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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended April 30, 2021
For the quarterly period ended October 31, 2021
[ ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
For the transition period from __________ to__________
Commission File Number: 000-55711

Cannagistics, Inc.

(Exact name of registrant as specified in its charter)

Delaware	86-3911779
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
2110 5th Avenue Ronkonkoma, NY 11779
150 Motor Parkway Suite 401 Hauppauge, NY 11788
(Address of principal executive offices)
631-676-7230
631-787-8455
(Registrant’s telephone number)
1200 Veterans Highway, Suite 310 Hauppauge, NY 11788 (Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[ ] Yes [X] No

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

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

☐ Large accelerated ~~filer~~Filer [☐ ] Accelerated ~~filer~~Filer [☒ ] Non-accelerated ~~filer [~~Filer ]☒ Smaller reporting company ~~[X]~~☐ Emerging growth company

Emerging growth company [ ]

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: ~~183~~266,~~166~~242,~~659~~608 common shares as of ~~June~~December 1516, 2021.

Table of Contents

TABLE OF CONTENTS
		Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	712
Item 4:	Controls and Procedures	712
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	914
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	1015
Item 3:	Defaults Upon Senior Securities	1015
Item 4:	Mine Safety Disclosures	1015
Item 5:	Other Information	1015
Item 6:	Exhibits	1016

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our financial statements included in this Form 10-Q are as follows:

F-1	Consolidated Interim Balance Sheets as of ~~April~~October 3031, 2021 (unaudited) and July 31, ~~2020~~2021 (audited);
F-2	Condensed Consolidated Interim Statements of Operations for the three ~~and nine~~ months ended ~~April~~October 3031, 2021 (unaudited) and 2020 (unaudited);
F-3	Condensed Consolidated Interim Statements of Cash Flows for the ~~nine~~three months ended ~~April~~October 3031, 2021 (unaudited) and 2020 (unaudited); and
F-4	Notes to Condensed Consolidated Interim Financial Statements. (unaudited)

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended ~~April~~October 3031, 2021, are not necessarily indicative of the results that can be expected for the full year.

Table of Contents

CANNAGISTICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

GLOBAL3PL, INC. AND SUBSIDIARIES

	October 31, 2021			July 31, 2021
	(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,158		$	30,007
Shareholder Loan receivable		40,000			—
Prepaid expenses		25,000			15,000
Related party receivables, less allowance for doubtful accounts of $1,102,270		—			—
TOTAL CURRENT ASSETS		67,158			45,007

TOTAL ASSETS	$	67,158		$	45,007

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$	1,166,641		$	1,058,606
Promissory notes, net of discount of $81,683 October 31, 2021 and July 31, 2021, respectively		52,000			520,000
Convertible notes payable, net of discount of as of $488,141 and $301,537 October 31, 2021 and July 31, 2021, respectively		2,948,767			2,329,996
Derivative liabilities		117,969			529,171
Related party payables		442,161			416,159
TOTAL CURRENT LIABILITIES		5,195,538			4,853,932

LIABILITIES OF DISCONTINUED OPERATIONS		837,778			837,778

TOTAL LIABILITIES		6,033,316			5,691,710


STOCKHOLDERS' DEFICIT:
Preferred stock:		—			—
Series E Preferred Stock; $0.001 par value; 3,600,000 shares authorized, 900,000 and 900,000 shares issued and outstanding as of October 31, 2021 and July 31, 2021, respectively		900			900
Series F Preferred Stock; $0.001 par value; 4,400,000 shares authorized, 4,400,000 and 4,400,000 shares issued and outstanding as of October 31, 2021 and July 31, 2021, respectively		4,400			4,400
Common stock; $0.001 par value; 500,000,000 and 250,000,000 shares authorized as of October 31, 2021 and July 31, 2020, respectively; 219,468,674 and 189,561,572 outstanding and issued as of October 31, 2021 and July 31, 2021, respectively		219,468			189,561
Common stock issuable		290,000			290,000
Additional paid-in capital		25,102,756			24,485,627
Treasury stock		(45,000	)		(45,000)
Accumulated deficit		(31,538,682	)		(30,572,191)
TOTAL STOCKHOLDERS' DEFICIT		(5,966,158	)		(5,646,703)

TOTAL LIABILITIES & STOCKHOLDERS' DEFICIT	$	67,158		$	45,007

CONSOLIDATED BALANCE SHEETS

	April 30, 2021			July 31, 2020
	(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	33,177		$	685
Right-to-use asset		—			23,033
Related party receivables, less allowance for doubtful accounts of $1,036,993		—			—
TOTAL CURRENT ASSETS		33,177			23,718
OTHER ASSETS:
Right-to-use asset, net of current portion		—			31,442
Security deposits		3,634			3,634
TOTAL OTHER ASSETS		3,634			35,076
TOTAL ASSETS	$	36,811		$	58,794
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$	964,090		$	607,961
Lease liability, current portion		—			18,505
Promissory notes		170,000			170,000
Convertible notes payable, net of discount of $366,820 and $58,087 April 30, 2021 and July 31, 2020, respectively		2,304,713			2,426,254
Derivative liabilities		551,652			205,796
Common stock payable		—			24,998
Related party payables		391,159			388,094
TOTAL CURRENT LIABILITIES		4,381,614			3,841,608
LONG-TERM LIABILITIES
Lease liability, net of current portion		—			38,559
TOTAL LONG-TERM LIABILITIES		—			38,559
LIABILITIES OF DISCONTINUED OPERATIONS		837,778			839,646
TOTAL LIABILITIES		5,219,392			4,719,813
STOCKHOLDERS' DEFICIT:
Preferred Stock; $0.001 par value; 20,000,000 shares authorized, 10,000,000 and 10,000,000 shares issued and outstanding as of April 30, 2021 and July 31, 2020, respectively		10,000			10,000
Common stock; $0.001 par value; 500,000,000 and 250,000,000 shares authorized as of April 30, 2021 and July 31, 2020, respectively; 183,166,659 and 105,099,277 outstanding and issued as of April 30, 2021 and July 31, 2020, respectively		183,167			105,099
Additional paid-in capital		9,614,549			8,490,720
Treasury stock		(45,000	)		(45,000	)
Accumulated deficit		(14,945,297	)		(13,221,838	)
TOTAL STOCKHOLDERS' DEFICIT		(5,182,581	)		(4,661,019	)
TOTAL LIABILITIES & STOCKHOLDERS' DEFICIT	$	36,811		$	58,794

See accompanying notes to the consolidated financial statements

F-1

Table of Contents

CANNAGISTICS , INC. AND SUBSIDIARIES

GLOBAL3PL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2021

(UNAUDITED)

	For The Three Months Ended						~~For The Nine Months Ended~~
	April 30, 2021			April 30, 2020			April 30, 2021			April 30, 2020
	October 31, 2021			October 31, 2020
Operating expenses
General and administrative expenses		3227,~~451~~126			(537,~~302~~575	)		~~112,502~~			~~(25,741~~	)
Rent		1,871			7,268			12,382			23,394
Bad debt		21,759			—
Consulting		50,000			59,675			88,125			107,947
Rent		4,928			7,486
Professional fees		72,706			125,032			220,356			271,483
Consulting		584,979			28,500
Total operating expenses		157,028			186,673			433,365			377,083
Professional fees		187,115			82,884
Loss from operations		(157,028	)		(186,673	)		(433,365	)		(377,083	)
Total operating expenses		825,907			156,445
Other income (expense)
Loss from operations		(825,907	)		(156,445)
Interest Income		21,759			21,759			65,277			65,277
Other income (expense)
Interest expense		(109,043	)		(105,402	)		(421,014	)		(305,249	)
Interest Income		21,759			21,759
Settlement Fees		—			—			(25,000	)		—
Interest expense		(351,918	)		(147,634)
Gain on derivative liabilities		1,211,499			—			33,589			—
Gain/(loss) on sale of asset		—			—
Change in fair value of derivative liabilities		(669,038	)		—			(942,946	)		—
Settlement Fees		(69,875	)		(25,000)
Total other expense		455,177			(83,643	)		(1,290,094	)		(239,972	)
Loss on derivative liabilities		130,909			(936,075)
Loss from continuing operations		298,149			(270,316	)		(1,723,459	)		(617,055	)
Change in fair value of derivative liabilities		128,541			(42,782)
Discontinued operations, including loss on disposal		—			—			—			(173,377	)
Total other expense		(140,584	)		(1,129,732)
Net loss		298,149			(270,316	)		(1,723,459	)		(790,432	)
Loss from continuing operations		(966,491	)		(1,286,177)
Net loss per common share: basic and diluted	$	0.00		$	(0.00	)	$	(0.01	)	$	(0.01	)
Discontinued operations, including loss on disposal		—			—
Basic and diluted weighted average common shares outstanding		170,240,158			97,617,423			143,412,934			96,590,051
Net loss		(966,491	)		(1,286,177)
Net loss per common share: basic and diluted		(0	)		(0)
Basic and diluted weighted average common shares outstanding		197,407,484			102,834,619

See accompanying notes to the consolidated financial statements

F-2

Table of Contents

CANNAGISTICS , INC. AND SUBSIDIARIES

~~GLOBAL3PL,~~CONSOLIDATED STATEMENTS ~~INC.~~OF ~~AND~~STOCKHOLDERS’ ~~SUBSIDIARIES~~DEFICIT

STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE NINE MONTHS ENDED APRIL 30, 2021

(UNAUDITED)

	~~Common Stock~~	Common Stock							Preferred Stock C	~~Preferred Stock C~~					Preferred Stock D	~~Preferred Stock D~~
		Shares	~~Shares~~			Amount			Shares		~~Shares~~	Amount	~~Amount~~		Shares		~~Shares~~Amount	~~Amount~~		Additional Paid-in Capital	~~Additional Paid-in Capital~~	Treasury Stock		~~Treasury Stock~~	Noncontrolling Interest		~~Noncontrolling Interest~~	Accumulated Deficit		~~Accumulated Deficit~~	Total Stockholders’ Deficit		~~Total Stockholders' Deficit~~
Balance, July 31, 2019			93,118,077				$	93,030			—			$	—		8,000,000		$	8,000	$	7,382,579		$	(45,000	)	$	—		$	(10,539,338	)	$	(3,100,729	)
Balance, July 31, 2020		105,099,277			$	105,099			—		$	—			10,000,000	$	10,000		$	8,490,720	$	(45,000	)	$	—		$	(13,221,838	)	$	(4,661,019)
Shares issued to settle convertible debt			4,500,000					4,500														52,575												57,075
Shares issued for conversion of convertible debt		81,962,467				81,962			—			—			—		—			1,297,709		—			—			—			1,379,671
Shares issued for cash			2,000,000					2,000														73,000									—			75,000
Shares issued for settlement of payables		2,499,828				2,500			—			—			—		—			22,498		—			—			—			24,998
Shares issued for services			2,500,000					2,500									2,000,000			2,000		955,635												960,135
Net loss		—				—			—			—			—		—			—		—			—			(2,390,353	)		(2,390,353)
Shares issued for settlement of payables			3,000,000					3,000														27,000												30,000
Balance, July 31, 2021		189,561,572			$	189,561			—		$	—			10,000,000	$	10,000		$	9,810,927	$	(45,000	)	$	—		$	(15,612,191	)	$	(5,646,703)
Adjustment to equity			(18,800	)				69														(69	)											—
Shares issued for conversion of convertible debt		20,466,992				20,467			—			—			—		—			248,965		—			—			—			269,432
Net loss																															(2,682,500	)		(2,682,500	)
Shares issued for services		9,440,110				9,440			—			—			—		—			368,164		—			—			—			377,604
Balance, July 31, 2020			105,099,277				$	105,099			—			$	—		10,000,000		$	10,000	$	8,490,720		$	(45,000	)	$	—		$	(13,221,838	)	$	(4,661,019	)
Net loss		—				—			—			—			—		—			—		—			—			(966,491	)		(966,491)
Shares issued for conversion of convertible debt			75,567,554					75,568														1,101,331												1,176,899
Balance, October 31, 2021		219,468,674			$	219,468			—		$	—			10,000,000	$	10,000		$	10,428,056	$	(45,000	)	$	—		$	(16,578,682	)	$	(5,966,158)
Shares issued for settlement of payables			2,499,828					2,500														22,498												24,998
Net loss																															(1,723,459	)		(1,723,459	)
Balance, April 30, 2021			183,166,659				$	183,167			—			$	—		10,000,000		$	10,000	$	9,614,549		$	(45,000	)	$	—		$	(14,945,297	)	$	(5,182,581	)

See accompanying notes to the consolidated financial statements

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CANNAGISTICS , INC. AND SUBSIDIARIES

GLOBAL3PL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED APRIL 30, 2021

(UNAUDITED)

