 2020 and 2019, one customer accounted for nil% and 100%, respectively, of the Company’s revenues.</p>
</us-gaap:ConcentrationRiskCreditRisk>
<us-gaap:GainsLossesOnExtinguishmentOfDebt contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> -50000 </us-gaap:GainsLossesOnExtinguishmentOfDebt>
<us-gaap:Capital contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 143862 </us-gaap:Capital>
<us-gaap:PropertyPlantAndEquipmentOther contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:PropertyPlantAndEquipmentOther contextRef="AsOf2019-03-31" unitRef="USD" decimals="0"> 235000 </us-gaap:PropertyPlantAndEquipmentOther>
<us-gaap:PropertyPlantAndEquipmentOtherNet contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 159667 </us-gaap:PropertyPlantAndEquipmentOtherNet>
<us-gaap:PropertyPlantAndEquipmentOtherNet contextRef="AsOf2019-03-31" unitRef="USD" decimals="0"> 394667 </us-gaap:PropertyPlantAndEquipmentOtherNet>
<us-gaap:Depreciation contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> 50233 </us-gaap:Depreciation>
<us-gaap:Depreciation contextRef="From2019-01-01to2019-03-31" unitRef="USD" decimals="0"> 58811 </us-gaap:Depreciation>
<us-gaap:CertainLoansAndDebtSecuritiesAcquiredInTransferDescriptionOfHowPrepaymentsAreConsideredInDeterminationOfContractualCashFlowsAndCashFlowsExpectedToBeCollected contextRef="From2019-04-01to2020-03-31_custom_NoteHolder15Member"> The Company had the right to prepay the Note with five trading days notice at 125% of the outstanding balance </us-gaap:CertainLoansAndDebtSecuritiesAcquiredInTransferDescriptionOfHowPrepaymentsAreConsideredInDeterminationOfContractualCashFlowsAndCashFlowsExpectedToBeCollected>
<MYHI:Security contextRef="From2019-04-01to2020-03-31_custom_NoteHolder15Member"> Not secured </MYHI:Security>
<us-gaap:AmortizationOfFinancingCostsAndDiscounts contextRef="From2019-04-01to2020-03-31_custom_NoteHolder15Member" unitRef="USD" decimals="0"> 10000 </us-gaap:AmortizationOfFinancingCostsAndDiscounts>
<us-gaap:ProceedsFromIssuanceOfDebt contextRef="From2019-04-01to2020-03-31_custom_NoteHolder15Member" unitRef="USD" decimals="0"> 112500 </us-gaap:ProceedsFromIssuanceOfDebt>
<us-gaap:PaymentsOfDebtIssuanceCosts contextRef="From2019-04-01to2020-03-31_custom_NoteHolder15Member" unitRef="USD" decimals="0"> 2500 </us-gaap:PaymentsOfDebtIssuanceCosts>
<us-gaap:DebtInstrumentTerm contextRef="From2019-04-01to2020-03-31_custom_NoteHolder15Member"> P12M </us-gaap:DebtInstrumentTerm>
<us-gaap:DebtInstrumentInterestRateDuringPeriod contextRef="From2019-04-01to2020-03-31_custom_NoteHolder15Member" unitRef="Pure" decimals="INF"> 0.10 </us-gaap:DebtInstrumentInterestRateDuringPeriod>
<us-gaap:DerivativeFairValueOfDerivativeLiability contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 111181 </us-gaap:DerivativeFairValueOfDerivativeLiability>
<MYHI:ReductionInDerivativeLiability contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> -9872 </MYHI:ReductionInDerivativeLiability>
<us-gaap:InterestExpenseDebt contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> 10630 </us-gaap:InterestExpenseDebt>
<us-gaap:InterestExpenseDebt contextRef="From2019-01-01to2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DebtInstrumentIncreaseAccruedInterest contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> 2474 </us-gaap:DebtInstrumentIncreaseAccruedInterest>
<us-gaap:DebtInstrumentIncreaseAccruedInterest contextRef="From2019-01-01to2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate contextRef="From2019-04-01to2020-03-31" unitRef="Pure" decimals="INF"> .21 </us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate>
<us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes contextRef="From2019-04-01to2020-03-31" unitRef="Pure" decimals="INF"> 0.05 </us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes>
<us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance contextRef="From2019-04-01to2020-03-31" unitRef="Pure" decimals="INF"> -0.26 </us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance>
<us-gaap:EffectiveIncomeTaxRateContinuingOperations contextRef="From2019-04-01to2020-03-31" unitRef="Pure" decimals="INF"> 0.0 </us-gaap:EffectiveIncomeTaxRateContinuingOperations>
<us-gaap:DeferredTaxAssetsOperatingLossCarryforwards contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 1526555 </us-gaap:DeferredTaxAssetsOperatingLossCarryforwards>
<us-gaap:DeferredTaxAssetsOperatingLossCarryforwards contextRef="AsOf2019-03-31" unitRef="USD" decimals="0"> 1413065 </us-gaap:DeferredTaxAssetsOperatingLossCarryforwards>