	For The Nine Months Ended
	For The Three Months Ended
	April 30, 2021			April 30, 2020
	October 31, 2021			October 31, 2020
Cash Flows from Operating Activities
Net loss	$	(1966,~~723,459~~491	)	$	(~~790~~1,~~432~~286,177)	)
Loss from discontinued operations		—			~~173,377~~—
Adjustments to reconcile net loss to net cash provided by operating activities:
Foreign currency adjustment		—			1,351
Settlement Fees on conversion of stock		—			13,000
Settlement Fees on conversion of stock		13,000			—
Penalty on convertible note payable		69,875			25,000
Penalty on convertible note payable		25,000
Loss on derivative liabilities		(130,909	)		452,944
Loss on derivative liabilities		33,589			—
Change in fair value of derivative liabilities		(128,541	)		525,913
Change in fair value of derivative liabilities		942,946			—
Amortization of debt discount		—			40,224
Amortization of debt discount		83,176			—
Accrued interest		351,918			—
Accrued interest receivable					(65,278	)
Stock based compensation		377,604			—
Accrued interest		—			305,249
Changes in assets and liabilities
Bad debt		—			(62,308	)
Accounts receivable and other receivables		(40,000	)		—
Stock based compensation					2,000
Prepaid expense		(10,000	)		—
Changes in assets and liabilities
Accounts payable and accrued expenses		108,034			139,278
Accounts receivable and other receivables		—			(20,383	)
Accounts payable - related parties		26,002			—
Prepaid expense		—			(5,268	)
Net cash used in operating activities of continuing operations		(342,508	)		(89,818)
Accounts payable and accrued expenses		356,130			147,514
Net cash used in operating activities discontinued operations		—			(1,868)
Net cash used in operating activities of continuing operations		(269,618	)		(314,178	)
Net cash used in operating activities	$	(342,508	)	$	(91,686)
Net cash used in operating activities discontinued operations		—			(173,377	)
Cash Flows from Financing Activities
Net cash used in operating activities	$	(269,618	)	$	(487,555	)
Proceeds from convertible notes, net of amortization of $425,000		425,000			96,000
Cash Flows from Investing Activities
Proceeds from promissory notes		—			—
Sale of equipment		—			(10	)
Proceeds from related parties		1,800			32,900
(Increase) decrease in restricted cash		—			152,181
Payments on promissory notes		—			—
Net cash used in investing activities		—			152,171
Payments on convertible notes		(51,836	)		—
Cash Flows from Financing Activities
Payments to related parties		(60,305	)		(34,600)
Proceeds from convertible notes, net of amortization of $12,000		384,305			99,000
Net cash provided by financing activities		314,659			94,300
Proceeds from promissory notes		—			165,000
Net increase in cash		(27,849	)		2,614
Proceeds from line of credit		—			276,321
Cash, beginning of period		30,007			685
Proceeds from loans		—			71,800
Cash, end of period		2,158			3,299
Proceeds from stock purchases					75,000
Supplemental disclosure of cash flow information
Proceeds from related parties		96,789			19,142
Cash paid for interest		—			5,227
Payments on loans		—			(12,176	)
Cash paid for tax		—			—
Payments on line of credit		—			(245,787	)
Non-cash investing and financing transactions
Payments on promissory notes					(2,500	)
Original issuance discount on convertible notes payable	$	425,000		$	9,000
Payments on convertible notes		(10,000	)		(45,000	)
Original issuance discount on promissory notes payable	$	84,000		$	—
Payments to related parties		(34,600	)		—
Conversion of notes payable, fees and derivative liabilities	$	151,752		$	636,202
Net cash provided by financing activities		436,494			400,800
Conversion of common stock payable	$	—		$	—
Net increase in cash		166,876			65,416
Cash, beginning of period		685			630
Cash, end of period	$	167,561		$	66,046
Supplemental disclosure of cash flow information
Cash paid for interest		—			—
Cash paid for tax		—			—
Non-cash investing and financing transactions
Original issuance discount on convertible notes payable	$	12,000		$	—
Conversion of notes payable, fees and derivative liabilities	$	1,176,899		$	—

See accompanying notes to the consolidated financial statements

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~~Cannagistics~~CANNAGISTICS, ~~Inc~~ INC., ~~and~~AND ~~Subsidiaries~~SUBSIDIARIES

~~Notes~~NOTES TO toCONSOLIDATED ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~April 30, 2021~~ (UNAUDITED)

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

Organization and Description of Business

Cannagistics, Inc. (Formerly FIGO Ventures, Inc., formerly Precious Investments, Inc.) (‘The Company’) was incorporated under the laws of the State of Nevada on May 26, 2004. The Company was an Exploration Stage Company with the principal business being the acquisition and exploration of resource properties.

The Company had allowed its charter with the state of Nevada to be revoked by the Secretary of State for failure to file the required annual lists and pay the required annual fees. Its last known officers and directors reflected in the records of the Secretary of State were unresponsive or stated they were no longer involved with the Company. The purported replacement officers and directors were unresponsive.

On September 14, 2012, NPNC Management, LLC filed a petition in the Eighth Judicial District Court in Clark County, Nevada and was appointed custodian of the Company on January 15, 2012.

On October 24, 2012, the interim board authorized the sale of 55,000,000 (2,200,000 split adjusted) shares of common stock for $6,000 to NPNC Management, LLC, in a private placement transaction exempt from the Securities Act of 1933, as amended, pursuant to section 4(2) thereof and the rules and regulations promulgated there under.

On March 1, 2017, the Company then entered into a joint venture agreement with Eddeb Management (“Eddeb”). The purpose of the joint venture is to build a fund for the purpose of trading in precious gems, notably, colored diamonds.

On November 16, 2017, the Company entered into an Agreement of Merger and Plan of Reorganization (the “Merger Agreement”) with American Freight Xchange, Inc., a privately held New York corporation (“American Freight”), and Shipzooka Acquisition Corp. (“Shipzooka Sub”), a newly formed wholly owned Nevada subsidiary of Precious Investments, Inc. In connection with the closing of this merger transaction, Shipzooka Sub merged with and into American Freight (the “Merger”) on December 5, 2017, with the filing of Articles of Merger with the Nevada Secretary of State and Certificate of Merger with the New York Division of Corporations.

The transaction resulted in the Company acquiring Subsidiary by the exchange of all of the outstanding shares of Subsidiary for 1,000,000 newly issued Series C Preferred shares of stock, $0.001 par value (the “Preferred Stock”) of Parent which have conversion and voting rights of 72.5 votes for each share, representing approximately 90.2% of the voting rights.

For accounting purposes, the transaction was treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a change in control, with the acquired company electing to become the successor issuer for reporting purposes. The accompanying financial statements have been prepared to reflect the assets, liabilities and operations of American Freight Xchange, Inc. exclusive of Precious Investments, Inc since all predecessor operations were discontinued.

As part of the transaction, amounts due to former officers were forgiven, with the balances recorded as Contributed Capital. For equity purposes, accumulated deficit shown are those American Freight Xchange, Inc. Shipzooka Acquisition Corp. is a dormant corporation.

On July 23, 2018, the Company amended the name of its subsidiary, KRG Logistics, Inc., to Global3pl, Inc. (an Ontario corporation).

On September 4, 2018, the Company incorporated Cannagistics, Inc., in the province of Ontario, Canada. This is intended to be a possible new line of business for the Company but is dormant at this time.

On April 17, 2019, we filed Articles of Merger with the Secretary of State of Nevada in order to effectuate a merger with our wholly owned subsidiary, Cannagistics, Inc. Shareholder approval was not required under Section 92A.180 of the Nevada Revised Statutes. As part of the merger, our board of directors authorized a change in our name to “Cannagistics, Inc.” and our Articles of Incorporation have been amended to reflect this name change.

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

On September 4, 2018 the Company incorporated Cannagistics, Inc., in the province of Ontario, Canada. This is intended to be a possible new line of business for the Company but is dormant at this time.

On September 26, 2019, the Board of Directors approved the registered spinout of its Global3pl, Inc., (a New York corporation) (“Global3pl”) subsidiary. Global3pl is to be a logistics technology provider, along with the American Freight Xchange and UrbanX Platforms that have been under development by the Company.

The Board of Directors also declared a stock dividend for all shareholders, with a record date of October 10, 2019. For every 50 shares of common stock of the Company, all shareholders of record on the record date will receive one share of common stock in Global3pl. Global3pl will also file a registration statement as part of its raise of capital to complete the development of American Freight Xchange, a North American freight broker-driven 3pl network to handle the management of long haul LTL (less than truckload), and specialty freight (white glove) services and Urbanx, a North American network of rush-messenger local trucking services for forward and reverse last mile delivery (including white glove service).

However, the Company has carefully reconsidered its position with respect to the previously announced and subsequently amended spin off of Global3pl, Inc., (a New York corporation). Due to the current situation resulting from the COVID-19 pandemic and especially in light of the development of the supply chain management strategy of the Company, it has been determined that the finalization of the development of the Global3pl platform will be integral and serve as the “engine” for the supply chain management of the Company. Therefore, at this time the “spin-off” has been indefinitely postponed until such time and it may make sense from a business standpoint. The Company has not issued any shares in the Global3pl, Inc (New York) subsidiary.

Effective October 1, 2019, the Company suspended operations of its subsidiary Global3pl, Inc., formerly known as KRG Logistics, Inc., (an Ontario corporation), suspended future operations related to the operations in Mississauga, Ontario. It is in the process of collecting accounts receivables still due and working on a plan to pay its payables. It has entered into an agreement with 10451029 Canada Inc., d/b/a Reliable Logistics, for the assignment and of the assets of Global3pl, Inc., (an Ontario Corporation). The transaction was completed on November 6, 2019. The Company anticipates formally liquidating and dissolving the subsidiary in the next fiscal Quarter. This is a separate corporation from Global3pl, Inc. (A New York corporation).

On May 6, 2021, the issuer (having been renamed, immediately prior to this Holding Company Reorganization, from “Cannagistics, Inc.” to “Global Transition Corporation”) completed a corporate reorganization (the “Holding Company Reorganization”) pursuant to which Global Transition Corporation, as previously constituted (the “Predecessor”) merged with a company which became a direct, wholly-owned subsidiary of a newly formed Delaware Corporation, Cannagistics, Inc. (in this capacity referred to as the “Holding Company”), which became the successor issuer. In other words, the Holding Company is now the public entity, albeit with the same name as the original issue or the Predecessor. The Holding Company Reorganization was effected by a merger conducted pursuant to Delaware General Corporation Law (the “DGCL”), which provides for the formation of a holding company without a vote of the stockholders of the constituent corporations (such constituent corporations being the Predecessor, as renamed to Global Transition Corporation and the newly formed Cannagistics, Inc.).

In accordance with the DGCL, Global3pl, Inc. (“Merger Sub”), another newly formed Delaware Corporation and, prior to the Holding Company Reorganization, was an indirect, wholly owned subsidiary of the Holding Company, merged with and into the Predecessor, with Merger Sub surviving the merger as a direct, wholly owned subsidiary of the Holding Company (the “Merger”). The Merger was completed pursuant to the terms of an Agreement and Plan of Merger among the Predecessor, the Holding Company and Merger Sub, dated May 6, 2021 (the “Merger Agreement”).

As of the effective time of the Merger and in connection with the Holding Company Reorganization, all outstanding shares of common stock and preferred stock of the Predecessor were automatically converted into identical shares of common stock or preferred stock, as applicable, of the Holding Company on a one-for-one basis, and the Predecessor’s existing stockholders and other holders of equity instruments, became stockholders and holders of equity instruments, as applicable, of the Holding Company in the same amounts and percentages as they were in the Predecessor immediately prior to the Holding Company Reorganization.

The executive officers and board of directors of the Holding Company are the same as those of the Predecessor in effect immediately prior to the Holding Company Reorganization.

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For purposes of Rule 12g-3(a), the Holding Company is the successor issuer to the Predecessor, now as the sole shareholder of the Predecessor. Accordingly, upon consummation of the Merger, the Holding Company’s common stock was deemed to be registered under Section 12(b) of the Securities Exchange Act of 1934, as amended, pursuant to Rule 12g-3(a) promulgated thereunder.

On May 21, 2021, the Company incorporated Global3pl Logistical Technologies, Inc., (a Delaware corporation) On May 21, 2021. It is a wholly owned subsidiary of Cannagistics, Inc.

The previously executed Letter of Intent with Recommerce Group, Inc. has expired, although the Company has continued discussions with Recommerce Group, Inc. about a potential business combination.

On July 1, 2021, Cannagistics, Inc. (the “Company”) entered into a Reorganization and Stock Purchase Agreement (the “Agreement”) with Availa Bio, Inc. (“Availa”) and The Integrity Wellness Group, Inc., formerly known as Cannaworx Holdings, Inc. (“Integrity Wellness”). Pursuant to the Agreement, the Company purchased 100% of the outstanding capital stock of Integrity Wellness from Availa in exchange for 4,400,000 shares of the Company’s Series F Convertible Preferred Stock (the “Series F”).

The Agreement provides for certain post-closing actions to be taken by the Company, including (i) effecting a 1-for-100 reverse stock split of the Company’s common stock (later modified to be 1-for-40 reverse stock split), (ii) the Company using its best efforts to consummate a $5,000,000 financing, some of the proceeds of which to be used to pay the Note as defined below, (iii) the Company effecting a name change, (iv) the officers and directors of the Company consisting of Rob Gietl, President and Director and James W. Zimbler, Vice-President and Director, and (v) the holders of the Company’s 10,000,000 outstanding shares of Series D Convertible Preferred Stock converting their shares into a total of 745,000,000 shares of the Company’s common stock pursuant to conversion agreements with such holders.

In connection with the Agreement, the Company borrowed $175,000 from Cimarron Capital, Inc. (“Cimarron”) and issued Cimarron two separate Promissory Notes for $150,000 and $200,000, respectively, both dated July 6, 2021 (the “Notes”). The Notes bears 0% interest and is payable upon the earlier of the closing of a securities offering or July 6, 2022.

In addition, pursuant to the Agreement the Company, either directly or through Integrity Wellness which as a result of the share exchange became a wholly owned subsidiary of the Company, entered into the following employment and consulting agreements:

The Company previously entered into a Consulting Agreement with Rob Geitl dated July 1, 2020, for an initial term of three years. Under this Consulting Agreement, Mr. Geitl will serve as the Chief Executive Officer of the Company and will be compensated as follows: (i) (A) for the first year of the initial term, $15,000 per month, (B) for the second year of the initial term, $17,500 per month, and (C) for the third year of the initial term, $20,000 per month; and (ii) a number of shares of restricted common stock equal to 5% of the Company’s issued and outstanding common stock, or 9,158,333 shares, with one-half of such shares vesting in 18 months and the other half vesting of such shares at the end of the initial term.

The Company entered into a Consulting Agreement with Emerging Growth Advisors, Inc., wholly owned by James W. Zimbler, dated July 1, 2021, for an initial term of three years. Under this Consulting Agreement, Emerging Growth Advisors, Inc. will be compensated 12,500 per month and a Health Insurance Allowance of up to $1,500 per month. The Agreement also provides that Emerging Growth Advisors, Inc., shall receive 900,000 shares of Series E Preferred Stock in exchange for the cancellation of 6,000,000 shares of Series D Preferred Stock in the name of Emerging Growth Advisors, Inc.

The Company entered into a Consulting Agreement with Cimarron dated July 1, 2021, for an initial term of 30 months. Under this Consulting Agreement, Cimarron will provide the Company certain strategic and business development services in exchange for (i) 900,000 shares of its Series E Convertible Preferred Stock (the “Series E”), (ii) a monthly fee of $5,000, and (iii) 10% of the net proceeds of any business generated for the Company by Cimarron.

The Company entered into a Consulting Agreement with Leonard Tucker LLC (“LT LLC”) dated July 1, 2021, for an initial term of 30 months. Under this Consulting Agreement, LT LLC will provide the Company with certain business and compliance services in exchange for (i) 1,800,000 shares of its Series E, (ii) a monthly fee of $12,500, and (iii) 10% of the net proceeds of any business generated for the Company by LT LLC.

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The Agreement also contains customary indemnification obligations in the event of a material breach of any representation, warranty, agreement, or covenant contained in the Agreement.

On September 15, 2021, the Company filed a DEF14C Information Statement. The DEF14C Information Statement set out the plan of the Company to amend its name to The Integrity Wellness Group, Inc., or some other similar name, and to effectuate a reverse stock split of its common stock of one (1) new share of common stock for each forty (40) old shares of common stock . The corporate action change has been submitted to FINRA on October 29, 2021, and the Company is awaiting a response.

Current Projects in Development

Integrity Wellness

Our Products

Through Integrity Wellness we currently have 4 developed products, the majority of which we offer at retail prices ranging from approximately $30 to $60 (excluding our veterinary and agricultural product offerings). [Our current developed products are either backlogged, in the process of being produced or are ready for production.] We have received approval from the U.S. Food and Drug Administration (the “FDA”) for 4 of our products’ claims, and we have FDA applications in process for 15 products’ claims, as indicated below. We have patents issued for six of our products, and 15 patent applications pending, as indicated below. However, we presently lack the capital to produce sufficient inventory and, accordingly, will be reliant upon raising additional funds in this offering to further commercialize these products If we are unable to raise sufficient funds in this offering or through other means, the production and distribution of these products may be delayed or discontinued. Further, some of the patent rights and licenses for the below products are subject to uncertainty due to potential procedural and documentation issues in connection with the July 2021 Integrity Wellness acquisition. See the risk titled “If we cannot obtain or protect intellectual property rights related to our products, including due to uncertainties surrounding our acquisition of Integrity Wellness and its purported product portfolio, we may not be able to compete effectively in our markets” for more information. The following is a brief description our current products portfolio:

Products with Issued Patents Canagel - (Anhydrous Hydrogel Composition and delivery system)

Canagel ®,- (Anhydrous Hydrogel Composition and delivery system)

Patented Full Spectrum Phytocannabinoid delivery with FDA approved pain claim. The one and only FDA-approved pain claim in the market for an oral CBD product.

We have Exclusive World-wide access to Patent No. US 10,143,755

Patent Issued: December 4, 2018

Patent Expires: December 8, 2037

Comments: Please note this patent is owned by Acupac Packaging Inc., however an exclusive worldwide license agreement has been granted to SkinScience labs, Inc.

Silverpro ®, - (FDA Cleared)

Patented Compression Fabric in the marketplace with FDA pain clearance

Patent No. US 9,878,175 (European Patent has been allowed)

Patent Issued: January 30, 2018

Patent Expires: June 2036

Thin Film Toothpaste Strip

Product Name: KidzStrips ®,

Patented Fluoride doses-controlled children’s toothpaste strip

(2 Patents issued) Patent No. US 9,656,102

Patent Issued: May 23, 2017

Patent Expires: December 21, 2033

Patent No. US 10,105,296

Patent Issued: October 23, 2018

Patent Expires: December 31, 2034

ImmuniZin ^TM (Immune Booster)

Some ImmunaZin Ingredients and Expectations

● Pepsin -- the main ingredient now famous for rapid recovery. We take pepsin and break it down into fragmented particles that are better absorbed into the digestive tract. These pepsin fragments directly modulate immune system activity by inducing potent T-cell response resulting in boosted immunity.

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● Hemp seed oil helps balance healthy cholesterol levels, fights depression and anxiety, improves eye health, promotes brain health, reduces metabolic syndrome, reduces inflammation, fights autoimmune disease and mental disorders, reduces fatty liver, promotes bone and joint health and improves sleep and skin.

Irreversibly-inactivated pepsinogen fragments for modulating immune function (Immune Booster- FDA Cleared)

Patent No. US 8,309,072

Patent Issued: November 13, 2012

Patent Expires: June 18, 2029

Novel Fertilizer

Patent No. US 9,981,886

Patent Issued: May 29, 2018

Patent Expires: August 12, 2036

Pending Patent Applications

Cannabinoid, Menthol and Caffeine Dissolvable Film Composition, Devices and Methods

US Application No. 16/558,872; International Application PCT/US2019/049309

Cannabinoid and Menthol Gum and Lozenge Compositions and Methods

US Application No. 16/555,022 (US Application No. 62/869,121 is a provisional US application for this US application); International Application PCT/US2019/048740

Cannabinoid and Anesthetic Gum and Lozenge Compositions and Methods

US Application No. 16/554,930 (US Application No. 62/869,118 is a provisional US application for this US application); International Application PCT/US2019/048728

Cannabinoid and Anesthetic Compositions and Methods

US Application No. 16/419,274; International Application PCT/US2019/048690

C-Biscuit ^TM

Hemp rich suppository for racehorse industry for rapid recovery from injury Veterinary Cannabinoid, Menthol and Anesthetic Compositions and Methods

Application No. 16/555,241; International Application PCT/US2019/048789

Veterinary Cannabinoid and Menthol Compositions and Methods

Application No. 16/419,392; International Application PCT/US2019/048695

Cannabinoid and Menthol Gel Compositions, Patches and Methods

US Application No. 16/558,780; International Application PCT/US2019/049294

Cannabinoid and Menthol Compositions and Methods

US Application No. 16/419,336; International Application PCT/US2019/048691

Thin Film Toothpaste Strip, European Application

Product Name: KidzStrips ®

Application No. 14876319.6

Thin Film Toothpaste Strip, Eurasian Application

Product Name: KidzStrips ®

Application No. 201600502/28.

U.S. Application No. 17/412442

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Fertilizer

Product Name: HydroSoil ®,

Water retaining Hemp enhanced fertilizer, water plant once every two weeks

U.S. Application No. 15/986,111

Inactivated Pepsin Fragment (IPF) and Full Spectrum Cannabidiol (CBD) Compositions and Methods

U.S. Provisional Patent Application No. 62/859,422

Skin Cream

Relates to compositions and methods for the prevention and treatment of skin disorders and for the rejuvenation of the skin. In particular, the application describes topical compositions and methods of treatments comprising the combined use of one or more cannabinoids and one or more hydroxy acids in a suitable carrier.

U.S. Application No. Application 15/233,251

Other Products

IcyEase

Adhesive Ice Pack for muscle/joint pain to cool surface and address pain.

Patent-pending, FDA pain claim in progress

Slim-D

Appetite-suppressant oral strip with 50 mg Hoodia & 10 mg Full Spectrum Phytocannabinoid

Energy Lighting Strips

High caffeine fast dissolving oral energy strip with Matcha Green Tea and Hemp/Full Spectrum Phytocannabinoid

Micro Voltage Trans Derm C

for pain with unique and superior absorbing features due to wearer‘s movement generated Micro Voltage

CBD 600

Hemp Rich oral tincture with FDA cleared legal pain claim. One and only with FDA clearance.

Global3PL Inc. (NY)

During the past 242 ~~months~~plus years, Global3PL Inc. (a New York Corporation) has consulted with logistics and technology experts to design and begin the development of a best-of-breed, first-of-kind information technology system. To date, about eighteen (18) months’ worth of custom coding by our contractor has been completed with an expectation of an additional 2-3 months of work still required for it to be ready for testing. Upon completion, it is intended that clients shall be able to login to the system to communicate and transact business with the Company in real-time, as it relates to aspects of the client’s supply chain. This can include the tracking of inbound raw material from various vendors, the manufacturing schedule of finished goods, inventory tracking of raw materials and finished goods, international compliance documentation, and the contacting and tracking of the shipping of the finished goods to their delivery destination(s). Though the Company has high expectations for the functionality of the new system, it does not make any assurances that the system will be completed, shall work as planned if completed, nor be embraced by potential clients as intended.

Therefore Global3pl, Inc. (NY) will be a logistics subsidiary serving the just-in-time inventory & distribution industry, as well as the special and general commodities sector of the North American freight industry. “Just-in-time” is an industry word for delivery a product or other item to an end user right before it is needed. It is used in place of an end user storing a large quantity of inventory. Shippers will be able to sync to our system for a real-time 360 views of their product shipments, including, location updates, verification, and risk mitigation. The customer will be able to Geolocation GPS tracking of freight movement; create automated notifications with consolidated and automated notifications, payments, and reporting. The Shipper interface will also allow customers to push or post freight orders. The software system will also allow for lead-generation, data analysis, collaboration among shippers, Automated billing and collections, and automated payments. The SAAS-based platform ecosystem will fully integrate all aspects of the Company’s operations, from receiving raw materials for clients, through product manufacturing, document compliance, distribution, and shelf-life batch tracking. It had been expected to be operational in the third or fourth quarter of 2020, however due to economic conditions from the COVID-19 Pandemic, and the need for funding related to this Offering, to complete the process, we have been delayed and hope to be operational by the end of the second quarter of 2021.

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

automated notifications, payments, and reporting. The Shipper interface will also allow customers to push or post freight orders. The software system will also allow for lead-generation, data analysis, collaboration among shippers, Automated billing and collections, and automated payments. The SAAS-based platform ecosystem will fully integrate all aspects of the Company’s operations, from receiving raw materials for clients, through product manufacturing, document compliance, distribution, and shelf-life batch tracking. It had been expected to be operational in the third or fourth quarter of 2020, however due to economic conditions from the COVID-19 Pandemic, and the need for funding related to this Offering, to complete the process, we have been delayed and hope to be operational by the end of the second quarter of 2021.

The SaaS-based platform ecosystem will fully integrate all aspects of the Cannagistics operations, from receiving raw materials for clients, through product manufacturing, document compliance, distribution, and shelf-life batch tracking. It is intended to operate with four separate brands or identities, that being Global3pl, AFX (the acronym for American Freight Xchange) UrbanX and Cannagistics.

Our targeted client markets (OTC, pharmaceutical, nutraceutical, cosmetics, and Hemp/CBD-related products) are heavily regulated, and highly fragmented from state to state, and country to country. Every country has their own certified product standards;, such as the FDA in the U.S. Target client markets require batch product tracking throughout shelf life and GMP certified standards in manufacturing. There is currently, we believe, a lack of seamless automation across the supply chain.

Our solution offers a fully automated and scalable service for end -to -end information, manufacturing, sales, and tracking. We believe the benefits achieved from our logistics services for clients are as follows:

Ability to track products from ingredient stage all the way to sale;

Provides 24/7 visibility;

Expands collaboration;

Provide a single point of access:

Incorporates big data and client behavior statistics;

Reduces redundancy;

Increases productivity;

§ Offers a subscription -based model; and

Capable of supporting multiple client usage.

GMP Certified Facilities

We have plans to develop a GMP certified biotech lab in Malta with a fundamental skill in initially the cosmetic and then potentially the medicinal, nutraceutical and cannabis/hemp/CBD industries. Our plan is to have this Malta lab cater to customers in the EU. We also plan to potentially have other facilities that will cover our target customers in the US, Canada and Columbia, potentially located in Baton Rouge, Toronto and Bogotá, respectively.

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

If we are successful in fully developing such capabilities we intend to seek out and employ a team of a multidisciplinary professionals in the pharmaceutical, nutraceutical and over the counter industries, and utilize complex supply chain and logistics management, unique technology and intellectual property. Cannagistics’ Lab’s purpose is to add value and offer a progress proposal to the Malta medicinal cannabis industry, based on its interest to support, educate, take advantage of and focus on the development of potentially breakthrough medicinal cannabis products with different therapeutic uses in patients around the world to whom science and traditional medicine simply could not reach. Such products will be subject to testing and certification from various governmental agencies, which may be a difficult expensive and time-consuming process. Our vision and knowledge will potentially focus on GMP biopharmaceutical cannabis-based medicines, - with the highest standards starting from the raw material - for multiple applications in patients, using latest technology, ancestral knowledge, scientific studies, with an exceptional team of research and development following the strictest standards and good distribution practices for export and national use.

We have no manufacturing plant or GMP facilities at the present time. As we continue our search to find suitable facilities, we believe that we will need to have the following areas for the production process, which will implement the safety protocols required for the project to be developed.

§ Area of receipt: Area of the property that has been destined for the receipt of the raw material and supplies that arrives for the manufacturing process.

§ Raw material area: Warehouse equipped with the security measures required for the storage of the raw material.