<us-gaap:DeferredTaxAssetsValuationAllowance contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 1526555 </us-gaap:DeferredTaxAssetsValuationAllowance>
<us-gaap:DeferredTaxAssetsValuationAllowance contextRef="AsOf2019-03-31" unitRef="USD" decimals="0"> 1413065 </us-gaap:DeferredTaxAssetsValuationAllowance>
<us-gaap:DeferredTaxAssetsNet contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsNet contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilities contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilities contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:OperatingLossCarryforwards contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 5871365 </us-gaap:OperatingLossCarryforwards>
<us-gaap:OperatingLossCarryforwards contextRef="AsOf2019-03-31" unitRef="USD" decimals="0"> 5434865 </us-gaap:OperatingLossCarryforwards>
<us-gaap:DeferredTaxAssetsOtherComprehensiveLoss contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 0 </us-gaap:DeferredTaxAssetsOtherComprehensiveLoss>
<us-gaap:DeferredTaxAssetsOtherComprehensiveLoss contextRef="AsOf2019-03-31" unitRef="USD" decimals="0"> 0 </us-gaap:DeferredTaxAssetsOtherComprehensiveLoss>
<us-gaap:DeferredTaxAssetsGross contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 5871365 </us-gaap:DeferredTaxAssetsGross>
<us-gaap:DeferredTaxAssetsGross contextRef="AsOf2019-03-31" unitRef="USD" decimals="0"> 5434865 </us-gaap:DeferredTaxAssetsGross>
<us-gaap:DeferredTaxAssetsValuationAllowanceCurrent contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 5871365 </us-gaap:DeferredTaxAssetsValuationAllowanceCurrent>
<us-gaap:DeferredTaxAssetsValuationAllowanceCurrent contextRef="AsOf2019-03-31" unitRef="USD" decimals="0"> 5434865 </us-gaap:DeferredTaxAssetsValuationAllowanceCurrent>
<us-gaap:DeferredTaxAssetsNetCurrent contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsNetCurrent contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesCurrent contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesCurrent contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesGrossCurrent contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesGrossCurrent contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesPrepaidExpenses contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesPrepaidExpenses contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesOtherFiniteLivedAssets contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesOtherFiniteLivedAssets contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesGoodwillAndIntangibleAssets contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesGoodwillAndIntangibleAssets contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesOtherComprehensiveIncome contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxLiabilitiesOtherComprehensiveIncome contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsLiabilitiesNet contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsLiabilitiesNet contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<MYHI:DeferredTaxLiabilitiesValuationAllowance contextRef="AsOf2020-03-31" unitRef="USD" xsi:nil="true"/>
<MYHI:DeferredTaxLiabilitiesValuationAllowance contextRef="AsOf2019-03-31" unitRef="USD" xsi:nil="true"/>
<MYHI:OutstandingConvertibleNotesPayableToThirdParties contextRef="AsOf2020-03-31" unitRef="USD" decimals="0"> 93130 </MYHI:OutstandingConvertibleNotesPayableToThirdParties>
<us-gaap:InterestExpenseOther contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> 11543 </us-gaap:InterestExpenseOther>
<us-gaap:InterestExpenseOther contextRef="From2018-04-01to2019-03-31" unitRef="USD" decimals="0"> 26454 </us-gaap:InterestExpenseOther>
<us-gaap:IncreaseDecreaseInOtherAccruedLiabilities contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> 984 </us-gaap:IncreaseDecreaseInOtherAccruedLiabilities>
<us-gaap:IncreaseDecreaseInOtherAccruedLiabilities contextRef="From2018-04-01to2019-03-31" unitRef="USD" xsi:nil="true"/>
<us-gaap:OtherNonrecurringIncomeExpense contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> -6020 </us-gaap:OtherNonrecurringIncomeExpense>
<us-gaap:OtherNonrecurringIncomeExpense contextRef="From2018-04-01to2019-03-31" unitRef="USD" decimals="0"> -7375 </us-gaap:OtherNonrecurringIncomeExpense>
<us-gaap:OtherNonoperatingIncomeExpense contextRef="From2019-04-01to2020-03-31" unitRef="USD" decimals="0"> -219976 </us-gaap:OtherNonoperatingIncomeExpense>
<us-gaap:OtherNonoperatingIncomeExpense contextRef="From2018-04-01to2019-03-31" unitRef="USD" decimals="0"> -4624213 </us-gaap:OtherNonoperatingIncomeExpense>
</xbrli:xbrl>

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