§ Production and manufacturing area: Sector where the manufacturing process will be carried out in which the transforming plant will be in order to obtain the final product.

§ Reagents and supplies area: Warehouse equipped with the security measures required for the storage of reagents and supplies.

§ Solid waste area: Sector destined for the storage of solid waste produced during the manufacturing process.

§ Finished product area: Warehouse equipped with the security measures required for the storage of the finished product.

§ Dispatch area: Sector from where the process of dispatch and delivery of the finished product to its final recipient will take place

§ Administrative area: Sector of the factory where administrative, accounting and security activities will be developed.

Competition

The Global Supply Chain management area has many different entities, all competing. Some are very large. However, our model is significantly different from most of the providers already operating.

To be successful in the global supply chain management area, a company must be involved in planning the function of the entire process, from start to finish, or end to end. We intend to concentrate our model on the cannabis, nutraceutical, pharmaceutical and cosmetic areas. We believe this makes our approach unique and distinguishable at this time.

There is no guarantee that a larger, more fully funded, company will determine to seek to gain access to the same business.

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

Intellectual Property

Our Global3pl SAAS Platform is a proprietary software developed by the Company. The SaaS-based platform ecosystem will fully integrate all aspects of the Cannagistics operations, from receiving raw materials for clients, through product manufacturing, document compliance, distribution, and shelf-life batch tracking.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

The consolidated financial statements include the accounts of Cannagistics, Inc. and its wholly owned subsidiaries American Freight Xchange, Inc and Global3pl, Inc. (Ontario), formerly known as KRG Logistics, Inc. All significant inter-company transactions and balances have been eliminated.

Basis of Presentation

We have summarized our most significant accounting policies for the fiscal ~~period~~years ended July 31, 2020., and July 31, 2020

Unaudited Consolidated Interim Financial Statements

These unaudited condensed consolidated interim financial statements have been prepared on the same basis as the annual financial statement and should be read in conjunction with those annual financial statements filed on Form 10-K for the year ended July 31, 2020. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results for a full year or for any future period.

Use of Estimates

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

COVID-19 Pandemic Update

In March 2020, the World Health Organization ~~declared~~ declared a global health pandemic related to the outbreak of a novel coronavirus. The COVID-19 pandemic adversely affected the company's financial performance in the third and fourth quarters of fiscal year 2020 and could have an impact throughout fiscal year 2021. In response to the COVID-19 pandemic, government health officials have recommended and mandated precautions to mitigate the spread of the virus, including shelter-in-place orders, prohibitions on public gatherings and other similar measures. As a result, the company and certain of the company's customers and suppliers temporarily closed locations beginning late in the second quarter of fiscal year 2020, continuing into the third quarter of fiscal year 2020. There is uncertainty around the duration and breadth of the COVID-19 pandemic, as well as the impact it will have on the company's operations, supply chain and demand for its products. As a result, the ultimate impact on the company's business, financial condition or operating results cannot be reasonably estimated at this time.

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

supply chain and demand for its products. As a result, the ultimate impact on the company's business, financial condition or operating results cannot be reasonably estimated at this time.

Income Taxes

The Company accounts for income taxes under ASC 740 "“Income Taxes,"” which codified SFAS 109, "Accounting for Income Taxes" and FIN 48 “Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks.

The Company reviews the terms of convertible loans, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company may issue freestanding options or warrants to employees and non-employees in connection with consulting or other services. These options or warrants may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity.

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Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at fair value and then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. To the extent that the initial fair values of the freestanding and/or bifurcated derivative instrument liabilities exceed the total proceeds received an immediate charge to income is recognized in order to initially record the derivative instrument liabilities at their fair value.

The discount from the face value of the convertible debt instruments resulting from allocating some or all of the proceeds to the derivative instruments, together with the stated rate of interest on the instrument, is amortized over the life of the instrument through periodic charges to income, using the effective interest method.

The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative ~~instrument~~instruments ~~are~~is not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.

Fair value of financial instruments

The Company’s financial instruments consist of its liabilities. The carrying amount of payables and the loan payable – related party approximate fair value because of the short-term nature of these items. The promissory notes, and convertible notes payables are measured at amortized cost using the effective interest method, which approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate.

Fair value is defined under FASB ASC Topic 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for an asset or liability in an orderly transaction between participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The levels are as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities

The following is a listing of the Company’s liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of ~~April~~October 3031, 2021, and July 31, 2020:

April 30, 2021

October 31, 2021

Level 1

Level 2

Level 3

Total

Derivative liabilities

—

~~551~~117,~~652~~969

July 31, 2020

July 31, 2021

Level 1

Level 2

Level 3

Total

Derivative liabilities

—

~~205~~529,~~796~~171

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

Accounts receivable and allowance for doubtful accounts

Accounts ~~receivable~~receivables are stated at the amount management expects to collect. The Company generally does not require collateral to support customer receivables. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. As of ~~April~~October 3031, 2021, and ~~2020~~July 31, 2021, the allowance for doubtful accounts was $0 and $0, respectively.

Revenue Recognition

The Company recognizes revenue related to transaction from its third-party logistics sales by performing the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (ivi) allocate the transaction price to to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ~~The~~ The Company applies the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company evaluates the goods or services promised within each contract related performance obligation and assesses whether each promised good or service is distinct. The Company recognizes as revenue, the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Amounts invoiced or collected in advance of product delivery or providing services are recorded as unearned revenue or customer deposits. The company accrues for sales returns, bad debts, and other allowances based on its historical experience.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (Topic 606) which establishes revenue recognition standards. ASU 2014-09 was effective for annual reporting periods beginning after December 15,2017. We adopted ASU 2014-09 effective August 1, 2018. ASU 2014-09 has not had a significant effect on the Company’s financial position and results of operations.

Foreign Currency

FASB ASC Topic 830, Foreign Currency Matters (formerly FASB Statement No. 52, Foreign Currency Translation) provides accounting guidance for transactions denominated in a foreign currency, and for operations undertaken in a foreign currency environment. To prepare consolidated financial statements, an entity translates all functional currency financial statements into a single reporting currency. The same applies if an entity uses different currencies for reporting purposes and for its functional currency. The company reports its currency in US dollars.

Stock-Based Compensation

The Company measures expenses associated with all employee stock-based compensation awards using a fair-value method and record such expense in our consolidated financial statements on a straight-line basis over the requisite service period.

Leases

In February 2016, FASB issued ASU-2016-02 (Topic 842) “Leases”, provides accounting guidance for leases, recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018. Effective August 1, 2019, the Company implemented ASU 2016-02 under the modified retrospective method. As a result, the Company recognized right of use assets of $54,475 and lease liabilities of $57,064. During the year ended July 31, 2021, the Company terminated its’ existing lease and entered a new lease on a month-to-month basis. As such, the Company no longer has a right of use asset or lease liability at July 31, 2021.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies the measurement of expected credit losses of certain financial instruments, including trade receivables, contract assets, and lease receivables. This standard will be effective for the Company beginning August 1, 2020. The Company does not believe that this standard will have a material impact on its’ consolidated financial statements.

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~~Cannagistics~~In August 2020, ~~Inc~~the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and ~~Subsidiaries~~will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures. See Note 6 for convertible notes issued during the three months ended October 31, 2021 to which this ASU applies.

Notes to Financial Statements

April 30, 2021

NOTE 3 – GOING CONCERN

Management does not expect existing cash as of ~~April 30~~October 31, 2021, to be sufficient to fund the Company’s operations for at least twelve months from the issuance date of these ~~April~~October 3031, 2021, financial statements. These financial statements have been prepared on a going concern basis which assumes the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of ~~April~~October 3031, 2021, the Company has an accumulated deficit of $1431,~~890~~538,~~153~~682 , and has not yet generated material revenue from operations, and will require additional funds to maintain its operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern within one year after the consolidated financial statements are issued. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The Company intends to finance operating costs over the next twelve months through its existing financial resources and we may also raise additional capital through equity offerings, debt financings, collaborations and/or licensing arrangements. If adequate funds are not available on acceptable terms, we may be required to delay, reduce the scope of, or curtail, our operations. The accompanying consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 4 – DISCONTINUED OPERATIONS

On November 6, 2019, the Company discontinued its operations of subsidiary Global3pl, Inc., formerly known as KRG Logistics, Inc., (an Ontario corporation) and sold the assets of $54,296 for $10 dollars. As such, the assets of KRG Logistics, Inc. were removed from the accounts, and all remaining liabilities were classified as Discontinued Operations in the accompanying Balance Sheets. As of ~~April~~October 3031, 2021, and July 31, ~~2020~~2021, the summaries of liabilities pertaining to discontinued operations were as follows:

		April 30,		July 31,
		October 31, 2021		July 31, 2021
		2021		2020
Accounts payable		$	460,262	$	460,262
Accounts payable	$		460,262	$	462,130
Royal Bank line of credit			289,242		289,242
Unearned revenue			14,833		14,833
Accrued liabilities			64,663		64,663
Custom duties & GST payable			6,019		6,019
HST			2,759		2,759
Liabilities of discontinued operations	$	$	837,778	$	~~839~~837,~~646~~778

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

NOTE 5 – PROMISSORY NOTES

Promissory notes payable as of ~~April~~October 3031, 2021, and July 31, ~~2020~~2021, consisted of the following:

Description	~~April~~October 3031, 2021		July 31, ~~2020~~2021
Note payable dated March 8, 2018, matured March 8, 2019, bearing interest at 10% per annum.	$	30,000	$	30,000
Note payable dated July 18, 2018, matured July 18, 2019, bearing interest at 8% per annum.	$	135,000	$	135,000
Note payable dated February 4, 2020, matured February 4, 2021, bearing interest at 18% per annum.	$	5,000	$	5,000
Total	$	170,000	$	170,000
Note payable dated June 6, 2021, matured June 6, 2022, bearing interest at 8% per annum.	$	200,000	$	200,000
Less current portion of long-term debt	$	170,000	$	170,000
Note payable dated June 6, 2021, matured June 6, 2022, bearing interest at 8% per annum.	$	150,000	$	150,000
Total	$	520,000	$	520,000
Less current portion of long-term debt	$	520,000	$	520,000
Total long-term debt		—		—

Interest expense for the ~~nine~~three months ended ~~April~~October 3031, 2021, and 2020 ~~was~~, was $113,~~035~~705 and $123,~~885~~705, respectively.

NOTE 6 - CONVERTIBLE DEBT

Convertible debt as of ~~April~~October 3031, 2021, and July 31, ~~2020~~2021, consisted of the following:

Description	~~April~~October 3031, 2021			July 31, ~~2020~~2021
Convertible note agreement dated November 1, 2013 in the amount of $30,000 payable and due on demand bearing interest at 12% per annum. Principal and accrued interest is convertible at $.002250 per share.	$	11,041		$	11,041
Convertible note agreement dated November 1, 2013, in the amount of $30,000 payable and due on demand bearing interest at 12% per annum. Principal and accrued interest is convertible at $.002250 per share.	$	11,041		$	11,041
Convertible note agreement dated February 20, 2018 in the amount of $1,034,000 payable and due on demand bearing interest at 10% per annum. Principal and accrued interest is convertible at $.028712 per share.	$	1,034,000		$	1,034,000
Convertible note agreement dated February 20, 2018, in the amount of $1,034,000 payable and due on demand bearing interest at 10% per annum. Principal and accrued interest is convertible at $.028712 per share.	$	1,034,000		$	1,034,000
Convertible note agreement dated March 13, 2019 in the amount of $800,000 payable and due on March 20, 2020 bearing interest at 24% per annum.	$	800,000		$	800,000
Convertible note agreement dated March 13, 2019, in the amount of $800,000 payable and due on March 20, 2020, bearing interest at 24% per annum.	$	800,000		$	800,000
Convertible note agreement dated June 28, 2019 in the amount of $300,000 payable and due on June 28, 2020 bearing interest at 20% per annum.	$	300,000		$	300,000
Convertible note agreement dated June 28, 2019, in the amount of $300,000 payable and due on June 28, 2020, bearing interest at 20% per annum.	$	300,000		$	300,000
Convertible note agreement dated August 6, 2019 in the amount of $31,500 payable and due on August 6, 2020 bearing interest at 20% per annum.	$	31,500		$	31,500
Convertible note agreement dated August 6, 2019, in the amount of $31,500 payable and due on August 6, 2020, bearing interest at 20% per annum.	$	31,500		$	31,500
Convertible note agreement dated August 19, 2019 in the amount of $3,800 payable and due on August 19, 2020 bearing interest at 24% per annum.	$	3,800		$	3,800
Convertible note agreement dated August 19, 2019, in the amount of $3,800 payable and due on August 19, 2020, bearing interest at 24% per annum.	$	3,800		$	3,800
Convertible note agreement dated September 4, 2019 in the amount of $36,500 payable and due on September 4, 2020 bearing interest at 20% per annum.	$	36,500		$	36,500
Convertible note agreement dated September 4, 2019, in the amount of $36,500 payable and due on September 4, 2020, bearing interest at 20% per annum.	$	36,500		$	36,500
Convertible note agreement dated December 4, 2019 in the amount of $95,000 payable and due on December 4, 2020 bearing interest at 12% per annum.	$	147,500		$	95,000
Convertible note agreement dated December 4, 2019, in the amount of $95,000 payable and due on December 4, 2020, bearing interest at 12% per annum.	$	147,500		$	147,500
Convertible note agreement dated February 10, 2020 in the amount of $15,000 payable at February 10, 2021 bearing interest at 12% per annum.	$			$	15,000
Convertible note agreement dated April 15, 2020, in the amount of $31,500 payable at April 15, 2021, bearing interest at 10% per annum, net of discount.	$	15,887		$	15,877
Convertible note agreement dated February 21, 2020 in the amount of $47,500 payable at February 21, 2021 bearing interest at 12% per annum.	$			$	47,000
Convertible note agreement dated December 2, 2020, in the amount of $40,000 payable and due on December 2, 2021, bearing interest at 12% per annum.	$	40,000		$	40,000
Convertible note agreement dated February 28, 2020 in the amount of $67.500 payable at February 28, 2021 bearing interest at 12% per annum.	$			$	75,000
Convertible note agreement dated April 6, 2021, in the amount of $53,000 payable and due on April 6, 2022, bearing interest at 12% per annum.	$	—		$	53,000
Convertible note agreement dated April 15, 2020 in the amount of $31,500 payable at April 15, 2021 bearing interest at 10% per annum, net of discount.	$	15,887		$	35,000
Convertible note agreement dated April 7, 2021, in the amount of $111,555 payable and due on April 7, 2022, bearing interest at 10% per annum.	$	111,555		$	111,555
Convertible note agreement dated December 2, 2020 in the amount of $40.000 payable and due on December 2, 2021 bearing interest at 12% per annum.	$	40,000		$	—
Convertible note agreement dated April 12, 2021, in the amount of $43,000 payable and due on April 12, 2022, bearing interest at 12% per annum.	$	29,500		$	43,000
Convertible note agreement dated April 6, 2021 in the amount of $53,000 payable and due on April 6, 2022 bearing interest at 12% per annum.	$	53,000		$	—
Convertible note agreement dated April 20, 2021, in the amount of $43,750 payable and due on April 7, 2022, bearing interest at 12% per annum.	$	65,625		$	43,750
Convertible note agreement dated April 7, 2021 in the amount of $111,555 payable and due on April 7, 2022 bearing interest at 10% per annum.	$	111,555		$	—
Convertible note agreement dated August 5, 2021, in the amount of $500,000 payable and due on August 5, 2022, non-interest bearing.	$	500,000		$	—
Convertible note agreement dated April 12, 2021 in the amount of $43.000 payable and due on April 12, 2022 bearing interest at 12% per annum.	$	43,000		$	—
Convertible note agreement dated August 10, 2021, in the amount of $150,000 payable and due on August 10, 2022, non-interest bearing.	$	150,000		$	—
Convertible note agreement dated April 20, 2021 in the amount of $43,750 payable and due on April 20, 2022 bearing interest at 12% per annum.	$	43,750		$	—
Convertible note agreement dated August 23, 2021, in the amount of $200,000 payable and due on August 23, 2022, bearing interest at 12% per annum .	$	200,000		$	—
Unamortized discount		(366,820	)		(58,087)
Convertible notes total:	$	3,481,533		$	2,631,533
Convertible notes total:	$	2,304,715		$	2,426,254

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~~Cannagistics~~The Company amortizes the discounts arising from on-issuance discounts and derivative liabilities (see discussion below) over the term of the convertible promissory notes using the straight-line method which is similar to the effective interest method. During the three months ended October 31, ~~Inc~~2021, the Company amortized $238,396 to interest expense. As of October 31, ~~and~~2021, ~~Subsidiaries~~discounts of $569,833 remained for which will be amortized through August 2022.

~~Notes~~On toAugust ~~Financial~~5, ~~Statements~~2021, the Company issued FirstFire Global Opportunities Fund LLC, a Delaware limited liability company an Original Issue Discount $500,000 Promissory Note with a net amount of $250,000 from August 6, 2021. The Note bears 0% interest and is payable August 5, 2022, unless converted into shares of common stock by the Holder at the conversion price of $0.01 per share.

~~April~~On 30August 10, 2021, the Company issued GS Capital Partners LLC, a New York limited liability company an Original Issue Discount $150,000 Promissory Note, with a net amount of $75,000, from August 11, 2021. The Note bears 0% interest and is payable August 10, 2022, unless converted into shares of common stock by the Holder at the conversion price of $0.01 per share.

~~The~~ On August 25, 2021, the Company ~~recognized~~issued $0GW ofHoldings Group ~~debt~~LLC, ~~discount~~a ~~accretion~~New ~~expense~~York onlimited ~~the~~liability ~~above~~company ~~notes.~~an ~~Interest~~Original ~~expense~~Issue ~~related~~Discount to$200,000 ~~these~~Promissory ~~notes~~Note, ~~for~~with ~~the~~a ~~nine~~net ~~months ended~~amount ~~April~~of 30$100,000, from August 23, 2021. The Note bears 0% interest and ~~2020~~is ~~was~~payable ~~$304~~August 23,~~188~~ ~~and~~2022, unless converted into shares of common stock by the Holder at the conversion price of $~~284,564~~0.01 per share.

On October 26, 2021, the Company issued Emerging Capital Strategies, an Original Issue Discount $168,000 Promissory Note, with a net amount of $84,000, from October 26, 2021. The Note bears 0% interest and is payable April 26, 2022.

Interest expense related to these notes for three months ended October 31, 2021 and October 31, 2020, was $105,100 and $100,457 .

Derivative liabilities

Certain of the Company’s convertible notes are convertible into a variable number of shares of common stock for which there is not a floor to the number of common ~~stock~~ shares the Company might be required to issue. Based on the requirements of ASC 815 Derivatives and Hedging, the conversion feature represented an embedded derivative that is required to be bifurcated and accounted for as a separate derivative liability. The derivative liability is originally recorded at its estimated fair value and is required to be revalued at each conversion event and reporting period. Changes in the derivative liability fair value are reported in operating results each reporting period. The Company uses the Black-Scholes option pricing model for the valuation of its derivative liabilities as further discussed below. There are no material differences between using the Black-Scholes option pricing model for these estimates as compared to the Binomial Lattice model.

~~During~~As of July 31, 2021, the ~~nine~~Company ~~months~~had ~~ended~~existing ~~April~~derivative ~~30,~~liabilities ~~2021~~of $529,171 related to four ~~new~~ convertible notes. ~~with~~During athe ~~variable-rate~~three ~~conversion~~months ~~feature~~ended October ~~were~~31, ~~issued.~~2021, ~~The~~approximately ~~Company~~$118,000 ~~valued~~in ~~the~~principal ~~conversion~~and ~~features~~accrued oninterest of the ~~date~~outstanding ofconvertible ~~issuance~~notes ~~resulting in~~were ~~initial~~converted ~~liabilities~~into ~~totaling $866~~20,~~327~~466,992 shares of common stock. ~~Since~~At each conversion date, the ~~fair~~Company recalculated the value of the derivative ~~was~~liability inassociated ~~excess~~with of the ~~proceeds~~convertible note ~~received,~~recording a ~~full~~gain ~~discount to~~(loss) in connection with the ~~convertible~~change ~~notes~~in ~~payable~~fair ~~and~~market avalue. ~~day~~In ~~one~~addition, ~~loss~~the onpro-rata portion of the derivative ~~liabilities~~liability as compared to the portion of ~~$608,327~~the convertible note converted was ~~recorded~~reclassed ~~during~~to additional paid-in capital. During the ~~nine~~three months ended ~~April~~ 30October 31, 2021., ~~The~~the Company ~~valued~~recorded $151,752 to additional paid-in capital for the ~~conversion~~relief ~~feature~~of the derivative liabilities. The derivative liabilities were revalued using the Black-Scholes option pricing model with the following assumptions: conversion prices ranging from $0.~~0029~~0055 to $0.~~0058~~0062, the closing stock price of the Company's common stock on the dates of valuation ranging from $0.~~007~~ 010 to $0.~~034~~012, an expected dividend yield of 0%, expected ~~volatilities~~volatility ranging from ~~219~~235%~~-279~~ to 285%, risk-free interest ~~rate~~rates ranging from 0.121% to 0.1514%, and expected terms ofranging ~~one~~from ~~year~~0. 046 to 0.5 years.

AsOn October ~~of July~~ 31, ~~2020~~2021, the ~~Company had existing~~ derivative liabilities ofon ~~$205,796 related to two convertible notes. During the nine months ended April 30, 2021, $146,905 in principal and accrued interest of~~ these convertible notes ~~along~~were ~~with~~revalued ~~fees~~at of $16117,~~000 were converted into 70,497,100 shares of common~~969 ~~stock.~~resulting Atin ~~each conversion date, the Company recalculated the value of the derivative liability associated with the convertible note recording~~ a gain ~~(loss) in connection with the change in fair market value. In addition, the pro-rata portion~~ of ~~the derivative~~$259,450 ~~liability~~for ~~as compared to~~ the ~~portion~~three ~~of the convertible note converted was reclassed to additional paid-in capital. During the nine~~ months ended ~~April 30~~October 31, 2021, ~~the~~related ~~Company recorded $822,001~~ to ~~additional~~the ~~paid-~~change in ~~capital~~fair ~~for~~value ~~the relief~~ of the derivative liabilities. The derivative liabilities were revalued using the Black-Scholes option pricing model with the following assumptions: conversion prices ranging from $0.~~0011~~0050 to $0.~~007~~0053, the closing stock price of the Company's common stock on the ~~dates~~date of valuation ~~ranging~~ ~~from~~of $0.~~006 to $0.034~~009, an expected dividend yield of 0%, expected volatility ~~ranging~~of ~~from 215~~235% ~~to 278%~~, risk-free interest ~~rates~~ ~~ranging~~rate ~~from~~of 0.~~12% to 0.~~15%, and an expected ~~terms~~term ranging from 0.0145 to 0.485 years.

On April 30, 2021, the derivative liabilities on these convertible notes were revalued at $551,662 resulting in a loss of $669,038 and $301,530 for the three and nine months ended April 30, 2021, related to the change in fair value of the derivative liabilities, respectively. The derivative liabilities were revalued using the Black-Scholes option pricing model with the following assumptions: conversion prices ranging from $0.0070 to $0.0104, the closing stock price of the Company's common stock on the date of valuation of $0.065, an expected dividend yield of 0%, expected volatility of 286%, risk-free interest rate of 0.13%, and an expected term ranging from 0.20 to 0.72 years.

The Company amortizes the discounts over the term of the convertible promissory notes using the straight-line method which is similar to the effective interest method. During the nine months ended April 30, 2021, the Company amortized $204,556 to interest expense. As of April 30, 2021, discounts of $247,336 remained for which will be amortized through October 2021.

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Cannagistics, Inc., and Subsidiaries

Notes to Financial Statements

April 30, 2021

NOTE 7 – RELATED PARTY TRANSACTIONS

A shareholder of the Company has paid certain expenses of the Company. These amounts are reflected as a loan payable to related party. The shareholder advanced $32,~~065~~076 and $~~19,490~~0 during the ~~nine~~ three months ended ~~April~~October 3031, 2021, and October 31, 2020, respectively. As of ~~April~~October 3031, 2021, and ~~July~~October 31, 2020, there were $~~391~~523,~~159~~854 and $~~388~~386,~~094~~404 due to related parties, and a shareholder, respectively.

The Company has consulting agreements with two of its shareholders to provide management and financial services that commenced on December 1, 2017. For the ~~nine~~three months ended ~~April~~October 3031, 2021, and October 31, 2020, and consulting fees paid were $~~114~~159,~~841~~615 and $~~146~~44,~~334~~484 respectively. The consulting fees are included as part of professional fees on the Company’s consolidated statements of operations.

~~The Company on February 20, 2018, entered into a related party (that being Recommerce Group, Inc. and our former President and current Vice~~F-President of Corporate Finance and a Director, is a principal in Recommerce Group, Inc.) note receivable in the amount of $1,034,000. The Company made an additional advance in the amount of $175,000 that is non-interest bearing. The note is payable and due on demand and bears interest at the rate of 10%. A total of $153,217 has been applied as payments against this Note. Interest expense in the amount of $65,277 and $77,621 for the nine months ended April 30, 2021, and 2020, respectively, has been recorded in the financial statements.17

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The Company on February 20, 2018, entered into a related party (that being Recommerce Group, Inc. and our former President and current Vice-President of Corporate Finance and a Director, is a principal in Recommerce Group, Inc.) note receivable in the amount of $1,034,000. The Company made an additional advance in the amount of $175,000 that is non-interest bearing. The note is payable and due on demand and bears interest at the rate of 10%. A total of $153,217 has been applied as payments against this Note. Interest expense in the amount of $21,759 and $21,759 for the three months ended October 31, 2021 and October 31, 2020, respectively, has been recorded in the financial statements.

NOTE 8 – STOCKHOLDERS’ EQUITY (DEFICIT)

The Company is authorized to issue 500,000,000 shares of its $0.001 par value common stock and 20,000,000 shares of Preferred stock. As of ~~April~~October 3031, 2021, and July 31, ~~2020~~2021, there were ~~183~~219,~~166~~468,~~659~~674 and ~~105~~189,~~099~~561,~~277~~572 shares of common stock outstanding, respectively. There were 10900,000 shares of Series E Preferred stock and 4,400,000 shares of Series DF Preferred stock outstanding as of ~~April~~October 3031, 2021, and July 31, ~~2020~~2021, respectively. The Company had 290,000,000 shares of common stock issuable at October 31, 2021, and July 31, 2021, respectively.

OnDuring ~~November~~the 1,three ~~2017,~~months weended ~~effected~~October a31, ~~one-for-~~2021, ~~four reverse~~the ~~stock~~Company ~~split.~~issued ~~All~~20,466,992 ~~share~~for ~~and~~the ~~per~~conversion ~~share~~of ~~information~~convertible ~~has~~debt ~~been~~and ~~retroactively~~9,440,110 ~~adjusted~~for ~~to reflect the stock split~~services.

Series E Preferred Stock

The Company has 3,600,000 of Series E convertible preferred stock authorized. Each share is non-voting and convertible into 100 shares of common stock. Each share is treated pari passu with common stock, adjusted for conversion, in relation to dividends and liquidation preferences.

The holders of the Series E convertible preferred stock shall have anti-dilution rights during the two-year period after the Series E convertible preferred converted into shares of Common Stock at its then effective conversion rate. The anti-dilution rights shall be pro-rata to the holder's ownership of the Series E convertible preferred stock. The Company agrees to assure that the holders of the Series E convertible preferred stock shall have and maintain at all times, full Ratchet anti-dilution protection rights as to the total number of issued and outstanding shares of common stock and preferred stock of the Company from time to time, at the rate of 36%,calculated on a fully diluted basis.

Series F Preferred Stock

The Company has 4,400,000 of Series E convertible preferred stock authorized. Each share is non-voting and convertible into 100 shares of common stock. Each share is treated pari passu with common stock, adjusted for conversion, in relation to dividends and liquidation preferences.

The holders of the Series F convertible preferred stock shall have anti-dilution rights during the two-year period after the Series F convertible preferred converted into shares of Common Stock at its then effective conversion rate. The anti-dilution rights shall be pro-rata to the holder's ownership of the Series F convertible preferred stock. The Company agrees to assure that the holders of the Series E convertible preferred stock shall have and maintain at all times, full Ratchet anti-dilution protection rights as to the total number of issued and outstanding shares of common stock and preferred stock of the Company from time to time, at the rate of 44%,calculated on a fully diluted basis.

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NOTE 9 – WARRANT

On April 15, 2020, the Company issued a five~~-year~~ year Common Stock Purchase Warrant in connection with a $31,500 convertible promissory note. The warrant is convertible into 437,500 ~~shares~~ shares of the Company’s common stock at $.12 per share.

On April 23, 2020, the Company issued a three~~-year~~ year Common Stock Purchase Warrant in connection with a $75,000 investment in the Company’s common stock. The warrant has a ~~conversion~~ conversion price of $0.15 per share of the Company’s common stock.

NOTE 10 – COMMITMENTS AND CONTINGENCIES

Litigations, Claims and Assessments

The Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business. The Company is currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.

~~F-16~~The Company has been made aware of potential litigation from a creditor of the Company, Sanguine Group, LLC and Garden State Holdings LLC, which are controlled by the same individual. While the Company does not have actual notice of such potential litigation, the Company was made aware of the statement from the Sanguine Group, LLC, in a separate litigation involving Availa Bio, Inc., the now controlling shareholder of the Company, and a party unrelated to the Company.

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~~Cannagistics~~Effective September 1, ~~Inc~~2021, the Company leased office space through Regus at Hauppauge Center, 150 Motor Parkway, Suite 401, Hauppauge, NY 11788. The term is for 6 months at a base rent of $1,200. ~~and~~The ~~Subsidiaries~~space is sufficient for the Company needs.

Notes to Financial Statements

April 30, 2021

NOTE 11 – SUBSEQUENT EVENTS

Management of the Company has evaluated the subsequent events that have occurred through the date of the report and determined that the following subsequent events require disclosure:

On ~~May~~November 624, 2021, the ~~issuer (having been renamed, immediately prior to this Holding~~ Company ~~Reorganization,~~filed ~~from~~a ~~“Cannagistics,~~Form ~~Inc.”~~1-A toOffering ~~“Global~~Statement ~~Transition Corporation”)~~with ~~completed a corporate reorganization (~~the ~~“Holding~~Securities ~~Company~~and ~~Reorganization”)~~Exchange ~~pursuant~~Commission tofor ~~which Global Transition Corporation, as previously constituted (~~the ~~“Predecessor”)~~offering ~~merged with a company which became a direct, wholly-owned subsidiary~~ of aup ~~newly formed Delaware Corporation, Cannagistics, Inc. (in this capacity referred~~ to ~~as the “Holding Company”)~~$5, ~~which became the successor issuer. In other words~~000,000 ~~the~~worth Holding Company is now the public entity, albeit with the same name as the original issue or the Predecessor. The Holding Company Reorganization was effected by a merger conducted pursuant to Delaware General Corporation Law (the “DGCL”), which provides for the formation of acommon ~~holding~~stock ~~company~~based ~~without~~on a ~~vote~~preliminary ofrage ~~the stockholders~~ of ~~the constituent corporations (such constituent~~$0.05 ~~corporations being the Predecessor, as renamed~~ to ~~Global~~$0.20 ~~Transition~~per ~~Corporation and the newly formed Cannagistics, Inc~~share.).

InOn ~~accordance~~December ~~with the DGCL~~6, ~~Global3pl~~2021, ~~Inc. (“Merger~~Rob ~~Sub”),~~Gietl ~~another~~resigned ~~newly~~as ~~formed~~President ~~Delaware Corporation~~ and, ~~prior~~CEO ~~to the Holding Company Reorganization, was an indirect, wholly owned subsidiary of the Holding Company, merged with~~ and ~~into the Predecessor, with Merger Sub surviving the merger as a direct,~~Director ~~wholly owned subsidiary~~ of the ~~Holding~~ Company ~~(the “Merger”)~~. ~~The~~Jim ~~Merger~~Morrison was ~~completed~~appointed ~~pursuant~~as toPresident ~~the terms of an Agreement~~ and ~~Plan~~CEO of ~~Merger among~~ the ~~Predecessor, the Holding~~ Company ~~and~~in ~~Merger~~his ~~Sub, dated May 6, 2021 (the “Merger Agreement”)~~place.

As of the effective time of the Merger and in connection with the Holding Company Reorganization, all outstanding shares of common stock and preferred stock of the Predecessor were automatically converted into identical shares of common stock or preferred stock, as applicable, of the Holding Company on a oneF-for-one basis, and the Predecessor’s existing stockholders and other holders of equity instruments, became stockholders and holders of equity instruments, as applicable, of the Holding Company in the same amounts and percentages as they were in the Predecessor immediately prior to the Holding Company Reorganization.19

The executive officers and board of directors of the Holding Company are the same as those of the Predecessor in effect immediately prior to the Holding Company Reorganization.

On May 21, 2021, the Company incorporated Global3pl Logistical Technologies, Inc., (a Delaware corporation) On May 21, 2021. It is a wholly owned subsidiary of Cannagistics, Inc.

The previously executed Letter of Intent with Recommerce Group, Inc. has expired, although the Company has continued discussions with Recommerce Group, Inc. about a potential business combination.

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

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.” These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

~~Overview~~ Cannagistics, Inc. (Formerly FIGO Ventures, Inc., formerly Precious Investments, Inc.) (‘The Company’) was incorporated under the laws of the State of Nevada on May 26, 2004. The Company was an Exploration Stage Company with the principal business being the acquisition and exploration of resource properties.

WeThe ~~plan~~Company tohad ~~become~~allowed aits ~~complete~~charter ~~end-to-end~~with ~~supply~~the ~~chain management company~~state ~~focused~~of onNevada ~~serving~~to ~~the~~be ~~pharmaceutical,~~revoked ~~OTC~~by ~~medical,~~the ~~nutraceutical,~~Secretary ~~cosmetic,~~of ~~and~~State ~~CBD/Hemp-related (and other) product industries as a gateway~~ for ~~products~~failure to ~~penetrate~~file the ~~USA,~~required ~~and~~annual ~~potentially~~lists ~~in the E.U., Colombia~~ and ~~Canada~~pay ~~marketplace~~the ~~through~~required ~~GMP~~annual ~~certified manufacturing facilities possibly in Baton Rouge, Malta, Bogotá, and Toronto~~fees. ~~Currently, we have no GMP certified manufacturing facilities in~~Its ~~these~~last ~~areas~~known orofficers ~~anywhere~~ and dodirectors ~~not~~reflected ~~have any affiliation with any facilities. We are developing plans to source production, or to joint venture with existing facilities, or potentially to acquire or build GMP Certified facilities~~ in those areas. These developing plans would include seeking out already existing facilities currently in operation, either already GMP Certified or willing to become GMP Certified, as well as preliminary discussions with potential joint venture partners. We are also in the ~~preliminary~~records ~~planning~~of ~~stages regarding~~ the ~~possibility~~ Secretary of ~~obtaining~~State ~~the~~were ~~license~~unresponsive toor ~~operate~~stated inthey ~~Malta.~~were ~~While~~ no ~~specific~~longer ~~plans~~involved with ~~have been finalized,~~ the Company ~~is continuing to pursue all options~~. ~~Combining~~The ~~the~~purported ~~production~~replacement ~~through~~officers ~~these facilities~~ and ~~compliance~~directors ~~services~~were ~~with our proprietary information and transactional SAAS (Software as a Service) platform (being developed by Corengine for our Global3PL, Inc~~unresponsive. subsidiary), Cannagistics, Inc. plans to offers its clients the ability to manage, track and oversee their inventory, from raw materials to production to shipping to delivery, and review in real-time the shipping of their products in the supply chain from factory to customer in our logistics management platform.

~~Our~~On ~~plan~~September to14, ~~enter~~2012, ~~the~~NPNC ~~industry~~Management, asLLC filed a ~~supply~~petition ~~chain management company is~~ in the ~~development~~Eighth ~~stages.~~Judicial WeDistrict ~~own~~Court noin ~~properties,~~Clark ~~plants or equipment~~County, weNevada ~~have no full or part time employees, other than our President~~ and ~~Vice~~was ~~President,~~appointed ~~and~~custodian weof ~~have~~the noCompany ~~revenues under our planned logistics operations. There is substantial doubt about our ability to continue as a going concern. Our ability to implement our plan is dependent~~ on ~~the~~January ~~finished development of our SAAS software platform~~15, ~~and the ability to raise the necessary funding and acceptance by customers~~2012.

~~With~~On ~~the~~October ~~execution~~24, of2012, the ~~Letter~~interim ofboard ~~Intent~~authorized the ~~with~~sale ~~Recommerce~~of ~~Group~~55, ~~Inc.~~000, on000 ~~January 26~~(2, ~~2021~~200,000 wesplit ~~plan~~adjusted) toshares ~~enter~~of ~~into~~common ~~the~~stock ~~reverse~~for ~~logistics~~$6,000 ~~reverse~~to ~~supply~~NPNC ~~chain~~Management, ~~industry. Reverse Logistics or reverse supply chain logistics is essentially handling customer returns~~LLC, ~~from~~in ~~either damaged items previously delivered or purchased or items not wanted that have been purchased at~~ a ~~location~~private ~~and/or~~placement ~~delivered to the customer. This can entail returns made directly to a “brick and mortar”~~transaction ~~location~~exempt ~~or directly~~ from athe ~~consumer.~~Securities WeAct ~~have entered a binding Letter~~ of ~~Intent for this potential acquisition. However~~1933, ~~the closing is based upon completion of proper due diligence by the parties and agreement on definitive documents~~ as ~~well as the necessary funding being in place. The closing is to be targeted to take place on or about March 31~~amended, ~~2021.~~pursuant ~~Pursuant~~ to ~~the~~section ~~Letter~~4(2) ofthereof ~~Intent,~~and ~~both parties may extend~~ the ~~date~~rules ofand ~~closing~~regulations ~~upon~~promulgated ~~mutual~~there ~~agreement~~under.

~~With~~On ~~the~~March ~~current situation related to the COVID-19 pandemic~~1, ~~our developmental plans to seek out existing GMP facilities have been delayed by the restrictions on travel domestically~~2017, ~~and internationally and~~ the ~~difficulties in~~Company ~~raising~~then ~~the~~entered ~~necessary~~into ~~capital. Regardless, we have been able to conduct some due diligence in our search and we plan to conduct site~~a ~~visits~~joint ~~and~~venture ~~other~~agreement ~~due~~with ~~diligence~~Eddeb ~~once~~Management ~~domestic~~(“Eddeb”). ~~travel~~The ispurpose ~~more~~of ~~practical~~the ~~and~~joint ~~international~~venture ~~travel~~ is ~~less~~to ~~restrictive.~~build ~~The~~a ~~Company~~fund ~~believes as~~for the ~~ability~~purpose of totrading ~~travel~~in ~~once~~precious ~~again becomes possible~~gems, ~~specifically including internationally travel~~notably, ~~that~~colored ~~our above plans can be better implemented in locating suitable facilities~~diamonds.

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ToOn ~~serve~~July ~~the~~23, ~~EU market~~2018, wethe ~~would~~Company ~~like~~amended tothe ~~have~~name ~~a GMP facility in Malta that~~of ~~would~~its ~~focus~~subsidiary, onKRG ~~cosmetics~~Logistics, ~~pharmaceutical~~Inc., ~~nutraceutical or “bioceutical” and medicinal products for our clients, and our plan would be~~ to ~~provide end to end tracking~~Global3pl, ~~manufacturing and testing~~Inc. ~~Our~~(an ~~plan~~Ontario ~~is to have this Malta lab cater to customers in the EU~~corporation). ~~We also plan to potentially have other facilities that will cover our target customers in the US, Canada and Columbia, potentially located in Baton Rouge, Toronto and Bogotá, respectively.~~

~~Initially,~~On ~~the~~September ~~products~~4, we2018, ~~intend~~the toCompany ~~focus~~incorporated ~~on are skin care and anti-aging~~Cannagistics, ~~creams~~Inc., ~~and~~in ~~other over~~ the ~~counter~~province ~~products~~of Ontario, ~~and~~Canada. ~~subsequently~~This ~~would~~is beintended ~~seeking~~ to ~~add~~be ~~products~~a ~~with~~possible ~~potentially~~new ~~hemp-based~~line ~~application. Our~~of ~~services~~business ~~would~~for ~~include~~ the ~~production,~~Company ~~under~~but ~~their~~is ~~requirements,~~dormant ~~distribution~~at ~~and handling of orders as a third-party~~this time.

WeOn ~~have~~April ~~discussed~~17, ~~the~~2019, ~~plan~~we tofiled ~~create~~Articles of Merger with the ~~Malta~~Secretary ~~facility~~of ~~and~~State ~~other~~of ~~facilities~~ Nevada in order to effectuate a merger with ~~potential~~our ~~customers~~wholly ~~for~~owned ~~products~~subsidiary, ~~manufactured~~Cannagistics, atInc. ~~these~~Shareholder ~~facilities~~approval was not required under Section 92A.180 Weof ~~have~~the ~~received~~Nevada ~~positive~~Revised ~~feedback~~Statutes. onAs part of the ~~initiative~~merger, ~~and~~our ~~commitments from~~board atof ~~least~~directors ~~two~~authorized ~~clients~~a change in our name to ~~which~~“Cannagistics, weInc.” ~~plan~~and our Articles of Incorporation have been amended to ~~sell~~reflect ~~products~~this name change.

~~Our~~On ~~principal~~September ~~executive~~26, ~~offices~~2019, ~~are~~the ~~located~~Board atof ~~2480~~Directors ~~Stanfield~~approved the ~~Road,~~registered ~~Unit B~~spinout of its Global3pl, ~~Mississauga~~Inc., ~~Ontario~~(a ~~L4Y~~New ~~1S2,~~York ~~and~~corporation) ~~our~~(“Global3pl”) ~~Executive~~subsidiary. ~~Office~~Global3pl is ~~located~~to atbe ~~1200~~a ~~Veterans~~logistics technology ~~Highway~~provider, ~~Suite~~along ~~310,~~with ~~Hauppauge,~~the NYAmerican ~~11788.~~Freight ~~Our~~Xchange ~~telephone number~~and isUrbanX ~~631-676-7230~~Platforms that have been under development by the Company.

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The executive officers and board of directors of the Holding Company are the same as those of the Predecessor in effect immediately prior to the Holding Company Reorganization.

The previously executed Letter of Intent with Recommerce Group, Inc. has expired, although the Company has continued discussions with Recommerce Group, Inc. about a potential business combination.

On July 1, 2021, we entered into a Reorganization and Stock Purchase Agreement with Availa Bio, Inc. and Cannaworx Holdings, Inc. (now known as “The Integrity Wellness Group, Inc.” hereinafter “Integrity Wellness”) pursuant to which we acquired Integrity Wellness in exchange for 4,400,000 shares of the Company’s Series F Convertible Preferred Stock. We also changed our state of incorporation to Delaware. A significant majority of our operations are now operated through Integrity Wellness which because of the transaction became a wholly owned subsidiary of the Company. We expect to change our name to The Integrity Wellness Group, Inc. subject to regulatory compliance.

Following our acquisition of Integrity Wellness, we shifted to our current business plan and focus which is the development, marketing and sale of OTC, pharmaceutical, nutraceutical, cosmetic and health and wellness products with a focus on products infused with phytocannabinnoid, which we refer to as “CBD.” We now have a portfolio of products designed for the treatment of ailments and symptoms and/or general improvement of health and wellbeing by topical or oral administration. These product offerings, which are described more fully below, are designed to provide a variety of treatments, benefits and uses including pain relief, anti-aging, hygiene, energy, and immune system and biochemical support. We also have products designed for veterinary and agricultural uses. We have six patents and 15 patent applications pending for our products, as well as a number of trademarks. Our mission is to alleviate suffering and adverse consequences caused by certain health and biological conditions and enhance users’ quality of life through the use of inventions and science including through the use of CBD.

On September 15, 2021, the Company filed a Def14C Information Statement. The Def14C Information Statement set out the plan of the Company to amend its name to The Integrity Wellness Group, Inc., or some other similar name, and to effectuate a reverse stock split of its common stock of one (1) new share of common stock for each forty (40) old shares of common stock. The Company is in the process of filing with FINRA to make these changes effective.

Our Products

Through Integrity Wellness we currently have 4 developed products, the majority of which we offer at retail prices ranging from approximately $30 to $60 (excluding our veterinary and agricultural product offerings). [Our current developed products are either backlogged, in the process of being produced or are ready for production.] We have received approval from the U.S. Food and Drug Administration (the “FDA”) for 4 of our products’ claims, and we have FDA applications in process for 1 product claims, as indicated below. We have patents issued for six of our products, and 15 patent applications pending, as indicated below. However, we presently lack the capital to produce sufficient inventory and, accordingly, will be reliant upon raising additional funds. If we are unable to raise sufficient funds, the production and distribution of these products may be delayed or discontinued. Further, some of the patent rights and licenses for the below products are subject to uncertainty due to potential procedural and documentation issues in connection with the July 2021 Integrity Wellness acquisition. See the risk titled “If we cannot obtain or protect intellectual property rights related to our products, including due to uncertainties surrounding our acquisition of Integrity Wellness and its purported product portfolio, we may not be able to compete effectively in our markets” for more information. The following is a brief description our current products portfolio:

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Products with Issued Patents

Canagel ®,- (Anhydrous Hydrogel Composition and delivery system)

Patented Full Spectrum Phytocannabinoid delivery with FDA approved pain claim. The one and only FDA-approved pain claim in the market for an oral CBD product.

We have Exclusive World-wide access to Patent No. US 10,143,755

Patent Issued: December 4, 2018

Patent Expires: December 8, 2037

Comments: Please note this patent is owned by Acupac Packaging Inc., however an exclusive worldwide license agreement has been granted to SkinScience labs, Inc.

Silverpro ®, - (FDA Cleared)

Patented Compression Fabric in the marketplace with FDA pain clearance

Patent No. US 9,878,175 (European Patent has been allowed)

Patent Issued: January 30, 2018

Patent Expires: June 2036

Thin Film Toothpaste Strip

Product Name: KidzStrips ®,

Patented Fluoride doses-controlled children’s toothpaste strip

(2 Patents issued) Patent No. US 9,656,102

Patent Issued: May 23, 2017

Patent Expires: December 21, 2033

Patent No. US 10,105,296

Patent Issued: October 23, 2018

Patent Expires: December 31, 2034

ImmuniZin ^TM (Immune Booster)

Some ImmunaZin Ingredients and Expectations

Irreversibly-inactivated pepsinogen fragments for modulating immune function (Immune Booster- FDA Cleared)

Patent No. US 8,309,072

Patent Issued: November 13, 2012

Patent Expires: June 18, 2029

Novel Fertilizer

Product Name: HydroSoil ®

Patent No. US 9,981,886

Patent Issued: May 29, 2018

Patent Expires: August 12, 2036

Pending Patent Applications

Cannabinoid, Menthol and Caffeine Dissolvable Film Composition, Devices and Methods

US Application No. 16/558,872; International Application PCT/US2019/049309

Cannabinoid and Menthol Gum and Lozenge Compositions and Methods

US Application No. 16/555,022 (US Application No. 62/869,121 is a provisional US application for this US application); International Application PCT/US2019/048740

Cannabinoid and Anesthetic Gum and Lozenge Compositions and Methods

US Application No. 16/554,930 (US Application No. 62/869,118 is a provisional US application for this US application); International Application PCT/US2019/048728

Cannabinoid and Anesthetic Compositions and Methods

US Application No. 16/419,274; International Application PCT/US2019/048690

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C-Biscuit ^TM

Hemp rich suppository for racehorse industry for rapid recovery from injury Veterinary Cannabinoid, Menthol and Anesthetic Compositions and Methods

Application No. 16/555,241; International Application PCT/US2019/048789

Veterinary Cannabinoid and Menthol Compositions and Methods

Application No. 16/419,392; International Application PCT/US2019/048695

Cannabinoid and Menthol Gel Compositions, Patches and Methods

US Application No. 16/558,780; International Application PCT/US2019/049294

Cannabinoid and Menthol Compositions and Methods

US Application No. 16/419,336; International Application PCT/US2019/048691

Thin Film Toothpaste Strip, European Application

Product Name: KidzStrips ®

Application No. 14876319.6

Thin Film Toothpaste Strip, Eurasian Application

Product Name: KidzStrips ®

Application No. 201600502/28.

U.S. Application No. 17/412442

Fertilizer

Product Name: HydroSoil ®,

Water retaining Hemp enhanced fertilizer, water plant once every two weeks

U.S. Application No. 15/986,111

Inactivated Pepsin Fragment (IPF) and Full Spectrum Cannabidiol (CBD) Compositions and Methods

U.S. Provisional Patent Application No. 62/859,422

Skin Cream

U.S. Application No. Application 15/233,251

Other Products

IcyEase

U.S. Application No. 16/807229

Adhesive Ice Pack for muscle/joint pain to cool surface and address pain.

Patent-pending, FDA pain claim in progress

Slim-D

Appetite-suppressant oral strip with 50 mg Hoodia & 10 mg Full Spectrum Phytocannabinoid

Energy Lighting Strips

High caffeine fast dissolving oral energy strip with Matcha Green Tea and Hemp/Full Spectrum Phytocannabinoid

Micro Voltage Trans Derm C

for pain with unique and superior absorbing features due to wearer‘s movement generated Micro Voltage

CBD 600

Hemp Rich oral tincture with FDA cleared legal pain claim. One and only with FDA clearance.

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Research & Development and Product Manufacturing

Our products are produced using third party manufacturers who are responsible for sourcing the raw materials and ingredients and adhering to applicable specifications and regulatory requirements including the FDA’s good manufacturing practices (GMP) certification. We also use some of these same third parties for research and development and testing functions as and when the need arises. We rely on a limited number of these manufacturers to develop and produce our product offerings.

The availability and production capability of our manufacturers depends on the raw material supplies and sources, as well as other projects on which our manufacturers may be engaged at a given time. Because of these contingencies, the lead times on production and delivery schedules can fluctuate, which may cause us to fail to meet internal or contractual deadlines. As we grow, we hope to be able to accurately forecast and manage these processes to try and ensure we have adequate inventory on hand to meet demand. A primary raw material utilized in the production process for our products is CBD isolate which can only be produced in certain states. While we believe there are sufficient sources for CBD isolate and other raw materials necessary to meet our production needs, shortages and delays can occur, which could harm us by prolonging or suspending expected deliveries or increasing production costs.

COVID-19

The COVID-19 pandemic has resulted in a global slowdown of economic activity which is likely to continue to reduce the future demand for a broad variety of goods and services, while also disrupting sales channels, marketing activities and supply chains for an unknown period of time until the virus is fully contained. Supply chain disruptions have been increasingly common since the pandemic began, and such disruptions may affect us in the future.

Sales and Distribution

Our products will be sold both online on our website, and through wholesale and retail establishments including both brick and mortar stores and ecommerce platforms. We also intend to sell our products in part using a direct selling model in which we contract with independent contractors who are compensated by commissions from their sales of our products. We intend to dedicate substantial capital, including a portion of the proceeds from this offering, to build a sales force consisting of a combination of employees of the Company and independent contractors.

Planned Operations and Products Under Development

New and Planned Products

In addition to our developed products, we are also in the process of evaluating and developing new products. Our ability to develop and launch these products within the timeframes intended or at all depends in large part on the Company receiving sufficient proceeds. If we are unable to raise at least $ 2,500,000 the development, production and distribution of these products may be delayed or discontinued. Even with the required capital, planned or future projects may not come to fruition. Below is a brief summary of the projects which are planned and/or under development.

Exosome Product Research and Development

We are in the early stages of developing a new business which will focus on a new line of products using naturally occurring nanosized compounds (approximately 30-150 nanometers in diameter), referred to as “exosomes,” which are derived from stem cells and cause growth and regeneration by acting as biologic messengers at the cellular level of the human body. Exosomes work by delivering chemical signals to the cells they permeate, instigating the production of regenerative proteins and other compounds while also inhibiting destructive inflammatory cytokines. We intend to explore the potential use of exosome science to develop products designed to serve regenerative and health and wellness functions such as hair and skin regeneration. However, we are still in the very early development of this project, and no assurances can be given that we will be able to proceed with our planned exosome product operations as intended or at all. We do not expect to own or acquire intellectual property rights or participate directly in the development and manufacturing efforts for exosome products, and instead intend to license the intellectual property rights of third parties in order to market and sell the finished products.

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SaaS Logistics Platform

Prior to the acquisition of Integrity Wellness, we were in the process of developing a SaaS platform intended to enable users to monitor and manage numerous aspects of the supply chain as they obtain raw materials, develop and produce products, and bring their products to the marketplace. The intended focus of the platform and services was on OTC, pharmaceutical, cosmetic, nutraceutical, hemp/CBD and health and wellness products. The development efforts to date have been conducted primarily by Corengine, Inc., a third-party software development company. However, we have yet to develop and commercialize the platform, which has been delayed in part due to the COVID-19 pandemic. The platform’s intended function is to assist users with the tracking, monitoring and management of their respective manufacturing and distribution processes. The SaaS-based platform will be designed to fully integrate the various components of the supply chain, from obtaining raw materials through product manufacturing and distribution and inventory and shelf-life batch tracking. We had previously announced the spin-off of the business which was subsequently suspended indefinitely due to COVID-19.

Our principal executive offices are located at 150 Motor Parkway, Suite 401, Hauppauge, NY 11787. Our telephone number is 631-787-8455.

Parent Holding Company Reorganization

The executive officers and board of directors of the Holding Company are the same as those of the Predecessor in effect immediately prior to the Holding Company Reorganization.

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Results of Operation for Three ~~and~~months ~~Nine Months~~ Ended ~~April~~October 3031, 2021 and 2020

Revenues

No revenue was generated for the ~~nine~~three months ended ~~April~~October 3031, 2021 and ~~April~~ 30October 31, 2020.

Our cost of revenues was $0 for the ~~nine~~three months ended ~~April~~October 3031, 2021, as as compared with cost of revenue of $0 for the same period ended ~~April~~October 3031, 2020.

Operating Expenses

Total operating expenses ~~decreased~~increased to $~~157~~825,~~028~~907 for the three months ended ~~April~~October 3031, 2021, from $~~1876~~156,~~032~~445 at ~~April~~October 3031, 2020. This ~~decrease~~increase was mainly due mainly to aan ~~decrease~~increase in ~~Professional~~Bad Debt, Consulting and Professional fees.

Operating expenses for the ~~nine~~three months ended ~~April~~October 3031, 2021, consisted of general and administrative expenses of $~~112~~27,~~502~~126, professional fees of $~~220~~187,~~356~~908, rent of $124928,~~382,~~ and consulting fees of $88584,~~125~~979. Our operating expenses for the ~~nine~~three months ended ~~April~~October 3031, 2020, consisted of general and administrative expenses of $~~(25~~37,~~741)~~575, professional fees of $~~271~~82,~~483~~884, rent of $237,~~394~~486, and consulting fees of $~~107~~28,~~947~~500.

Other Income and Expenses

We had interest income of $6527,~~277~~759 for the ~~nine~~three months ended ~~April~~October 3031, 2021, and $6521,~~277~~759 for the ~~nine~~three months ended ~~April~~October 3031, 2020. We had interest expense of $~~421~~351,~~014~~918 for the ~~nine~~three months ended ~~April 30~~October 31, 2021 as compared to $~~305~~147,~~249~~634 for the ~~nine~~three months ended ~~April~~October 3031, 2020. We had Settlement Fees of $25(69,~~000~~875) for the ~~nine~~three months ended ~~April~~October 3031, 2021, as compared to $~~0.00~~(25,000) for the ~~nine~~three months ended ~~April~~October 3031, 2020. We had a Loss on Derivative Liabilities of $33130,~~589~~909 for the ~~nine~~three months ended ~~April~~October 3031, 2021, as compared to $~~0.00~~(936,075) for the ~~April~~October 3031 months ended ~~April~~October 3031, 2020. We had a Change in fair value of derivative labilities of $~~942~~128,~~946~~541 for the ~~nine~~three months ended ~~April~~October 3031, 2021, as compared to $(42,782)0.0 for ~~nine~~three months ended ~~April~~October 3031, 2020.

Loss from Discontinued Operations

Net loss from discontinued operations for the nine months ended April 30, 2021, was $0.00 compared $173,377 for the nine months ended April 30, 2020.

Net Loss

Net loss for the ~~nine~~three months ended ~~April~~October 3031, 2021 was $1996,~~723,459~~491 compared to net loss of $~~790~~1,~~432~~286,177 for the ~~nine~~three months ended ~~April~~October 3031, 2020.

Liquidity and Capital Resources

As of ~~April~~October 3031, 2021, we had total current assets of $3367,~~177~~158 and total current liabilities of $46,~~381~~033,~~614~~316 as of ~~April~~October 31, 2021. We had a negative working capital of $45,~~348~~966,~~437~~158 as of ~~April~~October 3031, 2021.

We intend to fund operations through sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

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Off Balance Sheet Arrangements

As of ~~April~~October 3031, 2021, there were no off-balance sheet arrangements.

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Critical Accounting Policies

In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

Our accounting policies are discussed in detail in the footnotes to our financial statements included in our Annual Report on Form 10-K for the year ended July 31, 2020, however we consider our critical accounting policies to be those related to inventory, fair value of financial instruments, derivative financial instruments and long-lived assets

Going Concern

As of ~~April~~October 3031, 2021, we had an accumulated deficit of $1431,~~945~~538,~~297~~682. Our ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and our ability to achieve and maintain profitable operations. While we are expanding our best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about our ability to continue as a going concern.

Recently Issued Accounting Pronouncements

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operation, financial position or cash flow

Item 3. Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We conducted an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, as of January31, 2018, to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities Exchange Commission’s rules and forms, including to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of ~~April~~October 3031, 2021, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses identified and described below.

Our principal executive officers do not expect that our disclosure controls or internal controls will prevent all error and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives and our principal executive officers have determined that our disclosure controls and procedures are effective at doing so, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.12

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Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Management identified the following three material weaknesses that have caused management to conclude that, as of ~~April~~October 3031, 2021, our disclosure controls and procedures, and our internal control ~~over~~ over financial reporting, were not effective at the reasonable assurance level:

1. We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act as of the period ending January31, 2018. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

2. We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

3. Effective controls over the control environment were not maintained. Specifically, a formally adopted written code of business conduct and ethics that governs our employees, officers, and directors was not in place. Additionally, management has not developed and effectively communicated to employees its accounting policies and procedures. This has resulted in inconsistent practices. Further, our Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

To address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented. Accordingly, we believe that the financial statements included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented.

To remediate the material weakness in our documentation, evaluation and testing of internal controls we plan to engage a third-party firm to assist us in remedying this material weakness once resources become available.

We intend to remedy our material weakness with regard to insufficient segregation of duties by hiring additional employees in order to segregate duties in a manner that establishes effective internal controls once resources become available.

Changes in Internal Control over Financial Reporting

No change in our system of internal control over financial reporting occurred during the period covered by this report, the period ended ~~April~~October 3031, 2021, that has materially affected, or is reasonably likely to ~~materially~~ materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Our wholly owned subsidiary, ~~Global~~against ~~Transition~~Cannagistics, ~~Corporation~~Inc. (aformerly ~~Delaware~~Precious ~~corporation~~Investments, Inc.), ~~formerly~~a ~~known~~Nevada ascorporation, ~~Cannagistics~~now called Global3pl, Inc., (a ~~Nevada~~Delaware corporation, ~~and~~which ~~formerly~~is ~~the~~a ~~public~~now ~~entity~~a ~~and~~subsidiary ~~formerly~~of the ~~parent company)~~Company, is a party to a case titled William Prusin v. Precious Investments Inc., and Kashif Khan. The litigation was commenced in the Ontario Superior Court of Justice (Commercial List) on July 20, 2016. The litigation stems from a diamond purchase agreement entered into on April 1, 2016, between Dr. William Prusin and Precious Investments Inc. By virtue of the terms of the agreement, Precious Investments purchased Dr. Prusin’s diamond portfolio, which was valued at $3.8 million (CDN) for the purposes of the agreement. In exchange for the diamond portfolio, Dr. Prusin was provided with 1,324,413 common shares of Precious Investments.

In the Statement of Claim, the plaintiff is alleging a breach of the Ontario Securities Act and claims that documents provided to him contain untrue statements of material fact or omissions. The plaintiff has also alleged that Precious Investment and Mr. Khan distributed securities in Ontario without issuing a prospectus and obtaining the required prospectus exemption or a registration exemption. In the alternative, the plaintiff has alleged that Mr. Khan made fraudulent misrepresentations which induced Dr. Prusin to enter into the diamond purchase agreement. The fraudulent misrepresentation allegation involves the future value of Cannagistics, Inc. (formerly Precious Investments, Inc.), a Nevada corporation, now called Global3pl, Inc., a Delaware corporation, which is a now a subsidiary of the Company shares, the timing by which Dr. Prusin had to sign the diamond purchase agreement, the involvement of Dundee Capital Markets, Mr. Khan’s investment in Precious Investments, and the management team at Precious Investments. Given these allegations, the plaintiff claims that he is entitled to obtain an order rescinding the diamond purchase agreement.

The Company and Mr. Khan deny all of the plaintiff’s allegations. The Company and Mr. Khan deny that any documents provided to Dr. Prusin constitute an “offering memorandum”, or that any prospectus was required under the Ontario Securities Act since the transaction falls within the exemption set out in National Instrument 45-106. In addition, the defendants deny that any fraudulent misrepresentation was made to Dr. Prusin. The defendants have filed a counter-claim against Dr. Prusin, alleging a breach of the diamond purchase agreement.

~~The~~As ~~action~~a isresult ~~currently~~of ~~dormant,~~the ~~although~~actions ~~the~~taken ~~plaintiff~~pursuant ~~has~~to ~~retained~~the ~~new~~Reorganization under Section ~~counsel.~~251(g) ~~Current~~of ~~local~~the ~~Counsel~~Delaware ~~for~~Corporation ~~the~~Law, ~~Company~~as ~~believes~~described ~~that~~in itthe ~~will~~Current beReport ~~ultimately~~on ~~successful~~Form in8-K ~~defending~~filed with the ~~action.~~Securities ~~There~~and ~~has~~Exchange ~~been~~Commission on May 19, 2021, the Company believes that there would be no ~~action~~material effect on ~~this~~the ~~matter~~Company infrom ~~over~~this ~~two years~~litigation.

II.

KRG Logistics, Inc., now known as Global3pl, Inc., (an Ontario corporation), a now discontinued operational subsidiary of Global Transition Corporation (a Delaware corporation), formerly known as Cannagistics, Inc., (a Nevada corporation, and formerly the public entity and formerly the parent company), was named as the defendant in an action in the Ontario Superior Court of Justice by Ron Alvares, one of the original shareholders of KRG Logistics, Inc., when it was purchased by the Company in 2017. The action is for breach of contract for monies due as a result of the Purchase Agreement and for an amount due from a shareholder loan claimed by Mr. Alvares to KRG Logistics on September 30, 2014. The Company intended to defend against the breach of contract claim as the amount claimed to be due is incorrect, based on payments already made. It intended to also file counterclaims based on intentional interference of contracts by Mr. Alvares and his son for stealing clients of the Company and industrial sabotage of the Company’s software systems. With respect to the claim of an outstanding shareholder loan it is the position of the Company that said shareholder loan was never disclosed to the Company at the time of the purchase and based on information available, any such shareholder loan was paid off with the down payment provided by the Company for the purchase of KRG Logistics, Inc.

Procedurally the plaintiff has named the wrong parties and Counsel in Ontario is waiting for an amended complaint to file an answer and counterclaims. There has been no action on this matter in over a year. In the interim, the subsidiary of the Company has ceased operations. As a result, there would be no material effect on the Company.

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III.

On February 4, 2020, Jeffrey Gates commenced an action in the Supreme Court of the State of New York, County of Suffolk against Global Transition Corporation (a Delaware corporation), at the time of commencement of the action, known as Cannagistics, Inc., (a Nevada corporation, and formerly the public entity and formerly the parent company) and Mr. Zimbler for the non-payment of a Promissory Note, of which the balance of $135,000, plus interest. The Company has retained Counsel to appear and defend the action.

~~Due~~In toFebruary ~~current~~2021, ~~conditions~~the ~~related~~Supreme toCourt ~~COVID-19,~~of the State of New York, ~~State~~County of ~~Supreme~~Suffolk entered an order granting summary judgment to Jeffrey Gates, the plaintiff, against Cannagistics, Inc. (formerly Precious Investments, ~~Court~~Inc.), ~~has~~a ~~administratively~~Nevada ~~adjourned~~corporation, ~~substantially~~now called Global3pl, Inc., a Delaware corporation, which is a subsidiary of the Company, and James Zimbler, our Vice President of Operations and former director, against the defendants, for a total of $151,712. As a result of our corporate reorganization under Section 251(g) of the Delaware Corporation Law, completed in May 2021, such that a newly formed corporation became the public company and the predecessor issuer, with all ~~matters~~its ~~indefinitely~~assets and liabilities became the subsidiary, the obligation for this claim is now in said subsidiary of the current holding company. Based on the reorganization, and while relying on advice of counsel, the parent Company does not believe it is liable for this judgment. In the event the plaintiff seeks to hold the newly formed parent holding company responsible, a court may conclude that we are liable, notwithstanding our corporate restructuring in Delaware.

As a result of the actions taken pursuant to the Reorganization under Section 251(g) of the Delaware Corporation Law, as described in the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 19, 2021, the Company ~~has~~believes ~~determined~~ that there would be no material effect on the Company from this litigation. However, if we are found liable for the judgment, even though Delaware Law expressly provides otherwise, we would be forced to pay such amount in available cash, if any, and to satisfy the balance by selling our assets which were only $45,007 as of July 31, 2021. Therefore, such a development would have a material adverse effect on our business and could force us to cease operations, in which case your entire investment could become worthless.

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

The information set forth below relates to our issuances of securities without registration under the Securities Act of 1933 during the reporting period which were not previously included in a Quarterly Report on Form 10-Q.

On April 1, 2021, the Company issued 1,242,759 shares of its common stock at $0.0290 for the conversion of notes payable.

On April 13, 2021, the Company issued 1,673,684 shares of its common stock at $0.0209 for the conversion of notes payable.

On April 20, 2021, the Company issued 2,154,011 shares of its common stock at $0.0187 for the conversion of notes payable.

Item 3. Defaults upon Senior Securities

None

Item 4. Mine Safety Disclosures

N/A

Item 5. Other Information

None

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Item 6. Exhibits

Exhibit Number	Description of Exhibit
31.1**	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2**	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended ~~April~~October 3031, 2021, formatted in Extensible Business Reporting Language (XBRL).
	**Provided herewith

1016

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SIGNATURES

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

	Cannagistics Inc.
Date:	~~June~~December 2120, 2021
By:	/s/ ~~Rob~~Jim ~~Gietl~~Morrison
	Rob Gietl
	Jim Morrison
Title:	President, Chief Executive Officer, and Director

11Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	Cannagistics, Inc.

By:	Jim Morrison
	Jim Morrison President, Chief Executive Officer, Principal Executive Officer, Chief Financial Officer, Principal Financial Officer, Principal Accounting Officer and Director
	December 20, 2021

By:	/s/ Dr. Babak Ghalili
	Dr. Babak Ghalili
	Director
	December 20, 2021

Filing Compare · Cannagistics Inc.